Alaska Air Group introduces "Alaska Accelerate," its three-year strategic plan to deliver $1 billion in incremental profit following combination with Hawaiian Airlines
Alaska Air Group unveiled 'Alaska Accelerate,' a three-year strategic plan following its Hawaiian Airlines acquisition, targeting $1 billion in incremental profit by 2027. The plan aims to achieve earnings per share of at least $10 and pretax profit margins of 11-13%. The company increased synergy estimates to $500 million and announced new international routes from Seattle to Tokyo and Seoul starting in 2025.
The strategy focuses on four main goals: expanding global connectivity, maintaining Hawaiian Airlines' trust, enhancing travel experience, and diversifying revenue streams. Commercial initiatives include launching a premium credit card, expanding lounge networks, increasing premium seating, and growing cargo operations. For 2025, the company projects a 2-3% capacity increase, EPS of at least $5.75, and plans $250 million in share repurchases.
Alaska Air Group ha presentato 'Alaska Accelerate', un piano strategico triennale in seguito all'acquisizione di Hawaiian Airlines, con l'obiettivo di ottenere 1 miliardo di dollari di profitto incrementale entro il 2027. Il piano punta a raggiungere un utile per azione di almeno 10 dollari e margini di profitto ante imposte dell'11-13%. L'azienda ha aumentato le stime di sinergia a 500 milioni di dollari e ha annunciato nuove rotte internazionali da Seattle verso Tokyo e Seoul a partire dal 2025.
La strategia si concentra su quattro obiettivi principali: espandere la connettività globale, mantenere la fiducia di Hawaiian Airlines, migliorare l'esperienza di viaggio e diversificare le fonti di guadagno. Le iniziative commerciali includono il lancio di una carta di credito premium, l'espansione delle reti di lounge, l'aumento dei posti a sedere premium e la crescita delle operazioni cargo. Per il 2025, l'azienda prevede un aumento della capacità del 2-3%, un utile per azione di almeno 5,75 dollari e 250 milioni di dollari in riacquisti di azioni.
Alaska Air Group presentó 'Alaska Accelerate', un plan estratégico a tres años tras la adquisición de Hawaiian Airlines, con el objetivo de alcanzar 1 mil millones de dólares en ganancias incrementales para 2027. El plan tiene como meta lograr ganancias por acción de al menos 10 dólares y márgenes de beneficios antes de impuestos del 11-13%. La compañía aumentó sus estimaciones de sinergia a 500 millones de dólares y anunció nuevas rutas internacionales desde Seattle a Tokio y Seúl a partir de 2025.
La estrategia se centra en cuatro objetivos principales: expandir la conectividad global, mantener la confianza de Hawaiian Airlines, mejorar la experiencia de viaje y diversificar las fuentes de ingresos. Las iniciativas comerciales incluyen el lanzamiento de una tarjeta de crédito premium, la expansión de redes de salones, el aumento de asientos premium y la expansión de operaciones de carga. Para 2025, la compañía espera un aumento de capacidad del 2-3%, ganancias por acción de al menos 5,75 dólares y 250 millones de dólares en recompra de acciones.
알래스카 항공 그룹이 하와이안 항공 인수에 따른 3년 전략 계획인 '알래스카 가속화(Alaska Accelerate)'를 발표했습니다. 이 계획은 2027년까지 10억 달러의 추가 이익을 목표로 하고 있습니다. 이 계획은 주당 최소 10달러의 수익과 11-13%의 세전 이익 마진을 달성하는 것을 목표로 합니다. 회사는 시너지 추정치를 5억 달러로 증가시키고 2025년부터 시애틀에서 도쿄와 서울로 가는 새로운 국제 노선을 발표했습니다.
전략은 네 가지 주요 목표에 중점을 두고 있습니다: 글로벌 연결성 확대, 하와이안 항공에 대한 신뢰 유지, 여행 경험 향상, 수익원 다각화. 상업적 이니셔티브에는 프리미엄 신용 카드 출시, 라운지 네트워크 확장, 프리미엄 좌석 증가, 화물 운영 성장 등이 포함됩니다. 2025년을 위해 회사는 2-3%의 용량 증가, 주당 최소 5.75달러의 수익을 예측하고 2억 5천만 달러의 자사주 매입 계획을 세우고 있습니다.
Alaska Air Group a dévoilé 'Alaska Accelerate', un plan stratégique triennal suite à l'acquisition de Hawaiian Airlines, visant à atteindre 1 milliard de dollars de profit additionnel d'ici 2027. Le plan vise à réaliser un bénéfice par action d'au moins 10 dollars et des marges bénéficiaires avant impôts de 11 à 13%. La société a porté ses estimations de synergie à 500 millions de dollars et a annoncé de nouvelles liaisons internationales de Seattle à Tokyo et Séoul à partir de 2025.
La stratégie se concentre sur quatre objectifs principaux : élargir la connectivité mondiale, maintenir la confiance d'Hawaiian Airlines, améliorer l'expérience de voyage et diversifier les sources de revenus. Les initiatives commerciales comprennent le lancement d'une carte de crédit premium, l'expansion des réseaux de salons, l'augmentation des sièges premium et la croissance des opérations de fret. Pour 2025, la société prévoit une augmentation de capacité de 2 à 3 %, un bénéfice par action d'au moins 5,75 dollars et prévoit 250 millions de dollars en rachats d'actions.
Alaska Air Group hat 'Alaska Accelerate' vorgestellt, einen dreijährigen strategischen Plan nach der Übernahme von Hawaiian Airlines, mit dem Ziel, bis 2027 1 Milliarde US-Dollar an zusätzlichem Gewinn zu erzielen. Der Plan zielt darauf ab, einen Gewinn pro Aktie von mindestens 10 US-Dollar und eine Steuergewinngrenze von 11-13% zu erreichen. Das Unternehmen hat die Synergie-Schätzungen auf 500 Millionen US-Dollar erhöht und kündigte neue internationale Routen von Seattle nach Tokio und Seoul ab 2025 an.
Die Strategie konzentriert sich auf vier Hauptziele: die globale Konnektivität auszubauen, das Vertrauen in Hawaiian Airlines zu bewahren, das Reiseerlebnis zu verbessern und die Einnahmequellen zu diversifizieren. Zu den kommerziellen Initiativen gehören die Einführung einer Premium-Kreditkarte, der Ausbau von Lounge-Netzwerken, die Erhöhung der Premium-Sitzplätze und das Wachstum der Frachtbetriebe. Für 2025 rechnet das Unternehmen mit einem Kapazitätszuwachs von 2-3%, einem Gewinn pro Aktie von mindestens 5,75 US-Dollar und Plant 250 Millionen US-Dollar für Aktienrückkäufe.
- Targeting $1 billion in incremental profit by 2027
- Synergy estimates doubled to $500 million
- EPS target of at least $10 by 2027
- Projected 11-13% pretax profit margins
- Expected 30% EPS growth in 2025
- Planned $250 million in share repurchases for 2025
- Expansion to 12 international widebody destinations by 2030
- High capital expenditures of $1.4-1.5 billion expected for 2025
- capacity growth of only 2-3% projected for 2025
Insights
- Alaska Air Group to unlock significant short- and long-term value creation to drive double digit margins of 11
-13% and EPS to at least$10 $500 million - Launching a new global gateway from
Seattle with nonstop routes to Tokyo Narita (NRT) and Seoul Incheon (ICN), and expanding to at least 12 international widebody destinations by 2030 - Introducing a premium credit card with industry-leading benefits for guests, built for the global traveler to explore the expanding network
"There has never been a more exciting time to be a part of Alaska Air Group," said Ben Minicucci, chief executive officer. "We have built a winning business model that has enabled us to outperform the industry over the past two decades. Now, with the combination with Hawaiian Airlines, we will transform our business and solidify our competitive advantage for years to come."
Alaska Accelerate
Alaska Accelerate is architected to deliver on the combined airline's vision of connecting guests to the world with a remarkable travel experience rooted in safety, care and performance. Significant investments in the commercial organization will propel the company forward, revolving around four main goals:
- Connect our guests to the world: Enabling the power of an expanded network by opening a global gateway in
Seattle with long-haul widebody aircraft, seamlessly blending two route networks to optimize connections and deepen relevance for guests.Alaska and Hawaiian now operates over 1,400 daily flights to over 140 cities and can take people to over 1,200 destinations worldwide with global partners and through the oneworld Alliance. - Be Hawai'i's trusted airline: Providing Hawai'i residents access to an expanded network, greater connectivity wherever they want to fly, and a dedicated loyalty program, Huakai'i by Hawaiian.
- Deliver a remarkable travel experience: Investing in its existing end-to-end premium experience including enhanced airport lobbies and lounges in our hubs, expanded premium seat capacity, a new loyalty platform, and a premium credit card offering.
- Diversify our future: Maximizing opportunities to create and grow revenue across the business from cargo growth to innovation and investing in technologies for the future.
Enabling significant value creation
This acceleration of Alaska Air Group's strengths and competitive advantages will enable significant value creation and deliver industry-leading financial results.
The company's new 2027 financial targets will include:
$1 billion - Earnings per share of at least
$10 - Double digit pretax profit margins 11
-13% - No margin dilution in year 1 following the merger
- Synergy estimates doubled to at least
$500M
"To win in our industry, you must have relevance and loyalty, and that's exactly what we are accelerating over the next three years," said Shane Tackett, chief financial officer. "The combination with Hawaiian gives us the scale to be stronger than either of us could have been on our own – giving guests what they want, where and when they want it. And it will drive substantial financial results that will continue to set us apart from our competitors."
Expanding commercial growth and opportunity
With contributions coming across network, product, loyalty and cargo, the commercial organization will drive the vast majority of the expected profit growth over the next three years - unlocking an additional
"We expect an unprecedented level of revenue growth at
The commercial growth begins today with benefits for every guest and customer.
Connecting our guests to the world
The company will begin offering new nonstop flights on A330 aircraft to key Asian leisure and business markets in 2025 – connecting
Daily nonstop Seattle-Tokyo Narita service starts in May 2025, offering guests an enticing nonstop option between the Pacific Northwest and
For more information about the new
Scaling our premium experience
Announced in July,
These investments will serve to sustain and improve an already industry-leading net promoter score for both Alaska Airlines and Hawaiian Airlines – 20 points above the legacy carriers' average.
Creating a valuable loyalty ecosystem
In addition to previously announced enhancements to the award-winning Mileage Plan,
Interested guests can join an early-access list to receive an exclusive link to apply for the new premium credit card, which is expected to be available in summer 2025. Pre-register your interest at alaskaair.com/premium-card by Dec. 31, 2024, for an exclusive offer.
Growing cargo and diversifying revenue
Building on the decades-long expertise of serving communities reliant on air travel and freight, the combined network and widebody fleet is poised to double in revenue over the next few years. The expanded cargo organization is led by industry veterans and is estimated to unlock margins that are two to three times the system average.
As
Full Year 2025 Outlook
Looking ahead, the company anticipates its synergy targets and commercial initiatives will allow for no dilution to adjusted pretax margin in 2025 compared to 2024. Further, it expects to grow EPS by
2025 Metric | Expectation |
Capacity | Up |
Earnings Per Share | At least |
Capital Expenditures | |
Share Repurchases | ~ |
Webcast information
About Alaska Air Group
Alaska Air Group, Inc. is based in
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 discussion of risks and uncertainties that may cause our forward-looking statements to differ materially, see Item 1A of the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024. Some of these risks include competition, labor costs, relations and availability, general economic conditions, increases in operating costs including fuel, uncertainties regarding the ability to successfully integrate the operations of the recently completed acquisition of Hawaiian Holdings, Inc. and the ability to realize anticipated cost savings, synergies, or growth from the acquisition, 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-Q. 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.
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SOURCE Alaska Air Group, Inc.
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