American Airlines lifts annual fees on two AAdvantage cards to $150

American Airlines is raising the annual fee for two of its AAdvantage credit cards, the first increase since 2018, according to CNBC.

The Citi AAdvantage Platinum Select World Elite Mastercard will climb from $99 to $150 per year, while the Citi AAdvantage Business Mastercard will also cost $150 annually. The airline’s spokesperson noted the Platinum Select fee last changed in 2018, when it moved from $95 to $99.

New card benefits accompany the higher price. Cardholders will earn three‑times AAdvantage miles on hotel bookings made through American’s portal, receive a credit of up to $120 every four years for Global Entry or TSA PreCheck, and get a $100 annual statement credit toward in‑flight purchases such as meals.

The fee hikes align with a broader trend among airlines and their banking partners. United Airlines recently raised fees on its own rewards cards, and major issuers have followed suit: American Express lifted the Platinum card fee to $895, and JPMorgan Chase increased the Sapphire Reserve fee to $795.

Rewards cards are a significant revenue source for airlines, generating billions each year. Airlines sell miles to banks, which then award them to card members; higher fees and added perks are ways to sustain that income stream.

Why it matters: The fee increase to $150 brings American’s cards in line with recent industry moves and adds perks that may offset the higher cost for frequent flyers.

Source: American Airlines hikes annual fees on rewards cards for first time since 2018 — CNBC