Alaska Airlines is making big changes to its loyalty program.
For many travelers, the Mileage Plan serves as a supplemental savings account. Whether the accumulated miles are used for vacations or last-minute emergency travel, award availability is important.
On the other side, the chase to get the miles is a never-ending quest. Not just for the miles, either. Rather, for the exalted “elite qualifying miles” (EQMs) that earn travelers the coveted MVP status for bonus miles and first-class upgrades.
It’s all part of the gamification of travel. And what a game it is. Coupled with the Alaska Airlines Visa card (from Bank of America), the race to get those “free” trips and attain the highest tier is addicting.
The new changes in the program offer more ways to earn EQMs on Alaska’s flights, as well as partner airlines including Qantas, American, Japan Air Lines and British Airways.
Beginning in January, travelers will start earning EQMs for award flights they redeem with miles. If you spend 20,000 miles to fly one-way to Honolulu from Anchorage, you’ll also earn 2,780 miles when you fly on that ticket.
Or, if you fly to Rome on Jan. 15, 2025, via Seattle, Toronto and Dublin (via Alaska Air and Aer Lingus), the award ticket will cost you 55,000 miles and $27. It’s a long, convoluted route. But just think of the miles you’re earning: 7,930 EQM.
Many travelers struggled with the choice of burning their accrued miles versus paying for tickets to make progress toward their next MVP tier (MVP, Gold, 75K or 100K). This new change takes the sting out of this conflict.
To get the global reach that international travelers desire, Alaska Airlines partners with many different airlines. Most of Alaska’s partners are included in the oneworld Alliance, which was founded by American Airlines. Oneworld partners include many familiar airlines, including Finnair, Cathay Pacific and Iberia. But in addition to those partners, Alaska has earn-and-burn arrangements with other carriers, including Condor, Korean Air, LATAM Airlines, Starlux, Singapore Air and Air Tahiti Nui.
Another new airline in the earn-and-burn partner category: Hawaiian Airlines.
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The big change is that in 2025, all purchased tickets on partner airlines will yield at least 100% EQMs. There also are bonus miles awarded if you’re traveling in premium economy, business class or first class.
But there’s a twist.
To get the maximum credit, your partner airline tickets must be purchased at alaskaair.com. If you book anywhere else, such as the partner airline’s site, Expedia, Priceline or a travel agent, you may earn fewer miles.
For example, if you’re flying on Qatar Air, Royal Air Maroc or American Airlines and you book on that airline’s website, you’ll earn 50% EQM in economy and 25% in “discount economy.” The difference between economy and discount economy does not mean you’ll get a different type of seat. Rather, it’s the price of the ticket and “class of service.”
When it comes to booking your award tickets, all of them must be booked at alaskaair.com.
It’s hard to overstate how important the Mileage Plan is to Alaska Airlines and its financial health.
In the second quarter of 2024, Bank of America paid Alaska Airlines $430 million. This is due to the partnership between the airline and the bank regarding the Alaska Airlines Visa card. By comparison, Alaska Air reported a profit of $220 million in the same period.
Simply put, without loyalty plans, most airlines would not be profitable. That includes Alaska Airlines.
In fact, Alaska Air’s Mileage Plan stands out as a shining star in the overall Alaska Air Group portfolio. Recently, Alaska proposed to mortgage its Mileage Plan for up to $1.5 billion. Alaska Air Group created a new entity to do the loan based in the Cayman Islands called “AS Mileage Plan IP Ltd.”
The new loan, backed by the Mileage Plan’s continued performance, will enable Alaska Airlines to more easily absorb the $900 million in debt it assumed in the deal with Hawaiian Airlines.
“Alaska intends to use the proceeds from the Intercompany Loan to redeem certain outstanding debt acquired or assumed in the merger of the Company with Hawaiian Airlines,” the company stated in a news release last month.
Alaska Airlines now needs to super-charge Mileage Plan revenue, including spending on the Alaska Airlines Visa Card.
For 2024, Alaska Airlines introduced a plan to earn EQMs just by charging on your credit card. For every $10,000 charged, cardholders received 4,000 EQMs. (Up to a maximum of 20,000 EQMs. No special registration is required).
According to Alison Carpenter, Alaska Airlines’ director of loyalty, the spending-for-miles plan will be a little simpler for 2025: “The new formula is one mile for every $3 spent, up to a maximum of 30,000 miles,” she said.
These bonus EQMs are in addition to the ongoing mile-for-dollar plan in place for the Alaska Airlines Visa.
Travelers still have questions regarding Hawaiian Airlines and how the carrier fits in with Alaska’s Mileage Plan.
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Currently, Hawaiian still has its own Hawaiian Miles program, along with its own co-branded MasterCard from Barclays Bank.
All elite-level Alaska Airlines travelers will automatically receive the equivalent elite tier on Hawaiian when they fly, whether it’s inter-island between Honolulu and Kona, or internationally between Honolulu and Australia or New Zealand.
Just to be sure, I signed up as a Hawaiian Miles member. Some friends went ahead and got the Hawaiian Mastercard to get the 70,000 bonus miles. There’s a $99 annual fee and travelers must charge at least $2,000 within the first 90 days.
All Hawaiian Air miles can be transferred 1:1 to your Alaska Airlines account.
To get the next generation of Mileage Plan members engaged in the game, Alaska Air has added several “milestones” from 10,000 miles. For example, when a traveler hits 10,000 EQM, they can choose from 750 bonus miles, a free meal, free Wi-Fi, or the ability to try MVP for one trip. Milestones are progressively more generous at 30,000, 55,000, 85,000 and 150,000 EQMs.
The tier levels remain the same: 20,000 EQM for MVP (oneworld Ruby), 40,000 for MVP Gold (oneworld Sapphire) and 75,000 for MVP Gold 75K (oneworld Emerald).
Carpenter indicated there will be more changes going forward, particularly regarding exclusive experiences or special events.
“This is the first round,” she said. “We’re still trying to figure out other ways to earn miles besides flying and spending with credit cards.”
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Publish date : 2024-10-17 13:00:00
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