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Alaska Air Group · ALK (NYSE) · FY2025

Alaska Atmos Rewards by the numbers

Atmos Rewards is small next to the big three but proportionally bigger: US$2.3 billion of loyalty revenue is about 16% of Alaska Air Group's revenue, and the program made more than the airline did in 2025, when group net income was just US$100 million.

Written and reviewed by the Points Plug team. Last reviewed .

What Alaska Air Group reports

Loyalty revenue
US$2.3 billion
2025: US$1,427m of loyalty passenger revenue plus US$855m of loyalty program other revenue (2024: US$1,180m plus US$733m), about 16% of total revenue, up 12%.
Cash from card and other partners
+19% year on year
Co-brand card remuneration grew 10% in 2025 and 19% year on year in the second quarter of 2026; the dollar amount is not disclosed separately.
Deferred revenue for unredeemed miles
US$3.4 billion
Loyalty liability at 31 December 2025 (US$1,711m current, US$1,722m non-current), up from US$3,256m, which included US$537m of HawaiianMiles acquired in 2024.

Card partners and deals

  • Bank of America issues the Atmos Rewards cards, including the Summit Visa Infinite launched in August 2025. In April 2026 the partnership was extended "through the mid-2030s" with Bank of America becoming the single issuer.
  • Hawaiian cards from Barclays and Bank of Hawai'i were still listed in the 2025 10-K.
  • Alaska cites about US$150 million of incremental profit from the extended card deal in its "Alaska Accelerate" plan.

Financing: US$743m of variable-rate loyalty term loans and US$1,250m of fixed-rate loyalty notes, both due through 2031, were outstanding at 31 December 2025, out of US$5.3bn of total debt.

How the miles are accounted for

  • In 2025 Alaska issued US$1,779m of points and recognised US$1,347m in passenger revenue and US$255m in loyalty other revenue.
  • The policy wording was not reachable in the XBRL pages read; the structure matches the other US carriers, with deferral at redemption value.
  • Members are not disclosed.

What it means

The Hawaiian acquisition added US$537 million of HawaiianMiles liability in 2024 and a second card portfolio. Merging both into Atmos Rewards in 2025 and handing the whole portfolio to Bank of America in April 2026 is expected to add about US$150 million of profit a year, a big number for a company that made US$293 million adjusted in 2025.

Alaska carries about US$2 billion of debt secured on the program, due through 2031, so the loyalty cash flows are already spoken for in part. Card remuneration growing 19% a year is what keeps that comfortable.

For members the story is that Alaska needs the program to grow: it is adding earning partners, letting members pick how they earn from late 2026, and charging partner award booking fees, all of which are ways to make a US$3.4 billion liability pay for itself.

What it means for your Alaska Atmos Rewards balance

A program that earns more from selling miles to banks than from flights has an incentive to keep issuing them, and the deferred revenue line is the airline's own estimate of what an average outstanding mile will cost it to honour. Compare that with published valuations and with what Points Plug pays to see where your balance stands.

Alaska Atmos Rewards finances: FAQ

How much does Alaska earn from Atmos Rewards?
US$2.3 billion of loyalty revenue in 2025, about 16% of the group's total, up 12% on 2024.
Who issues the Atmos Rewards credit card?
Bank of America, under a deal extended in April 2026 through the mid-2030s that makes it the single issuer for the combined Alaska and Hawaiian program.
Does Alaska have debt secured on its miles?
Yes, about US$2 billion of loyalty term loans and notes due through 2031.

Sources

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