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American Airlines Hikes Card Fees To $150 While Adding New Travel Perks

Airlines generate substantial revenue by selling frequent-flyer miles to financial institutions, which distribute them through credit card rewards programmes.

Photo by Ross Sokolovski / Unsplash

American Airlines is increasing annual fees on two co-branded rewards credit cards for the first time since 2018, joining a broader industry trend of higher charges for travel benefits.

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The annual fee for the Citi AAdvantage Platinum Select World Elite Mastercard will rise from $99 to $150. The Citi AAdvantage Business Mastercard will also cost $150 annually. The new charges take effect January 24.

In return, cardholders will receive additional benefits, including three AAdvantage miles per dollar spent on hotel bookings through American’s travel portal. The cards will also offer up to $120 toward Global Entry or TSA PreCheck every four years, along with a $100 annual statement credit for eligible in-flight purchases.

Airlines generate substantial revenue by selling frequent-flyer miles to financial institutions, which distribute them through credit card rewards programmes.

American’s move follows similar fee increases across the industry, including higher charges on premium cards from American Express and JPMorgan Chase.

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