Alaska Airlines: Loyalty and premium investments paying off

Alaska Airlines Frequent Flyer looks forward to the debut of its new loyalty program this summer.

The program is a key step in the merger with Seattle-based airline Hawaiian Airlines. Unknown programs are exchanged by combining individual programs Alaska Mileage Plan and Hawaiian Hawaiian Mile program.

In a quarterly revenue call with investors on Thursday, Alaska Airlines CEO Ben Minischucci described the new program as “another exciting step to improving the guest experience.” The loyalty platform is paired with a New Premium Credit Card Same thing.

The imminent program of Alaska’s new loyalty program is not to stop travelers from signing up for one of their existing recruitment mileage plan credit cards. The number of card sign-ups increased 26% year-on-year in the first quarter. Much of that activity occurred in Hawaii, where sign-ups jumped 40%. This helped boost Alaska Cobrand’s card revenue during otherwise challenging periods.

Alaska saw the same slowdown in US travel demand in the first quarter, as reported by other airlines. It contributed to a Net losses over the period It urged carriers to delay updates to their year-round guidance. However, executives expressed confidence that the bottom had passed.

“Overall bookings are stable as we look forward to it despite the lower yields than we had planned,” said Andrew Harrison, Alaska’s chief commercial officer. Yield refers to what airfare travelers pay.

Whether it slows down or not, Alaska executives remain bullish on the airline’s future.

Premium works well even if demand slows down

Investing in Alaska’s premium products proves to be foresightful. Growing faster than revenue from first-quarter Economy Seats, executives said, was faster growth from revenue from first-class and non-regoom economy seats (or “premium class”).

Airlines are in the process Modifications over 200 Boeing 737 There are additional premium seats. The program adds four first class seats (total of 16) to the 737-800. We’ll also add six more extra room economy seats (total of 30) to the 737-900ers and 737 Max 9. The new 737 Max 8S will begin arriving in May with the same layout as the updated 737-800.

Alaska aims to complete more than half of the 159 737-900ers updates by July. Work on the 59 737-800 will begin this summer. The Career aims to complete the premium overhaul by the summer of 2026.

Alaska-Hawaiian mergers are moving forward at a pace

Alaska is confident in the timing of the major milestones in its merger with Hawaiian, Minicicic said. The airline maintains a single certificate of operation (a document that can operate as a commercial airline) plan from the Federal Aviation Administration in the fourth quarter of 2025.

Hawaiian is expected to move to the Alaska reservation system (also known as the “passenger service system”) in the second quarter of 2026. Cutovers of booking systems are one of the most difficult steps in any airline merger. However, when they integrated Virgin America in 2018, Alaska barely pulled it apart with a hiccup.

When asked if the FAA’s slow bureaucracy could affect timing, Minicucci said he didn’t expect any delays.

“Overall, Hawaii is a bright place for us,” he said of the merger and market. “Everything we do is ahead of our expectations.”

California is not just San Diego, but still Alaska’s key

Alaska executives faced scrutiny of California’s strategy. A few days before the call, the airline I’ve x 4 long routes From Los Angeles International Airport (LAX) and San Francisco International Airport (SFO) I’ve added 3 From San Diego International Airport (SAN).

“San Francisco and Los Angeles are key parts of California’s strategy,” Harrison said in response to questions about the future of airlines at two of Golden State’s biggest airports.

He said San Diego’s growth is part of a long-term play that fits its loyalty strategy. Alaska has steadily grown in major Southern California cities over the past decade, becoming the second largest airline at the airport after Southwest Airlines, and is scheduled for data from aeronautics analytics firm Cirium.

Alaska is looking at “the highest average card spend” in San Diego, either in the California market, Harrison said.

“San Diego has just worked really well in our growth,” he continued. “That’s where we continue to invest.”

Alaska is expected to operate 90 peak day departures from San Diego by October. This includes additional flights to major destinations, including Harry Reed International Airport (LAS), Sacramento International Airport (SMF), and San Josemine International Airport (SJC) in Las Vegas.