American Airlines and Citi Raise Annual Fees to $150 on Two Rewards Cards

American Airlines and Citigroup are raising the annual fees on two core co-branded credit cards from $99 to $150, marking the first price increase on the products since 2018. The changes apply to both the consumer Citi AAdvantage Platinum Select World Elite Mastercard and the Citi AAdvantage Business World Elite Mastercard. While an initial report indicated an effective date of Jan. 24, other program updates clarify that the new pricing and benefits roll out for existing cardmembers at their renewals starting Jan. 24, 2027.

The 52 percent fee adjustment comes as major airlines and their banking partners continue to extract billions of dollars annually from co-branded loyalty portfolios. Airlines generate substantial revenue by selling frequent flyer miles to banks, which then distribute them as rewards to cardholders. American’s fee hike follows similar upward adjustments across the travel rewards landscape, including rival United Airlines, as well as premium cards like the American Express Platinum, which rose to $895, and the JPMorgan Chase Sapphire Reserve, which increased to $795.

To balance the higher cost of ownership, Citi and American are layering on an assortment of fresh travel perks and statement credits across both affected cards. Cardholders will receive an annual statement credit of up to $100 for eligible inflight purchases such as food, drinks, and Wi-Fi access. Additionally, members can claim up to a $120 reimbursement toward application fees for Global Entry or TSA PreCheck once every four years. Both cards also introduce upgraded travel insurance coverages, including protections for trip delays, cancellations, lost luggage, and rental cars.

Earning rates are also expanding beyond traditional airline tickets. Both the consumer and business cards will now accrue three AAdvantage miles per dollar spent on hotel and rental car reservations booked directly through American Airlines portals. On the personal Platinum Select card, cardholders will receive a complimentary annual Walmart+ membership—which includes streaming access through Paramount+ or Peacock—along with a 50 percent discount on an annual FOX One subscription.

The personal card is also adjusting its everyday reward categories to target routine household spending. Citi is introducing two miles per dollar spent on select streaming services and eligible transit expenses under its Rides and Rails category, which encompasses subways, commuter rail, taxis, and rideshares. The existing double-miles bonus on gas station transactions will now extend to electric vehicle charging stations as well. Meanwhile, the annual flight discount awarded after spending $20,000 within a cardmember year is increasing from $125 to $150 upon renewal.

For small businesses, the Citi AAdvantage Business card incorporates a flexible reward model, permitting account holders to select a quarterly category—shipping services, office supply stores, or advertising—to earn two miles per dollar with no rewards cap. Furthermore, the carrier is formalizing a perk that enables both employee cardholders and the primary account holder to simultaneously earn elite-qualifying Loyalty Points on the same employee spending. Bank representatives confirmed this dual-earning structure now covers all account holders following the completed migration of legacy Barclays business cardholders into the Citi system.

Despite the overhaul, staple benefits on both cards will stay intact, including a free first checked bag on domestic flights for the cardholder and up to four companions, preferred boarding privileges, and the standard one Loyalty Point earned per dollar spent. New applicants will continue to receive a waived introductory annual fee of $0 for the first year. Other products in the carrier's portfolio, such as the no-fee MileUp card and the high-end Executive card, remain unaffected by the price increase, leaving travelers time to weigh whether the expanded benefits justify the higher fee.