Code-sharing

Code-sharing is a business agreement in the aviation industry where two or more airlines share the same flight, but each airline markets and sells the flight under its own flight number and airline designator. This allows airlines to expand their route networks without actually operating the flights themselves, improving passenger convenience and operational efficiency by leveraging existing capacity. The revenue generated from the flight is usually shared between the participating airlines based on a pre-determined agreement. This benefits the airlines by increasing their market reach and providing passengers with more flight options.

Code-sharing meaning with examples

• Airline A and Airline B have a code-sharing agreement. Passengers can book a flight from New York to London, which is sold by Airline A (with an 'AA' flight number), but operated by Airline B. This allows Airline A to offer London flights without actually owning the aircraft or having its own staff operating the route.
• Due to a code-sharing agreement, a traveler flying from a smaller city can easily connect to an international flight. They purchase one ticket through the originating airline, and the code-shared flight seamlessly connects them to their destination, operated by a larger airline.
• Code-sharing enables airlines to fill flights more efficiently. By combining their sales efforts, airlines can maximize seat occupancy, increasing their overall revenue and reducing the risk of flying with empty seats. This is particularly beneficial on routes with lower demand.
• Loyalty programs often extend benefits to code-shared flights. Frequent flyer miles can be earned and redeemed on flights operated by a code-sharing partner, offering passengers increased value and flexibility in their travel plans, thereby enhancing customer loyalty.