The skies might be getting a little less friendly, at least according to a recent lawsuit challenging the merger between Alaska Airlines and Hawaiian Airlines. Passengers are claiming the deal has led to higher prices and fewer flight choices, particularly affecting routes to and from Hawaii. What does this mean for your carefully accumulated credit card rewards and travel plans? Let's break it down.

Potential Impacts on Travel Rewards

Even if you haven't flown either airline recently, this situation can indirectly affect your rewards strategy. Reduced competition often leads to:

  • Devaluations: Airlines might feel less pressure to offer competitive award pricing, potentially increasing the number of miles required for flights. Keep an eye on award charts and redemption rates for Alaska Airlines Mileage Plan and HawaiianMiles programs, as well as partner airlines.
  • Reduced Availability: Fewer flight options mean fewer award seats available. Planning your trips further in advance and being flexible with your travel dates becomes even more crucial.
  • Higher Cash Fares: As the lawsuit alleges, fares could increase. This makes maximizing your points and miles through redemptions even more important to offset these higher costs. Consider using flexible points programs like Chase Ultimate Rewards, Amex Membership Rewards, or Capital One Miles to book travel through their portals or transfer to airline partners.

Protecting Your Points and Miles

Now's the time to proactively manage your rewards:

  • Diversify Your Portfolio: Don't put all your eggs in one basket. Accumulate points in multiple programs to give yourself more options and flexibility.
  • Monitor Redemption Rates: Regularly check award charts and redemption values to identify potential devaluations. Websites like AwardHacker can help you compare redemption options.
  • Use It or Lose It (Strategically): While hoarding points might seem tempting, it’s generally better to redeem them for valuable travel experiences sooner rather than later. Waiting too long risks devaluation.
  • Consider Transfer Bonuses: Keep an eye out for transfer bonuses from credit card programs to airline partners. These can significantly boost the value of your points.
  • Explore Alternative Routes and Airlines: If flight availability on Alaska or Hawaiian is limited, consider flying alternative routes or using partner airlines. For example, you can use Alaska Mileage Plan miles on airlines like American Airlines or British Airways.

Credit Card Strategies for Navigating Uncertainty

  • Earning Flexible Points: Focus on earning flexible points with cards like the Chase Sapphire Preferred, American Express Gold Card, or Capital One Venture X. These points can be transferred to various airline and hotel partners, giving you more flexibility.
  • Leveraging Travel Credits: Many premium travel credit cards offer annual travel credits that can help offset the cost of flights and other travel expenses. Use these credits to reduce your out-of-pocket costs.
  • Utilizing Travel Protections: Some credit cards offer travel insurance and other protections that can help you in case of flight delays, cancellations, or other travel disruptions. Review your card's benefits guide to understand the coverage offered.

Stay Informed

Keep an eye on developments in the Alaska-Hawaiian merger lawsuit. News outlets specializing in aviation and travel will provide updates on the case's progress and potential impacts on the industry. This information will help you adapt your rewards strategy as needed.

Takeaway: The potential disruption caused by the Alaska-Hawaiian merger lawsuit highlights the importance of a diversified and flexible travel rewards strategy. By earning flexible points, monitoring redemption rates, and staying informed, you can protect your points and miles and continue to enjoy valuable travel experiences.