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We’ll see where else they devalue to pay for that.
Miles are accounted for as a liability on airlines’ financials so there was always a motivation to get rid of them if unused after a while. That said, bucking the trend in loyalty programs of expiring balances is potentially good. It usually takes a recession though to really see customer-friendly improvements in loyalty programs.
Taking it on is a 1x adjustment to valuation or liability kept. Not that big a deal long-term for a big co like United.
Yea bc now you’ll have to save for 5 years so your miles can actually buy you a flight. Nothing is free in the world
Airlines make an allowance for breakage, or miles that will never be redeemed, when miles are first sold or earned and recorded as a liability, so the impact on financial results should be limited to miles that will now be redeemed at some point but otherwise would have expired plus the lost of income from the reinstate miles program.
Being negative I don’t see this as a positive. I use my miles but if casual users lose their miles then more seats for me and my fellow 🐠. That and u know United will drop the hammer soon.