Alaska Airlines reduces frequent flyer partnerships with Singapore Airlines and LATAM

A similar situation is unfolding with LATAM. Reciprocal redemptions between Alaska Atmos Rewards and LATAM’s program will also end as of October 1. Full redemption rates apply for tickets booked before August 31; after that date, points can be earned on LATAM for travel before December 31. No points will be awarded for LATAM travel after December 31 unless booked through Alaska.

While their interline agreement continues, this step marks a significant reduction in cooperation between Alaska and LATAM. Interline agreements are considered basic forms of partnership within the airline industry.

LATAM’s partial ownership by Delta Air Lines may have influenced this decision. Competition between Delta and Alaska in Seattle could have prompted Delta to encourage LATAM to prioritize its relationship with Delta over Alaska.

The changes reflect evolving market dynamics in the U.S. Previously, Alaska was an independent regional carrier providing valuable connections for international partners’ long-haul flights. Now as a member of oneworld and planning long-haul operations with Boeing 787s, Alaska appears to be focusing more on serving destinations directly and strengthening ties within its alliance network.

As costs associated with maintaining external partnerships rise and as integration into oneworld deepens, Alaska has less incentive to continue investing in relationships outside its alliance. For LATAM, Delta offers similar benefits to those provided by Alaska and has reasons to consolidate its partners' loyalty.

It is not clear why Singapore Airlines and Alaska decided to scale back their partnership specifically. Possible reasons include a shift in Singapore’s focus toward building stronger ties with United or simply a lack of profitability in continuing the arrangement.