Another wave of hotel strikes unfurled in two major New England cities Tuesday, while one in Southern California continues to grip a Hilton-affiliated property.
11.09.2024 - 19:28 / thepointsguy.com / Scott Kirby
United Airlines CEO Scott Kirby warned Tuesday that legislative meddling is a threat to popular airline loyalty programs.
"The one risk to [loyalty] programs are legislative initiatives that I'm sure are well intentioned but would just be bad policy, particularly the Credit Card Competition Act," he said at the U.S. Chamber of Commerce's 2024 Global Aerospace Summit in Washington, D.C.
The Credit Card Competition Act is a bipartisan bill that, if passed, would give merchants more choice in which credit card network processes their payments. Proponents argue that it would lower transaction costs for merchants, while opponents argue that those same beneficiaries would have little incentive to pass the savings on to consumers.
And many worry that credit card companies could roll back rewards programs — like those that provide airline loyalty miles — if transaction revenue dropped.
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The bill was introduced in the Senate in June 2023 but remains in committee.
Kirby and others have previously spoken out against the legislation, citing the popularity of airline loyalty programs.
"Customers love these programs," Kirby said Tuesday. He added that this summer, 3 million travelers flew on tickets paid for with miles from United's MileagePlus loyalty program.
What Kirby did not mention was the fact that United's credit card agreements and MileagePlus program are extremely lucrative for the carrier. Other operating revenue, which includes MileagePlus and credit card agreements, was $892 million in the second quarter, or 6% of total revenue.
Mile watch: DOT launches formal probe of big airline frequent flyer programs
The U.S. Department of Transportation on Sept. 5 launched an inquiry into American Airlines' AAdvantage, Delta Air Lines' SkyMiles, Southwest Airlines' Rapid Rewards and United's MileagePlus loyalty programs to protect "rewards customers from potential unfair, deceptive, or anticompetitive practices."
Kirby on Tuesday was asked repeatedly about the probe but used his responses to pivot to the popularity of airline loyalty programs and the risk of legislative meddling.
"The affinity, the loyalty people have for these programs is incredible," he said.
United and other airlines have directed any inquiries on the probe to their trade organization, Airlines for America.
Value check: Are airline credit cards worth it anymore?
The Federal Aviation Administration in August moved control of air traffic at Newark Liberty International Airport (EWR) — a major United hub — to its Philadelphia center from its traditional home at the agency's center on Long Island, New York (known as "N90"). The purpose of the move was to
Another wave of hotel strikes unfurled in two major New England cities Tuesday, while one in Southern California continues to grip a Hilton-affiliated property.
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The Australian state of Victoria this week moved to give its local governments the power to limit short-term rentals in their regions.
Whether it’s his strong stance on ultra-low-cost carriers or his brutally honest criticism on the current state of Boeing, United Airlines CEO Scott Kirby has become one of the most influential — and candid — voices in the airline industry.
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