Alaska Airlines Expands International Seattle Network as Competition With Delta Increases

Alaska Airlines (NYSE:ALK) is expanding its international operations from Seattle as it seeks a larger share of premium and long-haul travel, increasing its direct competition with Delta Air Lines (NYSE:DAL) at its home airport.

The airline plans to increase its intercontinental destinations from Seattle to at least 15 by 2030 and become the city’s largest international carrier. Flights to Paris and Athens are scheduled to begin next year.

Alaska is using widebody aircraft acquired through Hawaiian Airlines as part of the expansion, while adding Boeing 787 aircraft, premium cabins and airport lounges to develop Seattle as a connecting hub for travel to Europe and Asia.

About 92% of Alaska’s scheduled intercontinental seats from Seattle during the 12 months through August 2027 are on routes also served nonstop by Delta, according to a Reuters analysis of Cirium data.

Alaska Targets Higher Premium and International Revenue

Alaska has historically operated primarily as a domestic carrier, with a cost base below those of the largest U.S. network airlines.

During the first half, Alaska spent approximately 17% less per available seat mile, excluding fuel, than the average of Delta, United Airlines and American Airlines (NASDAQ:AAL), according to a Reuters analysis of company filings.

However, its revenue per available seat mile was approximately 20% lower, according to the same analysis.

“The airlines that actually have high cost structures are the ones making the highest margins,” Alaska Chief Executive Ben Minicucci told investors. “We need to pivot.”

The company estimates international travel represents approximately 30% of airline revenue in the Seattle market.

Alaska expects nearly 60% of its revenue to come from sources outside the price-sensitive main cabin by 2030, compared with 53% this year. The target includes greater contributions from premium cabins, international travel and its loyalty programme.

Delta Expands Seattle International Operations

Delta has also expanded its international presence in Seattle, which the airline describes as its “premier Pacific gateway.”

The carrier introduced service to Rome this summer and plans to begin daily flights to Tokyo Narita in March 2027, a route already served by Alaska. Delta has also obtained preferential access to 18 airport gates and opened two additional lounges.

Alaska, including Hawaiian Airlines, accounts for approximately half of scheduled airline seats in the Seattle area, around twice Delta’s share, according to Cirium data cited by Reuters.

The position is reversed for intercontinental services, with Delta offering approximately twice as many scheduled long-haul seats from Seattle over the same period.

Alaska plans to use its domestic network in the western United States to provide connecting passengers for its international services.

More than half of passengers travelling on Alaska’s Seoul and Reykjavik services connect through Seattle, the company told Reuters. Its London and Rome routes rely more heavily on passengers originating in the local market.

President and Chief Financial Officer Shane Tackett said connecting passenger volumes have exceeded the company’s expectations on some long-haul routes.

Delta did not respond to Reuters’ request for comment.

Alaska Plans Revenue-Sharing Partnerships With American

Alaska also said it intends to join American Airlines’ revenue-sharing joint ventures across the Atlantic and Pacific.

Subject to regulatory approvals, including antitrust immunity, the arrangements would allow Alaska to coordinate fares and schedules and share revenue with American and its international partners on qualifying routes.

The companies have not yet received the approvals required to implement the proposed arrangements.

International Expansion Adds Costs

Alaska’s international expansion requires additional aircraft, crews and operating infrastructure at a time when higher fuel prices have affected its profitability.

The airline expects to finish 2026 with net leverage at approximately three times its long-term target, according to the supplied information.

Alaska’s Boeing 787 operations are also currently carrying higher crew costs as the airline establishes pilot and flight-attendant bases in Seattle. Tackett said the company expects these costs to normalise as additional aircraft enter service and the operation expands.

The airline’s first European summer also reflected the sensitivity of its international operations to fuel prices. Tackett said stronger-than-expected premium demand on the London route helped the operation generate a profit in July before higher fuel costs subsequently offset that result.

Melius Research analyst Conor Cunningham said Alaska is focusing on areas that could increase revenue but faces near-term pressure from elevated fuel costs and greater competition in important markets.

“What we’ve recognized is the winning airline of the future looks different than it did 10 years ago,” Tackett told Reuters.

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