American Airlines selects Citi as its exclusive credit card partner, ending its partnership with Barclays.

• Due to its 2013 merger with US Airways, American Airlines has partnered with Citi and Barclays to offer co-branded credit card deals.
• Co-branded credit card deals bring in billions for airlines and drive profitability.
• The new deal with Citi takes effect in January 2026.

Citigroup has inked a long-awaited credit card deal with the company, ending its partnership with Barclays.

American Airlines anticipates a 10% annual increase in payments received from its co-branded credit card and other partnerships, as it reported $5.6 billion in revenue from these sources in the 12 months ending September 30.

Barclays cardholders will be transitioned to Citi by American in 2026, but specifics were not disclosed.

The airline's current partnerships are a result of its 2013 merger with US Airways. Citi will assume responsibility for credit card sign-up promotions, including those on flights and at airports.

In September, CNBC reported that the airline was in discussions to choose Citibank as its sole credit card provider.

Frequent flyer miles sold to banks are essential for airlines' profits, generating billions of dollars in revenue. In exchange, banks gain access to a loyal customer base that is motivated to use their cards for both travel and everyday purchases.

Delta expects to earn $10 billion from its co-branded credit card partnership with American in the long term.

The company's revenue forecast for the fourth quarter was raised, and American shares increased more than 6% in premarket trading after the new Citi deal was unveiled.

On Wednesday, American Airlines made its announcement.