Trump's Interest Rate Cap Proposal Could Ground Airline Loyalty Profits

President Trump's proposal to cap credit card interest rates at 10% could significantly impact airline loyalty programs' profitability. Industry experts express concerns about how these limitations could affect consumer credit access and disrupt the financial dynamics between airlines and credit card partners.

President Donald Trump's proposal to introduce a credit card interest rate cap at 10% might pose substantial challenges to U.S. airlines' loyalty programs, esteemed industry advisors announced at the Airline Economics conference in Dublin.

Loyalty programs have become significant financial pillars for airlines, with millions of dollars collected through agreements with credit card-issuing banks. The proposed cap threatens these lucrative arrangements, as a reduction in profit margins could alter the value of loyalty miles.

Critics, including banks such as JPMorgan Chase, have described the plan as economically catastrophic. The potential cap's legal path remains unclear, requiring congressional approval, and has faced mounting skepticism about its feasibility.

(With inputs from agencies.)