Alaska Airlines launches $395 card, combines loyalty with Hawaiian

Alaska Airlines is entering into the business’s race for high-end bank cards and making a mixed frequent flyer program, referred to as Atmos Rewards, with Hawaiian Airlines, which it acquired final yr.

The $395-a-year Atmos Rewards Summit Visa Infinite card, co-branded with Bank of America, is the service’s first premium bank card and consists of perks like airport lounge passes, immediate $50 vouchers for delays and discounted world companion fares.

Under the brand new Atmos program, vacationers can have a selection in how they earn factors:

1. By distance: Customers will earn one level for every mile they fly, which Alaska mentioned is best for vacationers who typically fly internationally or cross-country.
2. By value: Travelers will earn 5 factors for each $1 they spend on a flight, which the service mentioned is geared towards those that typically fly in premium cabins like top quality.
3. By flights: Customers 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 kinds of adjustments routinely.

For the Atmos Platinum loyalty tier, prospects 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, informed 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 out there, to free premium-class seats on Alaska and one of many service’s companions, American Airlines.

Although the frequent flyer program might be mixed, Alaska plans to maintain its model working individually from Hawaiian. It is, nevertheless, planning to launch a bunch of worldwide routes on wide-body plane from its residence base in Seattle.

Alaska and its opponents have invested closely in chasing higher-spending prospects and creating sticky enterprise with loyalty hurdles prospects must clear to get to perks on the opposite facet. Even funds airways like Spirit Airlines and Frontier Airlines have turned to extra upmarket methods to attempt 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 informed CNBC.

Alaska is also trying to keep benefits and lounges feeling exclusive to avoid an industry problem with overcrowding.

The 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 vacationers. The worst factor you are able to do to them is invite them into lounges and have traces out entrance saying you’ll be able to’t get in and have to attend,” 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 bank card is on observe to double full-year projections for acquisitions, highlighting the large quantity of demand by prospects for our premium merchandise,” 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 signed a deal for the service from Elon Musk’s SpaceX service in 2022.