Since its merger with US Airways, American Airlines has maintained two different issuers. However, that will no longer be the case soon, as AAdvantage consolidates card offerings under one issuer. Of course, returning to the status quo for the rest of the industry could mean changes for all AAdvantage cardholders.
Citi has long been American Airlines’ credit card partner. In fact, the press release announcing the contract renewal between the two highlighted that the two have been in business together for 37 years now. However, when American became America West Airlines 2.0 US Airways 2.0, they picked up US Airways’ former issuer, Barclays, in addition to Citi. But, this love triangle is now coming to an end as AAdvantage consolidates card offerings down to a single issuer again.
AAdvantage Consolidates Card Offerings
As you may have guessed or already heard, American Airlines and Citi have signed a 10-year extension to their contract, which will ensure that Citi continues to be an issuer of AAdvantage cards until it has done so for nearly 50 years. Moreover, the extension also grants Citi exclusivity in the U.S. market, which means Barclays will no longer be able to issue AAdvantage cards. Naturally, I’m sure Barclays cardholders will want to know what’s happening to them. Thankfully, we have answers.
Disposition of American Aviator Cards
Those of you who are American Advantage Aviator cardholders will be meeting a fate similar to Hawaiian Airlines World Elite Mastercard cardholders as AAdvantage consolidates card offerings. That is, Citi will acquire Barclay’s entire American Airlines co-brand portfolio and transition cardholders to equivalent cards in their own portfolio sometime in 2026. However, that’s the extent of what we know will happen today. American and Citi say to expect more details about this transition in the coming months. In the meantime, you can continue using your American Aviator card as you always have, and it will remain the same until the conversion occurs.
Ironically, Hawaiian Airlines World Elite Mastercards are also issued by Barclays. So, over the next two years, Barclays is losing two airline card portfolios.
New Benefits on the Horizon
While details are scant, in their press release, American and Citi state the following: “[t]he 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.”
You got that? If you read between the lines, it sounds an awful lot like the ability to transfer ThankYou rewards points to AAdvantage is coming. Of course, details like when this will occur, what the transfer ratio will look like, etc., are unknown as of now. Since it seems like the new agreement takes effect in 2026, I’d expect the ability to transfer to come up around then. I’d also expect a transfer ratio of 1:1, which is usually (but not always) what we see.
Potential Negative Changes
As AAdvantage consolidates card offerings, you’ll no longer have competition between two separate banks for a single pool of customers. As such, it’s possible we could see negative changes in the future. If they occur, they’ll mostly come in the form of benefits reductions or increased annual fees, among others. Of course, that adverse changes will occur is not a foregone conclusion. We could also see enhancements, as has been the case with Hawaiian’s current card. However, I’m sure Citi is paying quite the premium for this exclusivity and will want to earn back its investment. So, we shall see what ultimately happens.
AAdvantage Consolidates Card Offerings, Final Thoughts
American Airlines is the only one of the major four U.S. airlines whose miles you cannot convert to from one of the major banks’ points currencies. However, that will change as AAdvantage consolidates its card offerings to a single issuer—Citi. So, on balance, I think this is a win for the points and miles community. More flexibility is always a plus. However, we have to be weary, not only of potential negative changes for cardholders but also of devaluations the opening up of transfers might inspire.