At the beginning of this month, we let down some of our valued guests by canceling an unusual number of flights. To all of you who were impacted, we are deeply sorry. We put you in a frustrating situation—most likely when you were looking to take a fun trip, family vacation or needed to get somewhere important to you. We must do better. Over the last few days, we looked at how we got here, and are taking action to get back on track. We’re committed to being the airline you love.
Sharing what happened and what we’re doing about it doesn’t fix upended plans, but we value our relationship with our guests, and that means being transparent with you when we fall short.
How we got here
With travelers taking to the skies again, all airlines are focused on recruiting and training more pilots, Alaska included. We’re excited to grow more pilot careers, especially after more than 10,000 pilots left the airline industry during the pandemic. To bring new pilots into our ranks, we launched a new pilot academy, founded a program to develop and support BIPOC pilots and continue to support the careers of pilots that want to move from our regional carrier Horizon Air to a job at Alaska.
When pilots come to Alaska Airlines, we want them to have the best training in the business. That takes time and cannot be rushed.
Unfortunately, during the first few months of 2022, a backlog built up in our training program. Trainings were canceled and delayed due to student or trainer illness during the Omicron surge and due to the operational impact of winter storms, and they were not rescheduled fast enough.
At the same time, we typically schedule our flight crews three months in advance. But due to the training delays, we had 63 fewer pilots prepared to fly in April than we planned for in January.
We should have recognized this sooner and updated our schedule.
Securing a new contract for our pilots
It’s important to clarify that our pilots are not on strike. As part of standard contract negotiations, our pilots planned an informational picket on Friday April 1 to share their views, and we respect their right to do so. This informational picket was not the cause of our cancelations. We’re committed to reaching an agreement for a contract that is good for our pilots, recognizes their contributions to Alaska, and supports the company’s ability to grow for all 22,000 Alaska and Horizon employees and all who depend on us. To that end, the proposal we recently offered is the highest contractual investment we’ve ever proposed in our history and would make our first officers the highest paid in the industry.
Moving forward
We are making immediate changes to ensure you can count on us to get you where you want to go. There are some aspects to our post-pandemic world that create new challenges, but we can get more disciplined about how we manage them and adapt:
Short-term corrections
We are through the worst of the cancelations. We’re reducing about 2% of our total flights through the end of June to match our current pilot capacity. These reductions will be reflected in our posted schedule in mid-April. In the meantime, reductions will show up as cancelations.
We will do everything we can to minimize disruptions to your plans and we will let you know in advance if your itinerary is impacted by these schedule adjustments. For those who are impacted, the unique phone number in your message from us will get you to someone who can help without an extended wait.
Improving pilot training graduation rates
We will graduate more than 30 pilots this month, and even more in May. A dedicated team has been deployed to ensure training events are rescheduled faster and ensure we better match our schedule to the number of pilots we have available to fly. We doubled the capacity of our pilot schoolhouse since the fall and are training more trainers.
Our employees, guests and partners continue to make us better every day. When we fall short, you can trust that we will be transparent, apologize and work to correct it as quickly as possible. As we make progress, we will update you regularly in the months ahead.
We fly airplanes with great care so that you can have great adventures, connect with loved ones, run your business and go where you need to go. And we’re committed to doing that reliably for many years to come.
As always, thank you for flying with us.
Alaska joins ranks of TIME100 most influential companies for sustainability
Just in TIME for Earth Month, we are so proud to land a coveted spot on TIME’s list of the 100 Most Influential Companies of 2022 for our work in sustainability. Today, TIME revealed the second annual TIME100 Most Influential Companies list and Alaska Airlines is on it for making ambitious gals to reach net zero by 2040.
Alaska has a long history in environmental responsibility, and this honor reflects continued effort from people across the company to minimize fuel burn, reduce emissions, recycle, innovate, and avoid waste. All these actions work together to help us be a better, more efficient airline,” said Diana Birkett Rakow, SVP of public affairs & sustainability. “There’s a lot of work still ahead to be as efficient as possible.”
Alaska was selected because of our commitment to making meaningful changes in the climate impact of aviation. This is all part of caring for people, the places we fly and the communities we serve. Throughout the last 12 months, we’ve put a range of initiatives into action to ensure we’re driving forward innovation in sustainability and the industry.
South Pacific airline starts new nonstop service between Seattle and French Polynesia this fall; Mileage Plan members can earn and redeem miles for flights to aspirational destinations
With more of us ready to venture out once again to incredible international locations, Alaska Airlines announced today that Air Tahiti Nui is our newest global airline partner – opening a world of adventure, fun and relaxation in the islands of Tahiti.
Beginning Oct. 4, Air Tahiti Nui will begin new nonstop service between our hometown airport in Seattle and Papeete, the capital of French Polynesia located on its main island Tahiti. From there, the possibilities are endless for escapes to dozens of other nearby islands.
Alaska is a member of the oneworld global alliance. With oneworld and our additional airline partners—like Air Tahiti Hui—our guests can earn and redeem miles with our highly acclaimed Mileage Plan program to fly on more than 20 oneworld and partner airlines all around the globe.
“Who hasn’t dreamed of visiting Bora Bora? We’re delighted to have Air Tahiti Nui join our array of global airline partners, further connecting the West Coast to the South Pacific,” said Nat Pieper, senior vice president of fleet, finance and alliances for Alaska Airlines. “Our guests are going to love the convenience of a nonstop flight to this amazing destination on an airline that offers world-class service and amenities flying the beautiful Boeing 787-9 Dreamliner aircraft.”
It is with great enthusiasm that we are launching this new direct service to the Pacific Northwest. This will help the further development of tourism to French Polynesia, including from the market of Western Canada. Alaska Airlines is the perfect partner for this, and we are looking with great excitement at the new commercial opportunities that lay ahead. This will strongly reinforce the position of Air Tahiti Nui as the leading airline for services to and from Tahiti,” said Mathieu Bechonnet, managing director at Air Tahiti Nui.
New Air Tahiti Nui service:
Starts
City Pair
Departs
Arrives
Frequency
Aircraft
Oct. 4, 2022
Papeete (Tahiti) – Seattle
10:00 p.m.
10:25 a.m. +1 day
Tues, Sat
787-9
Oct. 5, 2022
Seattle – Papeete (Tahiti)
12:40 p.m.
7:30 p.m.
Wed, Sun
787-9
Air Tahiti Nui has existing daily nonstop service between Papeete and Los Angeles, an additional key Alaska hub airport on the West Coast. There’s also another flight for our guests to get excited about: Air Tahiti Nui, with its historical connection to France, provides nonstop service between Los Angeles and Paris – an extremely popular route between two world cities.
Starting April 1, Alaska’s Mileage Plan members can earn miles on all Air Tahiti Nui flights. (Please allow 6-8 weeks for miles to post in Mileage Plan accounts.) Mileage redemption for Air Tahiti Nui flights is expected to be available later this spring. Tickets for Air Tahiti Nui flights can be purchased now on the airline’s website.
From our employees: What more inclusive gender-neutral uniforms and policies mean for bringing our best selves to work
Photos by Ingrid Barrentine | Story by Ali Garbino, Alaska Airlines
Monique “Mo” wears her Alaska Airlines uniform with immense pride. She ties her tie, buttons her shirt, puts on her pants one leg at a time and steps into her dress shoes. It’s not common to see a female flight attendant wearing a male uniform, but it’s what Mo feels best in.
This is what it means to care – to ensure everyone can bring their best and most authentic selves to work and to be an inclusive and welcoming environment for employees and guests alike. That’s the journey we’re on, and the future of Alaska Airlines.
In partnership with our employees, we have updated our uniform guidelines, effective today, to provide more freedom and flexibility in individual and gender expression.
I love who I am and refuse to make myself smaller in order to be accepted. This is one thing that I can’t compromise over,” said Monique “Mo,” she/her, Alaska flight attendant based in San Diego. “We all want to look professional, and we all want to be ourselves at the same time—your gender shouldn’t define what you wear or how you look.”
We are also developing new, gender-neutral uniform pieces for our frontline employees, including flight attendants, customer service agents, and uniformed lounge employees, working with Seattle designer Luly Yang and with input from employees.
With these changes, fingernail polish, makeup, two earrings per ear, and a single stud nose piercing are expression options available to all employees. We’ve also updated our grooming policies to allow tattoos in more locations, more hair style options and are adjusting the names of our uniform kits to be focused on fit vs. gender identifications.
“Updating our uniform policy shows people without telling them, what Alaska’s values are,” said Tim, he/him, a flight attendant with Alaska for 17 years. “Showing people who we are is just as important as telling them.”
Tim C., he/him, flight attendant based in Los Angeles
Alaska gets it and we’re making the right choices and moving in the right direction,” says David, he/him, lounge concierge. “It’s what I expect from Alaska/Horizon. We do the right thing. It’s part of our culture.”
David, who works in Alaska’s JFK Lounge and models part-time in New York, says choices like these reaffirm he’s chosen the right career path.
“This is so important not only for the well-being of our employees, but also as a company,” said David. “It allows us to focus on what we can do for each other and what we do for our guests while being the best employees that we can be.”
This is an important step on a continued journey to be more inclusive, and there’s more work ahead. We will continue to look at our policies, programs and practices to ensure we live our values and create a place where everyone feels they belong.
David, he/him, JFK Lounge
“I know firsthand what it feels like not to be seen, heard or able to bring your authentic self to work. When I’ve experienced this, it didn’t feel great and honestly made it hard to come to work every day during those times, or to deliver my best work,” said James Thomas, director of diversity, equity and inclusion at Alaska. “Our employees, guests and communities we serve have my commitment we are going to keep listening and pushing ourselves to be better.”
Eager to always live their best life, Jason, an Alaska flight attendant by day and drag star by night, says the best thing a person can do when they don’t understand someone is to treat them with kindness and put themselves in their shoes.
Jason shared they chose to come out at their senior prom. They slipped on a dress while their mom was out of the house and went to the dance. There, they were called a disgrace and accused of seeking attention. “I didn’t do it to make anyone uncomfortable or to be the first,” Jason said. “I did it for me, and that’s all that matters.”
Jason says while the uniform changes are very positive, they also appreciate and look forward to the company’s support if faced with adversity among peers or guests who may find it difficult to see them wearing nail polish.
Jason, they/she/he, Alaska flight attendant
Me wearing something that makes me happy and expresses my fashion sense should have no bearing on how you treat me as an individual,” Jason said. “We are all human beings and should treat each other with kindness.”
Nesha, she/her, customer service agent in Portland
“I believe having the ability to have some form of self-identity is amazing,” says Nesha, she/her, customer service agent in Portland. “Allowing tattoos and nose rings as well as gender-neutral pieces is what makes Alaska such a great and inclusive company that everyone loves. By far THE best job I’ve ever had, and I can’t wait to see where my future takes me!”
Welcoming personal pronouns
Work continues to enable our guests to have the option to choose their personal pronouns while booking travel by the end of 2022. In the meantime, we’ve created personal pronoun pins that each employee has the option to wear with their uniform.
“I answer to all pronouns,” says Isaac, a lead customer service agent in Washington D.C. “I accept he/him/his, she/her/hers, and they/them/theirs. I feel that there has been greater awareness and sensitivity to personal pronouns, and I love that. But I’m also cognizant that changes take time and I want our society to feel comfortable with how they view and communicate with me.”
Isaac, he/him/his, she/her/hers, and they/them/theirs, lead customer service agent
Isaac added that this is an exciting time for the company and these policy changes are most meaningful for them because they represent freedom to be who they are.
I applaud Alaska Air Group for having the courage to move forward with creating a more inclusive and diverse workplace,” said Isaac. “Celebrating uniqueness so that all teammates feel accepted and, in some ways, celebrated, brings me pure joy.”
Alaska Air Group and Bank of America Renew Long-Term Partnership Agreement
Expanded Partnership will Further Drive Credit Card Acquisition and Loyalty; Strengthened Benefits to be Introduced in the Second Half of 2022
New York — Alaska Air Group Inc. (NYSE: ALK) and Bank of America (NYSE: BAC) today announced an extension of their co-branded credit card agreement through 2030. The renewed agreement strengthens a powerful industry partnership that has endured over decades, meaningfully expands guest benefits, and further accelerates both companies’ strategic growth plans in key West Coast geographies.
Our partnership with Bank of America has been key to strengthening Alaska’s brand recognition and building unparalleled customer loyalty. This extension of our relationship with Bank of America will continue to provide our guests meaningful ways to enhance their travel experience with us,” said Ben Minicucci, Chief Executive Officer of Alaska. “Over time, we will continue to invest in value-added benefits for our cardholders, while consistently providing them with remarkable service in line with our culture of care.”
“We are excited to announce this multi-year extension of our partnership with Alaska Airlines,” said Dean Athanasia, President of Regional Banking for Bank of America. “This relationship continues to unlock growth opportunities for both Alaska and Bank of America, while driving greater loyalty and engagement with Alaska’s customers.”
Alaska Airlines’ co-branded credit card with Bank of America currently offers cardholders the airline industry’s most generous loyalty rewards program, including Alaska’s Famous Companion FareTM, free checked bag, the opportunity to earn 3x the miles on eligible Alaska purchases, oneworld® Alliance mile redemptions, 50 percent discount on day passes for Alaska Lounge access, 20 percent back on all inflight purchases and many other travel benefits.
In the second half of 2022, Alaska and Bank of America intend to announce additional benefits to further elevate its loyalty program for cardholders, while driving long-term value for both companies.
—
About Alaska Air Group
Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize Next-Level Care for our guests, along with providing low fares, award-winning customer service and sustainability efforts. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, guests can travel to more than 1,000 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).
About Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with more than 54 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Alaska Air Cargo expands freighter fleet with addition of two aircraft
Alaska Air Cargo will convert two Alaska Airlines passenger jets to an all-freight aircraft for cargo service in 2023
Five dedicated 737 freighters to meet cargo demand across the Alaska network
NEW YORK — Alaska Air Cargo announced today it will add two Boeing 737-800 aircraft to its dedicated freighter fleet serving the state of Alaska. These additions increase the freighter fleet from three to five aircraft.
Fleet expansion positions our growing cargo business to meet increased demand that we see from industry and consumers,” said Adam Drouhard, managing director for Alaska Air Cargo. “The -800 aircraft provides more load space than our current -700 freighters, essentially doubling Air Cargo’s total freighter lift capacity. We look forward to getting these -800s into service to support Alaska’s supply chain and connect cargo to over 100 cities we serve across North America.”
The two 737-800 converted aircraft will come from Alaska Airlines existing passenger fleet. The planes will be converted from their passenger configuration to an all-freight aircraft beginning this year. They’re projected to re-enter service as freighters in 2023.
The -800 aircraft provides a 40% capacity increase per departure over the current -700 aircraft with a payload of nearly 50,000 pounds. With a range of 2,800 nautical miles, the -800 will be the most fuel-efficient aircraft to serve intra-Alaska.
Alaskans have always relied on Alaska Air Cargo to provide time-sensitive services to their communities,” said Marilyn Romano, regional vice president, Alaska Airlines. “Whether it is vaccines, medicine, household supplies or fresh food, our freighters keep rural Alaska supplied and connected. With service to 20 communities across Alaska, and only three accessible by road, adding new aircraft to the current freighter fleet allows expansion of our vital services to all Alaskans. The additional freighter capacity also allows us to quickly move seafood and other commodities from Alaska to points throughout the U.S.”
Alaska Air Cargo transports more than 200 million pounds of cargo annually – including seafood, mail, and freight – and operates the most extensive air cargo operation on the U.S. West Coast of any passenger airline.
—
About Alaska Air Cargo
Alaska Air Cargo serves over 100 destinations in North America with an extensive network and more than 1,200 daily flights. Providing a variety of reliable shipping services, Alaska Air Cargo utilizes a fleet of 737 freighters serving 20 communities in the state of Alaska as well as offering belly cargo service on a fleet of over 300 passenger planes serving the Continental U.S., Canada, Hawaii, Mexico and Costa Rica.
About Alaska Airlines
Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize Next-Level Care for our guests, along with providing low fares, award-winning customer service and sustainability efforts. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, guests can travel to more than 1,000 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).
Alaska Air Group provides update on long-term growth strategy
Company to host Investor Day in New York City today; unveils long-term financial frameworkand provides full-year 2022 outlook
NEW YORK – Alaska Air Group Inc. (NYSE: ALK), the parent company of Alaska Airlines Inc. and Horizon Air Industries Inc., today will host its Investor Day at 11:30 a.m. Eastern time.
During the event, Alaska Air Group will provide an update on its business performance and growth strategy, including successful pandemic recovery, industry outperformance in guest experience and financial strength, and its path forward for long-term value creation.
The people of Alaska and Horizon are the foundation of our company and their kind-hearted spirit is why travelers choose to fly with us time and again,” said Ben Minicucci, Chief Executive Officer of Alaska Air Group. “The care and industry-leading service they provide and the operational excellence they deliver have allowed us to build incredible loyalty and drive results.”
Yesterday, Aviation Week Network’s Air Transport World (ATW) named Alaska the 2022 ATW Airline of the Year, the top honor awarded among the 48th Annual ATW Airline Industry Achievement Awards, citing the company’s unique strengths and leading performance.
We’re honored to be recognized by Air Transport World as the Airline of the Year – a testament to our people and to everything they’ve accomplished through the last few tumultuous years,” added Minicucci. “Throughout our history, Alaska has consistently outperformed the industry, and we’re well positioned to continue that trend, leveraging loyalty, alliances, network growth and our brand to unlock significant value and deliver $400 million of incremental revenue as part of our 2025 strategic plan. Accelerating our transition to single fleets while upgauging for growth is also a key part of that strategy. We care about growth because it enables us to create value for all who depend on us: greater opportunities for our employees, new jobs and increased service to our communities, and returns for our owners.”
Runway for Profitable Growth
Members of Alaska’s leadership team will outline the competitive advantages that underpin the company’s industry-leading performance and strategic growth plan:
1. Adding depth to our expansive network:
Alaska plans to grow an average of 4-8% per year through 2025, in part by investing in the depth of its network. Alaska’s 1,200 flights per day take our guests to 120 destinations across North and Central America, including nonstop flights to transcontinental business routes and four Hawaiian Islands. Alaska’s network has consistently produced industry-leading margins throughout its history and its measured approach to bringing capacity back post-pandemic enabled a return to profitability ahead of the industry. Together with the airline’s global partners in the oneworld® Alliance, guests can reach over 1,000 destinations while earning and redeeming miles on flights to locations around the world.
2. Operating a single, more efficient fleet:
Today, the company will share plans to accelerate the transition of its fleet of 300+ aircraft to all-Boeing 737 for its mainline operations and all-Embraer E175 jets for regional, by the end of 2023. Consistent with Alaska’s low-cost high productivity mindset, these transitions are expected to drive significant economic benefits. As the fleet grows to 400 aircraft by mid-decade, these will manifest through operational simplicity, flexibility and scalability, better fuel efficiency and reduced maintenance costs. The company is also growing cargo business operations by converting two passenger 737-800s to freighters, bringing the total freighter fleet to five.
3. Delivering best-in-class care:
Care is the foundation of Alaska’s culture, fueled by its people and reflected in everything they do. It has earned the airline high guest satisfaction and long-term loyalty. The company will continue to invest in developing its people through its Pathways program, which cultivates talent from regional to mainline operations. In addition, it is developing the next generation of pilots and training existing employees for new jobs through its Ascend Pilot Academy. The company is also committed to making measurable progress on initiatives to advance diversity, equity and inclusion.
With care central to everything Alaska Airlines does, the company will continue to invest in end-to-end guest experiences that deliver on its brand promise. Today, the company announced infrastructure improvements for four of its main hubs – Seattle, Portland, San Francisco and Los Angeles.ents total $2.3 billion in infrastructure upgrades that will provide a more seamless and enjoyable travel experience for guests and provide access to more gates and state-of-the-art lounges and lobbies.
4. Growing Alaska’s award-winning loyalty program with a renewed co-branded partnership:
Alaska and Bank of America today announced an extension of their co-branded credit card agreement through 2030. This agreement will enhance benefits for guests and drive improved profitability for the airline. Alaska’s Mileage PlanTM is the industry’s most generous loyalty rewards program, with miles earned based on flight distance rather than dollars spent and ability to earn and redeem to over 1,000 global destinations as part of the oneworld Alliance.
Alaska’s co-branded credit card with Bank of America currently offers cardholders Alaska’s Famous Companion FareTM, free checked bag, the opportunity to earn 3x the miles on eligible Alaska purchases, 50 percent discount on day passes for Alaska Lounge access, 20 percent back on all inflight purchases and many other travel benefits.
5. Preserving a resilient business model for long-term value creation:
Alaska’s legacy of industry outperformance is guided by strong principles for management and performance. Today, the company published the guidelines that drive its financial sustainability and performance, providing additional transparency around its financial management principles and capital allocation approach. Key components include:
Generating returns on capital that consistently exceed the industry and the company’s cost of capital
Managing the business and allocating capital with a long-term perspective and a consistent set of priorities
Placing a high value on producing free cash flow consistently and sustainably
6. Sustainable on all fronts:
Alaska’s commitment to long-term value includes prioritized ESG commitments to increase diversity at all levels, to reduce the company’s impact on the climate, and to provide transparent accountability on key environmental, social and governance parameters. Last year, the airline set ambitious, but attainable sustainability goals, including being the most fuel-efficient U.S. airline and reaching net-zero carbon emissions by 2040. Further embedding these commitments into its culture, Alaska has linked a portion of its annual performance-based pay plan for all employees to the carbon intensity of the operation, and a portion of executives’ compensation to achieving stronger BIPOC representation in leadership.
Full Year 2022 Outlook
Alaska’s team is committed to outperforming the industry, even while navigating a choppy pandemic recovery and near-term economic volatility,” said Shane Tackett, executive vice president finance and Chief Financial Officer of Alaska Air Group. “As people return to travel, they are choosing Alaska. And thanks to the caring spirit of our people, when guests try us, they tend to come back. We are excited for the path ahead and confident in our ability to continue creating value for our employees, guests, communities and shareholders.”
As detailed in the company’s fourth quarter 2021 and full-year results, Alaska’s 2022 outlook includes the following metrics:
Key Metric
Range*
Capacity
2%-6%
CASM ex-Fuel (Excluding fleet transition costs and lease return expense)
1%-3%
Capital Expenditures
$1.6 billion to $1.7 billion
*Range increases are compared to 2019 levels
Webcast Information
Alaska’s Investor Day presentation will be available via webcast at https://investor.alaskaair.com from 11:30 a.m. Eastern time, concluding at approximately 2:30 p.m. Eastern time. The webcast and presentation materials can be accessed through Alaska’s investor relations website. A replay of the webcast will be available following the event.
—
About Alaska Air Group
Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize Next-Level Care for our guests, along with providing low fares, award-winning customer service and sustainability efforts. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, guests can travel to more than 1,000 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).
Forward Looking Statements
This presentation may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by our forward-looking statements, assumptions or beliefs. For a comprehensive discussion of potential risk factors, see Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Some of these risks include competition, labor costs, relations and availability, general economic conditions including those associated with pandemic recovery, increases in operating costs including fuel, inability to meet cost reduction, ESG and other strategic goals, seasonal fluctuations in demand and financial results, supply chain risks, events that negatively impact aviation safety and security, and changes in laws and regulations that impact our business. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed in our most recent Form 10-K and in our subsequent SEC filings. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements made today to conform them to actual results. Over time, our actual results, performance or achievements may differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, assumptions or beliefs and such differences might be significant and materially adverse.
We’re investing billions in major improvements at our key airports to ensure you’ll have a great trip
At Alaska Airlines, we know it’s important to invest in our people (amazing employees) and products (new aircraft and onboard amenities), but also in the places we serve (airports). It all adds up to a great guest experience.
Approximately $2.3 billion in infrastructure upgrades are underway that guests will enjoy when traveling through our key hub airports along the West Coast. You might notice some of the renovations on your next trip as we continue to grow and fly to more places. Here’s a look at the work that’s happening now, or projects set to start soon:
SEA
The front door of where we welcome our guests at our hometown airport is set to get a major facelift.
We’ll begin the first phase of a major terminal project at Seattle-Tacoma International Airport this summer that will modernize and increase capacity in our ticketing area and at the security checkpoint to support our future growth. Once the project is complete, guests will enjoy a more open, light-filled space with fewer lines where it’s easier to move around.
Alaska Airlines is set to begin a major terminal project at SEA to modernize and expand our ticketing area in the front of the airport.
We’re excited to transform the conventional lobby into a modern, airy and easy-to-navigate space for our guests and employees,” said Shane Jones, vice president of real estate and airport development for Alaska Airlines. “This three-year project is the largest airport renovation in our history. It aims to support our innovation, sustainability and long-term growth plans at our hometown hub.”
As part of a new partnership with the Port of Seattle – which owns and operates SEA – Alaska is managing the overall $400 million project with the first, $149 million phase set to begin this spring; the total costs will be paid for by both Alaska and the Port. That’s in addition to the recently completed $700 million expansion and modernization of what was called the North Satellite (now the N Concourse) that serves mostly Alaska flights.
Also at SEA, we’re investing nearly $7 million for upgrades of our Lounges over the next two years. First up: a remodel and expansion of our C Concourse Lounge that’s scheduled to begin this spring. After that expanded Lounge opens, we’re planning a total overhaul of our D Concourse Lounge – its first renovation in nearly 20 years.
On the horizon, more big lounge news: As part of the Port of Seattle’s C Concourse Expansion Project, we’ll open an all-new Alaska Lounge in 2026. It will eventually become the primary Lounge for our guests departing from C and D Concourses.
SFO
At our key hub at San Francisco International Airport, we’re preparing for a big move as we continue growing in the Bay Area.
In 2024, we’re scheduled to relocate our entire operation at SFO – including our check-in ticket counter, gates and baggage services – from Terminal 2 to Harvey Milk Terminal 1. This will allow us to be near flights for American Airlines and our other oneworld member airlines, which is convenient for guests who have connecting flights, including to international destinations. Plus, the new gates will give us shorter taxi times and faster access to the runways – saving time and burning less fuel.
Alaska Airlines is scheduled to move all our operations at SFO, including arrival and departures gates, to the new Harvey Milk Terminal 1 in 2024.
Harvey Milk Terminal 1 is, hands down, probably the coolest airport terminal in the nation,” said Tim Horn, director of station operations at SFO for Alaska Airlines. “Our guests and employees will love traveling through the open, modern space and especially enjoy all the eatery options that include popular Pacific Rim restaurants.”
There’s another huge benefit for us. Harvey Milk Terminal 1 is the newest terminal at SFO and uses 60% less energy than comparable facilities. Sustainability is close to our heart, so this is a perfect new home for Alaska: It’s the first airport terminal in the world to earn Leadership in Energy and Environmental Design (LEED) v4 Platinum certification for the design, construction and operation of high-performance structures.
Overall, Harvey Milk Terminal 1 is a $2.4 billion project with Alaska supporting a portion of that investment.
Our plans for the move in two years will also include a Lounge space at Harvey Milk Terminal 1. Alaska recently opened a new lounge in SFO in Terminal 2 in August 2021.
PDX
If you’ve flown to, from or through Portland International Airport lately, you might have noticed our new digs at the beautifully remodeled Concourse B, where most of the flights are regional ones operated by our sister carrier Horizon Air.
The new space – part of a replacement project that cost $115 million – is bigger, brighter and bolder with Pacific Northwest flair. The area is easier to get around, and massive floor-to-ceiling windows allows more sunlight to stream in and better views to see what’s going on outside. Upgraded technology has been added throughout the concourse including hundreds of power outlets and faster Wi-Fi.
A concept rendering of the new makeover of the Alaska Lounge in Portland this year.
Also underway in the coming years at PDX: The completion of a $1.6 billion fully remodeled and expanded main terminal that’s currently in construction by the Port of Portland. It’ll be spacious with a big nod to Pacific Northwest green sustainability. Our guests will enjoy an expanded lobby with a faster, more streamlined check-in process, and additional dining and retail options. Expanded security checkpoints will make it easier to get to your gate.
We’re also investing nearly $1.5 million for Lounge upgrades in Portland for 2022. We’ll enlarge our current space by 1,000 square feet with the addition of an enclosed patio area. Work begins in the spring and it’s scheduled to be completed this summer. We’re also adding a temporary ‘express lounge’ this summer at Concourse B. Then we go really big: A brand-new, 14,000 square foot Lounge will replace our current facility in 2025-2026.
LAX
At Los Angeles International Airport, improvements totaling $230 million are well underway at Terminal 6 where Alaska is the primary airline. The project is modernizing the guest experience with a complete overhaul of the gate areas, including new carpet, lighting, seating with power outlets and signage.
The guest experience is at the heart of everything we do, and the focus of this project is to improve every step of the journey,” said Jones. “From modern expanded gate areas with powered seating, to improving our operational performance with key infrastructure upgrades, including two new gates, this investment is all about the Alaska guest.”
The work at LAX will continue in phases through 2023 with the addition of 20% more gates and more than 15,000 square feet of space.
Alaska Air Group and Bank of America Renew Long-Term Partnership Agreement
Expanded Partnership will Further Drive Credit Card Acquisition and Loyalty; Strengthened Benefits to be Introduced in the Second Half of 2022
New York — Alaska Air Group Inc. (NYSE: ALK) and Bank of America (NYSE: BAC) today announced an extension of their co-branded credit card agreement through 2030. The renewed agreement strengthens a powerful industry partnership that has endured over decades, meaningfully expands guest benefits, and further accelerates both companies’ strategic growth plans in key West Coast geographies.
Our partnership with Bank of America has been key to strengthening Alaska’s brand recognition and building unparalleled customer loyalty. This extension of our relationship with Bank of America will continue to provide our guests meaningful ways to enhance their travel experience with us,” said Ben Minicucci, Chief Executive Officer of Alaska. “Over time, we will continue to invest in value-added benefits for our cardholders, while consistently providing them with remarkable service in line with our culture of care.”
“We are excited to announce this multi-year extension of our partnership with Alaska Airlines,” said Dean Athanasia, President of Regional Banking for Bank of America. “This relationship continues to unlock growth opportunities for both Alaska and Bank of America, while driving greater loyalty and engagement with Alaska’s customers.”
Alaska Airlines’ co-branded credit card with Bank of America currently offers cardholders the airline industry’s most generous loyalty rewards program, including Alaska’s Famous Companion FareTM, free checked bag, the opportunity to earn 3x the miles on eligible Alaska purchases, oneworld® Alliance mile redemptions, 50 percent discount on day passes for Alaska Lounge access, 20 percent back on all inflight purchases and many other travel benefits.
In the second half of 2022, Alaska and Bank of America intend to announce additional benefits to further elevate its loyalty program for cardholders, while driving long-term value for both companies.
—
About Alaska Air Group
Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize Next-Level Care for our guests, along with providing low fares, award-winning customer service and sustainability efforts. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, guests can travel to more than 1,000 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).
About Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with more than 54 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Alaska Air Cargo expands freighter fleet with addition of two aircraft
Alaska Air Cargo will convert two Alaska Airlines passenger jets to an all-freight aircraft for cargo service in 2023
Five dedicated 737 freighters to meet cargo demand across the Alaska network
NEW YORK — Alaska Air Cargo announced today it will add two Boeing 737-800 aircraft to its dedicated freighter fleet serving the state of Alaska. These additions increase the freighter fleet from three to five aircraft.
Fleet expansion positions our growing cargo business to meet increased demand that we see from industry and consumers,” said Adam Drouhard, managing director for Alaska Air Cargo. “The -800 aircraft provides more load space than our current -700 freighters, essentially doubling Air Cargo’s total freighter lift capacity. We look forward to getting these -800s into service to support Alaska’s supply chain and connect cargo to over 100 cities we serve across North America.”
The two 737-800 converted aircraft will come from Alaska Airlines existing passenger fleet. The planes will be converted from their passenger configuration to an all-freight aircraft beginning this year. They’re projected to re-enter service as freighters in 2023.
The -800 aircraft provides a 40% capacity increase per departure over the current -700 aircraft with a payload of nearly 50,000 pounds. With a range of 2,800 nautical miles, the -800 will be the most fuel-efficient aircraft to serve intra-Alaska.
Alaskans have always relied on Alaska Air Cargo to provide time-sensitive services to their communities,” said Marilyn Romano, regional vice president, Alaska Airlines. “Whether it is vaccines, medicine, household supplies or fresh food, our freighters keep rural Alaska supplied and connected. With service to 20 communities across Alaska, and only three accessible by road, adding new aircraft to the current freighter fleet allows expansion of our vital services to all Alaskans. The additional freighter capacity also allows us to quickly move seafood and other commodities from Alaska to points throughout the U.S.”
Alaska Air Cargo transports more than 200 million pounds of cargo annually – including seafood, mail, and freight – and operates the most extensive air cargo operation on the U.S. West Coast of any passenger airline.
—
About Alaska Air Cargo
Alaska Air Cargo serves over 100 destinations in North America with an extensive network and more than 1,200 daily flights. Providing a variety of reliable shipping services, Alaska Air Cargo utilizes a fleet of 737 freighters serving 20 communities in the state of Alaska as well as offering belly cargo service on a fleet of over 300 passenger planes serving the Continental U.S., Canada, Hawaii, Mexico and Costa Rica.
About Alaska Airlines
Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize Next-Level Care for our guests, along with providing low fares, award-winning customer service and sustainability efforts. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, guests can travel to more than 1,000 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).
Alaska Airlines is starting up a tech incubator in Silicon Valley to enhance the travel experience
Tech-driven enhancements are coming fast and furiously to airports across the country, including San Jose where Alaska Airlines is testing out new technology to advance the way people travel.
Our innovation team plans to modernize travel at every major city we fly, from reimagining the lobby to testing innovative technology that streamlines the airport experience to boarding your flight with biometrics.
As we grow our airline and fly more people to more places, we are looking for unique ways to create a seamless travel experience for our guests. We’re using tech to also empower and equip our employees with the latest tools to offer the most caring service for our guests,” said Charu Jain, SVP of merchandising & innovation. “California is the epicenter of tech and the perfect place to test out these innovations.”
Faster check-in and self-bag drop.
In San Jose, we’re testing out a new check-in and self-bag drop system that will streamline the check-in process, reduce confusion and decrease the time needed to drop off your bag(s).
On average, people spend about 8.5 minutes in the lobby. Our new enhancements will cut that time in half and give our guests more opportunities to bypass congested areas of the lobby.
“We’re thrilled to give our guests more choices that will enrich their travel experience. And our bag drop system powered by iPad is just the beginning,” said Jain.
If you’re looking for the quickest way to get from the lobby to your gate, we recommend checking in for your flight on our mobile app or online before arriving to the airport. While on the app or website, you can check-in, pay for any checked luggage and pre-order your favorite meal for your flight.
Alaska Airlines’ use of emerging technology to enhance and streamline the passenger experience at San José Mineta International will provide more seamless transit of flyers coming to SJC—and create a more welcoming gateway to San José,” said San Jose Mayor Sam Liccardo.
With technology, we’re giving our guests more ways to have a seamless experience anywhere in our lobby. At SJC, you’ll spot our tabletops equipped with Apple iPad Pro that you can use to quickly scan your boarding pass, print your bag tag(s), and self-tag your bag(s). Our customer service agents are also equipped with iPad Mini to be able to immediately take care of guests at any Alaska touchpoint.
To use the tablets and save time checking your bags, guests will need to check in for their flight and pay or their bags before arriving to the airport using our mobile app or website.
Alaska was the first airline to implement self-serve airport kiosks in 2007—and we hope to be the first to remove them,” said Jain. “Simply because we’re our best when we can meet guests where they’re at and be able to take care of them the second they enter our space.”
From there, if you’ve checked a bag, you can take your tagged bag and head to our self-bag drop to give us your luggage—no more waiting in line!
How to use our new iPad bag drop system:
Check-in for your flight on our mobile app or online.
Arrive at SJC, look for our iPad stations.
Scan your boarding pass received upon check-in. iPad can scan digital or paper boarding passes.
Your bag tag(s) will print at the iPad station.
Tag your bag(s) and head to our new self-bag drop station to drop them off.
Boarding with facial recognition.
Currently, we’re using biometric technology to speed up our boarding process for international flights from SJC. These flights include Cabo San Lucas, Puerto Vallarta and Guadalajara.
Rather than hunt for your passport and boarding pass and hand them over to an agent at the gate, our guests who choose to board using facial recognition can quickly board the flight without ever having to exchange their documents with an agent. They simply scan their face and are on their way.
On average, the use of biometrics during the boarding process saves guests up to five seconds and the hassle of finding a boarding pass when your hands are full.
Boarding with biometric technology uses facial recognition to verify identity and shorten security procedures for those passengers who opt into the programs,” said Jain. “For guests who are concerned about security, we do not retain any imagery and offer our guests the opt-in option to use biometrics. While it will never be mandatory, we believe it is the future of travel.”
Guests traveling out of the San Jose Airport can try more innovation firsts with us in the coming months. We look forward to introducing new ways to travel in Silicon Valley and beyond to enrich our guests’ travel experiences so that they enjoy every journey while also giving our employees the latest tools to take great care of our guests.
I am excited to shape the future of the industry with our new tech,” said Sam Frost, lead customer service agent at SJC. “It will ultimately make our guests feel more in control of their journey and align our guest experience with the retail spaces of leaders in the tech industry like Apple and Microsoft.”
Air Transport World Names Alaska Airlines 2022 Airline of the Year
Aviation Week Network’s Air Transport World (ATW), the leading media brand serving the information needs of the global airline and commercial air transport communities, announced today that Alaska Airlines is the 2022 ATW Airline of the Year.
The ATW Airline Industry Achievement Awards recognize excellence across a broad range of airline operations and are widely considered as the most coveted in the air transport industry. Alaska was selected by an independent board of ATW and Aviation Week Network editors and analysts. In making their decision, they cited the company’s excellent leadership under CEO Ben Minicucci. They noted the company’s strong 2021 financial and operational performances despite the on-going challenges of the pandemic. The airline also joined the oneworld global alliance, expanding its international network.
We have our incredible employees to thank for this honor. They are the heart and soul of our airline, taking care of each other and creating meaningful connections with our guests on every flight, every day,” said CEO Ben Minicucci. “It’s gratifying to receive this recognition during a time that has tested us all. It’s a testament to how we’ve stuck with our business plan and delivered on our safety promise, while keeping caring as our north star of all that we do.”
Alaska has continued to innovate, launching the Ascend Pilot Academy for aspiring pilots that provides a simpler, more financially accessible path to becoming a commercial pilot at regional affiliate Horizon Air and eventually Alaska. And it became the world’s first airline to launch a subscription service, Flight Pass, that allows up to 24 roundtrips for a fixed monthly fee.
On top of that, Alaska remains highly committed to environmental and carbon emission reductions initiatives that include collaborative research and development efforts for sustainable aviation fuels and a hydrogen-electric regional aircraft, a commitment to achieving net zero carbon emissions by 2040, the replacement of plastic water bottles and plastic cups with 100% recyclable Boxed Water, and a partnership with a Hawaiian organization that connects travelers with sustainable volunteer projects in Hawaii. The airline was also the first to implement network optimization software, Flyways, using artificial intelligence and machine learning to optimize air traffic and enable more fuel-efficient flight paths for aggregate savings of fuel, carbon emissions and time.
“The Alaska Airlines Team is always at the top of its game with friendly customer service and a true dedication to its colleagues, community and the planet. To have stayed on top and continued to invest in its future through such challenging times shows the remarkable strength and adaptability of Alaska Airlines and we sincerely congratulate them,” said ATW Editor-in-Chief Karen Walker.
The Award will be presented to Alaska as the top honor among the 48th Annual ATW Airline Industry Achievement Awards at a prestigious, in-person gala dinner on June 21 following the closing of the 78th IATA AGM and World Air Transport Summit. Other ATW Airline Industry Achievement Award winners will be announced shortly.
Alaska last received ATW’s Airline of the Year recognition in 1990. Over the years, Alaska has been recognized with several ATW rankings, including the 2016 Market Leadership award, the 2012 Joseph S. Murphy Industry Award and the 2011 and 2003 Airline Technology Leadership. Its sister carrier Horizon Air was named Regional Airline of the Year in 2007.
