Alaska Airlines introduces an expansive new loyalty program

[Alaska Airlines 737-900ER N298AK KPHX]
Wirestock

Alaska Airlines (NYSE:ALK [https://seekingalpha.com/symbol/ALK]) introduced its Atmos Rewards program on Wednesday. The enhanced combined loyalty program, unifying Alaska's Mileage Plan and Hawaiian Airlines' HawaiianMiles, creates a larger and more robust platform catering to a global customer base. Atmos Rewards amplifies the airline's value proposition by delivering increased flexibility. Members can now choose how they earn points by distance traveled, price paid, or flight segments, which could appeal to a broader range of travelers and spur more in-depth engagement. The expansive choice of ways to earn points was said to be a first for a global airline.

"Atmos Rewards is designed to set a new standard for airline loyalty – more generous, more flexible, and easier to use, whether members are flying across the globe or just across the Islands. With the combination of Alaska and Hawaiian, we seized a rare opportunity to imagine how we could make the most generous loyalty program even better," stated Brett Catlin, vice president of loyalty, alliances, and sales at Alaska Airlines (NYSE:ALK [https://seekingalpha.com/symbol/ALK]).

For shareholders, the strategic integration elevates Alaska Airlines' (ALK [https://seekingalpha.com/symbol/ALK]) competitive positioning by leveraging an expanded network of over 1,000 global destinations and strengthening loyalty through industry-leading benefits. Enhanced partnerships, including more than 30 global airline partners and new non-airline collaborations such as with Lyft (LYFT [https://seekingalpha.com/symbol/LYFT]), are expected to increase member acquisition and retention, both crucial drivers of recurring revenue and long-term customer value.

Shares of Alaska Air Group (ALK [https://seekingalpha.com/symbol/ALK]) are down 11.8% on a year-to-date basis. The one-year anniversary date of the merger between Alaska Airlines (ALK [https://seekingalpha.com/symbol/ALK]) and Hawaiian Airlines is September 18.

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