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News
Alaska Airlines credit cards get additional perks, new restrictions — and a higher annual fee
Clint Henderson is a managing editor at TPG who has worked in the journalism industry for more than 25 years. He is obsessed with travel and has used points and miles to explore the world.
January 9, 2023 • 7 min read
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Quick summary
Alaska Airlines is updating its co-branded card benefits, including increased annual fees and new earning categories for both personal and business versions.
The Companion Fare benefit remains, but new personal cardholders must meet a $6,000 spending requirement annually to qualify, while business cardholders are not subject to this requirement.
Priority boarding and free checked bag perks now extend to authorized users, but only when the card is used to purchase tickets.
Discounted lounge day passes are being removed, replaced by a discount on annual lounge membership.
What to consider
Existing personal cardholders are exempt from the new Companion Fare spending requirement, but higher annual fees apply after February 28.
Authorized user perks and priority boarding require booking with the co-branded card; this may affect travelers who prefer using other payment methods.
A 10% rebate on miles earned is available for those with eligible bank accounts, and business cardholders need a qualifying business account for this bonus.
What you'll miss from the article
A detailed comparison of the new and old benefits, plus insights into how these changes fit into broader trends affecting Alaska Airlines loyalty members.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
There has been a lot of negative news from Alaska Airlines lately, and we got confirmation that there are big changes coming for holders of the Alaska Airlines Visa® credit card and the Alaska Airlines Visa® Business card.
While a feared devaluation of the companion pass has not happened, some of the changes may still irritate some readers — though the positive ones are effective as of Jan. 5.
In a statement, Alaska told TPG, "Our existing cardholders, both consumer and business, have started receiving communications about enhancements to our credit card. A formal launch for new cardholders will happen in the coming weeks."
Alaska Airlines’ Mileage Plan is one of TPG’s favorite airline loyalty programs. Unfortunately, there’s been a steady drip, drip, drip of negative developments over the last couple of years.
Changes to the personal Alaska card
Let's start with some good news: The Alaska Companion Fare benefit is still available on each account anniversary. However, to earn it, new cardholders need to spend $6,000 or more on purchases during the preceding year. (Our understanding is that this spend requirement does not apply to existing cardholders.) This benefit allows you to book a companion's flight from $122 ($99 fare plus taxes and fees from $23), as part of the welcome offer and each year when you renew the card.
But here's what else is changing.
For starters, the annual fee will be increased from $75 to $95 on the personal card. It's unclear when this will happen for new cardholders (the online application page still lists $75 at the time of writing), but for existing customers, this higher fee will hit on your next account renewal after Feb. 28.
In addition, Alaska is getting rid of the ability to purchase discounted Alaska Lounge day passes — a perk I've used several times. Instead, you'll get $100 off an annual Alaska Lounge+ membership.
Finally, starting March 1, you'll need to use your Alaska card to book your trip if you want to take advantage of the free checked bag perks.
Notification of changes to Alaska Airlines credit card perks. ALASKA AIRLINES
However, it's not all bad news, as Bank of America and Alaska have added some perks to the card that may justify the higher annual fee.
As of Jan. 5, you now earn 2 miles for every dollar spent on gas, local transit and ride-sharing, cable and some streaming services.
Cardholders will also now get priority boarding, which will likely be similar to Group 4 or 5 boarding on American Airlines for its cobranded credit cardholders. You will board after first class, veterans, folks who need extra time, Oneworld and Alaska elite members and those in the premium cabin.
Speaking of which, both priority boarding and the free checked bag benefit now apply to authorized users as well — even when traveling without the primary cardholder. Since there's no additional fee for adding authorized users to the card, this could be a way for your spouse, partner or another family member to enjoy some perks on an upcoming Alaska flight.
However, priority boarding for the primary cardholder plus the new perks for authorized users only apply when you use the Alaska Visa to pay for your ticket. Some folks who don't like to put airline purchases on their Alaska card for this perk will be annoyed with this change.
Note that the business card changes are very similar to the personal card changes. The annual fee will increase from $50 to $70 plus $25 for each cardholder on the business account.
Notice of changes to the Alaska Airlines Visa Business Card. ALASKA
The business card also gets 2 miles for every dollar spent on gas and local transit (including rideshare) but not cable or streaming services. The business card does get 2 miles for every dollar spent on shipping, which is not the case for the personal version. Note that some of the benefits on the business card don't kick off until March.
You will also need an eligible Bank of America small business account to get the 10% bonus on miles earned from purchases.
It's also worth noting that the Alaska Business card offers the companion fare on each account anniversary automatically — no spending requirement involved.
What I plan to do with my Alaska cards
For me, the fact that the annual fee is going up is not the end of the world. I can live with that, and since the Companion Fare remains unchanged, I'm still a holder of this card.
I used my Companion Fare for my niece on a recent trip to Hawaii. Unlike the Delta companion certificate, you can use the Alaska Companion Fare on trips to Hawaii, which is a big deal to me. I also love how flexible it is; I can book a one-way, round-trip or multicity itinerary, and as long as there are two economy tickets available, the Companion Fare discount applies.
I do like the increased earning potential on the Alaska card — but not enough to put additional purchases on the card. It makes a lot more sense for me to use a card that earns transferable currency.
I might reconsider if spending on the Alaska credit card helped me earn status, but aside from a few temporary offers (since expired), the card doesn’t do anything to help you earn Alaska status.
Unfortunately, these small changes are all part of a trend with Alaska lately that I’m not happy about. Alaska has instituted dynamic pricing on some awards, making it harder to find business-class awards. And when you do, they're often more expensive than booking with other programs.
I'm just not as enamored with Alaska as I used to be.
Bottom line
An Alaska plane takes off from Seattle in November 2022. CLINT HENDERSON/THE POINTS GUY
These changes aren’t terrible, but worse may come as more devaluations could be on the horizon.
There are still lots of things to love about Alaska, including the ability to add stopovers for free on most awards and the fact that you still earn miles for every mile you fly on Alaska. (That means you get the same miles even for cheap tickets, unlike with the other major U.S. carriers.)
Still, I’m very worried about the direction Alaska is headed. Negative changes for current Alaska cardholders are another change slowly driving me away from my onetime favorite airline.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
