updated 7/24/2008 12:24:55 PM ET 2008-07-24T16:24:55

Alaska Air Group Inc. will tighten the rules on its frequent-flier program, including a new $25 fee to use miles on other airlines.

The company, which operates Alaska Airlines and Horizon Air, said the following changes will begin for frequent-flier awards redeemed beginning Nov. 1:

  • Raising the number of miles needed to redeem a "Coach Saver" award ticket to 25,000 miles, instead of 20,000. It will also take more miles to get tickets for first class and "Peak" tickets, except for travel within the same state.
  • Adding a middle-level award level called "Choice" for tickets that will use fewer miles than unrestricted awards, but with more availability than the "Super Saver" awards.
  • Charging a $25 fee to redeem Alaska Airlines miles on partner airlines. There will continue to be no fee or fuel surcharge for travel on Alaska Airlines or Horizon Air.
  • Eliminating the earning of new mileage on tickets bought with a combination of cash and miles.

Separately, Alaska Air reported a 2nd-quarter profit of $63.1 million, or $1.74 per share, and said it would cut capacity and hinted at job cuts to offset rising fuel prices.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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