Will Going After Citi Card Churners Backfire on American Airlines?
There's a rumbling in the community of credit card churners, folks who apply for new cards to nab attractive sign-up bonuses before moving on to the next piece of plastic. American Airlines (NASDAQ: AAL) has been locking down and in some cases terminating AAdvantage accounts this month of folks who acquired too many loyalty miles through Citigroup (NYSE: C) mailers, in some cases stranding travelers by canceling their awards-based flights.
This is a story that has more turns than you'd probably think in trying to sort out the good guys from the bad. It's quite possible there are no clean hands in this mess as the airline giant tries to sift out the unprofitable accounts churning away in the gray areas of sign-up-bonus eligibility. The "fasten your seat belts" light is on, so buckle up as we size up the turbulence.
Image source: American Airlines.
Source Fool.com
