An Alaska Airways Boeing 737 MAX 9 departs Los Angeles Worldwide Airport en path to Puerto Vallarta on Sept. 19, 2024.
Kevin Carter | Getty Photographs
Alaska Airways is moving into the trade’s race for high-end bank cards and making a mixed frequent flyer program, known as Atmos, with Hawaiian Airways, which it acquired final yr.
The $395-a-year Atmos Rewards Summit Visa Infinite card, co-branded with Financial institution of America, is the service’s first premium bank card and consists of perks like airport lounge passes, prompt $50 vouchers for delays and discounted international companion fares.
Underneath the brand new Atmos program, vacationers could have a selection in how they earn factors:
- By distance: Prospects will earn one level for every mile they fly, which Alaska mentioned is healthier for vacationers who usually fly internationally or cross-country.
- By value: Vacationers will earn 5 factors for each $1 they spend on a flight, which the service mentioned is geared towards those that usually fly in premium cabins like top quality.
- By flights: Prospects will earn 500 factors for every phase they fly, which is aimed toward flyers who take lots of short-haul journeys, like these inside Hawaii or California.
Elite frequent flyer tiers are additionally altering, and Alaska would require vacationers to earn extra factors to succeed in high ranges. Rival airways have additionally made these sorts of modifications routinely.
For the Atmos Platinum loyalty tier, clients might want to earn 80,000 factors subsequent yr, and 135,000 for the Atmos Titanium tier, up from 75,000 and 100,000, respectively, in 2025. Alaska’s chief business officer, Andrew Harrison, advised CNBC that miles aren’t being devalued for flight redemptions, nevertheless. There are additionally silver and gold tiers within the Atmos program, with all ranges together with upgrades, when accessible, to free premium class seats on Alaska and one of many service’s companions, American Airways.
Though the frequent flyer program will probably be mixed, Alaska plans to maintain its model working individually from Hawaiian. It’s, nevertheless, planning to launch a number of worldwide routes on wide-body plane from its dwelling base in Seattle.
Alaska and its rivals have invested closely in chasing higher-spending clients and creating sticky enterprise with loyalty hurdles clients should clear to get to perks on the opposite aspect. Even funds airways like Spirit Airways and Frontier Airways have turned to extra upmarket methods to attempt to return to profitability.
Airways “with the premium cabins, with premium experiences, there’s good strong demand there that has not materially modified and is definitely getting higher,” Harrison advised CNBC.
The worst factor you are able to do to them is invite them into lounges and have strains out entrance saying you’ll be able to’t get in and have to attend.”
Andrew Harrison
Alaska Airways Chief Business Officer
Alaska can be attempting to maintain advantages and lounges feeling unique to keep away from an trade drawback with overcrowding.
The highest Atmos Rewards Summit Visa Infinite card comes with eight lounge passes a yr, legitimate for the entire journey day.
“These are your most loyal and frequent vacationers. The worst factor you are able to do to them is invite them into lounges and have strains out entrance saying you’ll be able to’t get in and have to attend,” Harrison mentioned.
Alaska is constructing a brand new lounge at its base at Seattle-Tacoma Worldwide Airport devoted to worldwide long-haul flyers and planning on one at San Diego Worldwide Airport.
JetBlue Airways launched a premium bank card with Barclays US Client Financial institution earlier this yr, with an annual charge of $499. Different airways have additionally raised charges and added perks and factors bonuses to draw extra sign-ups and cardholders.
“Our new premium bank card is on monitor to double full-year projections for acquisitions, highlighting the large quantity of demand by clients for our premium merchandise,” JetBlue CEO Joanna Geraghty mentioned on an earnings name final month.
Alaska additionally mentioned it plans to supply Starlink Wi-Fi all through its fleet, a service that will probably be complimentary for loyalty program members. Hawaiian Airways first inked a deal for the service from Elon Musk’s SpaceX service in 2022.
