American Airlines announced a significant increase to its co-branded credit card annual fees, effective January 24, 2027 [1]. The annual fee for both the Citi/AAdvantage Platinum Select MasterCard and the Citi/AAdvantage Business MasterCard will increase from $99 to $150, representing a nearly 52% fee increase [1]. This marks the first price adjustment for the popular Platinum Select consumer card since 2018, signaling a notable shift in the airline rewards landscape [1].
To offset the higher fee, American Airlines, Citi, and MasterCard are introducing several new benefits [1]. These include up to $120 in annual credits toward Global Entry or TSA PreCheck application fees every four years, and a new $100 annual statement credit for in-flight purchases—replacing the previous 25% food and beverage discount [1]. The credit now covers broader in-flight expenses including Wi-Fi, which was previously excluded [1]. Additionally, the personal Platinum Select card will offer enhanced earning rates, including three miles per dollar on eligible AAdvantage Hotels and Cars bookings, and two miles per dollar on gas, EV charging, select streaming services, and eligible Rides and Rails purchases [1]. Existing benefits such as preferred boarding, no foreign transaction fees, and free first checked bags remain intact [1].
Industry experts offered mixed perspectives on the value proposition. Nick Ewen, editor-in-chief of The Points Guy, noted that travelers who regularly spend money on American flights or already pay for Global Entry or TSA PreCheck could offset the higher fee with the new credits [1]. However, Ewen cautioned that "if you're only flying American once a year, you may not be able to stomach that additional increased annual fee" [1]. The fee increase reflects a broader industry trend, as American joins Delta, Southwest, and United in raising annual fees on airline rewards cards, with entry-level airline cards increasingly moving from around $100 to $150 annually [1].
CONCLUSION
American Airlines' 52% fee increase to $150 annually represents a significant shift in airline credit card pricing, though new travel credits and enhanced earning rates aim to justify the higher cost for frequent flyers [1]. The move aligns with broader industry trends among major carriers, though the value proposition varies significantly depending on individual travel habits and spending patterns [1].