United Airlines, in partnership with JPMorgan Chase, is increasing annual fees for its credit cards and United Club lounge memberships, effective March 27, 2025. The move aims to enhance the value proposition for cardholders with new benefits, but the increased costs require careful consideration for frequent travelers.
Credit Card Fee Increases:
- United Explorer Card: Annual fee rises from $95 to $150.
- United Quest Card: Annual fee increases from $250 to $350.
- United Club Card: Annual fee jumps from $525 to $695.
New Cardholder Benefits: To offset these increases, United Club membership is introducing new perks such as rideshare credits, complimentary Instacart memberships, United Hotel Credits and bonus PQP (Premier Qualifying Points) on select cards.
Lounge Membership Price Hike: Those without elite status face increased United Club lounge membership fees. Individual memberships now cost $750 annually, up from $650. Bringing up to two guests into the lounge now has a price tag of $1,400.
Strategic Rationale: These changes are part of United’s ongoing effort to strengthen its MileagePlus loyalty program and provide greater value to cardholders, according to MileagePlus CEO Richard Nunn. The strategy aims to generate higher revenue from the airline’s co-branded credit card program, historically a reliable revenue stream.
Impact on Consumers: Existing cardholders will see the fee changes implemented starting in January and August of 2026. Consumers must carefully evaluate whether the new benefits justify the higher annual fees and if these benefits align with their spending habits.
In a dynamic airline industry landscape, consumers are encouraged to assess the evolving value of loyalty programs and credit card benefits. As United navigates economic uncertainties, its approach will test the price elasticity of its customer base and their loyalty in the long term.
