Alaska Air Group has ambitious plans to increase profits by $1 billion through 2027 by catering to the high-end travel demand. The airline closed its acquisition of Hawaiian Airlines, allowing it access to routes across the Pacific and wide-body airplanes. Alaska will launch new nonstop services between Seattle and Tokyo, as well as Seattle and Seoul, aiming to serve at least a dozen international destinations from Seattle by 2030 using wide-body planes.
The airline also authorized a $1 billion share buyback and forecasted pretax margins of 11% to 13% in 2027 with per-share earnings exceeding $10. Additionally, Alaska plans to offer a new premium credit card with Bank of America and upgrade premium seat offerings across the fleet, catering to customers’ desire for more space and comfort during travel.
Alaska’s shares have risen significantly this year, and the company is looking to partner with Boeing to make quality a priority over production rate. Boeing has resumed production following a two-month strike that affected aircraft deliveries. Overall, Alaska is confident in its long-term growth strategy and is focused on meeting the demands of high-end travelers to increase profitability and expand its reach.
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