Mastercard and American Airlines Extend Partnership to Help Travel Rewards Fly Higher

American Airlines and Mastercard will continue their nearly 40-year collaboration securing Mastercard as the exclusive network partner of the airline’s co-branded credit cards, according to a press release announcing the deal.

The deal is a blockbuster in the payments space. American Airlines is the largest airline in the U.S. in terms of seat capacity, and Mastercard is the second-largest card network in the U.S., second only to Visa in terms of purchase volume. 

The partnership exemplifies how two businesses can join forces to elevate cardholder experiences and increase the value of their respective brands. It also provides more evidence to credit card issuers that travel rewards can be a valuable incentive in today’s payments market.

American Airlines offers more seats to travelers than any other airline in the U.S.

The two companies aim to enrich the AAdvantage program, which is the name of the loyalty system American Airlines operates.

Customers can join the AAdvantage program for free and unlock travel rewards by using their cards. To further entice people to apply for a new credit card, American Airlines is advertising a “summer special” that allows new cardholders to earn up to 80,000 bonus miles for a limited time.

Long lines, flight delays, and cramped terminals can combine to create a frustrating experience for travelers. Companies, including those operating in the credit card arena, that can make travel a little more pleasant for people may make an impact on them that pays dividends for many years.

A recent Forbes report reveals that, “in today’s competitive business landscape, loyalty programs are more than just a marketing tool — they’re a critical element of customer retention and brand engagement.”

Mastercard and American Airlines have said they plan to improve loyalty offerings through their combined efforts.

Robert Isom, CEO of American Airlines, said in the press release that the two companies “are rewarding our mutual customers with travel experiences that make their journeys truly special.”

Cardholders who own an AAdvantage card will have new ways to exchange miles they’ve accumulated for experiences under the renewed partnership.

Mastercard offers people unique experiences through its Priceless platform. Current offers include opportunities to explore culinary delights in Prague and secure front-row tickets to a magic show in New York.

Not every issuer has the budget to offer its cardholders one-of-a-kind experiences. But partnerships may allow issuers of various sizes and budgets to link their customers with opportunities to access luxury rewards.

Mastercard’s CEO, Michael Miebach, sees value in offering enhanced rewards programs and experiences to cardholders. And he doesn’t see that value going away any time soon, according to his remarks in the press release. 

“Looking to the future, we’ll continue to bring our expanded suite of products and services to deliver what cardmembers want: personalized offers, valuable rewards, fraud protection and opportunities to explore their passions,” Miebach said.