Jan. 12 at 7:01 PM
Airline stocks fell after President Donald Trump called for a one-year 10% cap on credit-card interest rates, raising concerns about co-branded card revenue. Airlines earn billions from these partnerships; Delta alone received
$2 billion from American Express in the third quarter, up 12% year over year.
American Express shares dropped sharply, dragging airline stocks lower, including Delta, United, and American Airlines. However, analysts say the proposal is unlikely to advance because Trump lacks authority to impose such a cap without Congressional approval, making the legislative risk relatively low.
As a result, analysts view the selloff as overdone, with attention likely to shift back to fundamentals as Delta reports earnings, which should offer a clearer read on airline sector health.
$DAL $AXP $UAL $JPM $AAL