The Business Model Behind Flying Blue: How the Program Earns Close to a Billion

Last updated: 27 February 2026 - 20 min read - Based on Air France-KLM annual reports and 10+ independent sources

Flying Blue in Numbers: EUR 886 Million

Most Flying Blue members think of the program as a marketing tool: a way to keep customers loyal to Air France and KLM. That is true, but it is not the full story. Flying Blue is a fully-fledged business that generates close to a billion euros per year and keeps nearly a quarter of that as profit.

On 19 February 2026, Air France-KLM published its annual results for 2025. Here are the key Flying Blue figures:

Source: Air France-KLM FY2025 press release, 19 February 2026.

To put these numbers in perspective: Air France-KLM generated total group revenue of EUR 33 billion in 2025. Flying Blue's EUR 886 million represents roughly 2.7% of group revenue, but with an operating margin of 24.6%, it is one of the most profitable parts of the entire company. For comparison: the group's overall operating margin was 6.1%.

How Flying Blue Makes Money

The Flying Blue business model revolves around a simple principle: miles are a currency that Flying Blue creates and sells. Every time you earn miles, someone has paid for them. The question is: who?

Revenue stream 1: Selling miles to external partners (67%)

The largest share of revenue comes from external parties buying miles from Flying Blue. These partners purchase miles in bulk and pass them on to their customers as rewards. Examples:

• Credit card companies - American Express buys millions of miles from Flying Blue and distributes them to cardholders who spend on their Flying Blue co-branded cards. For every euro or dollar spent, Amex pays a small amount to Flying Blue.
• Hotels and car rental - Accor, Hertz, and other partners buy miles to reward customers for bookings.
• Online retail - through the Flying Blue shopping portal, you earn miles at various retailers. The shops pay Flying Blue per Mile issued.
• Airline partners - when you fly a SkyTeam partner like Delta or SAS and earn Flying Blue miles, that partner airline pays Flying Blue for the miles issued.

In 2025, this third-party revenue totaled EUR 595 million, or 67% of total Flying Blue revenue. The year before, the non-airline component had grown by 22%.

Revenue stream 2: miles compensation from Air France and KLM (33%)

The remaining 33% (approximately EUR 291 million) comes from the parent airlines themselves. When you earn miles by flying on Air France or KLM, those airlines internally compensate Flying Blue for issuing those miles. This is an accounting transfer that covers the cost of future redemptions.

The redemption side: cost of redeemed miles

Against revenue stand costs. Every time a member redeems miles for an airline seat, Flying Blue bears the cost of that seat. For an Economy Class award ticket, that is the marginal cost of an additional passenger. For a Business Class seat on a busy route, it can be substantial.

The difference between what Flying Blue receives from selling miles and what it spends on redemptions is the gross profit. With an operating margin of 24.6%, Flying Blue keeps nearly a quarter of every euro earned.

From Airline Program to miles Factory

The most striking aspect of the Flying Blue figures is the shift from airline to non-airline revenue. Flying Blue started in 2005 as a loyalty program for airline passengers. Twenty years later, two-thirds of revenue comes from outside the aircraft cabin.

This shift is not unique to Flying Blue. All major loyalty programs are making the same transition. At the big US airlines (Delta, United, American), as much as 70% of loyalty revenue comes from non-airline sources, primarily co-branded credit cards.

Why this matters for you

The shift toward non-airline revenue has three direct consequences for members:

1. More miles in circulation - the more miles sold to partners, the more miles are in total circulation. That puts pressure on the value per Mile.
2. Dynamic pricing as a control mechanism - Flying Blue uses variable award pricing to regulate the flow of redemptions. Without dynamic pricing, popular routes would be booked out immediately.
3. Credit card miles are increasingly important - if two-thirds of miles are earned outside the aircraft, a good co-branded credit card is at least as valuable as frequent flying.

The Apollo Deal: Flying Blue as a Standalone Business

In November 2023, Air France-KLM announced a remarkable deal with Apollo Global Management, one of the world's largest private equity firms. Apollo invested EUR 1.5 billion in a specially created operating entity around Flying Blue.

How the deal works

Air France-KLM established a separate company ("dedicated operating affiliate") that holds three critical assets:

1. The Flying Blue trademark - the brand name and all intellectual property rights.
2. The commercial partner contracts - all agreements with credit card companies, hotels, car rental firms, and other partners that buy miles.
3. The exclusive right to issue miles - only this entity may create and sell Flying Blue miles.

Apollo purchased perpetual bonds (bonds with no maturity date) from this entity, carrying a fixed coupon of 6.4% per year for the first four years. Under IFRS accounting standards, this financing is treated as equity, not debt. This strengthens Air France-KLM's balance sheet without increasing its debt load.

What does (and does not) change for members?

The short answer: nothing. Air France-KLM continues to fully operate Flying Blue. Air France and KLM retain complete control over the customer database. Your miles, your status, and your benefits are unaffected by the deal.

But the deal does confirm something fundamental: Flying Blue is valuable enough to function as a standalone asset. Apollo does not invest EUR 1.5 billion in a marketing department. They invest in a business with predictable, growing cash flows.

Europe vs the US: Why Flying Blue Works Differently

Flying Blue is one of Europe's largest loyalty programs, but compared to American programs, the picture is quite different. The difference is not the quality of the program, but the structure of the market behind it.

Sources: Air France-KLM FY2025, IdeaWorksCompany 2024 report. US Big 5 = Alaska, American, Delta, Southwest, United. The USD 28 billion figure is the 2024 total. Comparison is indicative due to different reporting standards.

The interchange gap

The biggest difference comes down to a seemingly small number: the interchange fee. This is the percentage a merchant pays to the cardholder's bank on every credit card transaction. In the United States, this is 1-3%. In the European Union, it is capped at 0.3% (set by EU regulation).

Why does that matter? Because credit card companies use a portion of that interchange fee to buy miles from the loyalty program. In the US, a bank can pay ten times as much per transaction to the program as in Europe. That explains why Delta Skymiles alone generates more revenue than Flying Blue, Air miles, miles & More, and all other European programs combined.

It is not that Flying Blue is a worse program. It is that the European market has structurally different economic dynamics. This has direct consequences:

• European loyalty programs are more dependent on flying behavior and less on credit cards than American ones.
• Margins per Mile sold are smaller in Europe, which puts more pressure on cost management during redemptions.
• Flying Blue compensates by investing more aggressively in non-airline partnerships beyond the credit card market.

What This Means for You as a Member

The Flying Blue business model is not just interesting for investors. If you understand how the program makes money, you can predict upcoming changes and respond to them strategically.

Miles devaluation is structural

When Flying Blue sells more miles to external partners, the total number of miles in circulation grows. If the capacity of award seats does not grow at the same rate, miles become worth less by definition. This is not a bug, it is a feature of the business model.

In January 2025, Flying Blue raised minimum award prices for intercontinental tickets. Economy to North America went from 20,000 to 25,000 miles, Business from 50,000 to 60,000 miles. That is a 20% devaluation in one move. Expect this to happen periodically, as long as miles sales volume keeps increasing.

Dynamic pricing is not going away

Since June 2018, Flying Blue has used variable award pricing. Many members hope that fixed award charts will return. They will not. Dynamic pricing is essential to the business model because it allows Flying Blue to manage redemption costs: popular flights cost more miles, quiet flights cost fewer.

The good news: dynamic pricing also creates opportunities. The floor prices (minimum rates) are often available on less popular dates and routes. By being flexible with your travel dates and using the award calendar, you can regularly book at the minimum rate.

Credit card miles are increasingly important

If two-thirds of Flying Blue revenue comes from external partnerships, it makes sense that the program keeps creating more ways to earn miles outside the aircraft. Co-branded credit cards are the best example: 1 to 1.5 miles per euro or dollar on everyday spending, plus welcome bonuses up to 120,000 miles.

Recently, XP earning via credit cards was introduced (160 XP for USD 25,000 in spending). That is telling: not just miles, but status is being tied to spending behavior rather than just flying behavior.

Revenue-based status: not if, but when

The business model also explains why Flying Blue is considering a shift to revenue-based status qualification. If the program primarily makes money by selling miles, it is logical to reserve the best benefits for members who contribute most to revenue. Those are not necessarily the members who fly most often, but the members who spend the most.

Signals pointing in this direction:

• In 2025, Flying Blue surveyed members about the possibility of a revenue component in status qualification.
• In late 2025, Flying Blue tested differentiated XP by fare brand, where some Business Class fares would earn 0 XP.
• British Airways (Avios) recently switched to revenue-based status. Aeroplan (Air Canada) follows in 2026. Flying Blue is watching closely.

A full switch to revenue-based status would have a major impact on mileage runners and frequent flyers who travel in cheaper cabins. Read more in our guide on XP and status qualification.

The Future of Flying Blue

Based on the business model and recent developments, four trends are emerging:

1. More non-airline partnerships

Flying Blue will continue expanding its partner network. The goal: have members earn miles daily, not just when they fly. The collaboration with Pointspay (embedded e-commerce) and the expansion into retail and subscriptions fit this pattern. Expect more partnerships with European and global brands.

2. Flying Blue Extra as a revenue model

Flying Blue Extra (launched October 2025) is a subscription product that gives members extra benefits for a monthly fee, including exclusive Promo Rewards, extra baggage, and lounge passes. For Flying Blue, this is a new, predictable revenue stream. Expect the offering to expand further.

3. Status tied to spending

The combination of credit card XP and the potential introduction of revenue-based qualification points to a future where status is no longer determined solely by flying behavior. This benefits credit card users and business travelers, but disadvantages mileage runners and budget travelers who fly many segments in Economy.

4. Further miles devaluation

As long as miles sales to external partners keep growing (and they are, at +10% in 2025), the number of miles in circulation increases. Flying Blue will offset this growth with higher award prices, tighter availability, or periodic increases in minimum rates. The message: redeem your miles promptly and strategically.

Frequently Asked Questions

Sources and Verification

All financial data in this guide comes from official Air France-KLM publications and independent analyses. Last verified: 27 February 2026.

• Air France-KLM - Financial Results - FY2025 annual results (published 19 February 2026)
• Air France-KLM - Apollo Deal Press Release - quasi-equity financing details (November 2023)
• Air France-KLM - Investor Day 2023 - strategy and financial targets (December 2023)
• Air France-KLM - Flying Blue 20 Years - anniversary press release (June 2025)
• IdeaWorksCompany - Airline Loyalty and Co-Branding - global loyalty program comparison (2024)
• Flying Blue - official program
• FlyerTalk - Investor Day Discussion - community analysis of the Investor Day presentation

This guide is based on publicly available financial information from Air France-KLM, independent analyses, and 20 years of personal experience with Flying Blue. Financial figures are sourced from the official FY2025 results published on 19 February 2026. Forward-looking statements are the author's opinion. SkyStatus is not affiliated with Air France-KLM or Flying Blue.