Friday, June 9, 2023

Creating liberating content

Alphabet Inc. (NASDAQ: GOOGL)...

Shares of Alphabet Inc. (NASDAQ: GOOGL) inches down in pre session on Thursday...

Amazon.com (NASDAQ: AMZN) To...

Shares of Amazon.com, Inc. (NASDAQ: AMZN) inches down in pre trading session on...

U.S Stock Market Holidays...

In 2023, both the New York Stock Exchange (NYSE) and the Nasdaq Stock...

C3.ai Inc. (NYSE: AI)...

Shares of C3.ai Inc. (NYSE: AI) inches down in pre trading session on...
HomeStock InsidersDelta Air (NYSE:...

Delta Air (NYSE: DAL) Soars as Airline Reward Programs Thrive In Post-Epidemic

Shares of Delta Air Lines, Inc. (NYSE: DAL) inches up in pre trading session on Tuesday as during the epidemic, U.S. airlines depended on loyalty programs for revenue, and industry officials and analysts said the programs’ revenues should stay up even if the economy enters a recession.

The programs, which were introduced more than 40 years ago to foster airline brand loyalty, are now a source of income for the airlines through the selling of miles to third-party partners, mostly banks that issue credit cards and award the miles to their own clients. Customers earn more miles and partners pay airlines more when they spend more money.

According to Evert de Boer, general partner at consultancy company On Point Loyalty, non-flight activities now make up more than half of all miles earned in significant loyalty programs, making airlines more robust to cyclical fluctuations in the economy.

According to research from consultant IdeaWorksCompany, the main five U.S. airlines, Delta Air Lines, American Airlines, United Airlines, Southwest Airlines, and Alaska Airlines, saw a sharp increase in the income earned by loyalty programs from roughly 12% in 2019 to 16% in 2021.

While fewer people travelling during the epidemic, airline reward credit cards were still used, said to Chris Buckner, vice president of JetBlue. If the demand for travel is reduced by a weakening economy, he and other CEOs anticipate that tendency to continue.

According to Jonathan Clarkson, vice president of Southwest Airlines, “Credit card spending isn’t going away.”

According to Reuters calculations, Delta made $5.7 billion in cash sales from American Express and other partners last year, which is equivalent to 14% of passenger revenue in 2022.

Similar to Citi and Barclays, American Airline earned $4.5 billion in cash from its partners, which represents 10% of passenger revenue.

Carriers are seeking new alliances in an effort to increase revenue from these initiatives.

United has collaborated with organizations including SimpliSafe, a seller of home security systems, and Norton, a maker of antivirus software. Alaska is giving clients 50,000 miles for obtaining mortgage loans for homes. JetBlue has partnered with baggage providers.

Among others, collaborations between Delta and the supermarket delivery service Instacart exist.

Moreover, loyalty programs for airlines are quite successful.

The return on invested capital from these projects for American, United, and Delta is more than 60%, according to a research by Frankie O’Connell, a professor of air transport management at the University of Surrey in UK. This is far greater than the 5% return on their whole company.

O’Connell described it as a “goldmine of recurring earnings for little or no work.”

Alphabet Inc. (NASDAQ: GOOGL) In Talks to Reduce European IT Jobs After ‘Disastrous’ Layoffs

Shares of Alphabet Inc. (NASDAQ: GOOGL) inches down in pre session on Thursday after big American IT businesses are suddenly discovering how hard it...

Amazon.com (NASDAQ: AMZN) To Face Tough U.K. Antitrust Review on Roomba Acquisition

Shares of Amazon.com, Inc. (NASDAQ: AMZN) inches down in pre trading session on Thursday as the British antitrust officials have begun looking into Amazon's...

U.S Stock Market Holidays 2023: 10 Official Holidays, Plus Three Early Closings

In 2023, both the New York Stock Exchange (NYSE) and the Nasdaq Stock Market will be closed for ten holidays. The following holiday that...

Continue reading

U.S Stock Market Holidays 2023: 10 Official Holidays, Plus Three Early Closings

In 2023, both the New York Stock Exchange (NYSE) and the Nasdaq Stock Market will be closed for ten holidays. The following holiday that the exchanges will be closed is Good Friday, which this year comes on April 7. Here...

Ford Motor Co (NYSE: F) Debuts New Electric Courier Van For The European Market

Ford Motor Co (NYSE: F) plummeted over around 17% in previous trading session on in order to compete with other electric van companies like Arrival SA and win over commercial clients in Europe, the company presented a new electric...

Dow Jones Up as ISM, UFC Reports; Tesla (TSLA) Shares Sink, (NYSE: WWE), C3.ai (NYSE: AI)

Prior to the release of two manufacturing indexes on Monday morning, the Dow Jones Industrial Average increased. As a result of the firm reporting a record number of car deliveries in the first quarter but still missing projections, Tesla...

Enjoy exclusive access to all of our content

Get an online subscription and you can unlock any article you come across.