Credit-card cash is reshaping US airline loyalty – and profit

For years, the fortunes of US airlines have been dictated by fares, fuel bills and how many passengers fill their cabins.

- RAJESH KUMAR SINGH

Now, a growing share of their cash comes from co-branded credit cards, and that is increasingly showing up in how loyalty programmes reward travellers.United Airlines said last month that, starting April 2, regular members without its card will earn only 3 miles for every dollar spent on eligible flights, while cardholders will earn at least 6 miles. The airline also said regular members will need a qualifying United card to earn miles on basic economy tickets.

American Airlines has stopped giving AAdvantage miles and Loyalty Points on basic economy tickets. Delta Air Lines, meanwhile, lets customers use spending on its co-branded American Express cards to help qualify for elite status.

A Reuters review of filings by major US airlines from 2021 through 2025 shows why. Banks pay carriers billions of dollars a year for miles and other payments tied to their loyalty programmes — in some years rivalling operating income. That money is less tied to ticket sales, a distinction with fresh relevance as the Middle East conflict sends jet-fuel costs sharply higher and squeezes airline margins.

However, it also leaves airlines more exposed to bank strategy, credit conditions and political decisions that could change how rewards schemes are funded.

Airlines are rewriting loyalty-programme rules to emphasise credit-card spending, making rewards harder to earn on the lowest fares.