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Senators probe airlines’ credit‑card partnerships, hub dominance and effects on competition

Homeland Security and Governmental Affairs: Senate Committee, Permanent Subcommittee on Investigations · December 4, 2024
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Summary

Lawmakers questioned carriers about large co‑branded credit‑card revenues, hub and slot dominance, and how rewards programs and bank partnerships can entrench legacy carriers and limit competition; witnesses gave revenue estimates and urged a closer look at market power.

WASHINGTON — Senators used testimony on Dec. 4 to spotlight how loyalty and co‑branded credit‑card programs and airport hub control can concentrate market power and blunt competition.

Senator Roger Marshall asked witnesses about revenue from rewards programs. Andrew Nocella (United) said the airline takes in more than $3,000,000,000 in revenue from its rewards program; Steven Johnson (American) said…

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