Big Bet on Boeing: Alaska Airlines Orders Over 100 Jets
Alaska Airlines orders over 100 Boeing jets in its biggest deal ever, boosting Boeing’s turnaround and strengthening confidence in the 737 Max program.
Alaska Airlines is buying more than 100 Boeing jets, a purchase that the carrier's fleet chief said will ensure it has secured in-demand order slots for expansion through the middle of the next decade.
The order, Alaska's largest ever, announced Wednesday, includes 105 of the yet-to-be-certified Boeing 737 Max 10 jets. Alaska is also buying five 787-10 Dreamliners, exercising its previous purchase options for those long-haul jets as it plans for international expansion.
Shane Jones, who oversees fleet, revenue products and real estate for Alaska Airlines, said the airline expects the Max 10 to receive FAA certification this year, with deliveries beginning in 2027.
Alaska, which is merging with Hawaiian Airlines in 2024, had previously ordered more than 40 Max 10 aircraft. The new order includes options for 35 more aircraft. Of Wednesday's order, 53 aircraft are new, and 52 are from options the airline is exercising.
Boeing has a backlog of more than 6,000 aircraft, but Alaska's purchasing plans signal confidence in the aircraft manufacturer, whose 737 factory is 10 miles from the carrier's headquarters, which delivered a 737 Max 9 to Alaska two years ago that was missing critical bolts in a door plug. That panel blew off the aircraft on January 5, 2024, while it was flying from Portland, Oregon, startling passengers, though no serious injuries were reported. This incident set Boeing back in production, as it grappled with another safety crisis following two fatal Max crashes in 2018 and 2019, during what was supposed to be its turnaround year.
The 737 Max 10 has a shorter range than some other models, but it can seat more passengers than smaller variants, which boosts carriers' unit costs on more demanding flights such as transcontinental routes.
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Under Boeing CEO Kelly Ortberg, who replaced insider Dave Calhoun months after the incident, the aircraft manufacturer has improved its production rate and quality, airline executives said. It plans to increase production this year. The FAA must approve Boeing's Max production increase, a requirement stemming from the door plug incident. Alaska's Jones said the carrier's confidence in Boeing "is part of this order." He also said it "demonstrates our confidence in the Max 10 certification and our confidence in Boeing and their turnaround and their ability to produce quality aircraft on time."
Jones said about half of the new aircraft orders are for replacements, and the rest are for growth. He declined to say how much the airline paid for the aircraft. Manufacturers often quote list prices, although large customers typically receive discounts on large orders.
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