Citi and American Airlines update two co-branded credit cards with added perks and higher annual fees

Citi and American Airlines are revamping two of their co-branded credit cards with new earning opportunities, travel protections and statement credits, while raising the annual fee on both from $99 to $150. Each card will still come with a $0 introductory annual fee for the first 12 months.

The updates apply to the Citi® / AAdvantage® Platinum Select® World Elite Mastercard® and the Citi® / AAdvantage Business™ World Elite Mastercard®.

Existing cardmembers will begin seeing the new benefits on the effective date set by the companies.

Here’s a closer look at what is changing and what it could mean for cardmembers.

What is changing for the Citi / AAdvantage Platinum Select and Citi / AA Business

Both cards are gaining new ways to earn AAdvantage miles, up to $100 a year in inflight statement credits, a Global Entry or TSA PreCheck application fee credit, and additional travel protections.

The Citi / AA Platinum Select is also getting lifestyle perks, while the Citi / AA Business is adding a flexible bonus category for qualifying business spending and a discount on a business payments subscription.

Here is a breakdown of the updates on each card:

According to Citi, both prepaid and pay-later reservations will qualify for the new 3X earning rate on eligible AAdvantage Hotels and AAdvantage Cars bookings.

What is staying the same

Both cards will keep their current earning structures, including 2 miles per dollar spent on eligible American Airlines purchases. The Platinum Select will continue to earn 2 miles per dollar at restaurants and gas stations, while the Business card will keep earning 2 miles per dollar at car rental merchants, gas stations and telecommunications, cable and satellite providers.

Both cards will also retain these benefits:

• Preferred boarding on American Airlines flights for the primary cardmember and up to four companions on the same reservation
• First checked bag free on eligible domestic American Airlines itineraries for the primary cardmember and up to four companions on the same reservation
• 10% savings on eligible American Airlines Vacations packages
• No foreign transaction fees

The Platinum Select will also keep up to $180 a year in statement credits for Turo rentals, with up to $30 per eligible trip. The Business card will retain its $99 companion certificate for a single round-trip main cabin domestic flight after spending $30,000 in purchases during the card membership year and renewing the card.

What these changes mean for cardmembers

In addition to the new perks, there are several important changes to weigh before the refresh takes effect.

Both annual fees are going up by $51

The annual fee for both cards will rise from $99 to $150, while the $0 introductory annual fee for the first 12 months remains in place. Existing cardmembers will see the higher fee at their next renewal after the effective date.

The new credits and broader bonus categories could help offset the extra $51, especially for people who frequently buy inflight snacks or Wi-Fi, or who can use the Global Entry or TSA PreCheck credit.

For Platinum Select cardmembers, the complimentary Walmart+ annual membership and the 50% discount on an annual FOX One subscription could also help balance out the higher fee.

John LaCosta, Citi's head of partnership cards and development for U.S. consumer cards, said customer feedback played a major role in the refresh, especially the request for more everyday earning opportunities, statement credits and travel protections. He said those additions help position both cards competitively at the new annual fee.

Combined with the cards' existing benefits, the new features could deliver ongoing value. Still, cardmembers who do not use the credits or spend heavily in the expanded categories may find the higher fee tougher to justify.

The 25% inflight discount is being replaced

Both cards are replacing the current 25% discount on eligible inflight purchases with up to $100 in annual statement credits each calendar year. The new credit covers eligible inflight food and beverages, as well as paid Wi-Fi when free Wi-Fi is not available.

The credit can be used on one flight or spread across multiple trips, though Admirals Club purchases are not included.

LaCosta said customer feedback helped drive the change, with cardmembers preferring a fixed-dollar benefit that is easier to track and use.

The new credit could be more valuable in some cases. For example, spending $100 on eligible inflight purchases would have saved cardmembers $25 under the old discount, compared with up to $100 under the new credit.

The Citi / AA Business is adding a flexible earning category

Business cardmembers will be able to earn 2 miles per dollar in one extra category of their choice: U.S. shipping providers, office supply stores or U.S. advertising services.

Cardmembers can switch their selection quarterly, and those who do not choose a category will default to office supplies.

This could be especially useful for businesses with significant shipping or advertising costs, since there is no cap on miles earned in the chosen category.

The card is also adding a 25% discount on a Melio subscription plan, which may appeal to business owners who use the service to manage payments.

Existing business management tools will remain available as well.

Citi and American are leaning into everyday spending

The refreshes are part of a busy period for the Citi / AAdvantage lineup, following the launch of the Citi® / AAdvantage® Globe™ Mastercard® last year and a major refresh of the Citi® / AAdvantage® Executive World Legend Mastercard® in August.

LaCosta said Citi has seen Platinum Select cardmembers increasingly use the card for everyday purchases. “It’s clearly a travel card first, but they are more and more becoming top-of-wallet cards for our customers,” he said.

Scott Long, American Airlines' senior vice president of AAdvantage, said the goal is to keep cardmembers engaged with the loyalty program even when they are not flying.

The new streaming, rides and rails categories, along with lifestyle perks such as Walmart+ and FOX One, reflect that shift.

Beyond earning redeemable miles, Long also pointed to the ability to earn Loyalty Points toward AAdvantage elite status through everyday credit card spending as a key advantage of the co-branded cards.

While some competing airline cards offer exclusive award discounts for cardholders, American is not adding a similar feature with these refreshes. Long said the airline is still evaluating other ways to provide value to cardmembers.

Bottom line

The refreshed Citi / AAdvantage Platinum Select and Citi / AAdvantage Business cards will offer more ways to earn, new travel protections and added credits starting on the effective date.

But both cards will also carry annual fees that are $51 higher after the first year.

For current cardmembers, whether the changes make sense will depend on how much value they can extract from the new benefits. Those who regularly use the credits or expanded bonus categories may find the higher fee easier to absorb.