American says credit card deals will boost income
Shares of American jumped Tuesday after the company said that new credit-card deals will increase pretax income by US$1.55b over the next three years. Most airlines have a single credit card issuer, but American is taking a new route. It will continue offering credit cards from Citi, but it also struck a new agreement with Barclay's card business, which was the credit card provider for US Airways before that carrier merged with American in late 2013. All the cards will be MasterCards. American said the deals will increase pretax income by $200m this year, $550m next year, and $800m in 2018 compared with the current contracts. <br/>
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American says credit card deals will boost income
Shares of American jumped Tuesday after the company said that new credit-card deals will increase pretax income by US$1.55b over the next three years. Most airlines have a single credit card issuer, but American is taking a new route. It will continue offering credit cards from Citi, but it also struck a new agreement with Barclay's card business, which was the credit card provider for US Airways before that carrier merged with American in late 2013. All the cards will be MasterCards. American said the deals will increase pretax income by $200m this year, $550m next year, and $800m in 2018 compared with the current contracts. <br/>
