By Alison Sider

United Airlines is increasing fees for its co-branded credit cards and access to its airport lounges.

The details

United, the world's largest airline by passenger traffic, is revamping its credit cards with Chase, raising the annual fees but adding benefits that the airline said will make the cards more valuable.

   -- The United Explorer card will now cost $150 each year, up from $95 
 
   -- The United Quest card fee will climb to $350 a year from $250 
 
   -- The United Club Card will cost $695 a year, up from $525 

New perks include airline and ride-share credits, Instacart+ memberships and hotel-booking awards. The company said it made it easier for travelers to reach elite loyalty-program tiers with spending on certain cards. The array of benefits outweighs the higher fees, executives said.

United said Monday that the price of lounge memberships would rise for those who don't have the club card. The carrier has been renovating clubs and adding new ones, and said the new membership program would align more closely with competitors and help manage crowds.

An individual membership will cost $750 a year, up from $650 for someone without elite status. A membership that includes access for up to two guests (or one adult and children) will now cost $1,400.

The context

The moves come as increasingly anxious consumers have started to hold off on making travel plans, denting airlines' near-term revenue forecasts. Sales through travel agencies fell 3.5% in February from a year earlier, according to Airlines Reporting Corp., with both lower fares and fewer passenger trips.

United Chief Executive Scott Kirby told employees earlier this month that the company had seen a slowdown, but would take advantage of it. "Our plans haven't changed," he said in an internal message.

In the past, co-branded credit cards have helped insulate airlines from swings in travel demand. Banks buy miles from airlines and distribute them to cardholders as a reward for signing up for new cards and using them to make purchases. As a result, airlines take in revenue whenever consumers swipe their cards, not just when they buy tickets.

United had record levels of co-branded card spending last year and momentum has carried into this year, said Richard Nunn, CEO of the airline's MileagePlus loyalty program. "Things are looking really, really strong," he said.

For existing cardholders, new card benefits will kick in immediately, but fees won't rise until later this year. For existing Explorer cardholders, fees will rise on or after Jan. 1, 2026.

Write to Alison Sider at alison.sider@wsj.com

(END) Dow Jones Newswires

March 24, 2025 08:00 ET (12:00 GMT)

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