Alaska Airlines has unveiled a new three-year strategy focused on expanding its operations while targeting enhanced profitability.
The airline is embarking on a new global expansion strategy, transitioning from its traditional North American focus, to launch international routes. Starting in 2025 the airline plans to introduce flights from its hub in Seattle to Tokyo and Seoul, expanding to at least 12 international widebody destinations by 2030.
Daily nonstop services operated on Hawaiian’s A330 aircraft to Tokyo Narita are expected to commence in May 2025, whereas nonstop services to Seoul Incheon will begin in October 2025.
Ben Minicucci, chief executive officer of Alaska, described Alaska's combination with Hawaiian as giving both airlines the scale to be stronger than either of them could have been on their own.
The new scheme dubbed “Alaska Accelerate” also consolidates Alaska’s financial targets for 2027. Key financial targets include aiming to deliver $1 billion in incremental profit, earnings per share of at least $10, double-digit pretax profit margins, no margin dilution in the first-year post-merger with Hawaiian Airlines and revised synergy estimates now projected to exceed $500 million - double the original forecast.
"To win in our industry, you must have relevance and loyalty, and that's exactly what we are accelerating over the next three years," said Shane Tackett, Alaska’s chief financial officer.
"The combination with Hawaiian gives us the scale to be stronger than either of us could have been on our own – giving guests what they want, where and when they want it. And it will drive substantial financial results that will continue to set us apart from our competitors,” Tackett added.
Looking ahead, the company projects a strong performance in 2025, with synergy targets and commercial initiatives expected to prevent any dilution to adjusted pretax margins compared to 2024.
Alaska forecasts a 30% growth in earnings per share (EPS), reaching at least $5.75, alongside positive free cash flow. Planned investments include $1.4 to $1.5 billion in capital expenditures.
Additionally, the company plans approximately $250 million in share repurchases, while expanding capacity by 2% to 3%.