United Airlines raises annual lounge rates and rewards credit cards

United Airlines We increase the annual airport lounge membership and its reward credit card fees. This is to test how much consumers fire for popular travel perks.

The carrier announced the changes on Monday, along with JPMorgan Chase co-branded card sign-up bonuses and new card holder perks, including ride-sharing credits and award flight discounts.

“Yes, there are fee increases, but we were very aware that increased value and profits would outweigh the increased costs of those cards,” Richard Nunn, chief executive of the United's MileagePlus Loyalty program, told reporters. United have been working on changes to their card portfolio for the past year or so, Nunn said.

The airline steadily raises prices for everything from check bags to seat allocations, offering perks that were offered free of charge as part of the package when customers signed up for co-branded credit cards.

United have added around 17 million mileage and members over the past “several years,” Nun says, and sees the perks of the new card as a way to encourage more United Flyers to sign up for co-branded cards.

Loyalty revenues from popular reward credit cards have given airlines involved. Aside from passenger and freight revenue, United have brought in $34.9 billion in “other” revenues, up 10% from last year. This was mentioned in last month's annual declaration, mainly due to an increase in co-branded card spending and other non-aviation line partners, as well as an airport lounge membership.

This is what's changing in the lounge:

• Starting Monday, United will offer two memberships to the United Club Airport Lounge Network.
• Individual memberships are $750 or 94,000 United Royalty Points per year, with access to pass holders only.
• For customers who want to bring up to two guests to the lounge, the United Club and Star Alliance partner lounges cost $1,400 or 175,000 miles.
• Lounge membership, which includes two guests, previously cost $650 a year, but customers with elite frequent flyer statuses had discounts.
• Customers with existing membership will maintain the terms they signed up until their membership expires.

This is some of the new benefits as the credit card fees have been changed.

• New fees will be effective with new sign-ups starting Monday, but perks will be active for existing card members.
• The United Explorer Card will start at $95, starting from $150 a year, with additional perks including $60 ride-sharing credits.
• The United Quest Card goes from $250 to $350 a year, and includes $100 ride-sharing credits, two upgrades to additional legroom seats, and $200 United Travel Credit.
• The United Club Infinite Card ranges from $525 a year to $695 a year. This includes the ability to earn Premier 1K Elite status through annual lounge membership, $150 ride-sharing credits, and card spending and bonus eligibility points.