U.S. Bancorp is increasing the perks on its travel-rewards card — and taking a subtle swipe at a former airline partner along the way.
The Minneapolis company said Thursday that it will allow its FlexPerks Travel Rewards Visa Signature cardholders an additional $5 toward airline "nuisance" fees when they redeem FlexPerks points for plane tickets. U.S. Bancorp's FlexPerks cardholders traveling on rewards tickets will receive $25 to use toward baggage fees, in-flight food or beverages or other airline travel fees.
U.S. Bancorp said it was increasing the allowance "in response to recent announcements that some airlines are raising baggage fees again."
Last week Delta Air Lines Inc. — which bought U.S. Bancorp's longtime cobrand partner, Northwest Airlines Corp., in 2008 — became the first airline to raise fees for checked bags, to $23 and $32, for the first and second bags.
U.S. Bancorp developed its FlexPerks card, which it unveiled last year, to replace its lucrative cobrand contract with Northwest — and to compete with American Express Co.'s Delta SkyMiles card.