American Airlines Raises Rewards Card Fees for First Time Since 2018

The company’s decision to move the annual fee up from $99 reflects a persistent push by airlines and banking partners to extract more value from credit card portfolios. These products represent a massive revenue stream, relying on the sale of frequent flyer miles to banks for customer distribution. The updated terms include a $120 credit for Global Entry or TSA PreCheck every four years, 3X miles on hotel bookings, and a $100 annual statement credit for in-flight food and beverage purchases.

This strategy mirrors recent aggressive pricing across the aviation sector. Competitors like United Airlines have already implemented similar fee structures, while premium card issuers such as American Express and JPMorgan Chase have pushed annual costs for top-tier cards significantly higher. For American Airlines, the move signals a pivot toward balancing increased overhead with new, tangible perks designed to keep travelers within their specific booking ecosystem.