Alaska Air Expects Unprecedented Level Of Revenue Growth Over Next Three Years

Alaska Air Group

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Kaufen / Verkaufen

(RTTNews) - Alaska Air Group, Inc. (ALK) introduced Alaska Accelerate, its vision for the combined company following combination with Hawaiian Airlines. Alaska Air said, with contributions coming across network, product, loyalty and cargo, the commercial organization will drive the vast majority of the expected profit growth over the next three years - unlocking an additional $800 million in revenue. The company's new 2027 financial targets will include: $1 billion in incremental profit; earnings per share of at least $10; double digit pretax profit margins 11-13%; no margin dilution in year 1 following the merger; and synergy estimates doubled to at least $500 million.

"We expect an unprecedented level of revenue growth at Alaska over the next three years," said Andrew Harrison, chief commercial officer.

For fiscal 2025, the company anticipates: capacity to rise 2% to 3%; earnings per share of at least $5.75; capital expenditures in a range of $1.4 to $1.5 billion; and share repurchases of approximately $250 million. The company expects synergy targets and commercial initiatives will allow for no dilution to adjusted pretax margin in 2025 compared to 2024. Also, it expects to grow EPS by 30% and produce positive free cash flow.

Alaska Air announced the launch of Seattle as a new global gateway. New nonstop service with Hawaiian Airlines widebody aircraft between Seattle and Tokyo Narita, Japan, and Seoul Incheon, South Korea will begin in 2025. Daily nonstop flights between Seattle and Tokyo Narita start on May 12, 2025.

Also, Alaska will launch a premium credit card built for the global traveler, including a Global Companion Award Certificate, 3x miles on all eligible foreign and dining purchases, and an even faster path to elite status and more.