American Airlines has announced the launch of a new mid-tier credit card which would give holders a series of travel perks including lounge benefits, preferred boarding, and a free checked bag.
Why It Matters
Amid growing economic uncertainty and a slowing job market, many Americans are rethinking their holiday plans this year. After reporting a record-breaking holiday travel season in 2024, only 21 percent of U.S. adults said they plan to stay in a hotel, short-term rental, or fly for the Thanksgiving and December holidays this year, according to a new Bankrate survey. That was down from 27 percent in 2024.
“Ever since the pandemic, we’ve seen tremendous travel demand. But that appetite is starting to wane due to the cumulative effects of high inflation, high interest rates, rising debt and diminishing savings,” Ted Rossman, Bankrate senior industry analyst, said in a statement shared with Newsweek.
Holiday travelers, based on the survey, prefer to use credit cards, with 63 percent using them to pay while on the move—showing that American Airlines’ is tapping into a growing necessity for Americans.
What To Know
American Airlines’ new card, announced on Sunday and launched in cooperation with Citi and Mastercard, is called the Citi/AAdvantage Globe Mastercard. It has an annual fee of $350 and will give customers up to $120 in credit every four years for a Global Entry to TSAPrecheck application, among other benefits.
Additionally, the company promises that it can unlock over $750 in value, including four Admirals Club Globe passes (each valid for 24 hours) opportunities to earn AAdvantage miles and Loyalty Points toward status and more.
For cardholders and up to eight companions traveling with them, the first checked bag would be free on domestic American Airlines flights and they would be able to enjoy preferred boarding, also known as Group 5 boarding.
The new card represents a middle option between the airline’s Platinum Select card—which costs $99 a year—and its Executive Platinum card—which costs $595 a year—serving those customers who travel more than the occasional holiday-goer but less than frequent flyers.
What People Are Saying
Scott Long, American’s Senior Vice President of AAdvantage, said of the new card in a press release: “It’s built for the travelers who want more from every mile—with elevated benefits, faster path to status and powerful earning potential. This card reflects our commitment to making travel smarter, more flexible and more rewarding at every step of the journey. 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.”
John Levitsky, Mastercard’s U.S. co-president, said in a press release: “With American and Citi, we’re helping travelers access globally connected benefits in categories they appreciate most: dining, entertainment and of course, travel.”
What Happens Next?
American Airlines started the year with some difficulties, reporting a net loss of $473 million in the first quarter of 2025 due to higher operating expenses, according to Simple Flying. It was the worst result among U.S. airlines, with Delta and United faring better than American.
But the company’s leadership expressed confidence in the future of the airline, saying they were well positioned to overcome the challenges faced by the entire industry. American is also optimistic about the new card, citing data that says that 96 percent of travel cardmembers are likely to stay loyal to one airline if they can earn more miles or Loyalty Points toward status.
If this bet pays off, it would help American Airlines stave off its domestic competition—which so far has remained unbeatable. During an earnings call earlier this month, United’s CFO Mike Leskinen spoke of an industry split between “two brand loyal, structurally profitable and revenue diverse airlines [Delta and United], which together will represent about 100 percent of industry profits in 2025.”
