The Costly Lesson of American Airlines’ Lifetime AAirpass

In 1981, American Airlines introduced the “lifetime unlimited AAirpass” at a cost of $250,000, which would be equivalent to around $870,000 in today’s currency. This exclusive pass granted lifetime access to unlimited first-class flights, and an additional companion pass could be obtained for an extra $150,000. The airline hoped that this initiative would generate substantial revenue, but it ultimately backfired. Only a handful of people purchased the passes, and those who did made full use of the benefits. Two of the most frequent fliers cost American Airlines a staggering $1 million annually and accumulated over 30 million miles in their travels.

Interestingly, the AAirpass was not the only such program at the time; other airlines offered similar lifetime passes with varying prices and benefits. For example, United Airlines sold a lifetime pass for unlimited travel in first-class cabins at a price of $500,000 in 1988. However, due to similar issues with cost and usage, these programs were eventually discontinued.

In 1987, Steve Rothstein purchased…

In 1987, Steve Rothstein purchased an AAirpass ticket for $233,509. During the 10 years Rothstein owned the pass, he flew more than 10 million miles, earned over 40 million frequent flier miles (all of which he gave away) and made more than 500 trips to England, costing the company $21 million. It was only revoked […]