KAL, Asiana earn W1.8 tril. from selling mileages
Korean Air and Asiana Airlines have earned nearly 2 trillion won ($1.67 billion) by selling air mileage to credit card companies since January 2016, government data showed Sunday.
Card firms have bought the mileage of cardholders who wanted to convert their card points to air miles but not many cardholders were found to have used their miles before they expired due to various terms and conditions.
According to Financial Supervisory Service data released by Rep. Koh Yong-jin of the ruling Democratic Party, Korean Air and Asiana Airlines jointly earned 1.8 trillion won by selling the mileage to 19 domestic card firms between January 2016 and August 2019.
Korean Air sold 17 domestic card firms 78.91 billion mileage points for 1.19 trillion won.
Asiana Airlines also posted a 617.2 billion won profit by selling 56.21 billion mileage points to 18 card firms.
“The two airliners have gained enormous profits by selling their air mileages to card firms for years. However, cardholders are experiencing difficulties in using the mileage because the airliners set up various terms and conditions,” said Koh.