United Airlines Raising Fees for Travel Perks

United Airlines announced changes Monday (March 24) to its lounge memberships and rewards credit card offerings.

According to a Monday news release from the company, the airline is increasing annual fees while simultaneously introducing new benefits and incentives for cardholders.

A CNBC report on Monday said that United individual lounge membership now costs $750 or 94,000 miles.

Members who want to bring two guests with them into United Club and Star Alliance lounges will have to pay $1,400 or 175,000 miles. Lounge memberships that included two guests previously cost $650 a year (there were discounts for customers with elite frequent flyer status).

According to the report, key credit card changes include:

• United Explorer card fees increase from $95 a year to $150, but cardholders get a $60 rideshare credit.
• United Quest card annual fees increase from $250 to $350, but will now include $100 in rideshare credits, two upgrades to extra legroom seats and $200 in United travel credits.
• United Club Infinite Card annual fees go from $525 to $695, and include an annual lounge membership, $150 in rideshare credits and the ability to earn Premier 1K elite status through card spending and bonus qualifying points.

Richard Nunn, the CEO of United’s MileagePlus loyalty program, told CNBC that these updates have been in the works for approximately a year. He said that while fees are increasing, there are added value and benefits that make the price increases worth it.

In addition, Nunn noted that United has seen a substantial growth in its MileagePlus membership, with approximately 17 million new members joining in recent years.

For existing card members, the new benefits are active immediately.

According to UpgradedPoints.com, the new annual fees will take effect after Aug. 1, except for the United Explorer card. Explorer cardholders will see changes on renewal dates on or after Jan. 1.

These moves come as United reported a 10% increase in “other” revenue that totaled $3.49 billion last year, according to the airline’s annual filing. This growth is largely attributed to increased spending on cards co-branded with JPMorgan Chase, partnerships outside the airline sector and income from lounge memberships.

As PYMNTS reported, the airline industry as a whole is facing lower first-quarter forecasts and may force the airlines to get creative with revenue strategies because of the turbulence.

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