American Airlines Citi Card Fee Rises to $150: Who Should Keep, Downgrade or Cancel

Airline credit cards are getting more expensive, and American AirlinesAAL is the latest to join the trend. The carrier and CitigroupC are raising annual fees on two popular AAdvantage cards while introducing new travel credits and rewards.

The changes could benefit frequent flyers, but cardholders who rarely use the extras may end up paying more for little in return.

What's changing in January

Starting Jan. 24, 2027, the annual fee on the Citi / AAdvantage Platinum Select and Citi / AAdvantage Business cards will increase from $99 to $150. It's the first increase since 2018, when Citi raised the fee from $95.

Existing cardholders will receive the new benefits on Jan. 24 and pay the higher fee at their next renewal. New applicants will continue to have their first-year fee waived.

In return, Citi is adding up to $100 in annual statement credits for inflight food, drinks, and Wi-Fi, up to $120 toward Global Entry or TSA PreCheck every four years, and a complimentary Walmart+ membership valued at $98.

The existing 25% inflight discount will disappear, although popular benefits such as a free checked bag and preferred boarding will remain.

Are the new benefits worth $51?

The higher fee adds $51 to the annual cost, which means cardholders need to use at least some of the new benefits to come out ahead.

For regular American flyers, the $100 inflight credit may be the most useful addition. Previously, spending $100 on eligible inflight purchases would save just $25 through the 25% discount. Under the new structure, eligible spending could earn the full $100 back in statement credits.

The Walmart+ membership could also offset much of the increase, provided it's a service you already use. Citi is offering a 50% discount on FOX One subscriptions as well, although that benefit will matter less to anyone who doesn't subscribe.

Meanwhile, the Global Entry or TSA PreCheck credit offers up to $120 every four years. That's equivalent to $30 annually, but its value depends on whether you're due to apply or renew.

Citi is also expanding rewards, offering 3 miles per dollar on eligible AAdvantage hotel and car bookings and 2 miles on streaming, rides, rail travel, and EV charging.

The annual flight discount will increase from $125 to $150, although qualifying requires $20K in card spending each membership year. That's a substantial threshold for anyone who uses the card only occasionally.

American Airlines isn't alone in charging more for travel rewards. American Express raised its Platinum card fee from $695 to $895 last year, while JPMorgan Chase increased the Sapphire Reserve fee from $550 to $795.

Should you keep your card?

Frequent American Airlines travelers have the strongest case for keeping it. If you regularly check bags, purchase inflight Wi-Fi, or use the new statement credits, the benefits could outweigh the $150 fee.

For occasional flyers, the calculation is less straightforward. A free checked bag can still provide meaningful savings, but there's little reason to assign full value to credits for services you wouldn't otherwise purchase.

If the higher fee no longer makes sense, consider downgrading to a no-annual-fee AAdvantage card, subject to Citi's product-change eligibility rules. This may allow you to preserve your account history without continuing to pay an annual fee.

Canceling is another option, particularly if you signed up for a welcome bonus and rarely use the card. Just consider how closing the account might affect your available credit and credit history.

Before the changes take effect, check your renewal date and review how much you spent on eligible American Airlines purchases over the past year. Compare those savings with the additional $51 and decide whether the new credits justify keeping the card.