Atmos Rewards Pushes the Burden of Elite Status Further on to the Alaska and Hawaiian Customer


Alaska and Hawaiian officially rolled out their new combined loyalty program yesterday called Atmos Rewards. In short, the program largely stays similar to what Alaska Mileage Plan had before. I’m not here to give you a summary — you can find that anywhere. Instead, I want to talk about one change in particular: the ability to choose how you earn miles. I don’t love it.

Oh sure, the overall reviews of the program have been glowing so far. Just take a look at some of the points and miles bloggers out there. One Mile at a Time calls it “innovative” and says it has “some cool changes.” View from the Wing says the “new program actually appears to be headed in the right direction.” The Points Guy starts its article with “It’s not often that loyalty programs are fully reborn, and it’s ever rarer for most of the changes to appear mostly positive without much in the way of a devaluation.” I could go on, but I won’t.

Yes, the general idea that redemptions aren’t devalued is nice… though it can change anytime. Also, people seem thrilled with the new fancy-pants premium credit card and the benefits involved. I get that. Oh and yes, there’s the complimentary day-of-departure upgrades on long-haul flights for top tier status members. That will never be me, so I don’t care.

As you all know, I have been on my first ever journey toward earning elite status this year, and after doing way too much math, I settled on Alaska. As if it wasn’t complicated enough before, Alaska has now decided to make it even tougher by requiring travelers to pick how they want to earn their points. The one thing I crave in an elite program more than anything is simplicity. Make my life easier and make the program simpler to understand. Alaska has done the opposite here under the guise of “choice.”

Today when you earn miles in Alaska’s program, there are three components to it. To make this easier, I will use the new Atmos nomenclature when I talk about this, points means redeemable miles and status points means elite qualifying miles. And to be clear, both points and status points earn the same when on Alaska. You earn based on distance flown, but there is a 500-mile minimum for all flights plus there is a bonus for bookings in higher classes of service. Here’s how it breaks down.

  • Basic/Saver: earn 30% of miles flown
  • Discounted Economy (M class or lower): earn 100% of miles flown
  • More Expensive Economy (H or K class): earn 125% of miles flown
  • Most Expensive Economy (Y or B class) or Discounted First (D or I class): earn 150% of miles flown
  • More Expensive First (C class): earn 175% of miles flown
  • Most Expensive First (J class): earn 200% of miles flown

The booking bonuses can get even more lucrative with partner bookings made via Alaska Airlines where, for example, in international First Class you earn 350% of miles flown. That’s a lot.

The point of this system is it gives you benefits no matter how you travel. If you only fly interisland, you’ll still get those 500 miles for every flight which boosts you up from the actual mileage. (For those playing at home, the Honolulu – Kahului flight is a mere 100 miles in reality.) If you fly long distances on cheap fares, you still get your distance-earning which has been a nice feature of the program. But if you buy really expensive fares, you get the multiplier which makes it even more lucrative.

Now, those three components have all been separated. Your choices are:

  • Distance: Earn 1 point/status point for every mile flown – class of service bonuses and minimum segment earning are gone, though partner airlines not booked via Alaska will still use the old earning structure since they don’t have revenue data
  • Revenue: Earn 5 points/status points for every dollar spent – again, partner airlines not booked via Alaska still use the old earning structure
  • Segment: Earn 500 points/status points per segment flown

No, you don’t choose before each flight. Instead, you get to sweat out making a decision every year, or you can do nothing. If you select nothing when this goes into effect at the end of 2026, then you will automatically go on the revenue plan. Then you are able to make a change once every 365 days. When you make the change, it will only apply going forward. So let’s say you’re trying to qualify for status in calendar year 2027 and you started on the revenue plan. Halfway through, you realize you’ve made a grave mistake and want to do distance. You can switch, but everything you’ve flown in the first half of the year stays as revenue. Everything going forward is distance-based. No pressure.

In the end, there are two ways to look at this. One is you just don’t pay attention, go with revenue, and then hope it works. Two is you agonize over the right decision and hope you guess right. Either way, it will be all too easy to look backwards and have regrets.

I had lunch with a good friend this week who is a 1K and million miler on United. She couldn’t help but laugh at just how bad I was at this whole elite status thing. She’s not wrong. Part of it is that I just don’t want to care enough. I only did it this year as a fun topic to write about. But the issue for me has always been that this stuff is too complicated and the rewards aren’t worth enough for me to bother. I’m sure I’d feel differently if I flew 100,000 miles a year, but I don’t, and life as a lowly silver-level elite isn’t worth much when you can just get a credit card for some benefits and pay for the rest. I also live in a place where many airlines have robust service, so it makes even less sense to tie yourself to one. I know I’m not alone in this.

Atmos just makes things more complicated. I hate having the power of choice here, because there is no clear correct answer when you make the decision. There is too much room for regret.

I realize that those with top tier status (which will now take 135,000 miles instead of 100,000 to reach) are thrilled about the global upgrades. Those who care about playing the credit card game like this new premium card, and heck, I might get one eventually too. And others are just thrilled with the fact that the redemption side has not changed in this revamp. Other airlines have apparently set the bar for success exceedingly low.

Alaska was stuck in between a rock and a hard place. Revenue-based earning has become the standard, but there are many who have lavished praise on the airline for sticking with distance-based. And those important travelers in Hawaiʻi that regularly fly interisland? They need a segment-based option. The problem is that all of those things existed in the previous structure and you didn’t have to choose. Now, it’s just one more piece of complexity on top of everything else.

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Brett Avatar

21 responses to “Atmos Rewards Pushes the Burden of Elite Status Further on to the Alaska and Hawaiian Customer”

  1. William B Avatar
    William B

    Airlines just love complexity. So, why are you surprised?

  2. Michael Miller Avatar
    Michael Miller

    You nailed it Brett. When every program makes changes every single damn year, you need an MBA in Airline Loyalty Chaos to keep up. I’m tired of both constant change and increasing complexity. And earning levels? 20 flights to make Silver? Enough to make me want to fly Spirit! Well almost.

    1. Oliver Avatar
      Oliver

      Actually, to make Silver you just need the Summit card and $20k in spend. You will get 10k status points for having the card and another 10k for the $20k in annual spend.

      Of course, the status isn’t worth much, and that’s why it’s relatively easy to achieve.

    2. Stvr Avatar
      Stvr

      You seem like a smart guy. I can math out which of these three paradigms is clearly the best (distance… I don’t buy expensive plane tickets… I use miles or don’t fly at all). I don’t have an MBA. I have faith in you.

  3. Oliver Avatar
    Oliver

    Are you sure that class of service bonuses for the distance based option are gone?

    1. Darin Avatar
      Darin

      I was going to ask the same thing. Other blogs are reporting that COS bonuses are remaining, but when I look at Alaska’s site there’s no information confirming this either way (other than “Distance Traveled” clearly stating “1 mile flown = 1 point earned”, again with no mention of COS).

    2. Brett Avatar

      Oliver and Darin – Yes. I made sure to get confirmation from an Alaska spokesperson on that piece, because it wasn’t made clear in the materials. Direct quote: “For distance-based earning when the new choice accrual takes effect next year, it will be pure distance flown – no class of service bonuses or minimum miles offered.”

  4. Gregg Wiggins Avatar
    Gregg Wiggins

    I live in central Florida and have a Mileage Plan (er, I mean Atmos) account because I fly to the PNW two or three times per year, using the convenient for me Alaska nonstops via MCO. I’m planning to choose “distance” when I’m asked because any time I step aboard one of their aircraft my itinerary is likely to include a transcon r/t.

  5. Tim Dunn Avatar
    Tim Dunn

    In a world where so much of aviation social media is controlled by points and miles bloggers who hawk credit cards, this is a refreshingly honest reminder that airline loyalty programs exist first and foremost to generate lasting revenues for a company with customer benefits only a side benefit.

    and the AS brand complexity is separate from the strategy? in choosing a loyalty program name that is the same as a multi-state NYSE-traded energy company that is worth 4X more than ALK.

  6. Carl Avatar
    Carl

    It’s pretty weird that the Summit premium card doesn’t come with the $99 companion fare. A 25,000 mile award discount that’s somewhat hard to use isn’t as valuable as the companion fare you can buy on any flight

  7. See_Bee Avatar
    See_Bee

    I don’t hate this given the size and nuances of the AS/HA network. AS has some very distinct customers that they want to maintain and can’t leverage their scale like the legacies

    For example, you mentioned inter-island. Those people will choose segment, which defends against deflection to WN. Then Gregg Wiggins mentioned above that he maintains loyalty with AS from Florida of all places. The distance-based earning is a differentiator against the 2x daily DL non-stop (and other legacy connections). Finally, you have business travelers on the west coast that may prefer the revenue based from buying last minute tickets which gives AS a potential leg up in those (crowded) markets

    For the people that chase status and take the time to learn these programs, I think those customer will find a lot of value in having the optionality

  8. Ghostrider5408 Avatar
    Ghostrider5408

    ATMOS created a feeding frenzy in the world of travel bloggers like no other. Actually there are only three that carry some semblance of credibility and your one of them. I am a MM on AS and agree with other commenters why can’t we have a simple plan akin to the original plans way way back in time ? I have decided to just chug along as always avoiding the ferris wheel ! The Summit version CC is interesting but like Apple is locks you tighter into their eco system.

    Travel safe

  9. Bgriff Avatar
    Bgriff

    This does seem like it attempts to do well by the Hawaii traveler but actually totally screws them over. If you truly fly only within the islands, then picking up 500 miles for every segment is a decent deal. But I can’t imagine there are many very frequent travelers who genuinely do only that, and it would take a ton of that flying to get to meaningful status levels. And all other flights to and from Hawaii are pretty long and often expensive, so to settle for only 500 miles on those long segments is a terrible deal.

    I could imagine that this choice actually encourages some frequent Hawaii-based travelers to split their loyalty … go for Hawaiian locally and take the 500 miles for those, but then fly United to the mainland, or even keep flying Hawaiian but credit those trips to AA. Or maybe stick with Hawaiian for long-haul and choose distance or revenue-based earning, and then do more of your local flying with Southwest.

    1. WrightHI Avatar
      WrightHI

      Split loyalty has been common since forever, particularly with UA. I could never figure out why HA didn’t do more to use the loyalty plan to encourage frequent interisland travelers to stick with it long haul. I thought AS would fix that. I was wrong. This is a huge devaluation from what I was expecting based on everything AS has said since the merger. It’s still almost certainly better than any available alternative for my travel, but I’m quite disappointed in how AS is treating its newly acquired HA elites.

  10. William Carney Avatar
    William Carney

    Going forward, I think I will just use my AAdvantage number when traveling on Alaska to stick with a known program. Also, Alaskaair must have had to pay Dolby Labs for using their trademarked name Atmos. Or wait for the cease and desist….

    1. Tim Dunn Avatar
      Tim Dunn

      Atmos Energy has a little (r) on its website as well.

      Regardless of whether Atmos is trademarked or not, having two different airlines under the same ownership with an entirely different loyalty program that does not share the name of one of the two operating carriers is not the norm in the US market Maybe unconventional will work but there is likely far more brand confusion than benefit esp. since Atmos is far more commonly used in multiple parts of the US including for a company that is listed on the New York Stock Exchange.

  11. Stvr Avatar
    Stvr

    You seem like a smart guy. I can math out which of these three paradigms is clearly the best (distance… I don’t buy expensive plane tickets… I use miles or don’t fly at all). I don’t have an MBA. I have faith in you.

  12. Mike Avatar
    Mike

    Too many layers, too much complexity. Forget it.

    Speaking of layers, Delta has started rolling out first class segmentation – the “better” and “best” options are in place. And indeed, looks like have to pay more now to keep what we had before. you can see the tick list of things they might strip out when the “good” option comes on line. Annoyed already.

  13. southbay flier Avatar
    southbay flier

    I find this confusing too. I have no idea from year to year what my flying would look like, so choosing up front would be total guesswork. Typically, I get Alaska miles when I fly on their partners to Asia. I wonder how that will work?

    At least with the legacies being all about the Benjamins, you can play the game if you choose. I also had a project in Minneapolis and since Delta charges an arm and a leg to go to Minneapolis, it was easy to get status for next year. My next project is in Salt Lake City, which is closer and cheaper to fly to, but is yet another Delta hub.

  14. Ipod Avatar
    Ipod

    >Revenue-based earning has become the standard, but there are many who have lavished praise on the airline for sticking with distance-based. And those important travelers in Hawai?i that regularly fly interisland? They need a segment-based option.
    >The problem is that all of those things existed in the previous structure and you didn’t have to choose

    The revenue-based earning did not exist in the previous structure. Alaska’s goal is to default to it without suffering backlash from frequent flyers decrying the downfall of the last distance-based US mileage program. Along with the hidden deval of separating out the 500 mileage minimum from the distance based program and killing distance-based COS bonuses.

  15. Mary Avatar
    Mary

    Excellent post!!

    These programs are no longer attractive to the regular folks (too confusing) nor to the MBA types (they value their time too highly to spend it on this).

    Not sure what Alaska is trying to accomplish with all this complexity besides alienating customers.

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