CEO Blog

Written by Ravindra Bhagwanani on . Posted in Archives

LH

While several airlines – though still by far a minority – have switched to a revenue basis with their FFPs, nobody seems to struggle as much as Lufthansa to find the right accrual rate. It was quickly understood that the initial accrual rate of 4 miles per EUR was not really sustainable in front of the high award levels at Miles & More and the rate has been adjusted several times since then, though on promotional basis and for certain segments only. As such, intercontinental Lufthansa Economy Class flights earned a higher rate of 6 miles per EUR spent since 01 February, which has now again increased to 7 miles throughout December. Flights to California and Texas even earn 20 or 24 miles per EUR. Premium Economy travel still earns 5 miles per EUR spent until the end of the year. It is though everyone’s best guess which rates will apply in 2020 – going back to the official 4 miles per EUR seems in any case not viable anymore. And customers are obviously eager to see such improved earn rates being extended to the other Miles & More carriers, including Swiss, Austrian Airlines and LOT. Interesting to note that no other major carrier having switched to a revenue basis – from Delta to United and Air France KLM – has ever touched their initial earn rate since being established…