American Airlines is increasing the annual fee for two of its rewards credit cards for the first time since 2018. The fee for the Citi AAdvantage Platinum Select World Elite Mastercard will rise to $150 from $99, while the Citi AAdvantage Business Mastercard will also see its fee increase to $150 per year. This adjustment marks the first fee hike since 2018, when the former fee rose from $95 to $99, as confirmed by an airline spokesperson.
In recent years, airlines and their banking partners have consistently raised fees on rewards credit cards, generating substantial revenue from the sale of miles to banks, which are then offered to customers. American’s announcement, made Tuesday, aligns with similar increases implemented by competitors like United Airlines. Notably, American Express raised the fee for its popular Platinum card to $895 from $695 last year, while JPMorgan Chase increased the annual fee on its Sapphire Reserve card from $550 to $795.
The enhanced benefits accompanying the fee increase for American’s credit cards include the ability to earn three times AAdvantage miles on hotel bookings made through American’s portal, a credit of up to $120 every four years for Global Entry or TSA PreCheck, and a $100 annual statement credit for in-flight purchases such as food. The new fees are set to take effect on January 24.
Why this story matters
- The increase reflects a larger trend in the airline and banking industries regarding the value and pricing of rewards credit cards.
Key takeaway
- Customers will see changes to their annual fees alongside new perks aimed at enhancing the rewards experience.
Opposing viewpoint
- Some consumers may view the fee increases as a negative development, questioning the overall value of the credit card rewards given rising costs.
