Debt ReductionAAL's partnership with Citi on a co-branded credit card is expected to significantly increase cash flow, helping the airline reduce its debt.
Financial PerformanceCiti increases its target price from $19 to $23, as higher, expected revenue per available seat mile or RASM, along with additional co-branded card-driven working capital tailwind, boosts earnings forecasts for the carrier.
Strategic PartnershipsAmerican Airlines and Citi extended their 37-year co-branded partnership for another 10 years, making Citi the exclusive issuer of the AAdvantage co-branded card portfolio in the US.