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Author: S&P Global Ratings

S&P Global Ratings structured finance podcast and the credit events of your day. Tune in as your hosts Jim Manzi and Tom Schopflocher explore hot topics across the structured finance and global markets.
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Airline Loyalty ABS Have Lift Off
Episode 90
Friday, 18 July, 2025

Loyalty programs have turned out to be highly profitable for airlines, as for some, they generate more cash flow than flight operations. Indeed, we believe that without a loyalty program, certain major U.S. airlines' earnings would be decidedly weaker in the current economic environment. We discuss how these loyalty programs work, their resiliency in tough times while other airline assets remain idle, how airlines generate financing from these programs by securitizing future loyalty revenue streams (and by proxy, the different types of ABS securitizations), and just how they’ve become core financial assets in general. Related Article: ABS Frontiers: Airline Loyaly ABS Have Lift Off