Delta Air CEO Says Trump Credit Card Cap Will Upend Industry

Delta Air Lines CEO Ed Bastian is warning that President Donald Trump’s proposed one‑year 10% cap on credit card interest rates would “upend the whole credit card industry.” He argues it would especially hurt banks and lower‑income or subprime borrowers by shrinking access to credit, not just lowering the rates people pay now.​

What Trump is proposing

• Trump has called for U.S. credit card issuers to cap interest rates at 10% for one year, starting January 20, 2026.​

• The demand has been framed as a way to reduce borrowing costs for consumers, with average card APRs currently above 20% and many subprime rates above 30%.​

• The legal mechanism for enforcing the cap is unclear, and banks are signaling they could challenge any attempt to mandate it.​

What the Delta CEO said

• Ed Bastian said the 10% cap would “upend the whole credit card industry” and “restrict the lower‑end consumer from having access to any credit.”​

• In a Bloomberg TV interview, he warned that what sounds like relief for lower‑income borrowers could in reality “eliminate their ability for credit” as banks pull back.​

• He told analysts he does not “see any way we could even begin to contemplate how that would be implemented.”​

Why airlines care

• Delta has a major co‑brand credit card partnership with American Express that generates billions of dollars in high‑margin revenue for the airline.​

• If card lenders earn less from interest and are forced to cut back on riskier customers and rich rewards, airlines could see pressure on loyalty programs and co‑brand economics.​

• Analysts warn that reduced consumer credit and weaker card rewards could hit travel demand, adding another indirect risk for airlines like Delta.​

Broader industry reaction

• Bank and card‑issuer stocks such as Capital One, American Express, Visa, and Mastercard fell after the cap talk, reflecting fears large parts of the card business would become unprofitable.​

• Executives and analysts say issuers would likely respond by cutting off subprime borrowers, tightening credit lines, and reducing rewards and perks to preserve profitability.​

• Some fintech and “buy now, pay later” leaders are more supportive, seeing an opportunity if traditional card economics are disrupted.​

Context on other card rules

• Separately, a federal judge—backed by the Trump administration—voided a Biden‑era CFPB rule that would have capped most credit card late fees at about $8, after business groups argued the bureau exceeded its authority.​

• That late‑fee rollback contrasts with the new push for a strict interest‑rate cap, underscoring how different pieces of card regulation can cut in opposite directions for banks and consumers.​