Is the American Aadvantage Miles Credit Card “Double Play” Going Away?

An interesting opportunity for those who fly American Airlines is that they can take apply for two credit cards that earn American miles and offer significant welcome bonuses. First, there are several cards offered by Citibank that range from a no annual fee card to a deluxe card that includes access to American Airlines’ Admirals Clubs. These are the most familiar and account for the largest share of American Airlines’ co-branded card business. However, there are also cards offered by Barclays Bank with some having similar features to the Citibank products.

The offer for the standard, personal Barclays card is unique is that earning the sign-up bonus (SUB) only requires one purchase rather than several thousand dollars of purchases as is common for most travel cards. You can earn the bonus on the Barclays card (currently 60,000 Aadvantage miles) with the simple purchase of a cup of coffee or a candy bar. That one purchase and paying the annual fee ($95) can get you well on your way to your next vacation. When flying, this card offers free checked baggage when flying American and earlier boarding so you can grab that coveted overhead bin space. For ongoing spending, the Barclays card is not particularly strong as it only offers spending bonuses (2X) for American flights. Other purchases generate one mile per dollar.
 
For clients who tend to fly American or plan to fly American, I have recommended that they apply for this card along with one of the Citibank cards. There is nothing preventing you from applying for cards issued by both banks at about the same time and this “double play” can put a lot of miles in your American account very quickly. And, because you earn the Barclay SUB with just one purchase, you do not have to worry about meeting spending thresholds for SUBs (usually several thousand dollars) on two different cards.
 
This two-card arrangement stems from the merger of American Airlines and USAir in 2013. Prior to the merger, the USAir cobranded credit cards were issued by Barclays and American Airlines’ cards were issued by Citibank. While cards from both issuers remained available, each bank was limited to specific marketing channels. The Citibank cards could be marketed online, by direct mail, and in Admirals Clubs. The Barclays cards are the ones that flight attendants promote inflight when you are flying American.
 
After a decade of co-existence between Citibank and Barclays, there are now talks between Citibank and American about forging an exclusive co-branding relationship. If this happens, the Barclays product might disappear (or at least be unable to take on new cardholders) along with the opportunity to “double dip” and receive two Aadvantage miles SUBs.

If you fly or plan to fly American, and want to take advantage of its frequent flyer program, it might be worthwhile to pick up the Barclays card sooner rather than later. As mentioned above, Barclays is limited in its ability to promote its co-branded card. However, even if Barclays cannot market directly to you (except for the in-flight promotions) you can go to their website and apply for their card.

The consensus among points and miles bloggers is that American miles are worth perhaps 1.5-1.7 cents per mile. That reflects the redemption rates that Ms. Optimizer and I have been getting in recent years. So, the 60,000-mile bonus on the Barclays card could be worth at least $900 and might surpass $1,000 with the right redemption. Not a bad return for a $95 annual fee card and, literally, one minor purchase.



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