Skift Take
Yes, a lot of people have ditched their airline-branded credit cards. But even people who have snazzy new cards, including the Chase Sapphire Reserve, like to redeem points for free travel on United and other airlines. For that reason, United MileagePlus miles are still valuable to Chase.
United Airlines seeks a big revenue bump from its next credit card contract with J.P. Morgan Chase, but is the bank ready to pay major money for a contract extension?
Maybe not, according to an investment analyst who follows airline credit card deals closely. In a research note written after J.P. Morgan Chase announced third quarter earnings October 12, Stifel's Joseph W. DeNardi suggested United may not be as vital to the bank as several years ago. DeNardi didn't say an extended deal won't get done — airline contracts are still vital for banks because customers relish redeeming points and miles — but noted United's bargaining position may have slipped.
His comments come amid changing trends in the credit card industry. Once, Chase's high-end customers loved carrying cards with an airline's brand on them. Some still do, but many have switched to Chase-branded products, including the popular Chase Sapphire Reserve, which debuted a little more than a year ago with a 100,000-point sign-up bonus, a
