Alaska Air Group presented at the TD Cowen 10th Annual Future of the Consumer Conference yesterday and Shane Tackett (CFO & Executive VP of Finance) was asked about some of the drivers of upside in loyalty. He said the following:
So there’s a lot of incentives that are now completely aligned between the 2 companies to go and drive this. The last thing I’ll say, there’s other areas like we would love ultimately for the proprietary cards that our bank partner provides to be able to convert to points and redeem. And I think those types of things are all opportunities for us under the new contract.
Before saying that he had said:
And the new deal with the bank, I think, for the first time, really puts new incentives in for us to jointly grow the program together, and Bank of America has been a phenomenal partner. One of their strategic imperatives that they announced at their Investor Day is loan balance growth, which is going to require them to be working with us to grow our part of that pie as well since we are their #1 co-brand partner by a wide, wide margin.
It seems like there will be another investor day in September and I wouldn’t be surprised if we get more information about this possibly becoming a reality then.
