Airline loyalty schemes have long been one of the most valuable tools in an airline’s commercial strategy. What began as a way to encourage repeat business has evolved into a multi-billion-dollar ecosystem that extends far beyond free flights and lounge access. Today, airline loyalty programmes are financial powerhouses, serving as profit centres in their own right. But as airlines recalibrate their business models post-pandemic, these schemes are undergoing radical changes—ones that prioritise high-spending corporate travellers at the expense of leisure flyers.
The days of racking up status with a few long-haul economy flights or even moderate business class spending are fading. Earlier this year, British Airways sent shockwaves through its frequent flyer base by announcing that Gold status—previously accessible through a combination of flying and tier points—would now require an astonishing £25,000 of annual spending. It was a clear signal: Elite benefits are no longer for those who simply travel often. They are for those who spend big.
Loyalty schemes have long been seen as a way to keep customers engaged, ensuring they return to the same airline time and again. But their real value to airlines isn’t just in repeat business — it’s in the financial mechanics that underpin them. The most profitable aspect of modern frequent flyer programmes is co-branded credit cards. Airlines sell billions of points to banks, which then distribute them to cardholders through everyday spending. American Airlines’ AAdvantage programme, for instance, generates enormous revenue not from ticket sales but from selling miles to Citi and Barclays. Delta’s partnership with American Express is worth over $5bn annually, and British Airways enjoys a similarly lucrative arrangement with American Express in the UK.
Loyalty programmes also provide airlines with a captive customer base. High-tier members are less likely to shop around for cheaper fares when they know they need a certain number of flights or tier points to maintain their benefits. This predictability translates into higher yield per passenger, an essential metric for profitability. Then there’s breakage revenue — the airline industry’s polite term for points that go unredeemed. A large portion of frequent flyer miles issued will never be used, meaning airlines can sell these points to partners without having to provide an actual flight in return.
For passengers, the traditional appeal of loyalty programmes has been straightforward: Status equates to smoother, more comfortable travel. At the top tiers, benefits such as airport lounge access, fast-track security, upgrade priority, and additional baggage allowances make frequent flying more tolerable. For business travellers, these perks aren’t just luxuries; they provide efficiency and convenience, particularly when flying short-haul where the experience on board is often indistinguishable between economy and business class. A British Airways Gold or Qatar Airways Platinum cardholder moving through an airport can avoid queues, enjoy pre-flight dining, and secure a better seat—all of which add up to a significantly better experience than an unranked traveller.
But with airlines tightening the rules, the traditional methods of earning status — flying frequently and collecting miles — are being replaced by hard spending requirements. And that’s where British Airways’ recent move changed the game.
British Airways has long positioned its Executive Club as the loyalty scheme for the UK’s high-value frequent flyers. Until now, Gold status was achievable by accumulating 1,500 tier points, earned based on flight distance and cabin class. While that threshold wasn’t insignificant, it was possible to reach without necessarily spending five figures.
Now, British Airways has shifted the goalposts. As of 2025, spending £25,000 annually on BA flights will be required to maintain Gold. This isn’t about how much you fly—it’s about how much you pay.
For leisure travellers, even those who take multiple long-haul trips in premium cabins, this figure is largely unattainable. A return flight to the US in business class might generate around £3,000-5,000 in spend. That means a traveller would need to take at least five transatlantic business class trips per year just to retain Gold. The move is a clear pivot towards corporate clients and ultra-high-spending individuals, those whose travel is booked on flexible, last-minute fares — the most profitable tickets an airline can sell. It also signals the end of the road for mileage runners: Travellers who engineered status through creative routings and fare combinations. The message is simple — status is no longer a reward for frequency; it’s a reward for revenue.
The big question now is whether frequent flyer loyalty still matters to the modern traveller. The airline industry has changed since the pandemic, and so have consumer habits. On one hand, status remains deeply psychological. Frequent flyers value the feeling of being recognised and prioritised, and airlines know that customers will go to great lengths to maintain their standing. There’s a reason airline status match offers are so effective — travellers hate the idea of losing their hard-earned privileges.
But on the other hand, price matters more than ever. The cost-of-living, inflation, and shifting work patterns have all contributed to a more price-sensitive market. Even business travellers, historically shielded from cost considerations, are feeling the squeeze. Corporate travel budgets aren’t what they used to be, and many companies are now actively encouraging employees to book the lowest available fare, rather than remain loyal to a single airline.
This is where low-cost carriers have gained traction. Ryanair, EasyJet, and even long-haul players like Norse Atlantic and Scoot are pulling premium customers away from legacy carriers, particularly for short-haul or leisure trips where loyalty benefits are less relevant. If a frequent flyer has to spend £25,000 just to retain Gold, but can buy a one-off lounge pass and a priority boarding upgrade on another airline for a fraction of the cost, the equation starts to shift.
British Airways isn’t alone in restructuring its loyalty model. Other airlines are making similar moves, making it easier for corporate clients to reach top status while shutting out leisure travellers. Qantas has increased the spending thresholds required for its Platinum status, favouring those who book directly with the airline rather than through discounting agents. Virgin Australia has shifted towards a points-plus-spend system, reducing the ability of budget-conscious travellers to game the system. Iberia has quietly aligned its own frequent flyer programme to mirror British Airways’ approach, likely in preparation for a deeper integration under IAG. Even in the US, where loyalty programmes are already highly revenue-driven, airlines like Delta and American Airlines are refining their schemes to prioritise spend over segments flown.
As airlines double down on their most profitable customers, loyalty schemes are at risk of becoming irrelevant for the average traveller. Many airlines are shifting towards an era where perks are reserved for those willing to spend, and the once-attainable dream of lounge access and priority treatment is now becoming out of reach for all but the highest-spending flyers. This doesn’t mean loyalty is dead—it means it’s evolving. The days of “earning” status are disappearing, replaced by a straightforward equation: If you want benefits, you need to pay for them. Airlines are making their priorities clear, and leisure travellers who once played the system are finding that, in 2025, loyalty is a more difficult game to win.
The author is an aviation analyst. X handle @AlexInAir.
