American Airlines has confirmed the end of its partnership with Barclays and the continuation of its relationship with Citi as the exclusive issuer of its AAdvantage loyalty program credit cards. This change, set to take effect in 2026, marks the conclusion of a long-standing dual issuance arrangement where both Citi and Barclays provided credit cards to American Airlines’ members.
The decision to partner exclusively with Citi enhances American Airlines' strategy to streamline its credit card offerings and boost its revenue from the AAdvantage loyalty program. This partnership is projected to yield significant financial benefits for the airline, with expectations of increasing annual payments by 10% — amounting to nearly $10 billion per year. Notably, this arrangement will also provide American Airlines with approximately $1.5 billion annually on a pre-tax basis from its credit card operations.
American Airlines and Citi have worked together for 37 years, making this extension another chapter in their historical partnership. Robert Isom, American’s CEO, emphasized the importance of this collaboration, stating, "American is proud to have launched the first airline loyalty program and, with Citi, the travel industry’s first co-branded credit card." This reflects both companies’ commitment to delivering high-value products and services to customers.
Currently, American Airlines offers cobranded credit cards through both Citi and Barclays due to its merger with US Airways back in 2013. While Citi marketed its cards online and through direct mail, Barclays held advertising rights for its card inside the airport and through inflight promotions. This revised agreement will result in Citi taking over the marketing and management of the Barclays portfolio, including the Aviator series, which will be phased out by 2026.
Citi’s takeover of Barclays’ credit card portfolio will allow the new issuer to integrate its ThankYou rewards program with the AAdvantage program. This synergy is expected to create new opportunities for both existing and new cardmembers, enhancing the value proposition for customers. Citi CEO Jane Fraser expressed excitement about the agreement, saying, "Together, we’re creating more opportunities to welcome new cardmembers and deepen our connection with our existing ones."
For the current Aviator cardholders, Barclays will continue to maintain existing card benefits until the transition is complete. After the switchover, members should expect new, enhanced benefits from the Citi portfolio, developed collaboratively between the two companies. More specifics about the transition will be announced as the date approaches.
This shift also highlights the growing trend of airlines focusing heavily on loyalty programs, which have become cornerstones of airlines' revenue streams. The popularity of cobranded credit cards stems from their ability to create customer loyalty; they offer significant rewards, making them attractive to travelers who regularly fly with American Airlines.
American Airlines has seen considerable success with its partnership strategies before, following models established by competitors like Delta Airlines, which generates substantial revenue through its partnership with American Express. The expectation is for American Airlines to replicate or even exceed these successes with the new agreement with Citi.
The airline hopes to tap more effectively not only its customer base through enhanced credit card offerings but also to drive loyalty program growth as part of its overall business strategy. The focus is clear: increase engagement to capture more of the lucrative travel market, where consumer loyalty translates directly to financial performance.
With over two million flights scheduled this year, American Airlines also has ambitious operational plans, continuing its quest to fly millions of passengers with improved financial stability and service offerings at stake. The expectation is to pave the way for creating significant value and exciting new benefits for AAdvantage card members.
Looking forward, travelers holding or aspiring to acquire AAdvantage credit cards will undoubtedly benefit from these changes as American Airlines and Citi move toward synchronizing their offerings, potentially making flying with American Airlines even more appealing. Only time will reveal the full impact of these strategic shifts within the industry — but for now, the outlook appears promising for both companies and their collective customer base.