Build the airline around points and not the other way aroundYa so in the past airline businesses have been crappy businesses. That is still true to a certain extent. If you look at the profitability of a lot of the US carriers, it actually looks pretty good in the past several years. Buffett has actually started to buy them. However, when you look closer, the airline operations actually is only breaking even or slightly losing money. What is actually causing Delta, united, etc to make money is their rewards program. In 2016/17 I believe Delta's net income was the same as the earnings directly from their points program. Net income has grown in proportion to the increase in points revenue! So that means that the main business is the points program. Why not build the airline around points and not points around an airline? Reading on historic profitability of airlines (if you can't access and want to, PM me with your email): https://seekingalpha.com/article/4052635-airlines-new-business-model-changing-game https://seekingalpha.com/article/4051876-delta-air-lines-buffett-bought