United Airlines Raises Rewards Fees and Enhances Benefits

United Airlines is making notable changes to its rewards credit cards and annual airport lounge memberships as part of an ongoing effort to add value for its most dedicated flyers. The carrier recently announced that it is raising fees for its popular co-branded credit cards and lounge passes, while simultaneously introducing new benefits designed to attract and reward frequent travelers. The move is part of a broader industry trend, as airlines adjust loyalty programs to better serve top spenders amid challenges like crowded first-class cabins and busy airport lounges.

The changes, which take effect immediately for new sign-ups and will be applied to existing cardholders, reflect United’s commitment to ensuring that increased costs are balanced by enhanced perks. Richard Nunn, chief executive of United’s MileagePlus loyalty program, emphasized that while there are fee increases, the airline has been very careful to ensure that the added benefits significantly outweigh the additional cost. The company has been working on these adjustments for the past year as part of a comprehensive review of its card portfolio.

Among the updates are new sign-up bonuses for the co-branded cards issued by JPMorgan Chase, as well as new cardholder benefits that include rideshare credits and award flight discounts. For instance, the United Explorer card fee will now be $150 per year, up from $95, and it comes with a $60 rideshare credit. The United Quest card fee is being increased to $350 per year from $250, offering cardholders $100 in rideshare credits, two upgrades to extra legroom seats, and $200 in travel credits. The premium United Club Infinite Card fee will jump to $695 annually from $525, and it will continue to include an annual lounge membership, $150 in rideshare credits, and the opportunity to earn Premier 1K elite status through card spending and bonus qualifying points.

United is also reconfiguring its airport lounge membership options. Starting Monday, the airline will offer two tiers of United Club memberships. An individual membership, which grants access solely to the passholder, will cost $750 a year or 94,000 United loyalty points. For those who wish to bring up to two guests into the lounge, the membership fee will be $1,400 or 175,000 miles, covering both United Clubs and Star Alliance partner lounges. Previously, memberships that allowed two guests were priced at $650 annually, with additional discounts available for customers with elite frequent flyer status. Current members will continue with the terms they originally signed up for until their membership expires.

These adjustments come at a time when airlines are increasingly focused on loyalty revenue. United reported that “other” revenue—which includes income from rewards credit cards, nonairline partners, and lounge memberships—reached $3.49 billion last year, a 10% increase over the previous year. This significant boost highlights the growing importance of ancillary revenue streams for airlines in an industry where passenger and cargo revenues are often subject to fluctuations.

By refining its rewards program, United aims not only to reward its most loyal customers but also to attract new ones who value premium travel experiences. As the number of MileagePlus members continues to grow—adding about 17 million over the past couple of years—United’s updated card perks and lounge offerings are expected to drive further engagement and satisfaction among its flyer base, turning each journey into a rewarding adventure from start to finish.

Sources: AirGuide Business airguide.info, bing.com, cnbc.com