Citi, American Airlines Debut Mid-Tier Co-Brand Card With Premium Travel Perks

American Airlines and Citi have announced the launch of a new mid-tier credit card, the Citi / AAdvantage Globe Mastercard, that brings premium benefits to improve the travel experience for cardholders.

The card, which the companies are releasing in partnership with Mastercard, provides credit card issuers with an example of how they fine-tune their offerings to appeal to distinct market segments.

Citi and American Airlines designed the new card to suit cardholders who vacation more than occasional travelers but not necessarily as much as frequent flyers, according to a press release on the new payment tool. 

Despite concerns over the labor market and the effects of inflation on household budgets, people continue to spend money on travel in the U.S. 

A recent report from the U.S. Travel Association indicates that, in August, spending in the U.S. on travel was up over levels from one year earlier. August was the second month in a row that saw growth in travel spending in the country, according to the association. 

Scott Long, Senior Vice President of AAdvantage at American Airlines, said in the release that the premium value the Citi / AAdvantage Globe Mastercard offers makes it stand out.

“It’s built for the travelers who want more from every mile — with elevated benefits, faster path to status, and powerful earning potential,” Long said. “This card reflects our commitment to making travel smarter, more flexible, and more rewarding at every step of the journey.” 

The new credit card comes with an annual fee of $350, but cardholders can access more than $750 in value through the card’s benefits.

The card offers cardholders four passes per calendar year they can use to enter Admirals Club lounges around the world. The new product is the first mid-tier credit card to include that offering, according to the press release.

A slew of other travel-related benefits come with the Citi / AAdvantage Globe Mastercard, including statement credits customers earn when they use the card for purchases on certain American Airlines flights.

Cardholders can also access preferred boarding and savings on checked bags for themselves and their travel companions through the card. In addition, points bonuses await cardholders following every four qualifying American Airlines trips, according to the press release.

Cardholders can access passes they can use to enter Admirals Club lounges across the globe.

Credit card issuers often take into account what features the market wants in a new card.

“We’ve listened closely to our customers and designed this card to bridge a gap in our portfolio, delivering the benefits they’ve asked for in a way that fits their lifestyle and travel goals,” Long said.

Issuers can also leverage relationships with business partners to enhance the value of the card programs they offer and more effectively meet customer needs. 

The Citi / AAdvantage Globe Mastercard is the first new co-branded card to come out of the union between Citi and American Airlines since the two companies expanded their partnership. 

“This is a clear example of how our strategic relationship allows us to bring products to market that tap into the emerging needs and desires of today’s travelers,” Pam Habner, Head of U.S. Branded Cards and Lending at Citi, noted in the release.