An American Airlines plane parked at LaGuardia Airport in New York City on November 27, 2024.
Shannon Stapleton Reuter
american airlines has signed a long-awaited credit card deal with Citigroup, leaving its other partner, Barclays.
The company announced Thursday that it expects payments it receives from co-branded credit cards and other partners to grow 10% annually. In the 12 months ended Sept. 30, American Airlines brought in $5.6 billion from these deals.
American Airlines said it would begin migrating Barclays card members to Citi in 2026, but did not provide details.
The company’s current partnership stems from its 2013 merger with US Airways. Citi will take over credit card sign-up promotions that run on planes and at airports.
CNBC reported in September that the company was in talks to select Citi as its exclusive credit card partner.
Co-branding agreements are extremely important for airlines. Airlines sell frequent flyer miles to banks, bringing in billions of dollars and driving airline profits. In return, banks can entice consumers and incentivize them to swipe their cards not only for travel but also for everyday purchases.
delta airlines They earned more than Americans in that program. Last year, Delta Air Lines generated nearly $7 billion in revenue from co-branded credit card partnerships. american expressand the carrier expects it to grow to $10 billion in the long term.
U.S. shares rose more than 6% in premarket trading after the company announced a new deal with Citi and raised its fourth-quarter revenue forecast.
Correction: American Airlines made the announcement Thursday. A previous version of this article incorrectly stated what was included that day.
