Card Review: The Alaska Airlines Business Credit Card
Photo credit: www.alaskaair.com
Alaska Airlines has consistently been ranked as one of the best airlines in the country, if not the world. The airfare is affordable but without the cheap-feeling cabin like those in Spirit or Frontier jets. Service has been compared to Delta and Southwest: Friendly and professional. In addition, the miles you earn are actually quite rewarding; according to the most recent TPG points valuation, one Alaska mile is worth 1.8 cents per point, ranking as one of the highest-ranked airline miles. As of right now, there are two Alaska credit cards, one personal and one business, issued by Bank of America. Both cards pretty much have the same benefits, but for those trying to stay under Chase’s 5/24 Rule, the business credit card is more appealing since BoA business credit cards do not count against it (for now). For an affordable annual fee, this card brings a lot to the table.
Current Bonus: Worth up to $1,000
The Alaska Airlines Business Card is currently offering a sign-up bonus of 40,000 bonus miles and Alaska’s Famous Companion Fare from $121 ($99 fare plus taxes and fees starting at $22) after spending $2,000 in the first three months of account opening. I personally value Alaska bonus miles at 1.5 cents per point, making the bonus miles valued at $600. On top of that, the companion fare can yield incredible savings when used strategically. If you were to travel from Newark (EWR) to Honolulu (HNL), the round-trip fare for one passenger comes out to $737.20. After applying a $99 companion fare fee and the taxes and fees from this particular ticket ($29.20), the total amount for two passengers comes out to $865.40, or an individual fare of $432.70 per passenger. For now, I’ll value the companion fare at $400, making the total sign-up bonus worth up to $1,000.
The Alaska Airlines Business Credit Card has a great sign-up bonus for a low annual fee to entice long-term cardholders. Photo credit: www.alaskaair.com
The Alaska Airlines Business Card earns 3 miles for every dollar spent directly on Alaska Airlines purchases and 1 mile for every dollar spent on all other purchases. As is common, most airline credit cards don’t have decent multipliers but offer great benefits to offset the lack thereof.
Annual Fee and Benefits
The Card has a low annual fee of $50 for the business cardholder and $25 per each employee card issued. Don’t underestimate the benefits of the Alaska Airlines Business Credit Card due to the low annual fee because it can return amazing value. The main benefit is the companion fare: With a flat rate of $99 and taxes and fees from $22, cardmembers receive one companion pass on their account anniversary that will pretty much act as a buy-one-get-one voucher. The best part of the companion fare is that there are no blackout dates.
Craving some Aloha spirit? Use the companion fare and save over $400. (737.20 + 99 + 29.20) / 2 = $432.70 in savings!
Photo credit: www.alaskaair.com
Similar to other airline co-branded cards, you will receive a free checked bag on Alaska flights for you and up to 6 other guests on the same reservation. If you do not have any lounge access and want to relax at an Alaska Lounge, you can get 50% off when you credit the day pass to the card. One Alaska Lounge day pass costs $50 sticker price, so you’ll be paying $25 per pass when purchasing with your card. Purchasing in-flight food and beverages or WiFi with the Alaska Airlines Business Credit Card will deduct 20% off those expenses as well. The card comes with secondary rental car insurance, lost luggage and trip delay reimbursement, purchase protection, extended warranty, and trip cancellation protection. There are no international foreign transaction fees on purchases outside of the U.S.
With Which Partner Airlines Can You Use Your Bonus Miles?
Alaska Airlines currently has 18 airline partners:
Moreover, Alaska Airlines originally scheduled to broaden its footprint by joining the Oneworld alliance in the summer of 2021. Due to recent events, the airline announced it will expedite the process and join Oneworld by the end of 2020 as the 14th member of the alliance. By partnering with more ubiquitous companies such as American Airlines, Alaska Airlines’ elite members can enjoy Admiral Clubs as well as other premium lounges offered by Oneworld partners. The only concern is a possible devaluation of Alaska miles, but we won’t know for sure if and how much until the integration happens.
Redemption Case Scenarios:
The sign-up bonus of 40,000 Alaska miles can be redeemed towards an economy round trip ticket from New York City to Hawaii, after paying $11.20 in taxes and fees. I personally value Alaska miles at 1.8 cents per point, making the redemption rate of the ticket a successfully higher 2.22 cents per point.
After redeeming for a round trip ticket from NYC to Honolulu, you will still have 5,000 Alaska miles to use for a future trip. Photo credit: www.alaskaair.com
Another great redemption is transferring Alaska miles to Fiji Airways to steal a direct, one-way economy ticket from San Francisco to Fiji at 40,000 Alaska miles and $18.10 in taxes and fees. Fiji Airways is a Oneworld alliance member and offers direct flights from SFO. $1,817.70 Fijian Dollars equal $858.32 USD, marking the redemption rate of ticket a higher than average 2.1 cents per point.
Don’t be intimidated; $1,817.70 Fijian Dollars are worth about $858.32 USD. Photo credit: www.fijiairways.com
A direct, one-way ticket from San Francisco to Nadi, Fiji could be the beginning of your dream vacation purchased with points. Photo credit: www.alaskaair.com
Who Should Get This Card?
Since this is a business credit card, it should not count towards the Chase 5/24 Rule. Though Bank of America has its own rule called the 2/3/4 Rule, business credit cards issued by BoA currently do not seem to be subject to it. Data points suggest that if you have an existing relationship with the bank, you have a higher chance of being approved, and having fewer hard inquiries in the last 6 months appears to help the decision as well. For tips to get approved for a business credit card, check out our article HERE.
Summary
Alaska Airlines’ business credit card is not a great points-earning card, much like its airline co-branded counterparts. However, earning miles with Alaska Air is much more rewarding since it is valued substantially higher than those of other domestic airlines. The card offers a companion pass that could easily balance out years’ worth of the low annual fee, and the sign-up bonus can be redeemed for various destinations, thanks to its association with the Oneworld alliance. In 2021, Alaska Airlines will become the 14th member of Oneworld, broadening its already established routes even further. Americans are still restricted to travel from many countries due to surging coronavirus cases, but if you were to earn the sign-up bonus now, your wallet will thank you when you decide to travel in the future.
