American Airlines Raises Rewards Card Annual Fees for First Time in 7 Years
American Airlines is hiking annual fees on its rewards credit cards, the first such increase since 2018, joining a broader industry trend.
American Airlines announced an increase to the annual fees on at least one of its major rewards credit cards, marking the first such hike since 2018. The move places the carrier alongside other airlines and financial institutions that have similarly raised card fees in recent periods.
The fee increases reflect a broader industry pattern in which airlines and their banking partners periodically reassess the pricing of co-branded credit card products. Such adjustments are typically tied to enhancements in card benefits, inflationary pressures on program costs, or competitive repositioning within the travel rewards market.
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Co-branded airline credit cards have grown into significant revenue streams for major carriers, with agreement terms between airlines and issuing banks often running into the billions of dollars. Fee adjustments on these products can affect millions of cardholders who use the cards to accumulate miles and access travel perks.
Cardholders considering whether to retain their American Airlines rewards card following the fee increase may want to weigh the updated cost against the value of benefits such as free checked bags, priority boarding, and miles accrual rates, which are common features of such products.
Continue reading at Business News for the full details on the specific cards affected and the new fee amounts.
