by Lacey Pfalz
Last updated: 9:15 AM ET, Tue December 10, 2024
Alaska Air Group, which is the combined Alaska Air and Hawaiian Airlines, unveiled its vision for the combined company this week, called Alaska Accelerate, as it expands routes and projects Alaska Air to earn more than previously expected for the last quarter of the year.
The new program, called Alaska Accelerate, focuses on four goals: expanding the airlines’ global gateway in Seattle with long-haul widebody aircraft, expanding their connectivity to and within Hawai’i, investing in more premium experiences, from offering more premium seats to enhanced lounges, and diversifying growth with increased cargo shipping capabilities to technological investment.
The first of its goals already began just this week: new Hawaiian Airlines service from Seattle will connect travelers to Tokyo Narita, Japan (NRT) and Seoul Incheon, South Korea (ICN), beginning in May of 2025.
Additionally, the two airlines will expand its domestic network from Seattle this spring, including adding more seats between Seattle and Honolulu. Hawaiian Airlines will also expand flights to Honolulu and Maui from Portland and San Diego.
Premium experience improvements include expanded premium seating capacity, along with planned lounges at San Diego International Airport, Daniel K. Inouye International Airport and a new flagship international lounge in Seattle, opening by 2027. The airlines will also release a premium credit card.
Alaska Air Group also shared the financial goals it hopes to reach by 2027. These include reaching $1 billion in incremental profit, reaching an earnings per share of at least $10 and having a double digit pretax profit margin range of 11-13 percent.
"There has never been a more exciting time to be a part of Alaska Air Group," said Ben Minicucci, chief executive officer. "We have built a winning business model that has enabled us to outperform the industry over the past two decades. Now, with the combination with Hawaiian Airlines, we will transform our business and solidify our competitive advantage for years to come."
Part of the outperformance this year is Alaska Air’s new fourth quarter earnings forecast. Shareholders were previously expected to take home 20-40 cents per share this quarter, but that was increased this week to a range of 40-50 cents, with shares increasing 4.3 percent in premarket trading on the morning of December 10.
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