Airline loyalty: Airlines that are bucking the trend
Airlines bucking the trend
In two previous companion articles, “Why Airlines are Devaluing Programs” and “Airline Program Devaluation Levers”, we explored why and how airlines have been devaluing their loyalty programs.
While much of the airline industry has been reducing benefits, some carriers are taking the opposite path. They are finding ways to enhance value despite the same financial and operational pressures, using loyalty as a genuine competitive differentiator.
One notable approach is expanding partner ecosystems in ways that mirror coalition programs without overtly branding them as such. Emirates Skywards and Qantas Frequent Flyer have built extensive earn networks across retail, insurance, health, and financial services, enabling members to accumulate points through everyday spending. This diversifies funding, keeps members engaged between flights, and strengthens perceived value without adding significant direct costs.
Alaska Airlines, despite some recent status qualification increases, has resisted the industry-wide trend toward major devaluations. Their distance-based award charts remain stable and predictable, and their partnership network has expanded, including joining oneworld in 2021.
Air France-KLM’s Flying Blue program has paired dynamic pricing with predictable monthly promo rewards and expanded credit card transfer partnerships, creating genuine enhancements in value.
Singapore Airlines’ KrisFlyer program has implemented some devaluations, but it has balanced these with innovations such as 'Spontaneous Escapes', offering significant last-minute award discounts and maintaining exclusive premium cabin access for its own members.
Even though Air Canada’s Aeroplan program is now moving to a model that favours higher spenders over occasional flyers, it has to date bucked industry trends in several meaningful ways. The elimination of fuel surcharges saved members hundreds of dollars per ticket, and their transparent award charts (rather than hidden dynamic pricing) represent a commitment to predictability that many competitors have abandoned. Their stopover policies are among the most generous in the industry.
WestJet's program evolution has been positive, moving from a basic program to one with more robust features. The simplicity of their points valuation (effectively cash-equivalent) protects against the typical devaluation tactics used by other airlines. Their member-exclusive fares often represent genuinely good deals compared to cash prices, and an increasing number of partnerships, for example with Canadian Tire, are creating even more value.
Virgin Atlantic has recently stated its intent to reward infrequent flyers specifically with, amongst other things, the “fastest, simplest tier progression”, and a “predictable” offering so that customers know exactly how many points they’re going to get when they book.
The loyalty dividend as strategic imperative
Viewing loyalty programs as liabilities to be minimised is a short-sighted approach. Short-term cost savings from devaluation are often outweighed by long-term revenue losses from customer defection. Evidence suggests that loyalty is best treated as a strategic asset that can drive market share gains, particularly among high-value travellers.
We expect a significant redistribution of market share in the coming years, with winners being those who embrace transparency, value-added innovation, and segmentation strategies that do not abandon lower-value members. Proactive compliance with emerging regulations will also protect against reputational and financial harm.
The post-pandemic period offers airlines a rare chance to reset loyalty strategies. While some are using this moment to squeeze more from their members, others are investing in programs as strategic assets. For travellers, the opportunity lies in identifying and supporting the carriers that are genuinely committed to maintaining and enhancing their loyalty dividend.
