Alaska Air Group Unveils Lie-Flat Suites, Premium Cabins Across Alaska and Hawaiian Fleets

Alaska Air Group (ALK) announced Tuesday a cabin overhaul across Alaska Airlines and Hawaiian Airlines, adding lie-flat suites and premium-economy seating as it targets higher-end travel demand. Alaska's Boeing 787-9s will get 34 lie-flat Aurora Suites, lifting premium seating to about 46% from 38%; at least 25 737-10 MAX jets will each receive 12 lie-flat suites. Hawaiian's 24 Airbus A330s will each add 22 Leihōkū Suites with privacy doors, raising premium seating to roughly 40% from 30%. Both carriers will introduce Premium Reserve, a premium-economy cabin with 38-inch pitch and 16-inch 4K OLED screens. It goes on sale next summer and rolls out in 2028. A nearly 41,000-square-foot Seattle-Tacoma lounge complex opens in late 2027; a roughly 13,000-square-foot Honolulu lounge opens in early 2028. At its 2026 Investor Day, Alaska said it has captured about two-thirds of a $1 billion incremental profit target, on track for 2027. Premium revenue is forecast to exceed 40% of total by 2030, up from 35%. Alaska posted a Q2 net loss of $76 million, with jet fuel averaging $4.43 per gallon, up 85% year over year. It suspended 2026 earnings guidance in April.