Barclays Reshapes Credit Card Portfolio, Exits Airline Partnerships
Barclays has reshaped its credit card portfolio, consolidating rewards programs and exiting certain airline partnerships with United Airlines and Southwest Airlines. The move comes after American Express' struggles with the GM credit card business and changes in the airline industry.
Barclays has overhauled its GM credit card program, merging multiple branded rewards programs to expand earning potential. This change follows American Airlines' struggles with the business, which reportedly resulted in a $6 billion pretax loss between early 2020 and Q1 2024.
Barclays is exiting its cobranded airline credit card partnerships with American Airlines and Hawaiian Airlines. Its involvement with American Airlines began in 2013 following US Airways' acquisition by American Airlines. However, Barclays consistently played a secondary role to Citi in this partnership. The merger of Hawaiian and Alaskan Airlines also weakened Barclays' position, leading to the transition of HawaiianMiles to the Atmos Rewards program. Now, Barclays is left with only two airline co-brands: JetBlue and Breeze Airlines.
Following the end of the Hawaiian Airlines partnership, Synchrony Bank took over the entire Hawaiian Airlines credit card portfolio business. Meanwhile, Citibank is taking over American Airlines' credit card business, and Hawaiian's portfolio is integrated into Alaska Airlines' Atmos Rewards program.
Barclays' strategic moves allow it to focus on its General Motors card business, which it acquired from Goldman Sachs last year. The overhaul of the GM credit card program and the exit from certain airline partnerships enable Barclays to streamline its offerings and potentially improve its financial performance.
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