American Airlines announced plans to raise annual fees on two of its co-branded rewards credit cards, marking the first increase in the programs since 2018. The Citi AAdvantage Platinum Select World Elite Mastercard fee will rise to $150 annually from its current $99 level, while the Citi AAdvantage Business Mastercard will also move to the same $150 annual fee.
The carrier’s decision reflects a broader industry trend of fee increases across airline rewards programs. Airlines generate substantial revenue through their co-branded credit card partnerships, earning money when banks purchase miles from them to distribute to cardholders. American’s move aligns with similar fee increases implemented by competitors including United Airlines.
To offset the higher fees, American Airlines is introducing new benefits for cardholders. These additions include earning three times AAdvantage miles on hotel bookings made through American’s portal, a credit of up to $120 every four years toward Global Entry or TSA PreCheck applications, and a $100 annual statement credit applicable to in-flight purchases such as food and beverages.
The fee increases are part of a wider pattern observed across premium travel credit cards. American Express raised its flagship Platinum card annual fee to $895 from $695 earlier this year, while JPMorgan Chase increased its Sapphire Reserve fee to $795 from $550. The new fees for American Airlines’ cards are scheduled to take effect on Jan. 24.
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