Citi Takes Over American Airlines Co-Branded Card Portfolio

American Airlines and Citi have extended their 37-year collaboration for another decade. Effective in 2026, the renewed agreement confirms Citi as the exclusive issuer of American’s AAdvantage co-branded card portfolio in the U.S., ending a decade-long partnership between the airline and Barclays.

American Airlines’ partnership with Citi dates back nearly four decades, a tenure marked by pioneering initiatives, including the first airline loyalty program and the industry’s inaugural co-branded credit card.

Photo: Courtesy of American Airlines

“The strength of our relationship with Citi has enabled us to deliver first-class products and customer service to millions of AAdvantage cardmembers,” said Robert Isom, CEO of American Airlines. “This expanded partnership will unlock even more value and exciting new benefits for all of our customers in the future.”

The renewal of this partnership comes as American Airlines ends its split issuance arrangement that began in 2013 following its merger with U.S. Airways, during which Barclays maintained its role as a co-branded card partner.

Citi’s Acquisition of Barclays’ Portfolio

As part of the agreement, Citi will acquire the co-branded portfolio between Barclays and American Airlines, transitioning cardmembers to Citi’s portfolio beginning in 2026.

American Airlines AAdvantage Barclays Card / Photo: Courtesy of American Airlines

The airline says the process is designed to be seamless, with Barclays cardholders continuing to enjoy their current benefits during the transition. Additional details will be announced in the coming months.

This acquisition significantly strengthens Citi’s Branded Cards business and its U.S. Personal Banking segment, tapping into an expanded cardmember base poised to accelerate growth.

“We’re now excited to take this relationship to greater heights through an expanded customer base and a series of new loyalty and reward offerings,” said Jane Fraser, CEO of Citi. “Together, we’re creating more opportunities to welcome new cardmembers, deepen our connection with our existing ones, and make our co-branded card the clear favorite in everyone’s wallets.”

Alignment for Enhanced Rewards

According to American Airlines, the renewed agreement introduces an innovative alignment between Citi’s ThankYou rewards program and the AAdvantage loyalty program, designed to amplify value for customers of both Citi-branded and co-branded cards.

As the exclusive issuer, Citi will oversee all American Airlines card acquisition channels, including inflight and airport promotions, enabling a unified approach to customer engagement.

American Airlines / Photo: Courtesy of American Airlines

During the airline’s recent earnings call, executives highlighted the impressive performance of their co-branded credit card program. The airline stated, “Thanks to a new agreement and taking into account our current projections—which encompass prevailing macroeconomic conditions, efforts in acquiring new customers, and various growth initiatives within the program—American Airlines anticipates that cash remuneration from its co-branded credit card partnership and other affiliates will increase by roughly 10 percent each year.”

This optimistic outlook accentuates the airline’s commitment to enhancing its financial partnerships and customer engagement strategies.

The Citi/AAdvantage card portfolio already offers a comprehensive range of products tailored to diverse needs, from no-annual-fee options like the AAdvantage MileUp Card to premium offerings such as the Citi/AAdvantage Executive World Elite Mastercard.

Business owners can also benefit from the Citi/AAdvantage Business World Elite Mastercard.

What This Means for Cardholders

For current and prospective cardholders, the expanded partnership promises enhanced loyalty benefits and a wider rewards ecosystem.

With Citi taking on exclusive card issuance, customers can anticipate innovative offerings and stronger integration of loyalty programs aimed at improving their travel and financial experiences.

Photo: Courtesy of American Airlines

From the perspective of the airline industry, it is increasingly clear that co-branded credit card agreements have become a crucial component of the balance sheet. These partnerships generate billions of dollars in revenue and account for a significant portion of total profits.

In a recent episode of The Airshow podcast, Brett Snyder, Jon Ostrower, and Brian Sumers highlighted that without the substantial revenues provided by credit card companies, the top-performing airlines—Delta, United, and American Airlines—would not be as financially healthy as they are today.