March 14, 2026 — Chicago
Major U.S. airlines including Delta Air Lines, American Airlines and United Airlines are restructuring loyalty programs to favor co-branded credit card spending over flight miles, as banks pay billions annually for miles and rewards, according to a Reuters investigation titled “Credit card cash reshapes US airline loyalty — and profit” published Friday. The shift stabilizes airline profits amid volatile fuel costs but has sparked consumer concerns over devalued rewards and prompted regulatory scrutiny from the U.S. Department of Transportation.
In 2025, Delta received $8.2 billion in cash from American Express, 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 including a new deal with Citi, roughly four times its adjusted operating income. At Alaska Airlines, loyalty revenue accounted for about 16% of total revenue.
Loyalty Program Overhauls
United Airlines announced last month that starting April 2, 2026, non-cardholders will earn only 3 miles per dollar spent on eligible flights, while cardholders earn at least 6 miles, and a qualifying card is required for miles on basic economy tickets, per Reuters. American has eliminated AAdvantage miles and Loyalty Points on basic economy tickets. Delta allows co-branded Amex spending to count toward elite status.
Airlines emphasize cards enhance programs without replacing flying. “Non-cardholders continue to earn meaningful value through flying,” said Alaska loyalty chief Kevin Scott. However, IdeaWorks consultancy head Jay Sorensen noted:
The value provided to frequent-flyer members has decreased over time.
Its 2025 report found reward payback has halved since 2019 as airlines cut mileage on cheapest fares.
Revenue Stability vs. Risks
The payments provide a buffer against fuel spikes from the Middle East conflict, less tied to ticket sales. Alaska CFO Shane Tackett said the partnership stabilizes results through demand swings. Yet payments analyst Brian Riley warned banks in downturns cut marketing, impacting airlines within quarters.
The Reuters piece, echoing its title Credit card cash reshapes US airline loyalty — and profit, highlights exposure to bank strategies and credit conditions.
Regulatory and Political Pressure
The DOT requested information on rewards from American, Delta, Southwest and United in 2024; responses are under review. National Consumers League’s John Breyault called for better disclosure:
The modern airline is a gigantic rewards program that just happens to fly airplanes.
Lawmakers eye the Durbin-Marshall bill for payment routing competition, which Airlines for America says could harm rewards. President Trump’s proposed 10% credit card interest rate cap poses risks, per industry warnings.
(Image: Major U.S. carriers via Aeronautics Online)
Reprints and Reactions
The story appeared on Yahoo Finance and Aeronautics Online, framing Credit card cash reshapes US airline loyalty — and profit as bullish for stocks like DAL and AAL. On X, @TheSaturdayCall shared it positively for $JETS here, amid limited discussion.
