Alaska Air Group, the parent company of Alaska Airlines and Hawaiian Airlines, has announced a major overhaul of its premium cabins, introducing new lie-flat suites, expanded premium-economy seating, and new airport lounges. The changes are part of a broader strategy to increase revenue from high-margin services and compete in the premium travel market.
Alaska Airlines will add at least 25 Boeing 737 Max 10 aircraft with 12 lie-flat Aurora suites and premium-economy seats, targeting cross-country routes. Hawaiian Airlines will retrofit its 24 Airbus A330s with 22 all-new first-class suites with sliding doors and a first-ever premium-economy section, starting in 2028. The airline also plans to open a new 41,000-square-foot Alaska lounge at Seattle-Tacoma International Airport.
The upgrades are part of Alaska Air Group’s ‘Alaska Accelerate’ plan, which aims to expand premium offerings and international presence from its Seattle hub. The new premium-economy cabin, called ‘Premium Reserve’, will feature wider reclining seats with leg and calf rests, a 16-inch Bluetooth-capable screen, outlets, USB-C charging ports, and upgraded in-flight dining menus. It will be available on Alaska’s 787 and select 737 Max 10 aircraft, as well as Hawaiian’s A330 fleet, with flights beginning in 2028.
Alaska Air Group executives highlighted the financial rationale behind the changes, noting that premium services, international flights, its loyalty program, and cargo currently account for 53% of total revenue. The company forecasts these high-margin products will reach close to 60% of total revenue by 2030. Alaska also reported it is two-thirds of the way toward its goal of adding $1 billion in profit from the end of 2024 to the end of 2027, with the new premium offerings expected to contribute to this target.
Despite the cabin upgrades, Alaska Airlines and Hawaiian Airlines will continue operating as separate brands, following the completion of their merger in September 2024. The new premium-economy cabin will be available for booking starting next summer, though the Boeing 737 Max 10 aircraft remain awaiting certification after years of delays.
The airline’s CEO, Ben Minicucci, emphasized the broader vision for premium travel, stating, ‘We believe premium is more than a seat. It’s how guests feel from the moment they book their trip to the moment they arrive at the airport, to when they’re in the air with us.’ The new lounges and seating options are designed to enhance the overall travel experience for high-paying customers.