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Alaska Airlines Expands Long-Haul Offerings in Competitive Market

As Alaska Airlines prepares to launch its foray into long-haul flights and elevate its premium service options, the airline is relying on the loyalty of its customers based in its home market of Seattle to enhance its competitive edge.

Brett Catlin, Vice President of Loyalty, Alliances, and Sales at Alaska Airlines, expressed confidence in the airline’s ability to thrive in the competitive landscape dominated by established players like Delta Air Lines. During his remarks at Skift’s Megatrends 2025 conference in New York City, Catlin outlined the strategy behind the new routes to Tokyo and Seoul, acknowledging the significance of Seattle as a crucial hub for their operations.

According to Catlin, a substantial 55% of all departing seats from Seattle are occupied by Alaska Airlines. He noted that expanding long-haul offerings is a logical progression for the airline. Reflecting on the airline’s history, he pointed out that Alaska previously did not serve the East Coast but successfully captured market share as it expanded its routes to that region. This pattern of loyal customers following Alaska as it grows is expected to continue as the airline introduces long-haul flights.

The airline’s recent merger with Hawaiian Airlines is also a key factor in its expansion capabilities. Completed in September, this merger is expected to enhance Alaska’s operational infrastructure, allowing it to manage a larger network that now includes 141 destinations, along with reciprocal lounge access and shared loyalty programs.

While both airlines will maintain their unique brand identities, there is speculation about a possible revamp of Alaska’s Mileage Plan, particularly in how passengers accrue miles. Catlin mentioned feedback indicating that many customers prefer earning rewards based on their spending, mirroring trends seen in other sectors such as retail and hospitality. Though he did not commit to any specific changes, he acknowledged the increasing preference among travelers for a straightforward, revenue-based earning model.

This consideration comes in the wake of British Airways recently shifting to a revenue-based earning system for its loyalty program, highlighting a broader industry trend. Since customer preferences are shifting, Alaska Airlines may need to adapt its Mileage Plan to retain its appeal among frequent fliers.

Discussions at the conference also encompassed Alaska’s approach to premium travel experiences, notably its airport lounges and exclusive credit card offerings aimed at high-spending customers. Catlin described the company’s philosophy for its lounges as being a serene escape for travelers. He emphasized the importance of maintaining an upscale environment without excessive wait times, stating that the experience for their valued guests is paramount.

In line with this commitment to customer experience, Alaska Airlines recently opened a new lounge at San Francisco International Airport in 2024, underscoring its intent to enhance service quality for its customers.

Source
www.travelandleisure.com