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Airlines Warn: Credit Card Rewards Programs at Risk Due to Proposed Legislation
Airlines In The United States,including American Airlines,United,and Southwest,are sounding the alarm about a new bill that could drastically alter credit card rewards programs tied to Visa and Mastercard.
this Proposed Legislation, championed by Senators dick Durbin and Roger Marshall, aims to lower transaction fees for payment networks. Though, airlines fear this could lead to the end of popular mile programs used by millions for travel.
airline Opposition to Commission Cuts
American Airlines,United Airlines,and Southwest Airlines,along with industry giants Boeing,Airbus,RTX,and GE Aerospace,have jointly voiced strong opposition to the proposed legislation.
in A Letter To The Senate, the companies warned of devastating consequences for frequent travelers and the broader tourism sector if the regulations are enacted.
Did You Know? In 2023, 57% of all airline miles and frequent flyer points were earned through co-branded airline credit cards.
Impact On Travelers: What Could Change?
If This Bill Becomes Law,consumers could see notable changes to their credit card rewards.
- cards That Accumulate miles Or Points Might Disappear.
- Opportunities To Redeem Free Trips Could Decrease.
- exclusive Benefits For Frequent travelers Could Be Reduced.
- Competition Among Airlines For Loyal Customers could Diminish.
Airlines also caution that the new rules would negatively affect loyalty programs, a key incentive for millions of Americans who choose airlines based on accumulated benefits.
This Isn’t The First Attempt to pass such legislation. A similar effort was blocked in 2023 due to pressure from airlines and the financial sector. A potential strategy involves linking it to another bill, such as cryptocurrency regulation, to increase its chances of approval.
Potential Benefits Of The Proposed Legislation
While airlines are concerned about the potential downsides, proponents of the bill argue it could lead to lower prices for consumers by reducing merchant fees.
This could Also Level The Playing Field for smaller businesses that are disproportionately affected by high transaction costs.
Pro Tip: Stay informed about legislative developments and consider contacting your representatives to voice your opinion on this issue.
Airlines Credit Card Rewards Programs: By The Numbers
| Airline | Program Name | Key Benefit |
|---|---|---|
| American Airlines | AAdvantage | Priority boarding |
| United Airlines | MileagePlus | Free checked bags |
| Southwest Airlines | Rapid Rewards | Companion pass |
The Future Of Credit Card Rewards Programs hangs in the balance as this legislation makes its way through Congress.
How Would The Loss Of Airline Miles impact your travel plans? Do you think this legislation will ultimately benefit consumers?
The Evolution Of Travel Rewards Programs
Travel Rewards Programs have evolved significantly as their inception in the early 1
