Alaska Air Group, which acquired Hawaiian Airlines in September 2024, has unveiled a five‑year, $600 million investment plan that will upgrade Hawaiian’s airport facilities, refresh its Airbus A330 interiors, and modernize digital tools for passengers and employees. The plan is designed to enhance the Hawaiian travel experience and support the airline’s growth in the Pacific leisure market.
The capital allocation will renovate lobbies and gates at Honolulu, Līhuʻe, Kahului, Kona, and Hilo airports, and will add a 10,600‑square‑foot premium lounge at Daniel K. Inouye International Airport near Terminal 1’s Mauka Concourse entrance. Interior upgrades will begin in 2028 and include new seating, lighting, and free Starlink Wi‑Fi on the A330 fleet. The plan also calls for the purchase of three A330 aircraft off‑lease to support the Pacific fleet.
The five‑year plan, running through 2029, is part of Alaska Air Group’s Alaska Accelerate strategy, which targets $1 billion in incremental profit and double‑digit pretax margins (11‑13%) by 2027. By investing in Hawaiian’s infrastructure and technology, the group aims to strengthen its competitive position in the high‑margin leisure segment and accelerate integration with the oneworld alliance and the new Atmos Rewards loyalty program.
Hawaiian CEO Diana Birkett Rakow said the investment “represents one of Hawaiian Airlines’ largest single investments in our infrastructure, products and services in Hawaii,” underscoring the airline’s commitment to the local market. Alaska Air Group CEO Ben Minicucci added that the acquisition “gives us the scale to be stronger than either of us could have been on our own… and it will drive substantial financial results.”
Financially, the $600 million plan represents a modest portion of the $1.9 billion acquisition cost and is expected to be fully amortized over the five‑year period. The investment aligns with the group’s goal of achieving higher operating leverage and margin expansion, while the addition of Starlink Wi‑Fi and upgraded interiors is projected to boost passenger satisfaction and ancillary revenue on long‑haul routes.
The plan also includes the integration of Hawaiian’s passenger service system with Alaska’s platform, the launch of the Atmos Rewards loyalty program, and the completion of Hawaiian’s oneworld alliance membership in late April. These steps are intended to create seamless connectivity for passengers and unlock new revenue opportunities across the combined network.
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