American Airlines Raises Rewards Card Annual Fees for First Time Since 2018
American Airlines has increased annual fees on at least one of its major rewards credit cards, the first such hike in seven years.
American Airlines has raised the annual fees on one of its flagship rewards credit cards, marking the first increase of its kind since 2018, according to Business News. The move places the carrier in line with a broader industry trend of airlines and their banking partners adjusting the cost of co-branded travel cards upward.
Co-branded airline credit cards have become a significant revenue stream for major carriers, with fee income and loyalty program spending contributing substantially to overall profitability. When airlines and their issuing bank partners raise annual fees, it typically reflects increased costs associated with delivering card benefits — such as lounge access, free checked bags, and mileage bonuses — or a strategic effort to boost revenue from the loyalty ecosystem.
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The timing is notable given that 2018 represents a seven-year gap without a fee adjustment on this particular product, a period that saw significant inflation, shifting consumer travel habits, and intensifying competition among premium travel cards from banks such as Chase and American Express. Other carriers, including competitors in the domestic market, have similarly revised their card pricing structures in recent years.
For cardholders, a fee increase typically prompts a reassessment of whether the card's benefits outweigh its cost. Travel credit card experts generally advise consumers to tally the annual value of perks — such as companion certificates, priority boarding, and statement credits — against any new fee before deciding to keep or cancel a card.
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