Airlines fight bill on credit card fees!

Airlines fight bill on credit card fees!

Discussion over a new bill that would lower Visa and Mastercard fees is gaining momentum as major airlines and aircraft manufacturers vehemently oppose the changes. Signed by leading companies such as American Airlines, United Airlines, Southwest Airlines, Boeing, Airbus, RTX and GE Aerospace, a letter is addressed to Senators Dick Durbin and Roger Marshall, who introduced the bill. These companies argue that the bill could have a potentially devastating impact on the aviation and tourism sectors by jeopardizing the most popular rewards credit cards that offer airline miles and other perks to consumers.

A key concern for airlines is concern about the possible financial consequences. Annually, these companies generate billions of dollars in fees from branded credit cards. In his argument, Senator Durbin referred to the airline industries' economic dependence on these fees, describing the airlines as "credit card companies that own some planes."

Consequences of the draft law

The airlines' fears are based on the idea that the bill could seriously jeopardize the availability of rewards credit cards. According to airlines, passing the bill would save $15 billion in fees, which at first glance sounds beneficial. Still, this could result in fewer consumers participating in the loyalty programs that are critical to airlines. More than 31 million Americans currently own air travel rewards cards, and approximately 57% of frequent flyer miles and points spent in 2023 will come from airline credit card programs.

The impact of such a regulation could also be drastic: almost 16 million domestic air trips were made possible in 2023 through points collected by airlines. The airlines' concern is that this could lead to a significant decline in air travel. In a context where the travel industry is recovering from the aftermath of the pandemic, this would be another setback for the tourism sector.

Background information and political dynamics

The bill is not new; A similar draft was already rejected in 2023, but is currently under consideration to possibly be linked to a law on cryptocurrencies. Pressure on airlines has been increasing, especially since the Biden administration's Transportation Department launched an investigation into unfair airline practices in 2022. American airlines appear to have little faith in positive regulation, especially since Delta, United and American's loyalty programs were each valued at over $20 billion in 2023.

The clock is ticking for the airlines as they try to maintain their position. Euronext Paris reported that the market closed at 5:35 p.m. on June 2, 2025, with Boeing closing at an after-hours price of EUR 162.58, up 0.31%. Whether these economic movements will be influenced by political decisions remains to be seen.

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