What an American Airlines credit card does
An American Airlines credit card is a co-branded card issued by a bank (usually Citi or Barclays) that earns miles toward American Airlines flights instead of cash back. When you use the card to buy anything, you earn a set number of miles per dollar spent. You can also earn a large bonus of miles just for opening the account and meeting a spending threshold in the first few months.
The card itself costs money to own — an annual fee ranging from $0 to $550 depending on which version you choose. Some versions come with perks like a free checked bag, priority boarding, or a statement credit toward seat upgrades. The miles you earn can be redeemed for flights on American Airlines or partner airlines, or sometimes for other travel purchases through their travel portal.
These cards are designed for people who fly American Airlines regularly or plan to. If you fly once every few years, the annual fee and the miles you earn will likely not be worth it. If you fly American multiple times a year, the perks and earning rate can offset the cost.
Key Takeaways
- American Airlines credit cards earn miles instead of cash back, and those miles can only be used for flights or travel purchases, not converted to money.
- The annual fee ranges from $0 to $550, and some cards waive the first year or offer perks like free checked bags that may offset the cost.
- You earn a large bonus of miles for opening the account and spending a certain amount in the first few months — this bonus is often the main reason people open these cards.
- Miles have no may provide value and can be devalued by the airline at any time, so the redemption value of your miles may change after you earn them.
- You need to compare the annual fee, earning rate, and perks against your actual flying habits to know whether the card makes financial sense for you.
The different American Airlines cards and their annual fees
Citi and Barclays each issue multiple versions of the American Airlines card, and the annual fee and perks change based on which one you choose. The no-annual-fee version exists but earns fewer miles per dollar and comes with no perks. The mid-tier cards ($95 to $150 annual fee) typically include a free checked bag, priority boarding, and a statement credit toward seat upgrades. The premium card ($550 annual fee) adds lounge access, higher earning rates, and more generous credits.
The annual fee is charged every year on your account anniversary, not just once. If you open the card in March, you will be charged the fee again the following March. Some cards waive the first year's fee, which means you have 12 months to decide whether the perks and earning rate are worth paying the fee going forward.
Before you open any card, look up the current offer to see whether the first year is waived and what the opening bonus is. These offers change frequently and vary by how you explore (online, in-branch, or through a referral link).
How the opening bonus works and what it costs
When you open an American Airlines card, you receive a large bonus of miles — often 50,000 to 75,000 miles — if you spend a certain amount within a set timeframe, usually three months. This bonus is the main financial draw of opening the card. A 75,000-mile bonus can be worth $750 to $1,000 in flight value, depending on the routes you fly and how you book.
To earn the bonus, you must meet the spending requirement. This means you need to put that much actual spending on the card — not just authorized user spending, and not balance transfers. If the requirement is $3,000 and you only spend $2,800, you will not receive the bonus. Some people open the card specifically to meet the requirement by paying bills or making planned purchases they would have made anyway.
The risk is that you open the card, fail to meet the spending requirement, and then pay the annual fee for a card that gave you no bonus. To avoid this, calculate whether you can realistically spend the required amount before you explore. If you cannot, do not open the card.
How miles are earned and what they are worth
Once you have the card, you earn miles on every purchase. A card might earn 2 miles per dollar on all purchases, or it might earn 3 miles per dollar on airline and gas purchases and 1 mile per dollar on everything else. The more you spend, the more miles you accumulate. You also earn miles when you fly American Airlines, even if you do not use the credit card.
Miles are not the same as dollars. A mile is worth roughly 1 cent to 1.5 cents when you redeem it for a flight, but the actual value depends on the flight you book. A short domestic flight might be worth 25,000 miles (about $250 to $375), while a long international flight might be worth 100,000 miles (about $1,000 to $1,500). You cannot convert miles to cash, and you cannot transfer them to another person's account (with rare exceptions).
American Airlines can change the number of miles required for any flight at any time. This means the value of the miles you have already earned can drop overnight. If you earn 100,000 miles and plan to redeem them for a specific flight, book that flight as soon as possible rather than waiting, because the price in miles may increase.
Annual fees and perks compared to your actual flying
The main question is whether the annual fee and perks are worth what you will actually use. If you pay a $95 annual fee and the card comes with a free checked bag worth $30 per round trip, you need to fly at least four round trips per year just to break even on the fee. If you fly fewer than four times, the card costs you money.
Some perks have real value only if you use them. A $100 statement credit toward seat upgrades is worthless if you never buy seat upgrades. A lounge pass is worthless if you do not fly enough to visit the lounge. Before you commit to the annual fee, list the perks the card offers and honestly assess which ones you will use.
The earning rate also matters. If you earn 2 miles per dollar and redeem them at 1.2 cents per mile, you are earning 2.4 cents per dollar spent — better than most cash-back cards. But if you earn 1 mile per dollar and redeem at 1 cent per mile, you are earning 1 cent per dollar, which is worse than a basic cash-back card. Calculate the real value of the miles you will earn before you decide the card is worth the fee.
When an American Airlines card makes sense and when it does not
An American Airlines card makes sense if you fly American Airlines at least four to six times per year, you have a clear plan to use the opening bonus, and you will use the perks that come with the card. It also makes sense if you are willing to pay the annual fee for the earning rate alone, even if you do not use the perks.
An American Airlines card does not make sense if you fly fewer than four times per year, you fly multiple airlines equally, or you are not sure you can meet the opening bonus spending requirement. It also does not make sense if you are trying to build credit or if you already have high credit card debt, because opening a new card will lower your credit score slightly and the annual fee will add to your costs.
If you are not sure, do the math. Add up how many times you flew American Airlines in the past year. Multiply that by the value of the perks you would use (free checked bag, priority boarding, etc.). Compare that total to the annual fee. If the perks are worth less than the fee, the card is not a good fit for you right now.
How to compare American Airlines cards to other travel cards
American Airlines cards are not the only travel cards available. Other airlines (United, Delta, Southwest) have their own co-branded cards. General travel cards earn points instead of miles and let you redeem them for flights on any airline. Cash-back cards earn a percentage back on all purchases with no restrictions on how you use the money.
To compare, look at the annual fee, the opening bonus, the earning rate on the categories you spend the most on, and the perks. Then calculate the real value: annual fee minus the value of perks you will use, plus the value of the opening bonus divided by the number of years you plan to keep the card, plus the value of the miles you will earn per year based on your actual spending.
If you fly American Airlines most of the time, an American Airlines card will likely be better than a general travel card because the earning rate is higher and the perks are tailored to American flights. If you fly multiple airlines equally, a general travel card or a cash-back card might be better because you are not locked into one airline.
Frequently Asked Questions
Do I need to have flown American Airlines before to open the card?
No. You can open an American Airlines card without ever having flown the airline. However, you should be reasonably sure you will fly American Airlines in the future, because the card is only useful if you can redeem the miles you earn.
What happens to my miles if I close the card?
Your miles do not disappear when you close the card. They stay in your American Airlines account and you can redeem them for flights anytime. However, if you do not have any American Airlines activity (flights, credit card spending, or miles redemptions) for 24 months, American Airlines may devalue or remove your miles.
Can I use my miles on partner airlines?
Yes. American Airlines has partnerships with other airlines, and you can redeem your miles for flights on those partners. However, partner flights often cost more miles than American Airlines flights for the same distance, so check the price before you book.
What if I do not meet the opening bonus spending requirement?
You will not receive the bonus miles. You will still have the credit card and will still be charged the annual fee. This is why it is important to calculate whether you can realistically meet the spending requirement before you open the card.
Can I get the opening bonus again if I close and reopen the card?
Most credit card companies have rules about how often you can earn the same bonus. American Airlines typically requires you to wait a certain period (often 24 months) before you can earn the bonus again. Check the current terms before you close the card if you think you might reopen it later.