‘Alaska Accelerate’ plan revealed following Hawaiian merger
December 11, 2024
The Alaska Air Group has revealed its three-year strategic plan, ‘Alaska Accelerate’, intended to deliver $1 billion in incremental profit following its merger with Hawaiian Airlines.
Following regulatory approval from the US Department of Transport, Alaska Airlines completed its acquisition of Hawaiian Airlines in September – less than a year since the former announced its intention to operate each separate brand as a combined entity (a first for a US airline). Building on a history of more than 230 collective years of service, “I know we will build on that legacy and become stronger together,” commented Alaska Air Group CEO Ben Minicucci at the time.
Through initiatives such as a “new global gateway” in Seattle, international route expansion and associated increased cargo capacity, the Group aims to drive double-digit margins of 11%-13% earnings per share to at least $10 by 2027. This equates to $1 billion in incremental profit, with Alaska Air Group Shane Tackett commenting: “The combination with Hawaiian gives us the scale to be stronger than either of us could have been on our own… and it will drive substantial financial results”.
Network expansion plans include a new widebody hub in Seattle, “seamlessly blending two route networks to optimise connections”. New nonstop A330 flights to Tokyo Narita and Seoul Incheon will commence in May and October 2025, augmenting the over 1,400 daily flights currently operating to over 140 cities worldwide.
These new passenger services will also further help the cargo sector continue to be a strong suit in the Alaska Airlines Group’s hand, described as “the first steps to directly connect Alaska’s Seattle flagship cargo hub to the world’s most lucrative cargo markets”. With the combined network and widebody fleet poised to “double in [cargo] revenue over the next few years,” the group expects to unlock margins between two and three times the system average. “
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