American Airlines hikes credit card annual fees 52% while adding fresh perks

American Airlines and Citi are increasing the annual fee on two of their AAdvantage credit cards, while adding benefits they hope will make the higher price easier for customers to accept.

• Higher annual fees: The fee on two popular AAdvantage cards will rise from $99 to $150, a 52% jump.

• New benefits: Cardholders will get additional travel protections, more ways to earn miles, and statement credits designed to help balance the higher cost.

• Implementation date: The changes will begin on January 24, 2027, giving current cardholders time to decide whether to keep the cards.

Air travel costs are not the only expense rising for consumers. American Airlines is also boosting the annual fees on two of its well-known rewards cards, following a wider industry trend in which airlines and banks are charging more for premium travel perks.

The carrier and its banking partner, Citi, said the annual fee for the Citi/AAdvantage Platinum Select World Elite Mastercard and the Citi/AAdvantage Business World Elite Mastercard will climb from $99 to $150.

That adds $51 a year, which works out to roughly a 52% increase.

The cards will still waive the fee for the first 12 months for new users. Existing cardholders will generally see the higher charge at the next renewal after the new pricing takes effect.

In return, American and Citi are adding several new features, including expanded mileage earning, travel protections and statement credits.

“We’re continuing to evolve the Citi/AAdvantage portfolio to better reflect how our members live, spend and travel today,” said Scott Long, American’s senior vice president of AAdvantage.

What is changing for cardholders?

The Platinum Select card, aimed mainly at occasional travelers, is gaining a number of new perks.

Cardholders will earn three AAdvantage miles for every dollar spent on eligible hotel and rental car bookings made through American’s designated websites.

The card will also give two miles per dollar on purchases at electric vehicle charging stations, select streaming services, and eligible rideshare and public transportation purchases.

Additional new benefits include:

• Up to $100 per year in statement credits for eligible inflight purchases.

• Up to $120 toward Global Entry or TSA PreCheck application fees once every four years.

• A complimentary Walmart+ membership, worth $98 a year.

• A 50% discount on an annual FOX One streaming subscription.

• New travel protections for trip delays, cancellations, interruptions, lost baggage and rental cars.

The annual American Airlines flight discount is also increasing from $125 to $150. To qualify, cardholders must spend at least $20,000 on the card during the membership year and renew it.

The Business Mastercard is getting similar travel credits and protections, along with richer rewards on certain business purchases and a discount on a Melio business payments subscription.

Both cards will keep existing benefits, including a free first checked bag on eligible domestic American Airlines flights for the primary cardholder and up to four companions on the same reservation.

One current perk is going away: the cards’ 25% discount on eligible inflight purchases will be replaced by the new annual statement credit of up to $100.

Is the extra $51 worth it?

That depends on how often cardholders travel and whether they use the new benefits.

For instance, someone already paying $98 a year for Walmart+ could potentially make up the full fee increase through the free membership alone.

Travelers who frequently buy food or drinks on American Airlines flights may also see value in the new inflight statement credit.

But people who rarely fly American or do not use the extra services may end up paying more for benefits they will never fully use.

The Global Entry and TSA PreCheck credits may be appealing, but they are only available once every four years. Consumers who already receive those reimbursements from another card may find little added value.

Likewise, the larger flight discount requires substantial annual spending, which makes it less useful for occasional travelers.

Airline credit cards are getting pricier

American’s move reflects a broader shift in the credit card market, where issuers are lifting annual fees while adding perks meant to justify the higher cost.

Several airline cards have become more expensive, and premium travel cards tied to general spending have seen especially steep fee increases.

For issuers, the goal is to add features that encourage more card use and, in turn, more spending.

For consumers, though, the growing list of perks can make it harder to tell whether a card is truly delivering value.

A card that advertises hundreds of dollars in possible savings is not necessarily a bargain if those savings depend on purchases or subscriptions the customer would not otherwise make.

What cardholders should consider before the next fee posts

People who already hold one of the affected American Airlines cards should review their travel patterns and spending before the next annual fee is charged.

It may help to total up how much the card saved over the past year through free checked bags, travel discounts and other benefits, then compare that amount with the new $150 fee.

Cardholders should also check whether the new perks duplicate rewards already offered by other cards.

For example, travelers who already have a card that reimburses TSA PreCheck fees or covers rental cars may not gain much from those same features being added to their American Airlines card.

If the higher fee does not seem worthwhile, customers can ask Citi whether a product change to a lower-cost or no-annual-fee card is available.

Closing the account is another option, though consumers should think about possible effects on their credit scores, especially if the account is old or has a large credit limit.