New legislation could strip passengers of frequent flyer rewards, airlines warn
June 7, 2025
Frequent flyers could face challenges due to the proposed Protect Your Points Act, which threatens airline loyalty programs. Major U.S. airlines, including United, American, and Southwest, along with labor unions and manufacturers, have warned that the new legislation could harm the aviation industry. The bill, introduced by Senators Roger Marshall and Dick Durbin, aims to regulate credit card fees and increase competition among card providers. Airlines argue that reduced fees could make it nearly impossible to offer travel rewards, as many rewards cards charge annual fees.
The legislation, which amends the GENIUS Act, could reduce air travel and tourism, according to airlines. They point to a 2010 law regulating debit card fees, which led to the near elimination of debit card rewards. Airlines fear that similar changes to credit card fees could harm loyalty programs, generating significant economic activity. In 2023, airline rewards cards accounted for 57% of frequent flyer points, with major loyalty programs valued at over $20 billion.
Unions representing pilots, flight attendants, and Boeing workers argue that eliminating or reducing loyalty programs could reduce airline activity and jobs. The legislation could also make travel less accessible, as airlines would have less revenue to invest in new planes and services. While some support the bill for benefiting small businesses, others warn it may disrupt popular rewards programs valued by millions of Americans.
News Sources: the-sun.com
