United Airlines hikes fees for lounges and rewards cards

In the United States, United Airlines announced significant fee increases for its airport lounge memberships and rewards credit cards on March 24, 2025. This decision was made as part of an effort to manage overcrowding in lounges and respond to increased demand for premium services post-pandemic. The airline is now offering two tiers of membership for access to its United Club airport lounges, with a new 'All Access' membership allowing guests for $1,400 or 175,000 miles, a substantial jump from the previous fee of $650. Existing members will retain their current terms until their memberships expire. Furthermore, United Airlines adjusted its credit card fees, increasing the annual fee for the United Quest card from $250 to $350, which comes with new perks like $100 in rideshare credits and $200 in travel credits. Similarly, the United Explorer card's fee rises from $95 to $150, which includes an additional $60 rideshare credit. These changes follow a year-long review of the airline's card portfolio, with executives expressing a careful balance between value and cost. The strategy aligns with a broader trend among airlines like American and Delta, which also raised prices for access to lounges and premium services in recent years. Richard Nunn, head of United's MileagePlus loyalty program, highlighted the importance of ensuring that the increased fees were justified by the enhanced benefits. The adjustments aim to attract new customers as well as additional co-branded cardholders to support the growing lounge access demand fueled by an increase in travelers post-COVID. Loyalty revenue has significantly contributed to United's financial performance, particularly after a rebound in airline travel, with $3.49 billion reported last year from 'other' revenue sources, including co-branded card spending and lounge memberships. The company anticipates that the new perks and fee structures will encourage more travelers to subscribe to its credit card services, thereby continuing to capitalize on the lucrative loyalty program model and meeting the growing appetite for exclusive travel experiences.