In an attempt to gauge how much customers are willing to pay for well-liked travel benefits, United Airlines is increasing the cost of its rewards credit cards and annual airport lounge membership.


The carrier made the announcement on Monday along with new cardholder perks like rideshare credits and award flight discounts, as well as sign-up bonuses for its co-branded cards from JPMorgan Chase.

“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.

As the number of travelers with elite status and premium credit card holders increases, they have also tightened entry requirements and increased the cost to gain access to popular airport lounges, which has caused crowding at some establishments. For passengers flying in long-haul business class, American, United, and most recently, Delta Air Lines, operate distinct lounge tiers. In recent years, all three airlines have opened larger lounges.