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Alaska Air Group, Inc. will host its previously announced 2024 Investor Day at 1 p.m. Eastern time today in New York City. In its first presentation since acquiring Hawaiian Airlines, the company will unveil Alaska Accelerate, its vision for the combined company, including how it will power commercial performance, achieve medium-term financial targets, and unlock significant value creation into the future.

Alaska Accelerate
Alaska Accelerate is architected to deliver on the combined airline’s vision of connecting guests to the world with a remarkable travel experience rooted in safety, care and performance. Significant investments in the commercial organization will propel the company forward, revolving around four main goals:

Connect our guests to the world:
Enabling the power of an expanded network by opening a global gateway in Seattle with long-haul widebody aircraft, seamlessly blending two route networks to optimize connections and deepen relevance for guests. Alaska and Hawaiian now operates over 1,400 daily flights to over 140 cities and can take people to over 1,200 destinations worldwide with global partners and through the oneworld Alliance.

Be Hawai‘i’s trusted airline:
Providing Hawai‘i residents access to an expanded network, greater connectivity wherever they want to fly, and a dedicated loyalty program, Huaka‘i by Hawaiian.

Deliver a remarkable travel experience:
Investing in its existing end-to-end premium experience including enhanced airport lobbies and lounges in our hubs, expanded premium seat capacity, a new loyalty platform, and a premium credit card offering.

Diversify our future:
Maximizing opportunities to create and grow revenue across the business from cargo growth to innovation and investing in technologies for the future.

Enabling significant value creation
This acceleration of Alaska Air Group’s strengths and competitive advantages will enable significant value creation and deliver industry-leading financial results.

The company’s new 2027 financial targets will include:

$1 billion in incremental profit

Earnings per share of at least $10

Double digit pretax profit margins 11-13%

No margin dilution in year 1 following the merger

Synergy estimates doubled to at least $500M

Expanding commercial growth and opportunity
With contributions coming across network, product, loyalty and cargo, the commercial organization will drive the vast majority of the expected profit growth over the next three years — unlocking an additional $800M in revenue.

The commercial growth begins today with benefits for every guest and customer.

Connecting our guests to the world
The company will begin offering new nonstop flights on A330 aircraft to key Asian leisure and business markets in 2025 – connecting Seattle to Tokyo Narita in Japan and Seoul Incheon in South Korea.

Daily nonstop Seattle-Tokyo Narita service starts in May 2025, offering guests an enticing nonstop option between the Pacific Northwest and Japan. Flights can be purchased now at alaskaair.com and hawaiianairlines.com. Nonstop Seattle-Seoul Incheon service is scheduled to begin in October 2025, with fares available for purchase early next year.

For more information about the new Seattle service to Tokyo Narita and Seoul Incheon, as well as additional network and schedule changes, click here.

Scaling our premium experience
Announced in July, Alaska will increase its premium seat mix on its Boeing narrowbody fleet to 29%, with plans to expand premium cabins on the widebody fleet being developed.

Alaska will continue to expand the Lounge program, building off the recently-opened remodel in San Francisco. Planned Lounges in San Diego International Airport and Honolulu’s Daniel K. Inouye International Airport will join the portfolio, followed by a new flagship international lounge in Seattle by 2027.

These investments will serve to sustain and improve an already industry-leading net promoter score for both Alaska Airlines and Hawaiian Airlines – 20 points above the legacy carriers’ average.

Creating a valuable loyalty ecosystem
In addition to previously announced enhancements to the award-winning Mileage Plan, Alaska will launch a premium credit card built for the global traveler, including an innovative Global Companion Award Certificate, 3x miles on all eligible foreign and dining purchases, an even faster path to elite status and more. The premium credit card will be perfect for the guest looking to get the most out of the expanded Alaska Air Group network.

Interested guests can join an early-access list to receive an exclusive link to apply for the new premium credit card, which is expected to be available in summer 2025. Pre-register your interest at alaskaair.com/premium-card by Dec. 31, 2024, for an exclusive offer.

Growing cargo and diversifying revenue
Building on the decades-long expertise of serving communities reliant on air travel and freight, the combined network and widebody fleet is poised to double in revenue over the next few years. The expanded cargo organization is led by industry veterans and is estimated to unlock margins that are two to three times the system average.

As Asia represents 22% of the total global air cargo market, the new passenger service between the continental United States and Japan and South Korea are the first steps to directly connect Alaska’s Seattle flagship cargo hub to the world’s most lucrative cargo markets.

Full Year 2025 Outlook
Looking ahead, the company anticipates its synergy targets and commercial initiatives will allow for no dilution to adjusted pretax margin in 2025 compared to 2024. Further, it expects to grow

EPS by 30% and produce positive free cash flow, while investing in the fleet, balance sheet and shareholder returns.

Webcast Information
Webcast information Alaska’s Investor Day presentation will be available via webcast at news.alaskaair.com/investor-relations starting at 1 p.m. Eastern time and concluding at approximately 3 p.m. Eastern time. The webcast and presentation materials can be accessed through Alaska’s investor relations website. A replay will be available following the conclusion of the event.