United Airlines Extends Association With Chase and Visa
In a customer-friendly move, United Airlines, the wholly-owned subsidiary of United Airlines Holdings UAL, inked a deal with two major credit card companies, namely Chase Credit Card Services and Visa V. This new agreement, valid through 2029, signals the continuation of the long-standing partnership (more than three decades) between the three involved parties.
Management stated that the new pact via which the carrier’s MileagePlus credit card program is extended, will provide it with an additional $400 million in the ongoing year. However, other financial aspects of the deal have been kept under wraps.
By stretching its association with the two visa companies, United Airlines not only took a step toward enhancing its cardholders’ travel experience but also offered them more opportunities to earn and redeem miles.
Moreover, the carrier is making constant efforts to make its MileagePlus scheme the most sought-after loyalty program for its members. For instance, last year, the airline announced that MileagePlus miles never expire. Additionally, in July 2019, it declared its partnership with CLEAR, a secure identity company that uses biometrics for building a frictionless and secure world to ease the travel experience for members of the credit card program.
Notably, co-branded card alliances are quite common in the airline space and contribute handsomely to an airline’s top line. For instance, Delta Air Lines DAL anticipates its deal with American Express AXP to contribute approximately $7 billion to its top line (on an annual basis) by 2023.
Zacks Rank
United Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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