NEWYou can now listen to Fox News articles!
The era of the standard $99 airline credit card may be on its way out as American Airlines becomes the latest major carrier to adjust its price.
Beginning January 24, 2027, the annual fee for the Citi/AAdvantage Platinum Select MasterCard and the Citi/AAdvantage Business MasterCard will increase from $99 to $150, according to a company press release.
The adjustment marks the first price increase for the popular Platinum Select consumer card since 2018, signaling a shift in the travel rewards landscape.
MAJOR AIRLINE DROPS SNACKS DURING SHORT FLIGHTS AS “ZERO SERVICE” DEBATE BEGINS
To soften the blow of a nearly 52% fee increase, American Airlines, Citi and MasterCard are adding several new travel and lifestyle perks.
Whether these additions offset the $51 increase will largely depend on how travelers use the card, Nick Ewen, editor-in-chief of The Points Guy, told Fox News Digital.
“You have to look at the real dollar value based on your own travel habits,” said Ewen, who lives in Florida.
American Airlines customers with certain Citi/AAdvantage credit cards will see their annual fee increase from $99 to $150 starting January 24, 2027. (Kevin Carter/Getty Images)
Cardholders will benefit from additional ways to earn AAdvantage miles on everyday spending, as well as up to $120 toward Global Entry or TSA PreCheck application fees every four years, American Airlines has confirmed.
Additionally, a new $100 annual statement credit for onboard purchases will replace the old 25% discount on food and beverages.
This makes the card significantly more rewarding for travelers, as the credit can be applied to large in-flight expenses, including Wi-Fi, which was explicitly excluded in the old discount system.
“You may not be able to afford this increase in additional annual fees.”
For someone who regularly spends money on U.S. flights or already pays for Global Entry or TSA PreCheck, Ewen said the new credits could help offset the higher annual fees.
“If the answer is yes, you’re definitely going to do well,” he said of travelers who typically spend up to $100 on in-flight purchases each year.
PASSENGER PLANE LEAVING FOR US DIVES 27,000 FEET BEFORE CIRCULATING FOR HOURS
However, the changes may not suit everyone.
“If you only fly American Airlines once a year, you may not be able to afford this additional increase in annual fees,” he said.
Some travelers wonder if the added benefits will justify a higher annual fee. (iStock)
The changes also include adjustments to how cardholders can earn rewards on everyday purchases, according to the press release.
The Platinum Select Personal Card will offer three miles per dollar on eligible hotel and AAdvantage car reservations and two miles per dollar on gas and electric vehicle charging, select streaming services and eligible Rides and Rails purchases.
CLICK HERE TO SUBSCRIBE TO OUR LIFESTYLE NEWSLETTER
Existing benefits – including preferred boarding, no foreign transaction fees and a free first checked bag on US domestic routes for the cardholder and up to four companions – will remain intact.
Ewen said the higher fees follow a broader shift among airline rewards cards.
“American is far from the first airline to see this increase in its annual fees,” he said, pointing to similar changes at Delta, Southwest and United.
The changes to American Airlines credit cards are part of a broader industry trend of airline rewards cards moving toward annual fees of around $150. (Li Rui/Xinhua via Getty Images)
Entry-level airline cards that once hovered around $100 a year are creeping closer and closer to $150, Ewen said.
“It’s definitely the norm, even if it’s not universal,” he added.
CLICK HERE FOR MORE LIFESTYLE STORIES
American Airlines’ move aligns with a broader trend sweeping the credit card industry.
Over the past few years, the travel rewards market has seen steady fee inflation as issuers offer mid-tier and premium cards with statement credits and subscription services.
American Airlines’ move aligns with a broader trend sweeping the credit card industry.
Financial institutions are betting that consumers will accept higher upfront costs in exchange for tangible, use-it-or-lose-it benefits, transforming traditional theft-focused credit cards into broader lifestyle products, according to reports.
The changes received mixed reactions from online cardholders.
TEST YOURSELF WITH OUR LATEST LIFESTYLE QUIZ
“Call me crazy, but none of this is an upgrade,” one Reddit user commented.
Another questioned the value of the new in-flight credit.
To soften the blow of a 52% fee increase, American Airlines, Citi and MasterCard are adding several new travel and lifestyle perks. (Marc Félix/Bloomberg via Getty Images)
“These flight credits are boring,” the person wrote. “They don’t even stock them except for longer flights.”
Others were more receptive to the new benefits, with one commenter citing the Global Entry or TSA PreCheck credit as a reason why the higher fees might be worth it.
CLICK HERE TO GET THE FOX NEWS APP
“It has become, in my opinion, a more respectable airline card with this refresh,” one user wrote.
Gn bussni
