According to the WSJ both Delta & United have discussed selling miles to American Express & JP Morgan Chase ahead of schedule and for less than the card issuers would normally pay. Chase & United extended their partnership earlier this year until 2029 and American Express & Delta extended their co-branded partnership in 2019 until 2029.
The issue with selling miles ahead of schedule is that you lose out on that future revenue and the airlines are also forced to provide the card issuer with an attractive discount as well. This isn’t a new strategy with airlines selling miles and receiving cash injections after 9/11.
The risk from a consumer stand point is that airlines end up devaluing how much the miles are worth when redeeming for airfare. I doubt we will see that happen in the short term, but it could definitely provide pressure in the medium to long term. The upside is that if the card issuers are able to receive the miles at a big enough discount we could see increased sign up bonuses as a result.
