United Airlines to Increase Club Fees in 2013

by Christopher Freeburn | December 28, 2012 11:31 am

United 1 300x199 United Airlines to Increase Club Fees in 2013[1]When the calendar flips early next week, the cost of relaxing at United Continental‘s (NYSE:UAL) airport lounges will go up[2].

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.

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[3]) 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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/United-1.jpg
  2. airport lounges will go up: http://www.cnbc.com/id/100339772
  3. DAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DAL

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