Alaska Airlines Adds Reclining Suites, Premium Economy Class in Cabin Redesign

Alaska Airlines is renovating cabins at Alaska and Hawaiian Airlines to add hundreds of premium seats and building new airport lounges, banking on customers’ continued willingness to pay extra for luxury travel to boost its profits over the next decade.

The changes were announced Tuesday ahead of Alaska’s Investor Day in Seattle, where the carrier’s executives will face questions about the new offerings and how the airline is coping with rising jet fuel profits this year. They are also likely to tie the new products to the company’s prospects of expanding its co-branded credit cards and loyalty program, which have generated billions for airlines.

Even with the cabin changes, Alaska, which completed its merger with Hawaiian Airlines in September 2024, will continue to operate the two airlines under separate brands.

Here are some of the changes:

• that of Alaska Boeing The 787 Dreamliners will have 34 sleeper suites in a new offering called Aurora. It will also have 35 seats in a new premium economy section, called Premium Reserve, on the 787-9 and 787-10, starting in 2028.
• “At least” 25 of the yet-to-be-certified Boeing 737 Max 10s will feature 12 reclining Aurora suites and premium economy seats, in a bid to compete with other airlines on lucrative international routes.
• Hawaiian Airlines’ 24 Airbus A330s will each benefit from 22 all-new first class suites with sliding doors, starting in 2028, and its first ever premium economy section, with 28 seats.
• The carrier will open a new 41,000-square-foot Alaska Lounge at Seattle-Tacoma International Airport, with dedicated space for Aurora Suites passengers, similar to the tiered lounge system. Delta Airlines, United Airlines And American airlines to have.
• Hawaiian is building a nearly 13,000-square-foot lounge in Honolulu’s Terminal 1, scheduled to open in early 2028.

U.S. airlines have spent recent years redesigning their cabins to add more premium seats, often at the expense of coach seats, because first-class fares can cost several times more than an economy ticket, and customers continue to pay to sit closer to the front.

Alaska is far from the first carrier to renovate its cabins, but that could be to its advantage when the new product hits the market.

“There’s an advantage to being the last mover in that you’ve seen what your competitors have and if you want, you can try to outdo them,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel consulting firm.

Hawaiian Airlines’ Airbus A330s, used for flights to Hawaii, Asia and Oceania, have “aging interiors,” said Shane Jones, Alaska’s fleet chief.

The new options will reduce the total number of seats to 254, compared to 278 on these planes. Jones said the new options will give Alaska a range of premium choices, from honeymoon splurges to regular visitors to Hawaii looking for a higher level of coaching.

He told CNBC that the airline spent months examining fabric samples at the company’s Seattle headquarters, under different types of lighting, to choose the right one.

Some shades were too pink, while others were too dull. He said the airline wanted to evoke the colors and mood of tropical getaways to Hawaii with a wave pattern sewn into the seat, and that the carrier was evaluating how many waves were enough because too many could make one dizzy.

Diana Birkett Rakow, CEO of Hawaiian Airlines, said more than half of Hawaii’s visitors travel from the U.S. West Coast, a customer base that is “valuable to us from an economic standpoint, just in terms of income, travel budget, spending habits, flying habits.” So it gives us an opportunity to elevate the experience.”

Meanwhile, Alaska has expanded its international flights from Seattle, including to London, Iceland and Italy, with other destinations expected to begin this fall. Demand for international travel has held up despite rising fuel prices, airline executives said.

Alaska also plans to launch a rewards debit card for its Atmos loyalty program early next year, expanding the carrier’s co-branded cards it offers with Bank of America. Airlines, including Southwest Airlines And United Airlinesstarted offering similar rewards cards through their partner, JPMorgan Chase.

Alaska said the new debit card is aimed at young people and newcomers to the United States and said it “expands the reach of the program beyond traditional credit products.”

Additionally, starting Thursday, members of the Atmos loyalty program will have to choose between earning miles based on distance traveled, ticket price or segments traveled. Airlines have largely abandoned distance-based revenue, instead prioritizing how much travelers spend on the airline or rewards credit cards.