American Airlines raises AAdvantage card fees to $150
American Airlines will raise fees on two Citi AAdvantage cards on Jan. 24 while adding hotel, security-program and inflight credits.
By Daniel Okafor · Business Editor
2 min read
American Airlines’ card fee increase will lift the annual charge for its Citi AAdvantage Platinum Select World Elite Mastercard to $150 from $99, CNBC reported. The Citi AAdvantage Business Mastercard will also carry a $150 annual fee when the changes take effect Jan. 24.
The higher prices affect the cost of holding the cards each year. American is also adding travel-related rewards and credits, though the available information does not establish whether those benefits will outweigh the higher fees for any individual cardholder.
When do American Airlines card fee increases take effect?
CNBC reported that the new fees begin Jan. 24. The report did not specify a year in the details provided.
According to a spokeswoman cited by CNBC, this is the first annual-fee increase for the Platinum Select card since 2018. Its fee rose that year to $99 from $95; the coming change adds $51 to the current annual charge.
What benefits are American Airlines adding to the cards?
American is adding several benefits alongside the fee changes, CNBC reported:
- Three AAdvantage miles per dollar on hotel bookings made through American’s portal.
- A credit of up to $120 once every four years for Global Entry or TSA PreCheck.
- A $100 annual statement credit for inflight purchases, including food.
The hotel bonus is tied to bookings through American’s portal, and the Global Entry or TSA PreCheck credit is limited to once every four years. CNBC’s report did not provide further eligibility or redemption details for the benefits.
Why do airlines offer rewards credit cards?
Airline rewards cards are issued through partnerships with banks. Airlines receive revenue when they sell miles to banks, which in turn provide those miles to card customers, CNBC reported. The report said such arrangements generate billions of dollars a year for airlines.
American’s fee changes follow increases elsewhere in airline and premium travel cards, according to CNBC. The outlet cited similar moves by United Airlines and noted that American Express increased the fee on its Platinum card to $895 from $695, while JPMorgan Chase raised the Sapphire Reserve fee to $795 from $550.
Cardholders deciding whether to keep an affected AAdvantage card will need to compare the new annual fee with the benefits they actually use. The reported terms do not establish a single answer for all customers.
This story draws on original reporting from CNBC.