Alaska Air Group says its launching nonstop routes on flights on Hawaiian’s Airbus A330-200s from its hub at Seattle-Tacoma International Airport near the Pacific Ocean to Narita International Airport in Tokyo, Japan next year in May, and then in October to South Korea’s Incheon International Airport. Tickets go on sale Tuesday for the Tokyo route. Photo Courtesy of John G. Mabanglo/EPA
Dec. 10 (UPI) — Alaska Air Group is planning to expand its flight routes to other corners of the world and grow profit by $1 billion, the company revealed Tuesday.
Alaska Airlines said it is launching nonstop routes on flights on Hawaiian’s Airbus A330-200s from its hub at Seattle-Tacoma International Airport near the Pacific Ocean to Narita International Airport in Tokyo, Japan next year in May, and then in October to South Korea’s Incheon International Airport. Tickets go on sale Tuesday for the Tokyo route.
The company said Asia represents roughly 22% of the total global air cargo market. And it authorized a $1 billion share buyback.
“To win in our industry, you must have relevance and loyalty, and that’s exactly what we are accelerating over the next three years,” Shane Tackett, chief financial officer of Alaska Air Group, said Tuesday in a release.
It will expand to at least 12 international destinations by 2030, according to the airline group. It also will launch a new “premium” credit card with its lending partner Bank of America and currently is evaluating premium seat options. And plans call for a new lounge at San Diego International Airport in California.
The plan comes after Alaska Airlines announced in September it closed its $1.9 billion deal to buy Hawaiian Airlines after the sale passed a review by the Justice Department in August.
Tackett added the inclusion of Hawaiian gives the growing airline “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.”
The two brands will operate separately. Meanwhile, stock shares in Alaska gained nearly 40% this year so far, NBC reported. But the addition of Hawaiian under the Alaska umbrella exposed it to 29 international markets at over 141 new destinations.
Tackett told CNBC that when you look at the last few years, “most of the growth in revenues has been in those areas of demand and I think it’s probably going to continue,” he said.
It marked the largest merger of U.S.-based airlines since Alaska Airlines previously merged in 2016 with Virgin American to be the fifth largest airline in the country.
“We have a really good base main cabin product,” Tackett added. “But more people are wanting the opportunity to get into premium economy or first class and we need to serve that demand.”