Alaska Air Group (NYSE:ALK) says it expects to grow profits by $1 billion through 2027, and plans to ride the wave of high-end travel demand to get there.
Alaska closed its $1.9 billion acquisition of Hawaiian Airlines in September, less than a year after inking the deal that gives it access to routes across the Pacific and wide-body airplanes such as the Boeing 787 Dreamliner and Airbus A330. The two brands are operating separately.
The airline will launch 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, South Korea’s, Incheon International Airport in October, Alaska said Tuesday. 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.
The carrier said Tuesday that it authorized a $1 billion 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.
ALK shares took flight $7.65, or 14.1%, to $61.84.
