March 13, 2026 — Credit-card cash reshapes US airline loyalty programs and profits, according to a Reuters report detailing how major U.S. carriers Delta Air Lines, United Airlines and American Airlines are shifting revenue focus from ticket sales to co-branded credit card partnerships. Delta earned $8.2 billion in cash from American Express in 2025, comprising 14% of its adjusted operating revenue, while American reported $6.2 billion from co-brand partners.
Airlines sell frequent flyer miles to banks at a discount, which banks then distribute to credit card customers, fueling a business model where loyalty programs now drive substantial profits. This transformation, highlighted in Reuters’ article titled “Credit-card cash reshapes US airline loyalty — and profit”, underscores how credit-card cash reshapes US airline loyalty programs and profits amid volatile traditional revenue streams.
Recent Program Changes
United Airlines is overhauling its MileagePlus program effective April 2026, requiring co-branded credit cards to earn miles on basic economy tickets and offering cardholders discounts on award travel and higher earning rates, per Bloomberg coverage. American Airlines has halted miles accrual on basic economy fares, while Delta now counts American Express spending toward elite status qualification. These adjustments prioritize high-spending cardholders, as credit-card cash reshapes US airline loyalty programs and profits by favoring premium customers.
Growing Revenue Dependence
Loyalty revenue has surged, with Delta and American roughly doubling income from miles sold to card issuers over the past eight years, and United following closely, according to The Economist. A New York Times analysis notes these programs generated billions in 2025, becoming core to airline finances as carriers like U.S. majors often operate basic services at a loss without loyalty participation, per One Mile at a Time.
Accessibility Concerns and Risks
Critics warn that credit-card cash reshapes US airline loyalty programs and profits at the expense of average flyers, with reward redemption values halving since 2019 and miles harder to earn without cards. Political risks loom, including former President Trump’s proposed 10% cap on credit card interest rates, which could threaten program viability, as flagged in earlier Reuters reporting. Skift highlighted on X that loyalty programs represent 71% of U.S. airline enterprise value (X post), amplifying stakes.
Credit-card cash reshapes US airline loyalty programs and profits through these dynamics, drawing limited but pointed discussion on platforms like X regarding devaluations. For related context, see Aeronautics Online.
