American Airlines is once again a Citi transfer partner. That presents a valuable new use of those points, increases the attractiveness of AAdvantage, but also will likely accelerate the next American Airlines devaluation.
New Citi Partnership Likely Signals An American Airlines AAdvantage Devaluation Is Coming
I wrote the post below in June 2021, during a brief window amid the pandemic during which Citi allowed ThankYou points to be transferred into AAdvantage. Thankfully, I was wrong then: we did not see a massive devaluation of partner awards or the end of award charts. Amazingly there still has not been a devluation of partner awards four years later, though AA awards are priced dynamically and have risen in price recently. Even though I was about as wrong as Doug “Nostradamus” Parker saying AA would never lose money again, I’m still betting on a devaluation…like an earthquake in California, now we are more overude than ever.
Folks, I fear there is a huge American Airlines AAdvantage devaluation coming on the redemption side. It’s just a matter of when. Of course, that is true for all loyalty programs, but for American Airlines in particular. Those who have stewarded AAdvantage have explicitly said they cannot understand why passengers like award charts, praised dynamic pricing, and therefore all but promised American Airlines will devalue its miles.
That means I’d take advantage of certain sweet spots now, including:
- First Class to Japan on JAL – 80K miles one-way
- Business Class to East Asia on JAL or Cathay Pacific – 60-70K miles one-way
- Business Class to Africa via Doha on Qatar – 75K miles one-way
I do not expect these to last. I expect most prices will rise, some will go down (sort of like AA’s current Web Special awards), but savvy customers who enjoy redeeming their miles for premium cabins on partner airlines will find their points worth far less than they currently are.
Which leads us to what may accelerate this devaluation: American Airlines is now a Citi transfer partner.
Transfer Citi ThankYou Points To American Airlines AAdvtange
If you have the following Citi cards, you can now send your points to AA on a 1:1 basis:
- Strata Elite
- Strata Premier
- Prestige
The trial from June – November 2021 proved to be a success for Citi and AA. With Barclays no longer dueling for influence as a competitive AA co-branded credit card, will this be a permanent option? How many points will be transferred over? What kind of redemptions will be made? Should this overwhelm the system, AA could always pull it back and restrict the new transfer option by devaluing it or blocking it completely, though this time around, there is no talk of this being a “temporary” promotion.
AA will also doubtlessly be watching closely to see how the ability to make flexible Citi ThankYou points transferable to American Airlines impacts its own portfolio of credit cards. A real concern must be whether users will stop signing up or spending on AA co-branded credit cards if they can use a flexible card instead.
But at least for now, the ability to top off your AA account with Citi points marks the golden opportunity to book AA awards.
CONCLUSION
On the one hand, I am excited about the re-established Citi transfer option to American Airlines AAdvantage and the additional doors it will open. On the other hand, I am cognizant of the likelihood this move will accelerate a devaluation at American Airlines. If you are eyeing an award book now: not only is there now a lot more competition for those seats, but the price may soon rise…potentially without any notice. I don’t mean to be alarmist, but I don’t see this as ending well.
I was excited at first about this when I heard yesterday and was ready to transfer my Citi points over last night. Common sense prevailed though in backing off for now. Stranding them in AA given the lack of award space and what will now be even more people fighting for the scraps out there seems foolish. If I find a good redemption prior to November, great. If not, they are far more valuable sitting in my Citi account and waiting.
I totally agree with Stuart’s comments and am following the same game plan.
How responsible is it to tell people they should travel to Japan and East Asia where the majority of the local population isn’t vaccinated?
I hope that by next spring the situation will be better.
Maybe the dumbest question or statement ever posted here. And that’s saying a lot.
Kind of sad to see Matt even justifying it with a reply.
Ass clown probably posted from Walgreens in line for his weekly Covid/Flu/whatever shot.
Dave, look at the date. 🙂 Reviving an old post. World was very different 4 years ago.
Thanks, didn’t even notice that.
That said, no it wasn’t to most of us without a foot already in the grave.
I think most of us now agree Covid and the vaccine were a hoax.
The devaluation is already here and will only get worse. Can barely find an AA JFK-LHR flight for less than 100k for the rest of 2025 – was plenty of AA 57.5k availability earlier this year. There are some available in 2026 for 65k that I would recommend people jump on now. Still plenty of BA 57.5k if you want to pay the $700-800 surcharges each way. Hopefully they keep some of the partner awards still available at those or similar prices to keep enticing us to spend with the program.
PS – reading the 2021 comments was a real trip!
You know me, don’t give a damn about devaluation on “premium class” to sh#tholes. Who actually goes to Africa unless you have family stuck there? Give me more low end Web Specials and I love any “devaluation”. The 5000-8000 redemptions are perfect for me as I’m flexible, when to wherever in the US and Caribbean. My calendar is full through the Super Bowl already with them.
Keep F’ing the “Businessman” and let the casual travelers benefit from it.
I disagree with you on your assessment of Africa, but I do agree with the value prop of the 5K-8K awards to the Caribbean. I too, load my calendar up with those redemptions. Surely the most under-appreciated use of any points currency.
Out of curiosity, where in the Caribbean would you deem an acceptable place to travel, as your tastes certainly are ‘discerning.’
Certainly not a St Barts type because I see it as a waste and way overpriced, but otherwise I’m open. In no particular order.
BVI-Jost. Great beaches and bars to relax and hang with locals. Food is basic chicken, ribs and burgers so I’m good.
St Maarten. Mostly Dutch side but Orient beach on the French side is nice. Maho with the planes is a must see, again reasonable food and drink with plenty of American style options. Also some casinos to hustle but unsure of the regulations on getting a fair game.
Anguilla. Great beaches and bars but tougher to get around to them.
USVI. Not the best beaches on St Thomas but plenty to see and do on the islands.
And of course, the challenge is staying away from any tourist areas when the Cruise Ships bring the mobs into port and ruin everything for the day.
Africa is so much more than what you say, but you’ve probably never been. Clubbing in Senegal, Roman ruins in Libya, tribal living in South Sudan, swimming in Mogadishu, traversing Namibia, dancing in Nigeria. If you put all the stigma away, it’s surreal.
It’s the most beautiful continent on the planet, and I’m American… If you want the courtyard Marriott and a hazy IPA, don’t go. If you want kindness, and real life, that’s Africa.
Dave- I for one am looking at awards for Africa. I think you are missing the reason. To go on a safari or visit Capetown which is a great city.
Safari definitely sounds fun and something I’d like to see but I can’t support the countries knowing how the pouching is allowed by these countries. I get they are poor and there is a market for it by selling to scum but it’s just sad. Enjoy your trip!
I want to transfer my AA miles to Citi thank you points. Ofcourse that is not allowed.
Ben, I agree with you on the likely devaluation. Thing is, when was the last time you saw any Qatar J available to or from North American hub / Africa, on AA, that was actually bookable more than a few days in advance? (Genuinely curious about this. I’ve pretty much given up. It’s been a good 10-11 months for me & that’s only because YUL was available a few months beyond anything USA drying up.)
I’m a little more optimistic about this, since Barclays and their Aviator cards are now out of the picture.