Alaska Airlines launches new nonstop flights and 'premium' offers in $1 billion profit plan

Alaska Airlines (ALK+11.71%) is launching a handful of new nonstop flights to Asia as it sets an ambitious incremental profit goal a few months after it merged with Hawaiian Airlines.

The Seattle-based airline plans to grow its profit by $1 billion through 2027, leaning on its $1.9 billion merger with Hawaiian to widen its access to routes across the Pacific Ocean and wide-body jets. Alaska expects to see commercial operations deliver an additional $800 million in revenue, largely as a result of new enhanced offerings.

Alaska said it would begin offering new nonstop daily flights between the Seattle-Tacoma International Airport and Tokyo’s Narita International Airport, beginning in May 2025, and flights to Seoul’s Incheon International Airport as early as next October. By 2030, it plans to serve at least 12 nonstop global destinations with long-haul widebody aircraft from Seattle.

“From our global gateway in Seattle, we can conveniently connect travelers from across our network as they head to Asia and beyond,” said Alaska CEO Ben Minicucci in a statement. “Hawaiian’s spacious widebody aircraft, along with its excellent onboard service and amenities, will make for a terrific trip from one side of the Pacific Rim to the other.”

Alaska forecasts pretax profit margins of between 11% and 13% for 2027, earnings per share of at least $10, and no margin dilution over the year following the merger closing.

It also raised its fourth-quarter guidance for adjusted earnings per share to between 40 and 50 cents, up from prior guidance of between 20 and 40 cents, according to a regulatory filing. Alaska cited strong close-in bookings for October and November and strong holiday demand, which is boosting December revenue. The company will present at its annual conference for investors on Tuesday afternoon.

Besides the new flights, Alaska is employing a host of new measures to try and enhance the consumer experience and generate revenue. Last month, the airline began testing out an artificial intelligence-powered schedule optimization tool to help it schedule its planes.

Alaska is also launching a “premium” credit card with Bank of America (BAC-0.63%) as part of its plans to boost its mileage plan, increasing its premium seat mix on its Boeing (BA+2.23%) narrowbody fleet, and expanding its Loung program. Planned lounges at airports in San Diego, Honolulu, and Seattle will join Alaska’s portfolio by 2027.

Despite Alaska and Hawaiian operating separately, Alaska Air Group is working on combining the carrier’s loyalty programs. For now, miles can be transferred between Alaska and Hawaiian accounts for free. A separate loyalty program for Hawaii’s residents, “Huaka‘i by Hawaiian,” has also been launched.

“We’re focused on strengthening the commercial levers that drive the greatest guest satisfaction, and ultimately preference,” Alaska Chief Commercial Officer Andrew Harrison said in a statement. “Our guests will benefit from more premium seats, an enhanced loyalty program with even more ways to earn and redeem miles, and new global destinations to the places they most want to go.”