What the American Airlines credit card actually does
The American Airlines credit card is a co-branded card issued by Citi that earns points on purchases, with those points redeemable for American Airlines flights, seat upgrades, and other travel expenses. You get a sign-up bonus of miles (the exact number changes by offer), an annual fee that ranges from $0 to $450 depending on which version you choose, and bonus miles on everyday purchases like groceries and gas.
The card does not give you free flights or may provide upgrades. It gives you a way to accumulate miles faster than you would by flying alone, and a way to spend those miles on tickets or perks. Whether that trade-off makes sense depends on how much you actually fly, how much you spend on the card, and whether you can use the miles before they expire.
Key Takeaways
- American Airlines offers multiple versions of its credit card, ranging from no annual fee to $450 per year, each with different earning rates and perks.
- The sign-up bonus is the biggest when ready value, but you must spend a set amount within a set timeframe to receive it.
- Miles earned on the card do not expire as long as you have account activity with American Airlines at least once every 18 months.
- The card's value depends entirely on whether you can actually use the miles you earn before they expire or before the annual fee outweighs the benefits.
The different versions and their annual fees
American Airlines offers several versions of the card. The no-annual-fee version earns a lower rate of miles per dollar spent and comes with minimal perks beyond the earning rate. The mid-tier cards ($95 to $150 annually) typically include benefits like a free checked bag, priority boarding, and higher earning rates. The premium card ($450 annually) adds lounge access, statement credits, and the highest earning multipliers.
The annual fee is charged to your account once per year, usually on your card anniversary. You pay it whether you use the card that month or not. Before opening any version, calculate whether the perks and earning rate will save you money compared to what you would spend on flights and fees without the card.
How the sign-up bonus works
When you open the card, you receive a sign-up bonus stated in miles — often 50,000 to 75,000 miles depending on the current offer. To receive this bonus, you must spend a minimum amount (typically $2,000 to $5,000) within a set window (usually three months). If you do not reach that spending threshold by the important date, you do not receive the bonus miles.
The sign-up bonus is usually the largest chunk of miles you will earn in the first year. A 50,000-mile bonus can cover a domestic round-trip ticket on American Airlines, depending on the route and how far in advance you book. This is why the bonus matters more than the annual fee for most people deciding whether to open the card.
Earning rates on everyday purchases
The card earns miles at different rates depending on what you buy. Most versions earn 1 mile per dollar on most purchases, 2 miles per dollar on American Airlines tickets and certain travel purchases, and sometimes bonus categories like 3 miles per dollar on dining or gas (though these vary by card version and change periodically).
The earning rate matters most if you plan to keep the card open for years and use it regularly. If you spend $20,000 per year on the card at a 1-mile-per-dollar rate, you earn 20,000 miles annually. At a 2-mile-per-dollar rate on the same spending, you earn 40,000 miles. Over five years, that difference adds up to 100,000 miles — potentially a free round-trip ticket or more.
When miles expire and how to keep them active
American Airlines miles do not expire if you have any account activity with the airline within 18 months. Account activity means flying on American, earning miles through the credit card, or even just logging into your AAdvantage account. If you do nothing for 18 months, your miles expire and you lose them.
This matters because it means you cannot open the card, earn the sign-up bonus, and then ignore it for two years. You need a realistic plan to use or maintain the miles. If you fly American at least once every 18 months or use the card regularly, expiration is not a concern. If you do not, the miles you earn will eventually disappear.
Comparing this card to other travel cards
Other credit card companies offer similar products — United, Delta, Southwest, and general travel cards from Chase, American Express, and others. The main difference is which airline you fly most often and whether you value airline-specific perks like free checked bags and priority boarding.
If you fly American Airlines regularly and value the free checked bag and priority boarding that come with the mid-tier cards, the American Airlines card may save you money compared to a general travel card. If you fly multiple airlines equally, a general travel card that earns points redeemable across many airlines might be more useful. If you rarely fly, the annual fee is unlikely to pay for itself.
What to consider before opening the card
Opening a credit card triggers a hard inquiry on your credit report, which can temporarily lower your credit score by a few points. If you are planning to explore for a mortgage or car loan within the next few months, opening a new card might not be the right time.
Also consider whether you can actually spend enough to hit the sign-up bonus within the timeframe. If the card requires $3,000 in spending within three months and you typically spend $500 per month, you will not reach the bonus. Do not open the card hoping to meet the threshold — only open it if you know you will spend that amount anyway.
Frequently Asked Questions
Can I transfer American Airlines miles to another airline?
American Airlines miles cannot be transferred to other airlines or redeemed for cash. You can only use them for American Airlines flights, seat upgrades, baggage fees, or other American Airlines services. This is why it matters whether you actually fly American — the miles have no value outside that ecosystem.
What happens if I close the card after getting the sign-up bonus?
You keep the miles you earned, but closing the card stops you from earning more miles on purchases. If you close the card and do not fly American or use another way to earn miles within 18 months, your miles will expire. Many people open the card for the bonus, use it for a year or two, then close it — as long as they use the miles before they expire, this works fine.
Do I have to be an American Airlines frequent flyer to open this card?
No. You can open the card without an existing AAdvantage account. Citi will create one for you when you open the card. However, you should already be flying American Airlines or planning to, because the miles are only useful if you can redeem them on that airline.
How much is a typical flight worth in miles?
Domestic round-trip flights on American Airlines typically cost between 25,000 and 60,000 miles depending on the route, how far in advance you book, and the time of year. Premium cabin flights cost significantly more. The exact value varies constantly, so check American's website to see what flights cost in miles before deciding whether the card makes sense for you.
Is the annual fee worth it if I only fly once a year?
Probably not. If you fly once per year and earn 25,000 miles from that flight, plus maybe 5,000 miles from card spending, you have 30,000 miles annually. A $95 annual fee on the mid-tier card means you need those miles to be worth at least $95 to break even. One domestic round-trip ticket is usually worth more than $95 in value, so it could work — but only if you actually use the miles and do not let them expire.