Alaska Air is upgrading its Premium Class suites to offset high jet fuel prices, Reuters reports. The suites will feature premium travel options such as premium-economy cabins with lie-flat seats and new airport lounges.
Alaska Air’s Updates
The plan for Alaska Air Premium Class is:
- Premium reserve cabins on Boeing 787 Dreamliners, Airbus A330s, and a few predetermined, yet-to-be-released Boeing 737 MAX 10s
- Lie-flat Aurora suites by manufacturer Collins Aerospace on Boeing 787 Dreamliners, Airbus A330’s, and some Boeing 737 MAX 10 aircraft
- New airport lounges in some U.S. states, including Seattle, Honolulu, and San Diego
There are other basic onboard amenities such as various free alcoholic beverage options for most flights over a certain mileage.
Major U.S. airlines have been pushing to expand and update their premium travel class options. Airliners such as Delta and United have rearranged their aircraft to increase the number of premium-economy seats.
Alaska Air has said the new premium fare could drive earnings per share in a couple of years, with margins rising by 2 to 3 percentage points. President and Chief Financial Officer Shane Tackett stated that the airline is looking to create “a pretty steady rate of demand” for its premium seats.
Prioritising Premium
Alaska Air is anticipating that the move to prioritise premium travel will result in over 40% of total revenue by 2030, up from the predicted 36%. The move comes as an attempt to combat rising fuel prices. Other combative measures, such as implementing investments on international routes and tripling cargo capacity, are being used to offset the higher fuel costs, according to CEO Ben Minicucci.
Minicucci was asked in a Reuters interview if whether Boeing’s delay in delivering its newest aircraft model, the 747 Max 10, due to a software glitch, was a concern.
In response, he stated that he was “not overly concerned” about the delay, adding that their goal was to get:
“the safest and reliable aeroplane coming out of the certification process”
Greater evolution for Alaska Air is further expected to come from its plan to serve 15 long-haul international destinations from Seattle by 2030.
What do you think about U.S. airlines prioritising premium seating?
