How the Airline Credit Card Financial Model Works (Very Well, Thanks for Asking) – Cranky Flier

How the Airline Credit Card Financial Model Works (Very Well, Thanks for Asking) – Cranky Flier

This is a two-part series looking at airline credit cards. Today, we look at how it all works. Then tomorrow, we’ll ponder what happens if it all goes away. The airlines in the US have developed into a special kind of company… one that consistently loses money on its core business but makes up for it on financial services. This is thanks to the way banking laws work in the US. Cobranded credit cards have been an absolute gold mine for the larges…