AMERICAN AIRLINES

American Airlines Makes More Money Selling Miles than Seats

American Airlines reported its first-quarter profits for 2017 Thursday and it was expected to show something interesting: the airline is making more money selling miles than seats, a report says.

The Fort Worth-based company reported earnings of $237 million for its first quarter, exceeding Wall Street expectations.

According to Bloomberg, frequent flier miles programs are a cash cow for carriers like American Airlines.

It sells its miles to Citigroup, bringing the airline anywhere from 1.5 to 2.5 cents for each mile.

And according to the report, American's frequent flyer miles program accounts for more than half of all profits.

Airlines have been reluctant to reveal more details about these figures. But we are expected to learn more about American Airlines' first quarter profits once they're released Thursday afternoon.

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