Alaska Air Group introduces “Alaska Accelerate,” its three-year strategic plan to deliver $1 billion in incremental profit following combination with Hawaiian Airlines
- Alaska Air Group to unlock significant short- and long-term value creation to drive double digit margins of 11-13% and EPS to at least $10 by 2027; acquisition synergy estimates increased to at least $500 million by 2027
- Launching a new global gateway from Seattle with nonstop routes to Tokyo Narita (NRT) and Seoul Incheon (ICN), and expanding to at least 12 international widebody destinations by 2030
- Introducing a premium credit card with industry-leading benefits for guests, built for the global traveler to explore the expanding network
Alaska Air Group, Inc. (NYSE: ALK) hosted its previously announced 2024 Investor Day yesterday in New York City. In its first presentation since acquiring Hawaiian Airlines, the company unveiled Alaska Accelerate, its vision for the combined company, including how it will power commercial performance, achieve medium-term financial targets, and unlock significant value creation into the future.
“There has never been a more exciting time to be a part of Alaska Air Group. We have built a winning business model that has enabled us to outperform the industry over the past two decades. Now, with the combination with Hawaiian Airlines, we will transform our business and solidify our competitive advantage for years to come.”
Chief Executive Officer of Alaska Air Group
Alaska Accelerate
- Alaska Accelerate is architected to deliver on the combined airline’s vision of connecting guests to the world with a remarkable travel experience rooted in safety, care and performance. Significant investments in the commercial organization will propel the company forward, revolving around four main goals:Connect our guests to the world:
- Enabling the power of an expanded network by opening a global gateway in Seattle with long-haul widebody aircraft, seamlessly blending two route networks to optimize connections and deepen relevance for guests. Alaska and Hawaiian now operates over 1,400 daily flights to over 140 cities and can take people to over 1,200 destinations worldwide with global partners and through the oneworld Alliance.Be Hawai‘i’s trusted airline:
- Providing Hawai‘i residents access to an expanded network, greater connectivity wherever they want to fly, and a dedicated loyalty program, Huaka‘i by Hawaiian.Deliver a remarkable travel experience:
- Investing in its existing end-to-end premium experience including enhanced airport lobbies and lounges in our hubs, expanded premium seat capacity, a new loyalty platform, and a premium credit card offering.Diversify our future:
- Maximizing opportunities to create and grow revenue across the business from cargo growth to innovation and investing in technologies for the future.
Enabling significant value creation
This acceleration of Alaska Air Group’s strengths and competitive advantages will enable significant value creation and deliver industry-leading financial results.
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
- Synergy estimates doubled to at least $500M
Click here to read the full article on the Alaska Airlines website.
