Alaska Air Group Envisages Capacity Growth for 2019 and 2020 

After announcing its financial recovery plans last month, Alaska Air Group’s top executives shared their ambition to boost the company capacity by 2% in 2019 and by 4% in 2020. 

The plan will be implemented after a careful monitoring of the current competitive environment and its fluctuations in the following year and growth rates will be adjusted accordingly.  

Brad Tilden, Alaska President and CEO, shared the company plans during a meeting for Investor Day at the end of November. He assured the interested parties that the company will first secure a few successful quarters and then look forward to growing in 2020 and 2021.  

CCO Andrew Harrison was careful in his predictions about the future development. He said that no guidance is issued yet for the forthcoming periods, as they need to take into account the changing competitive environment, fares, interest rates, and other factors prior to making more specific forecasts. 

Nevertheless, the group executives expect $130 million in revenue synergies in 2019 as a result of its merger with Virgin America, better fare segmentation, and higher bag fees.  

The group, which is the parent company of Alaska Airlines and Horizon Air, also plans to implement changes to its fleet. Alaska aims to acquire 8 mainline aircraft and four E175s while retiring seven Q400s. Thus, the group will operate a fleet of 333 aircraft in total, 92 of which belonging to its regional fleet.  

Source: ATW