Illustrated Economics: Airline frequent flier programs

It’s time for Howard’s Illustrated Economics. This morning, the role of Hawaii in airline frequent flier programs. Mileage programs reward loyalty, but at some point you have to, you know, reward loyalty. Nationwide, 6.8% of all fliers are flying free, burning up miles. But on routes to Hawaii, the percentage burning miles is higher, 11.4%. That’s half again more passengers flying free.  Southwest Airlines is a special case. While the national average of pas...

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