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The changes come as United has seen an uptick in revenue from co-branded credit cards and lounge memberships.
United Airlines announced Monday that it is raising fees for its credit card and lounge fees in a bid that the carrier says will make the cards more valuable to customers.
The changes, made alongside its banking partner JPMorgan Chase, include more benefits such as rideshare credits and complimentary Instacart memberships. The new fees go into effect Monday for new sign-ups. Benefits will still be active to existing customers.
The carrier is also making changes to its United Club lounge network. For passengers without elite status, individual memberships will now cost $750, a year, up from $650 a year. To invite up to two guests to a lounge, it will cost customers $1,400.
Here are the changes to United’s credit card fees:
- The United Explorer Card now has an annual fee of $150, up from $95.
- The United Quest Card now has an annual fee of $350, up from $250.
- The United Club Card now has an annual fee of $695, up from $525.
Loyalty programs and co-branded credit cards have shielded airlines from major changes in travel demand by giving them another revenue stream. Airlines typically sell miles to banks, which are then awarded to customers through sign-ups and spending on co-branded credit cards.
United said in its most recent annual report that other revenue increased by nearly 10% partly due to an increase in credit card spending, United Club membership purchases, and purchases of one-time lounge passes.
The changes come as some carriers have reported that they are seeing a slowdown in demand as a result of economic uncertainty surrounding the threat of tariffs and mass layoffs in the federal government. American Airlines, Delta Air Lines and Southwest Airlines lowered their first quarter outlooks due to declining consumer and corporate confidence. United has not released a first-quarter forecast.
Richard Nunn, the CEO of United MileagePlus, said the carrier had been working to make these changes to its credit cards for the past year, according to CNBC.
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
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