American Airlines created the first major airline loyalty program in 1981 as a way to compete for customers post-deregulation. But today these programs are the industry norm, having transformed into billions of dollar businesses with legs outside the aviation industry. The AAdvantage loyalty program has even become a business in its own right...

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American Airlines created the first major airline loyalty program in 1981 as a way to compete for customers post-deregulation. But today these programs are the industry norm, having transformed into billions of dollar businesses with legs outside the aviation industry. The AAdvantage loyalty program has even become a business in its own right with airlines selling miles to banks, and was followed by similar programs with United, Delta, Southwest and more. WSJ breaks down how American Airlines created the program that changed the way the world flies. Chapters: 0:00 Shift in air travel 1:07 History of airline loyalty programs 3:30 The industry 4:37 Airline miles and banks 6:57 Loyalty program competition Watch exclusive interviews with the creator of the first airline loyalty program and American Airlines VP of Revenue here:

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Why Airlines Can’t Survive Without Loyalty Programs | WSJ Case Study

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American Airlines created the first major airline loyalty program in 1981 as a way to compete for customers post-deregulation. But today these programs are the industry norm, having transformed into billions of dollar businesses with legs outside the aviation industry. The AAdvantage loyalty program has even become a business in its own right with airlines selling miles to banks, and was followed by similar programs with United, Delta, Southwest and more. WSJ breaks down how American Airlines created the program that changed the way the world flies. Chapters: 0:00 Shift in air travel 1:07 History of airline loyalty programs 3:30 The industry 4:37 Airline miles and banks 6:57 Loyalty program competition Watch exclusive interviews with the creator of the first airline loyalty program and American Airlines VP of Revenue here:

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Last Updated: May 23, 2026

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