United Airlines Plays Hardball With Expedia and JPMorgan Chase
Photo Credit: United Airlines jets lined up in Chicago. The airline is taking an aggressive stance with Chase and Expedia. United Airlines
Skift Take
For years, airlines had little leverage with their partners. But airlines now are strong, and they have the advantage. Why shouldn’t they use it in contractual discussions?
United Airlines has had relationships with JPMorgan Chase and Expedia Group for years, but on Wednesday the airline’s executives suggested both companies may need to improve their offers to maintain the carrier’s business.
Simply put, it’s not 2009 anymore. Then, with airlines facing higher fuel costs and a recession, they would take cash anywhere they could find it, often by accepting mediocre deals with credit card issuers and online travel agencies.
After consolidation, and with a healthier economy, U.S. carriers are strong now. They consistently make money. In the first quarter, even as it wrestled with operational challenges, including the Boeing 737 Max grounding, United reported net income of $292 million, roughly double compared to last year.
Now, it can be more aggressive with its partners. On the credit card side, executives have been negotiating with JPMorgan Chase on a new contract, asking for terms as generous as Delta Air Lines received earlier this month f
