Credit Card News
Citi to Become Exclusive Issuer of American Airlines Credit Cards
American Airlines and Citi have reached a new agreement for their co-branded rewards credit card partnership — which will also push a different issuer out of the picture.
About the new agreement:
Today, Citi and American Airlines revealed that they’ve signed a deal to extend their co-branded partnership. The new agreement is for 10 years and comes after 37 years of the two companies working together.
As part of the new deal, Citi will also become the exclusive issuer of AAdvantage co-branded cards in the United States. This means that Citi will be acquiring the American Airlines card currently issued by Barclays. The bank says that current Barclays AAdvantage cardholders will be transitioned to Citi in 2026. More information on that move is expected in the months ahead. Notably, as the sole issuer, Citi will also be able to advertise its cards inflight and at airports.
Currently, Citi issues the no-annual-fee AAdvantage MileUp card, the $99 AAdvantage Platinum Select World Elite Mastercard, and the premium $595 annual fee AAdvantage Executive World Elite Mastercard. Additionally, the bank offers the AAdvantage Business World Elite Mastercard, which carries a $99 annual fee. Meanwhile, the Barclays AAdvantage Aviator Red World Elite Mastercard has a $99 annual fee.
What they’re saying:
Commenting on the new agreement, American Airlines CEO Robert Isom said, “American is proud to have launched the first airline loyalty program, and with Citi, the travel industry’s first co-branded credit card. The strength of our relationship with Citi has enabled us to deliver first-class products and customer service to millions of AAdvantage cardmembers. This expanded partnership will unlock even more value and exciting new benefits for all of our customers in the future.”
Additionally, Citi CEO Jane Fraser said of the expanded deal, “American Airlines and Citi have built something truly special together — a partnership rooted in delivering excellence to our customers. We’re now excited to take this relationship to greater heights through an expanded customer base and a series of new loyalty and reward offerings. Together, we’re creating more opportunities to welcome new cardmembers, deepen our connection with our existing ones and make our co-branded card the clear favorite in everyone’s wallets.”
My thoughts:
To me, it was always a bit strange that Barclays had an American Airlines co-branded card when Citi had a trio of cards. Then again, it’s not unheard of as American Express and Chase both have Marriot Bonvoy cards. In any case, this development could be a good thing as it will simplify the line-up for consumers. Then again, it does mean less competition, which might prove less-than-optimal over time. Unfortunately, with these changes not set to take effect for more than a year, it’ll be a while before we know for sure whether this is a win for flyers or not.
Author
Other Articles by Kyle Burbank
Credit Card News
Financial
Robinhood App Review: Why I'm Still a Fan (Overall)
Robinhood has proven to be an extremely easy way to start buying stocks without having to pay commissions or fees. Furthermore, as I do start to learn the ropes and am ready to take my portfolio to the next level, it's nice to know that Robinhood continues to increase their offerings.
FinTech News
