Tag Archives for citibank.
Seeing Emirates transfers disappear for a time from both Chase and American Express, following the announcement of a devalued transfer ratio from Citi, suggests a move by Emirates rather than by any one bank.
Along with announcing a deal with Citibank that will make them the exclusive issuer of U.S. American Airlines AAdvantage credit cards, the carrier filed an SEC 8-K that offers some limited detail on the financial affects of the 10-year pact.
American Airlines and Citibank have entered into an agreement to extend their cobrand credit card agreement by 10 years. This deal pushes out Barclays, and makes Citi the sole issuer of American Airlines credit cards in the U.S. starting in 2026.
We will start to see points transfers from Citibank to American AAdvantage and likely more.
Barclays just isn’t big enough to bid effectively for the whole American AAdvantage card portfolio. Citibank had the chance to take the whole thing, and also to offer points transfers to AAdvantage as part of its ThankYou-brand card product suite. But they balked at the price. Ultimately American got the biggest deal possible by leaving two card issuers in place. That could change.
You get this card for the bonus and that’s worth it, you get an Admirals Club membership, and you get loyalty point bonuses if you earn enough loyalty points in the AAdvantage program (you do not have to spend on this card to earn these). It’s probably worth charging an Avis rental to the card. And then you may keep it if you want to retain Admirals Club and the loyalty point bonuses.
Several customers are suing American Airlines after their AAdvantage accounts were shut down. They used invitations to apply for Citibank credit cards that circumvented rules limiting how often one could get a new card bonus. People lost millions of miles.
There’s a lawsuit. American has responded. And they advance a pretty draconian theory.
American Airlines engaged in mass shutdowns of AAdvantage accounts four years ago over customers who used invitations to apply for Citibank credit cards which didn’t say circumvented rules limiting how often one could get a bonus. People lost millions of miles. And there’s a new lawsuit against American Airlines over taking these miles away.
Answering this question starts with looking at the transfer partners each program has (they’re all different), which partners provide the most value, and also how flexible each currency is when you want to use your points directly against a paid ticket or hotel night rather than redeeming for a free flight or free hotel award night.
You no longer need to spend any money on this card to earn its Loyalty Point bonuses, and the potential to earn these bonuses has doubled. What’s more, it appears that new cardmembers receive the bonuses right away if they’ve already hit the 50,000 and 90,000 Loyalty Point thresholds this year.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
