Alaska Airlines announced a plan to expand its global reach by launching nonstop flights in 2025 from its foremost hub at Seattle-Tacoma International Airport to Tokyo and Seoul. The airline hopes to increase profits to $1 billion by 2027, three years after its $1.9 billion acquisition of Hawaiian Airlines in September. The acquisition led to the introduction of wide-body aircraft resembling the Boeing 787 Dreamliner and Airbus A330 for Alaska to serve much more international routes at sea.
The recent routes shall be the airline’s first nonstop flights to Asia, with flights to Tokyo starting in May 2025 and to Seoul in October 2025. Alaska will operate these flights with Hawaiian’s Airbus A330-200 aircraft, further improving its ability to servicing the demand for international travel, which is continually growing. Flights to Tokyo could be booked from December 10, and tickets to Seoul will go on sale early next yr.
Alaska’s expansion can also be in line with the goal of serving at the very least a dozen international destinations from Seattle by 2030 with wide-body aircraft for long-haul passengers. As the airline will compete with strong players resembling Delta Air Lines, which already has a major international network in Seattle, Alaska will look to strengthen its premium seat categories. Demand for premium cabins has increased significantly, and Alaska intends to increase the variety of premium seats across its fleet, but especially on its newly acquired Hawaiian aircraft.
Additionally, Alaska is diversifying its revenue streams with the launch of a brand new premium bank card that it’s going to offer in partnership with Bank of America. This $395 annual fee card will goal high-spending customers, thereby generating additional revenue even when passengers will not be flying.
Alaska Airlines’ strategic investments have already begun to bear fruit, as the corporate raised its fourth-quarter earnings guidance to $0.40-$0.50 per share from the prior range of $0.20-$0.40. The efforts are sure to help fuel the dramatic rise in the airline’s stock, which rose greater than 13% on December 10, the largest one-day jump in nearly three years. Alaska Airlines intends to increase its competitiveness and position in the worldwide airline market by expanding its international reach and adding premium offerings.
