Alaska Airlines plane.
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Alaska Airlines Group Expects profits to grow by $1 billion by 2027 and plans to ride the wave high-end travel Ask to get there.
Alaska closes at $1.9 billion Acquisition of Hawaiian Airlines In September, less than a year after signing an agreement that gives it access to Pacific routes and wide-body aircraft such as boeing company 787 Dreamliner. The two brands are operated separately.
Alaska said on Tuesday it will launch nonstop flights on Hawaiian Airlines Airbus A330-200s between Seattle-Tacoma International Airport and Tokyo Narita International Airport in May, and between Seattle and Seoul Incheon International Airport in South Korea in October. direct flights between. Tickets for the new Tokyo flight will go on sale on Tuesday, while tickets for the latter route will go on sale in early 2025.
By 2030, Alaska plans to serve at least a dozen international destinations from Seattle using wide-body aircraft.
Alaska expects pretax margins of 11% to 13% in 2027, with earnings per share exceeding $10. In October, the company forecast 2024 earnings per share of $3.50 to $4.50, including results from Hawaiian Airlines.
Alaska Airlines and S&P 500 Index Performance
The operator also launched a new “premium” credit card with its partners Bank of Americais the latest co-branded deal designed to bring revenue to customers even when they’re not flying.
Alaska is evaluating premium seating products across its entire fleet. The airline is looking to upgrade Hawaiian Airlines’ Airbus A330 aircraft specifically to attract more customers willing to pay for more space and comfort during travel, Chief Financial Officer Shane Tackett told CNBC.
“Looking back over the past two or three years, most of the revenue growth has come from these demand areas, and I think that’s likely to continue,” Tackett said. “We have a very good base main cabin product… but increasingly of people want the opportunity to travel in premium economy or first class, and we need to meet that demand.”
Tuckett said there are more first-class and premium economy seats than ever before, and those seats are being purchased directly by customers rather than being filled through free upgrades.
seattle rivals Delta Air LinesIts domestic passenger market share is 24%, second only to Alaska’s 55% in Seattle, the company also pointed out Demand changes Because of its first class seats. However, Delta Air Lines accounts for a larger share of international passengers at the airport.
Alaska says it plans to provide a new lounge at San Diego International Airport. Delta Air Lines said Wednesday it will open a Delta One lounge in Boston, its third lounge after openings in New York and Los Angeles this year, to cater exclusively to passengers traveling in its most premium cabins.
Meanwhile, Tackett told CNBC he expects more adjustments to Boeing’s Alaska deliveries.
In January, a door jam blew off a nearly new Boeing 737 Max 9 aircraft in Alaska after it left the manufacturer’s factory without the key bolt installed. Near-disasters and heightened quality inspections have slowed Boeing’s production and deliveries to airline customers such as Alaska, united and southwest.
“I think they’re making progress. It’s not going to happen in a week. It’s going to take time,” Tackett said of Boeing. CEO Kelly Ortberg Its mission is to stabilize aircraft manufacturers. “We need to be very focused on helping them understand that quality is the most important thing; quality is more important to us than rate.”
Boeing is scheduled to announce November aircraft orders and deliveries at 11 a.m. on Tuesday, and this data is expected to be affected by the number of aircraft orders and deliveries in recent November. Two-month machinists strike Production of most of Boeing’s airplanes ceased.
