United Airlines is raising annual fees for lounges and rewards credit cards. Here's what you need to know.
United Airlines is raising fees for annual airport lounge membership and its rewards credit cards, a test of how much consumers will shell out for popular travel perks.
United Airlines is raising fees for annual airport lounge membership and its rewards credit cards, a test of how much consumers will shell out for popular travel perks.
The carrier announced the changes Monday alongside sign-up bonuses for its co-branded cards from JPMorgan Chase, as well as new cardholder benefits including rideshare credits and award flight discounts.
“Yes, there are fee increases but we were very, very cognizant of ensuring that the value increments and the benefits that are delivered outweigh any increase in the cost of those cards,” Richard Nunn, chief executive of United’s MileagePlus loyalty program, told reporters. United had been working on the changes to its card portfolio for the past year or so, Nunn said.
Airlines have steadily increased the prices of everything from checked bags to seat assignments and offered perks that used to come for free as part of a package when customers sign up for co-branded credit cards.
They have also raised the price and tightened entry requirements to get into popular airport lounges as the number of premium-credit-card holders and travelers with elite status grows and has led to crowding at some facilities. American, United and most recently Delta Air Lines, operate separate tiers of lounges for customers traveling in long-haul business class, and they’ve all opened larger lounges in recent years.
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