A coalition of airlines and planemakers, led by Airlines for America, has expressed grave concerns to senators regarding proposed credit card legislation. The amendment could jeopardize rewards programs, which are crucial for generating revenue, thus contracting airline activity and job opportunities in the industry. Airlines such as United, American, and Southwest along with manufacturers like Boeing and Airbus argue that the bill, designed to lower swipe fees and enhance competition, could disrupt a system that generates significant economic activity—$25 billion in 2023 from 31 million American reward cardholders.
"A lot of people call airlines credit card companies with wings," TJ Dunn, a points guru, commented, highlighting the vital role that credit card partnerships play for airlines.
The letter warns that the proposed amendment could lead airlines to stop offering rewards credit cards, directly impacting their revenue and reducing airline activity and jobs.
Research indicates that over 31 million Americans have airline travel reward cards which contributed to around $25 billion in economic activity in 2023.
"Americans value and enjoy credit card rewards programs because they reward consumers for dollars that they would be spending no matter what," the letter states.
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