Seeking a greater slice of the lucrative premium market, Alaska Airlines plans to add more than 1,000 first and premium-economy seats across about 220 aircraft in its fleet.
Seattle-headquartered Alaska Air Group disclosed on 17 July that it plans to expand the front cabins of 59 Boeing 737-900ERs, 79 737-800s and 80 737 Max 9s.
Conversions are set to begin in September and continue into the summer of 2026, part of a strategy to capitalise on a “premium-leaning environment” in which most US discounters are struggling to turn profits.
“We’re stepping up our premium exposure given the strength of demand and shift in guest preference toward this segment,” chief executive Ben Minicucci said during the company’s 18 July earnings call.
“We’ll be adding six premium-class seats to our 737-900ER and Max 9 fleets, and four first-class seats to our 737-800 fleet, driving our total premium seat mix up three points to 20% when completed,” he adds.
The changes will let Alaska sell 1.3 million more premium seats annually.
Revenue from Alaska’s premium segment increased 6% year on year and nearly reached $1 billion in the second quarter, a period that saw the carrier post a $220 million profit.
Doubling down on the segment will diversify Alaska’s revenue base, Minicucci says. “This is a dynamic industry that requires constant adaptation and course corrections.”
Andrew Harrison, Alaska’s chief commercial officer, says the carrier’s “multi-faceted approach to creating a premium experience” separates Alaska from other domestic carriers.
Last year, Alaska added a row of premium seats to its fleet of Embraer E175s flying for regional subsidiary Horizon Air, giving it 400,000 more premium seats to sell annually.
Alaska views itself as one of a select group of “premium airlines” rising above the rest of the US airline industry, according to Minicucci. The carrier appears to have high ambitions of competing with the “big four” carriers – American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.
Those plans could be boosted by its bid to acquire for $1.9 billion Honolulu-based Hawaiian Airlines – and specifically by that carrier’s long-haul fleet, which would allow Alaska Air Group to expand beyond the US domestic market. The proposed tie-up is currently under review by US antitrust regulators.
