Despite rising fuel costs, Alaska Airlines is pushing ahead with its plan to attract more premium passengers as it celebrated the launch of its newest route atop a London skyscraper on Thursday evening.

The Seattle-to-London service is part of a rapid European expansion, following last month’s launch of Alaska’s first-ever transatlantic route, to Rome. A third service, to Iceland, is set to begin next week.

But it comes at a cautious time for the industry since the Iran war sent jet fuel prices skyrocketing.

“You’ve seen a very significant drive to get airfares up,” Andrew Harrison, Alaska’s chief commercial officer, told Business Insider. “I think on average, most carriers, even what we’re selling today, are still only covering 50, 60, 70% of the increased cost of fuel.”

While most European airlines hedge against fuel costs using financial derivatives, most US carriers do not, leaving them more exposed to the surge in prices. Fuel is typically an airline’s second-highest expenditure, after labor.

United Airlines plans to “fully offset the increase in fuel prices,” but that would require an extra 8.5 percentage points of revenue for each seat it flies, CEO Scott Kirby said in March.

Even with higher airfares and checked bag fees, Harrison’s comments show how fuel costs are still eating into most airlines’ profits.

“What we tell ourselves at Alaska is just control what we can control. We are an industry that faces crises all the time. If it’s not one thing, it’s another,” Harrison told Business Insider.

“So we just feel actually very good about our expansion and what we’re doing here. In fact, it gives us even greater wind in our sails to continue and work hard during these difficult times.”

Jet fuel prices change summer vacation habits

Despite rising prices, many people are still keen to fly — especially those rich enough to fly in premium cabins, which are particularly profitable for airlines.

Around 30% of people won’t change their summer travel plans due to rising gas prices, according to a Bank of America survey of 4,000 people conducted in April. Plus, the survey found middle- and higher-income households are seeing stronger travel spending.

Alaska is leaning into the trend with new international business-class suites, including sliding privacy doors and lie-flat beds. By 2028, it also plans to introduce a premium economy cabin on its long-haul widebody aircraft, like the Boeing 787 operating the London route.

Starlink’s high-speed in-flight WiFi also helps attract premium travelers. Alaska has equipped some planes with Starlink, but it isn’t yet certified for the 787. Harrison said the airline expects it to be ready in the fall.

Alaska has expanded to long-haul transatlantic flights thanks to its acquisition of Hawaiian Airlines, which had a fleet and order book of 787s. It’s timely, given the popularity of Europe with American travelers.

The Bank of America survey found Europe remained the most attractive location for vacationers this year. Compared to 2025, it’s become at least 10% more popular with middle- and higher-income households — but less popular with lower-income households, according to the survey.

On the other hand, this means strong competition. British Airways and Delta Air Lines already fly between Seattle and London, although Virgin Atlantic is suspending its route for the winter season.

Harrison pointed to Alaska’s “state-of-the-art aircraft” on the route, manufactured in the last 12 months, as well as its Seattle hub with 105 destinations.

To bypass Heathrow’s capacity constraints, Alaska is leasing its slot at the London airport from American Airlines, a fellow member of the Oneworld alliance.

“Working together with our Oneworld partners has just given us amazing opportunity in what we know is a very highly congested and competitive airport,” Harrison said.

BA is also a Oneworld member, so Alaska customers can connect on its flights to other destinations on the continent.

Surging fuel prices have made it a testing time for aviation, but Alaska isn’t too concerned, backing its international expansion.

It’s going to build a new foundation for growth, long term, for the airline,” Harrison said. “These are large investments, don’t get me wrong, but we’re building the company for the future, we’re building the brand for the future, and this is one area where we’re going to just keep going.”

Alaska is aiming for 12 international destinations out of Seattle by 2030, and plans to announce more later this year.

A bill seeking to increase civil legal aid for Alaskans who can’t afford attorneys has become law without Gov. Mike Dunleavy’s signature.

The measure, introduced by Juneau Democratic Rep. Sara Hannan, passed earlier this month with support from 27 out of 40 House members and 17 of 20 Senate members.

Under the new law, one-quarter of court system filing fees can be appropriated each year to an existing civil legal services fund, which subsidizes attorneys for low-income Alaskans who need legal representation in civil cases.

In effect, that will direct roughly $400,000 in additional state funding next year toward those legal services, potentially allowing hundreds of additional indigent Alaskans to receive free assistance on matters that include domestic violence protective orders, applications for government benefits, and child support.

The civil legal services fund was created in 2007 and updated in 2018, when lawmakers agreed to appropriate up to 10% of annual court fees toward the fund. Since then, the need for legal aid has outpaced the state’s spending, according to Hannan and other supporters of the measure.

A similar bill passed the Senate but stalled in the House near the end of the 2024 session.

Recent annual appropriations to the fund, which depend on court filing fees and other figures, ranged from $280,000 to $360,000. The new law will more than double the allowable annual appropriation from court filing feeds the fund, to a total of $766,000, according to the Department of Commerce, Community and Economic Development.

The funding goes toward the Alaska Legal Services Corp., the only organization in the state dedicated to assisting low-income Alaskans with civil matters. The nonprofit corporation reported this year turning away half the Alaskans who asked for its help due to a lack of resources.

It reported handling 5,455 cases involving nearly 15,000 Alaskans in 2025, up from 2,880 cases involving just over 6,000 Alaskans in 2016.

The Alaska Legal Services Corp. has an annual budget of roughly $10 million, only a fraction of which comes from the state. Other funding sources include the federal government, tribes and private donations. In addition to its allocation from the civil legal services fund, the corporation has received an annual $400,000 state grant since 2022, down from $450,000 in preceding years.

The corporation’s director, Maggie Humm, estimated that for every additional $100,000 in funding, it can help 182 additional Alaskans.

ANCHORAGE, Alaska (KTUU) – Williwaw Social, a downtown Anchorage entertainment venue that hosted concerts, parties and community events for nearly 10 years, announced on Facebook that it will close its doors on Friday.

In a post from the venue’s official account, Williwaw Social thanked Anchorage residents, artists, staff and guests for supporting the business over the past decade. The announcement described the venue as a gathering place for live music, celebrations, rooftop events and nightlife in downtown Anchorage.

The post did not state a reason for the closure.

Showdown Alaska, which has partnered with Williwaw Social for events, posted a separate statement saying the closure came as a surprise to its team. The organization clarified that Showdown Alaska and Williwaw Social are separate entities that operate independently.

Showdown Alaska said its Sundown Summer Concert Series will continue as scheduled on F Street. In the caption of its post, the organization said Drake Night and Showdown Throwdown will be rescheduled at new venues, and ticket holders will receive more information by email.

Williwaw Social’s announcement thanked Anchorage for its support and described the closure as the end of a chapter for the venue.

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