SFO's second-largest airline is slowly eliminating cheap seats

Key Points:

• Alaska Airlines announced a strategic shift to focus on premium travelers by 2028, increasing business-class suites, exclusive lounges, and roomier economy seats while reducing budget basic economy offerings.
• The airline aims for premium seating to generate over 40% of total revenue by 2030, up from 35% currently, citing rising jet fuel costs and the need to remain competitive in key West Coast markets, especially California.
• New products include the Aurora Suites business-class cabin with lie-flat seats on Boeing 787-9 and 737 Max 10 jets, and a Premium Reserve cabin offering enhanced comfort; the 737 Max 10 will feature flat-bed seats on transcontinental routes for the first time.
• Alaska plans significant investments in lounges at Seattle and Honolulu, including a 200-seat business-class Aurora Lounge with premium amenities, and will refurbish Hawaiian Airlines’ Airbus A330 fleet with new lie-flat suites and premium cabins.
• The airline is cutting less profitable routes, particularly from San Francisco International Airport, to focus growth on stronger hubs like Seattle, Portland, and San Diego, acknowledging a shift away from budget travelers toward those willing to pay for luxury experiences.