American Airlines Group, Inc. (AAL) shares are experiencing a slight dip on Friday as rumors of a potential exclusive credit card partnership with Citigroup, Inc. (C) swirl. This move, if successful, would mark the end of their long-standing partnership with Barclays PLC (BCS), which began in 2013 following the airline’s acquisition of US Airways.
Back in March, Bloomberg reported that American Airlines was renegotiating its co-branded credit card contract, aiming to increase its share of this lucrative revenue stream, a critical source of income for U.S. airlines. A Citigroup spokesperson confirmed to CNBC that they are constantly exploring ways to enhance customer products and foster growth alongside their partners, including American Airlines.
While CNBC reports that discussions are currently underway, reaching an agreement, subject to regulatory approval, remains uncertain. The possibility of objections from U.S. regulators, including the Department of Transportation, looms large, which could potentially delay or even derail the contract, leaving the existing partnership with Barclays intact.
According to Benzinga Pro, AAL stock has suffered a significant decline of over 15% in the past year. Investors seeking exposure to the stock can consider the U.S. Global Jets ETF (JETS) or the Themes Airlines ETF (AIRL).
AAL shares closed at $10.98 on Friday, reflecting a 1.17% decrease.
