American Airlines Renews Card Agreements with Citi and Barclaycard
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“These long-term relationships with our innovative credit card partners provide our customers with the best ways to enhance their travel experience. From earning miles to boarding early and checking a bag for free, our customers tell us how much they value their AAdvantage®-affiliated cards,” said Andrew Nocella, chief marketing officer for American Airlines. “Our new dual-issuer arrangement is the first of its kind in the U.S. airline industry, and was enabled by the progressive partnership with Citi, Barclaycard US and MasterCard.”
The agreement set rules for engaging new customers. Citi will continue to offer its cards through digital and mobile channels, direct mail and Admirals Club lounge marketing. Barclaycard will offer its new card to customers in airports and during flights starting in January 2017.
The airline believes working with two co-branded credit cards instead of one will increase its bottom line. In a SEC filing, the company said it expects its pretax income “to increase by approximately $200 million in the second half of 2016, $550 million in 2017 and $800 million in 2018, with continued modest improvement in pretax income each year beyond.”
After the announcement was made yesterday, American Airlines shares rose 7.5%.