As I covered in a separate post, American Airlines and Citi have announced an expansion of their partnership. Citi will become the exclusive issuer of AAdvantage co-branded credit cards in the United States, meaning that American is dumping Barclays.
This development goes beyond just American’s co-branded credit cards, and I wanted to talk about that in a bit more detail in this post.
In this post:
Citi ThankYou partnering with American AAdvantage
While it’s not stated explicitly, it sure sounds to me like American AAdvantage is finally expected to be added as a transfer partner for the Citi ThankYou program, which is one of the major transferable points currencies. Here’s what the press release states:
The agreement creates an innovative alignment between the Citi ThankYou and AAdvantage card programs and is designed to drive incremental value for both companies and produce a significantly expanded loyalty and rewards offering for AAdvantage members and Citi-branded cardmembers.
Exact details remain to be seen, and we also don’t know the timeline for this — it sounds like it might only happen in 2026, since that’s when the new contract formally starts, but who knows, it could happen before then.
This is a major update, since Citi not having American AAdvantage as a ThankYou transfer partner has long been a weak point of the program. Looking at the US airline industry:
- Delta has a partnership with American Express, and SkyMiles has been a Membership Rewards transfer partner
- United has a partnership with Chase, and MileagePlus has been an Ultimate Rewards transfer partner
Up until this point, clearly Citi wasn’t willing to pay the price for exclusivity with American, and presumably that’s also why American was unwilling to become a ThankYou transfer partner. Fortunately that appears to be changing.
I’d consider this to be hugely positive. AAdvantage miles are significantly more valuable than SkyMiles or MileagePlus miles, and I think many will actually find value with making these transfers. I also think it’ll make Citi ThankYou cards, like the Citi Strata Premier℠ Card (review), more compelling for many consumers, given the great uses of AAdvantage miles.
Why I’m really excited about this development
Obviously it’s fantastic news that American AAdvantage is likely to be added as a Citi ThankYou partner. However, perhaps I’m even more excited about the big picture implications of this.
For the past several years, it seems like Citi hasn’t been sure exactly what it wants to do in the travel space. For example, Citi has the ThankYou points ecosystem, yet the Citi Strata Premier Card is the only card that directly earns ThankYou points that can be transfered to airline and hotel partners. Many of us still have the more premium Citi Prestige Card, but it’s no longer open to new applicants.
Citi’s CEO (who has been in her position since 2021) has made it clear that she wants the issuer to grow wallet share in the travel space, and I think this investment in the American Airlines portfolio plus in the ThankYou program should lead to more positive changes.
The Citi ThankYou program will finally hopefully have the opportunity to be more competitive and have wider appeal with consumers, and I wouldn’t be surprised if Citi also creates new products in this space, like a premium personal card and a business card that earn ThankYou points.
So we’ll see how this all plays out, but I’m optimistic that this will have positive implications for Citi investing in its ThankYou portfolio.
Bottom line
With American Airlines and Citi announcing an exclusive agreement for AAdvantage co-branded credit cards, it seems likely that AAdvantage will also be a Citi ThankYou partner. We don’t know exactly when this will happen, as it could take until 2026. Regardless, it’s an exciting step in the right direction, and I’d be shocked if we don’t see some new cards introduced that earn ThankYou points.
What do you make of American AAdvantage likely being added as a Citi ThankYou partner? Does it impact your perception of the value of the program?
Do we really think this is going to happen? AA and Citi have had a relationship for 37 years. AA was the first airline to have a cobranded credit card, Cit the first to allow dollars spent to earn AA miles.
37 years, most of that an exclusive agreement, has not convinced them to become a transfer partner. You could redeem Citi Prestige points on AA for 1.6cpp for a short time, that went away....
Do we really think this is going to happen? AA and Citi have had a relationship for 37 years. AA was the first airline to have a cobranded credit card, Cit the first to allow dollars spent to earn AA miles.
37 years, most of that an exclusive agreement, has not convinced them to become a transfer partner. You could redeem Citi Prestige points on AA for 1.6cpp for a short time, that went away. You could transfer Bilt points for a short time, that went away.
After all this time, do we really think it's happening? While I think it would make sense for both parties, they've already held off for 37 years. What's a few more, especially in a bank portfolio with few appealing options right now?
Losing Barclay SUBs isn't exciting to me.
Does this mean that companion certificates are going away (current benefit of the Aviator Red and Silver cards)? Would be a huge blow if Citi doesn’t add this to one of their card offerings.
AAdvantage points are truly valuable compared to United's MileagePlus and Delta's Skypesos. Business or First on JAL could be found consistently at the usual 60K or 80K miles. It's not to tough to find award space on UA but you'll be paying much more miles due to "dynamic pricing". I don't even bother with Delta which asks for an absurd amount. They also lack a dedicated Japanese carrier.
Hopefully AAdvantage doesn't shift to dynamic pricing....
AAdvantage points are truly valuable compared to United's MileagePlus and Delta's Skypesos. Business or First on JAL could be found consistently at the usual 60K or 80K miles. It's not to tough to find award space on UA but you'll be paying much more miles due to "dynamic pricing". I don't even bother with Delta which asks for an absurd amount. They also lack a dedicated Japanese carrier.
Hopefully AAdvantage doesn't shift to dynamic pricing. But I can see them going this route if AAdvantage becomes a transfer partner for TYPs.
Awful news. To not even mention the potential deval is wild. Gotta get those referrals though I suppose. How about an article about how their program is their saving grace, and one of the only areas they are competitive?
I sincerely hope this happens.
At the same time, not at the expense of a airline program devaluation or "update".
If the American Airlines AAdvantage program remains as is and goes unchanged, this could be beneficial for all parties.
I fear that since this may not happen potentially for another 2 years (2026), that it implies that the airline will nerf the respective frequent flyer program in order to introduce this "innovative alignment".
Time will tell...
This is beneficial for Citi and AA. There is no benefit for consumers with consolidation and reduction of choice. Citi only, NO THANK YOU!
Ben says 'wider appeal' for thank you is a good thing.
I disagree, it works just fine as a boutique program for people who can think.
Can someone from OMAAT *please* get Citi and American to say, on the record, that all of the Citi AAdvantage cards will be usable with Google Wallet once this is done? The Barclays cards always worked; Citi's non-Aadvantage cards work; and the Citi Aadvantage Executive AA card works on Apple Pay and Samsung Pay, but not Google Pay. You can't add the card to it. What's worse, no one from Citi or American can explain...
Can someone from OMAAT *please* get Citi and American to say, on the record, that all of the Citi AAdvantage cards will be usable with Google Wallet once this is done? The Barclays cards always worked; Citi's non-Aadvantage cards work; and the Citi Aadvantage Executive AA card works on Apple Pay and Samsung Pay, but not Google Pay. You can't add the card to it. What's worse, no one from Citi or American can explain why or will do anything to fix it. It's the dumbest possible limitation on a card being offered in 2024 (almost 2025).
Chase's lack of virtual cards and Amex's blunt implementation is what baffles me. Citi blows them out of the water on that front, makes every non desired renewal charge easy peasy to avoid.
I got the Citi AA business card in late Oct and couldn't add it to Google Pay. Citi customer service told me it couldn't be added because it's a "business card". I kept trying and finally added couple of weeks later. Keep trying!
Bye Bye AA, 8 years EXP Plat. I will most likely convert to Delta.
All else being equal (no changes to AAdvantage), what part of this change makes you do so?
Good news indeed, especially with BILT dropping American a while back.
I wish they open a business card which can earn ThankYou points
Poor journalism here, Ben. You're reporting like it's fact when it's far from confirmed. Only "an innovative alignment between the Citi ThankYou and AAdvantage® card programs"
agree completely
Nobody's committing anything like journalism around here.
Sounds confirmed to as I received an email from AAdvantage today which states the following:
“American has a credit card relationship with both Citi and Barclays, and today we announced Citi will become our exclusive credit card issuer in 2026.”
Sam makes a good point - the press release talks about an "innovative alignment" between Thank You and the AAdvantage. That could mean adding AA as a transfer partner - or it could mean something more "innovative" (i.e. different than what everyone is expecting).
The biggest devaluation in the history of frequent flyer programs incoming. Why in the world would anyone think this is good news ?
Well, it's certainly good news for me because I have no reasonable way of acquiring AA miles today. So at worst it's no change for me. I agree it's bad news for AA loyalists who have lots of miles racked up.
It's great news for bloggers, so you will be hearing them flogging it incessantly for the next 3 years. For the suckers, not so much.
Agree that 1) no bank transfer partner and 2) miles that can expire are two big things that support the relative value of AA miles.
Delta and United each implemented those two features, AA has not.
I don't welcome a major bank credit card transfer partner for AA miles.
I wonder how many ppl have both the Citi AA Executive card for lounges and the Citi Prestige card. I love the Citi Prestige. I am EP on AA and do not fashion myself as “joiner” of any group that would have me but I am deeply enmeshed in these loyalty programs.
I smell devaluation, a big one. AA miles will become Delta miles worth 1 CPM, and if you are lucky, you can get a better deal.
The one saving grace for AA is that they don't have nearly the same brand recognition as Delta. Hopefully their loyalty program is much more important to them than Skypesos is to Delta
The other is miles that can expire.
I hope as well they don't go this route or carefully gate things to avoid devaluing the currency.
This is just a pipe dream, but I wish you could earn LPs through the Prestige.
Ben, your post title isn't speculative but the words in your article are. I get click bait but seems a little disingenuous without confirmation. "Expected" is speculative until Citi or AA confirms. Either way, looking forward to a Citi biz card that earns typ.
I dropped Citi for Barclays because Citi doesn't allow Google pay. If I can't use my phone to pay I'm not paying.
What are you talking about, of course they allow it. I use my Citi card on Google pay all the time
The Citi Executive Aadvantage card does not work with Google Wallet. All of Citi's non-Aadvantage cards do, but that card does not. It is specifically called out on the card website, but no one from Citi or American can explain why - and the same card works with Apple Pay and Samsung Pay.
I do know what I'm talking about. They only allow the non Advantage cards to be used with GP. The Executive AAdvantage card does not work.
Oh no! This means the end of 60k JL transpacific.
@Jason
You can bank on it.
@Jason were those readily available?
They were readily available for my trip to Tokyo next summer. I easily booked ORD/HND/ORD in JL First Class for 80K with a little effort. Business at 60K were also available when I was looking. Admittedly, I knew the dates I needed to travel and they are fixed so I just looked for those dates and booked them when they became available.
Does it mean I will lose the chance for a welcome bonus (I've never had Citi/AA card but I have Barclays')?
yes we get it you sound smart like every other person on every story about this typing "well the price of awards is about to go up!!!!!!!"
well maybe, but that doesnt really have anything to do with this. awards didnt go up significantly when gary leff and the other weirdos generated 10s of millions of AA miles out of thin air with that simplymiles deal a few years ago.
There's a lot less Citi...
yes we get it you sound smart like every other person on every story about this typing "well the price of awards is about to go up!!!!!!!"
well maybe, but that doesnt really have anything to do with this. awards didnt go up significantly when gary leff and the other weirdos generated 10s of millions of AA miles out of thin air with that simplymiles deal a few years ago.
There's a lot less Citi cards to churn through and rack up millions of miles compared to Chase/Amex, so it won't be as drastic
Excellent news, but I agree with Mitchell.
Welp hurry and book your business class awards now, because the price is about to go up!
Yep. Great news for self-serving bloggers, bad news for everyone else.