New Trends in the Airline Industry

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New Trends in the Airline Industry

These days, major airlines in the U.S. are reaping most of their profits from their loyalty programs, particularly through co-branded credit cards. While the big three airlines have generated billions annually from these programs, they still see significant growth potential. As a result, many of their current decisions are aimed at increasing revenue from credit cards.

Take free Wi-Fi on flights, for example—its primary purpose is to encourage sign-ups for loyalty programs, allowing airlines to market to their members. Similarly, launching new destinations is intended to draw interest in loyalty programs by creating appealing places for members to redeem their points.

Changes at United MileagePlus

Recently, there have been major announcements regarding the United MileagePlus program, centered around one key goal—encouraging customers to sign up for United's credit card. These changes favor those who hold the co-branded credit card and disadvantage those who do not—it’s as simple as that.

Starting today, these changes will take effect. According to United's Chief Commercial Officer, Andrew Nocella, "The best way to benefit from the MileagePlus program is to become a member, and the best way to get the most value from the program is to own our credit or debit card. MileagePlus is designed to reward loyalty to United, and our best customers deserve the best benefits in the industry."

Changes to Earning Points

As of April 2, 2026, United MileagePlus will alter the way points are accumulated. Points will still be based on ticket prices, but the structure will change. Previously, the number of points MileagePlus members earned was based on their elite status and was not related to whether they held a United credit card. However, that will no longer be the case.

Main cardholders of the United MileagePlus credit card will start earning more points when purchasing standard tickets and will receive additional points when paying for flights with eligible cards. If you are a primary cardholder of the co-branded credit card, you will accumulate more points compared to those who don’t.

Challenges with Basic Economy Fares

In line with this, United will also restrict point accumulation for basic economy tickets. Under the new system, MileagePlus members without elite status must hold a co-branded credit card to earn points when flying on basic economy fares.

This means that if you do not have a co-branded credit card or are not at an elite status, basic economy tickets will not earn you any points.

Discounted Award Tickets for Cardholders

With these changes, members who hold the co-branded credit card will save at least 10% on every award flight they book, while those with Premier elite status and a credit card will save at least 15%. Primary cardholders will see these savings reflected on the United app and website, and soon, United will publicly display the reduced prices to encourage more people to sign up for the credit card.

More Award Seats for Cardholders

United will also offer more premium award seats for members holding the credit card. Currently, about one-third of flights with basic award tickets are exclusively available to credit cardholders and Premier elite members. This expansion will continue, with the 10-15% discount being applied concurrently.

Personal Thoughts on This Change

I’m not surprised to see this development from United, as it accurately reflects the general trend in the airline industry. Airlines have always sought to incentivize members who hold co-branded credit cards. In this case, United is choosing a somewhat reverse approach—at least in appearance—they are effectively penalizing those without a co-branded credit card by tightening their point-earning criteria.

While I’m not particularly fond of this trend, it’s fair to say it’s a smart move. Brand loyalists are highly likely to apply for the co-branded credit card, and this certainly creates motivation for them to do so as soon as possible.

Conclusion

United has just made significant changes to the MileagePlus program, making it increasingly focused on credit cards. It’s clear that we can see a general trend towards creating incentives for users to hold cards, especially in recent years. However, United is truly taking a step further than what we’ve seen before.

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