Here's why Alaska Airlines miles are the most valuable

March 03, 2020

•

8 min read

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Update: Some offers mentioned below are no longer available. View the current offers here.

I'm a big believer in the adage "if it ain't broke, don't fix it," which is why I was excited but admittedly a bit nervous as well when one of the biggest pieces of aviation news this year broke: By the middle of next year, Alaska Airlines will join the Oneworld alliance.

For years Alaska has thrived without the benefits of an alliance membership, leaning on individual airline partnerships to build its Mileage Plan loyalty program into one of the most valuable on the market. When TPG releases its latest set of points and miles valuations each month, Mileage Plan miles rank near the top. For a long time now, they've held the title of the most valuable individual airline miles, clocking in at 1.8 cents a piece (just a hair below transferable points currencies like Chase Ultimate Rewards and American Express Membership Rewards at 2 cents each).

Of course, TPG's valuations are meant to be a starting point and certainly don't represent an upper limit on what you can achieve with your hard-earned miles. On multiple occasions throughout the years, and as recently as last week, I've been able to redeem my Mileage Plan miles at a rate of 20 cents each or higher. Today we're going to take a look at the program features and generous partner award charts that have earned Mileage Plan such a solid reputation.

For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.

Mileage Plan overview

If you aren't familiar with Mileage Plan yet, you should start by reading our comprehensive guide to maximizing redemptions with the Mileage Plan program. Here are a few of the highlights:

Alaska partners with some of the best international airlines in the world, including Cathay Pacific and Japan Airlines. This is why Alaska can be a top-choice program, even if (like me) you've never flown on an Alaska-operated flight before.
Each partner has a separate award chart, and you can only redeem Alaska miles for partner flights listed in the chart (not all routes are eligible).
Stopovers are allowed on one-way tickets, and while there a few minor restrictions to be aware of, in most cases you can book these yourself online without calling in.
Dirt-cheap premium-cabin awards, especially to Asia. This right here is Alaska's secret sauce

But just how good are these prices? Let's dive in and take a look.

First-class flights at business-class prices

Let's start with one of the most aspirational redemptions you can make with your Alaska Airlines Mileage Plan miles: flying Cathay Pacific first class between the U.S. and Asia. While now may not be the time to plan a trip to the continent due to the COVID-19 (coronavirus) outbreak, knowing the cheapest ways to get there can save you a ton of points and miles down the line.

Alaska Airlines allows you to build in a free stopover in Hong Kong before continuing on to another destination in Asia, all for the same price of 70,000 miles, but to keep things simple let's just focus on a one-way flight from New York-JFK to Hong Kong (HKG).

Not only is Cathay Pacific one of the best airlines in the world, but it also has the ticket prices to match. One-way first-class seats on this route routinely price out at just over $20,000, making this one of the world's most expensive plane tickets.

With Alaska charging you 70,000 miles for this flight (and a negligible amount of taxes, under $100), you'd end up with a redemption value of about 29 cents per mile. To get that number, we take the cost of the ticket and divide it by the number of miles being redeemed, or $20,000 ÷ 70,000 = $0.285.

Normally when you reach a valuation this extreme it stops being all that relevant, but it is useful to compare to other programs to see just how good of a deal you're getting. Alaska offers the best price out there on this Cathay Pacific award, but you could book the same ticket through American Airlines AAdvantage, Cathay Pacific's own Asia Miles program, or British Airways Executive Club (though I certainly wouldn't recommend the last one). Here's how these other programs stack up:

Frequent flyer program	Cost in miles to fly JFK-HKG in first class	Redemption value (cents per mile)
Alaska Airlines Mileage Plan	70,000 miles	28.57
American Airlines AAdvantage	110,000 miles	18.18
Cathay Pacific Asia Miles	125,000 miles	16
British Airways Executive Club	200,000 Avios	10

Now there's a strong part of me saying that Cathay Pacific first class is such an incredible experience that you should fly it any way you can, even if your only option is to redeem a whopping 200,000 British Airways Avios. But this chart makes it clear that Alaska offers the best redemption value out there, and by quite a wide margin at that.

Even though Cathay Pacific first class is the best deal Alaska has in its repertoire, you'll find that this same comparison holds true for other airlines and routes as well. JAL first and business class are a great example; though they're slightly pricier than Cathay Pacific on most routes they still represent an excellent redemption value. Same goes for Qantas flights between the U.S. and Australia, which are an unbelievable steal at only 70,000 miles each way in first class if you can find award space.

Alaska's biggest weak spot: Miles are hard to earn

Creating value is all about balancing supply and demand. While Mileage Plan miles are undeniably some of the most valuable out there, they're also among the hardest to earn. Hopefully that will change once Alaska formally joins the Oneworld alliance, but for now you have three main options for topping off your Mileage Plan balance in order to take advantage of one of these deals:

Apply for the Alaska Airlines Visa Signature® credit card or the Alaska Airlines Visa® Business card, which both currently offer a welcome bonus of 60,000 bonus miles plus Alaska's Famous Companion Fare from $121 ($99 fare plus taxes and fees from just $22) with this offer. To qualify, make purchases of $3,000 or more within the first 90 days of opening your account.
Transfer points from Marriott Bonvoy at a 3:1 ratio, with a 5,000-mile bonus for every 60,000 points transferred.
Buy miles on sale. Alaska frequently runs bonuses and discounts on purchased miles, and while I wouldn't recommend buying them speculatively, if you've already found the award space you need this can still represent a solid value.

Bottom line

Even though it only flies within North America and to Hawaii, Alaska Airlines offers you one of the best ways to book long-haul first- and business-class flights for the fewest number of miles. Mileage Plan miles can be quite hard to earn, and many people pass them over if they don't personally fly Alaska. But between an elevated bonus on the Alaska Airlines Visa Signature® credit card and some of the most generous partner award charts out there, this program is worth paying attention to.

Updated on 4/27/22.

Featured image by Alberto Riva

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.