Alaska Airlines is undertaking a significant upgrade of its premium cabins on both Alaska and Hawaiian Airlines following their merger in September 2024. The revamp includes new top-tier suites and a premium-economy class aimed at attracting travelers willing to pay more for luxury and comfort. The airline announced these enhancements ahead of its investor day in Seattle, emphasizing its goal to boost profitability amid rising jet fuel costs. Alaska aims to increase revenue from higher-margin products like premium seating, international flights, its loyalty program, and cargo, forecasting these segments to comprise nearly 60% of total revenue by 2030, up from 53% now.

Key features of the overhaul include 34 lie-flat Aurora suites and a new premium-economy section called Premium Reserve being added to the 787 Dreamliners by 2028. Alaska’s Boeing 737 Max 10 fleet will also see at least 25 aircraft equipped with 12 Aurora suites and premium-economy seats, targeting lucrative cross-country routes. Meanwhile, Hawaiian Airlines is updating its 24 Airbus A330 aircraft with 22 first-class suites featuring sliding doors and its first-ever premium-economy cabin, cutting the total seats to enhance comfort. To complement these upgrades, Alaska is opening a 41,000-square-foot lounge at Seattle-Tacoma International Airport, and Hawaiian is constructing a nearly 13,000-square-foot lounge in Honolulu, both scheduled to be ready by early 2028.

The timing of Alaska’s cabin enhancements allows it to learn from competitors who have already revamped their offerings, positioning it to potentially outdo rivals in the high-end travel segment. Experts note there is an advantage in entering the premium market as a “last mover,” as Alaska can model its products on industry trends while also introducing new features. Hawaiian’s CEO Diana Birkett Rakow highlighted the value of West Coast visitors, who represent a significant economic segment with strong travel budgets and spending patterns. Alaska is also expanding international routes from Seattle to destinations like London, Iceland, and Italy, reflecting resilience in global travel demand despite high fuel prices.

In addition to the cabin improvements, Alaska Airlines announced the launch of a new rewards debit card tied to its Atmos loyalty program early next year, aiming to attract younger travelers and new U.S. arrivals. This move follows other airlines’ adoption of bank partnerships to expand their loyalty programs beyond traditional credit cards. Furthermore, Alaska will implement changes to its frequent flyer program, requiring members to choose between earning miles based on distance flown, ticket price, or the number of segments. This adjustment reflects a broader industry shift emphasizing spend-based rewards over mileage accumulation.