Summary by Moomoo AI
American Airlines and Citi have announced a 10-year exclusive partnership for AAdvantage co-branded credit cards in the U.S., starting January 2026. The agreement includes Citi's acquisition of the Barclays American Airlines card portfolio. Based on current projections, American expects cash remuneration from co-branded cards and partners to grow approximately 10% annually from the current $5.6 billion.The company has also updated its Q4 2024 guidance, projecting improved financial performance. Total revenue per available seat mile (TRASM) is expected to be flat to up 1% YoY, while cost per available seat mile excluding fuel (CASM-ex) is anticipated to increase 5-6%. The adjusted earnings per diluted share forecast has been raised to $0.55-$0.75, exceeding previous guidance of $0.25-$0.50.The expanded partnership aims to create additional value through innovative alignment between Citi ThankYou and AAdvantage programs. As remuneration approaches $10 billion annually, American projects approximately $1.5 billion in pre-tax income benefits compared to 2024 levels.
