Key Takeaways
• United Club membership fee increases to $640 annually starting August 13, 2024, reflecting a 16% rise from $550.
• United Explorer Card annual fee rises from $95 to $150 on March 23, 2025; initial sign-up bonus offers 80,000 miles.
• MileagePlus Premier Silver elite status now requires 5,000 PQPs and 15 PQFs starting early 2025, up from 4,000 PQPs and 12 PQFs.
United Airlines has made headlines with its decision to raise annual fees for its United Club lounges and co-branded rewards credit cards. These changes, which include increased costs and revamped benefits, reflect broader trends in the airline industry while sparking mixed reactions from travelers. The new fee adjustments aim to keep pace with rising operational costs and industry competition, but they also raise questions about affordability and value for loyal customers. Here’s an in-depth look at the fee hikes, updated benefits, and what they mean for travelers.
Increased Costs for Lounge Access and Credit Cards
One of the most notable changes from United Airlines is the increase in annual fees tied to its popular premium travel services. From lounge memberships to credit card benefits, travelers will need to pay significantly more to maintain access to United’s premium offerings.
United Club Membership Price Hike
Beginning August 13, 2024, the annual fee for a United Club membership jumped from $550 to $640. The 16% increase underscores the growing costs associated with offering comfortable lounges equipped with premium amenities, such as Wi-Fi, snacks, and beverages tailored to frequent flyers. For travelers accustomed to using the lounges to relax during layovers, this price adjustment is substantial. While the increase positions United’s memberships on par with competing airlines, it raises the question of affordability for less frequent flyers.
Credit Card Fee Increases
United Airlines offers a variety of co-branded credit cards to cater to different traveler profiles. These cards provide benefits such as earning airline miles, in-flight perks, and lounge access. However, all these cards are now subject to revised annual fees and updated benefit structures.
- United Explorer Card: Beginning March 23, 2025, the annual fee for the United Explorer Card increased from $95 to $150. Although the card now comes with an attractive sign-up bonus of 80,000 miles if users spend $3,000 within three months, existing cardholders might weigh the increased fee against the utility they derive from its perks.
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United Club Infinite Card: The fee for this premium option, which grants access to United Club lounges, rose moderately to $525 in February 2024. While the increase may not initially seem steep, it aligns with a broader trend of repricing elite travel perks.
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United Quest Card: On March 24, 2025, the Quest Card switched its $125 annual statement credit for United purchases to United TravelBank cash of the same value. While TravelBank cash works for United and United Express flights, it can’t be used for taxes or fees on award tickets, shrinking its flexibility for some travelers.
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United Presidential Plus Card: Favored by seasoned travelers, this card experienced a fee hike on July 20, 2024, moving from a tiered annual fee structure of $375-$395 to a flat $450 charge. While the card continues to offer premium travel benefits, cardholders are expected to meet higher spending thresholds to maximize its value.
Why United Airlines Is Raising Fees
United Airlines is not acting in isolation. Fee hikes and loyalty program updates are part of a strategic approach adopted by airlines dealing with challenges like rising costs, industry competition, and program overcrowding.
Managing Growing Costs
The airline industry has been facing increasing operational expenses due to inflation, fluctuating fuel costs, and the expenses tied to upgrading facilities and technology. By raising fees, United aims to balance expenses without compromising the quality of its products.
Staying Competitive
Other major airlines have also reevaluated their premium offerings and raised fees. By adjusting its own pricing structure, United ensures that its programs stay competitive within the industry while rewarding its most valuable customers.
Reducing Program Overcrowding
In recent years, travel loyalty programs have become more accessible, leading to congestion in premium customer benefits like lounges and elite-tier perks. Fee hikes and stricter entry requirements for earning elite status, such as MileagePlus Premier, help limit overcrowding and preserve the exclusivity of these programs.
Changes in the MileagePlus Program
For loyal United customers, the MileagePlus program’s new thresholds for elite status represent another significant change. Effective in early 2025, customers must meet higher spending and travel requirements to achieve privileged tiers.
To attain Premier Silver status, for instance, travelers now need 5,000 Premier Qualifying Points (PQPs) and 15 Premier Qualifying Flights (PQFs), compared to the previous requirements of 4,000 PQPs and 12 PQFs. These adjustments mean travelers will need to spend more and fly more frequently to maintain their elite status, which may alienate less frequent flyers.
Additionally, MileagePlus is offering new flexibility by allowing customers to convert their PlusPoints (earned mileage benefits) into TravelBank cash or qualifying points. While this change is attractive for some, it may not be enough to offset the frustration caused by the broader increases in costs and requirements.
Background on Airline Fee Trends
United Airlines’ changes echo a larger shift in the airline sector. Airlines have increasingly turned to ancillary fees—charges for services like seat selection, baggage, and lounge access—as a significant revenue stream. According to data from 2018 to 2023, U.S. airlines generated over $12 billion through seat-related fees alone.
Notably, this growing revenue reliance has attracted criticism. In December 2024, a U.S. senator publicly accused airlines of viewing passengers as “walking piggy banks,” highlighting the frustration faced by travelers bombarded with incremental fees. Meanwhile, in September 2024, the Department of Transportation initiated investigations into airlines, including United, to ensure loyalty programs and pricing structures remain fair and transparent.
How Travelers May Be Impacted
The reaction to United’s fee increases will differ depending on traveler habits. Budget-conscious flyers or infrequent travelers might see the rising costs as a deterrent and look for alternative airlines or loyalty programs. On the other hand, travelers who frequently fly with United and use its premium services might consider the changes a reasonable tradeoff for exclusivity and enhanced perks.
For high-paying customers, the adjustments reflect an effort to make services more tailored and exclusive. Business travelers, in particular, are less sensitive to annual fee increases, especially when weighed against the benefits of lounge access and Priority Boarding.
United Airlines’ Strategic Goals
For United Airlines, these updates are ultimately about streamlining its offerings for profitability. By focusing on high-value customers who are likely to stay loyal despite fee hikes, United is aligning itself with the broader industry shift toward monetizing loyalty through high spending rather than merely rewarding frequent travel. This focus on profitability and exclusivity could also serve as a model for other carriers looking to adapt to post-pandemic airline economics.
Conclusion
United Airlines’ decision to raise fees for its United Club membership, co-branded credit cards, and MileagePlus requirements signals a clear strategy to balance rising costs while targeting premium travelers. While these changes cater to its most valuable customer base, they may alienate budget-sensitive flyers or those who don’t use frequent flyer perks extensively.
For travelers, the key takeaway is that the premium travel landscape is changing, requiring periodic reassessment of the value provided by loyalty programs and premium services. Whether these shifts in annual fees and perks represent better value or eroded benefits will depend on individual travel habits. For more detailed information on United Airlines’ programs, visit the official United Airlines site.
For top-tier passengers investing in perks like United Club access, upgraded credit card benefits, or MileagePlus status, these changes could still represent good value. Ultimately, the decision to stay loyal will come down to whether United’s evolving offerings align with individual travel needs. As reported by VisaVerge.com, these changes may well establish a template for how airlines restructure loyalty programs going forward.
Learn Today
United Club Membership → A premium program offering access to airport lounges with amenities like Wi-Fi, snacks, and beverages for frequent flyers.
Co-branded Credit Cards → Credit cards issued through a partnership between a company (e.g., airline) and a financial institution, offering tailored benefits.
MileagePlus Program → United Airlines’ loyalty program awarding points for travel and spending, which can qualify members for exclusive benefits and elite status.
Ancillary Fees → Additional charges for services not included in a base fare, such as seat selection, baggage, or lounge access.
Premier Qualifying Points (PQPs) → A metric in the MileagePlus program representing spending towards achieving elite status tiers for loyalty benefits.
This Article in a Nutshell
United Airlines Ups Fees: What It Means for Travelers
United Airlines has raised fees for United Club memberships and credit cards, citing rising costs and competition. While perks like lounge access and bonus miles remain, these changes spark debate over value. For frequent flyers, it may be worthwhile; occasional travelers, however, should reassess benefits versus costs when choosing loyalty programs.
— By VisaVerge.com
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