United Airlines to Increase Club Fees in 2013

It's also ending its three-year membership option

   

United Airlines to Increase Club Fees in 2013

United 1 300x199 United Airlines to Increase Club Fees in 2013When the calendar flips early next week, the cost of relaxing at United Continental‘s (NYSE:UAL) airport lounges will go up.

The airline says increased membership fees for its United Club  — an additional $25 for individuals and up to $100 for members with spouses — are needed to pay for upgrades to its lounges, CNBC notes.

airplane cabin interior empty 185 flickr United Airlines to Increase Club Fees in 2013
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With the increased fees, General members of United Club will pay $500 a year. Premier Silver members, who fly 25,000 miles annually, will pay $475, while Premier Gold members, who fly at least 50,000 miles annually, will pay $450. Premier Platinum members will pay $425 and Premier 1K members, who fly at least 100,000 miles annually, will see their membership fees rise to $400.

Rival airlines charge similar rates for their lounge memberships, with Delta (NYSE:DAL) charging between $300 to $450 for individuals, depending on miles flown during the year. Delta hasn’t announced any plans to increase those fees.

United Airlines is also ending its three-year membership deal, effective at the end of this year. Members who chose that option could save up to $250 over the term of the membership, but the company said the option had been dropped due to lack of customer interest.

Shares of United Airlines slipped almost 1% in Friday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/united-airlines-to-increase-club-fees-in-2013/.

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