American Airlines is consolidating its credit card partnership under Citi, ending a long-standing dual arrangement with Barclays.
Starting in 2026, Citi will become the exclusive issuer of the AAdvantage® co-branded card portfolio in the United States, marking a pivotal shift in the carrier’s loyalty program strategy.
The new agreement will allow Citi to take over Barclays’ portfolio, with a transition of cardmembers set to begin in 2026. Current Barclays cardholders will retain their existing benefits throughout the transition. The deal, announced after months of negotiations, is expected to boost American’s payments from credit card partnerships by 10%, a critical step in strengthening its loyalty program and revenue streams.
A Transformational Move in Airline Loyalty Programs
American Airlines’ partnership with Citi dates back more than 37 years, during which time it also maintained a parallel agreement with Barclays following the US Airways merger. This dual partnership, unique in the airline industry, helped American manage its financial challenges during critical years. However, CEO Robert Isom remarked that consolidating under Citi aligns with the airline’s current goals of creating a more streamlined, competitive loyalty program.
The exclusivity deal is poised to have a significant financial impact. American disclosed that it received $5.6 billion from its credit card partners in the 12 months through September 2024. The airline projects this figure could approach $10 billion annually in the coming years, with an estimated pre-tax income boost of $1.5 billion.
Citi and American’s Enhanced Partnership
As part of the expanded relationship, Citi will integrate its ThankYou Rewards program with the AAdvantage® card offerings, delivering new and enhanced loyalty benefits for cardholders. Citi’s CEO Jane Fraser emphasized that the partnership will unlock opportunities for deepening connections with cardmembers and growing the portfolio.
The Citi®/AAdvantage® credit card portfolio already spans no-annual-fee, mid-tier, and premium cards, catering to a diverse range of customers. With exclusive access to inflight and airport acquisition channels, Citi is expected to leverage this strategic advantage to expand its cardmember base.
The Growing Importance of Co-Branded Credit Cards
The deal underscores the growing significance of co-branded credit cards in the airline industry. Airlines generate substantial revenue by selling loyalty points to financial institutions, which then reward customers for card usage. These arrangements not only boost airline revenue but also foster brand loyalty and enhance customer engagement.
American’s focus on its loyalty program reflects broader industry trends. Delta Air Lines, for example, generated $6.8 billion last year from its partnership with American Express, highlighting the lucrative potential of these agreements. For American, enhancing its loyalty offerings and premium products is a central pillar of its strategy, with 80% of revenue expected to stem from these areas.
A New Era for AAdvantage Members
With Citi taking the reins as the sole issuer of American Airlines credit cards, the airline is positioning itself for a more integrated and competitive loyalty ecosystem. By unifying its credit card offerings under one partner, American aims to deliver streamlined benefits, improve customer satisfaction, and solidify its status as a leader in the travel industry’s loyalty market.
