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United Airlines to Increase Club Fees in 2013

It's also ending its three-year membership option


United AirlinesWhen 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.

Southwest Airlines to Add New Fees Next Year
Southwest Airlines to Add New Fees Next Year

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,

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