| Update: Alaska has updated its mileage earning page, and now no longer reflects this change. A spokesperson tells me that “there are changes coming to our Saver fares, but there are no immediate changes to earn rates on those fares.” So we’ll have to stay tuned for more details. In the meantime, you can find the original post below. |
Alaska Mileage Plan, which is the only major US frequent flyer program to still reward miles based on how far you fly rather than how much you spend, has just implemented a nasty no-notice devaluation. Thanks to @olouie for flagging this.
In this post:
Alaska cuts Saver fare mileage earning by 70%
Up until now, Alaska Mileage Plan has awarded at least 100% redeemable miles and elite qualifying miles for all fare classes when flying with Alaska. That policy has changed overnight, without any advance notice. Effective immediately, Mileage Plan is only awarding 30% redeemable and elite qualifying miles for tickets in the “X” fare class, which is Alaska’s Saver fare bucket.
Saver fares are Alaska’s version of basic economy, which comes with additional restrictions. These fares only allow you to assign seats at check-in, don’t allow any changes, etc. Fortunately Alaska is continuing to award a minimum of 100% miles on all other fare classes.
It’s also interesting to note that the same reduced mileage earning rate applies to flights marketed by Alaska and operated by American.
This change is disappointing but not surprising
I think it goes without saying that this is a disappointing change. The change was made without any advance notice. Alaska used to be good about providing notice about changes, but that’s not the case anymore.
Furthermore, Alaska has long marketed that when you fly with the airline “you’ll earn one mile for every actual mile flown.” I guess the airline needs to update its marketing in that regard, since this is no longer accurate. Ironically that’s still promoted on the page showing mileage earning rates, where you can also see the new 30% rates.
All that being said, the change isn’t necessarily that unreasonable, at least in the scheme of what airlines do. Several airlines offer reduced mileage earning for basic economy fares, so it has always been quite generous that Alaska hasn’t.
Interestingly American AAdvantage recently considerably cut mileage earning for Alaska Saver fares, from 25% to 10%. I suppose the writing was on the wall that Mileage Plan might make a similar change, to avoid too much of an arbitrage opportunity. As of 2023, AAdvantage also cut mileage earning rates for American basic economy fares by 60%.
Bottom line
Alaska Mileage Plan has cut mileage earning rates on Saver fares from 100% to 30%. This applies to both redeemable and elite qualifying miles, so it’s quite the devaluation. Alaska has long marketed how you earn at least one mile for every mile flown, but that’s no longer the case. It’s the end of an era for mileage programs in the United States, as there are no longer any programs awarding 100% miles for all fares.
What do you make of this Alaska Mileage Plan change?
I was once a Director in the company working on the loyalty program. Over the past 15 years I’ve watched Alaska move away from what made them unique to just being another airline.
They learned nothing from Virgin about customer experience. They made an enormous mistake joining OneWorld. I predict that in another 10 maybe 15 years, Alaska Airlines will be no more.
One thing I haven't seen: does this affect the minimum 500 miles earned per segment? Currently a 250 mile flight earns 500 miles regardless of class; does this now change to 75 miles?
I’ve got 640k miles on Alaska and I would rather see this happen to saver tickets than a devaluation for everyone. I agree that they can devalue the miles earned on these tickets further. Hard to imagine Alaska loyalists buying these tickets given you’ve got no advance seat assignment ability and few other MVP perks.
They will devalue by 50% or greater within a year or two. I wouldn't stock up and save or any alaska miles. It's a lock they destroy value soon.
Already devalued
Its the easiest way to make the P & L look great by reducing liability. This immediately improves financial ratios but in the long run it is exactly where Northwest, US Air, Continental, America West and so many other carriers ended up - with unhappy customers
Good. They should actually debit miles from your account for choosing this fare. Basic Economy should only be used by people who fly once or twice a year, don't have elite status or even a mileage number, a family of 8 that can only afford to go at the cheapest price. There should be ZERO earning for this fare.
You sound fun.
I am a blast. But basic economy is a joke and never should be bought except in very limited circumstances. Period. Especially by anyone who participates in a mileage program.
Honestly curious, can I get your reasoning why? I mean... now I won't book Saver Awards (because I do value the miles over the slightly cheaoer fare) but if I am flying a short flight by myself with no luggage why would I choose a more expensive ticket? I don't care where I sit, I don't have luggage, I have lounge access so I don't mind boarding late... now I have incentive to book a...
Honestly curious, can I get your reasoning why? I mean... now I won't book Saver Awards (because I do value the miles over the slightly cheaoer fare) but if I am flying a short flight by myself with no luggage why would I choose a more expensive ticket? I don't care where I sit, I don't have luggage, I have lounge access so I don't mind boarding late... now I have incentive to book a regular fare but what would be my motivation otherwise? And why should I never do it?
I fly Saver all the time. But I don't have Alaska status. So I'll grin and bear it the last row. Sure, it sucked flying back from Hawaii. But 3 * 60 each way for 'regular' economy is $360 total to spend elsewhere on vacation rather than choosing a seat for a family of 3.
It will suck to not earn 1 mile per mile flown though.
Delta doesn't offer any mileage earning from Basic Economy tickets and they are the most profitable US airline. From what I can tell, that hasn't hurt their business performance, so not surprising to see Alaska partially follow suit.
This article is incorrect, check the link. Saver fares are still at 100% on Alaska's website.
It was showing at 30% this morning.
Alaska is just making distinctions between their more valued customers and their less valued customers. It is a clap back against those who unfairly bought cheap tickets (which Alaska sold at cheap prices). Some people say that the cheap tickets don't pay for the cost of the transportation, to which I say that they must marginally pay for it or the airline would just leave those seats open and reap benefits of happier customers (the...
Alaska is just making distinctions between their more valued customers and their less valued customers. It is a clap back against those who unfairly bought cheap tickets (which Alaska sold at cheap prices). Some people say that the cheap tickets don't pay for the cost of the transportation, to which I say that they must marginally pay for it or the airline would just leave those seats open and reap benefits of happier customers (the rest of the customers would be happier to have more space in the cabins) and lower fuel burn. Of course, an open seat is an invitation for a non-revenue customer in the airline business, so even selling a seat for $10 may be more cost effective.
Hey Ben! If you follow the Policy link you included, the total mileage earning for Alaska-operated Saver (X) fares shows as 100%. Does it not?
I don't think it's unfair. I believe that the mileage earning should commensurate with the fare class, it's better than further devaluing the miles for everyone. Gone are the days when you were able to book a CX J for 50K miles and F for 60K to Hong Kong one way. Not only are there no J or F award seats on CX for any day in the future, the redemption miles for all other airlines have gone up as well.
In the last 10 years Alaska has continuously devalued their mileage plan and their elite benefits. When was the last time they added anything of value? 20 years ago? In addition to this, they have changed lounge policies to require a passenger with a paid first class fare to purchase a day pass to access the lounge. Not an upgraded fare, but a paid fare. They have increased the mileage reward amounts and made it...
In the last 10 years Alaska has continuously devalued their mileage plan and their elite benefits. When was the last time they added anything of value? 20 years ago? In addition to this, they have changed lounge policies to require a passenger with a paid first class fare to purchase a day pass to access the lounge. Not an upgraded fare, but a paid fare. They have increased the mileage reward amounts and made it nearly impossible to find a 'saver' mileage reward - and good luck trying to get a mileage upgrade. Where does it stop? Eventually I'm going to be looking for another airline, just like when I gave up 1K with United because of their poor service.
Alaska taketh away, but Alaska still giveth. You can get upgrades and even SWU on AA fares. You can redeem fewer miles for short flights and there's lots of sweet spots there especially with stopovers. All of those are positive changes in the last few years. They've also boosted premium cabin earnings on partners especially BA. You can fly more oneworld airlines now that they're a full alliance member. You can book Singapore Airlines awards...
Alaska taketh away, but Alaska still giveth. You can get upgrades and even SWU on AA fares. You can redeem fewer miles for short flights and there's lots of sweet spots there especially with stopovers. All of those are positive changes in the last few years. They've also boosted premium cabin earnings on partners especially BA. You can fly more oneworld airlines now that they're a full alliance member. You can book Singapore Airlines awards that aren't even bookable with Signapore's own miles. You can book nearly every QR flight (standard award levels) albeit at higher rates, which programs like AA can't book.
No other US airlines let you enter lounges on the basis of holding a paid/award first class ticket, so you're lucky to get in there at all. Not that Alaska lounges are that special anyway. The best domestic lounges continue to be Amex where available.
capital one lounge in DFW is better than every single Amex lounge, Not even close.
So sound off -- what's next in the devaluation game? I hate to ponder but...
Amen
Alaska also stealth devalued close in partner awards on AA, which now cost 20k for domestic.
Does this drastic cut affect Club 49 accounts as well? This is the only reason Alaska residents can afford to fly. If so, then I'm done with Alaska Air
I don’t want all these MVP elites and what not coming over to American now looking for good deals. Smh. I’m keeping my AA mileage balance bone dry for the inevitable.
There will not be any of us Alaska Elites leaving for AA program. If you know how to use it Alaska is far more valuable than AA as a program. I do fly AA when needed and do get upgraded regularly as an MVP G100K. I appreciate the partnership with AS and AA but you won't see anyone shifting their spend over to AA from AS. Plus no elites book saver fares.
@Matthew
Regarding your earlier post about Basic Economy ; not paying $40 more domestically or $170 internationally to book a main cabin fare never crossed my mind.
I don’t see the logic in booking basic economy unless someone has been instructed to do so by their company for cost cutting.
AS makes an announcement at the end of every flight to the extent of "Mileage Plan members earned at least XXX miles on this flight". Have to wonder how long before they change the announcement and it gets filtered down to all FAs.
"Mileage Plan members earned at least 1 mile on this flight."
Best comment. Thanks for the laugh.