Alaska Airlines is the U.S.’s 5th-largest carrier, and it seems to have its sights set on moving up, with the announcement this week that it will move into 30 more markets in the next six months.
In the past nine months, the Seattle-based airline added 20 new markets, and added more routes through its buyout of Virgin America, whose flights will be folded into Alaska’s livery over the next couple of years. Alaska says 15 of the 20 new markets are already profitable, and expects similar results with the next expansion.
The expansions have been spurred in part by an ‘expand or die’ competition in which Delta has aimed to become the dominant carrier in Seattle, Alaska’s home and biggest hub. The competition has spread to California, where San Francisco is an important hub for both, and for Virgin America.
The new markets haven’t been announced, but Alaska is confident it can compete with the Big Three almost anywhere. Company executives believe that the introduction of ‘basic economy’ fares by Delta, United and American helps Alaska because the discounted fares have come with restrictions on baggage, seating and more, while Alaska is selling seats at about the same prices, but with amenities intact.
