The news: Citi and American Airlines debuted the Citi AAdvantage Globe Mastercard, a mid-tier travel credit card with a $350 annual fee, per a press release.
Some travel perks include:
- Lounge access. Cardholders receive four Admirals Club Globe passes every calendar year.
- Companion pass. Valued at $99, members receive one companion certificate for a domestic round-trip flight in the main cabin.
- Flight benefits. Cardholders receive a $100 in statement credits for in-flight purchases on qualifying flights, one free checked bag for domestic flights, and preferred boarding status.
- Splurge Credit. Cardholders can get $100 in statement credits for up to two AAdvantage Hotel bookings or 1stDibs, Future Personal Training, and Live Nation purchases.
- Turo credit. Members receive $30 credits per each eligible Turo ride, up to $240 a year.
- Citi Entertainment. Cardholders can anticipate exclusive offers through Citi’s platform across arts, sports, and other entertainment.
- Mastercard Priceless. Cardholders gain access to cultural, culinary, and entertainment opportunities.
- Mastercard World Legend. Members receive priority reservations at coveted restaurants and high-end tickets for music, theater, and sport events.
- Cardholders can also earn points multipliers on things like AAdvantage hotel bookings (6X) and an extra 5,000 points on up to four American Airlines flights a year.
Why this matters: As Citi gets ready to take over as the sole American Airlines issuer, the bank can thoughtfully craft a travel portfolio to target every kind of traveler.
While not every frequent flier can justify the $595 yearly fee for Citi’s Strata Elite, the AAdvantage Globe Mastercard could appeal to those looking for elevated perks without the premium price tag.
Our take: With airlines revising their year-end forecasts optimistically, issuers have a chance to get in on lucrative travel volume.
While front-of-cabin sales have benefited from wealth-effect spending, mid-tier travel cards could help boost main cabin sales with slightly pared down reward structures.
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