From CNBC: 2024-09-20 09:15:26

American Airlines is negotiating to make Citigroup its exclusive credit card partner, potentially dropping Barclays to consolidate its business and boost loyalty program revenue. Talks are ongoing, but regulatory approval is required. Airlines depend on card programs for revenue, especially during the pandemic. American was out-earned by Delta in this sector last year.

There is a possibility that U.S. regulators could delay or cancel the potential deal between American Airlines and Citigroup. Most brands settle with a single issuer, but American kept both Citigroup and Barclays after merging with US Airways in 2013. Citigroup seems to have an advantage in this renewed negotiation.

Citigroup, led by CEO Jane Fraser, appears to have the more profitable side of the American Airlines business. Contracts are likely to span for seven to ten years if an agreement is reached, allowing Citigroup to recover costs. American Airlines aims to enhance customer products and drive growth through partnerships like this one.

Barclays executives are looking to diversify their co-branded card portfolio away from airlines, focusing on partnerships with retailers and tech companies. Details of negotiations between American Airlines, Citigroup, and Barclays are still ongoing in the competitive co-brand deals sector.



Read more at CNBC: AA in talks to pick Citigroup over Barclays