New no-fee AA card with 2x grocery debuts 7/22


Citi and American Airlines have announced that on July 22nd they be will launching a brand new credit card with no annual fee called the AAdvantage MileUp Card. While the new cardmember bonus isn’t terribly exciting, this might be an awesome option for a product downgrade and it might even work as an introduction to rewards cards for something starting out. Current Citi AAdvantage Bronze cardholders will also be transitioned to this card.

The Offer

  • Citi is launching a new American Airlines MileUp credit card on July 22nd
  • New member bonus will include 10,000 AAdvantage miles and a $50 statement credit after spending $500 on purchases in the first three months
  • Direct link to press release

Key Card Details

  • No annual fee
  • Earns 2x at grocery stores
  • Earns 2x on American Airlines purchases
  • Earns 1x everywhere else
  • 25% savings on inflight food and beverage purchases on American Airlines flights when you use your card

Quick Thoughts

Again, the new cardmember bonus on this card pales in comparison to the 50K to 60K offers we often see on all of the other American Airlines cards. However, they say that domestic economy tickets are the most common redemption, and 10K to start combined with 2x at the grocery store would probably be a good gateway drug for someone who is initially averse to annual fees or perhaps for a student if they were approved.

Of course, most readers will find this much more interesting as a new downgrade option when looking to get rid of the annual fee on an AAdvantage Platinum Select or Executive card. Being able to continue earning 2x AA miles at the grocery store with no annual fee certainly isn’t bad if you value AA miles. It still wouldn’t make it to the top of our list of the Best Category Bonuses for grocery store spend, but it certainly wouldn’t be a bad way to put together some American Airlines miles – especially if you live near one of the many grocery chains regularly offering fuel point bonuses or discounts on gift cards.

As noted above, current Bronze cardholders are receiving emails indicating that their cards will be transitioned to this new MileUp product.

We’ll have to wait to see the terms and conditions when the application page launches, but I assume that the welcome bonus will not be available to those who have or have had another personal AAdvantage card opened or closed in the past 24 months. Since this one stays within the same family of cards, I would expect that downgrading to it likely would not reset your 24-month clock for AA cards, but we’ll have to wait for data points to see.

Either way, I’m excited to see an airline card with no annual fee that also has a category bonus.

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