For years, the fate of American airlines has depended on ticket prices, fuel costs, and the number of passengers filling their cabins. Moreover, an increasing share of their revenue comes from co-branded credit cards, and this is increasingly reflected in the way loyalty programs reward travelers.
United Airlines announced last month that starting April 2, 2026, regular members without the card will earn only 3 miles for every dollar spent on eligible flights, while card holders will earn at least 6. The airline also stated that regular members will need a United card to earn miles on economy-class tickets.
Meanwhile, American Airlines has stopped offering AAdvantage miles and award points for economy-class tickets, and Delta Air Lines is allowing customers to use their American Express card expenses with the same signage to help them achieve elite status.
A Reuters review of the financial reports of major US airlines from 2021 to 2025 reveals the reason. Banks pay airlines billions of dollars annually for miles and other payments related to their loyalty programs—amounts that in some years rival operating income.
These funds are less tied to ticket sales, a distinction that takes on new significance as the Middle East conflict leads to a sharp increase in the cost of jet fuel and squeezes airlines’ profit margins. However, this also makes airlines more vulnerable to the strategies of banks, terms of credit, and policy decisions that could change the way rewards programs are funded.
Lower prices, smaller rewards
Airlines are rewriting the rules of their loyalty programs to emphasize credit card spending, making it harder to collect points on cheaper flights.
“The benefits offered to members of the frequent flyer program have decreased over time,” said Jay Sorensen, head of the consulting firm IdeaWorks. According to the 2025 U.S. Rewards Program Report, the “yield” of rewards—the ratio of the monetary value of tickets to the value of rewards—has decreased by about half since 2019, as several airlines have reduced or eliminated the ability to collect miles on their cheapest tickets.
David Robertson of Nilson Report said that if redeeming miles seems impossible, some consumers may abandon their airline cards, which could put pressure on banks that buy miles in bulk.
Airlines reject the idea that cards replace flights as the main route to rewards. Kevin Scott, head of the loyalty department at Alaska Airlines, said that those who don’t have a card “continue to earn substantial value through flights.” The co-branded cards, he said, are intended to enhance the program and not replace traditional profit.
Billions are paid by banks to airlines
Airlines report payments from partner credit card companies differently, but the amounts are high across the industry.
Delta received $8.2 billion in cash from American Express in 2025 – about 14% of adjusted operating income and about 1.4 times its adjusted operating income. A Delta representative said that some of this money is recognized as direct income, while some is paid when the miles are redeemed.
American reported $6.2 billion in 2025 from co-brand program partners and other partners, an amount that is approximately four times its adjusted operating income. The airline expects the new co-brand credit card agreement with Citi will help close the profit gap with Delta and United.
In Alaska, customer reward revenue accounted for about 16% of total revenue, and its financial director, Shane Tackett, told Reuters that the collaboration between brands helps stabilize results amid fluctuations in demand.
Regulatory control
However, airline loyalty programs have been put under regulatory control. A representative of the US Department of Transportation said that the department asked American, Delta, Southwest, and United for information about their loyalty programs and rewards policies in 2024. All four responded and their answers are being reviewed.
John Breyault, vice president of public policy for the National Consumers League, said more transparency is needed because airlines can change their point accumulation and redemption values without clearly informing customers in advance.
“A modern airline is a giant rewards program that just happens to fly,” said Mr. Breyault.
