American Airlines has announced a price increase for two of its primary co-branded rewards credit cards, marking the first time the carrier has adjusted these annual fees since 2018. Starting January 24, cardholders of the Citi AAdvantage Platinum Select World Elite Mastercard and the Citi AAdvantage Business Mastercard will see their yearly costs rise significantly.
The annual fee for both cards is set to climb to $150, up from the previous rate of $99. According to a spokesperson for the airline, this represents a notable shift in the card’s pricing structure. The last adjustment occurred in 2018, when the fee was raised marginally from $95 to $99.
To balance the higher cost, American Airlines is introducing a suite of new benefits designed to appeal to frequent travelers. Among the most prominent additions is a credit of up to $120 every four years to cover the application fees for Global Entry or TSA PreCheck. Additionally, cardholders will now earn triple AAdvantage miles on hotel stays, provided those accommodations are booked directly through American’s dedicated travel portal.
The airline is also adding a $100 annual statement credit specifically for in-flight purchases, such as food and beverages. These enhancements reflect a broader strategy within the airline industry to transition mid-tier rewards cards into more comprehensive travel tools, even as the base price for entry rises.
The move comes as airlines increasingly rely on their loyalty programs as a critical source of revenue. These programs generate billions of dollars annually for major carriers, primarily through the sale of frequent flyer miles to banking partners. The banks then distribute these miles to consumers as incentives for spending on everything from groceries to luxury travel.
American’s decision follows a trend of fee hikes across the travel and financial sectors. Rival United Airlines recently implemented similar increases for its rewards products. In the premium market, American Express last year raised the annual fee on its flagship Platinum card from $695 to $895, while JPMorgan Chase boosted the cost of its Sapphire Reserve card from $550 to $795.
For current cardholders and prospective applicants, the January 24 deadline marks the transition to the new pricing tier. While the $51 increase represents a significant jump in the annual cost, the airline is betting that the combination of expedited security screening credits and enhanced hotel earnings will maintain the cards’ competitiveness in a crowded rewards landscape.
