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Silhouettes of passengers waiting at an airport
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flight club

A new pass to access American Airlines’ loyalty program will set you back $5,000

AA is doubling down on perks and partnerships, as the nonflying parts of the operation have become a billion-dollar business.

Tom Jones

If you’ve ever sat around at the departure gate waiting to get onto an American Airlines flight, eyeing priority boarding members with envy, we’ve got some news: you can now gain access to the carrier’s AAdvantage loyalty program at entry level… for a cool $5,000.

According to Travel Weekly, cash-flush fliers can skip the usual process required to obtain AAdvantage Gold status — notching 40,000 or more loyalty points by clocking air miles, using AA co-branded credit cards, or spending via their various partnership schemes — by paying the fee up front to enjoy perks such as “priority check-in and boarding, a free checked bag, complimentary preferred seat selections, upgrades when available within 24 hours of departure, and 40% accrual bonuses for miles and loyalty points.”

Loyalty bonus

Even before this new pay-to-play scheme, the airline’s loyalty program and its other activities that aren’t directly flying people or things around the world have become a billion-dollar part of its operations each quarter.

American Airlines’ other revenue chart
Sherwood News

Last year, American Airlines’ “Other” revenue accounted for some 7% of the company’s overall annual sales, or about $3.83 billion. For the first three quarters of 2025, the division, which is predominantly made up of marketing revenue from its loyalty program — or the money that American makes from selling mileage credits to co-branded credit card merchants and other AAdvantage partners — has consistently pulled in revenues that hover around or above the $1 billion mark.

Of course, that’s just the direct, measurable impact of the program. What’s not captured is the intangible value, that which makes someone choose American over another airline just because they have some status or points with the carrier already.

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$35.4B

The tariffs imposed by the Trump administration have cost automakers at least $35.4 billion since the start of 2025, according to a new analysis by Automotive News.

That total will continue to climb this year, since the Supreme Court’s February tariff ruling largely leaves the 25% levy on vehicles and auto parts untouched.

Toyota has taken the biggest hit, projecting more than $9 billion in tariff costs in its fiscal year ending this month, while Detroit’s big three automakers — Ford, GM, and Stellantis — were hit with a combined $6.5 billion tariff charge in 2025.

In the fourth quarter, automakers sold about 8% fewer imported vehicles in the US compared to the same period a year ago, per the Automotive News Research & Data Center.

Tariff charges come at a rough time for legacy carmakers, which are also scaling back EV plans following the Trump administration’s elimination of tax credits and fuel standard goals. According to Automotive News, the cost of EV write-downs and restructuring is, so far, nearly $70 billion.

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Universal will now guarantee a minimum of five weekends before a movie hits home screens — which might help theater companies like AMC finally get back to profitability.

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Rani Molla

How Tesla quietly wound up owning a small piece of SpaceX

Tesla is converting its recent $2 billion investment in Elon Musk’s AI company, xAI, into a small ownership stake in SpaceX — just months before the rocket maker’s highly anticipated IPO.

Here’s what happened: Tesla announced its xAI investment in late January, after a shareholder proposal to invest fell short last year. Several days later, xAI merged with SpaceX. All three companies are headed by Musk.

Now, regulatory filings with the Federal Trade Commission show Tesla converting that investment into a small stake in SpaceX, formalizing the financial link between the companies ahead of the rocket maker’s IPO. SpaceX is expected to go public this year at a valuation some speculate could top $1.75 trillion, potentially making it the biggest company to ever go public. (The current record holder, Saudi Aramco, went public at a more than $1.7 trillion valuation in 2020.)

While the size of Tesla’s stake wasn’t available, Bloomberg reports that the investment would equate to ownership of less than 1%.

While SpaceX and Tesla have engaged in related-party transactions over the years, Tesla had not previously disclosed an equity investment in SpaceX.

Now, regulatory filings with the Federal Trade Commission show Tesla converting that investment into a small stake in SpaceX, formalizing the financial link between the companies ahead of the rocket maker’s IPO. SpaceX is expected to go public this year at a valuation some speculate could top $1.75 trillion, potentially making it the biggest company to ever go public. (The current record holder, Saudi Aramco, went public at a more than $1.7 trillion valuation in 2020.)

While the size of Tesla’s stake wasn’t available, Bloomberg reports that the investment would equate to ownership of less than 1%.

While SpaceX and Tesla have engaged in related-party transactions over the years, Tesla had not previously disclosed an equity investment in SpaceX.

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