In August, the Department of Justice opted not to block the proposed merger of Alaska Airlines and Hawaiian Airlines. The news came just eight months after the two U.S. carriers announced the $1.9 billion deal. Less than one month later, the Department of Transportation is taking another (giant) step forward in approving the airline merger.
For Hawaiian Airlines loyalty program enthusiasts, what will the benefits of this potential merger look like? Though Alaska Airlines plans to keep Hawaiian Airlines as a separate brand, the programs will operate under one loyalty program.
What does this exactly mean for HawaiianMiles and Alaska Airlines Mileage Plan members?
While the merger still needs to be officially approved by the DOT, the document outlining the agreement between the airlines and the DOT was revealed today. The agreement document finally provides loyal members with some insight into the future joint program, as well as what will happen to their hard-earned miles and elite status.
Keep reading to find out more about what we know about the Alaska Airlines and Hawaiian Airlines merger, as well as what we want to know if this consolidation officially goes through.
What we know about the Alaska Airlines and Hawaiian Airlines merger
According to a Securities and Exchange Commission document filed by Hawaiian Airlines in December 2023, the two airlines’ loyalty programs will be combined into one shared loyalty program, and your miles will carry over. Now, details have been revealed regarding how the conjoined loyalty programs plan to operate once the consolidation is complete.
Will your Hawaiian Airlines miles transfer to Alaska Airlines miles at a 1:1 ratio?
According to the agreement document, HawaiianMiles and Alaska Airlines Mileage Plan members will indeed be able to transfer their miles between the programs at a 1:1 ratio during the closing period and before the launch of the newly established loyalty program.
Once a new loyalty program is in place, your HawaiianMiles and Mileage Plan miles will be transferred and combined into that new program at a 1:1 rate.
This piece of news may be extremely valuable to those who have a stash of unused HawaiianMiles. Per TPG’s September 2024 valuations, Mileage Plan miles are valued at 1.5 cents per mile and HawaiianMiles at 0.9 cents per mile. Since members will be able to transfer their HawaiianMiles to Alaska’s loyalty program at a 1:1 ratio, you can increase the value of your rewards.
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Additionally, the agreement document states that miles will not expire.
Related: A gamble on Alaska miles — why I applied for 2 Hawaiian Airlines cards on the same day
What will happen if you have elite status with HawaiianMiles and/or Alaska Airlines Mileage Plan?
If you currently hold elite status with Hawaiian Airlines, your status will also be carried over. According to the agreement document, “[Hawaiian Airlines and Alaska Airlines will] for the remainder of the applicable program year, match and maintain the equivalent status levels” that both HawaiianMiles and Alaska Airlines Mileage Plan members hold.
Additionally, the agreement document states that the combined carrier will “match or increase status and benefits relayed by status as necessary to ensure members of each existing loyalty program are treated no less favorably relative to status, including by matching or increasing members’ elite status in the new combined loyalty program for the remainder of the applicable program year.”
However, neither Hawaiian nor Alaska has specified how a member’s status will match within the joint loyalty program.
“It is expected that [the elite tiers] will offer comparable or better benefits to what you receive today,” per the Securities and Exchange Commission document filed by Hawaiian Airlines in December 2023.
Another benefit of the merger is Hawaiian Airlines joining the Oneworld alliance. Currently, Hawaiian is not part of any major airline alliance, unlike Alaska, which is part of Oneworld. This merger will not only provide elite status members with additional Oneworld perks, such as priority check-in and bonus miles, but Oneworld travelers will be able to earn and redeem miles when flying with the carrier.
“Once the combination is complete, Hawaiian Airlines’ existing customers will enjoy the benefits of the industry’s highest-value customer loyalty program, earning and redeeming miles and receiving elite benefits on the full complement of Oneworld Alliance airlines, expanded global lounge access and benefits of the combined program’s credit card,” the SEC document said.
Award ticket details for the joint loyalty program for Hawaiian Airlines and Alaska Airlines
According to the agreement document, the combined program will not impose change or cancellation fees on award tickets when traveling with either carrier.
Note that this does not apply to Saver fare tickets or partner award flights.
Related: Alaska Airlines unveils 4 major changes to MVP elite status
What we want to know about the Alaska Airlines and Hawaiian Airlines merger
Though details on the future of the Alaska-Hawaiian loyalty program have been unveiled, there are still some lingering questions that we have about the merger.
Will American Express Membership Rewards lose Hawaiian Airlines as a transfer partner?
Earlier this year, Bilt Rewards lost Hawaiian Airlines as a transfer partner but kept Alaska Airlines. With the proposed acquisition, can American Express cardholders expect to lose Hawaiian as a transfer partner in the near future?
You can currently transfer Amex points to Hawaiian Airlines at a 1:1 ratio. Therefore, Amex cardholders will be able to convert Amex points to Alaska Airlines Mileage Plan miles. If you transfer your Membership Rewards points to Hawaiian and then transfer your HawaiianMiles to Alaska Airlines Mileage Plan (before the merger closing), you will indirectly unlock a transfer partner.
Related: American Express Membership Rewards transfer partners: Maximize your points
What will happen to Hawaiian Airlines’ cobranded credit cards?
Barclays currently issues two Hawaiian Airlines cobranded credit cards: the Hawaiian Airlines® World Elite Mastercard® and the Hawaiian Airlines® Business Mastercard®. Both offer two free checked bags on Hawaiian flights when you use your card to purchase eligible tickets from Hawaiian Airlines’ website, plus 3 miles per dollar spent on Hawaiian Airlines purchases; 2 miles per dollar spent on gas, dining and eligible grocery store purchases; and 1 mile per dollar spent on all other purchases.
Per the 2023 SEC document, Hawaiian will “continue to accept new applications.” So, can cardholders expect the cobranded cards to remain? Will the cards eventually dissolve? Or, will additional card benefits be added that will apply across the combined route network?
The information for the Hawaiian Mastercard and Hawaiian Business Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
How many miles will you need for Hawaiian Airlines award flights?
While many major airlines use dynamic award pricing, Hawaiian Airlines and Alaska Airlines still operate using award charts. However, Hawaiian’s award chart is based on several factors, including the region of your flight and the time of year (busier travel dates will cost you more miles). Some travelers also qualify for discounted award rates — namely, Pualani Platinum, Pualani Gold and Premier Club members, as well as select Hawaiian Airlines cardholders.
Meanwhile, Alaska Airlines has distance-based award charts for its own flights and separate award charts for partner airlines, all of which feature “starting at” award prices (actual rates can be two or three times higher, depending on the flight).
So, where will Hawaiian-operated flights fit into this? Since Alaska plans to keep Hawaiian as a separate brand, will it be subject to partner pricing, or will Alaska add new regions (and pricing) to its own award chart? Or, will Hawaiian keep its own award chart intact?
At this time, neither Hawaiian nor Alaska has specified what award flights will look like in a combined loyalty program.
Related: Alaska Airlines Mileage Plan award chart changes are now live
What will happen to other Hawaiian Airlines partners?
Hawaiian Airlines isn’t part of a major alliance, but it does have partnerships with a number of other carriers, including Virgin Atlantic, JetBlue and Japan Airlines. Additionally, you can earn (and redeem) miles with American Airlines, Delta Air Lines and United Airlines on interisland flights with Hawaiian Airlines.
While none of these partnerships are particularly valuable, it remains to be seen what will happen if the merger officially closes and the loyalty programs are combined.
Bottom line
We’ve seen airlines adopt new loyalty programs just in the last year. For example, Finnair now uses British Airways Avios as its respective reward program. However, Finnair retained its autonomy regarding the program’s elite status tiers and award chart.
Since the two airlines are combining their loyalty programs into one, the nuances of this new joint program remain to be seen. However, with miles transferring between the two programs at a 1:1 rate and the airlines doubling down on maintaining elite status for its frequent flyers, we’re excited about the direction of this merger.
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