United Airlines Raises Annual Fees for Lounges, Reward Credit Cards

2 weeks ago 6

United Airlines has announced fee raises for annual airport lounge membership and credit cards. The carrier has also changed some of its benefits, according to a CNBC report.

The airline launched sign-up bonuses for co-branded cards from JP Morgan Chase, along with new cardholder benefits that include ride-sharing credits and award flight discounts.

Richard Nunn, chief executive of United’s chief executive of United’s MileagePlus loyalty program said in a statement, “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. United had been working on the changes to its card portfolio for the past year or so.”

Airlines have steadily increased prices of checked bags and seat assignments and offered perks that used to be complimentary as part of a package when customers sign up for co-branded credit cards.

Nunn added, “United added about 17 million Mileage Plus members over the past couple of years” and sees the new card perks as a way to encourage more United flyers to sign up for co-branded cards.

United brought in $3.49 billion in other revenue (up from 10 percent from 2024), mostly due to an increase in co-branded card spending, airline partners and airport lounge memberships. This is addition to loyalty revenue from popular credit cards has given airlines a windfall.

Lounge changes include:

Two tiers of memberships to the United Club airport lounge network.
Individual memberships now cost $750 a year or 94,000 United loyalty points, with access for the passholder only.
Customers looking to take up to two guests into the lounge will pay $1,400 or 175,000 miles, for United Clubs and Star Alliance partner lounges.
Lounge memberships, including two guests, previously cost $650 a year, though there were discounts for customers with elite frequent flyer status.
Customers with an existing membership will keep the current terms until their membership expires.

Credit card fees and new benefits changes:

New fees go into effect with new sign-ups starting March 24, 2025, but benefits will be active for existing card members.
United Explorer card increases to $150 a year from $95, and additional benefits include a $60 rideshare credit.
United Quest card goes to $350 a year from $250 and includes $100 of rideshare credits, two upgrades to extra legroom seats and $200 in United travel credits.
United Club Infinite Card increases to $695 a year from $525, includes an annual lounge membership, $150 in rideshare credits and the ability to earn Premier 1K elite status through card spending and bonus qualifying points.

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