Alaska Airlines, long known for its focus on domestic US routes, is embarking on an ambitious global expansion plan, marking a significant shift in its business strategy, Bloomberg reports.
The airline, part of Alaska Air Group Inc., which also owns Hawaiian Airlines, announced plans to launch its first-ever flights from Seattle to Asia in 2025, with further expansion into Europe within the next five years.
CEO Ben Minicucci revealed the ambitious international strategy in an interview with Bloomberg and detailed plans during an investor meeting on Tuesday. The expansion will see Alaska compete directly with major international carriers like Delta and United, pushing the airline well beyond its established network.
Minicucci stated, “We’re going to connect the west coast to the world and we’re going to do it now with the assets that we have that we didn’t have before.” This expansion leverages the recent acquisition of Hawaiian Airlines, which is expected to contribute significantly to Alaska Air Group’s bottom line. The company projects incremental profit growth exceeding $1 billion and earnings of at least $10 per share by 2027, driven in part by the $300 million in projected incremental revenue and $200 million in cost savings from the Hawaiian acquisition. 2025 earnings are expected to reach at least $5.75 per share, surpassing analyst estimates.
The initial phase of the international expansion will utilize existing transpacific routes flown by Hawaiian Airlines from Honolulu to Tokyo (Narita) and Seoul, with these routes being launched from Seattle in May and October 2025, respectively. The airline plans to eventually offer up to 12 international routes. Minicucci highlighted Europe as a key target, citing the strong connection between the Pacific Northwest and European destinations, particularly during summer months.
Alaska Air Group plans to expand its flight capacity by as much as 3% in 2025 compared to 2024 and has also announced a $250 million share repurchase program for next year. The international flights will initially use Hawaiian’s Airbus A330 widebody aircraft, with Alaska’s future fleet of 12 Boeing 787 Dreamliners also set to play a role. A new livery will be designed specifically for these international flights.
The airline’s growth strategy emphasizes premium offerings. The percentage of premium seats in the combined fleet will rise to 29% from 26%, with revenue from premium seats projected to increase to approximately 45% from 37%. To further cater to international travelers, Alaska plans to launch a new premium credit card offering benefits such as its popular companion fare. This new card will offer cardholders a free ticket (excluding taxes) on Alaska or partner airlines annually after an initial purchase.
