American Airlines Faces Santander Suit Over Covid Contract Rift

Oct. 18, 2021, 3:06 PM

American Airlines Inc. failed to shed a suit by Santander over a co-branded credit card, because the bank adequately alleged that Covid-19 and related restrictions on international flights have frustrated the agreement’s purpose, a federal court said.

Banco Santander SA’s Brazilian arm can proceed with a lawsuit to get out of its contract to offer a credit card that allows cardholders to earn miles that can be exchanged for seats on American flights, the U.S. District Court for the Eastern District of New York said.

The pandemic was a “wholly unforeseeable event” that arguably made the contract essentially valueless, the ...

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