Alaska Airlines Visa Credit Card hikes annual fee to $95 – is it still worth it?

Alaska Airlines is increasing the annual fee of their Alaska Airlines Visa Credit Card from $75 to $95. With this price increase comes some additional new perks. Effective immediately, the card will offer 2x points for spending in several new categories: gas, local transit, ride share, cable, and select streaming services. Cardholders with eligible Bank of America accounts will earn an extra 10% points on spending. Other benefits, such as the Companion Fare, 3 points per dollar spent on Alaska Airlines flights, and 20% off inflight food, beverages, and wifi, will remain unchanged.

In addition to these new perks, Alaska Airlines tickets purchased with the card will now come with priority boarding. Cardholders will also receive a $100 discount on an Alaska Lounge+ membership and a free checked bag for any flight purchased. However, it’s important to note that starting in March 2023, the free checked bag perk will only apply to tickets bought with the card. This means you won’t be able to use another credit card, such as the Amex Platinum, to purchase a plane ticket and still receive the free checked bag benefit. The 50% off lounge day pass will also be discontinued.

Overall, I believe the Alaska Airlines Visa Credit Card is still a good deal, especially considering the value of the companion pass alone. If you travel across the country once a year with another person, this benefit can easily offset the annual fee if you purchase tickets that are at least $217 or higher per person. Just be sure to keep these changes in mind when deciding whether to keep the card open.

Update 2023.02.01: New card members will now need to spend $6000 a year on the card in order to get the companion pass. Existing cardholders will continue to get the companion pass without this requirement.