Alaska Air Group aims to boost Airbus A321neo use after merging with Hawaiian

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Alaska Air Group aims to boost Airbus A321neo use after merging with Hawaiian

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Alaska Airlines Boeing | Wikimedia

By Sky Industry News

Jan 24, 2025

Alaska Air Group, which oversees Alaska Airlines and Hawaiian Airlines, is set to enhance its Airbus A321neo operations this year. The company is working towards a unified operating certificate for both airlines while managing the transition back to a mixed fleet of Airbus and Boeing aircraft.

After retiring its own A321neo planes nearly two years ago in favor of an all-Boeing fleet, Alaska now faces a change in strategy following its merger with Hawaiian Airlines. This $1.9 billion acquisition was crucial for Hawaiian Airlines, providing much-needed financial support as it faced significant losses.

During a recent earnings call, Alaska Air Group reported record revenues of $11.7 billion despite a $200 million loss linked to the 737 MAX 9 issues. The focus for 2025 includes increasing capacity and improving fleet utilization to boost profits further.

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Shane Tackett, Executive Vice President of Finance and Chief Financial Officer at Alaska, noted that "Hawaiian’s A321neo usage should ramp up this year" alongside new Boeing aircraft deliveries and the retirement of older 737-900 models. Tackett expects "a material increase in Hawaiian asset utilization."

The A321neos have been pivotal in Hawaiian's network but have faced challenges due to engine recalls from Pratt & Whitney's PW1100G engines. These recalls led to mandatory inspections that disrupted flight schedules last year.

Looking ahead, Tackett expressed optimism about revenue per available seat mile (RASM) outperforming cost per available seat mile (CASM). He anticipates benefits from increased synergy capture and improved utilization of the A321 fleet.

Alaska's CEO Ben Miniucci highlighted their experience with integrating different aircraft types following their past acquisition of Virgin America. While no new Airbus orders are planned, Alaska will expand its Boeing fleet with additional 737 MAXs and Dreamliners this year.

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