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Alaska Airlines takes delivery of our first longer-range Boeing 737-8

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Alaska Airlines (ALK) welcomes delivery of the first Boeing 737-8 as part of its strategic fleet plan for future growth, with firm orders for 80 more 737 MAX aircraft and options for another 105. The airline plans to add 15-25 new Boeing aircraft annually from 2024 to 2027, with the first 737-10 scheduled for delivery in 2025. The new aircraft will enable Alaska Airlines to fly longer nonstop routes and maximize revenue potential, with plans to launch new nonstop Anchorage-New York JFK seasonal route in 2024. Alaska's regional carrier, Horizon Air, will add nine new Embraer E175s over the next three years. The airline is also investing $130 million to overhaul the cabins of its 737-800 aircraft for a more consistent guest experience.
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The expansion of Alaska Airlines' fleet with the introduction of the Boeing 737-8 and the upcoming 737-10 models signifies a strategic move to enhance operational efficiency and capitalize on market opportunities. This development is poised to impact the airline's market positioning by offering extended nonstop routes, which could bolster Alaska Airlines' competitive edge in the U.S. airline industry.

By analyzing current market trends, we can infer that Alaska Airlines' investment in newer, fuel-efficient aircraft may lead to cost savings in the long run due to reduced fuel expenditure and maintenance costs. Additionally, the uniformity in cockpit design and components across the new models may streamline pilot training and maintenance procedures, potentially leading to further operational efficiencies.

Furthermore, the airline's decision to refresh the 737-800 fleet aligns with consumer preferences for modern and comfortable in-flight experiences, which can enhance brand loyalty and customer satisfaction. These upgrades may also allow Alaska Airlines to command premium pricing on routes operated by these aircraft.

The financial implications of Alaska Airlines' fleet expansion and cabin upgrades are multifaceted. The firm order of 80 Boeing 737 MAX aircraft, along with options for an additional 105, represents a significant capital expenditure. However, this investment is indicative of Alaska Airlines' confidence in future growth and its commitment to maintaining a young fleet.

From an investment perspective, the capital outlay for new aircraft and cabin refreshes, estimated at $130 million, must be scrutinized against the expected increase in revenue potential from new routes and enhanced customer experience. The airline's ability to finance these investments without adversely affecting its balance sheet will be critical for maintaining investor confidence.

Moreover, the long-term benefits of operating a more fuel-efficient fleet could be substantial, potentially leading to improved profit margins. Investors will closely monitor the execution of this strategic plan and its impact on Alaska Airlines' financial performance, particularly in terms of return on investment and earnings growth.

The introduction of the Boeing 737-8 and the anticipation of the 737-10 into Alaska Airlines' fleet reflects a broader industry trend towards modernization and fuel efficiency. The 737 MAX series, despite its initial setbacks, is known for its advanced aerodynamics and more efficient engines, which can translate into lower operating costs and reduced environmental impact.

The decision to operate the longest flight between Anchorage and New York JFK with the 737-8 showcases the aircraft's range capabilities and Alaska Airlines' intent to leverage this for strategic route expansion. This could potentially open up new markets and increase the airline's share in transcontinental travel.

Alaska Airlines' approach to fleet commonality, with shared cockpits and components among the 737-8, -9 and -10 models, is a strategic move that can reduce training costs and simplify fleet management, providing a competitive operational advantage in the industry.

New aircraft is part of our strategic fleet plan that emphasizes growth

SEATTLE, Jan. 4, 2024 /PRNewswire/ -- Alaska Airlines continues to grow as we welcome delivery of the first Boeing 737-8 to our aircraft lineup – the next component of our strategic, long-term fleet plan that builds on our strengths and provides a road map for ongoing future success.

We proudly fly the youngest fleet of all U.S. airlines, and from 2024 through 2027, we are on track to add 15-25 new Boeing aircraft each year. We currently have firm orders for 80 more 737 MAX aircraft, and options and purchase rights for another 105. Our first 737-10 is scheduled for delivery in 2025.

"The addition of the 737-8 and eventually the 737-10 to our fleet creates new opportunities for us to fly longer nonstop routes and maximize our revenue potential," said Nat Pieper, senior vice president of fleet, finance and alliances at Alaska Airlines. "We have achieved terrific results with the 737-9 in guest satisfaction, economics and fuel efficiency, and we are excited for our future with the other 737 models."

In March 2022, Alaska adjusted our existing 737-9 aircraft order with Boeing to include the bigger 737-10 and longer-range 737-8. The additional 737 models will enhance profitability and guest satisfaction by offering us more ways to deploy the optimal aircraft size and capability in each market we fly.

For example, we will add our new nonstop Anchorage-New York JFK seasonal route with the 737-8, launching June 13, 2024. Anchorage-JFK (at 3,386 miles) will become the longest flight Alaska operates, creating nonstop convenience between two of the most popular cities in our network.

Alaska's aircraft orders

Model

Delivered
to date

Target
Mix

Aircraft
Seats

Role in Alaska's Fleet

737-10

---

120-140

190

This model will be the largest, most efficient aircraft in our fleet

737-9

65

80

178

Ideal aircraft for long-haul, high-demand routes

737-8

1

20-40

159

Longest-range 737 best for high-performance and medium-sized markets

Alaska is scheduled to take delivery of seven more 737-8s in 2024, with the next four slotted to enter the fleet in March. The 737-8, -9 and -10 all offer a common cockpit, common engines, and similar components.    

Alaska's regional carrier, Horizon Air, also continues to grow its fleet of jets. Over the next three years, Horizon will add nine new Embraer E175s, bringing its total to 50 by the end of 2026. Alaska's regional partner SkyWest also operates 42 E175s on our behalf. Our combined fleet size of mainline and regional jets is currently 310.

Our guests will soon enjoy refreshed updates to our 737-800 aircraft. With modifications beginning in late 2024, we are investing $130 million to overhaul those cabins.

"It's more important than ever that we deliver a consistent product to our guests," said Todd Traynor-Corey, managing director of guest products at Alaska Airlines. "The updates we're making to our older Boeing aircraft will provide a more consistent guest experience on our Boeing fleet by making the cabins look and feel more like our 737-9 and 737-8 aircraft."

The enhancements to the -800s include a move to a 161-seat configuration with 16 seats in First Class and new seats in Premium Class and main cabin, all while maintaining the same space our guests are accustomed to right now.

The new First Class seats feature a footrest and seatback device holder, allowing our guests to relax in industry-leading seat pitch that is worth talking about: We are the only U.S. airline with an average of 40" pitch in First Class and 35" in Premium Class across our mainline fleet. Guests can expect these same improvements to be featured on new 737-8 deliveries beginning in the second half of 2024 with retrofits coming to the first five aircraft at a later date.

Since modifications of the new configuration are expected to be completed in 2026, a subset of the -800s will receive a refresh of the existing cabin in the first half of this year to improve the guest experience.

About Alaska Airlines
Alaska Airlines and our regional partners serve more than 120 destinations across the United States, the Bahamas, Belize, Canada, Costa Rica, Guatemala and Mexico. We offer our guests a premium flying experience with award-winning customer service and an industry-leading loyalty program, Mileage Plan. With our fellow oneworld Alliance members and additional global partners, our guests have more choices than ever to purchase, earn or redeem on alaskaair.com across 30 airlines and more than 1,000 worldwide destinations. Learn more about Alaska at news.alaskaair.com and follow @alaskaairnews for news and stories. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group. 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/alaska-airlines-takes-delivery-of-our-first-longer-range-boeing-737-8-302026022.html

SOURCE ALASKA AIRLINES

FAQ

How many Boeing 737-8 aircraft has Alaska Airlines ordered?

Alaska Airlines has firm orders for 80 Boeing 737 MAX aircraft and options for another 105.

What is the delivery schedule for Alaska Airlines' first Boeing 737-10?

The first 737-10 is scheduled for delivery in 2025.

What new route will Alaska Airlines launch with the Boeing 737-8?

Alaska Airlines will launch a new nonstop Anchorage-New York JFK seasonal route in 2024 using the 737-8.

How many new Embraer E175s will Horizon Air add to its fleet?

Horizon Air will add nine new Embraer E175s to its fleet over the next three years.

How much is Alaska Airlines investing to overhaul the cabins of its 737-800 aircraft?

Alaska Airlines is investing $130 million to overhaul the cabins of its 737-800 aircraft.

Alaska Air Group, Inc.

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About ALK

alaska airlines has been flying since 1932 and is notably recognized as a stand-out performer among domestic carriers in the united states. we provide an exceptional travel experience to our customers with an unwavering commitment to a safe and reliable operation and our award-winning customer service. we were born in a state where aviation is a way of life, not a choice, and where people help each other because they believe it's the right thing to do — not because they're supposed to. much has changed over the years, but our unique heritage continues to serve as our compass point — our own magnetic "north." our values have been a part of who we are since our early beginnings in the state of alaska. we believe this combination of pride in our heritage and passion for our shared values has led to our success in setting the standard for genuine and caring service. alaska airlines and our sister carrier, horizon air, together serve 90 destinations in the lower 48, alaska, hawaii, ca