On Tuesday, the U.S. Department of Justice opted not to block the proposed merger of Alaska Airlines and Hawaiian Airlines. The news comes just eight months after the two U.S. carriers announced the $1.9 billion deal.
“I am confident that by the joining of these two airlines, a stronger company will emerge and offer more travel options for Hawai’i residents and local businesses — and will enhance competition across the U.S. airline industry,” Hawaii Gov. Josh Green said in a statement. “I appreciate the DOJ’s strong consideration of Hawai’i’s unique needs during its review of the proposed merger. I look forward to this merger proceeding and the overwhelming consumer, employee and community benefits that will result from it.”
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.
So, is it safe to assume Hawaiian Airlines will adopt the Alaska Airlines Mileage Plan program, or will the two carriers operate under a new name entirely?
While the merger still needs to be approved by the U.S. Department of Transportation, the potential consolidation of these two programs has left us with several questions on how this merger will affect those wanting to earn and redeem miles, use elite status benefits and more.
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
At this time, details are scant regarding how the conjoined loyalty program will operate once the consolidation is complete. According to a Securities and Exchange Commission document filed by Hawaiian in December 2023, the two airlines’ loyalty programs will be combined into one shared loyalty program, and your miles will carry over.
Additionally, if you currently hold elite status with Hawaiian Airlines, your status will also be carried over. However, neither Hawaiian nor Alaska has specified how Pualani Gold or Pualani Platinum members’ status will match Alaska’s Mileage Plan elite status tiers.
“It is expected that [the elite tiers] will offer comparable or better benefits to what you receive today,” per the SEC document.
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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,” according to the SEC document.
Related: Alaska Airlines unveils 4 major changes to MVP elite status
What we want to know about the Alaska Airlines and Hawaiian Airlines merger
However, much more isn’t clear about the future of an Alaska-Hawaiian loyalty program.
Will your Hawaiian miles transfer to Alaska miles at a 1:1 ratio?
According to the SEC document, the miles you earn with Hawaiian Airlines will not expire, and you can continue to earn and redeem those miles prior to the merger. If you have remaining miles post-merger, “your existing miles will be honored.”
However, the SEC does not state how they’d be honored. Specifically, will those miles be converted into Alaska Airlines Mileage Plan miles at a 1:1 ratio?
Past experience is mixed along these lines.
For example, when Finnair adopted Avios as its loyalty currency, any remaining Finnair Plus award points were automatically converted at a 3:2 ratio. However, the conversion ratio was 1:1 during the integration of American Airlines AAdvantage and US Airways Dividend Miles back in 2015.
It’s unclear exactly what approach Hawaiian and Alaska will take, though it is worth noting that our August 2024 valuations have Alaska miles worth roughly 72% more than Hawaiian miles.
Will American Express Membership Rewards lose Hawaiian Airlines as a transfer partner?
Earlier this year, Bilt Rewards silently lost Hawaiian Airlines as a transfer partner but kept Alaska Airlines. With the proposed acquisition, can Amex cardholders expect to lose Hawaiian as a transfer partner in the near future?
You can currently transfer Amex points to Hawaiian at a 1:1 ratio. Plus, Amex is offering a 20% transfer bonus to Hawaiian Airlines until Aug. 31; therefore, your points currently transfer at a 1:1.2 ratio.
Since we don’t yet know if Hawaiian miles will transfer to Alaska at a 1:1 ratio, you may be rolling the dice by making a speculative transfer from Amex to Hawaiian. After all, these miles may eventually convert into Alaska miles at a 1:1 ratio. However, you could fall victim to your Hawaiian miles converting at a far lower rate. It’s up to you to decide whether this is worth the gamble.
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; 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 SEC document, Hawaiian will “continue to accept new applications.” So, can cardholders expect the cobranded cards to remain? Will the card 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 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 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 is approved 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 award program. However, Finnair retained its autonomy regarding the program’s elite status tiers and award chart.
At this time, there are not many details on how the consolidation of Hawaiian Airlines and Alaska Airlines will affect the loyalty programs and its members — but we’re eagerly awaiting news and will be sure to update our readers when we get more details.
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