American Airlines is raising the annual fees on two of its rewards credit cards for the first time since 2018. The Citi AAdvantage Platinum Select World Elite Mastercard will now cost $150 a year, up from $99. Similarly, the Citi AAdvantage Business Mastercard will also see its fee increase to $150 annually. This marks the first fee hike since 2018 when the fee was raised from $95 to $99.
The airline is also introducing new benefits to offset the higher costs. Cardholders will now earn three times AAdvantage miles on hotel bookings made through American's portal. Additionally, there will be a credit of up to $120 every four years for Global Entry or TSA PreCheck, and a $100 annual statement credit for in-flight purchases like food.
This move comes as airlines and their banking partners continue to raise fees on rewards credit cards. These cards generate billions of dollars annually for airlines, which profit from selling miles to banks. American Airlines' decision follows similar fee increases by competitors like United Airlines.
Meanwhile, other major players in the credit card industry have also raised their fees. American Express increased the annual fee on its Platinum card to $895 from $695 last year, while JPMorgan Chase raised the fee on its Sapphire Reserve card to $795 from $550. The new fees for American Airlines' cards will take effect on January 24.