CNBC Television · Sep 29, 2026
With Ben Minicucci, President and CEO of Alaska Air Group
Revenue from outside Alaska Air Group's main cabin has grown from 15% in 2015 to 53% today, Ben Minicucci said, and the airline is targeting 60%.
United and Delta built out premium cabins years ago. Minicucci says Alaska's own build phase is only now finished, and the payoff is what comes next.
"Today, we're at 53% and all of this is designed to take our revenue base, our diversified revenue base, to 60% outside the main cabin." — Ben Minicucci
Minicucci has run Alaska Air Group since 2021 and led its acquisition of Hawaiian Airlines, and he was speaking on the day the combined carrier laid out its next growth phase at its 2026 Investor Day.
The full segment is covered here so you can skip it.
Here are the 4 numbers that matter.
Key Takeaways
Revenue from outside the main cabin has grown from 15% in 2015 to 53% today, and Alaska is targeting 60%
The build-out spans new premium cabins, international routes, cargo and the loyalty program
The Boeing 737 MAX-10's software-certification delay doesn't change Alaska's timeline yet, Minicucci said
Its lie-flat MAX-10 seats aren't due until fall 2028; the aircraft itself was already planned for 2027-28
Alaska is raising fares and demand hasn't cracked, even with jet fuel "high now" and no fourth-quarter guidance given
New lounges open in San Diego, Seattle and Honolulu within the next year and a half, part of a new Hawaiian-branded lie-flat suite called Leihōkū
1. New Cabins, a Boeing Delay
The host opened the interview at Alaska's customer center in Washington state, where the airline was holding its investor day, asking how quickly Alaska can retrofit its cabins with new premium seats. Minicucci pointed to a new lie-flat suite for Hawaiian Airlines, one half of a two-part cabin overhaul Alaska Air Group unveiled the same day.
The new Hawaiian-branded suite is called Leihōkū
"It's called Leihōkū, for Hawaiian." — Ben Minicucci
The rollout spans Alaska's 787s, its 737-10 MAXes and its 330s, with the new seats reaching the 737 MAX-10 specifically.
"But all of this is going to come to life by the fall of 28." — Ben Minicucci
The host pushed on the aircraft itself: the MAX-10 is not yet certified, after the FAA flagged a software bug the day before. Minicucci said Alaska is not alarmed by the delay.
A months-long certification delay wouldn't change Alaska's 2027-28 timeline
"So, we're happy that they're finding these issues right before certification." — Ben Minicucci
"It's going to definitely push to the right if it moves that long, Phil." — Ben Minicucci
