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It’s official: The Citi® / AAdvantage® Executive World Elite Mastercard® are getting a makeover. ONE significant number of changes coming to the card starting July 23. These include new statement credits, enhanced opportunities to earn miles (and Loyalty Points), and the annual fee is higher.
And as a cardholder for more than five years, I have a response:
Meh.
That is inevitable popular credit cards need to adapt their value propositions in response to changes in the marketplace. However, in my opinion, these changes are significant negative changes — and are making me question whether I will keep the card when it comes to the next renewal period.
This is my point of view.
New statement credits — with note
Much premium credit card have relied on statement credits more in recent years and that is certainly the case with renewed credits Citi AA Executive Card. Starting July 23, new and existing cardholders will receive the following credits each year:
- Up to $120 back on Avis and Budget car rentals charged to the card
- Up to $120 cash back (up to $10 per monthly billing cycle) on Grubhub purchases charged to the card
- Up to $120 back (up to $10 per month) as Lyft ride credits after taking three qualifying rides
On the surface, that’s worth up to an additional $360 per year, more than what makes up for the annual fee increase (which I’ll cover later). However, each of these credits has notable downsides.
The car rental statement credit is probably the easiest to use, as it is a one-of-a-kind privilege throughout the year. In addition, the card will add new car rental protection when you use the card to rent a car. However, it is unclear whether this will be primary or secondary coverage. And since I usually charge rentals to my Chase Sapphire Reserve, I’ll also give up making money bonus points when buying travel.
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Less peace of mind and less rewards for renting my car? No thanks.
The Grubhub statement credits aren’t very interesting to me either. i had a similar privileges about me American Express® Gold Cardand I frankly struggle to use that credit every month.
But that’s the most limited Lyft claim credit. For starters, unlike Uber credit offered on Amex Gold and Platinum Card® from American Express, you are limited in trips. There is no “Lyft Eats” option to order food on the go.
But most importantly, you have to make three trips per month before the statement credit goes into effect. And since it’s a World Elite Mastercard, there’s a $5 monthly credit for Lyft rides — which is technically just $60 a year for the new privileged net account.
I don’t live in a big city, so I rarely go three times a month. Therefore, this privilege won’t help me.
Unattractive earning rate
In addition to these statement credits, the Citi AA Executive card is also receiving higher earning rates. Specifically, you can earn the following as of July 23:
- 10 miles for every dollar spent on car rentals and hotels booked through American Airlines
- 4 miles per dollar spent on qualifying US purchases — increases to 5 miles per dollar for the remainder of any calendar year you spend $150,000 on US flights
Again, though, these are extras with no utility to me.
I have booked most of my flights to the US using Platinum Amex (earn 5 points per dollar on flights booked directly with airlines or through American Express Travel, with up to $500,000 on these purchases per year) or Chase Sapphire Reserve (3 points per dollar on all travel purchases, plus extended trip insurance). Meanwhile, book a hotel room and rent a car through third-party platforms which means I can’t earn points or use elite status perks.
Sure, I can book small hotels that aren’t part of a major loyalty program — but I want to book those hotels through Chase Ultimate Rewards portal use my Sapphire Reserve to earn 10 transferable points for every dollar spent.
Related: How (and why) you should earn transferable points in 2023
Higher annual fee
All of these additional benefits come at a price, as two aspects of the Citi AA Executive card’s fee structure will change:
- Annual fee for primary cardholders: Increased from $450 to $595 ($145 increase)
- Annual fee for authorized users: Previously free for up to 10 cardholders; will be $175 for the first three and $175 for each after that
This will be the highest priced premium airline card, beat Delta SkyMiles® Reserve American Express Card ($550; see rates and fees) and United Club Infinite Card ($525).
However, it is the increase in authorized users that is particularly irritating.
I will be the first to admit that perks available on the card is too good to last. Previously, you could add up to 10 authorized users for free, allowing them to enjoy Admiral’s Club Access (including guest privileges) even if they are not traveling with the primary cardholder. However, this new structure looks like an overcorrection.
Consider the Amex Platinum, which has an identical construction for authorized user fees ($175 for the first three and then $175 for each; see rates and fees). However, let’s compare the benefits each card offers:
| Authorized User Privileges | Platinum Amex | Citi AA CEO |
|---|---|---|
| lounge access rights | Access to the Amex Global Lounge Collection, including the Amex Centurion Lounge, Priority Select Membership, access to the Plaza Premium lounge, and access to Delta Sky Club (when flying Delta)* | Access to the Admiral’s Club (including two guests or immediate family) when flying on American or its partner airlines |
| Hotel elite status | Free Marriott Bonvoy Gold and Hilton Honors Gold Status* | Do not have |
| Global Entry/TSA PreCheck fee credit | Up to $100 (every four years for Global Entry or 4 and a half years for Advance Check)* | None (limited to primary cardholders) |
*Registration is required for selected benefits.
In other words, with the same authorized usage fee, you can enjoy much more spacious lounge access plus additional perks.
Related: Best credit cards for airport lounge use
Is the card still worth it?
Ultimately, the increased annual fee structure is an obvious downgrade, and whether the added perks justify that is entirely up to your situation. If you (or your authorized user) work at an American Airlines hub, you can continue to get value from the card. Additionally, regular Lyft users, Grubhub users, and Avis/Budget tenants can rejoice with the updates.
However, many others will likely find themselves in the same situation as me: debating whether to keep the card when the new fees apply.
Thankfully, this won’t happen until your next renewal (in my case, until May 2024), but the new perks will go into effect for all cardholders as of today. July 23. This gives them time to analyze the numbers and decide if the card is worth keeping.
And note that you can still add authorized users to the card at no additional cost — but that privilege will disappear as of July 23.
bottom line
Citi has announced some major changes to Citi AAdvantage Executive Card kicks later this month, and I’m not thrilled. The new statement credits are not as user-friendly as the benefits of other cards, and I won’t get more value from the higher monetization rates.
It’s too early to know if I will cancel my card on my next renewal, as the Americans promised continue to invest in the lounge experience. Whether that (and the updated card perks) will be enough to keep the card in my wallet remains to be seen.
Related readings:
For Amex Delta Reserve rates and fees, click This.
For Amex Platinum rates and fees, click This.
