What the Alaska Airlines credit card offers and who it makes sense for
The Alaska Airlines credit card is a co-branded card issued by Bank of America that earns miles on purchases and gives you benefits tied to Alaska Airlines travel. The card comes in two versions: the Alaska Airlines Visa Signature and the Alaska Airlines Visa Signature Secured (for people building credit). You earn 3 miles per dollar on Alaska Airlines purchases, 1 mile per dollar on everything else, and get a companion fare discount once per year. Whether it's worth carrying depends almost entirely on how often you fly Alaska Airlines and whether you value the specific perks over paying an annual fee.
The main cost is the annual fee, which varies by card version. You also need to decide whether the miles you earn will actually get you flights you'd otherwise pay for, or whether they'll sit unused. The card is most valuable if you live in Alaska, the Pacific Northwest, or somewhere Alaska Airlines flies regularly from your home airport.
Key Takeaways
- The Alaska Airlines card charges an annual fee and earns miles at different rates depending on where you spend: 3 miles per dollar on Alaska Airlines purchases and 1 mile per dollar everywhere else.
- You get a companion fare discount certificate each year, which can save you money on a second ticket if you book a paid flight on Alaska Airlines.
- The card is most useful if Alaska Airlines is your primary carrier or if you live somewhere Alaska Airlines has frequent service.
- Miles don't expire as long as your account stays open and you have account activity at least once every 24 months.
- If you rarely fly Alaska Airlines or don't have a way to use the annual benefits, the annual fee makes the card a net loss.
Annual fee and what it costs you to break even
The Alaska Airlines Visa Signature card has an annual fee that you pay once per year. The exact amount depends on when you open the account and current Bank of America pricing, so check the card's terms before you explore. You also get a statement credit or other benefit in some cases, which reduces the effective cost.
To know whether the card pays for itself, you need to calculate what the companion fare discount is worth to you. If you book one paid Alaska Airlines flight per year and use the companion discount on a second ticket, that discount typically saves you between $50 and $200 depending on the route. If that savings is larger than the annual fee, the card breaks even. If you don't fly Alaska Airlines at least once or twice per year, the annual fee is unlikely to be worth it.
How the companion fare discount works
The companion fare discount certificate arrives in your account once per year, usually around your card anniversary. You use it by booking a paid Alaska Airlines flight for yourself, then explore the discount to a second ticket for a companion on the same flight. The discount is a percentage off the base fare, not a flat dollar amount, so it saves you more on expensive routes than on cheap ones.
The certificate is only good for Alaska Airlines flights, not for partner airlines. You have to book the paid ticket first, then add the companion ticket with the discount applied. If you don't use the certificate in a calendar year, it expires — you don't get to roll it over. The certificate also comes with restrictions: you can't use it on basic economy fares or on flights that are already discounted.
Miles earning rates and how to use them
You earn 3 miles per dollar when you spend with Alaska Airlines directly — that includes airfare, seat upgrades, and baggage fees paid to Alaska Airlines. You earn 1 mile per dollar on all other purchases: groceries, gas, restaurants, utilities, everything else. There are no bonus categories beyond Alaska Airlines, so if you're comparing this card to other travel cards, the earning rate outside of Alaska Airlines spending is lower than many competitors.
Miles are redeemable for Alaska Airlines flights, seat upgrades, and some partner airline flights through Alaska Airlines' partnership program. You can also transfer miles to hotel and car rental partners, though the exchange rate is usually not favorable. Most people use miles for flights. The number of miles required for a flight varies by route and how far in advance you book — short regional flights might cost 5,000 miles, while cross-country flights can cost 25,000 or more.
Miles don't expire as long as your account has activity at least once every 24 months. Activity includes earning miles, redeeming miles, or even just keeping the card open and active. If your account goes dormant for more than 24 months, Alaska Airlines can close it and forfeit your miles.
Comparing this card to other travel credit cards
If you're deciding between the Alaska Airlines card and a general travel card like the Chase Sapphire Preferred or the American Express Gold, the choice depends on your travel patterns. General travel cards earn points on all purchases and let you redeem for any airline, which gives you more flexibility. They also tend to have higher annual fees but more premium benefits like travel credits and lounge access.
The Alaska Airlines card is narrower: it's built for people who fly Alaska Airlines regularly and want to maximize value on that specific airline. If you fly multiple carriers or don't have a home airport served by Alaska Airlines, a general travel card will likely give you more value. If Alaska Airlines is your primary carrier, the Alaska card's 3x earning on airfare purchases and the annual companion discount can outweigh the narrower earning structure.
You should also compare the Alaska Airlines card to straightforward paying cash for flights and using a flat-rate cash-back card instead. If you fly Alaska Airlines twice per year and the companion discount saves you $100, but the annual fee is $75, your net benefit is $25. A 2% cash-back card on the same spending might give you more value if you're not a frequent Alaska Airlines customer.
When the Alaska Airlines card makes financial sense
The card is worth keeping if you meet at least one of these conditions: you fly Alaska Airlines at least twice per year and will use the companion discount, you live in Alaska or the Pacific Northwest where Alaska Airlines has dense service, or you spend enough on Alaska Airlines purchases (flights, upgrades, baggage) that the 3x miles earning offsets the annual fee.
Do the math before you open the account. Add up how many Alaska Airlines flights you took in the past year. Multiply that by the average companion discount value (usually $75 to $150 per use). If that number is larger than the annual fee, the card pays for itself on the companion discount alone. Any miles you earn on top of that are a bonus.
If you don't fly Alaska Airlines regularly, the card is not worth the annual fee. No amount of miles earning on other purchases will make up for an unused companion discount and a fee you're paying for benefits you don't use.
How to decide if you should close the card
If you've had the card for a while and your travel patterns have changed, it's worth reassessing. If you used to fly Alaska Airlines regularly but don't anymore, closing the card stops the annual fee from charging. There's no penalty for closing a credit card, and it won't significantly damage your credit score as long as you have other open accounts.
Before you close it, use any remaining companion fare discount if you have one. Check your account to see when the certificate expires. If you have miles in your account, decide whether you want to redeem them for a flight before closing — once the account closes, you lose access to the miles after a certain period.
If your travel patterns might change back — for example, you're moving but might return to Alaska in a few years — you could downgrade to a no-annual-fee Alaska Airlines card instead of closing the account entirely. This keeps your account open and your miles active without paying the annual fee.
Frequently Asked Questions
Do I have to use the companion fare discount every year or I lose it?
Yes. The companion fare discount certificate expires at the end of the calendar year if you don't use it. You can't carry it over to the next year. If you know you won't fly Alaska Airlines in a given year, you're paying the annual fee for a benefit you won't receive.
What happens to my miles if I close the card?
Your miles stay in your Alaska Airlines account as long as you have account activity at least once every 24 months. Closing the card doesn't when ready delete the miles, but if your account becomes inactive, Alaska Airlines can close it and forfeit them. You can keep the miles active by redeeming them or transferring them to a partner before closing the card.
Can I use the companion discount on basic economy fares?
No. The companion discount doesn't work on basic economy or other restricted fare types. You have to book a standard economy or higher fare to use the discount. This limits its usefulness on budget airlines or heavily discounted routes.
Is the Alaska Airlines card better than a cash-back card if I don't fly much?
Probably not. If you fly Alaska Airlines fewer than twice per year, a flat-rate cash-back card will likely give you more value. A 2% cash-back card earns money on every purchase, while the Alaska card's benefits are concentrated on a single airline you don't use often.
Can I get the annual fee waived?
Bank of America may waive the first-year annual fee as a promotional offer, but you'll owe it in subsequent years. You can call Bank of America and ask about a waiver if you've been a long-time cardholder, but there's no may provide. Your best option is to close the card before the annual fee posts if you decide it's not worth it.