Alaska Airlines is betting that lie-flat seats and swankier lounges will keep travelers paying up, even as fuel costs spike. The carrier unveiled a major cabin overhaul for both Alaska and Hawaiian Airlines, including new "Aurora" lie-flat suites on Boeing 787s and some 737 Max 10 jets starting in 2028, plus a "Premium Reserve" cabin on its Dreamliners, per CNBC. Hawaiian's two dozen Airbus A330s will get 22 upgraded first-class suites with doors and the airline's first "Premium Economy" section, cutting total seats but boosting high-paying ones.
Alaska is also building a large new lounge in Seattle, which the Wall Street Journal notes should be open for business in late 2027, while Hawaiian will add one in Honolulu, with a grand opening set for 2028. "We've always had first class, we've always had lounges, but we're taking this to a whole new level," says Alaska Air's chief commercial officer, Andrew Harrison.
CNBC notes that, on the money side, Alaska will roll out a rewards debit card aimed at younger and newly arrived customers in the US, and its Atmos loyalty members must now pick how they earn miles: by distance, price, or segments traveled. The move makes Alaska Air "increasingly look like a major global carrier rather than the largely domestic airline it was once known as," per Business Insider. The outlet notes, however, that the new seating won't exactly be kind to the pocketbook: A roundtrip flight in March from Seattle to Tokyo with a seat in business class will run about $6,500 on Alaska Airlines.