Anyway to fix the leather?

There most certainly is a way to fix this. Actually, there are several ways. I have several old leather things (most notably, a Coach backpack that I bought over 25 years ago, which was scratched, badly stained, frayed and from which the handles had become detached). I will upload a pic of what it looks like now, post-repair, but first I'll answer your question. The damage to the arm of your chair or couch is quite minor and should not be expensive to repair. The furniture clinic not only offers excellent products, but it has a YouTube channel that has great instructional videos (no, I don't work for them; I am just a random customer). The first thing you need to do is clean it properly. It looks to me like their Leather Cleaner (USD 11.95) will do the job. Next, you'll need something that is flexible and will fill those cracks. I've had a very good experience with the FC Leather Binder (USD 17.95), but given the size of the cracks on your item, you may need something a little more thick/durable, like the Leather Flexfill (USD 34.95) or the Heavy Filler (USD 9.95). Either way, that's the second step. This stuff dries really nicely and is very flexible. It's not even noticeable after you recolor it. Which brings me to the next item. I suggest you finish the repair by making the color uniform, with an acrylic leather paint. I favor Angelus acrylic leather paint. You can get a bottle on Amazon for about $6.00 US. A small amount covers a large area: I did my whole backpack with one 1 oz, bottle. I'm attaching pictures of two possible color choices, given what I see in your photo. (The furniture clinic products may also be available on Amazon). You should apply the paint, using a soft sponge, after 2-3 coats of the binder or filler (dry, then sand, after each coat.). Finally, you'll want to seal the color in. For this, I find Fiebing's Acrylic Resolene (4 Oz.), a protective acrylic finish that is flexible, durable and water resistant to be the best. It's available at Amazon for slightly under $10. I'd apply 2-3 coats to be on the safe side. Then, all you need to do is apply some leather moisturizing cream, and buff. It will probably look so good, you'll want to hang on to it. Good luck!

Pictures:

My repaired backpack:

Angelus acrylic leather paint in:

Light Gray

Dark gray.