American Airlines has struck a long-awaited bank card take care of Citigroup and exited its other partner, Barclays.
The airline said Thursday that it expects payments it receives from its co-branded bank card and other partners to extend by 10% per yr. In the 12 months ended Sept. 30, American earned $5.6 billion from these deals.
American said it could begin transitioning its Barclays cardholders to Citi in 2026, but didn’t provide details.
Citi will handle bank card registration promotions, resembling on flights and at airports, American said.
The airline's current partnerships date back to its merger with US Airways in 2013.
CNBC reported in September that the airline was in talks with Citi to make the bank its exclusive bank card partner.
Co-branding offerings are critical for airlines. Airlines sell frequent flyer miles to banks, generating billions of dollars and increasing airline profits. In return, banks receive a pretty customer audience who’ve an incentive to make use of the cardboard not just for travel, but in addition for on a regular basis purchases.
Delta Air Lines has outperformed American in its co-branded bank card program. Last yr, Delta brought in nearly $7 billion through its partnership with Delta American Expressand the airline expects that quantity to grow to $10 billion in the long run.
American stocks rose greater than 6% in premarket trading after the corporate announced the brand new Citi deal and raised its fourth-quarter revenue forecast.
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