Alaska Air's Arm Unveils Record-Breaking Fleet Order in its History

Alaska Airlines,a wholly owned subsidiary of Alaska Air Group (ALK), has grabbed everyone’s eyeballs with its largest-ever aircraft order in its history. Alaska Airlines has agreed to buy 105 new 737-10 aircraft and five new 787 aircraft from The Boeing Company (BA), while extending the aircraft delivery stream through 2035. The deal also includes options for 35 additional 737-10s over the same period.

This deal brings Alaska's total Boeing orderbook to 245 aircraft, along with the already operational 94 MAX aircraft.The 737-10s will be used for a mix of growth and replacement of older narrowbody aircraft, while preserving flexibility to adjust to other 737 variants if needed.

Alaska Airlines also exercised all previously held options for the 787, bringing the airline’s future widebody fleet count to 17 aircraft, with five already in service. The newly ordered jets are expected to be delivered as the 787-10 variant and are expected to help Alaska Airlines serve at least 12 long-haul international destinations from Seattle by 2030. The five extra 787 widebody aircraft are meant to align with the Alaska Accelerate strategic plan

With a current fleet of 413 aircraft, Alaska Air Group's carriers will operate a fleet of more than 475 aircraft by 2030 and more than 550 aircraft by 2035.

Meanwhile, the deal announcement coincided with an event in Seattle wherein leaders from Alaska Airlines, Boeing and the U.S. Department of Transportation, along with employees, customers and guests, gathered to celebrate this fleet order and welcome the first 787-9 painted in Alaska's global livery. The design, inspired by the aurora borealis, features deep blues and emerald greens and required nearly 1,000 hours of work over 13 days to complete.

Alaska Airlines aims to deploy its expanding widebody fleet on routes from Seattle to Europe and Asia, including new daily service to London Heathrow and Rome in 2026, seasonal flights to Reykjavik, and existing year-round service to Tokyo Narita and Seoul Incheon.

Alaska Airlines’ chief executive officer, Ben Minicucci, stated, "This fleet investment builds on the strong foundation Alaska has created to support steady, scalable and sustained growth, and is another building block in executing our Alaska Accelerate strategic plan. These planes will fuel our expansion to more destinations across the globe and ensure our guests travel aboard the newest, most fuel-efficient and state-of-the-art aircraft. We are incredibly proud to be partnering with Boeing, a Pacific Northwest neighbor and a company that stands as a symbol of American innovation and manufacturing."

The latest Boeing order from Alaska Airlines comes as a ray of hope, since the January 2024 alarming incident of Alaska Airlines’ Ontario, CA-bound flight (1282) panel and window being blown out of the Boeing 737 MAX 9 jet shortly after takeoff from Portland, OR. This led to the temporary grounding of the Max 9 fleet and intense regulatory scrutiny by the Federal Aviation Administration.

As a result, this order is anticipated to improve Alaska Airlines’ relationship with Boeing, wherein the latter is striving hard to restore its position in the industry in terms of manufacturing and safety processes.

Zacks Rank & Stocks to Consider

Alaska Air currently carries a Zacks Rank #3 (Hold).

Investors interested in the Transportation sector may also consider Expeditors International of Washington, Inc. (EXPD) and LATAM Airlines Group LTM, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Expeditors has an expected earnings growth rate of 3.50% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%. The Zacks Consensus Estimate for EXPD’s 2025 earnings has moved 7.63% north in the past 60 days. Shares of Expeditors have gained 30.7% over the past six months.

LTM has an expected earnings growth rate of 52.63% for the current year. The company has a solid earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, and met in the remaining one, delivering an average beat of 29.84%. The Zacks Consensus Estimate for LTM’s 2025 earnings has moved 5.34% north in the past 60 days. LTM shares gained 32.5% in the past six months.

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This article originally published on Zacks Investment Research (zacks.com).

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