JetBlue Is Betting New London Routes Will Boost Credit Card Revenue
Photo Credit: A JetBlue Barclay's credit card. The airline is betting its loyalty program has considerable upside. JetBlue Airways
Skift Take
JetBlue probably will never make the massive credit card revenue some of its peer airlines earn. But JetBlue can still make more money from its relationship with Barclays. It’ll be interesting to see how the partnership evolves.
As major U.S. airlines continue to win enormous contracts from big banks that covet their customers, do smaller carriers like JetBlue Airways have a disadvantage? And will newly announced routes to London matter for the New York-based airline in terms of revenues from credit card deals?
This is a big issue. Historically airlines have made the bulk of their revenues by selling tickets. But in recent years, banks have rewarded airlines with rich multi-year contracts that may be worth as much or more than ticket revenue.
The banks, including American Express, JPMorgan Chase, and Barclays, pay airlines for frequent flyer miles and award them to customers as incentives. The airline and bank also share customer information, so Delta Air Lines has access to insights about all American Express customers.
Delta showed earlier this month how lucrative these deals can be, when it announced an 11-year extension with American Express. By 2023, Delta ex
