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How Alaska, Hawaiian Airlines Are Changing Loyalty Program
How Alaska, Hawaiian Airlines Are Changing Loyalty Program

Newsweek

timea day ago

  • Business
  • Newsweek

How Alaska, Hawaiian Airlines Are Changing Loyalty Program

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Alaska Airlines and Hawaiian Airlines have launched a joint loyalty program called Atmos Rewards and introduced a new premium co-branded credit card, the Atmos Rewards Summit Visa Infinite, as part of a broader repositioning to serve more global and premium travelers. The move combined Alaska's Mileage Plan with Hawaiian Airlines' HawaiianMiles into Atmos Rewards and added a $395 annual-fee Visa Infinite card aimed at high-spend travelers, signaling a strategic shift toward premium revenue streams that many carriers rely on to boost profits. Newsweek reached out to Alaska Airlines and Hawaiian Airlines via email for comment. Why It Matters Airlines have leaned more heavily on loyalty programs and co-branded credit cards because those products can produce larger profit margins than ticket sales alone, an industry dynamic summarized in recent trade reporting and coverage of the Atmos launch. The new program offers flexible earning methods, letting members choose to earn by distance flown, by price paid, or by number of segments flown, a departure from many U.S. carriers' traditional mileage-based systems. What To Know Alaska Air Group has combined Alaska's Mileage Plan and Hawaiian's HawaiianMiles into Atmos Rewards, with full account transitions for members scheduled for October. The Atmos Rewards Summit Visa Infinite card carries a $395 annual fee and offers benefits including lounge access, a global companion award, lounge passes, a $50 instant delay credit for qualifying delays, free checked-bag benefits, and priority boarding, according to the airline. An Alaska Airlines jet taxis at San Francisco International Airport on June 4, 2025. An Alaska Airlines jet taxis at San Francisco International Airport on June 4, 2025. Getty Images Members can choose how they accrue status and points: one point per mile (distance), five points per $1 spent on flights (price), or 500 points per flight segment (segments), with the option to change that preference once per year. The airlines confirmed that Hawaiian Airlines would join the oneworld alliance in 2026, expanding partner access for Atmos members. Alaska and Hawaiian said members would see account transitions without loss of benefits, with Hawaiian's Pualani Elite mapping to Atmos tiers and additional milestone perks. What People Are Saying Andrew Harrison, chief commercial officer at Alaska Airlines, said in a statement: "Atmos Rewards is more than a loyalty program – it's a reflection of how guests travel today. We listened to what our members value most and built a program that's grounded in generosity, personalization and practicality. "We're putting our members in the pilot's seat, giving them control over how they earn and redeem, while honoring the legacy and values of both Alaska and Hawaiian." What Happens Next Atmos Rewards membership transitions are scheduled to continue through October 1, 2025, for HawaiianMiles members, while Alaska Mileage Plan members were automatically enrolled.

Alaska Airlines is rolling out Elon Musk's Starlink to all its planes and letting customers choose how to earn loyalty points
Alaska Airlines is rolling out Elon Musk's Starlink to all its planes and letting customers choose how to earn loyalty points

Business Insider

time2 days ago

  • Business
  • Business Insider

Alaska Airlines is rolling out Elon Musk's Starlink to all its planes and letting customers choose how to earn loyalty points

Alaska Airlines is bringing Elon Musk's Starlink internet to all its planes as part of a loyalty-program overhaul after merging with Hawaiian Airlines. The airline announced Wednesday that the high-speed, streaming-quality WiFi will be free for all members of its Atmos Rewards program. It comes after Hawaiian became the world's first major airline to deploy the service last February. Alaska Airlines expects to begin installing Starlink next year and have it fully installed across its fleet in 2027. "The idea of a game changer is a word I don't particularly subscribe to, but Starlink, for a business traveler, fundamentally changes your productivity and what you can get done," Brett Catlin, Alaska's vice president for loyalty, told Business Insider. "It can't get on our fleet soon enough," he added. Alaska also announced that loyalty members will be able to choose how to earn points: per mile flown, per dollar spent, or per flight segment. "We were very deliberate in how we designed the program to make sure that we brought everyone in, that it was this idea of a big tent," Catlin told Business Insider. He explained how customers flying on short-haul trips like Honolulu to Maui could benefit from choosing to earn via flight segment, with each worth 500 points. Meanwhile, high-spending business travelers would likely prefer to earn per dollar. Loyalty members would be able to change their preferences once a year. "It's technically more complicated to introduce, of course, but we were very deliberate in deciding we're going to make that investment because it's important to how we compete," Catlin said. A new co-branded credit card with Bank of America, called Atmos Rewards Summit Visa Infinite, would let holders reach status faster, earning one status point for every $2 spent on purchases. The airline also said that Atmos Titanium members, the top tier worth 100,000 status points, could be offered complimentary business-class upgrades for themselves and a companion on the day of departure. The Seattle-based carrier is opening its first-ever transatlantic routes and doubling down on its loyalty scheme, which is crucial to US airlines' profitability. "Loyalty, particularly for a US carrier, is integral to everything that we do — both the program, but then also the co-brand portfolio," Catlin said. Through the first half of the year, Alaska Airlines turned a profit of $6 million, while its loyalty program generated revenue of $417 million. Since acquiring Hawaiian Airlines, it has taken ownership of four Boeing 787 Dreamliners, opening up longer journeys. Alaska's Dreamliners will first fly from Seattle to Seoul on September 12. Flights to Tokyo begin on January 7, followed by flights to Rome and London in the spring.

Alaska Airlines launches $395 credit card in premium travel race, combines loyalty program with Hawaiian
Alaska Airlines launches $395 credit card in premium travel race, combines loyalty program with Hawaiian

CNBC

time2 days ago

  • Business
  • CNBC

Alaska Airlines launches $395 credit card in premium travel race, combines loyalty program with Hawaiian

Alaska Airlines is getting into the industry's race for high-end credit cards and creating a combined frequent flyer program, called Atmos, with Hawaiian Airlines, which it acquired last year. The $395-a-year Atmos Rewards Summit Visa Infinite card, co-branded with Bank of America, is the carrier's first premium credit card and includes perks like airport lounge passes, instant $50 vouchers for delays and discounted global companion fares. Under the new Atmos program, travelers will have a choice in how they earn points: Elite frequent flyer tiers are also changing, and Alaska will require travelers to earn more points to reach top levels. Rival airlines have also made those types of changes routinely. For the Atmos Platinum loyalty tier, customers will need to earn 80,000 points next year, and 135,000 for the Atmos Titanium tier, up from 75,000 and 100,000, respectively, in 2025. Alaska's chief commercial officer, Andrew Harrison, told CNBC that miles aren't being devalued for flight redemptions, however. There are also silver and gold tiers in the Atmos program, with all levels including upgrades, when available, to free premium class seats on Alaska and one of the carrier's partners, American Airlines. Although the frequent flyer program will be combined, Alaska plans to keep its brand operating separately from Hawaiian. It is, however, planning to launch a host of international routes on wide-body aircraft from its home base in Seattle. Alaska and its competitors have invested heavily in chasing higher-spending customers and creating sticky business with loyalty hurdles customers have to clear to get to perks on the other side. Even budget airlines like Spirit Airlines and Frontier Airlines have turned to more upmarket strategies to try to return to profitability. Airlines "with the premium cabins, with premium experiences, there is good solid demand there that has not materially changed and is actually getting better," Harrison told CNBC. Alaska is also trying to keep benefits and lounges feeling exclusive to avoid an industry problem with overcrowding. The top Atmos Rewards Summit Visa Infinite card comes with eight lounge passes a year, valid for the whole travel day. "These are your most loyal and frequent travelers. The worst thing you can do to them is invite them into lounges and have lines out front saying you can't get in and have to wait," Harrison said. Alaska is building a new lounge at its base at Seattle-Tacoma International Airport dedicated to international long-haul flyers and planning on one at San Diego International Airport. JetBlue Airways launched a premium credit card with Barclays US Consumer Bank earlier this year, with an annual fee of $499. Other airlines have also raised fees and added perks and points bonuses to attract more sign-ups and cardholders. "Our new premium credit card is on track to double full-year projections for acquisitions, highlighting the tremendous amount of demand by customers for our premium products," JetBlue CEO Joanna Geraghty said on an earnings call last month. Alaska also said it plans to offer Starlink Wi-Fi throughout its fleet, a service that will be complimentary for loyalty program members. Hawaiian Airlines first inked a deal for the service from Elon Musk's SpaceX service in 2022.

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