American Airlines announced yesterday a renewed partnership with both Citibank and Barclaycard. Both will continue issuing credit cards with AAdvantage mileage rewards as had been the case before the AA/USairways merger.
All issued cards will be Mastercard branded, both with Citi and Barclays.
The split up will work as follows: Citi will continue offering its lineup of cards on aa.com, direct mail, and in the Admirals lounges. Barclay’s, on the other hand, will offer its card lineup in airports and during flights beginning in January 2017.
American Airlines said in a statement, “our new dual-issuer arrangement is the first of its kind in the U.S. airline industry, and was enabled by the progressive partnership with Citi, Barclaycard US and MasterCard.”
How does this translate into dollars for American? Here’s what it says in the airline’s 8-K filing yesterday (hat tip to Viewfromthewing):
As a result of the new arrangements announced today, American Airlines Group Inc. and American presently expect consolidated pre-tax income for financial reporting purposes to increase by approximately $200 million in the second half of 2016, $550 million in 2017 and $800 million in 2018, with continued modest improvement in pre-tax income each year beyond, in each case as compared to results expected under the prior credit card arrangements.
This dual-partnership is great news for miles and points enthusiasts as it increases the methods of accruing AA miles through signup bonuses and other card-earning methods. And the competition factor between Citi and Barclay’s helps too. Good news.
