American Airlines hikes annual fees on rewards cards for first time since 2018

AirlinesPublished Tue, Oct 27 202611:39 AM EDTUpdated 2 Min AgoKey PointsAmerican Airlines is hiking the fee on its Citi AAdvantage Platinum Select World Elite Mastercard to $150 from $99.It marks the first increase for the card since 2018, a spokeswoman said.Competing airlines and card issuers like American Express and Chase have also raised annual credit card fees.An American Airlines Boeing 777-223(ER) takes off from Barcelona-El Prat Airport, in Barcelona, Spain, on April 29, 2026. Joan Valls | Nurphoto | Getty ImagesAmerican Airlines is raising the annual fee for two of its rewards credit cards for the first time since 2018 and adding new benefits like a TSA PreCheck credit and points from spending on hotels.The fee on the Citi AAdvantage Platinum Select World Elite Mastercard will go up to $150 a year from $99. That is the first hike since 2018, when it raised the fee from $95 to $99, an airline spokeswoman said.The Citi AAdvantage Business Mastercard will also have a fee increase and will now cost $150 a year.Airlines and their bank partners have been steadily raising fees on rewards credit cards. Those cards generate billions of dollars a year for airlines, which make money when miles are sold to banks, which then give them to customers. American's move, announced Tuesday, follows similar increases by rivals such as United Airlines.Meanwhile, American Express last year raised the fee on its popular Platinum card, which comes with airport lounge access, to $895 a year from $695. JPMorgan Chase increased the annual fee on its competing card, the Sapphire Reserve, to $795 from $550.The new perks for the American card include three times AAdvantage miles earnings on hotels booked through American's portal, a credit of up to $120 every four years for Global Entry or TSA PreCheck, and a $100 annual statement credit on in-flight purchases like food.The new fees take effect Jan. 24.Read more CNBC airline newsWhy airfare could rise even more, but airline profits won’tBudget airline king Bill Franke warms to premium upgradesCompanies spurn airlines’ cheapest business class ticketsUnited’s next decision: What to do with all those Boeing 737 Max 10 seats it ordered years agoRecord heat, crowds drive offseason boom in international travel