American Airlines' AAdvantage programme launched in 1981 as a modification of a never-realized concept from 1979 that would have given special fares to frequent customers. In 1979, Texas International Airlines created the first frequent-flyer programme that used mileage tracking to give 'rewards' to its passengers, while in 1980 Western Airlines created its Travel Bank, which ultimately became part of Delta Air Lines' programme upon their merger in 1987. It gave plaques and promotional materials to members. History Īlthough United Airlines had tracked customers as far back as the 1950s, the first modern frequent-flyer programme was created in 1972 by Western Direct Marketing for United. įFPs have become an important part of airlines' economic models, with for example UnitedĪnd Delta both able to earn more than $1 billion in 2015 because of their FFP. Points can be redeemed for air travel, other goods or services, or for increased benefits, such as travel class upgrades, airport lounge access, fast-track access, or priority bookings.įrequent-flyer programs can be seen as a certain type of virtual currency, one with unidirectional flow of money to purchase points, but no exchange back into money. Another way to earn points is spending money at associated retail outlets, car hire companies, hotels, or other associated businesses. For example, in recent years, more points have been earned by using co-branded credit and debit cards than by air travel.

Points earned under FFPs may be based on the class of fare, distance flown on that airline or its partners, or the amount paid. Many airlines have frequent-flyer programmes designed to encourage airline customers enrolled in the programme to accumulate points (also called miles, kilometers, or segments) which may then be redeemed for air travel or other rewards.

For other uses, see Frequent flyer (disambiguation).Ī frequent-flyer programme ( FFP) is a loyalty program offered by an airline.

Loyalty program explained