Airlines Generate More Profit From Credit Card Partnerships Than Flight Operations

Airlines are earning significant revenue from their partnerships with credit card companies, and carriers are also reshaping how travelers can earn rewards, according to a new report from Reuters.

Credit card issuers that have found success linking rewards programs with travel benefits should reevaluate those bonus systems on a regular basis to ensure they’re getting the best return on their investment.

And the investment certain issuers are making is substantial. Reuters examined filings by leading U.S. airlines from 2021 through 2025 and discovered that banks pay billions of dollars per year to airline companies for miles and other loyalty program elements. 

In some instances, the money an airline receives from a bank can be more than the carrier’s operating income. For example, Delta took in more than $8 billion from American Express last year. That figure is close to 1.4 times the airline’s adjusted operating income, Reuters reported.

American Airlines and Citi recently expanded their co-branded card partnership.

In 2025, American Airlines received more than $6 billion in payments — or approximately four times the company’s adjusted operating income — from partners including those with whom the carrier has co-branded relationships. 

American Airlines moved to extend its card partnership with Citi a little over a year ago.

“Deepening our relationship with Citi and expanding our co-branded card portfolio will further the growth of our industry-leading loyalty program,” Robert Isom, CEO of American Airlines, said in the company’s earnings call for the third quarter of 2025.

Certain airlines have been redesigning their loyalty programs to further drive credit card spending. Beginning in April, United Airlines customers who don’t have the carrier’s credit card will only earn three miles for every one dollar they spend on eligible flights.

But United cardholders will earn a minimum of six miles on each dollar they spend on eligible flights.

Issuers typically benefit when cardholders use their credit cards to make more big-ticket purchases. A recent report highlights that the average cost of domestic round-trip airfare in 2024 topped $400. But card companies must keep a close eye on potential changes on the regulatory front that stand to impact card rewards programs.

The average cost of domestic round-trip airfare topped $400 in 2024.

Credit card rewards continue to be extremely popular with U.S. consumers. A recent survey from the American Bankers Association indicates that — of people who own at least one credit card that comes with rewards — 90% say they value those rewards programs.

But initiatives such as the Credit Card Competition Act (CCCA) threaten to weaken or eliminate the value of credit card rewards.

Airlines for America, a trade association for leading U.S. airlines, wrote in a post on its website that the CCCA would eliminate consumer choice when it comes to routing transactions.

“What’s worse is that merchants wouldn’t have to pass on to consumers any savings from choosing a different, discount network, but rewards programs would likely be eliminated,” the association explained.