Alaska Airlines’ new 737 Max suites. Courtesy: Alaska AirlinesAlaska Airlines is remodeling cabins at Alaska and Hawaiian Airlines to add hundreds of high-end seats and building new airport lounges, banking on customers’ continued willingness to pay a premium for travel luxuries to boost its profits over the next decade. The changes were announced ahead of Alaska’s investor day in Seattle on Tuesday, when airline executives will face questions about the new offerings and how the airline is dealing with rising profits in jet fuel this year. They are also likely to tie the new products to the company’s prospects for growing its co-branded credit card and loyalty program, which have generated billions for airlines. Tune in at 10:20 ET when Alaska Airlines CEO Ben Minicucci joins CNBC TV. Watch in real time on CNBC+ or the CNBC Pro stream. Even with the cabin changes, Alaska, which completed its merger with Hawaiian Airlines in September 2024, will continue to operate the two airlines as separate brands. Here are some of the changes: Alaska’s Boeing 787 Dreamliners will get 34 lie-flat suites in a new offering it will call Aurora. It will also have 35 seats in a new premium economy section, called Premium Reserve, on the 787-9 and 787-10, starting in 2028. “At least” 25 of the yet-to-be-certified Boeing 737 Max 10s will have 12 lie-flat Aurora suites and premium economy seats, a bid to compete with other airlines on lucrative cross-country routes. Hawaiian Airlines’ 24 Airbus A330s will each get 22 all-new first-class suites with sliding doors, starting in 2028, and its first premium economy section, with 28 seats. The airline will open a new 41,000-square-foot Alaska lounge at Seattle-Tacoma International Airport, with dedicated space for Aurora suite travelers, similar to the tiered lounge system that Delta Air Lines, United Airlines and American Airlines have. Hawaiian is building a nearly 13,000-square-foot lounge in Honolulu’s Terminal 1, scheduled to open in early 2028. Alaska Airlines’ new premium economy cabin. Courtesy: Alaska AirlinesU.S. Airlines have spent recent years renovating their cabins to add more premium seats, often at the expense of coach seats, since first-class fares can cost many times more than an economy-class ticket, and customers still pay to sit closer to the front. Alaska is far from the first airline to remodel its cabins, but that could benefit it when the new product hits the market. “Being the last mover has the advantage that you’ve seen what your competitors have and, if you want, you can try to outdo them,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel consulting firm. Hawaiian Airlines A330 Review Hawaiian Airlines Airbus A330s, used for flights to Hawaii, Asia and Oceania, have “aging interiors,” said Alaska fleet chief Shane Jones. The new options will reduce the total seat count on those planes from 278 seats to 254 seats. Jones said the new options will give Alaska a range of premium options, from honeymoon splurges to returning Hawaii visitors looking for a step up from coach. He told CNBC that the airline spent months looking at fabric samples at the company’s headquarters in Seattle under different types of lighting to choose the right one. Some shades were too bright pink, while others were too drab. He said the airline wanted to evoke the colors and mood of tropical getaways to Hawaii with a wave pattern sewn into the seat, and that the airline evaluated how many waves were enough because too many could cause motion sickness. their travel budget, their spending patterns, their flying patterns, and this gives us the opportunity to improve the experience.” Meanwhile, Alaska has been expanding its international flights from Seattle, including to London, Iceland and Italy, with more destinations scheduled to begin this fall. Demand for international travel has held up despite rising fuel prices, airline executives have said. Debit card debut, changes to frequent flyer program Alaska also plans to launch a rewards debit card early next year for its Atmos loyalty program, expanding the airline’s co-branded cards it offers with Bank of America. Airlines including Southwest Airlines and United Airlines have begun offering similar rewards cards through its partner, JPMorgan Chase. Alaska said the new debit card is aimed at younger people and newcomers to the U.S. and said it “expands the reach of the program beyond traditional credit products.” Atmos will have to choose between earning miles for distance traveled, ticket price or segments flown. Airlines have largely moved away from distance-based earnings and have instead prioritized how much travelers spend on the airline or on rewards credit cards.Read more airline news CNBC.
