By Micah Jonah, March 13, 2026
US airlines are increasingly relying on co-branded credit cards as a major revenue source, changing how loyalty programs reward travelers and reshaping airline profits.
United Airlines recently announced that starting April 2, 2026, members without a United credit card will earn only 3 miles per dollar spent, while cardholders earn at least 6 miles. Similarly, American Airlines no longer gives Advantage miles for basic economy tickets, and Delta Air Lines allows spending on its co-branded American Express cards to help qualify for elite status.
Banks pay billions annually for airline miles, sometimes matching or exceeding operating income. For example, in 2025, Delta received $8.2 billion from American Express, while American Airlines received $6.2 billion from co-brand partnerships with Citi. At Alaska Airlines, loyalty revenue made up 16% of total revenue.
This shift insulates airlines from fluctuations in ticket sales, especially as jet fuel costs rise due to Middle East conflicts. However, it also ties airline earnings to bank strategies and the credit cycle. Analysts warn that tighter bank lending or reductions in co-branded card marketing could affect airline profits within two to three quarters.
Political and regulatory pressures also pose risks. Proposed US legislation, including the Durbin-Marshall bill, could reduce interchange fees that fund rewards. President Donald Trump has suggested a one-year cap on credit-card interest rates at 10%, which airlines and banks warn may hurt loyalty programs.
Regulators are scrutinizing airline rewards programs, requesting information from major carriers, including American, Delta, Southwest, and United, to ensure transparency and fair customer practices. Critics say changes to earning and redemption values are often made without clear advance notice to travelers.
As the industry evolves, experts note that credit cards are no longer just an add-on but have become central to airline revenue, with the modern airline described as “a gigantic rewards program that just happens to fly airplanes.”
