Anyone who has heard a speech about credit cards on board or looked at a billboard in an airport knows the extent to which airlines have leaned toward credit cards.
But one of America’s largest airlines just took things to a whole new level.
This week, United Airlines arguably went further than any competitoruntil now, by drawing a distinction between customers who carry one of its cards and those who do not.
Starting in April, United travelers who do not have one of the airline’s co-branded cards They will earn fewer miles than today.
Members who do having a card in your wallet will win further than what they do today.
United is also sweetening the deal for cardholders with automatic discounts on award prices and more access to the airline’s cheapest “savings” award space. That means cardholders won’t just earn extra miles — they’ll have access to the best mileage deals when they book a flight.
Non-cardholders will not.
United’s reasoning?
“We just know that when someone has a credit card, they are more valuable to United,” Jill Doyle, general manager of the airline’s MileagePlus program, told TPG on Friday, explaining the company’s thinking. “It was really just a way to kind of double down on that continued evolution of really rewarding customers who are bringing value to United.”
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Fold cards like never before
Airlines offering elite benefits to customers who carry a credit card is, of course, nothing new.
For years, cards have given frequent travelers a way to earn miles on their everyday spending, while also getting some travel freebies like complimentary bags and gifts. access to the living room.
And over the last decade, card spending has become almost as integral to gaining status as racking up hours in the sky.
But until this week, we hadn’t seen an airline go as far as United in using both the proverbial incentive and punishment to pressure travelers into adding a card to their wallet.
When April comes, you will not only win further miles and get better offers if you carry a United card, that’s it, yes Noyou will be demonstrably worse less than today… even if you already have Premier Elite status.
Also, if you do not have elite status or card, now you will earn zero miles on your flight by booking one of the airline’s cheapest basic economy fares.
MileagePlus members who prefer not to add a United card to their wallet will undoubtedly lose ground with these changes.
And if that’s frustrating to you: “I totally understand the feeling,” Doyle acknowledged.
“The reality is that the ecosystem has changed in recent years,” he said, alluding to the multitude of travel credit cards in today’s market, creating a competitive landscape.
“We’re really trying to match value with value,” Doyle added. “And it’s valuable for our MileagePlus members to have a card.”
Give customers reasons to click “apply”
Another detail that’s hard not to notice: United has also carefully designed its mileage incentives so that members feel the urge to carry a card. and pursue status.
For example, co-branded cardholders will receive at least 10% off award flights in the future. Cardholders who are also Premier members will get at least 15% off.
The reality? Even if you are a semi-frequent United player who is willing to play their game, the changes revealed this week certainly add value by carrying one of the cards in their lineup, ranging from one without annual fee to another that comes with access to the United Club lounge – not to mention a new debit card.
But if you’re someone who already has plenty of other options in your wallet, it’s obviously a calculation you’ll have to make based on your own travel and spending habits.
TPG’s opinion: Best United Credit Cards
The business of flying… and credit cards
Not all of United’s changes last week were unprecedented.
Delta Air Lines already offers many of its credit card holders 15% discount on award flights. It also gave its cardholders strong status boosters after its own wholesale loyalty changes back in 2023.
When it comes to basic economics, Delta and American Airlines have stricter mileage policies than what United just announced.
And United’s tactics this week evoke some (recent) memories of Southwest Airlines, which over the past year made radical changes to your seating policy — while maintaining that his Renewed credit card and status benefits. would allow frequent travelers to largely maintain the status quo.
Zooming out, all of this is the latest reminder of how critical credit card wallets have become to the airline business model of 2026.
Construction generates billions of dollars annually across the industry and regularly invites jokes about airlines being de facto banks that fly planes, jokes that surely won’t end with United’s recent actions.
Delta earned $8 billion last year through its alliance with American Express, a partnership believed to be the most lucrative in the industry.
And in an industry where airlines often emulate each other in making policy changes, one wonders how many airlines will soon follow United’s tougher approach to courting cardholders.
In a nutshell
As for the Chicago-based airline, these changes came after months of United executives leaving breadcrumbs about a major restructuring in the airline’s loyalty program, and alluding to new ways I could find to generate more revenue through your existing card partnership with Chase.
Step one, it seems? Push more members to click “apply”.
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