United Airlines is updating its pricing for airport lounge memberships and co-branded credit cards, introducing new fees alongside extra perks. Effective immediately for new sign-ups, the changes test how much travelers are willing to spend for exclusive services. At the same time, United is adding incentives like rideshare credits and discounts on award flights, hoping to sweeten the deal.
Lounge Access Now Comes at a Higher Price
Travelers seeking comfort before flights now have to pay more for lounge access. Starting Monday, United Airlines offers two membership tiers for its United Club lounges. Individual memberships cost $750 annually or 94,000 miles, and only the pass holder gains access. For those who want to bring up to two guests, the price jumps to $1,400 per year or 175,000 miles.
Previously, lounge memberships, including guests, cost $650 annually, with discounts available for elite members. Current members will keep their terms until their subscriptions expire.
Richard Nunn, chief executive of United’s MileagePlus loyalty program, emphasized the value: “Yes, there are fee increases, but we were very, very cognizant of ensuring that the value increments and the benefits that are delivered outweigh any increase in the cost of those cards.”
Credit Card Changes Come with More Perks
Along with lounge price adjustments, United has raised fees on its co-branded credit cards with JPMorgan Chase while also unveiling new benefits to make the hike worthwhile.
- United Explorer Card: The annual fee has increased from $95 to $150, and it now includes a $60 rideshare credit.
- United Quest Card: The fee rises from $250 to $350, and it includes $100 rideshare credits, two extra legroom seat upgrades, and $200 in travel credits.
- United Club Infinite Card: It now costs $695 instead of $525. It offers annual lounge access, $150 in rideshare credits, and even a path to earn Premier 1K elite status through card spending and qualifying points.
These updates apply immediately to new cardholders. Existing members will receive the new benefits without paying the new fees until their next renewal cycle.
A Push to Grow Loyalty Amid Crowded Lounges
With over 17 million new MileagePlus members added in recent years, United is betting that enhanced perks will encourage more sign-ups. Due to crowding concerns, Airlines have been steadily raising prices on extras, such as checked bags and seat assignments, while making lounge access more exclusive.
Nunn noted that United has been refining its card offerings for over a year. “We were very, very cognizant of ensuring that the value increments and the benefits that are delivered outweigh any increase in the cost of those cards,” he told reporters.
Loyalty Programs Are Big Business for Airlines
United’s loyalty program has become a financial powerhouse. The airline reported $3.49 billion in “other” revenue last year, a 10% increase from the year before, largely thanks to co-branded card spending, lounge memberships, and partnerships outside of air travel.
This uptick shows the importance of non-ticket revenue to the airline’s overall strategy. By enhancing cardholder perks and raising membership fees, United is tapping more deeply into a lucrative market of frequent flyers and luxury-focused travelers.
Final Thoughts: Value or Expense?
While some customers may balk at higher fees, United Airlines is betting on added value to keep cardholders and lounge members on board. These enhancements, from award discounts to elite status benefits, are designed to meet growing demand from loyalty-driven travelers.
As Richard Nunn put it, “The benefits that are delivered outweigh any increase in the cost.” These updates might be worth the investment for those who fly often and seek premium travel experiences.