Alaska Air Group on Tuesday unveiled a new three-year strategic plan that includes the development of an international gateway in Seattle and network growth in Portland, Ore., and San Diego. The carrier also announced two new routes from Seattle to Asia.
In its first Investor Day event since acquiring Hawaiian Airlines, officials said that under the strategy, dubbed Alaska Accelerate, the company aims by the end of 2027 to generate $1 billion in incremental profit, earnings per share of at least $10, pretax profit margins of 11 percent to 13 percent, no margin dilution in the first year following the merger, and synergy estimates of at least $500 million.
Beginning May 12, 2025, Hawaiian Airlines will launch daily nonstop flights between Seattle and Tokyo Narita, operating with Airbus A330-200 aircraft, according to the company. This would reposition its Honolulu-Tokyo Narita service, which officials said has experienced weaker leisure demand since the pandemic. Instead, Hawaiian will increase service between Honolulu and Tokyo Haneda to 14 flights per week from 12. Hawaiian also will continue to offer nonstop service between Honolulu and each Osaka and Fukuoka in Japan. The new Seattle-Tokyo Narita flights are available for sale.
In October 2025, Hawaiian said it would launch nonstop flights between Seattle and Seoul, South Korea. The company didn't provide more detail, but said sales would become available early next year.
As part of the Alaska Accelerate plan, Alaska Air Group projects 12 nonstop global destinations with long-haul widebody aircraft from its Seattle gateway by 2030.
In addition, the company said in the spring it would add 20 percent more seats between Seattle and Honolulu and increase Portland-Honolulu service to three daily nonstops, comprising a 25 percent increase in available seats. The company also this spring plans mid-morning and late afternoon departures from San Diego to Maui rather than a single morning departure, with new mid-afternoon and redeye departures from Maui. Starting in mid-June will be new nonstop service on Alaska Airlines between San Francisco and each Kona and Lihu'e.
Corporate 'Opportunity'
Further, the company said it would adjust its flight schedules from its combined network to allow for flights from the East Coast and the Midwest to connect more easily on the West Coast when heading to Hawaii.
"Building our international gateway allows us to tap into new guest demand that we did not directly compete for previously," Alaska chief commercial officer Andrew Harrison said on Tuesday. "This includes international corporate travel from some of the largest companies in the world. Our managed corporate clients spend $300 million a year on international travel, and that's just from Seattle alone. Our top five managed corporate accounts represent a $200 million opportunity. There is no reason we can't compete for our fair share."
Harrison added there is opportunity on the network side in both Portland and San Diego. "On the corporate side, we already see share premiums across our network," he said. "Especially with the international additions in Seattle and the expansion of our network, there is just more reason for corporate travelers to stay in our program and travel with us across the West Coast."
Corporate demand for the company of late is "coming back strong." Harrison said. "Both high-tech and professional services are recovering very rapidly. As we sit here today, our corporate booking revenue is up 30 percent year over year."
The company's investor day presentation included plans to launch New Distribution Capability, continuous pricing and a new premium credit card in summer 2025.
The company projected fourth-quarter 2024 capacity to be up 1.5 percent year over year, with full-year 2025 capacity up 2 percent to 3 percent. The fuel cost per gallon for Q4 is projected to be $2.55 to $2.65, with full-year 2025 fuel costs to be about $2.55 per gallon.