United Airlines hikes lounge fees to $1,400 as loyalty revenue surges to $3.49B

United Airlines has announced price increases on its airport lounge memberships and co-branded credit cards, aiming to capture more revenue from its booming MileagePlus loyalty programme.

With loyalty-related income reaching $3.49 billion in 2023, up 10% year-on-year, the US airline is now testing how much more travellers are willing to pay for premium perks.

The new fees, which take effect from Monday for new sign-ups, also coincide with fresh sign-up bonuses and expanded benefits including rideshare credits and award flight discounts. Existing members will retain current benefits until their plans expire.

Lounge fees rise to $1,400

United is launching a two-tier system for its United Club lounge memberships. Individual access now costs $750 annually or 94,000 loyalty miles, while a pass allowing entry for up to two guests will be priced at $1,400 or 175,000 miles.

Previously, customers paid $650 for membership, which included two guest passes.

While discounts were previously offered to elite MileagePlus members, the new structure standardises pricing.

Current members will retain their benefits until their memberships are up for renewal.

The changes apply to access across United Clubs and Star Alliance partner lounges globally, reflecting an industry trend of monetising once-included travel services.

Card fees increased to $695

Fees for United’s co-branded credit cards from JPMorgan Chase are also going up.

The United Explorer card will now cost $150 annually, up from $95. It includes a $60 rideshare credit.

The United Quest card will be priced at $350, up from $250.

New perks include $100 in rideshare credits, $200 in United travel credits, and two upgrades to extra legroom seats per year.

Meanwhile, the United Club Infinite Card is seeing the largest jump, going to $695 from $525.

The premium card includes United Club lounge access, $150 in rideshare credits, and offers a pathway to Premier 1K elite status through spending and bonus points accumulation.

These fee hikes are now in effect for new sign-ups from March 18, 2025, though the added benefits apply to existing cardholders immediately.

MileagePlus adds 17m members

United’s changes come as its MileagePlus programme continues to see substantial growth.

The airline has added around 17 million members to the scheme over the past two years.

Loyalty revenue is increasingly significant for airlines. United generated $3.49 billion in “other” revenue in 2023, according to its latest annual filing.

This category includes income from co-branded card usage, third-party partnerships, and airport lounge memberships.

The year-on-year increase was attributed mainly to higher spending on United credit cards and broader participation in the loyalty ecosystem.

With many airlines struggling to generate consistent profit from passenger fares alone, loyalty schemes have become a critical part of the business model, especially as customers continue to seek premium travel experiences post-pandemic.

Loyalty perks drive new customer acquisition

United’s strategy reflects broader efforts in the airline industry to bundle premium perks with financial products.

Airlines across the US and UK have steadily unbundled services that were once complimentary, including seat assignments and checked baggage, and are now offering them as part of premium credit card packages.

The changes to United’s credit card structure aim to improve customer value while increasing revenue through high-fee cards and expanded usage.

United has been developing the upgraded card portfolio for over a year and is counting on the enhanced rewards to continue driving sign-ups and card usage.

While the fee hikes may test consumer tolerance, the combination of added benefits and growing demand for travel perks suggests that United’s focus on loyalty monetisation is unlikely to slow anytime soon.