### Aviation Industry Warns Senators: Proposed Credit Card Bill Could Harm Airline Loyalty Programs

Major players in the aviation sector, including airlines, labor unions, and aircraft manufacturers, have expressed serious concerns over a proposed credit card bill. Key industry figures such as United Airlines, American Airlines, Southwest Airlines, Airbus, and Boeing have all added their names to a letter sent to senators on Monday. This letter was orchestrated by the trade group Airlines for America and targets new legislation proposed by Senators Roger Marshall and Dick Durbin.

The controversial amendment, part of the crypto-focused GENIUS Act, aims to enhance competition among credit card providers and reduce swipe fees. Although supported by retailers like the National Retail Federation, it has faced strong opposition from financial institutions. Credit cards are integral to the airline industry's financial health. TJ Dunn, editor in chief at Prince of Travel, emphasized this by noting that many consider airlines to be "credit card companies with wings."

The letter underscores the significant economic impact of airline co-branded credit cards. According to Airlines for America's research, more than 31 million Americans held airline travel reward cards in 2023, driving approximately $25 billion in economic activity. Additionally, 57% of all frequent-flyer miles or points issued in 2023 came from the use of airline credit cards.

"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. It warns that the proposed Durbin-Marshall amendment could lead airlines to discontinue their rewards credit cards, something that might come as an "unpleasant surprise" to many consumers.

Various unions representing pilots, flight attendants, and Boeing workers have thrown their support behind the letter as well. They argue that diminishing loyalty programs would lead to fewer flights and a contraction in airline activity and jobs. The resulting loss of revenue, they say, would make it harder for airlines to meet current commitments to their workers and complicate future collective bargaining negotiations. Moreover, airlines would have less capital to invest in new aircraft.

Senator Durbin, on the other hand, has argued that the legislation would save merchants and consumers an estimated $15 billion annually, in contrast to the over $100 billion businesses spend on swipe fees each year.