American Airlines Credit Cards See Annual Fee Increase to $150

American Airlines is increasing the annual fee for its Citi/AAdvantage Platinum Select Mastercard and Citi/AAdvantage Business Mastercard from $99 to $150. This marks the first fee adjustment for the Platinum Select consumer card since 2018. The change is set to take effect on January 24, 2027.

To mitigate the nearly 52% fee increase, American Airlines, Citi, and Mastercard are adding new benefits to the cards. Cardholders will gain expanded opportunities to earn AAdvantage miles on everyday spending. They will also receive up to a $120 credit every four years to cover the application fees for Global Entry or TSA PreCheck.

Furthermore, a new $100 annual statement credit for in-flight purchases will replace the previous 25% discount on food and beverages. This new credit can be applied to a wider range of in-flight expenses, including Wi-Fi, which was not covered by the previous discount.

Nick Ewen, editor-in-chief of The Points Guy, noted that the value of these new perks will depend on individual travel habits. "You have to look at the real dollar value based on your own travel habits," Ewen told Fox News Digital. For travelers who frequently spend on in-flight purchases or use Global Entry or TSA PreCheck, the new credits could offset the higher annual fee. However, Ewen added, "If you're only flying American once a year, you may not be able to stomach that additional increased annual fee."

The rewards structure for the personal Platinum Select card is also being updated. Cardholders will earn three miles per dollar on eligible AAdvantage Hotels and Cars bookings, and two miles per dollar on gas and EV charging, select streaming services, and eligible Rides and Rails purchases. Existing benefits, such as preferred boarding, no foreign transaction fees, and a free first checked bag on domestic itineraries for the cardholder and up to four companions, will remain.

This move by American Airlines is part of a larger trend within the airline and credit card industry. Ewen pointed out that other major airlines like Delta, Southwest, and United have also made similar adjustments to their card fees and benefits. Entry-level airline credit card fees, which were once around $100 annually, are now increasingly moving closer to the $150 mark.

Financial institutions are adapting their travel rewards cards to function more like lifestyle products, offering statement credits and subscription services to justify higher annual costs. This strategy aims to encourage consumers to accept increased upfront fees in exchange for tangible benefits.

Reactions to the changes have been mixed among cardholders. Some online commenters expressed disappointment, questioning the value of the new perks, particularly the in-flight credit, which they noted is not always applicable on shorter flights. Others found the added benefits, such as the Global Entry or TSA PreCheck credit, to be valuable, suggesting the refreshed card has become more respectable.