Miles & More: Lufthansa turns flight miles into a profit machine
Lufthansa has discovered a particularly profitable source of income in the Miles & More loyalty program. What weaknesses this conceals - and what the future might look like.
When it comes to Lufthansa's most important employees, the name Gerald Schlögl has hardly been mentioned so far. However, more than 40 million people worldwide use the Miles & More loyalty program at least once a month - and thus the division for which Schlögl is responsible. If Lufthansa's Chief Financial Officer Till Streichert is right, Schlögl could soon take on a more significant role.
Streichert wants to significantly expand the business around the small plastic cards. According to what is heard, revenues are expected to grow by around ten percent in the coming years. "We believe that much more is possible," the manager said last week at an event for Lufthansa's half-year figures. The most profitable part of the airline business Lufthansa's top cashier is attracted to something that he urgently needs in view of dwindling profits: more revenue.
According to senior employees, the mileage business has by far the highest return on sales of all Group companies. They estimate the revenue already today at around €1.4 billion per year and the operating profit at around €350 million - more than, for example, the currently booming cargo business generates. With a margin of more than 20 percent, the loyalty business brings the Group closer to the average return that Streichert has promised by the end of the decade.
Translated by urgent.news. Machine-written — may contain errors; check the original before relying on it.
