Chase Bank has hiked the annual fee on its Air Canada Aeroplan credit card from $95 to $195, a $100 jump that cardholders will absorb whether or not the new perks justify the cost.
The bank paired the fee increase with a package of upgraded rewards, including bonus points on Air Canada flights, automatic elite status for new cardmembers, and a temporary double-points offer at grocery stores. But for consumers already stretched by inflation and rising costs across the board, a credit card fee that more than doubles overnight is hard to dress up as a favor.
The increase lands as credit card companies across the industry have been quietly raising annual fees and adjusting reward structures, moves that shift more of the cost burden onto the very customers these cards are supposed to benefit. Chase has not publicly stated a reason for the jump, The Sun reported.
Starting January 1, new cardmembers will receive automatic Aeroplan 25K Status without any spending requirement. That tier unlocks Priority Check-In, Priority Boarding in Zone 2, an additional baggage allowance, Star Alliance recognition at partner airlines worldwide, and eUpgrade credits on Air Canada flights. Cardholders also get a free checked bag on Air Canada flights.
Chase advertises up to five times total points per dollar spent on Air Canada purchases, three points from the card itself, plus an additional two points from Air Canada for travelers holding Aeroplan 25K status. Travel purchases outside Air Canada earn three points per dollar. The card also promises additional points on dining and gas station purchases, though Chase has not disclosed the specific rates for those categories.
Through December 31, cardholders can earn double points for every dollar spent at grocery stores. New customers who sign up can collect up to 115,000 bonus Aeroplan points, with 75,000 of those contingent on spending $4,000 in the first three months after account opening.
Chase has offered no public explanation for why the annual fee needed to jump by more than 100 percent. The bank did not say whether the increase applies immediately to existing cardholders or only kicks in at their next renewal cycle, a distinction that matters to anyone budgeting around a card they signed up for at half the current price.
NerdWallet, which reported on the new cardmember perks taking effect January 1, flagged the changes but did not address the timing of the fee increase for current customers either. That gap leaves cardholders guessing about when the higher charge will hit their statements.
The welcome bonus of 115,000 Aeroplan points looks generous on paper, but it is structured to require significant upfront spending. A cardholder who does not hit the $4,000 threshold in three months forfeits the larger tranche of 75,000 points, a deadline designed to drive early card usage, not necessarily to reward loyalty.
For travelers who fly Air Canada regularly, the math could work. Five points per dollar on Air Canada purchases and automatic elite status represent real value for road warriors who already spend heavily with the airline. Priority boarding, extra baggage, and upgrade credits add up over dozens of flights a year.
But most credit card holders are not frequent flyers. A consumer who signed up for a $95 card to earn modest travel rewards now faces a $195 annual charge, and the new perks are weighted heavily toward Air Canada loyalty, not general-purpose spending. Three points per dollar on broader travel purchases is competitive, but the grocery bonus expires at year's end, and the dining and gas station rates remain undisclosed.
The pattern is familiar. Banks roll out splashy new benefits alongside fee increases, betting that the headline perks will distract from the bottom-line cost. Consumers who do not cancel absorb the higher fee by default. Those who do cancel lose whatever points balance they have not yet redeemed.
When a company doubles your fee and will not even tell you why, the new perks are not a gift. They are the packaging.