CNBC reports the airlines is “in talks” with Citi to move all their credit card business to the bank, dropping Barclays despite being a long-standing partner.
Credit Card Talks Come After $5.2 Billion in Earnings in 2023
When US Airways merged with American Airlines in 2013, they brought over their previously existing partnership with Barclays for their credit card business. This split the new American’s cards across two providers, giving Barclays marketing rights in-flight and at airports, while letting Citi targeting flyers everywhere else.
Those who are familiar with the talks told CNBC that all could be subject to change. Speaking on the condition of anonymity, insiders say conversations are ongoing to move all the credit card business to Citi.
In a statement to the business news outlet, a Citi spokesperson said: “We are always actively working with our partners, including American Airlines, to look for ways to jointly enhance customer products and drive shared value and growth.” Spokespersons for Barclays did not provide a comment.
The talks come despite American earning $5.2 billion from their two credit card partners in 2023, according to CNBC. Even if American strikes an exclusive deal with Citi, it could be subject to further review from both the U.S. Department of Transportation and the Department of Justice.
American’s talks of shifting their two-card operation happens while the Transportation Department is probing airlines’ loyalty programs for fairness and transparency. While spokespersons for the Fort Worth-based carrier did not comment on how that investigation could affect their plans, they provided a statement to CNBC saying: “We continue to work with all of our partners, including our co-branded credit card partners, to explore opportunities to improve the products and services we provide our mutual customers and bring even more value to the AAdvantage program.”
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Source: frugal travel guy