Alaska Air to acquire 4 cargo jets, base some in Hawaii

Alaska Airlines will effectively double its freighter fleet capacity next year with the addition of four leased Boeing 737-800 converted freighters, enabling it to operate dedicated cargo jets in Hawaii for the first time, the company announced Tuesday evening.

Separately, the company reported cargo revenue of $163 million for the second quarter, up 17% year over year. In the first half, cargo revenue was up 21% to $316 million.

The total includes payments from Amazon to fly 10 Airbus A330-300 converted freighters for its parcel network as well as incremental volume on new widebody aircraft introduced into international service.

Alaska Airlines (NYSE: ALK) currently operates three Boeing 737-700 converted freighters and two Boeing 737-800 passenger-to-freighter aircraft in its own network. The smaller 737-700 cargo jets are roughly equivalent to two -800s in terms of cargo space. The new planes are expected to enter service in the first half of 2027.

Alaska didn’t indicate which lessor will provide the cargo jets, but it currently leases the two 737-800 converted freighters from San Francisco-based Babcock & Brown Aircraft Management.

Alaska Airlines relies on its freighter fleet to serve Anchorage and other communities in Alaska via its main hub in Seattle, where shipments can connect with the passenger network for onward distribution throughout the United States and certain overseas destinations.

The cargo division also manages cargo shipments carried on its domestic narrowbody and international widebody passenger jets. Alaska Air Cargo will deploy the incoming freighter aircraft to serve Alaska and Hawaii. “Our intent is for any dedicated freighters in Hawai‘i to operate within Hawaii,” an Alaska spokesperson said in an emailed message.

The planes will be based at Honolulu airport and painted in the Hawaiian Air Cargo livery. In addition to extra capacity, dedicated cargo aircraft give communities greater service reliability.

That is especially important for e-commerce shipments with fast delivery schedules, as well as farmers, ranchers and fishermen in Alaska and Hawaii seeking to get goods to market. Alaska Airlines inherited widebody passenger jets — A330-300s and Boeing 787-9 Dreamliners — through its 2024 acquisition of Hawaiian Airlines.

It launched international widebody service from Seattle to Tokyo and Seoul, South Korea, last year and to London and Rome this year. Why It Matters: Alaska Airlines is the only U. S. passenger airline that operates freighter aircraft. It is the sixth largest U. S. airline by passenger capacity and it is expanding into international markets.

“Expanding our cargo fleet [… opens] up new international shipping opportunities for seafood and other commodities, while making sure we can reliably ship time-sensitive goods that our communities need, such as medicine, household supplies and groceries,” said Ian Morgan, vice president of cargo, in a news release.

In addition to removing seats and adding large cargo doors to accommodate pallets on the main deck, the conversion process involves extensive modifications to the fuselage, floor structure, loading systems, avionics and other systems to meet the demands of cargo transport.

The second quarter was difficult for Alaska Air, which reported a net loss of $76 million. Headwinds included an 85% spike in jet fuel prices related to the Iran war and tight oil supplies, which added $600 million in direct costs, as well as historic rain storms in Hawai’i that impacted spring break travel.

Alaska Air inherited the Amazon flying contract when it acquired Hawaiian Airlines. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Write to Eric Kulisch at ekulisch@freightwaves. com.

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