American Airlines Raises Credit Card Annual Fees by 52%

American Airlines and Citibank are planning to increase the annual charges on two of their AAdvantage credit cards. The price will increase by 52%, taking the charges from $99 to $150. And the new charges will come into effect from Jan. 24, 2027. The two cards that will be impacted by the increase are Citi/AAdvantage Platinum Select Mastercard and the Citi/AAdvantage Business Mastercard. 

In 2018, the company increased the price from $95 to $99 for the Platinum Select cardholders, and since then it is the first time when the company has raised the price. The existing cardholders will have to pay the increased price from the next year for the renewal. However, the new applicants will still enjoy the initial 12 months free membership on the cards. 

New perks to soften the blow

American, Citi, and Mastercard are adding the benefits to accompany the higher fee. The cardholders can now save up to $120 on the application fee for either Global Entry or TSA PreCheck. After paying the charges from the card, your account will be automatically credited by up to $120. They can use the benefits once every four years. 

Earlier the cardholder used to receive a 25% discount on the purchase of food and beverages. However, with the new update, the cardholder will now receive a credit of up to $100 every year on eligible purchases. The airline said that the credit can be used to make broader purchases such as Wi-Fi. 

According to a report, the discounts on Platinum Select flights have increased from $125 to $150. However, to qualify for this discount, the member must have spent at least $20,000 during the membership year and renewal. 

Part of a wider industry shift

With this move, the American Airlines cards now have similar benefits and fees to its competitors like Delta and United. The Southwest, Delta, and United have made a similar change, where the charges of entry-level cards have been increased by approximately $50 by each airline. 

The United Explorer card had increased the price from $95 to $150. And this increase forces the existing customer to pay the higher fee for the renewal since January 1, 2026. 

The broader backdrop is cost pressure. Jet fuel is near $4.63 a gallon, and U.S. airfares rose nearly 23% from a year earlier over the seven months through September, according to a Reuters analysis. United, American, Delta, and Southwest have all cut their 2026 earnings forecasts, with American the only one expecting a loss.

What cardholders should do

Current cardholders should review their travel habits before paying the next renewal fee. And then compare the perks and discount that you will get against the $150 membership to get a real picture that the membership is still worth. 

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