Attracting affluent customers has become a top priority for credit card issuers. To capture this segment, Alaska Airlines is launching a luxury credit card and ramping up its loyalty program.
The airline’s Atmos Rewards Summit Visa Infinite card, a co-branded effort with Bank of America, carries a $395 annual fee and offers benefits like discounted fares, $50 travel delay vouchers, and access to airport lounges.
Alaska Airlines is also expanding its frequent flyer program, Atmos Rewards, to include the newly acquired Hawaiian Airlines. The program will allow travelers to choose how they earn points—based on miles flown, price paid, or the number of flights taken.
“2025 is the year for premium cards,” said Ben Danner, Senior Credit and Commercial Analyst at Javelin Strategy & Research. “We’ve seen major launches from American Express, Chase, Citi, Barclays (with JetBlue Airways), and now a premium co-brand from Alaska Airlines issued by Bank of America. The quest is to attract low-credit-risk, high-spend customers—a good demographic to have in the case of an economic downturn.”
Sparking a Surge
Chase and American Express have long been major players in the premium card market, but recent revamps of their products have sparked a surge in luxury card launches. Chase’s Sapphire Reserve and Amex’s Platinum card now offer an extensive range of benefits, including travel and dining perks. Not long after, Citi entered the market with the launch of its Strata Elite card.
With these new offerings, annual fees have climbed sharply. Sapphire Reserve carries a $795 fee, the Premium card cost $695 per year, and Strata Elite comes in at $595 annually. Still, each issuer insist that the value of their benefits far outweighs the price.
Following the lead of the industry’s top players, JetBlue launched a premium credit card with Barclays earlier this year, which comes with an annual fee of $499.
High Scores, High Stakes
All of these premium card launches target savvy, disciplined consumers—most of whom have credit scores over 720. In today’s environment of rising inflation and mounting credit card debt, these financially stable customers have become especially valuable.
While this is the customer base Alaska Airlines hopes to capture, the premium card market is rapidly becoming crowded.
“Economics aside, these kinds of cards transform the brand image into a more premium feel with exclusive offers, lounge access, and perks,” Danner said. “The Alaska Airlines plan expectedly follows the same recipe for success by using a loyalty tier program and points-based reward plan. The $395 annual fee will compete directly with co-brands like the Delta SkyMiles Platinum ($350) and United Quest Card ($350).”
