Sapphire Reserve Strains JPMorgan’s Ties With United Airlines

www.wsj.com

Chase's Sapphire Reserve card was a hit with consumers since it launched three years ago, with its terrific rewards and metallic heft. The problem? That customer is also the target of airlines looking to push their own credit cards. A big airline that has a partnership with Chase? United, which wants those same customers to sign up for and spend on the airline’s credit cards. According to this article, "United executives have told JPMorgan they believe the Sapphire Reserve card is competing directly with the airline’s cards and siphoning off customer spending, according to people familiar with the matter." Why is this a problem? Because over the next five years half of airlines’ cash earnings will come from the sale of miles to card issuers and frequent fliers. Channel conflict anyone?

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