Alaska Airlines becomes the latest carrier to permanently eliminate change fees
Welcome to the party, Alaska Airlines.
United got the ball rolling on Sunday afternoon when it shocked industry observers by "permanently" dropping change fees. Less than 24 hours later, American and Delta matched. And now, Alaska Airlines is doing the same.
Let's take a look at how Alaska's policy breaks down.
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Alaska permanently eliminating change fees
Like the Big 3 (and Southwest), Alaska is permanently dropping change fees effective immediately. Alaska's offer includes tickets to all destinations the carrier flies, including the carrier's international flights to Canada, Costa Rica and Mexico.
All tickets types are included in the no-change-fee policy, except for Alaska's version of basic economy, known as Saver fares. (All tickets purchased through Dec. 31, 2020, including Saver fares, can be changed with no fee.)
Alaska's Mileage Plan loyalty program is one of our favorites thanks to its breadth of partners. For now, all awards for travel on Alaska will be changeable or cancelable at no cost. Alaska hasn't yet confirmed what's going to happen with partner redemptions. Hopefully, the Seattle-based carrier will waive those fees too.
Just because Alaska is eliminating change fees doesn't mean that all fares are immediately refundable. You'll still need to purchase a refundable ticket to enjoy that privilege (or hope that the airline significantly delays or cancels your flight). Otherwise, you'll receive a future travel credit should you decide to cancel your flight.
Related: 5 things to know about Alaska Airlines Mileage Plan
Alaska will (likely) give you a credit for changing to a cheaper fare
Alaska's offer will hopefully be more generous than United's.
For tickets purchased before the end of the year, you'll get a future travel credit if you end up switching to a cheaper flight. Alaska hasn't yet made a decision about what it'll do with tickets issued beginning in Jan. 2021. Hopefully, it'll keep the existing policy.
Note that if you end up changing to a more expensive flight, you'll be on the hook for the fare difference. You won't, however, need to pay the pesky $125 change fee.
Related: How American, Delta and United no-change-fee policies stack up against Southwest
What's the value of Mileage Plan elite status?
When American, Delta and United announced no-change-fee policies, they broke with the long-standing industry practice of charging $200 (or more) to change a ticket. With the legacy network carriers, getting the change fee waived wasn't really in the cards. You'd have to hope for a limited-time travel waiver or a schedule change.
With Alaska (and JetBlue), waived change fees is a core value proposition to elite status. Top-tier Mileage Plan MVP Gold and MVP Gold 75K members never have to pay ticketing fees (except on basic economy tickets).
Now, with Alaska removing change fees going forward, it'll be interesting to see if the carrier adds new perks for elites. Of course, the value of elite status is diminished during the pandemic, but there's definitely one less reason to strive to top-tier status right now.
Related: Will travelers remain loyal to loyalty programs when ‘normal’ returns?
Bottom line
Alaska becomes the fourth major U.S. carrier to permanently eliminate change fees since Sunday, joining American, Delta and United. A fifth — Southwest — did not charge them in the first place. Note that Alaska's new policy makes elite status less valuable, since it gives a once top-tier-only perk to all travelers.
And now, all eyes are on JetBlue, one of the last U.S. carriers with a traditional fare structure that's still charging change fees. Will it become the sixth U.S. carrier to spare its customers from change fees?
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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
- 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.