Airline Card Fees Soar: Are New Perks Worth It?

Starting January 24, 2027, American Airlines is increasing the annual fee for its popular Citi/AAdvantage Platinum Select Mastercard and Citi/AAdvantage Business Mastercard from $99 to $150. This marks the first price adjustment for the consumer card since 2018. The airline, in partnership with Citi and Mastercard, is introducing new benefits to mitigate the $51 fee increase. These include enhanced ways to earn AAdvantage miles on everyday spending and a $120 credit every four years towards Global Entry or TSA PreCheck application fees. Additionally, a new $100 annual statement credit for in-flight purchases replaces the previous discount. This credit is applicable to a wider range of expenses, including Wi-Fi, unlike the prior discount system.

Cardholders who frequently spend on American Airlines flights or use Global Entry/TSA PreCheck may find the new benefits valuable enough to offset the higher annual fee. However, for infrequent flyers, the increased cost might not be justifiable. The changes in reward earning on everyday purchases include 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. Existing perks like preferred boarding and no foreign transaction fees remain. This move by American Airlines aligns with a broader industry trend, as Delta, Southwest, and United have also implemented similar annual fee increases for their entry-level airline cards, which are now often priced closer to $150.