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Credit Card Applications » News » Other » The rush to get the frequent flier miles cards

The rush to get the frequent flier miles cards

August 20, 2010
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Are you looking to avail a frequent flier miles card? Well, here is some good news for you. Banks and other financial institutions that are providing these cards to consumers have some great deals off late on offer. Some of the credit cards in this category that are being highly sought after are the American Airlines Citi Advantage card and the United Airlines Mileage Plus card. On the former, you can get up to thirty thousand bonus miles and on the latter, in addition to the thirty thousand bonus miles, you can also avail triple miles when you pay using the card to reserve a seat on any United Airlines flight.

Some cards are also promoting their irresistible offer aboard their airplanes. The US Airways, for example, passes out application forms and brochures to passengers aboard their planes and eases the process of signing up for the US Airways Dividend Miles credit card.

So, what is the reason for an increasing number of people looking out to apply for these frequent flier miles cards? Commonly referred to as the airline affinity cards, these are cards issued by banks in partnership with various airline companies.

One of the reasons for the growing popularity is the amount of money involved. A publisher for one of the travel website, Joe Brancatelli, says that the banks and airline companies are more than willing to purchase the air miles accumulated by the customers on cards because it translates to a lot of money to them.

The money involved is the main factor for the airline companies and banks to promote lucrative and irresistible deals on them. Over the last twelve months, the money that the banks were able to make through these cards, excluding the airfares came up to $7.8 billion, as per the figures from the Transportation Department. Of the total amount made, the airline companies earned up to $2.7 billion in terms of fees for just checking the baggage and another $2.4 billion as penalty fees for changing the reservation. Of the remaining money, a large share went to the banks that issued these cards in collaboration with the airlines.

After a few trying years, the domestic airline segment is now seeing increased activity. A large number of airlines in this segment reported higher profits in the second quarter of the current fiscal year. Delta Airlines, one of the biggest players in this segment, reported $549 million as profits in the second quarter, which is the highest it has made over the last ten years.

This coupled with the increase in customer spending is leading to the popularity of the frequent flier miles credit cards.

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