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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