As airlines worldwide strive to enhance passenger comfort and maximize revenue, Alaska Air Group is taking significant strides to boost its premium seating options. This move aligns with a broader industry trend aimed at attracting customers willing to pay extra for enhanced travel experiences.
On a recent Tuesday, Alaska Air Group, which operates Alaska Airlines and Hawaiian Airlines, introduced “Premium Reserve,” a new premium economy cabin. The cabin will be available on long-haul flights to Europe and Asia, as well as select domestic routes, and features upgraded business-class suites.
Following its $2 billion acquisition of Hawaiian in 2024, Alaska has pursued its “Alaska Accelerate” strategy, aiming to expand premium services and strengthen its international footprint from its Seattle hub. Consequently, Alaska Air is increasingly positioning itself as a global carrier rather than a predominantly domestic airline.
“We believe premium is more than a seat,” noted Ben Minicucci, CEO of Alaska Air Group. “It’s how guests feel from the moment they book their trip to the moment they arrive at the airport, to when they’re in the air with us.”
New Premium Offerings and Enhanced Comfort
Starting next summer, customers of Alaska and Hawaiian Airlines can book the new premium economy, which boasts wide reclining seats equipped with leg and calf rests, and a generous 38-inch pitch. The cabins also feature 16-inch Bluetooth-enabled screens, outlets, USB-C charging ports, and upgraded dining menus.
Alaska’s “Premium Reserve” will debut on its 787 and select 737 Max 10 aircraft, alongside Hawaiian’s A330 fleet, with flights set to commence in 2028. Although Alaska does not yet possess the Max 10, its certification is anticipated following a delay due to a software issue, as reported by CNBC.
Beyond premium economy, Alaska and Hawaiian have revamped their business-class suites, termed “Aurora Suites” and “Leihōkū Suites,” respectively. These suites cater to routes spanning Asia, Oceania, and North America, offering luxurious features like sliding doors and upgraded inflight entertainment. Alaska’s Aurora Suites will be available on all 787 Dreamliners, while both airlines will provide access to airport lounges.
The introduction of these premium cabins comes with a steep price tag. A round-trip business-class journey from Seattle to Tokyo costs approximately $6,500, while a similar flight to London is priced at $5,300. These fares are significantly higher than those for basic economy, which are about one-fifth of the business-class prices.
Alaska faces stiff competition from established US carriers with extensive international networks and premium offerings. “I think where you’re seeing strength with the legacy carriers is in the premium space and in the international space,” Minicucci acknowledged during an April 2026 earnings call. “And if you look at our strategy under Alaska Accelerate, that’s exactly where we’re leaning into.”
Appealing to Premium Passengers
In the post-COVID air travel landscape, US airlines are prioritizing premium services over packing economy class to capacity. This shift is driven by the realization that customers are willing to invest in enhanced travel experiences, including premium seating and exclusive lounge access.
A McKinsey analysis highlighted that business-class cabins on transatlantic wide-body flights are generating nearly as much revenue as economy cabins, despite carrying fewer passengers. This trend persists amidst rising oil prices and soaring airfares due to the ongoing conflict in Iran.
Minicucci noted in a 2025 earnings call, “The folks who are more oriented towards purchasing into our premium cabins have been super resilient.”
United Airlines’ director of onboard products, Peter Wolkowski, remarked at the UK’s Farnborough Airshow that premium economy is the fastest-growing cabin on its 787 fleet. Similarly, Delta reported a 7% increase in premium revenue in 2025, while its main cabin revenue declined. Former Delta president Glen Hauenstein predicted that by 2027, premium revenue would surpass Main Cabin earnings.
