In the modern U.S. airline business, co-branded credit cards are much more than a minor source of income. Co-branded credit cards are the most lucrative segment of the airlines' operations, and the leadership at Alaska Airlines has clearly recognized this fact for quite a while. The latest news from Alaska shows that the airline is planning on putting even more effort in the cards business.

Specifically, Alaska Air Group has announced a multi-year extension of the co-branded credit card partnership between the company and Bank of America, which involves Alaska's Atmos Rewards loyalty program as well as the program of the airline's sister carrier, Hawaiian Airlines. The renewed relationship has already been in place for decades, which means that the U.S. airline and bank have had the longest-running partnership in the industry. The expansion of that partnership implies a number of significant changes for cardholders; however, the exact nature of those changes has not been revealed yet.

The Details of the Partnership Renewal

Typically, corporate announcements are designed to provide just enough information to create hype. In this particular case, we got confirmation of some general trends and directions; however, any concrete details have not been revealed yet.

The expanded partnership includes three key components:

• Increased investment in Atmos Rewards and Alaska/Hawaiian lounges
• New and refreshed co-branded credit cards
• Improved technology and overall cardholder experience

According to Alaska CEO Ben Minicucci, Bank of America was a "foundational partner" to Alaska's growth and that the goal was to build "the airline industry's most generous and valuable loyalty program." Interestingly, in 2025 the remuneration of the co-branded card portfolio increased by 10%, largely due to the launch of Atmos Rewards and the premium Atmos Rewards Summit Card. Therefore, the renewed partnership is likely to prove itself economically sound.

However, when it comes to the timeline of the changes, no one can say anything concrete. According to the company, cardholders will be notified about the changes when it is appropriate to do so. Clearly, the plans for the future involve tangible changes; however, we still don't know what exactly is in the store for us.

Two Likely New Cards That Will Be Released

It is safe to assume that the changes in the Atmos Rewards lineup will include two new co-branded credit cards.

Firstly, since every other airline offers its loyal customers a high-end co-branded card, providing them with unlimited lounge access, it would be reasonable for Alaska to follow suit. At the moment, the most premium Atmos Rewards card that the company has to offer is Atmos Rewards Summit Card; and the thing that separates it from its rivals is that it only gives 8 passes to Alaska lounges per year. So, the launch of a card that would give its holder an access to Alaska lounges will be logical and consistent with the atmosphere of premium rewards that Atmos creates.

Secondly, the current Atmos Rewards lineup lacks a business-oriented co-branded credit card. Thus, it would be natural for the company to fill in this gap with a new product tailored specifically for corporate cardholders.

Potential Changes for Existing Cardholders

Aside from launching entirely new products, the plans to release refreshed co-branded credit cards will likely involve certain updates for the current lineup. The enhanced card experience will probably imply such aspects as earning rate improvement, travel perks enhancement, annual fee adjustment, etc. Taking into account the fact that the renewed partnership will be associated with increased investment in the Alaska/Hawaiian lounges, one might reasonably speculate that cardholders will get some lounge-related benefits in exchange. Furthermore, the improved card experience might imply such features as better integration of cards with the company's mobile application, improved functionality for rewards redemption, etc.

One Important Limitation of the Partnership Extension

When it comes to the new co-branded credit cards, it should be noted that one important factor limits Alaska's options when designing new cards. In particular, Bank of America is not one of the major providers of co-branded credit cards such as American Express, Chase, or Citi. What does it mean? Firstly, it means that the new cards issued by Alaska and Bank of America are unlikely to be accepted anywhere outside of the U.S. (and perhaps Canada).

Secondly, Bank of America does not have a transferrable points currency, so Atmos Rewards points cannot be transferred to partners' currencies. Recently, such programs as American and Citi launched an initiative to enable transfers between different airlines and banks. This feature increases the utility of cardholders' points; however, Bank of America cannot offer this type of perks. Therefore, when making decisions about choosing a card, one should think carefully about the way they want to use Atmos Rewards points.

Why Is Alaska Considered a Loyalty Program Overachiever?

The reputation of Alaska's loyalty program as a high-reward, flexible loyalty program is justified. First of all, the airline operates a relatively small route network in comparison to the Big Three airlines. However, Atmos Rewards and Mileage Plan loyalty programs are considered among the best in the country.

In addition, the acquisition of Hawaiian Airlines resulted in further growth of Atmos Rewards and made the program more attractive to West Coast travelers. Finally, the partnership with Bank of America, as a single provider of co-branded cards for Alaska and Hawaiian Airlines, creates a solid foundation for future growth of the loyalty program.

Conclusion

The extended partnership between Bank of America and Alaska Airlines is positive news for Atmos Rewards cardholders. The fact that the renewed partnership will lead to new co-branded credit card releases and enhanced loyalty program experience is a promising development, and we can only guess what the airline will be able to offer to its customers soon. The most obvious gap in the Atmos Rewards co-branded card lineup was the lack of a card with unlimited access to Alaska lounges; however, a more developed business card portfolio would be nice to see as well.

We still do not know when exactly new cards will be launched; however, the growth of co-branded cards remuneration in 2025 and the multi-year duration of the partnership suggest that it may be sooner than later. For cardholders who are interested in Atmos Rewards points, it is worth waiting for the new developments in this area.