Tuesday, June 1, 2010

Airline Reward Programs Pay Off Less Frequently


By JOE SHARKEY
Published: May 31, 2010

FOR participants in frequent-flier programs, more miles are chasing fewer seats, and the problem is likely to get worse.

In April, the five so-called legacy carriers (Delta, United, American, Continental and US Airways) averaged domestic load factors of 85 percent, which measures how many seats on airplanes are occupied by paying customers.

Southwest Airlines reported a load factor of 78.8 percent in April. That brought the overall average down a bit for the top six carriers. But no matter how you do the math and as every frequent flier knows, an empty seat is as rare a sight as a free meal on most domestic flights.