American Airlines and Citi Raise Mid-Tier Card Fees to $150, Adding New Perks

Key points

• The annual fee for the Citi AAdvantage Platinum Select World Elite Mastercard and the Citi AAdvantage Business World Elite Mastercard will rise from $99 to $150 starting January 24, 2027.
• The Platinum Select card now offers 3x miles on hotel and car bookings through American’s portals, 2x miles on gas, EV charging, streaming, and transit, plus a complimentary Walmart+ membership and a 50% discount on FOX One.
• The Business card introduces a 'Self-Select' category allowing 2x miles on U.S. shipping, office supplies, or advertising services, along with a 25% discount on Melio subscriptions.
• Both cards now include up to $120 every four years for Global Entry or TSA PreCheck fees and up to $100 annually in inflight statement credits, replacing previous 25% discounts on inflight purchases.
• The fee increase is the first for these cards since 2018, aligning with recent hikes by American Express (Platinum card to $895) and Chase (Sapphire Reserve to $795).

Background

This fee increase follows a broader trend in the airline credit card industry, where issuers have been raising costs to offset inflation and enhance card value. In September 2026, Chase removed foreign transaction fees from its Freedom Flex card, while Southwest Airlines and United Airlines restructured their loyalty programs in late 2026, indicating a shift in how airlines and banks partner to reward frequent travelers. American Airlines, celebrating its centennial in 2026, is also updating its card portfolio to better reflect modern spending habits, as noted by Citi executives.

How outlets are covering it

CNBC highlights the fee hike as part of a broader industry trend, noting that American Airlines’ move follows similar increases by United Airlines, American Express, and Chase. Upgraded Points provides a detailed breakdown of the new benefits, emphasizing that the $100 inflight credit and Walmart+ membership may offset the $51 fee increase for active users. Citigroup frames the changes as an evolution of the card portfolio to meet the needs of diverse travelers, while NerdWallet focuses on the practical implications for existing cardholders, noting that those with the card for less than a year will receive details about the new fee timing on their November 2027 statement. All sources agree that the changes take effect on January 24, 2027, but differ in emphasis: CNBC and NerdWallet focus on the fee increase, while Citigroup and Upgraded Points highlight the added value and new earning categories.

Why it matters

The fee increase affects millions of cardholders and signals a shift in the value proposition of mid-tier travel credit cards. While the new perks, such as the Walmart+ membership and inflight credits, may appeal to frequent spenders, the higher cost could deter those who primarily use the card for basic benefits like free checked bags. This move also reflects the growing importance of co-branded cards as a revenue source for airlines, which generate billions annually from miles sold to banks.

What to watch

Cardholders should review their spending habits to determine if the new benefits justify the $51 fee increase. Those who frequently use inflight services, streaming platforms, or Walmart+ may find the card more valuable, while others might consider switching to lower-fee alternatives. The changes take effect on January 24, 2027, giving cardholders time to assess the impact before the new fees apply.