The Business of Loyalty: Alaska and American Drastically Reduce Their Frequent Flyer Partnership


Skift Take

In recent years, many Alaska Airlines frequent flyers liked to fly American, because they would receive loyalty benefits even when flying the competition. But starting next year, that perk will end, and that's not great news for road warriors.

Editor's Note: Grant Martin, writer of the Skift Business of Loyalty newsletter, is on vacation. Today, airline business reporter Brian Sumers takes over, writing about how Alaska Airlines and American have cut many of their reciprocal loyalty benefits.  When Alaska Airlines acquired Virgin America last year, regulators feared the combined entity might have too much power — not because it would be so large — but because of its commercial partnerships with American Airlines and Delta Air Lines. But less than a year and a half later, that's nearly moot. Having already cut its frequent flyer relationship with Delta, Alaska said earlier this month it is drastically reducing its collaboration with American. With the changes, Alaska and American will act more like competitors than partners. Beginning in January, customers will only earn Alaska frequent flyer miles on American's domestic flights if they book a codeshare through Alaska. Whi