American Airlines has ended its co-branded credit card partnership with Barclays and will remain exclusive to Citigroup, starting in January 2026. The airline’s current deal with Barclays generates around $5.6 billion annually, but it expects this figure to grow 10% a year.
The move comes after American Airlines completed a long-awaited credit card deal with Citigroup, allowing the bank to take over sign-up promotions such as those on flights and at airports. Citi will now handle these promotions, while American Airlines transitions its Barclays cardholders to Citi in 2026.
Co-branded credit card deals are crucial for airlines, bringing in billions of dollars and driving profits. By partnering with Citigroup exclusively, American Airlines aims to increase revenue and drive profitability. This move is part of the airline’s efforts to optimize its partnerships, following a successful partnership with US Airways that started in 2013.
Delta Air Lines’ co-branded credit card program outperformed American’s, generating nearly $7 billion last year and expected to reach $10 billion in the long term. The news has boosted American Airlines shares by over 6% in premarket trading, following an announcement of a revised revenue forecast for the fourth quarter.
Source: https://www.cnbc.com/2024/12/05/american-inks-new-credit-card-deal-with-citi-dropping-barclays-as-second-partner.html