Alaska dynamic pricing for American awards now live; expect cheaper short-haul awards
Alaska Airlines Mileage Plan has undergone a series of changes over the last couple of months, including dropping a valuable non-alliance partner, reducing some earning rates, expanding dynamic award pricing and charging sky-high rates for its newest redemption partners. Most of these changes have been negative, but there's one change that might be better than expected.
The Seattle-based airline appears to have rolled out distance-based pricing for American Airlines-operated award flights in the continental U.S., Alaska and Canada. Historically, these flights have cost a flat rate of 12,500 miles in the main cabin and 25,000 in business class. However, we're now seeing short-haul routes cost fewer miles.
Travelers will save up to 40% when compared to the old award price on the shortest flights with this new award-pricing formula — let’s take a closer look.
Alaska pricing American awards based on distance
On March 1, Alaska removed published caps for American Airlines award flights in the continental U.S., Alaska and Canada. According to the award chart, these awards should now start at 12,500 miles one-way in the main cabin and 25,000 in business class and then "vary depending on demand."
There haven't actually been any pricing changes yet, but based on this verbiage, it seemed that awards would only get more expensive. Fortunately, that's not the case.
Based on our searches, it appears that nonstop American-operated flights under 500 miles in distance (i.e., Boston to New York) now start at 7,500 miles in economy, flights between 501 and 650 miles in distance (i.e., Miami to Atlanta) at 10,000 miles and all other flights still at 12,500 miles.
Related: Alaska Mileage Plan is making major changes
As of now, it appears that all business- and first-class awards still cost 25,000 miles one-way, regardless of the distance.
In other words, flights have only gone down in price, though based on Alaska's ambiguous award chart, that can change down the line.
The new rates are live on Alaska's booking engine for travel starting May 9. Interestingly, Alaska hasn't officially updated its award chart yet, but TPG has reached out to the airline for comment and will update this post when we have more information.
Related: Your complete guide to earning and redeeming with Alaska Airlines Mileage Plan
Bottom line
Alaska Airlines has quietly introduced distance-based pricing for American Airlines award flights within the continental U.S., Alaska and Canada.
Right now, shorter flights have gotten substantially less expensive, while no flights have gone up in price. Of course, with no published price ceilings, this could change at any point.
This move more closely aligns Alaska's award rates with American AAdvantage's own award chart, which charges 7,500 miles for saver-level economy flights under 500 miles and 12,500 miles for all other flights within the continental U.S. and Canada. The distance-based pricing model is also similar to the one Alaska has for its own flights, though those rates are much more variable.
Overall, this is a welcome improvement for the time being, and couldn’t have come at a better time given the program's recent devaluations.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.