By Theo Burman

Copyright newsweek

American Express is raising the annual fee on its flagship Platinum card to $895 while rolling out new perks aimed at high-end consumers willing to offset the increase with premium benefits.The $200 fee hike, up from $695, comes with a boost in total benefits to an estimated $3,500 annually.Why It MattersAmerican Express is escalating the competition in the luxury credit card space, where issuers are targeting big spenders with increasingly elaborate benefits. The move comes as rivals JPMorgan Chase and Citigroup are also launching enhanced premium card offerings, including JPMorgan’s recent updates to the Sapphire Reserve card.By increasing the fee to $895, nearly 30 percent higher than before, American Express is betting that the expanded benefits package will keep cardholders engaged despite economic uncertainty and rising interest rates.What To KnowThe $3,500 in perks available to cardholders now includes enhanced credits across categories like travel, dining, fitness, and technology.Business Platinum cardholders will also receive new hotel benefits and credits for purchases made at Dell and Adobe.Much of that value is accessible through a suite of new spending credits aimed at cardholders who frequently dine out, travel, or invest in wellness.Stock Image: Photographer Holding his American Express Card.Among the added perks are $400 in dining credits at Resy-partnered restaurants, a $300 annual credit for purchases at Lululemon, and $200 toward Oura smart rings.This marks the most significant refresh of the Platinum card since 2021 and signals Amex’s confidence that affluent consumers will continue to demand premium rewards in exchange for higher fees.The changes take effect for existing cardholders starting January 2, 2026.Earlier this year, American Express announced it would make its “largest investment ever” in refreshing its Platinum credit cards for U.S. consumer and business customers.American Express said it would expand its global lounge network by opening new Centurion Lounges in Newark, Tokyo and Salt Lake City, increasing the total to 32 worldwide.The company is also securing new brand partnerships to enhance lifestyle and travel benefits for Platinum cardholders, including at restaurants, wineries, venues and hotels.What People Are SayingHoward Grosfield, the group president of U.S. Consumer Services at American Express, said in a statement seen by Newsweek: “There is really nothing like Platinum Membership — we offer more value than ever, and with the scale of our lounge, dining and hotel programs, we make it easy for our Card Members to access this value.“Platinum delivers unmatched benefits, unforgettable experiences, and world-class service — powered by our award-winning digital capabilities.”What’s NextAmerican Express plans to continue investing in app functionality to streamline the redemption of credits and benefits.The Platinum card’s performance following the refresh will likely be closely watched by industry analysts, especially as competitors continue to roll out comparable offerings in the premium space.