United Airlines and Chase are overhauling their co-branded credit card lineup, increasing annual fees while introducing new benefits like travel credits and memberships. They aim to boost card value despite a potential travel slowdown.
United Airlines, the world’s largest carrier by passenger traffic, is significantly revamping its credit card offerings in partnership with Chase. This overhaul involves an increase in annual fees across the board, coupled with introducing new benefits that the airline asserts will enhance the overall value proposition for cardholders.
The annual fee for the United Explorer card is set to rise from $95 to $150. The annual fee for the United Quest card will increase from $250 to $350. The premium United Club Card will experience the most substantial increase, moving from $525 to $695 annually.
To offset these higher costs, United and Chase are adding a suite of new perks designed to appeal to frequent travelers. These include airline services and ride-sharing credits, complimentary Instacart+ memberships, and bonus awards for hotel bookings made through their platform. Furthermore, the airline has stated that it will be easier for travelers to attain elite status within its loyalty program through spending on select cards. Executives maintain that the expanded array of benefits will ultimately outweigh the increased annual fees for cardholders.
In a related move, United announced on Monday that the price of its airport lounge memberships will also increase for individuals who do not hold the United Club Card. The airline cited ongoing renovations and the addition of new lounge locations as drivers for this change, stating that the revised membership program will align more closely with competitor pricing and help manage lounge capacity. An individual lounge membership will now cost $750 per year, up from $650 for those without elite status. A membership granting access for up to two guests (or one adult and accompanying children) will see its price rise to $1,400.
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These changes come when there are indications of a potential shift in consumer travel behavior. Growing consumer anxiety has reportedly led to a slowdown in travel planning, which could impact airlines’ near-term revenue forecasts. Data from Airlines Reporting Corp. shows a 3.5% year-over-year decline in sales through travel agencies in February, attributed to lower fares and a decrease in passenger trips.
Despite these broader economic signals, United Chief Executive Scott Kirby communicated to employees earlier this month that while the company has observed a slowdown, it intends to capitalize on the situation. “Our plans haven’t changed,” he affirmed in an internal message.
Historically, co-branded credit card programs have served as a buffer for airlines against fluctuations in travel demand. Banks purchase miles from airlines and distribute them to cardholders as rewards for new account sign-ups and ongoing spending. This arrangement provides airlines with a consistent revenue stream tied to card usage, independent of ticket sales.
Richard Nunn, CEO of United’s MileagePlus loyalty program, noted that the airline experienced record levels of co-branded card spending last year, and this positive momentum has continued into the current year. “Things are looking strong,” he stated.
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The newly introduced benefits will be effective immediately for existing United credit card holders. However, the increased annual fees will not take effect until later. Specifically, for current United Explorer cardholders, the higher fees will be applied on or after January 1, 2026. This phased rollout aims to provide existing customers with enhanced benefits before the price increase occurs.
