American Airlines Renews Card Agreements with Citi and Barclaycard

July 13, 2016, Written By Bill Hardekopf
BARCELONA SPAIN - DECEMBER 11: An American Airlines Boeing 767 taking off on December 11 2014 in Barcelona. American Airlines is the world's largest airline with 619 aircraft and 108 million passengers.

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American Airlines announced it will extend its relationships with both Citi and Barclaycard. This means the airline will continue to provide AAdvantage miles and other benefits through both cards.

“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%.



The information contained within this article was accurate as of July 13, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.