American Airlines raising the annual fee for both rewards credit cards for the first time since 2018 and adding new benefits like TSA PreCheck credit and points from hotel spending.
Fee in Citi The AAdvantage Platinum Select World Elite Mastercard will go up $150 per year from $99. This is the first increase since 2018, when it raised the cost from $95 to $99, an airline spokeswoman said.
The Citi AAdvantage Business Mastercard will also increase its fee and will now cost $150 per year.
Airlines and bank partners have been steadily raising fees for rewards credit cards.
The cards generate billions of dollars a year for airlines, which make money when miles are sold to banks, which then pass them on to customers. America’s move, announced Tuesday, follows similar increases by rivals such as United Airlines.
Meanwhile, American Express last year raised the fee on its popular Platinum card, which comes with airport lounge access, to $895 a year from $695. JPMorgan Chase increased the annual fee on its rival card, the Sapphire Reserve, to $795 from $550.
New benefits for the American card include three times the earning of AAdvantage miles on hotels booked through the American portal, a credit of up to $120 every four years for Global Entry or TSA PreCheck, and an annual statement credit of $100 for in-flight purchases such as food.
The new fees take effect on January 24.