Alaska Airlines announced Tuesday that, as part of a commitment to increase foreign flights over the next years, it will begin additional service to Seoul and Tokyo next year.
Along with announcing a goal to increase profits by $1 billion over three years and improving its fourth-quarter projection, Alaska unveiled the new routes on Tuesday.
It claimed that by 2027, the corporation would have saved at least $500 million thanks to increased efficiency from the merger with Hawaiian Airlines. Similar agreements have been profitable for other carriers, and Alaska also intends to launch a new premium co-branded credit card.
Additionally, Alaska revealed plans to repurchase $1 billion worth of its own stock, increasing the value of investors’ current holdings.
Alaska Air Group, based in Seattle, saw a 14% increase in its shares during lunchtime trade.
In addition to adding service between Seattle and Seoul in October, the airline announced Tuesday that it will start operating flights between Seattle and Tokyo’s Narita International Airport in May.
Alaska stated that it intends to use Hawaiian-owned big planes, which it purchased this year for $1 billion plus assumed debt, to operate flights from Seattle to at least a dozen foreign locations by 2030.
Due to better-than-expected reservations in November and December, the airline increased its fourth-quarter earnings outlook from 20 to 40 cents per share to 40 to 50 cents per share. This prediction came after American Airlines and Southwest Airlines announced similar improvements last week, citing high demand for leisure travel.
The Associated Press
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