I think our definition of profits are different. You’re referring to financial profits, ie earnings. Yes loyalty programs increase customer captivity and can en

I think our definition of profits are different. You’re referring to financial profits, ie earnings. Yes loyalty programs increase customer captivity and can enable market leaders to make marginal financial profits through some periods. However, for investors, we care about profits from capital deployment, or returns from invested capital minus cost of capital. The marginal earnings that leading airlines generate from loyalty programs and business traveler accounts do not make up for the huge demand for capital, thus insufficient to break even the cost of capital.