Alaska Air eyes 50% share of intra-island Hawaii cargo market

Alaska Airlines aims to secure a 50% share of Hawaii's intra-island cargo market by 2030, according to executives speaking at an investor event. The acquisition of Hawaiian Airlines in September 2024 has enabled the Seattle-based carrier to diversify its cargo business through international route expansion and intra-island freighter service in Hawaii.

Since the merger, Alaska's cargo revenue has grown 57% to $549 million last year, and the company projects it will reach $750 million by 2030. Currently, Alaska Air serves five international destinations and plans to add Paris and Athens to its route network next year, with the goal of flying to 15 international destinations by 2030.

The airline operates three Boeing 737-700 converted freighters and two larger Boeing 737-800 passenger-to-freighter aircraft in its domestic network. Plans are in place to lease four additional 737-800 converted freighters and operate two new dedicated freighters within Hawaii, serving the islands from Honolulu airport. Alaska Air already operates 11 Amazon freighters, with the planes being supplied by Amazon and Alaska responsible for crews, maintenance, and insurance.

The company's cargo chief, Ian Morgan, believes that by adding dedicated freighter service, leveraging Hawaiian's brand and loyal customer base, and applying the operating model refined in Alaska, the airline can achieve a 50% share in the interisland cargo market.