Citi points now transfer to American AAdvantage. This at the same time the bank introduced the new Citi Strata Elite^SM Card (See rates and fees.) which even comes with American Airlines Admirals Club passes. Here’s why American Airlines flyers should look to the new Citi Strate Elite.

We knew American AAdvantage as a transfer partner was likely in the works once Citi gained exclusivity in issuing AAdvantage cards. That doesn’t start until next year. But the transfer partnership is already live.

Transfers were on the table the last time Citi negotiated a deal with American, but Citi wouldn’t pay for the package that included transfers and exclusivity (hence the Barclays-issued card). This time they paid up. And it’s a huge boost to the value of Citi ThankYou Rewards.

• If your goal is AA miles, Citi branded cards earn those faster, since the earn rates are better.

• If your goal is AA benefits, get AA cards but still spend on the Citi branded cards

• If your goal is AA status, (loyalty points) then you want to spend on a Citi AA card – I have both the Citi® / AAdvantage Business^TM World Elite Mastercard® and the Executive card that comes with lounge membership. [See rates and fees]

Unbonused spend the new Citi Strata Elite^SM Card earns 1.5x while Citi Executive earns 1x. And the Citi points transfer to American. You earn points faster and have greater flexibility with Strata Elite.

Indeed, a portfolio of Citi cards earns points in accelerator categories far faster than with the American cards and card earn a minimum of 2 points per dollar on otherwise-unbonused spend (by including Double Cash).

Citibank’s points can now be transferred to:

• oneworld: American Airlines AAdvantage, Cathay Pacific Asia Miles, Malaysia Airlines Enrich, Qantas Frequent Flyer, Qatar Airways Privilege Club
• Star Alliance: Avianca LifeMiles, EVA Air Infinity MileageLands, Singapore Airlines KrisFlyer, Thai Airways Royal Orchid Plus, Turkish Airlines Miles & Smiles
• SkyTeam: Aeromexico Club Premier, Air France KLM Flying Blue, Virgin Atlantic Flying Club
• Non-alliance: Emirates Skywards, Etihad Guest, JetBlue TrueBlue
  
• Hotels: Leading Hotels of the World Leaders Club, Accor ALL – Accor Live Limitless, Choice Hotels Choice Privileges, Preferred Hotels I Prefer, Wyndham Hotels Wyndham Rewards

Without Ameircan AAdvantage, the ThankYou points program was a bit of an also-ran. It lacked a strong U.S. airline, including just JetBlue. And while it has a number of hotel programs, it doesn’t have the top tier ones for U.S. footprint.

Now, though, it’s the only bank rewards currency that transfers to American. No bank has a better oneworld partner. And it’s top tier (remember, Amex’s top U.S. airline is Delta whose points are worth far less than competitors).

But it makes their co-brand American Airlines cards somewhat more niche, since those are really valuable only for their American Airlines travel perks rather than as the primary way to earn AAdvantage miles.

Citi Strata Elite^SM Card