Frequent flying isn’t so much of a thing right now, but loyalty programmes are in many cases getting better as airlines fight to keep customers and generate sorely needed revenue after the coronavirus ransacked travel.
Introduced nearly 50 years ago, air miles are a way for the industry to make money. Aside from locking in repeat customers by helping them accumulate trips, airlines sell miles to credit card companies, banks, hotels and other businesses for billions of dollars. This revenue source is crucial now that the pandemic has thrown aviation into crisis, and airlines are piling in with new offers such as bonus points and lowering thresholds to qualify for more perks.
These programmes appeal to a carrier's very best revenue-producing customers, so there is abundant need to keep these consumers happy.
Some are also increasing the number of points members earn from shopping, as well as expanding partnerships so there are more opportunities to rack up miles. That means it should take less effort to secure reward flights or upgrade to business class. US carrier Delta Air Lines is providing four times the usual amount of miles for purchases with American Express cards at American supermarkets, while Etihad Airways is offering up to $400 (Dh1,469) and 5,000 miles for passengers who postpone flights scheduled before July 31 and has points deals for online shopping and cashback offers with brands including KFC and Pizza Hut.
“These programmes appeal to a carrier’s very best revenue-producing customers, so there is abundant need to keep these consumers happy,” says Jay Sorensen, a former Midwest Airlines executive who is now president of consultancy IdeaWorksCompany. “In the near term, consumers will see a windfall of cheap travel for redeeming points or miles.”
According to a 2017 study by Stifel Financial, airlines can get up to 2.5 cents for every mile, so they are a rich source of liquidity. Banks then benefit from annual charges on credit cards and merchant fees when cards are used.
Earlier this month, JetBlue Airways sold loyalty points to Barclay for $150 million. The airline received $475m from such deals in 2019, according to Stifel analyst Joe DeNardi. American Airlines Group received $4.3 billion and Delta reaped $4.2bn last year, he says.
American Airlines says its AAdvantage loyalty programme – “the biggest asset we have in the company” – has a value of as much $30bn, and that it is negotiating with the US Treasury Department to use at least part of it as collateral for a multibillion dollar loan. In April, the Treasury Department was in talks with some carriers about accepting loyalty programmes as collateral as they rushed to raise funds.
Cathay Pacific Airways, which flew just 458 passengers a day in April, is extending Marco Polo memberships and unused mid-tier benefits – access to business-class lounges, for example – by 12 months. United Airlines Holdings has extended Premier memberships through 2022 and made it easier to qualify for reward flights and earn points.
Meanwhile Emirates Airline is letting elite Skywards members maintain their statuses by fulfilling just 70 per cent of their tier travel requirements, as well as giving 20 per cent bonus tier miles. This comes as the world’s biggest long-haul carrier considers thousands of job cuts.
“It’s a good thing for consumers and for the airlines,” says Steve Saxon, a Shanghai-based partner at McKinsey. “Being able to earn miles for everyday spending makes flight redemptions much more accessible” and carriers can get revenue for seats that might otherwise go empty, he said.
Emirates’ members account for almost 45 per cent of the carrier’s commercial revenue, according to Nejib Ben Khedher, divisional senior vice president of Emirates Skywards. Abu Dhabi’s Etihad says loyalty programmes help it “obtain valuable data on each guest which allows us to tailor their experience", while Singapore Airlines does “not take their loyalty for granted.” Singapore Airlines last week reported a record loss.
Cheap offers will extend until the end of 2020 for domestic routes and through next spring for longer-haul international routes, Mr Sorensen says. Some airlines may cut down non-travel awards to save cash, or offer discounted business-class seats to loyalty members as companies reduce premium travel, he adds.
“Loyalty programmes will play an essential role in the industry’s recovery by creating incentives for customers to restart travelling,” says Renato Ramos, director for loyalty at Star Alliance, a grouping of airlines that includes the likes of Air China, Deutsche Lufthansa and United. “In addition to the existing perks for frequent flyers, we are looking at ways to find new benefits.”
One risk is there’s little value left in miles or co-branded credit cards if the issuing airline collapses, which is a very real threat as the likes of Virgin Australia Holdings, Avianca Holdings and others show.
“The airline industry itself, among them the legacy airlines, will be transformed after this earthquake-like shock,” says Pankaj Pandit, an independent consultant based in the Indian city of Bengaluru, formerly known as Bangalore. “Many legacy airlines may simply vanish, so naturally their appendage, the loyalty programmes, will also wither away,” he adds.
Some are trying to incentivise members to spend on associated credit cards and transfer points in from other partners such as hotels, according to Gary Leff, co-founder of InsideFlyer.com who writes on loyalty programmes.
“There will be empty seats to fill and airlines will need to rely on their programmes to make generous offers in order to bring back consumers,” Mr Leff says. “Expect loyalty programmes to run aggressive promotions, travel businesses to spend heavily marketing to their frequent flyers and frequent stay guests. In addition, with all of this excess inventory it’ll be easier for consumers to use their points. This will last as long as the downturn lasts.”
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
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Mohammed bin Zayed Majlis
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
More from Rashmee Roshan Lall
KILLING OF QASSEM SULEIMANI
COMPANY%20PROFILE
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UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Company Profile
Company name: Yeepeey
Started: Soft launch in November, 2020
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
UAE currency: the story behind the money in your pockets
Reputation
Taylor Swift
(Big Machine Records)
The specs: 2019 Audi A8
Price From Dh390,000
Engine 3.0L V6 turbo
Gearbox Eight-speed automatic
Power 345hp @ 5,000rpm
Torque 500Nm @ 1,370rpm
Fuel economy, combined 7.5L / 100km
Ireland v Denmark: The last two years
Denmark 1-1 Ireland
7/06/19, Euro 2020 qualifier
Denmark 0-0 Ireland
19/11/2018, Nations League
Ireland 0-0 Denmark
13/10/2018, Nations League
Ireland 1 Denmark 5
14/11/2017, World Cup qualifier
Denmark 0-0 Ireland
11/11/2017, World Cup qualifier
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
India squad for fourth and fifth Tests
Kohli (c), Dhawan, Rahul, Shaw, Pujara, Rahane (vc), Karun, Karthik (wk), Pant (wk), Ashwin, Jadeja, Pandya, Ishant, Shami, Umesh, Bumrah, Thakur, Vihari
Disability on screen
Empire — neuromuscular disease myasthenia gravis; bipolar disorder; post-traumatic stress disorder (PTSD)
Rosewood and Transparent — heart issues
24: Legacy — PTSD;
Superstore and NCIS: New Orleans — wheelchair-bound
Taken and This Is Us — cancer
Trial & Error — cognitive disorder prosopagnosia (facial blindness and dyslexia)
Grey’s Anatomy — prosthetic leg
Scorpion — obsessive compulsive disorder and anxiety
Switched at Birth — deafness
One Mississippi, Wentworth and Transparent — double mastectomy
Dragons — double amputee
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
DUBAI WORLD CUP CARNIVAL CARD
6.30pm Handicap US$135,000 (Turf) 2,410m
7.05pm UAE 1000 Guineas Listed $250,000 (Dirt) 1,600m
7.40pm Dubai Dash Listed $175,000 (T) 1,000m
8.15pm Al Bastakiya Trial Conditions $100,000 (D) 1.900m
8.50pm Al Fahidi Fort Group Two $250,000 (T) 1,400m
9.25pm Handicap $135,000 (D) 2,000m
The National selections
6.30pm: Gifts Of Gold
7.05pm Final Song
7.40pm Equilateral
8.15pm Dark Of Night
8.50pm Mythical Magic
9.25pm Franz Kafka
The specs
Engine: 3.0-litre 6-cyl turbo
Power: 374hp at 5,500-6,500rpm
Torque: 500Nm from 1,900-5,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.5L/100km
Price: from Dh285,000
On sale: from January 2022
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Saudi Arabia
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South Korea
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LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
The Bio
Ram Buxani earned a salary of 125 rupees per month in 1959
Indian currency was then legal tender in the Trucial States.
He received the wages plus food, accommodation, a haircut and cinema ticket twice a month and actuals for shaving and laundry expenses
Buxani followed in his father’s footsteps when he applied for a job overseas
His father Jivat Ram worked in general merchandize store in Gibraltar and the Canary Islands in the early 1930s
Buxani grew the UAE business over several sectors from retail to financial services but is attached to the original textile business
He talks in detail about natural fibres, the texture of cloth, mirrorwork and embroidery
Buxani lives by a simple philosophy – do good to all
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Dubai World Cup nominations
UAE: Thunder Snow/Saeed bin Suroor (trainer), North America/Satish Seemar, Drafted/Doug Watson, New Trails/Ahmad bin Harmash, Capezzano, Gronkowski, Axelrod, all trained by Salem bin Ghadayer
USA: Seeking The Soul/Dallas Stewart, Imperial Hunt/Luis Carvajal Jr, Audible/Todd Pletcher, Roy H/Peter Miller, Yoshida/William Mott, Promises Fulfilled/Dale Romans, Gunnevera/Antonio Sano, XY Jet/Jorge Navarro, Pavel/Doug O’Neill, Switzerland/Steve Asmussen.
Japan: Matera Sky/Hideyuki Mori, KT Brace/Haruki Sugiyama. Bahrain: Nine Below Zero/Fawzi Nass. Ireland: Tato Key/David Marnane. Hong Kong: Fight Hero/Me Tsui. South Korea: Dolkong/Simon Foster.
MATCH INFO
Southampton 0
Manchester City 1 (Sterling 16')
Man of the match: Kevin de Bruyne (Manchester City)
UAE currency: the story behind the money in your pockets
Results
Stage 4
1. Dylan Groenewegen (NED) Jumbo-Visma 04:16:13
2. Gaviria (COL) UAE Team Emirates
3. Pascal Ackermann (GER) Bora-Hansgrohe
4. Sam Bennett (IRL) Deceuninck-QuickStep
5. Caleb Ewan (AUS) Lotto Soudal
General Classification:
1. Adam Yates (GBR) Mitchelton-Scott 16:46:15
2. Tadej Pogacar (SLO) UAE Team Emirates 0:01:07
3. Alexey Lutsenko (KAZ) Astana Pro Team 0:01:35
4. David Gaudu (FRA) Groupama-FDJ 0:01:40
5. Rafal Majka (POL) Bora-Hansgrohe
FINAL SCORES
Fujairah 130 for 8 in 20 overs
(Sandy Sandeep 29, Hamdan Tahir 26 no, Umair Ali 2-15)
Sharjah 131 for 8 in 19.3 overs
(Kashif Daud 51, Umair Ali 20, Rohan Mustafa 2-17, Sabir Rao 2-26)
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
COMPANY PROFILE
Name: Akeed
Based: Muscat
Launch year: 2018
Number of employees: 40
Sector: Online food delivery
Funding: Raised $3.2m since inception
