Alaska Airlines’ announcement Tuesday that it will redeploy Hawaiian Airlines widebody passenger jets for nonstop routes from Seattle to Asia and Anchorage, Alaska, paves the way for the company’s first meaningful participation in the international air cargo market and faster growth of its freight business.
Cargo is poised to deliver $150 million of new annual profit for Alaska Airlines (NYSE: ALK) on the heels of September’s $1.9 billion merger with Hawaiian, harnessing the capabilities of the combined cargo organizations, management said during an Investor Day presentation outlining a new strategic plan that targets accelerated profit growth.
Alaska Air generated $252 million in cargo and other nonpassenger revenue in 2023, a quarter the cargo revenue of large U.S. international carriers like Delta Air Lines and American Airlines. The Seattle-based carrier operates three Boeing 737-700 and two Boeing 737-800 converted freighters, which are primarily used to support the Alaska market from Seattle and Los Angeles, in addition to managing shipments transported by its fleet of nearly 400 narrowbody passenger aircraft in the lower deck…