Hawaiian Airlines and Alaska Airlines merger: Frequent flyer miles will be exchanged at a 1:1 ratio, with additional details about the loyalty program disclosed.

In August, the Department of Justice chose not to block the proposed merger between Alaska Airlines and Hawaiian Airlines. This announcement followed eight months after the carriers revealed the $1.9 billion deal. Shortly after, the Department of Transportation made significant progress in approving the airline merger.

For fans of Hawaiian Airlines' loyalty program, what benefits can be expected from this merger? While Alaska Airlines intends to maintain Hawaiian Airlines as a distinct brand, both programs will function under a unified loyalty program.

What implications does this have for members of HawaiianMiles and Alaska Airlines Mileage Plan?

Although the merger is pending official approval from the DOT, the agreement between the airlines and the DOT was unveiled today. This document provides loyal members with insights into the future joint program and clarifies the fate of their earned miles and elite status.

Read on to discover more about what we currently know regarding the merger between Alaska Airlines and Hawaiian Airlines, and what we hope to learn about the future of this combined program.

Insights on the Alaska Airlines and Hawaiian Airlines merger

A Securities and Exchange Commission document submitted by Hawaiian Airlines in December 2023 indicates that the loyalty programs of both airlines will merge into a single shared program, allowing your miles to transfer. New details have emerged about how these combined loyalty programs will function once the merger is finalized.

Will your Hawaiian Airlines miles convert to Alaska Airlines miles at a 1:1 ratio?

The agreement document confirms that members of HawaiianMiles and Alaska Airlines Mileage Plan will indeed be able to transfer their miles between the two programs at a 1:1 ratio during the transition period, ahead of the launch of the new loyalty program. This transfer will start at the end of the month.

This news is particularly advantageous for those holding unused HawaiianMiles. According to TPG's September 2024 valuations, Mileage Plan miles are worth 1.5 cents each, while HawaiianMiles are valued at 0.9 cents. By transferring HawaiianMiles to Alaska's loyalty program at a 1:1 ratio, you can enhance the value of your rewards.

Once you transfer your HawaiianMiles to the Mileage Plan, you can book award tickets within the Oneworld alliance, including flights with American Airlines.

Keep in mind that once the new loyalty program is established (with more details expected in mid-2025), your HawaiianMiles and Mileage Plan miles will be combined into that program at a 1:1 ratio.

Moreover, the agreement document specifies that miles will not expire.

What will occur if you possess elite status with either HawaiianMiles or Alaska Airlines Mileage Plan?

If you currently enjoy elite status with Hawaiian Airlines, it will be transferred as well. The agreement states that "[Hawaiian Airlines and Alaska Airlines will] match and maintain equivalent status levels for the rest of the program year" for both HawaiianMiles and Alaska Airlines Mileage Plan members.

Furthermore, the agreement document indicates that the combined airline will "match or enhance status and associated benefits as necessary to ensure that members of both existing loyalty programs are treated equitably regarding status, including by matching or increasing elite status in the new joint loyalty program for the remainder of the program year."

As per Alaska Airlines' website, your status will be matched in the following ways:

Additionally, the airlines are currently giving loyalty members from both programs the opportunity to merge their elite qualifying miles to attain elite status.

At this moment, neither Hawaiian Airlines nor Alaska Airlines has detailed how a member's status will align within the unified loyalty program, nor have they provided specifics on the elite status benefits of this combined program.

According to the Securities and Exchange Commission document submitted by Hawaiian Airlines in December 2023, "it is anticipated that [the elite tiers] will provide similar or enhanced benefits compared to what you currently enjoy."

Another advantage of the merger is Hawaiian Airlines' entry into the Oneworld alliance. Currently, Hawaiian is not affiliated with any major airline alliance, while Alaska is a member of Oneworld. This merger will not only grant elite status members added Oneworld benefits, such as priority check-in and bonus miles, but it will also allow Oneworld travelers to earn and redeem miles when flying with Hawaiian.

"Once the integration is finalized, customers of Hawaiian Airlines will benefit from the highest-value customer loyalty program in the industry, allowing them to earn and redeem miles and enjoy elite benefits across all Oneworld Alliance airlines, enhanced global lounge access, and advantages from the combined program's credit card," stated the SEC document.

Elite members of Alaska Airlines Mileage Plan currently hold the following Oneworld status levels:

• MVP corresponds to Oneworld Ruby
• MVP Gold corresponds to Oneworld Sapphire
• MVP Gold 75K corresponds to Oneworld Emerald
• MVP Gold 100K corresponds to Oneworld Emerald

Details regarding award tickets for the joint loyalty program between Hawaiian Airlines and Alaska Airlines

The agreement document specifies that the combined program will not charge change or cancellation fees for award tickets when traveling with either airline.

Please note that this does not include Saver fare tickets or partner award flights.

What we are curious about regarding the merger between Alaska Airlines and Hawaiian Airlines

While some information about the future of the Alaska-Hawaiian loyalty program has been revealed, there are still several unanswered questions we have about the merger.

Will American Express Membership Rewards cease to have Hawaiian Airlines as a transfer partner?

Earlier this year, Bilt Rewards ended its partnership with Hawaiian Airlines but retained Alaska Airlines. With the proposed merger, should American Express cardholders anticipate losing Hawaiian as a transfer partner soon?

Currently, Amex points can be transferred to Hawaiian Airlines at a 1:1 ratio. This means Amex cardholders can convert their points into Alaska Airlines Mileage Plan miles. If you transfer your Membership Rewards points to Hawaiian and subsequently move those HawaiianMiles to Alaska Airlines Mileage Plan (before the joint loyalty program is established), you effectively gain access to a transfer partner.

What will become of Hawaiian Airlines' cobranded credit cards?

Barclays currently issues two cobranded credit cards for Hawaiian Airlines: the Hawaiian Airlines® World Elite Mastercard® and the Hawaiian Airlines® Business Mastercard®. Both cards provide two free checked bags on Hawaiian flights when used to purchase eligible tickets from the Hawaiian Airlines website, along with earning 3 miles per dollar on Hawaiian purchases, 2 miles per dollar on gas, dining, and eligible grocery store transactions, and 1 mile per dollar on all other purchases.

According to the 2023 SEC document, Hawaiian will "continue to accept new applications." So, can cardholders expect these cobranded cards to stick around? Will they eventually be phased out, or might new benefits be introduced that apply across the combined route network?

The details for the Hawaiian Mastercard and Hawaiian Business Mastercard have been gathered independently by Dinogo. The information presented on this page has not been reviewed or endorsed by the card issuer.

How many miles are required for award flights on Hawaiian Airlines?

While many leading airlines utilize dynamic pricing for awards, Hawaiian Airlines and Alaska Airlines still rely on award charts. However, Hawaiian's award chart takes various factors into account, including your flight's region and the season (busier travel periods will demand more miles). Certain travelers, such as Pualani Platinum, Pualani Gold, and Premier Club members, along with select Hawaiian Airlines cardholders, may also qualify for reduced award rates.

In contrast, Alaska Airlines employs distance-based award charts for its own flights and distinct award charts for partner airlines, all of which indicate "starting at" award prices (actual rates can be significantly higher, sometimes two or three times more, based on the flight).

How will Hawaiian-operated flights fit into the new structure? With Alaska intending to maintain Hawaiian as a distinct brand, will these flights be influenced by partner pricing, or might Alaska introduce new regions (and their respective pricing) to its own award chart? Alternatively, will Hawaiian retain its existing award chart?

Currently, neither Hawaiian nor Alaska has outlined how award flights will function within the integrated loyalty program.

What will become of Hawaiian Airlines' other partnerships?

Although Hawaiian Airlines is not part of a major alliance, it has collaborations with several carriers, including Virgin Atlantic, JetBlue, and Japan Airlines. Additionally, travelers can earn (and redeem) miles with American Airlines, Delta Air Lines, and United Airlines on interisland flights operated by Hawaiian Airlines.

While these partnerships may not hold significant value, the impact of the merger and the integration of the loyalty programs remains uncertain.

As previously noted, Hawaiian Airlines will be joining the Oneworld alliance.

In summary

In the past year, we've observed various airlines revamping their loyalty programs. For instance, Finnair has adopted British Airways Avios for its rewards system while still maintaining control over its elite status tiers and award chart.

With the integration of their loyalty programs, the specifics of this new joint initiative are yet to unfold. Nonetheless, with a 1:1 transfer of miles between the two programs and a commitment to preserving elite status for frequent flyers, we are optimistic about the future of this merger.