From Legacy Carriers to Low-Cost Airlines: Who’s Doing Subscriptions Right?
Airline subscription programs have emerged as one of the most compelling innovations in the travel loyalty space. As traveler expectations shift toward personalized, flexible, and immediate value, both legacy and low-cost carriers are rethinking how they build loyalty and drive recurring revenue.
While traditional airline loyalty programs still hold strong, they’re no longer the only way to retain high-value customers. Subscriptions with monthly or annual payment models in exchange for guaranteed benefits are being adopted across the board. But how these models are implemented differs greatly between full-service airlines and budget carriers.
Legacy Carriers: Layering Subscriptions into Traditional Loyalty
Legacy airlines such as Delta, United, and American have decades of experience running tiered loyalty programs. These programs reward frequent flyers with miles, elite status, and access to benefits like lounges, upgrades, and preferred boarding. But over the last few years, these carriers have started adding subscription-style features to offer flexibility and improve perceived value, particularly for non-elite flyers.
Delta, for example, has enhanced its SkyMiles program with paid add-ons like in-flight Wi-Fi access, simplified upgrade opportunities, and exclusive airport services. While these aren’t full-fledged subscription programs, they are unmistakably moving in that direction. Travelers pay a fee for consistent benefits they can use right away, something traditional loyalty tiers typically reserve for top spenders.
United, on the other hand, recently made changes to its MileagePlus elite perks, including the removal of Clear Plus membership for top-tier members. This signals a shift toward monetizing certain privileges through optional programs rather than bundling them into loyalty status alone. In essence, United is testing what travelers are willing to pay for directly, and how that fits into their larger loyalty strategy.
Low-Cost Carriers: Leading with Simplicity and Subscription
In contrast, low-cost carriers have been more aggressive and transparent in deploying actual subscription models. These airlines often build subscriptions into their core offering rather than presenting them as a complement to existing loyalty programs.
Take Alaska Airlines. Its Flight Pass program allows travelers to pay a monthly fee in exchange for a set number of round-trip flights per year, primarily within the western United States. The benefits are clear: predictable pricing, ease of planning, and flexible booking windows. It’s a loyalty model that works exceptionally well for leisure travelers and remote workers.
Volaris, a Mexican low-cost carrier, offers a monthly subscription called V Pass that allows travelers to book one round-trip flight per month with no blackout dates. It’s straightforward, affordable, and appealing to those who travel frequently between the same destinations.
AirAsia introduced an “unlimited flight” subscription in select regions, offering unlimited travel within specific time frames. While it came with operational challenges, the bold approach generated massive buzz and underscored how value-packed subscriptions can serve as both a loyalty engine and a marketing magnet.
Key Differences Between Legacy and Budget Airline Subscriptions
Legacy carriers tend to position subscription benefits as extensions of loyalty, offering them to enhance or accelerate tier progression. These programs are often more complex and tied to spending or flight volume. They’re designed with business travelers and frequent flyers in mind, which makes them ideal for customers already embedded in the brand’s ecosystem.
Low-cost carriers take the opposite approach. Subscriptions are packaged as simple offers, typically based on multiple flights, fixed monthly payments, and immediate usage. These programs are ideal for casual or price-sensitive travelers who may not fly often enough to reach elite tiers but still want value for their loyalty.
Why Subscription Models Resonate in 2025
As discussed in this blog on Dealcation travel trends, travelers are increasingly prioritizing control over their costs and perks. Subscriptions deliver that control. Instead of chasing points or rewards that may or may not be helpful, subscribers receive benefits they can use right away. That predictability has become one of the most powerful currencies in travel.
As we explored in our high-retention loyalty blog, offering tangible value upfront is one of the clearest indicators of whether a program will keep customers engaged in the long term.
Where Custom Travel Solutions Fits In
For travel brands looking to emulate what airlines are doing or for airlines looking to accelerate their subscription strategy, Custom Travel Solutions provides the underlying platform to make it happen.
We help brands:
- Launch their white-labeled travel subscription portals
- Bundle hotels, resorts, flights, a concierge, and transfers under one branded experience
- Enable loyalty tiering, dynamic pricing, and member-only travel deals.
- Maintain complete control over user data, engagement, and revenue.
Whether you’re a membership organization, a lifestyle brand, or a transportation company looking to expand, subscription travel benefits are now one of the most effective ways to deepen loyalty and monetize engagement.
Final Thoughts
Airline subscription programs are no longer experimental; they’re becoming essential. Legacy carriers are cautiously adding subscription elements to enhance loyalty. Low-cost airlines are fully embracing the model, using it to attract and retain customers with transparent, repeatable value.
The brands that succeed won’t be the ones offering the most points. They’ll be the ones providing the clearest value, the smoothest experiences, and the simplest decisions for travelers who want control, not complexity.
