On November 27, 2024, an American Airlines plane was parked at LaGuardia Airport in New York.
Shannon Stapleton | Reuters
American Airlines Signed a long-awaited credit card deal with Citigroup, ditching another partner, Barclays.
The airline said Thursday it expects payments received from its co-branded credit cards and other partners to increase by 10% annually. American Airlines generated $5.6 billion in revenue from these transactions in the 12 months ended Sept. 30.
American Airlines said it would begin converting Barclays cardholders to Citi cardholders in 2026, but did not provide details.
The airline’s current partnership stems from its 2013 merger with US Airways. Citi will take over credit card sign-up promotions, such as those on flights and airports.
CNBC reported in September that the airline was in talks to select Citi as its exclusive credit card partner.
Co-branding deals are crucial for airlines. Airlines sell frequent flyer miles to banks, bringing in billions of dollars in revenue and increasing profits for the airlines. In return, banks attract a group of consumers who swipe their cards not just when traveling but also for everyday purchases.
Delta Air Lines Earns more than Americans in its program. Last year, Delta Air Lines generated nearly $7 billion in revenue through its co-branded credit card partnership American Expressthe operator expects this figure to grow to $10 billion in the long term.
U.S. stocks rose more than 6% in premarket trading after the company unveiled a new deal with Citigroup and raised its fourth-quarter revenue forecast.
Correction: American Airlines announced this Thursday. A previous version of this story incorrectly described this day.
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