Airlines Under Pressure: The Impact of Proposed Credit Card Interest Cap

U.S. airlines face potential economic challenges as President Trump's proposed 10% cap on credit card interest rates could impact loyalty programs and industry revenues. Airline industry leaders express concerns over reduced passenger numbers and aircraft purchases, while unions and civil rights groups support the legislation.

In a bold move, President Donald Trump has suggested capping credit card interest rates at 10%, sparking concerns within the airline industry about potential financial ramifications.

Airlines for America CEO Chris Sununu highlighted the possible economic impacts, stating the cap could significantly alter passenger numbers and aircraft acquisitions.

While unions and civil rights groups endorse the proposal, the aviation sector warns of decreased revenues from loyalty programs and increased financial strain.

(With inputs from agencies.)