Popular airline hits customers with steep fee hike for first time in 8 years
American Airlines will raise the annual fee on its Citi/AAdvantage Platinum Select and Business Mastercard from $99 to $150 from 24 January 2027. The nearly 52% increase is the first rise for the consumer Platinum Select card since 2018 and reflects a wider move by airlines towards more expensive rewards cards.
New benefits include up to $120 towards Global Entry or TSA PreCheck fees every four years, a $100 annual credit for in-flight purchases and more ways to earn miles on everyday spending. Existing perks such as preferred boarding, no foreign transaction fees and a free first checked bag on domestic American itineraries remain. The value of the changes will depend on how often cardholders fly American and use the credits; similar fee increases have been made by Delta, Southwest and United.
In short
- American Airlines is raising two card fees from $99 to $150.
- The increase takes effect on 24 January 2027.
- New credits may offset the cost for frequent users.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The higher fee may be justified by the added credits and expanded ways to earn miles, which could outweigh the increase for customers who regularly fly American and use the benefits. It also reflects airlines’ effort to fund richer rewards while adapting their cards to customers’ wider spending and travel needs.
The case against
A 52% fee increase is substantial, and the new credits may not make up the difference for customers who rarely fly American or cannot use them. Raising the price of a long-standing card also risks reducing its value for existing customers, especially if they mainly rely on perks that remain unchanged.
Explained simply
American Airlines is a major US carrier whose loyalty programme, AAdvantage, lets travellers collect miles through flights and spending. The airline works with Citi to offer credit cards that earn those miles and provide travel perks.
Airline rewards cards often charge an annual fee in exchange for benefits such as checked bags, priority boarding or credits towards travel-related costs. American’s card changes follow similar fee rises by Delta, Southwest and United, as airlines seek to make these products more valuable while charging more.
For cardholders, whether a higher fee is worthwhile depends on how often they fly with the airline and use the benefits. The changes also reflect a broader shift in how airlines package loyalty rewards and travel services.