American Airlines is increasing the annual fees on two of its rewards credit cards for the first time since 2018, marking a significant pricing adjustment for frequent flyers. The annual charge for the Citi AAdvantage Platinum Select World Elite Mastercard will rise from $99 to $150. Similarly, the Citi AAdvantage Business Mastercard will now have a $150 fee. This move reflects a broader trend in the airline industry and credit card market, where issuers are steadily raising fees to enhance profitability.

The increased fees coincide with the introduction of new card benefits aimed at travelers. Cardholders will now earn triple AAdvantage miles on hotel bookings made through American Airlines’ portal. In addition, the card offers up to a $120 credit every four years for Global Entry or TSA PreCheck applications, streamlining security and customs processing for frequent travelers. An additional $100 annual statement credit will be available for in-flight purchases, covering items such as food and beverages.

American Airlines’ decision follows similar fee hikes by competitors like United Airlines, as well as major credit card issuers including American Express and JPMorgan Chase. For instance, American Express increased the annual fee on its premium Platinum Card last year from $695 to $895, while JPMorgan Chase raised the fee on its Sapphire Reserve card to $795 from $550. These increases underscore an industry-wide effort to bolster revenue from the lucrative rewards credit card market.

The new annual fees for American Airlines cards will go into effect on January 24, 2027. The adjustments come as airlines seek to balance revenue growth with enhanced customer perks amid changing travel dynamics. For card users, the updated features and credits aim to provide greater value, though at a higher cost, aligning with the evolving competitive landscape of travel rewards cards.