Profit Lies Beyond the Aircraft

The airline industry can achieve profitability not just through ticket sales but significantly through frequent flyer programs and ancillary services. While moving passengers has low earnings, the value-added services around travel have created a lucrative business model. Carriers that innovate in maximizing profits from loyalty programs and premium offerings tend to have higher margins. The shift in focus from simply transporting passengers to enhancing customer engagement and experience reflects a pivotal change in the airline business landscape over the past 20 years.