All the Hacks: Money, Points & Life

The Surprising History of Points and Miles

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Apr 15, 2026
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INSIGHT

Airline Deregulation Turned Miles Into Currency

  • Airline loyalty programs only became legal after deregulation, then turned miles into a sellable currency through non-flight partners.
  • American's 1982 Hertz deal priced miles near one cent each, letting the airline sell low-cost inventory at extraordinary margins.
ANECDOTE

American's Lifetime AirPass Became A Liability

  • American sold unlimited lifetime first-class AirPasses for $250,000 and still awarded miles on those flights.
  • Stephen Rothstein took 10,000-plus flights and roughly 40 million miles, eventually costing American over $1 million a year before losing his pass.
INSIGHT

Co-Branded Cards Put Airlines In Everyday Spending

  • The first major airline co-branded card let people earn miles from groceries and daily spending, not just flights.
  • American's 1987 Citi partnership helped turn airlines into lifestyle brands, while Amex's transferable points became the template others copied.
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