American Airlines is raising annual fees on two of its co-branded Citi rewards credit cards for the first time since 2018 [1]. The Citi AAdvantage Platinum Select World Elite Mastercard fee will increase to $150 annually from $99, while the Citi AAdvantage Business Mastercard will also rise to $150 per year [1]. These new fees take effect January 24 [1]. The last fee increase on the consumer card occurred in 2018, when it was raised from $95 to $99 [1].
American Airlines is adding new benefits to offset the fee increases, including 3X AAdvantage miles earnings on hotels booked 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 on in-flight purchases [1]. The move reflects an industry-wide trend, as airlines and their bank partners have been steadily raising fees on rewards credit cards [1]. These cards generate billions of dollars annually for airlines, which profit when miles are sold to banks that distribute them to customers [1].
American's fee increase follows similar moves by competitors and other financial institutions [1]. United Airlines has implemented comparable increases, while American Express raised its Platinum card fee to $895 annually from $695, and JPMorgan Chase increased the Sapphire Reserve fee to $795 from $550 [1]. The broader trend demonstrates how airlines and premium card issuers are leveraging customer loyalty and travel benefits to justify higher annual costs.
CONCLUSION
American Airlines' first fee increase in six years reflects industry-wide efforts to boost revenue from co-branded credit card partnerships, which generate billions annually for airlines. While new benefits like TSA PreCheck credits and enhanced earning rates may justify the increase for frequent travelers, the move signals continued pressure on consumers to pay higher fees for premium travel rewards programs.