Alaska Airlines: 3rd IT Failure in 3 Months – The Data on Flights & Reliability

Alaska Airlines: Flying Through Turbulence, Literally and Figuratively

Alaska Airlines finds itself in a rather unenviable position, juggling a series of operational headaches while trying to integrate a major loyalty program overhaul. It's a case study in how seemingly disparate events can compound to create a perfect storm of customer frustration and brand damage. Let’s break down the data points and see what they really mean.

Fuel Leaks, IT Meltdowns, and Psychedelic Mishaps: A Pattern?

First, the good-ish news: Alaska Airlines assures us that a fuel pipeline leak in Washington won't disrupt holiday travel. They're “tankering” fuel and using tech stops to conserve (a tech stop, they clarify, is when "passengers stay onboard," which, let's be honest, sounds like a recipe for holiday travel rage). Portland airport claims they’re fine, thanks to barge deliveries. But the fact remains, this is yet another potential disruption layered on top of existing problems. How much extra does "tankering" cost? And are these "contingency plans" priced into the cost of tickets?

Then there's the IT situation. Three major failures in as many months, the latest stemming from a global Microsoft Azure outage affecting everything from Kroger to Starbucks. The airline's website was a mess, then an error message, then a stripped-down booking page. Passengers were left stranded, unable to check in, relying on overwhelmed airport staff. Alaska Airlines acknowledged that their recent performance “is not acceptable.” (An understatement, if ever there was one.) The previous outage grounded all flights and impacted 49,000 passengers. Is Alaska Airlines too reliant on a single cloud provider? Redundancy plans are great in theory, but clearly need revisiting. I wonder what the average cost per passenger was for those rebookings?

And, of course, we can’t forget the incident with the off-duty pilot who tried to shut down a plane's engines mid-flight after ingesting psychedelic mushrooms. Joseph Emerson, the pilot in question, avoided prison time, receiving time served and probation. He was ordered to pay restitution to Alaska Airlines (nearly $60,000), and his FAA certifications were revoked (unsurprisingly). While the judge cited a rare disorder, this incident undoubtedly shook passenger confidence. Emerson and his wife started a nonprofit, Clear Skies Ahead, to raise funds for pilot mental health—a move that's either commendable or cynical, depending on your perspective. The pilot who helped restrain Emerson argued against prison time, suggesting it would discourage other pilots from seeking help. A valid point, but how do you balance that against the need for public safety? The question is: How many pilots are quietly struggling? Former Alaska Airlines pilot who tried to shut down engines midflight avoids prison time

Loyalty Overhaul: Atmos Rewards - Is it Worth It?

On top of these operational challenges, Alaska Airlines is rolling out Atmos Rewards, its joint loyalty program with Hawaiian Airlines. Mileage Plan accounts were converted in August 2025, and HawaiianMiles will transition in October. The program offers points for flying, credit card spending, and transfers from Bilt Rewards and Marriott Bonvoy. NerdWallet values Atmos points at 1.2 cents each.

Here's where it gets interesting, and where my analysis suggests some potential dilution of value. While the program boasts a wide network of partners (including American Airlines), the transfer ratio from Marriott Bonvoy is 3:1 (3,000 Bonvoy points get you 1,000 Atmos points). Given that NerdWallet values Marriott points at 0.8 cents each, you're essentially trading 2.4 cents of Marriott value for 1.2 cents of Atmos value. (I've looked at hundreds of these loyalty programs, and that transfer rate is…unfavorable.) It only makes sense if you're topping off your Atmos account for a specific, high-value redemption.

The Atmos Rewards program also sells points, often at a price higher than their assessed value (around 2 cents apiece versus NerdWallet's 1.2 cents). So, unless there's a substantial bonus, buying points is generally a bad deal.

Starting in 2026, Atmos Rewards will offer members a choice of how to earn miles: distance traveled, segments flown, or money spent. It remains to be seen which option will be most advantageous for different travel patterns.

What's the Real Story?

Alaska Airlines is facing a multi-faceted crisis. Operational disruptions erode customer trust. The pilot incident raises serious questions about safety and mental health support. And the Atmos Rewards rollout, while promising in theory, may dilute value for some customers. The airline needs to address these issues head-on, with transparency and concrete solutions, or risk losing altitude in a competitive market.