Loyalty Programs Are Keeping America's Airlines Aloft

American airlines have transformed into financial services companies that happen to fly planes as loyalty programs now constitute their primary profit engine rather than passenger transport. Delta, American, Southwest, and United all operated their passenger services at a loss in 2024 while generating $14 billion in combined operating profits from credit card partnerships.

Delta received $2.1 billion from American Express in Q2 2025 -- exactly matching its total operating profit -- while the airline's passenger operations alone would have posted a loss. These loyalty programs command valuations in the tens of billions, sometimes exceeding the airlines' total equity value, with Delta reporting 1% of U.S. GDP flows through its co-branded cards. Customers can now reach American Airlines' top loyalty tier without boarding a single flight.

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