March 13, 2026 — United States U.S. airlines including Delta Air Lines, American Airlines and United Airlines are shifting loyalty programs to prioritize revenue from co-branded credit cards, often surpassing flight profits, according to a Reuters investigation published today. Banks pay billions annually for miles, providing stable income amid volatile fuel costs and demand.
In 2025, Delta received $8.2 billion from American Express, equaling 14% of its adjusted operating revenue and 1.4 times adjusted operating income. American Airlines reported $6.2 billion from partners, about four times its adjusted operating income. This credit-card cash now forms a core profitability pillar, with airlines rewriting rules to favor card spending over basic fares.
“The modern airline is a gigantic rewards program that just happens to fly airplanes,” said John Breyault, vice president of public policy at the National Consumers League. (Reuters)
Devaluation of Flight-Earned Miles
Airlines have devalued miles earned from flying. Reward payback values have fallen about half since 2019. United Airlines will award 3 miles per dollar on flights for non-cardholders starting April 2, versus at least 6 for cardholders, and requires a card for basic economy miles. American Airlines ended miles and Loyalty Points on basic economy tickets. Delta ties elite status partly to Amex spending.
“The value provided to frequent-flyer members has decreased over time,” said Jay Sorensen, head of consultancy IdeaWorks. (Reuters)
American Airlines Expands AAdvantage Redemptions
On March 12, American Airlines announced members can redeem AAdvantage miles for gift cards valued at $10 to $500 from retailers like Sephora, Nike and Best Buy via aadvantagegiftcards.com. The update adds flexibility for members earning miles primarily through cards rather than flights, valued at around 0.7 cents per mile.
“The AAdvantage® program offers customers more value for their miles than any other U.S. airline, and our members are looking for more flexibility in how they redeem them,” said Scott Long, American’s Senior Vice President of AAdvantage®. (AA Newsroom)
Broader Industry Context
Coverage from TravelPulse and TheStreet hailed the AA change as beneficial for non-elite travelers. Upgraded Points noted the low redemption value. Prior reports, including NYT and Economist, highlighted loyalty programs as central to airline business models amid rising costs.
