UPDATE: Did Alaska Tip Its Hand on Elite-Qualifying for 2022?
UPDATE 6/11/2020: Since this post was written, we’ve learned Alaska’s elite-qualifying plans the remainder of 2020. Check out our latest post on the subject.
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Alaska Air Group announced its first quarter earnings amidst the Covid-19 pandemic. As expected, the airline lost plenty of money and is primed to sustain bigger losses in the second quarter. But with a reported net loss of $102 million, the numbers are better than expected.
For frequent Alaska Airlines travelers, it was good to learn the airline has plenty of cash on hand. But another interesting tidbit stood out for me – one that applies to elite status earning:
“[The airline has] Extended elite Mileage Plan status to all members until Dec. 31, 2021, and offered for all 2020 qualifying miles to apply to 2021 status achievement.” (emphasis mine)
The wording is a bit clunky, but my reading of this means that every mile earned in 2020 will rollover into the following year. And thus, Mileage Plan members would have a nice head start toward earning status in 2022. Essentially, your mileage counter would not reset to zero at year’s end.
UPDATE: Alas, it’s just a mistake. A spokesperson for Alaska Airlines tells Travel Codex that the wording was mistaken. The message they’ve relayed to the public is correct:
Is there another way to read this statement? I can’t think of one. Because if the company is saying that miles earned in 2020 count toward status in 2021, that’s not news. That’s just how loyalty programs work.
But, the message has one key difference than what’s thus far been communicated to the public:
“Any elite-qualifying miles earned between January 1, 2020 and April 30, 2020 will be rolled over to 2021 to give you a head start on earning your status for 2022.”
The difference is in the dates. In its communication with Mileage Plan members, Alaska has only announced an elite-qualifying rollover for miles earned between January 1st and April 30th. In their statement to investors, it appears that the rollover would count for miles earned during all of 2020. That’s eight additional months toward earning status – and those months are when more and more of us will be returning to the skies.
What Alaska Should Do Next
Alaska has one of the industry’s most generous loyalty programs, and their treatment of customers during this pandemic has been top notch. They’ve already extended status to members for another year, they’ve given customers a chance to earn a 50% bonus on elite-qualifying miles with all flights through May 31st (must sign up), and at minimum, they are rolling over all miles earned through April 30th to count toward elite-status qualifying in 2021.
Alaska’s statement to investors makes me think the airline has already decided its plans going forward. The airline has already promised MVPs that there will be additional earning opportunities in 2020 to boost status in 2021. Rollovers would be a simple and effective way to achieve that – a win for customers and the airline alike.
Alaska’s Mileage Plan MVPs already have their status assured for 2021, even if they don’t fly Alaska at all in 2020. This may be the best time ever for frequent travelers to apply for a status match with another airline. Delta Air Lines shares a hub with Alaska at Seattle-Tacoma International Airport (SEA), and it would be tempting to see how the other half lives.
But should Alaska roll over elite-qualifying miles into 2021, then it would be a particularly good time for entry-level Mileage Plan MVPs to go for mid-tier status with MVP Gold instead, once travel resumes. Or for Gold members to work toward top-tier MVP Gold 75K. In other words, loyal Alaska travelers would have extra incentive to stick with Alaska. For what it’s worth, Delta has already decided to rollover elite-qualifying miles (MQMs) in its SkyMiles program. At this point, Alaska would just be keeping pace with a strong competitor in its fortress hub.
Bottom Line
It’s quite possible It turns out this was all a misstatement. In that case, Alaska has not announced plans isn’t going to rollover miles earned in all of 2020, and the earnings report should have simply said they were rolling over miles earned through April 30, 2020. After all, that’s all the Mileage Plan members have been told. Alaska may have other plans, from credit card spend bonuses to extending its 50% elite-qualifying promotion.
But I like the idea of rolling over customers’ elite-qualifying miles into 2021. It’s a simple approach, and it strengthens the relationship Alaska’s customers have with the airline. I wouldn’t be surprised to see it, especially after today’s earnings summary. We’ll keep you posted.