Alaska Air Group, which now includes Hawaiian Airlines, reported a $395 million profit for 2024, despite a challenging year marked by the Boeing 737 MAX 9 door plug blowout in January and rising operational costs. The acquisition of Hawaiian Airlines in September 2024 was a major milestone, as Alaska Airlines aims to unlock $1 billion in additional pre-tax profit over the next three years.
CEO Ben Minicucci called 2024 a transformational year, highlighting strong revenue growth, an increase in fleet size, and the continued execution of the company’s strategic plan, ‘Alaska Accelerate.’
Alaska Air Group’s 2024 Financial Performance
Key Financial Results
📊 Total revenue: $11.7 billion (up 13% YoY)
💰 Net profit: $395 million
📈 Total expenses: $11.1 billion (up 11% YoY)
🛫 Passengers carried: 49.2 million
Alaska Air Group’s Q4 revenue exceeded expectations, driven by:
✅ Sustained demand for leisure travel
✅ Increased corporate travel bookings
✅ Mild winter weather, leading to fewer disruptions
Despite these gains, unit costs remained high due to aircraft delivery delays, but the company expects cost improvements in 2025.
Impact of Hawaiian Airlines Acquisition
Alaska Airlines officially acquired Hawaiian Airlines in September 2024 for $1.9 billion, including $900 million in debt. The airline paid $18 per share in cash and $659 million upfront.
How Does Hawaiian Airlines Fit into Alaska’s Strategy?
✔️ Expands Alaska Airlines’ network to the Pacific region
✔️ Enhances connectivity between Hawaii, the U.S. mainland, and Asia
✔️ Strengthens long-haul international operations
However, Hawaiian Airlines remained unprofitable in 2024, and is expected to post losses in Q1 2025 before turning profitable in later quarters.
Fleet Expansion & Capacity Growth
Alaska Air Group significantly expanded its fleet in 2024:
- Fleet size increased from 314 to 392 aircraft
- Alaska Airlines fleet: 239 aircraft
- Hawaiian Airlines fleet: 71 aircraft
- Horizon Air fleet: 44 aircraft
The company also expects capacity (ASM) to grow between 2% and 3% YoY in 2025, indicating steady network expansion.
2025 Outlook: Challenges & Growth Opportunities
Projected Q1 2025 Performance
🚨 Expected to post a loss of $0.50 to $0.70 per share
📊 Revenue per ASM (RASM) to grow in high single digits YoY
💰 Full-year adjusted EPS expected to exceed $5.75
Despite a weaker Q1, Alaska Air Group remains optimistic for the rest of the year, expecting:
✅ Profitability from Q2 onwards
✅ Stronger earnings from Hawaiian Airlines later in the year
✅ Continued demand for leisure and corporate travel
Comparison with Other Major U.S. Airlines
| Airline | 2024 Revenue | Net Profit | Fleet Size |
|---|---|---|---|
| Alaska Air Group | $11.7 billion | $395 million | 392 |
| American Airlines | $54.2 billion | $846 million | 1,000+ |
| Delta Air Lines | $60 billion+ | $3.9 billion | 1,300+ |
| United Airlines | $55+ billion | $3.1 billion | 900+ |
While Alaska Air Group remains profitable, its earnings are significantly lower than Delta, United, and American Airlines. However, with the Hawaiian Airlines acquisition and long-term growth strategy, Alaska is positioning itself for stronger profitability in the coming years.
A Transformational Year for Alaska Airlines
✅ $395 million profit despite challenges
✅ Successful Hawaiian Airlines acquisition
✅ Fleet expansion & increased passenger traffic
❌ High costs & short-term losses from Hawaiian Airlines
📈 Expecting stronger profitability in Q2–Q4 2025
While Q1 2025 is expected to be loss-making, Alaska Air Group remains optimistic about long-term growth, leveraging its expanded network and cost-reduction strategies.
Will the Hawaiian Airlines acquisition pay off for Alaska Airlines in 2025? Only time will tell.