Alaska Airlines plans new nonstop flights to Japan, Korea in $1b postmerger profit push

Alaska Air Group expects to grow profits by $1b through 2027, and plans to ride the wave of high-end travel demand to get there. Alaska closed its $1.9b acquisition of Hawaiian Airlines in September, less than a year after inking the deal that gives it access to routes to Asia and Europe with wide-body airplanes such as the Boeing 787 Dreamliner and Airbus A330. The two brands are operating separately. The airline on Tuesday laid out plans for a global expansion that aims to take on larger rivals like Delta Air Lines, which is already facing increased competition for premium customers from United Airlines. Alaska’s first step: launching nonstop service between its home hub of Seattle-Tacoma International Airport and Tokyo’s Narita International Airport in May on Hawaiian’s Airbus A330-200s, and between Seattle and Seoul’s Incheon International Airport in South Korea next October. Tickets for the new Tokyo flights go on sale Tuesday, while fares for the latter route go on sale in early 2025. By 2030, Alaska plans to serve at least a dozen international destinations from Seattle using wide-body planes, reshaping the carrier that has long focused on shorter routes from the West Coast. The carrier said Tuesday that it authorized a $1b share buyback. Alaska also forecast pretax margins of between 11% and 13% in 2027 and per-share earnings topping $10. In October, the company estimated 2024 earnings of between $3.50 and $4.50 a share, including Hawaiian’s results. It raised its fourth-quarter earnings estimates to 40 cents to 50 cents a share, up from a previous outlook for 20 cents to 40 cents.<br/>