On Monday 24 March, United Airlines has announced updated annual fees for its rewards cards. The new fees will be applied to new members, while existing members will be able to keep onto their tariffs until their membership expires.
In a bid to make the cards “more valuable to customers”, United Airlines has increased the fees of its annual airport lounge membership and its rewards credit cards. All new benefits will apply directly to both new and existing members, while the latter will be able to enjoy the old fees until their next annual renewal date on or after 1 August 2025.
“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,” said Richard Nunn, chief executive of United’s MileagePlus loyalty program, in a statement.
As far as annual airport lounge membership for passengers without elite status goes, an individual United Club membership will now cost $750 or 94,000 miles a year instead of $650 or 85,000 reward miles. The so-called ‘All Access’ membership, which lets customers bring a maximum of two guests into the company’s airport lounge, will cost $1,400 or 175,000 miles. Previously, the normal membership at $650 allowed travellers to take up to two guests into the lounge.
As Nunn said United Airlines added around 17 million Mileage plus members to its portfolio “over the past few years”, the new fees are also a way to combat overcrowding of said lounges. Recently, the rise of members with lounge access already prompted American, United Airlines, and Delta Air Lines to introduce separate tiers of lounges for those travelling in long-haul business class and to open larger lounges generally speaking.
Credit cards for extra revenue
United Airlines’ credit card fees, too, are on the rise and are made alongside its banking partner JPMorgan Chase. The United Explorer card will now cost $150 a year instead of $95, including a $60 rideshare credit. The United Quest card fee will be $350 a year, up from $250. It will include $100 of rideshare credit, two extra legroom seat upgrades and $200 in United travel credits. Finally, the United Club Infinite Card will cost $695 a year instead of $525. The card includes an annual lounge membership, and $150 in rideshare credit and holders can earn Premier 1K elite status through card spending and bonus qualifying points.
Over the last few years, loyalty programs and co-branded credit cards have been representing an important extra revenue stream for airlines. As far as United went, ‘other’ revenue increased by 10 per cent in 2024 due to extra credit card spending, United Club membership purchases and one-time lounge passes. This totalled a $3.49 billion revenue stream. However, airlines are also increasingly being accused of increasing the cost of their loyalty programs in a bid to maximise revenue and make customer rewards seem more exclusive.
