March 13, 2026 — Major U.S. airlines including United, American, Delta, Alaska and Southwest are overhauling loyalty programs to prioritize credit-card spending over flying activity, generating billions in stable cash from bank partnerships that buffer profits against ticket volatility and rising fuel costs.
A Reuters investigation titled “Credit-Card Cash Reshapes US Airline Loyalty — and Profit,” published by Rajesh Kumar Singh, details how Delta Air Lines received $8.2 billion from American Express in 2025, equivalent to 14% of its adjusted operating revenue and 1.4 times its adjusted operating income. American Airlines reported $6.2 billion from co-brand partners, roughly four times its adjusted operating income the same year.
Loyalty Program Changes
United Airlines will implement changes on April 2, 2026, under which regular members without a United credit card earn 3 miles per dollar spent on eligible flights, while cardholders earn at least 6 miles. Basic economy tickets require a qualifying United card to earn miles. American Airlines has eliminated AAdvantage miles and Loyalty Points on basic economy fares. Delta allows co-branded American Express spending to count toward elite status qualification.
Alaska Airlines derives about 16% of total revenue from loyalty programs, with executives stating cards enhance rather than replace flying rewards. Airlines maintain these shifts push consumers toward cards without diminishing value for flyers.
“The value provided to frequent-flyer members has decreased over time.”
— Jay Sorensen, head of IdeaWorks consultancy
Revenue Stability and Risks
The model provides profit stability amid higher jet fuel prices from Middle East conflicts, as loyalty revenue is less tied to ticket sales. However, it exposes airlines to bank credit cycles and strategies. Payments analyst Brian Riley noted banks may tighten lending in downturns, impacting airline earnings within two to three quarters.
“The modern airline is a gigantic rewards program that just happens to fly airplanes.”
— John Breyault, National Consumers League
Regulatory and Political Scrutiny
The U.S. Department of Transportation requested data on rewards programs from American, Delta, Southwest and United in 2024, with responses under review. The bipartisan Durbin-Marshall bill aims to boost payment network competition, potentially cutting interchange fees and rewards, a concern raised by Airlines for America. President Donald Trump’s proposed one-year 10% cap on credit card interest rates could also threaten programs, according to industry groups.
The story, syndicated to U.S. News and others like Marketscreener, echoes in a Fine Day Radio report highlighting fuel pressures.
Early social media reactions focus on loyalty devaluations, including a viral X thread on Southwest’s point inflation and users ditching cards (X post), alongside posts on program valuations (Skift) and American’s redemptions (TheStreet).
