How much will American Airlines' loyalty program revenue increase?

The AAdvantage program's annual loyalty revenue is projected to increase from $5.6 billion to nearly $10 billion.

What is the impact of the new Citi deal on American Airlines?

The 10-year co-brand agreement with Citi is expected to add approximately $1.5 billion in pre-tax profit at maturity.

Is American Airlines a good investment despite its debt?

While debt is a concern, improving cash flow and a strong loyalty program present a high-risk, high-reward opportunity.

Home / Business and Economy / American Airlines Loyalty Program Fuels Growth

American Airlines Loyalty Program Fuels Growth

6 Dec, 2025

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Summary

AAL's loyalty program revenue to nearly $10 billion annually.
New Citi deal adds $1.5 billion in pre-tax profit at maturity.
Airline shows improving debt and rising cash flow trends.

American Airlines Group Inc. (AAL) is positioned as an undervalued cash-flow engine, with its financial resilience increasingly anchored by its profitable AAdvantage loyalty program. Despite a substantial debt burden, the company generates significant revenue and exhibits robust cash flow, serving millions of passengers annually.

The airline recently secured a 10-year exclusive co-brand agreement with Citi, set to commence in 2026 and replace Barclays. This strategic partnership is anticipated to elevate annual loyalty revenue from $5.6 billion to nearly $10 billion, contributing an estimated $1.5 billion in pre-tax profit once fully realized. This strengthens AAL's financial stability against operational and economic uncertainties.