Why Do Credit Card Miles Look Like Pure Airline Profit?

Scott Kirby says credit card miles look like pure airline profit because people see only the revenue. People say almost all of the net profit is coming from credit cards. The perception is big because the revenue is visible, and all United discloses is the revenue. Credit cards going away is not nearly as big a tail risk as people think.

United carries over 50,000 people a day. 50,000 people today fly free on United Airlines by using their credit card miles, and 50,000 people a day are flying for free. Nobody counts the cost of carrying 50,000 people. An accurate contribution calculation has to include the cost.

The Twitter meme that airlines are a credit card business with airplanes attached holds the financial statement upside down.