FlyerTalk Forums - View Single Post - The beginning of the end of travel rewards?
Old Jan 8, 2019, 8:56 am
  #12  
javabytes
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Originally Posted by Often1
No, the banks will not. Same as air carriers will not cut fares. Both cut "capacity."

The myth that unprofitable customers will somehow help the bottom line is dead and gone. When merchants are able to end higher interchange fees for specialized cards, the cost of those cards will fall directly on card issuers (banks) and it is unlikely that the costs of such a card will be worth it.
The two are hardly equivalent. Banks can more easily shed unprofitable customers, while airlines, due to their massive fixed costs, need to make more of an effort to retain marginally profitable customers while they adjust (which can take years) even if those customers are unprofitable in the long term.
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