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:: Chronology of Mileage Redemption/Program Liability Accumulation |
Since 1981, when frequent flyer programs originated, members have earned and redeemed miles at an exponentially increasing rate. This chart shows the number of "new" miles that are being pumped into the frequent flyer economy each year, the number of miles that are being redeemed (spent) by members and the resulting outstanding liablity for the programs. Note: these totals do not include award redemption for upgrades or partners.
How to Read this Chart
1981 |
4.1 |
4.1 |
1.9 |
1.9 |
2.2 |
1982 |
16.8 |
20.9 |
12.9 |
14.8 |
6.1 |
1983 |
38.3 |
59.2 |
28.6 |
43.4 |
15.8 |
1984 |
65.1 |
124.3 |
41.9 |
85.3 |
39 |
1985 |
94.3 |
218.6 |
57.3 |
142.6 |
76 |
1986 |
123.8 |
342.4 |
72.8 |
215.4 |
127 |
1987 |
163 |
505.4 |
81.3 |
296.7 |
208.7 |
1988 |
282.1 |
787.5 |
90.8 |
387.5 |
400 |
1989 |
337.6 |
1125.1 |
120.4 |
507.9 |
617.2 |
1990 |
394.1 |
1519.2 |
133.4 |
641.3 |
877.9 |
1991 |
443.3 |
1962.5 |
155.3 |
796.6 |
1165.9 |
1992 |
498.8 |
2461.3 |
178.6 |
975.2 |
1486.1 |
1993 |
583 |
3044.3 |
202.1 |
1177.3 |
1867.1 |
1994 |
644 |
3688.3 |
278.6 |
1455.9 |
2232.4 |
1995 |
661 |
4349.3 |
284.8 |
1740.7 |
2608.6 |
1996 |
830 |
5179.3 |
255.3 |
1996 |
3183.3 |
1997 |
980 |
6159.3 |
271.8 |
2267.8 |
3891.5 |
1998 |
1120 |
7279.3 |
403 |
2670.8 |
4608.5 |
1999 |
1290 |
8569.3 |
358.8 |
3029.6 |
5539.7 |
2000 |
1440 |
10009.3 |
349.5 |
3379.1 |
6630.2 |
2001 |
1600 |
11609.3 |
341.6 |
3720.7 |
7888.6 |
2002 |
1646 |
13255.3 |
402.9 |
4123.6 |
9131.7 |
2003 |
1730.6 |
14985.9 |
512.8 |
4636.4 |
10893.9 |
2004 |
2240.1 |
17226.0 |
633.6 |
5270.0 |
12367.3 |
2005 |
2714.1 |
19940.1 |
894.9 |
6164.9 |
14201.2 |
*Totals adjusted to reflect expiration of approximately 9-11% of airline miles.
Note: Due to trends in award activity, we estimate that 16-34% of all awards will go unredeemed. This includes expirations.
How to Read This Chart
- Column #1 - Number of miles awarded by airlines
- The number of miles given away or sold by airline programs in the year specified.
- Column #2 - Cumulative number of awarded miles
- The total number of miles that have been given away or sold, from 1981 through the specified year. This figure is calculated by adding the previous and current year figures from column #1.
- Column #3 - Cumulative number of miles redeemed by members
- The number of miles that members of frequent flyer programs redeemed for awards in the year specified.
- Column #4 - Cumulative number of redeemed miles
- The total number of miles that have been redeemed by members of frequent flyer programs, from 1981 through the specified year. This figure is calculated by adding the previous and current year figures from column #3.
- Column #5 - Cumulative number of unredeemed miles/program liability
- The total number of miles that have been awarded but not redeemed, from 1981 through the specified year. These unredeemed miles are considered a liability by the airlines. This figure is calculated by subtracting the cumulative number of redeemed miles (column #4) from the cumulative number of awarded miles (column #2).
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