- Alaska Air Group Inc. (NYSE: ALK), the parent company of Alaska Airlines Inc. and Horizon Air Industries Inc, provided updates on its long-term growth strategy.
- Alaska plans to grow an average of 4-8% per year through 2025, in part by investing in the depth of its network.
- The company plans to accelerate the transition of its fleet of 300+ aircraft to all Boeing Co (NYSE: NYSE:BA) 737 for its mainline operations and all Embraer SA (NYSE: ERJ) E175 jets for regional by the end of 2023.
- The company is also converting two passenger 737-800s to freighters, bringing the total freighter fleet to five.
- Related: Alaska Airlines Offers Flight Attendants Double Pay To Ease Staffing Shortage: CNBC
- The company announced infrastructure improvements for four main hubs, Seattle, Portland, San Francisco, and Los Angeles. It expects the investments to total $2.3 billion in infrastructure upgrades.
- Alaska Air also extended its co-branded credit card agreement with Bank Of America Corp (NYSE: BAC) through 2030. The companies intend to announce additional benefits in the second half of 2022 to elevate their loyalty program for cardholders.
- Also Read: Alaska Air Reports Q4 Results, EPS Misses Street View
- FY22 Outlook: Alaska Air expects capacity to be up 1% to 3%, CASM ex-fuel up 3% - 5%, and capital expenditures of $1.6 billion - $1.7 billion.
- Price Action: ALK shares are trading higher by 3.01% at $55.75 on the last check Thursday.
Read at Benzinga