American Airlines has finalized a long-awaited credit card agreement with Citigroup, replacing its previous partner, Barclays. The airline anticipates a 10% annual growth in payments from its co-branded credit card and other partnerships. Over the past year, American generated $5.6 billion from these collaborations. The transition of Barclays cardholders to Citi is set to commence in 2026, with specific details yet to be disclosed. Citigroup will manage credit card sign-up promotions, including those offered on flights and at airports, as per American’s announcement.
The current partnerships of the airline trace back to its merger with US Airways in 2013. CNBC previously reported negotiations between American and Citi to establish the bank as its exclusive credit card partner. Co-branded agreements play a vital role for airlines, as they sell frequent flyer miles to banks, generating substantial revenue and boosting airline profits. In exchange, banks gain a dedicated consumer base incentivized to use the cards not only for travel but also for everyday purchases.
Delta Air Lines surpassed American in earnings from its co-branded credit card program. Delta garnered nearly $7 billion last year from its collaboration with American Express, with expectations to reach $10 billion in the long run. Following the announcement of the new partnership with Citi and an increased revenue forecast for the fourth quarter, American’s shares surged by over 6% in premarket trading. An update to the article corrects the day of American Airlines’ announcement to Thursday.
