American Airlines reports 30% rise in AAdvantage signups
American Airlines Chief Commercial Officer Nat Pieper reported that AAdvantage member acquisitions have increased by 30% year-over-year. During the Atoneworld Loyalty Summit, Pieper noted that these new members serve as potential leads for the airline's credit card business.
Cobrand credit card revenue is a significant profit driver for U.S. airlines. For American Airlines, Citibank currently contributes approximately $6 billion annually, with loyalty revenue margins reportedly reaching as high as 50%.
To facilitate member growth, American Airlines requires an AAdvantage login to access free onboard Wi-Fi. While this strategy increases signups, there is debate regarding its effectiveness as a long-term loyalty tool, as many users may only be registering to access the internet rather than seeking true program membership.