Alaska Airlines aims to increase profits through the introduction of new nonstop flights to Japan and Korea with a $1 billion post-merger investment.

• Next year, Seattle will see nonstop flights to Tokyo and Seoul by Alaska Airlines.
• Hawaiian Airlines was acquired by the carrier in September, granting it access to wide-body airplanes.
• Bank of America will partner with Alaska to launch a new "premium" credit card aimed at high-spending customers.

The company anticipates increasing profits by $1 billion by 2027 and intends to capitalize on the trend of luxury travel to achieve this goal.

In September, Alaska completed its $1.9 billion acquisition of Hawaiian Airlines, which was finalized less than a year after the deal was signed. Despite the acquisition, the two brands are currently operating separately.

Hawaiian Airlines will introduce nonstop service between its Seattle-Tacoma International Airport hub and Tokyo's Narita International Airport in May, using Airbus A330-200s. Additionally, the airline will launch a new route between Seattle and Seoul's Incheon International Airport in October. Tickets for the Tokyo flights will be available for purchase on Tuesday, while fares for the Seoul route will go on sale in early 2025.

By 2030, Alaska aims to offer at least 12 international destinations from Seattle via wide-body planes.

The carrier said Tuesday that it authorized a $1 billion share buyback.

Alaska forecast pretax margins of between 11% and 13% in 2027 and per-share earnings topping $10. The company estimated 2024 earnings of between $3.50 and $4.50 a share, including Hawaiian's results. Alaska raised its fourth-quarter earnings estimates to 40 cents to 50 cents a share, up from a previous outlook for 20 cents to 40 cents.

The airline is introducing a new "premium" credit card with its partner, aimed at generating revenue from customers even when they are not flying.

The airline is considering enhancing its premium seat offerings on its Airbus A330s, as more customers are willing to pay for more room and comfort during travel, according to Chief Financial Officer Shane Tackett.

"Tackett stated that most revenue growth over the past few years has been in areas of demand, and he believes this trend will continue. He emphasized that the company has a strong main cabin product but there is a growing demand for premium economy and first class, which the company needs to address."

Customers are increasingly purchasing more seats in first class and premium economy than ever before, rather than receiving free upgrades, according to Tackett.

Delta, Seattle's rival with a 24% domestic-passenger market share, has also observed the shift in demand for first-class seats. Despite having a larger share of international passengers from the airport, Delta's domestic market share is second to Alaska's 55%.

Alaska announced plans to open a new lounge at San Diego International Airport. On Wednesday, Delta unveiled its third Delta One Lounge in Boston, following openings in New York and Los Angeles this year, exclusively for customers traveling in its premium cabin.

Boeing is expected to see more shifts in Alaska's deliveries, according to Tackett's statement to CNBC.

In January, a door plug blew off one of Alaska's nearly new Boeing 737 Max 9s due to missing key bolts. This near catastrophe and increased quality checks have slowed Boeing's production and deliveries to airlines, including Alaska.

"Tackett stated that Boeing, led by new CEO Kelly Ortberg, is making progress but it won't happen in a week. He emphasized that quality is the top priority for them, as it is more important than rate."

Boeing is set to reveal its November aircraft orders and deliveries at 11 a.m. on Tuesday, but the tally may be impacted by the nearly two-month machinist strike that halted production of most of Boeing's aircraft.