Premium push comes as airlines court high-spending travelers to lift profits
Alaska Airlines is upgrading its premium travel offerings to take on the biggest U.S. airlines, announcing new lie-flat “Aurora suites,” a premium-economy cabin section, and a dedicated Seattle lounge for international business-class passengers.
The Seattle-based carrier said the changes are part of a broader push to compete with larger rivals for high-spending travelers, a segment that has become critical to airline profitability as fuel, labor, and airport-fee costs climb.
Since acquiring Hawaiian Airlines two years ago, Alaska has expanded its reach, launching flights to Europe and Asia from its Seattle hub and laying out plans for more international routes. The carrier now needs more premium options to woo customers away from larger competitors.
“We needed those products to meet the size and scale of our network as it expands,” Andrew Harrison, Alaska’s chief commercial officer, told The Wall Street Journal.
Alaska isn’t new to premium travel. The wide-body jets it flies to Europe, which it acquired in the Hawaiian deal, are already outfitted with business class suites. Alaska opened up a dedicated check-in and concierge service for international business-class travelers ahead of its first flights to Rome earlier this year. Its airport clubs already feature amenities such as pancake printers and make-your-own pho.
The carrier had not previously had some amenities high-end travelers expect, however, and it had not adopted the four-class cabin that has become standard for many carriers’ long-haul flights.
The new Aurora suites, Alaska’s answer to top-tier offerings from bigger carriers, are expected to begin flying in 2028 on the carrier’s Boeing 787 Dreamliner fleet. Alaska also plans to install the suites on more than two dozen Boeing 737 MAX 10 jets it has on order, which will fly across the country on popular business-travel routes.
The carrier’s Airbus A330 planes that fly to North America and Asia under the Hawaiian brand are getting entirely new interiors, including new suites with closing doors. Planes flying longer distances will also get a dedicated premium-economy section called Premium Reserve, with seats and in-flight dining that are a step up from the airline’s existing extra-legroom offering. Harrison described the new section as “a huge missing piece.”
After the upgrades, premium seating will account for close to half of seats on 787-9 jets — 46%, up from 38% currently.
Alaska’s new 41,000-square-foot lounge in Seattle, set to open in late 2027, will include a dedicated area for Aurora Suites passengers on intercontinental flights, with made-to-order meals brought to seats and showers — features similar to lounges operated by Delta, United, and American. A new premium Hawaiian Airlines lounge is also set to open in Honolulu in 2028.
“We’ve always had first class, we’ve always had lounges, but we’re taking this to a whole new level,” Harrison said.
The announcement comes as Alaska has struggled with rising fuel costs in recent months and faced setbacks including IT outages last year and harsh weather that dented demand for trips to Hawaii.
The carrier’s premium push reflects a broader industry trend. Delta, which also operates a Seattle hub, has been pushing back on Alaska’s expansion efforts by attracting customers with its global network and premium international business class — something Alaska could not completely match. Across the industry, airlines are overhauling airplane cabins to tap into growing demand for travel luxuries.
Alaska also announced changes to its loyalty program, including a new debit card it plans to launch next year.