Alaska Airlines Betting on Its Agility With Domestic Travelers for the Rebound
Photo Credit: Alaska Airlines sees a path through the crisis. Pictured is one of the airline's regional jets. Alaska Airlines
Skift Take
Alaska Airlines long has been among the more prudent U.S. airlines. It probably lost out on revenue during the boom times because of it. But the airline now is probably more ready to withstand this crisis than many other U.S. carriers.
As some competitors warn of substantial furloughs, layoffs, aircraft retirements, route cuts and an overall aviation landscape that will look far different in 2021 than three months ago, Alaska Airlines executives sounded nearly chipper on Tuesday, arguing on an earnings call that they're in better shaper than other U.S. carriers.
"We do believe Alaska is configured to be a bit more agile than the average airline," CEO Brad Tilden said while discussing first quarter results. "I think we are going to be a little better to scale up and scale down, depending on demand."
Alaska is betting on what has become conventional wisdom among U.S. aviation executives — that domestic demand will return faster than international, and that returning customers will seek the cheapest experience, not the most premium. It's a major problem for big global airlines that a few months ago charged $6,000 for a flat-bed seat to Tokyo, but potentially favorable for Alaska, a short-haul carrier with non-fu
