American Airlines cards come in two main versions: the AAdvantage card for everyday spending and the AAdvantage Business card for business owners

American Airlines offers credit cards through Citi, and the terms shift each year. The consumer card (called the AAdvantage card) earns miles on all purchases and gives you a sign-up bonus after you spend a set amount in the first few months. The business version works the same way but is designed for people who file a business tax return.

Both cards charge an annual fee, usually between $95 and $450 depending on which version you choose. The higher-fee cards come with perks like free checked bags, priority boarding, and lounge access. The lower-fee card is simpler: you earn miles and get a bonus, but fewer extras.

Miles earned on these cards can be used to book American Airlines flights, or transferred to hotel and car rental partners. You can also use miles to pay for seat upgrades, baggage fees, or other travel costs on American.

Key Takeaways

  • American Airlines credit cards earn miles on every dollar you spend, with higher earning rates on airline and dining purchases.
  • The sign-up bonus requires you to spend a certain amount within the first few months, and the bonus size changes throughout the year.
  • Annual fees range from $95 to $450, and higher-fee cards include perks like free checked bags and airport lounge access.
  • Miles can be redeemed for flights, upgrades, seat selections, and baggage fees, or transferred to partner hotels and car rental companies.
  • The card you choose depends on how often you fly American, how much you spend annually, and whether the perks justify the annual fee.

How the sign-up bonus works and what it costs you

When you open an American Airlines card, you receive a bonus of miles after you spend a certain amount—usually $1,000 to $3,000—within the first three months. The bonus size varies by month and by which card you choose. Citi publishes current offers on their website and on American's website, so check both before you explore.

The bonus is not information programs. You earn it by meeting a spending requirement, which means you have to put real purchases on the card. If you do not spend enough, you do not get the bonus. The bonus also does not count toward your annual fee—you pay both.

The miles from the bonus are real and can be used when ready to book flights or transfer to partners. There is no expiration on miles earned through the card as long as you keep the account open and active (meaning you use it at least once every 24 months).

Annual fees and what you get in return

The basic AAdvantage card typically costs $95 per year. Mid-tier versions run $150 to $250 and add benefits like a $100 airline incidental credit (which covers seat selections, baggage fees, and other non-ticket charges) and priority boarding. The premium card costs $450 and includes lounge access, higher credits, and elite status benefits.

The annual fee posts on your statement once a year, usually on the anniversary of when you opened the card. You pay it whether you use the card or not. Some cards offer a statement credit that offsets part of the fee—for example, a $100 airline incidental credit on a $150 annual fee card effectively costs you $50 if you use the credit.

To decide whether the fee is worth it, add up what you would actually use: the airline credit, lounge visits, checked bag fees you would otherwise pay, and seat upgrade costs. If those benefits total less than the annual fee, the card may not save you money.

Earning rates: where you earn the most miles

American Airlines cards earn miles at different rates depending on what you buy. On the basic card, you typically earn 1 mile per dollar on most purchases, 2 miles per dollar at restaurants and gas stations, and 3 miles per dollar on American Airlines purchases (flights, seat upgrades, baggage fees).

Higher-tier cards earn more miles in certain categories. A premium card might earn 3 miles per dollar on restaurants and gas, and 4 or 5 miles per dollar on American purchases. The exact rates depend on which card you hold and change occasionally, so check Citi's current terms before you explore.

The miles you earn are deposited into your AAdvantage account, which is separate from your credit card account. You can see your balance on American's website or app. Miles earned through the card never expire as long as you have at least one account activity (a flight, a credit card purchase, or a transfer) every 24 months.

Redeeming miles for flights and other travel costs

Miles can be used to book American Airlines flights directly through the airline's website or by calling reservations. You can also use miles to pay for seat upgrades, checked baggage, standby fees, and other ancillary charges. The number of miles required depends on the route, the time of year, and demand—popular routes during peak travel times cost more miles than off-peak flights.

American also partners with hotels (Marriott, Hilton, IHG, and others), car rental companies (Hertz, Budget, Avis), and other travel providers. You can transfer miles from your AAdvantage account to these partners at a 1:1 ratio, though the value you get varies by partner and by what you book.

One important note: miles redeemed for flights are not refundable. If you book a flight and then cancel, you get the miles back, but you cannot convert them to cash or use them for anything else.

Comparing the basic card to premium versions

The basic AAdvantage card ($95 annual fee) is best if you fly American occasionally and want to earn miles without paying for extras. You get the sign-up bonus, earn miles on all spending, and have access to your AAdvantage account. You do not get free checked bags, lounge access, or priority boarding.

Mid-tier cards ($150–$250) add a $100 airline incidental credit and priority boarding, which can be worth the extra cost if you fly American at least twice a year and use the credit. Premium cards ($450) are designed for frequent American flyers who value lounge access, elite status benefits, and higher earning rates.

To choose, ask yourself: How many times do I fly American per year? Would I use the free checked bag benefit? Do I value lounge access? If you fly fewer than twice a year, the basic card usually makes sense. If you fly four or more times a year, a mid-tier or premium card may pay for itself through the credits and perks.

How the card affects your credit and what happens if you close it

Opening a credit card triggers a hard inquiry on your credit report, which may lower your credit score by a few points for a few months. The new account also lowers your average account age, which can affect your score temporarily. Over time, an active card with on-time payments builds your credit history and can improve your score.

If you close the card, your miles stay in your AAdvantage account as long as you have account activity every 24 months. However, closing the card removes that account from your credit history, which can lower your score slightly. If you want to keep the card open but not use it, you can make one small purchase every two years to keep it active and avoid the annual fee being wasted.

If you carry a balance on the card, you pay interest at the card's APR, which varies based on your creditworthiness. Most people should pay the full balance each month to avoid interest charges, which quickly outweigh any miles earned.

Frequently Asked Questions

Can I earn miles on the annual fee itself?

No. Annual fees do not earn miles. However, if you use the card to make purchases that meet the spending requirement for a sign-up bonus, those purchases do earn miles at the card's standard rate.

What happens to my miles if I close the card?

Your miles stay in your AAdvantage account and do not disappear when you close the card. Miles expire only if your entire AAdvantage account has no activity for 24 months. Closing the card does not trigger expiration as long as you have another way to keep the account active, such as a flight or a transfer.

Can I use miles to book flights for other people?

Yes. You can use your miles to book flights for anyone, not just yourself. The passenger name on the ticket does not have to match your name. You book through American's website or by calling reservations and provide the passenger's information.

Do I have to use the airline incidental credit every year?

The credit posts to your account once per year and expires after 12 months if you do not use it. You can use it for seat selections, baggage fees, upgrades, or other ancillary charges on American. If you do not fly American or do not use the credit, that benefit is wasted.

What is the difference between the consumer card and the business card?

The business card works the same way as the consumer card but is designed for people who own a business and file a business tax return. The earning rates, annual fees, and sign-up bonuses are similar, though the business version may have different perks. You need a business tax ID or EIN to open the business card.