Hawaiian Airlines and Alaska Airlines are rapidly merging in more ways than one each day, leaving many cardholders, including ourselves, wondering about the future of the Hawaiian Miles Mastercard. For current cardholders and future cardholders, this question is obvious. Should I keep my Hawaiian Airlines card as the renewal date approaches, or apply for a new card that is still being offered, or what?
We examine what we know now, share lessons learned from what happened to credit cards in past airline mergers, and offer practical advice for navigating these uncertain times.
Here are two strategies Alaska might follow. One happened between USAir and American Airlines, and the other happened between Alaska and Virgin America.
Lessons learned from the USAir and American Airlines acquisitions.
When American Airlines merged with US Airways in 2013, US Airways' credit card issuer, Barclays, immediately stopped issuing new cards. While Citi became the exclusive issuer of American Airlines' new credit cards, Barclays continued servicing existing accounts under the AAdvantage brand for many years. During the transition, Barclays cardholders retained their existing benefits, but new applications for Barclays-issued cards are no longer accepted. This setup allows for smoother integration between loyalty programs and credit card systems.
This precedent suggests a similar strategy could be deployed at Hawaiian Airlines and Alaska Airlines. Bank of America issues the Alaska Airlines VISA credit card and Barclays issues the Hawaiian Airlines Mastercard. Barclays may stop offering new Hawaiian Airlines cards as the loyalty programs are consolidated next year, leaving Bank of America as the sole issuer of the co-branded cards.
Travelers speculated that Bank of America might even acquire Barclays' Hawaii credit card portfolio to ease the transition. However, the state of Alaska has not confirmed details about the future or different benefits of the existing Hawaiian Airlines card. You can read more about the potential impact of the merger in our previous article, “How Hawaiian Airlines and Alaska Airlines Rewrote the Rules for Airline Benefits.”
Lessons learned from Alaska's Virgin America acquisition.
When Alaska Airlines acquired Virgin America in 2016, Virgin America Visa Signature® cardholders were able to continue earning and redeeming points through the end of 2017. However, all open accounts were closed on January 4, 2018, and cardholders were not automatically transferred to Alaska Airlines. credit card. Instead, Virgin America cardholders were encouraged to apply for the Alaska Airlines Visa Credit Card, issued by Bank of America.
This sets another precedent for how Alaska treats Hawaiian Airlines credit cards. Although cardholders may continue to use the card for a limited or long-term period, there is currently no guarantee that the account will automatically convert to the Bank of America Alaska Airlines Credit Card. Cardholders may be required to reapply for a new Alaska-branded card, and account closures and new credit applications may impact credit scores.
The move to Virgin America highlights the importance of staying informed as the details of Hawaiian Airlines and Alaska Airlines credit card programs evolve. Knowing what to expect helps cardholders make timely decisions to minimize problems and maximize benefits.
What Hawaiian Airlines cardholders should consider next.
For now, the Hawaiian Airlines card remains valid, Barclays continues to issue the card, and Hawaiian Airlines continues to promote the card, including a 70,000-mile bonus, online and in-flight. But now is an important time to look ahead and consider the implications.
Anyone who owns both a Hawaiian Card and an Alaska Card thinks carefully about the value they get from each. One commenter asked, “Is there any reason why we have to have both in a merger?” I'm thinking of canceling my Hawaiian Card. ”
Waiting for details is often the best strategy. The mid-2025 timeline gives cardholders time to plan. Closing your card early can negatively impact your credit score and limit your options.
What about the current Alaska Airlines Visa card?
The new premium cards below are touted as having great features, but it's unclear whether the current $95/year card will remain unchanged. The card also currently comes with a 70,000 mile bonus for signing up.
Where does Alaska's new premium card fit in?
Alaska Airlines recently introduced a $395 premium card with benefits such as first class companion fares. But early comments on BOH and other sites are giving mixed reviews. The associated Companion Benefit Certificate is a potentially valuable benefit for Hawaii travelers. Unlike Alaska's existing companion fare, this certificate can be redeemed for travel that includes the possibility of a premium cabin. For travelers who fly frequently between Hawaii and the mainland, or who connect to international destinations, this could offer new opportunities to save on luxury travel.
Another big feature is that it includes partner airlines such as Japan Airlines and Qantas. Being able to take advantage of these partnerships may make this card especially attractive for Hawaii residents planning a world trip. This feature may be especially useful for travelers who frequently redeem miles for international travel originating from Hawaii.
Additionally, this card earns you 3 miles per dollar spent on dining and international transactions. This unusual perk is likely to be popular among frequent international travelers as it provides added value for those spending money on travel-related categories.
We plan to get our hands on these cards as they become available and report back on how well they work and whether they deliver on their promise to Hawaii travelers.
While interesting, the skepticism expressed includes one commenter who said, “A luxury airline card is completely pointless unless you're sure you're only going to fly on that airline.” Others, however, emphasized that it was not clear how this new card would fit into the merger. Another commenter wrote: “The big question for me is what will happen to the Barclays card?” Until we know that, it's too early to choose something new. ”
This uncertainty highlights the importance of monitoring the latest information from both airlines before making decisions about switching or closing cards. To learn more about Alaska's new premium card and its potential impact, read Game Changer or Bust? New $395 Alaska/Hawaiian Card for Hawaii travelers.
Looking ahead: Readers and lessons learned from past mergers.
The merger between American Airlines and US Airways shows how quickly or slowly airline-branded credit card programs can change. Travelers need to stay informed and act strategically to maximize their profits.
Beat of Hawaiian will continue to provide exclusive updates on the Hawaii-Alaska merger and how it will impact Hawaii travelers and loyalty programs.
We look forward to your comments.
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