Airline Credit Cards Updated Comparison: low annual-fee versions

Now that we’ve gone through the free airline cards again, it’s time for the mid-level cards, those with an annual fee of around $100.  Like last time, I’m going to ignore one American Airlines card, which is the Aviator Blue card. This card has a reduced $49 annual fee, and so doesn’t quite match these other ones. However, Barclays also offers the Aviator Red card, which has a $99 annual fee and so is comparable to the others in this article.

This article will, therefore, cover four credit cards: the American Airlines AAdvantage Aviator Red MasterCard, the American Airlines Platinum Select credit card, the Delta SkyMiles Gold card, and the United Explorer card. I must note that the Delta Gold card has recently been revamped and now has a $150 annual fee, which is 50% higher than the other cards being reviewed here. The annual fee will be used as a tie-break if necessary.

I provide the information here just to give readers a vague idea if the rewards offered by the card might make sense for them to consider the card.  All information should be confirmed with the card company before applying.

Welcome Offers

These credit cards all have decent welcome offers.  American’s Platinum Select card offers 50 000 miles after spending $2 500 in the first 3 months and a waived first year annual fee (worth $99).  American’s Aviator Red card offers 50 000 miles after making your first purchase, but the first year annual fee is not waived.  Delta’s Gold card offers 40 000 miles after spending $2 000 in 6 months and a waived first year annual fee (worth $150).  United’s card offers 50 000 miles after spending $3 000 in 3 months and a waived first year annual fee (worth $95).

The winner here is American’s Platinum Select card, whose welcome offer is worth about $650 (5 points). Next is United’s Explorer card with a value of $550 (4 points), closely followed by American’s Aviator Red card, which offers $650 worth of points, but you have to pay the $99 annual fee to get them, which is annoying (3 points). Finally, Delta’s Gold card comes in last, with only $440 worth of points (2 points).

Points earnings

For all these cards, the best multiplier is offered on direct airline purchases.  American’s Platinum Select card offers 2x miles on American, dining, and gas.  American’s Aviator Red card only offers 2x miles on American purchases.  The Delta Gold card offers 2x miles on Delta, dining, and US supermarkets.  United’s Explorer card offers 2x miles on United, dining, and hotel stays.  All cards offer 1 mile/$ on everything else.

The loser here is definitely the Aviator Red card, which only has one bonus category (1 point).  All the other cards offer double miles on dining.  It therefore comes down to gas vs US supermarkets vs hotel stays for the best bonus category for you, so I’ll just go ahead and give each of these cards 5 points, since I’d say they all tie here. Not that any of these earn rates is particularly good.

Elite earnings

The Aviator Red and Platinum Select cards have the same earnings of 1 loyalty point per $1 spent.  The Delta Gold card does not offer MQD earning as a perk.  The United Explorer card offers 25 PQP per $500 spent on the card (up to a maximum of 3 000 PQP). This means that 3 000 PQP for $60k gets you 3/4 of the way to United Silver Status (12 PQF + 4 000 PQP). 

The winners are the American cards: $60k spend gets you entry-level American Gold status and 80% of the way to mid-level Platinum Status (5 points).  United’s offering is relatively weak by comparison (2 points).  The loser here is the Delta card (0 points).

Benefits

The American Platinum Select card offers a 25% savings on inflight food and beverage on American, preferred boarding (group 5) and a first checked bag free (for you + 4 others).  You can also earn a $125 flight discount after spending $20k in a year.

The American Aviator Red card offers a 25% savings on inflight food and beverage on American, $25 back on in-flight WiFi each year, preferred boarding (group 5) and a first checked bag free (for you + 4 others).  The card also offers a Companion Certificate (buy one, get one for $99) after spending $20k in a year.

The Delta Gold card was recently revamped. It still offers 20% back on inflight food/beverages on Delta. Its flight credit has been enhanced to a $200 flight credit after spending $10k in a year, and it now offers a $100 Delta stays credit, which can be used towards hotel stays booked through Delta. In addition, holding the card gives you 15% off award tickets on Delta flights, which is pretty good.

The United card offers 25% back on United inflight food/beverages and on ‘premium’ (alcoholic) drinks in the United Club, priority boarding (for you and companions), and a free checked bag (for you and one companion).  The card also offers a $100 statement credit for Global Entry/TSA Precheck/NEXUS every 4 years. 

Although the Delta Gold card has the weakest in-flight discount, it has the strongest other perks by far (5 points).  The United card has a better in-flight discount but really doesn’t have much in the way of spend-based benefits (1 point).  The American cards sit in the middle (2 points each).

How to use the points

The main use for earning airlines points is to redeem them for flights on the respective airline.  In general, American has the best redemption opportunities because they still use an award chart, rather than dynamic pricing, for redemptions on partners.  United is generally the next best because of its Star Alliance partners, but United has really been devaluing its miles recently and has lost a big step.  Delta’s miles are generally worth the least, but this card does offer a 15% discount on award tickets, which helps improve the points’ value.

In terms of redeeming the miles, American comes first (5 points), United and Delta tie for second (3 points).

Which of these cards is/are right for you?

These cards are all pretty good for someone who travels on one of these airlines a couple times per year but does not have status and flies in the main cabin.  I think in general these cards are sufficiently better than the free cards to be worth considering, especially because every airline offers a card with a waived annual fee the first year.  That means you can try out the cards for free and then downgrade if you’re not getting enough value out of them. 

The real stand out here is the American Platinum Select card with a score of 22/25. The rest basically tie for second place. If you’re not interested in earning status with the cards, then the cards are much closer in rankings, with the Delta Gold card being a close second to the American card, assuming you’re ok with the higher annual fee.

However, I think any of these cards can make sense if you want the perks associated with these cards. In terms of earning miles, however, Delta and United miles can be earned more efficiently from other Amex or Chase cards, respectively.