As we all know, nowadays a large percentage of profits in the US airline industry are derived from loyalty programs, and in particular, co-brand credit card agreements. The bigger an airline is, the more lucrative its loyalty program can be.
Alaska Airlines is probably the airline that most punches above its weight when it comes to loyalty, so there’s an interesting update…
Alaska & Bank of America will strengthen ties even more
Alaska Air Group and Bank of America have announced a multi-year extension of their co-branded credit card agreement, covering the Atmos Rewards loyalty program.
Alaska has partnered with Bank of America for more than 30 years. Historically Hawaiian has partnered with Barclays, but we’ve already known that Bank of America would become the exclusive issuer of co-branded Atmos Rewards credit cards, covering all of Alaska Air Group.
As it’s described, the renewed agreement will deepen integration between Alaska and Bank of America by:
- Creating incremental value for both companies
- Increasing investment in the Atmos Rewards brand, Alaska and Hawaiian’s lounge program, and enhancing the suite of credit cards (including new cards and refreshes of existing cards)
- Enhancing technology and the cardholder experience, including expanded benefits across multiple card offerings
As you can see, this is pretty vague. So when can we expect to see changes? The Q&A section says that they’re “actively working to introduce enhanced benefits in the future and new product features as they become available,” and “cardholders will be informed of specific updates” at “the appropriate time.”
The press release notes how renumeration from the co-brand card portfolio grew 10% in 2025, fueled by the launch of the Atmos Rewards loyalty program, and the new premium Atmos Rewards Summit Card. Here’s how Alaska CEO Ben Minicucci describes this update:
“Bank of America has been a foundational partner to Alaska’s growth over the last few decades. Together, they have helped us build the airline industry’s most generous and valuable loyalty program. Extending this partnership will mean even greater benefits for cardholders, taking them further as Alaska and Hawaiian expand across the globe.”
What changes could we see from Alaska & Bank of America?
It’s of course not surprising to see this partnership expanded. Over time, airlines hope to grow their loyalty revenue, and a key part of that is richer co-branded credit card agreements. As it impacts Atmos Rewards members, it seems the biggest updates will be increased investments in the lounge programs, and enhancing the suite of co-branded credit cards, including new cards and refreshes to existing cards.
So we’ll see what exactly changes to existing cards entails, as I could see that going many ways. When it comes to introducing new cards, I imagine there are a couple of products that are most likely:
So we’ll see how this plays out, and with what timeline this all happens, but it should be good news. The one opportunity that doesn’t existing is with transferable points. Unlike American Express, Chase, Citi, etc., Bank of America doesn’t have a transferable points program. For example, when American and Citi recently expanded their partnership, that included AAdvantage finally becoming a Citi ThankYou transfer partner.
Bottom line
Alaska Air Group and Bank of America have revealed that they will be expanding their partnership, which is expected to improve economics for both companies. This will include new credit cards, and more perks on existing cards.
Obviously the way you improve the economics of partnerships like this is by getting people to apply for more cards, and also to spend more money on cards, so I imagine this should be good for consumers.
What are you expecting from Alaska and Bank of America strengthening ties?
