Alaska Airlines reported a negative impact on its capacity growth due to continued delays caused by an ongoing International Association of Machinists and Aerospace Workers (IAM) union strike at Boeing.
According to a Q&A document published last week, the airline stated it lowered its delivery and growth expectations for 2024 after the MAX grounding earlier this year – but recent strikes have compounded subsequent delivery delays.
As a result, Alaska’s growth expectations have been reduced by approximately two points in Q4, the document stated. The carrier reported it now expects its capacity growth to be less than 2% for the year versus its previous expectation of less than 2.5% growth year-over-year.
“On a combined basis, we expect capacity growth to be approximately 1.5% to 2.5% for the fourth quarter, with the legacy Air Group network roughly flat y/y and the Hawaiian network growing approximately 7-8% y/y,” Alaska stated.
The carrier also didn’t rule out utilizing additional Airbus A321neos in its answer.
“It remains too early to predict our future fleet strategy now that we operate a mixed fleet again,” Alaska stated. “We are familiar with the A321 and its capabilities and our future fleet design will be influenced by Boeing’s ability to restart MAX production and certify the MAX10 aircraft on schedule.”
The hit to Alaska’s capacity growth comes as the airline finalized its acquisition of Hawaiian Airlines in September. With the merger, Alaska Air Group now operates a combined fleet of Airbus, Boeing, and Embraer aircraft. However, the legacy Alaska brand is still an all-Boeing 737 operator.
The machinists strike at Boeing has stifled the manufacturer’s jet production and has had a ripple effect throughout the industry. Striking IAM members are set to vote on a new contract proposal from Boeing on Monday evening.
The latest proposal has been endorsed by the union’s leadership after members voted down a previous offer two weeks prior.
