Alaska Airlines reports growth strategy amid slowdown and ongoing merger

Alaska Airlines, like other carriers, experienced decreased travel demand in the first quarter, resulting in a net loss. However, executives remain optimistic. Chief Commercial Officer Andrew Harrison remarked, "Overall bookings have stabilized as we look forward, albeit at lower yields than we had planned."

Amid changing travel patterns, Alaska's investment in premium offerings paid off. Revenue from first-class and premium economy seats outpaced that from standard economy during the first quarter. The airline is retrofitting its fleet of Boeing 737s to increase the number of premium seats.

Additionally, Alaska Airlines is moving forward with its integration with Hawaiian Airlines. The company plans to receive a single operating certificate from the Federal Aviation Administration by the end of 2025 and aims for Hawaiian to switch to Alaska's reservation system by mid-2026.

Despite recent route changes in California, Alaska maintains that the state remains key to its strategy. The airline cut several longer routes from Los Angeles and San Francisco but expanded in San Diego, where it plans to operate 90 peak-day departures by October.

Alaska’s growth in San Diego aligns with its loyalty strategy. Harrison noted that the city shows the "highest average card spend" among California markets. "San Diego has just performed very, very well on our growth," he stated. "That's a place we're going to continue to invest in."