United Surges 6% As Management Unleashes New Price Hikes to Squeeze Customers Dry…

United Airlines just pulled the old "raise prices but call it a perk" routine, and if you’ve got one of their Chase-backed airline credit cards or a United Club lounge membership, you’re about to feel the burn. The airline just announced steep price hikes across the board—annual fees on its credit cards are jumping by as much as $170, and lounge memberships are seeing a $100+ increase. But don’t worry, United promises you’re getting “bigger perks” to make it all worth it (which is presumably why shares are soaring on the news, up 5.60% today). 

LOL, Riiiiight (Source: Giphy) 

So with these new illusionary perks, how much more are card holders paying? Well, if you’re holding a United credit card, here’s what’s coming: Explorer card goes up $95 to $150, Quest card jumps from $250 to $350, and the ultimate United Club card, is rising from $525 to $695 (yes, almost $700 for a friggin’ credit card). And if you were thinking, “Screw it, I’ll just get a lounge membership instead…” United’s got news for you as the individual United Club membership just ripped faces off by going from $650 to $750, while Family memberships jump from $1,200 to $1,400. That’s right. $1,400 per year to sit in a room with free pretzels and lukewarm airport Chardonnay.

(Source: Daily Mail) 

Now, what’s funny here is that United swears they’re not just milking your wallet for fun. According to Richard Nunn, CEO of MileagePlus, the new pricing is totally justified because the perks are getting better. So what are these “bigger perks” you’re suddenly paying more for? Rideshare credits (because Uber and Lyft still exist, I guess?), Instacart+ memberships, discounts on award flights (LOL, sure), and easier elite status qualification. Translation: "You’ll still struggle to get upgrades, but spend enough and we’ll pretend to like you."

(Source: Barrons) 

Oh and for lounge members? United says the price hike will help reduce overcrowding. That’s management lingo for “We’re making it so expensive that fewer people will bother showing up.” Now with that, let’s call this what it is: United saw Delta’s credit card and lounge price hikes and decided to play follow-the-leader. 

For years, airlines have been nickel-and-diming customers with bag fees, seat selection charges, and even basic human decency costs. But the real money? Credit cards. Co-branded airline credit cards are gold mines, generating billions in revenue thanks to transaction fees, annual fees, and people chasing status like it actually matters. Additionally, the move also forces more travelers to sign up for the United Club credit card instead of paying for a stand-alone lounge membership—because at this point, the card is the better deal.

(Source: Giphy) 

Moral of the story here? Suck it up or switch airlines. If you’re a United loyalist, you’ve got two choices: Keep paying up and pretend the perks are worth it or jump ship to another airline—until they do the same thing (which they will). However, with travel demand slowing down and credit card rewards devaluing faster than my buddies memecoin portfolio, airlines need new ways to squeeze extra revenue from their most loyal customers. And guess what? You’re the product. And Wall Street couldn’t be happier. 

In the end, enjoy having one less kidney to relish in United's new perks. But hey, if you’re an investor who just saw your position moon today, I guess it’s worth it, right? Right. Of course, do what you will with this information and place your bets accordingly, friends! Until next time…

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock—right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside last week's Stocks.News premium article—click here to check it out ASAP! 

Stocks.News holds positions in United Airlines and Uber as mentioned in the article.