Update 1: SPG transfers to AA are getting a 20% bonus. Link here. (7.1-8.7)
Update 2: The sign-up bonus on the Citi® / AAdvantage® Executive World EliteTM Mastercard® (abbreviated here as Citi AA Exe) has jumped to 75,000 miles, with a requirement to spend $7,500 within three months.
AA’s mileage program is one of my favorite FFPs, and quite a few readers have AA miles as well. So are either of these two offers worth jumping on?
Let’s start with the first update. If you are not familiar with SPG points, you can read ymlulu’s introduction to the SPG card. As everyone knows, one big advantage of transferring SPG points to airline miles is that for every 20,000 SPG points transferred, you get an extra 5,000 miles. Using AA as an example, without a promotion, 20,000 SPG points become 25,000 AA miles. With today’s promotion, those same 20,000 SPG points become 25000*1.2=30,000 AA miles. So the ratio is effectively 1 SPG->1.5 AA. I value SPG points at 2 cent and AA miles at 1.6 cent, so 1.5 AA comes to 2.4 cent. That means this transfer is a good deal for anyone who needs AA miles.
30,000 AA miles is enough for an off-peak round-trip ticket from the U.S. to Colombia or Peru, and it is also more than enough for a domestic U.S. round-trip ticket. If you combine it with the 50,000 AA miles sign-up bonus from the Barclays US card or the Citi AA Platinum card, you could redeem for a round-trip ticket back to your home country, or a one-way Cathay Pacific first class ticket home.
If you urgently need a large number of AA miles, then update 2 is good news. The $450 annual fee may look intimidating, but you can think of this sign-up bonus as buying 75,000 AA miles for $450, worth roughly $1,200, plus Admiral Club membership and perks like priority boarding on AA flights. Admiral Club membership lets you access all AA lounges at the airport, even if you are not flying AA that day. Of course, spending $7,500 within three months is a bit demanding; unless you manufacture spending, it may still be difficult for the average person.
So for a typical miles-and-points enthusiast without an immediate need, is this card worth applying for? Let’s look at the history of this card’s sign-up bonus. In October 2013, the bonus increased from 30,000 miles to 60,000 miles after $5,000 in spending within three months. Three months later, on January 24, 2014, the bonus went up to 75,000 miles after $7,500 in spending within three months, and it also came with a $100 Statement Credit. Just 4 days later, on January 28, 2014, the offer hit an unprecedented 100,000 miles + $200 Statement Credit, though the spending requirement also increased to $10,000 within three months. Therefore, my suggestion is not to rush in yet. It may be worth waiting a few days to see what happens. First, this offer is $100 worse than last year’s. Second, there may be an even better offer coming.
If you are interested in this card, pay attention to Citi’s 8/65 policy: you can only apply for one card every 7 days and two cards every 65 days. If you go over that, you will be automatically declined. If you have opened or closed this same card in the past 18 months (including product changing it to another card), then you will not be eligible for the sign-up bonus. So those of you who jumped on the 100,000 offer last year will need to wait until next month if you want to apply again.
Bottom line: If you have an immediate need for a large amount of AA miles and can meet the spending requirement, the Citi AA Exe is still well worth applying for. If you only need a smaller amount of AA miles, then this is a good time to transfer from SPG.