American Airlines Raises Annual Fees on Two Citi AAdvantage Cards to $150

American Airlines is raising the annual fee on two of its co-branded Citi credit cards to $150, marking the first increase since 2018 for its flagship consumer rewards card. The change takes effect Jan. 24 and arrives as airlines and their bank issuing partners continue to push rewards-card pricing higher across the industry. Alongside the higher fees, American is adding new benefits intended to soften the blow, including a credit for TSA PreCheck or Global Entry and bonus miles on hotel bookings.

For cardholders, the increase means reconsidering whether the added perks justify carrying the card. The move also fits a wider pattern in which major carriers and financial institutions have been steadily repricing popular travel and rewards cards upward, even as they bundle in statement credits and earning bonuses to retain customers.

What’s Changing With the Two Citi AAdvantage Cards

The annual fee on the Citi AAdvantage Platinum Select World Elite Mastercard will rise to $150 per year from $99. According to an American Airlines spokeswoman, that is the first increase since 2018, when the fee moved from $95 to $99. The Citi AAdvantage Business Mastercard will also see a fee increase and will now cost $150 per year.

Citi AAdvantage Platinum Select World Elite Mastercard

This consumer-facing card is taking the more noticeable jump. At $150, the annual fee represents roughly a 51 percent increase over the previous $99 rate. Cardholders will now need to weigh the higher cost against the card’s travel and spending benefits, which American is updating as part of the same announcement.

Citi AAdvantage Business Mastercard

The business version of the card is moving to a $150 annual fee as well. The source material does not specify the card’s previous annual fee, but the new price aligns it with the updated consumer card, suggesting American is standardizing pricing across its two primary Citi-issued AAdvantage products.

New Benefits Aimed at Softening the Fee Increase

American is not only raising fees; it is also adding new perks for both cards. Cardholders will earn 3X AAdvantage miles on hotels booked through American’s travel portal. The cards will also include a credit of up to $120 every four years for Global Entry or TSA PreCheck application fees, and a $100 annual statement credit for in-flight purchases such as food and beverages.

Key details at a glance: New annual fee of $150 for both the Citi AAdvantage Platinum Select and Citi AAdvantage Business Mastercards; effective Jan. 24; new benefits include 3X miles on portal hotel bookings, up to $120 every four years for TSA PreCheck or Global Entry, and a $100 annual in-flight statement credit.

How American’s Move Fits a Broader Industry Trend

Airlines and their bank partners have been steadily raising fees on rewards credit cards, in part because these products generate billions of dollars annually for carriers. Airlines profit when miles are sold to banks, which then distribute them to cardholders as rewards. American’s announcement follows similar increases by rivals across the credit-card market.

Competitor Fee Increases at a Glance

American Express last year raised the fee on its Platinum card to $895 from $695, while JPMorgan Chase increased the Sapphire Reserve annual fee to $795 from $550. United Airlines has also implemented comparable increases, indicating that American’s pricing decision is part of a sector-wide adjustment rather than an isolated move.

Is the Higher Annual Fee Still Worth It?

Whether the $150 fee makes sense depends heavily on how a cardholder travels and spends. The new $100 in-flight statement credit alone nearly offsets the $51 increase from the old $99 fee for the consumer card. The TSA PreCheck or Global Entry credit, worth up to $120 every four years, adds roughly $30 in annual value if used on schedule. Combined with 3X miles on hotels booked through American’s portal, the added benefits can meaningfully reduce the net cost of keeping the card.

Still, for infrequent flyers who rarely check bags, purchase in-flight items, or book hotels through American’s portal, the higher price may be harder to justify. Cardholders should calculate how much they realistically stand to earn and redeem before the Jan. 24 effective date, particularly if they are weighing the card against no-fee or lower-fee alternatives.

Bottom Line for Cardholders

American Airlines is aligning its Citi-issued AAdvantage cards with a $150 annual fee while layering in new travel credits and hotel-booking bonuses. The increase reflects a broader industry trend in which airlines and banks are testing how much rewards-card users will pay for access to miles, credits, and travel perks. For current cardholders, the coming months are an opportunity to review their spending patterns and decide whether the refreshed benefits package still delivers enough value to justify the higher cost.

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