Barclays Exits American & Hawaiian Airlines Credit Card Partnerships, Doubles Down on GM Business
Barclays is streamlining its credit card business. It has exited partnerships with American Airlines and Hawaiian Airlines, and is now solely focused on its General Motors card business, acquired from Goldman Sachs last year.
Barclays' involvement with American Airlines began in 2013 following the airline's acquisition of US Airways. However, Barclays consistently played a secondary role to Citi in this partnership. Now, Citibank is taking over the entirety of American Airlines' credit card business from Barclays.
In another development, the merger of Hawaiian Airlines and Alaskan Airlines has led to a change in the HawaiianMiles program. Barclays' Hawaiian Airlines credit card portfolio is being integrated into Alaska Airlines' Atmos Rewards program.
Barclays has been active in the airline co-branded credit card market since acquiring the business from Goldman Sachs. It has entered into three such partnerships, but now has only two left: JetBlue and Breeze Airlines.
Barclays has made significant strides with its General Motors card business. It overhauled the program, consolidating multiple branded rewards programs and expanding earning potential. This focus on the GM business comes after Goldman Sachs' management reportedly resulted in significant losses.
Barclays' exit from American Airlines and Hawaiian Airlines credit card partnerships allows it to concentrate on its General Motors card business. The overhaul of the GM program and the consolidation of rewards programs indicate a strategic focus on this segment. Meanwhile, the integration of Hawaiian Airlines' credit card portfolio into Alaska Airlines' Atmos Rewards program reflects industry consolidation.
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