Alaska Airlines is adding premium offerings and routes to Asia after merging with Hawaiian Airlines in a $1.9 billion acquisition.
The upgrades are part of the company's "Alaska Accelerate," plan which will provide Hawaiian Airlines with $1 billion to enhance airport lobbies and lounges in their hubs, provide more premium seats in the cabin and unveil new routes to Tokyo and Seoul, said Alaska Air Group, Inc.
Ben Minicucci, the chief executive officer of Alaska Air Group said the measures will bring "competitive advantages."
"We have built a winning business model that has enabled us to outperform the industry over the past two decades," he said.
The plan includes a new loyalty program and a premium credit card offering.
According to Shane Tackett, the chief financial officer, these measures will help the company "win in our industry" by driving "substantial financial results that will continue to set us apart from our competitors."
"The combination with Hawaiian gives us the scale to be stronger than either of us could have been on our own--giving guests what they want, where and when they want it," Tackett said.
Once the "Alaska Accelerate" plan is launched and completed, it's forecasted to earn the company an estimated $800 million in revenue in the next three years, an earnings report released Tuesday reports.
"We expect an unprecedented level of revenue growth at Alaska over the next three years," Andrew Harrison, chief commercial officer said.
Other forecast targets for 2027 include $1 billion in profit, an earning per share of at least $10, and a profit margin between 11 and 13 percent.
Harrison said the company who once offered free flights to view a solar eclipse is focused on "strengthening the commercial levers that drive guest satisfaction."
Alaska Air Group, Inc. will begin offering new nonstop flights to Asia, connecting Seattle to Tokyo Narita in Japan beginning May 2025 and to Seoul Incheon in South Korea starting October 2025.
Alaska Air Group, Inc. acquired Virgin Airlines in an auction, is based in Seattle and its other subsidiaries includes Alaska Airlines, Horizon Air and McGee Air Services.
Its stock was up more than 12% on Tuesday due to the strong earnings report.
