American Airlines Raises Credit Card Fees
It seems like the days of the standard $99 airline credit card might be coming to an end. American Airlines has joined the trend by announcing an increase in its annual fees.
Starting January 24, 2027, the yearly fee for both the Citi/AAdvantage Platinum Select Mastercard and the Citi/AAdvantage Business Mastercard will rise from $99 to $150, as detailed in a recent company announcement.
This marks the first fee increase for the popular Platinum Select card since 2018, which indicates a significant shift in the travel rewards landscape.
In an effort to ease the impact of this nearly 52% rise in fees, American Airlines, Citi, and Mastercard will introduce several new travel and lifestyle benefits.
But whether these new perks suffice to make up for that extra $51 largely depends on how individual travelers utilize the card, according to Nick Ewen, editor-in-chief of The Points Guy.
“It’s really about assessing the true dollar value in relation to your travel habits,” Ewen explained, noting that he himself is based in Florida.
Cardholders will now enjoy more opportunities to earn AAdvantage miles through their everyday purchases, along with up to $120 toward Global Entry or TSA PreCheck application fees every four years, as confirmed by American Airlines.
Moreover, a new $100 annual statement credit for in-flight purchases will replace the former 25% discount on food and beverages. This, interestingly, broadens the scope of eligible expenses, now including Wi-Fi, which was excluded from the old program.
But, of course, not everyone will find these changes advantageous. If you typically fly with American only once a year, that increased fee might be hard to justify, Ewen cautioned.
The adjustments also extend to how users can collect rewards on everyday spending. For instance, the personal Platinum Select card will now offer three miles per dollar on eligible AAdvantage Hotels and Cars bookings, as well as two miles per dollar on gas, select streaming services, and eligible Rides and Rails purchases.
Existing perks, including preferred boarding, no foreign transaction fees, and a free first checked bag on domestic American flights for the cardholder and up to four companions, will still be available.
Ewen noted that this fee increase isn’t unique to American Airlines—many other airlines, like Delta, Southwest, and United, have made similar adjustments recently.
There’s a noticeable shift where entry-level airline cards, which used to average around $100 annually, are edging closer to that $150 mark. “This is becoming the standard, although it’s not exactly universal,” he pointed out.
The changes reflect a larger trend in the credit card industry, where, over recent years, we’ve seen a steady increase in fees as card issuers bundle more statement credits and subscription services into mid-tier and premium offerings.
Financial institutions are clearly hoping that consumers will be willing to accept these higher costs for tangible perks. They’re changing how traditional flight-focused credit cards function, turning them into broader lifestyle products.
Reaction from cardholders has varied. Some have expressed skepticism about the new changes. “I just don’t see this as an upgrade,” one Reddit user remarked. Another voiced doubts over the new in-flight credit’s practicality.
Conversely, some users are more enthusiastic. One commenter highlighted the Global Entry or TSA PreCheck credit as a valid reason for considering the higher fee worthwhile, calling the card “more respectable” after this update.
