Frequent flyers with Alaska Airlines can anticipate the launch of the airline’s new loyalty program this summer.
This initiative marks a significant milestone in the Seattle-based airline’s merger with Hawaiian Airlines. The upcoming program, which has yet to be named, will merge and supersede the existing Alaska Mileage Plan and Hawaiian HawaiianMiles programs.
During a quarterly earnings call with investors on Thursday, Alaska Airlines CEO Ben Minicucci referred to the new program as “another exciting step towards enhancing our guest experience.” The loyalty platform will also be associated with a new premium credit card.
Despite the upcoming changes, travelers are still eager to enroll in one of the airline’s existing co-branded Mileage Plan credit cards. Sign-ups for these cards surged by 26% year-over-year in the first quarter, with a notable 40% increase in Hawaii. This uptick helped boost revenues from co-branded cards for Alaska amid challenging market conditions.
Alaska experienced a slowdown in travel demand in the first quarter similar to other airlines, resulting in a net loss during that period and prompting the airline to postpone full-year guidance updates. Nevertheless, executives expressed optimism that the worst is behind them.
“Overall bookings have stabilized as we move forward, albeit at lower yields than anticipated,” Andrew Harrison, Alaska’s chief commercial officer, mentioned during the call. Yields refer to the fare prices paid by travelers.
Despite the slowdown, Alaska leaders are optimistic about the airline’s future.
Premium Offerings Thrive Amid Demand Decrease
Alaska’s investment in premium services is proving to be a wise decision. Revenue from first-class and extra-legroom economy seats (which Alaska terms “premium class”) increased at a faster rate than economy seat revenue in the first quarter, according to executives.
The airline is currently retrofitting over 200 Boeing 737s to include more premium seats. This update will add four first-class seats (bringing the total to 16) to its 737-800s and six additional extra-legroom economy seats (for a total of 30) to its 737-900ERs and 737 MAX 9s. New 737 MAX 8s with the same layout as the updated 737-800s are expected to start arriving in May.
Daily Newsletter
Enhance your inbox with the Flying Frugal Daily newsletter
Join over 700,000 readers for the latest news, comprehensive guides, and exclusive deals from Flying Frugal’s experts.
Alaska aims to complete updates on more than half of its 159 737-900ERs and MAX 9s (84 aircraft) by July, with retrofitting of its 59 737-800s slated to commence this summer. The airline anticipates finishing the premium enhancements by summer 2026.
Alaska-Hawaiian Merger Progressing Smoothly
Alaska is confident about the timing of key milestones in its merger with Hawaiian Airlines, according to Minicucci. The airline is on track to secure a single operating certificate — the official authorization to operate as a commercial airline — from the Federal Aviation Administration (FAA) in the fourth quarter of 2025.
Hawaiian is scheduled to transition to Alaska’s reservation system (also known as a “passenger service system”) in the second quarter of 2026. The integration of reservation systems is often one of the most challenging aspects of an airline merger; however, Alaska successfully managed this when it integrated Virgin America in 2018.
When asked about the potential effect of the FAA’s typically slow processes, Minicucci expressed confidence that he does not foresee any delays.
“Overall, Hawaii is a bright spot for us,” he remarked regarding both the merger and the market. “Everything we are doing is progressing ahead of expectations.”
California Continues to be a Focus for Alaska Beyond San Diego
Alaska’s executives faced questions regarding their strategy in California. Recently, the airline canceled four long-haul routes from Los Angeles International Airport (LAX) and San Francisco International Airport (SFO), while adding three new routes from San Diego International Airport (SAN).
“San Francisco and Los Angeles remain integral to our California strategy,” Harrison reiterated in response to inquiries about the airline’s approach in the state.
He emphasized that the growth in San Diego aligns with a long-term strategy that complements its loyalty initiative. Alaska has progressively expanded its presence in Southern California over the past decade, making it the second-largest airline at SAN by flights and seat capacity, following Southwest Airlines, according to data from aviation analytics firm Cirium.
Alaska sees the “highest average card spending” in San Diego compared to its other California markets, Harrison noted.
“San Diego has shown remarkable performance in our growth,” he added. “We are committed to continuing our investment there.”
By October, Alaska plans to maintain 90 peak-day departures from San Diego, introducing additional flights to key destinations such as Las Vegas’ Harry Reid International Airport (LAS), Sacramento International Airport (SMF), and San Jose Mineta International Airport (SJC).
