Media reports indicate that American Airlines is currently in talks aimed at making Citigroup its exclusive credit card partner.
Journalists also claim that the mentioned airline refuses to participate of a competing issuer Barclays in a partnership which history began in 2013 after the takeover of US Airways. The media published relevant information, referring to insiders who are aware of the details of the negotiation process taking place in the so-called behind-the-scenes format.
Insiders noted that American Airlines has been working with banks and card networks for several months to form a new long-term agreement, the purpose of which is to consolidate the company’s business with a single issuer. It is expected that the implementation of this intention will increase the revenue from the loyalty program.
The negotiation process continues. So far, there is no data on the most likely and realistic outcome of the relevant process. The timing of the agreement, which must be approved by regulators, is also unknown.
Insiders, who spoke with journalists used the right of anonymity, noting that in this case a confidential process is implied.
It is worth noting that airlines have been relying heavily on card programs lately. The corresponding programs contain the opportunity to earn billions of dollars a year from banks in exchange for the miles that customers earn using their cards. The relevant activity has become critically important for airlines during the coronavirus pandemic. During the mentioned period, the level of demand for travel dropped significantly, but consumers continued to spend and earn miles on their cards.
As we have reported earlier, Citi Profit Grows.
