Shares of United Airlines and other major U.S. carriers declined on Monday. The drop followed President Donald Trump's proposal to implement a one-year cap on credit-card interest rates at 10 percent.
United's stock specifically slipped by 1 percent following the announcement. The market reacted to concerns about the potential impact on airline revenue streams, which are closely tied to crucial co-branded credit card partnerships.
The proposal aims to reduce consumer borrowing costs but created anxiety among investors regarding the profitability of these airline loyalty programs. While the measure requires legislative approval, the market reaction highlights the sensitivity of airline finances to changes in consumer finance regulations.