What American Airlines credit cards do

American Airlines credit cards let you earn miles on purchases you make anyway, then redeem those miles for flights, seat upgrades, or other travel perks. You get a sign-up bonus of miles when you open the card and meet a spending threshold — usually between $500 and $3,000 in the first few months. After that, you earn miles on every dollar you spend, at different rates depending on the card and the merchant category.

The cards are issued by Citi, which handles the account, billing, and customer service. American Airlines sets the earning rates and decides what the miles are worth when you redeem them. You pay an annual fee — ranging from $0 to $550 depending on which card you choose — and that fee is charged every year on your account anniversary, whether you use the card or not.

Key Takeaways

  • American Airlines cards earn miles on everyday purchases, with bonus categories like dining and gas that earn at higher rates than regular spending.
  • The sign-up bonus is the largest chunk of miles most people earn in the first year, so the card only makes sense if you can meet the spending requirement without overspending.
  • Annual fees range from $0 to $550, and you pay them every year; some cards include statement credits that offset part or all of the fee if you use them.
  • Miles expire if your account is inactive for 24 months, so you need to use the card or the miles at least once every two years to keep them alive.
  • The value of a mile varies widely depending on which flight you book and how you redeem, so comparing the cost of a flight in dollars versus miles is the only way to know if you are getting a good deal.

The three main American Airlines cards and what separates them

Citi offers three American Airlines cards at different annual fee levels. The American Airlines Citi Card has no annual fee and earns 1 mile per dollar on most purchases, plus 2 miles per dollar at gas stations, restaurants, and on American Airlines purchases. This card is designed for people who want to earn miles without paying for the privilege, though the sign-up bonus is smaller than the paid cards.

The American Airlines Citi Platinum Select Card costs $99 per year and earns 2 miles per dollar on American Airlines purchases and at restaurants and gas stations, plus 1 mile per dollar on everything else. It includes a $100 statement credit toward American Airlines purchases every year, which effectively reduces the annual fee to $0 if you book at least one flight per year. New cardholders get a larger sign-up bonus than the no-fee card.

The American Airlines Citi Executive Card costs $550 per year and is aimed at frequent flyers. It earns 3 miles per dollar on American Airlines purchases and 2 miles per dollar at restaurants and gas stations. It includes a $200 annual statement credit for American Airlines purchases, a free checked bag on American Airlines flights, priority boarding, and other perks. The sign-up bonus is the largest of the three cards.

How the sign-up bonus works and whether it is worth chasing

When you open an American Airlines card, you get a large number of miles — typically 50,000 to 75,000 miles depending on the card — if you spend a certain amount within a set timeframe, usually three months. That bonus is worth roughly $500 to $1,000 in flight value, which is why people sometimes open cards specifically to earn the bonus.

The catch is that you have to actually spend that money. If you spend $3,000 in three months anyway — on groceries, gas, bills, and regular life — then the bonus is essentially free. If you go out and buy things you would not normally buy just to hit the threshold, you are spending money to earn miles, which defeats the purpose. Before you open a card, add up what you normally spend in three months and see if you naturally hit the requirement.

Once you earn the bonus, those miles sit in your account until you redeem them. They do not expire as long as your account stays active — meaning you use the card or redeem miles at least once every 24 months. If your account goes dormant for two years, American Airlines will close it and you lose the miles.

Annual fees and the credits that sometimes offset them

The no-fee card has no annual fee, so you pay nothing to keep the account open. The Platinum Select Card charges $99 per year but includes a $100 statement credit that you can use toward any American Airlines purchase — flights, seat upgrades, baggage fees, or in-flight purchases. If you book at least one flight per year, that credit covers the fee and you come out ahead by $1.

The Executive Card costs $550 per year and includes a $200 statement credit, leaving a net cost of $350. That card also includes a free checked bag on American Airlines flights, which saves you $35 to $40 per round trip if you check luggage. For someone who takes four or more American Airlines flights per year, the free checked bag alone can cover much of the fee. The card also includes priority boarding and other perks that vary by tier.

The key question is whether you will actually use the credits. If you never book American Airlines flights, the Platinum Select and Executive cards are pure expenses. If you book one or two flights per year, the Platinum Select makes sense because the credit covers the fee. If you fly American Airlines four or more times per year, the Executive Card's perks may justify the $550 cost, but you should do the math for your own travel patterns.

How miles earning works in different spending categories

All three American Airlines cards earn miles at different rates depending on where you spend. The no-fee card earns 1 mile per dollar on most purchases and 2 miles per dollar at gas stations, restaurants, and on American Airlines. The Platinum Select earns 2 miles per dollar at restaurants, gas, and American Airlines, and 1 mile per dollar everywhere else. The Executive Card earns 3 miles per dollar on American Airlines, 2 miles per dollar at restaurants and gas, and 1 mile per dollar on everything else.

The bonus categories are designed to reward spending that most people do anyway. If you eat out frequently or fill up your gas tank regularly, you earn miles faster in those categories. Regular purchases like groceries, utilities, and online shopping earn at the base rate of 1 or 2 miles per dollar depending on the card.

Some merchants code differently than you might expect. A grocery store might code as a grocery store and earn base miles, or it might code as a supermarket and earn bonus miles — the card issuer does not control this, the merchant does. If you are trying to maximize miles in a specific category, you may need to test a few purchases to see how they code on your account.

What a mile is actually worth and how redemption works

A mile does not have a fixed dollar value. The same mile might be worth $0.01 on one flight and $0.02 on another, depending on the route, the time of year, and how many seats American Airlines has available. The only way to know if you are getting a good deal is to compare the cash price of the flight to the miles price, then divide the miles price by the cash price.

For example, if a flight costs $300 in cash and 30,000 miles, then each mile is worth $0.01. If another flight costs $500 in cash and 30,000 miles, then each mile is worth about $0.017. You would get better value redeeming on the second flight. Most people find that miles are worth between $0.01 and $0.02 per mile on average, though premium cabin redemptions (business or first class) sometimes offer higher value.

You redeem miles through the American Airlines website or app by searching for a flight, selecting the "award" tab, and booking with miles instead of cash. You can also call American Airlines to book by phone, though phone bookings sometimes charge a fee. Miles can also be used for seat upgrades, baggage fees, and other American Airlines purchases, though flights usually offer the best value.

When these cards make sense and when they do not

An American Airlines card makes sense if you fly American Airlines at least once or twice per year and want to earn miles on everyday spending. If you spend $2,000 or more per month on a card anyway, the earning rates add up quickly. The no-fee card is a reasonable choice if you want to test whether you will actually use the miles before committing to an annual fee.

These cards do not make sense if you never fly American Airlines, or if you fly other airlines most of the time. Miles earned on a card are specific to American Airlines and cannot be transferred to other programs. If you fly United, Delta, or Southwest more often, you should look at their credit cards instead. Similarly, if you pay off your credit card balance in full every month, the miles you earn are a bonus on top of your normal spending — but if you carry a balance and pay interest, the interest charges will quickly exceed the value of the miles you earn.

Frequently Asked Questions

Do I have to fly American Airlines to use the miles?

No. You can redeem miles for flights on American Airlines, but also on partner airlines including British Airways, Cathay Pacific, Japan Airlines, and others. Partner redemptions sometimes offer better value than American Airlines flights, though they may require more miles. You can also use miles for seat upgrades and other American Airlines purchases.

What happens to my miles if I close the card?

Your miles stay in your American Airlines account even after you close the credit card. The card itself closes, but the miles remain as long as your account stays active — meaning you use miles or earn miles from another source at least once every 24 months. If your account goes inactive for two years, American Airlines will close it and the miles expire.

Can I transfer miles to someone else?

You cannot transfer miles to another person's account, but you can use your miles to buy a ticket for someone else. You can also gift miles to another person's account through American Airlines' gift program, though there is a fee and a minimum purchase amount. Check the American Airlines website for current gift pricing.

How long does it take to earn the sign-up bonus?

The sign-up bonus posts to your account once you meet the spending requirement within the timeframe — usually three months. Most people see the miles appear within one to two billing cycles after they hit the threshold. You can then redeem those miles when ready, or hold them until you find a flight you want to book.

What if I want to cancel the card after earning the bonus?

You can cancel the card anytime, and your miles stay in your American Airlines account. However, if you cancel and do not use the miles or earn miles from another source within 24 months, your account will close and the miles will expire. If you want to keep the miles, you need to keep the account active by using the card or redeeming miles at least once every two years.