Detailed Analysis of the Alaska Airlines and Hawaiian Airlines Merger: “Credit Cards Will Be Exclusively Issued”

【Oct 2024 Update】According to VFTW, the rough plan for the Hawaiian Airlines and Alaska Airlines credit cards is out too. Before the full merger, these two cards will still be issued separately by Barclays and BofA, and afterward, the Hawaiian card will gradually be converted into an Alaska card. There’s also a chance that a more premium Alaska co-branded card will be launched.

• There will be two separate card issuers, Barclays (Hawaiian) and Bank of America (Alaska) until they move to a single loyalty program – which they “intend to happen pretty quickly” since that will let them market more broadly and with less complexity.
• Legacy Hawaiian Airlines cardmembers – the “back book” – will transfer over to the Alaska card. However there is “no immediacy for that to transition” and is something that will “happen over a period of time.”
• When they move to the single loyalty program, though, the free transfer benefit – which is an element of the legacy HawaiianMiles program – “goes away for that subset of cardholders.”
• Separately, last week at an event that I attended, he suggested the likelihood we will be seeing a premium Alaska Airlines credit card in the offing as well.

So what should we do? If you’ve already opened most of the cards you want and also like using Alaska miles, then it makes sense to apply for both Hawaiian cards while the timing is right. The 70,000-point personal card is pretty good, but the business card’s 50,000 is a bit low. Maybe Barclays will raise the sign-up bonus during the interim to attract more users, and then make a bit more money when it sells the portfolio to BofA.

• Hawaiian Airlines co-branded card 70,000 bonus (personal)
• Hawaiian Airlines business card

Merger progress update

On September 27, transfers had already started, and mileage transfers were almost instant, so if you need them, you can go ahead and transfer. Transfers from AMEX to Hawaiian Airlines have also been restored and are working normally.

• Transfer page

The site says it takes 72 hours to post, but in practice it was almost instant. Also make sure the information on both accounts matches as closely as possible.

AMEX’s transfer page still lists Hawaiian Airlines as a transfer partner, and there have been reports online that transfers are now failing and being automatically refunded. Personally, I don’t think they would simply remove this feature outright; if they do remove it later, they would likely give advance notice.

About the merger

We’ve shared a lot of news about the Alaska Airlines and Hawaiian Airlines merger before:

• U.S. DOT: Protect the public interest in the Alaska Airlines and Hawaiian Airlines merger (1:1 transfer, matching, etc.)
• Alaska Airlines announces acquisition of Hawaiian Airlines, approved by the U.S. Department of Justice
• Alaska Airlines and Hawaiian Airlines will merge, and the loyalty programs will be integrated

The details of this merger have finally been finalized! If you hold elite status with either airline or have some Alaska or Hawaiian miles, it’s worth taking a careful look.

• Official overview

Below, we’ll go over a few of the more important merger details.

According to the official site, benefits and miles are currently the only things that are interoperable, but the full integration of the two programs will happen in mid-2025.

Mileage transfers

According to the official site, reciprocal transfers between the two programs will open soon at a 1:1 ratio, with no fees. The site also says later this month, so we expect it to open by the end of September. We’ll remind everyone when it becomes available.

At first glance, this looks like nothing more than reciprocal transfers between two airline programs, but there’s actually a lot to unpack here. Because these two mileage currencies already have corresponding partners, this 1:1 bridge effectively connects the two sides.

• Below are the points that can be transferred to Alaska miles. In fact, aside from Bilt and Marriott, the other sources aren’t really worthwhile, so these are still relatively scarce.

• Below are the points that can be transferred to Hawaiian Airlines. In addition to Bilt and Marriott, there’s also AMEX, the big points powerhouse. So after this month’s update, AMEX Membership Rewards can first be transferred to Hawaiian miles, and then to Alaska! Taking that a step further, AMEX previously offered a 20% transfer bonus to Hawaiian Airlines. If you caught that promotion and it went through, it would be equivalent to converting Membership Rewards to Alaska miles at 1:1.2. If Alaska miles are valued at 1.6 cents per point, then Membership Rewards would have generated 1.2*1.6=1.92 cents per point in value! Either way, Membership Rewards has definitely appreciated in value! Congrats in advance, everyone.

Will AMEX then remove direct Membership Rewards transfers to Alaska, or cancel Membership Rewards transfers to Hawaiian Airlines? Personally, I don’t think there will be much change before the two programs fully merge in May 2025. The ability to transfer Membership Rewards to Alaska should continue. After that, the new terms should be negotiated between AMEX and Alaska, and the ratio will probably still be 1:1.

Status matching

First, according to the official site, this matching will be available later in 2024, and you’ll be able to link your Alaska Airlines and Hawaiian Airlines accounts directly and match status right away.

The match follows the table below.

In addition, if there is EQM in the account, it will also be combined directly, which could result in a higher status.

Credit cards

Currently, Alaska Airlines' credit cards are issued by BofA, with both a business card and a personal card. The merger shouldn't have any negative impact. In fact, the value of the companion tickets these two cards offer should increase going forward. After all, Hawaiian Airlines' capacity is now part of the mix.

Hawaiian Airlines' co-branded card is issued by Barclays. Going forward, there are two possibilities: one is that BofA and Barclays each continue issuing their own Alaska co-branded cards, similar to Citi and Barclays AA. The other is that Hawaiian Airlines co-branded cardholders are completely sold off to BofA in one package. In any case, this card currently has a 70,000 sign-up bonus, so it may still be worth applying for and then converting it to Alaska miles.

• Hawaiian Airlines co-branded card 70,000 bonus (personal)

The business card's sign-up bonus is currently a bit lower at 50,000. If you don't have any other cards to apply for, it can also be worth considering.

• Hawaiian Airlines business card

Other

• Connecting flights: You'll enjoy seamless access to 29 international destinations served nonstop by Alaska Airlines and Hawaiian Airlines, covering the Americas, Asia, Australia, and the South Pacific, as well as another 1,200 cities offered through the oneworld® alliance and Alaska Airlines' global partners.

• Booking: Soon you'll be able to buy Hawaiian Airlines flights on alaskaair.com and Alaska Airlines flights on HawaiianAirlines.com.

• App and website enhancements: Over the next few months, we will continue improving the digital experience.

• Huaka'i by Hawaiian: a new program designed to offer unique discounts and benefits for Hawaii residents. It provides a 10% discount each quarter and one free checked bag.

• Lounges: Before the merger is fully complete, the two lounge networks will continue to operate separately. Alaska Lounge members can access Hawaiian Airlines lounges when flying Hawaiian Airlines.

My thoughts

This merger moved pretty quickly from announcement to official implementation, and the Department of Justice and the Department of Transportation did not stand in the way. After absorbing Hawaiian Airlines, Alaska Airlines will also become stronger. I just hope the miles won't be devalued; expanding redemption options would be even better. After all, Alaska Airlines was also named the best airline rewards program.

• US News announces the 2024-2025 best travel rewards programs: Alaska Airlines and Wyndham top the list!

In 2024, Alaska Airlines has already rolled out a round of updates. I don't expect any major moves before the merger, so we'll see whether there are any changes to the award chart after the merger.

• 2024 Alaska Airlines loyalty program changes: major mileage redemption overhaul, EQM exclusivity, more useful credit cards, and new partners added