Alaska Air Group is set to expand its global presence and boost profits by $1 billion, the company announced on Tuesday.
Alaska Airlines will introduce new nonstop routes from its Seattle-Tacoma International Airport hub to Tokyo’s Narita International Airport in May 2024 and to South Korea’s Incheon International Airport in October. These flights will utilize Hawaiian Airlines’ Airbus A330-200s. Tickets for the Tokyo route go on sale starting Tuesday.
With Asia accounting for about 22% of the global air cargo market, Alaska Airlines sees significant growth opportunities in international markets. The company also authorized a $1 billion share buyback to strengthen its financial position.
The expansion plan aims to solidify Alaska Airlines’ competitiveness and relevance in the market over the next three years, according to Shane Tackett, CFO of Alaska Air Group. The airline aims to establish service to at least 12 international destinations by 2030, introduce a new premium credit card in partnership with Bank of America, explore premium seat offerings, and build a new lounge at San Diego International Airport.
This strategy follows Alaska Airlines’ $1.9 billion acquisition of Hawaiian Airlines, which secured access to 29 international markets across 141 new destinations.
Tackett emphasized that the integration of Hawaiian Airlines would strengthen their market position, enhance customer offerings, and drive substantial financial gains.
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