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One thing that looks sure to continue year-on-year is the continued rise in airline fees and charges. In 2015 U.S. airlines took in a touch over $11 billion in fees and charges, almost 25% more than 2014, and it’s passengers wearing the expense.
Credit cards that offer airline and travel credits have become a popular method of counteracting ever-rising airline fees and charges, with everything from carry-on bags to bottled water now costing on some airlines.
First adopted by Amex for its Platinum card pair, followed closely by the Citi Prestige® Card. Chase has now taken the annual travel credit to a whole new level, offering up to $300 on the Chase Sapphire Reserve®, which covers everything from airline tickets, hotel stays, and seat upgrades to in-flight entertainment and excess baggage fees.
The art of rewards travel is to reduce costs as much as possible, but the rise in taxes, fees, and incidental charges means frequent flyers need to adapt their redemption strategies.
So, how can we keep costs to a minimum on award redemptions, and pay the lowest possible price on cash fares when all these ancillary charges can add around 30% to the cost of a ticket, expenses often not covered by award fares? By using credit cards that offer travel credits for expenses like airline incidentals, taxes, and upgrades!
Credit Cards That Offer an Airline or Travel Credit
It’s worth noting that not all travel credits are created equal. Some have a number of restrictions on what cardholders can claim and require cardholders to request the credit, whereas others cover almost any travel-related expense and will credit automatically. While we cover the basics for each card, reading the T&C's will give you a much greater understanding, possibly saving hundreds of dollars over the life of the card.
| Credit Card | Annual Credit | Eligible Purchases | Cover Airline Change/Cancellation Fees | Annual Fee |
|---|---|---|---|---|
| Chase Sapphire Reserve® | $300 travel credit | Almost any travel purchases | Yes | $550 |
| U.S. Bank Altitude™ Reserve Visa Infinite® Card | $325 travel credit | Airlines, hotels, car rental companies, taxis, limousines, passenger trains, and cruise lines | Yes | $400 |
| Citi Prestige® Card | $250 travel credit | Airlines, hotels, car rental agencies, travel agencies/travel aggregators/tour operators, commuter transportation, ferries, commuter railways, subways, taxis/limousines/car services, passenger railways, cruise lines, bridge and road tolls, parking lots/garages, and bus lines | Yes | $495 |
| HSBC Premier World Elite Mastercard® credit card | $100 air travel credit | Ticket purchases, seat upgrades, baggage fees or in-flight purchases | Yes | $395 |
| Crystal® Visa Infinite® Credit Card | $250 airline incidentals credit on U.S. domestic airlines only | Ticket change/cancellation fees, checked baggage fees, inflight entertainment, onboard food and beverage charges, airport lounge membership fees and day passes, onboard wireless charges (excluding Gogo Inflight Wi-Fi), and TSA Pre✓® membership application fee purchased from qualifying U.S. domestic airlines | Yes - U.S. domestic airlines only | $400 |
| The Ritz-Carlton Rewards® Credit Card | $300 airline incidentals credit (Isn't applied automatically - must call charges in) | Non-ticket airline purchases including baggage fees, in-flight entertainment, food, upgrades, and lounge passes and memberships | No | $450 |
| Hilton Honors American Express Aspire Card | $250 airline incidentals credit on one airline - chosen annually $250 Hilton Resort Statement Credit | Baggage fees, booking fees, in-flight food, and lounge admission Eligible purchases made directly with participating Hilton Resorts - Includes charges made at restaurants, spas, and other establishments within the hotel property if charged to your room and paid for with your card. | Yes - On chosen airline | $450 |
| The Platinum Card® from American Express | $200 airline incidentals credit on one airline - chosen annually | Baggage fees, booking fees, in-flight food, and lounge admission | Yes - On chosen airline | $550 - Rates & Fees |
| The Business Platinum Card® from American Express | $200 airline incidentals credit on one airline - chosen annually | Baggage fees, booking fees, in-flight food, and lounge admission | Yes - On chosen airline | $595 - Rates & Fees |
| PenFed Pathfinder Rewards American Express® Card | $100 airline incidentals credit on U.S. headquartered airlines | Baggage fees, flight-change fees, in-flight food and beverage purchases, airport lounge day-passes, pet-kennel fee, and phone reservation fees | Yes - U.S. headquartered airlines only | No annual fee |
| American Express® Gold Card | $100 airline incidentals credit on one airline - chosen annually | Baggage fees, booking fees, in-flight food, and lounge admission * Note: this credit is being removed as a benefit in 2022. | Yes - On chosen airline | $250 - Rates & Fees |
| Bank of America® Premium Rewards® Credit Card | $100 airline incidentals credit on U.S. domestic airlines only | Seating upgrades, ticket change/cancellation fees, checked baggage fees, in-flight entertainment, onboard food and beverage charges, and airport lounge fees | Yes - U.S. domestic airlines only | $95 |
| EXPEDIA®+ VOYAGER CARD from Citi | $100 airline incidentals credit on qualifying U.S. domestic airlines only | Checked bags, inflight entertainment or refreshments, inflight Wi-Fi, and Global Entry or TSA Pre✓® | No | $95 |
| Southwest Rapid Rewards® Priority Credit Card | $75 Southwest Airlines Annual Travel Credit | All Southwest purchases (excluding Upgraded Boardings and inflight purchases) | N/A - Southwest doesn't charge change/cancellation fees | $149 |
| U.S. Bank FlexPerks® Gold American Express® Card | $25 airline incidentals credit with each redeemed airline award | Baggage fees or in-flight food and drinks | No | $85 |
The last four cards we’ve grouped together. While they don’t offer travel or airline credits, they earn points that can be redeemed for statement credits towards travel expenses. Because it works as a statement credit, any payment that codes as travel from the merchant qualifies — just make sure you watch the minimum redemption thresholds for these of these cards.
- Capital One Venture Rewards Credit Card
- Capital One VentureOne Rewards Credit Card
- Bank of America® Travel Rewards credit card
- Barclaycard Arrival Plus® World Elite Mastercard® (no longer open to new applicants)
Final Thoughts
Airline and travel credits are a great way of reducing your out of pocket expense for traveling. Yes, most cards charge a hefty fee for the privilege, but they also offer a huge range of benefits for the annual fee which can include lounge access, elite status with hotel chains, and travel insurance that will drop your travel expenses over the long term.
Which travel credit is best? All things considered, the Chase Sapphire Reserve® has the most valuable travel credit. At $300 as opposed to $250 for the Prestige Card and $200 on the Amex Platinum, it also has the widest definition of claimable expenses, covering anything from a train ticket to road tolls, and online travel agencies.
For rates and fees of the cards mentioned in this post, please visit the following links: American Express® Gold Card (Rates & Fees), The Business Platinum Card® from American Express (Rates & Fees), and The Platinum Card® from American Express (Rates & Fees)
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
Bank of America Premium Rewards card: If my spouse gets this card, how could I use the $100 airline incidental statement credit? (He would not be traveling with me.)
Once upon a time, the Virgin America Visa was an amazing deal. If you bought your tickets on VA using it, you could make changes without penalties.
It looks like we are tracking to lose our frequent flyer status that gives us that privilege. Is there any credit card that does the same? It looks like Chase Sapphire Reserve gives you travel insurance (covering if you get sick). But, you can’t make changes without penalties freely.
Thanks!
Hey Gary, there are few programs that no longer charge a fee for changes on Awards, but the amount does vary. The best strategy would be to book with a FF program that has low cancel/change fees. https://awardwallet.com/blog/airline-award-ticket-change-and-cancellation-policies/
I wish AA would offer discounts to seniors!!!!
Sadly (or maybe happily), we’ve already claimed most of our 2019 credits!
Any recommendations on how I can use up the balance of my Amex Platinum credit (on united) without actually flying in the next couple of days. Have never been able to use up this credit as we are plat with united so most excess fees are already free to us. Any advice as I only have a couple days left to try!!
It’ll actually be very difficult as the charge needs to post by December 31st and it could take 2-3 days for the charge to post. You might look at FlyerTalk https://www.flyertalk.com/forum/american-express-membership-rewards/1812742-airline-fee-200-100-reimbursement-reports-ua-only.html, but again, you need to have charges post in 2016 for it to count.
PNC Bank Premier Rewards card can also be used. I got 300 $ to spend on getting the card
Citi prestige,this is the best.
Thanks for the info. I enjoyed using my Amex Platinum before, but now Chase Sapphire Reserve is the best deal IMO due to the ease of using the travel credit
Good to distinguish more between incidental and travel credit!
I would love it if the Amex Platinum’s incidental credit became a travel credit like the one on the CSR..
It definitely isn’t as easily redeemable as the one through the CSR, but you can still work through a few holes 🙂
details…details please??
I would check here: https://www.flyertalk.com/forum/american-express-membership-rewards/1812742-airline-fee-200-100-reimbursement-reports-ua-only.html
Just got the Chase Sapphire Reserve card in October and trying to figure out how to take advantage of the global entry benefit. I have Global Entry through Jan 2020 (thanks to the AMEX Plat). Would I still get reimbursed by Chase if I wait till Jan 2020 to renew or does it have to be within a fixed time of card opening?
You’ll want to wait until Jan 2019 to renew as you can renew 1 year prior to expiration (which is exactly what I did) … and yes, you’ll still receive the benefit. It isn’t tied to a certain time from when you open the card account.
So is it a one time credit, or does the benefit renew periodically. If its something that renews, I might consider getting my wife Global Entry in the mean time?
This is a recurring benefit that you can leverage every 4 years. 🙂
MileagePlusX app from United charges are eligible for the airline fee credit from AMEX.
There have been recent reports of this NOT working. Make sure it works before you commit to it.
Did not work for me 🙁
No longer works, but some DP the United gift registry is working. Also, airline GC should work.
Some co-branded credit cards will give you a credit in the form of a free checked bag for you and each of your companions. I also appreciate the group-1 boarding.
You might consider this if you are a not-that-frequent-flyer, but use one airline.
big fan of Chase Reserve. The $300 travel credit makes the effective annual fee $150 which is pretty good given that it includes 3 points per dollar on dining and travel and access to the ultimate rewards shopping portal. 4.5% back on travel and dining is great. I don’t fly that much, but the priority pass membership is nice too.
Agreed. Also, the credit for Pre-Check/Global Entry makes the effective cost even lower.
Does the business version of the Premier Rewards Gold Card from American Express offer the $100 airline incidental credit as well?
It does not.
Thank you. Still offering 50K sign up bonus is intriguing since I’ve used my life time exemption on the personal version 🙁
i like the cards that let you cailm twice in the first year of card membership,