Citi recently launched the new American Airlines AAdvantage MileUp card. The card is a good entry level or product change option if you want to earn miles on groceries and American Airline purchases.
Citi American Airlines AAdvantage MileUp
- No annual fee
- Signup bonus: 10,000 miles + $50 statement credit when you spend $500 within the first three months of account opening
- Earn 2X miles on AA
- Earn 2X miles at grocery stores
- Earn 1X miles everywhere else
- 25% off in-flight food and beverage
- Citi Private Pass (can buy exclusive tickets)
Value of American Airline Miles
American Airlines AAdvantage MileUp Card is worth considering for the 2X spending multipliers. AA miles are worth 1.2-1.4 cents per point (CPP) depending on how you redeem them.
- AA miles = 1.2 CPP
- AA miles (aggressive) = 1.4 CPP
When you use the card for 2X categories, you're getting a competitive earning rate of 2/4-2/8% return on spend (ROS). These rates are comparable to the Citi AA Platinum and Citi AA Executive cards.
American Airlines = 2X
= 2.4% - 2.8% return on spend
= same earning rate as Citi AA Plat and AA Exec
Grocery stores = 2X
= 2.4% - 2.8% ROS
I don't recommend using the card for all other purchases since the ROS rate isn't competitive.
Everywhere else = 1X
= 1.2 to 1.4% ROS
= not competitive
Typically, with any Citi card, you're not eligible for a signup bonus if you've received one in the past 24 months. However, the MileUp card is excluded from this rule.
The American Airlines AAdvantage signup bonus is not available if you have had any Citi/AAdvantage card (other than the AAdvantage MileUp or CitiBusiness/AAdvantage card) opened or closed in the past 24 months.
The Citi American Airlines AAdvantage MileUp card has a 10,000 point signup bonus plus a $50 statement credit after $500 in spend within the first three months of account opening.
Signup bonus (Aug 2018):
= 10k AA miles + $50 statement credit
10k AA miles:
= 1.2 CPP = $120
= 1.4 CPP = $140
If you value Citi AA miles at 1.2-1.4 CPP, the signup bonus is worth $120-$140.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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