American Airlines announced increases to the annual fees on two of its co-branded rewards credit cards, marking the first adjustment to these rates since 2018. The Citi AAdvantage Platinum Select World Elite Mastercard will see its annual fee rise to $150 from $99, while the Citi AAdvantage Business Mastercard will also increase to $150 annually.
The fee hikes are part of a broader industry trend in which airlines and their financial partners have been progressively raising annual charges on rewards credit cards. These products represent significant revenue streams for airlines, which earn money by selling frequent flyer miles to banks that distribute them to cardholders. American’s announcement, made Tuesday, follows comparable fee increases announced by competitor United Airlines.
To offset the fee increases, American is introducing new benefits for cardholders. These additions include earning three times AAdvantage miles on hotel bookings made through American’s travel portal, a credit worth up to $120 every four years for Global Entry or TSA PreCheck enrollment, and a $100 annual statement credit applicable to in-flight purchases such as food and beverages.
The broader credit card market has similarly seen fee escalation among premium cards. American Express raised the annual fee on its Platinum card to $895 from $695 in the previous year, a product that includes airport lounge access privileges. JPMorgan Chase also increased the annual fee on its Sapphire Reserve card to $795 from $550.
The new fee structure for American’s cards will take effect Jan. 24.
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