Alaska Airlines plans long-haul expansion from Seattle to challenge Delta

Alaska Airlines is taking its long-running competition with Delta Air Lines onto intercontinental ground at Seattle-Tacoma International Airport. Widebody aircraft gained through its acquisition of Hawaiian Airlines will be used to pursue premium passengers travelling to Europe and Asia.

The carrier has historically built its profitability on keeping operating costs well below those of the large US network airlines, supported by loyalty in the Pacific Northwest and a mainly domestic route network. Among major corporate operators in its home region, the company has concluded that its cost advantage is no longer enough to close the financial gap with traditional competitors.

In the first half of the year, Alaska's cost per available seat mile excluding fuel was 17% below the average of Delta Air Lines, United Airlines and American Airlines, according to the article. Even so, it generated roughly a fifth less revenue per available seat mile. That narrow margin reduced its ability to absorb the impact of rising fuel prices linked to the war with Iran.

Chief executive Ben Minicucci told investors that a strategic shift is needed. Carriers with higher cost structures, he noted, are currently earning the highest margins.

Under the expansion plan, Alaska aims to triple its nonstop intercontinental destinations from Seattle to at least 15 routes by 2030, which would make it the largest international operator at the airport. Its schedule changes include transatlantic flights to Paris and Athens, to begin in the near term.