Hawaiian now operates 6 of 10 A330-300 P2Fs that Amazon contracted for
Alaska reported cargo revenue of $348 million for 12 months ended December 2024.
Hawaiian Airlines, a part of the Alaska Air Group, received two A330-300 freighter aircraft from Amazon during the fourth quarter, bringing the total within the airline's fleet to six.
Alaska operates six A330-300 P2Fs for Amazon, and four more are set to join the fleet as part of the initial deal for 10 aircraft signed in October 2022. All ten aircraft were originally schedule for redelivery, after conversions by EFW and on leases from Altavair, by the end 2024.
Alaska reported a cargo revenue of $348 million for the 12 months ended December 2024 as against $252 million in 2023, an increase of 38 percent, says an official release.
While Alaska Airlines reported cargo revenue of $279 million (an increase of 14 percent YoY), Hawaiian reported revenue of $59 million.
For the fourth quarter, total cargo revenue more than doubled to $132 million.
Alaska-Hawiian story
Alaska had completed the $1.9 billion acquisition of Hawaiian Airlines in September 2024, and taken over the cargo operations for Amazon as part of the merger. Hawaiian Holdings, the parent company of Hawaiian Airlines, granted Amazon warrants to acquire up to 15 percent of its common shares. These warrants can be exercised over the next nine years. This practice is typical for Amazon Air, which followed a similar approach with its other freighter operators including Air Transport Services Group (ATSG) and Atlas Air Worldwide.
Alaska Air Group, which includes Alaska Airlines, Hawaiian Holdings, Horizon Air and McGee Air Services, had announced the launch of Alaska Accelerate, its three-year strategic plan to deliver $1 billion in incremental profit following the combination with Hawaiian Airlines in December 2024.
Jason Berry, EVP, Cargo, Alaska Airlines and President, Horizon Air said during the presentation that the cargo business is set to expand in strategic importance for the group and deliver $150 million incremental profit. "Network synergies ($35 million), Yield and Optimisation ($55 million) and CMI+other ($60 million) will drive profit," Berry said.
2024 numbers
Alaska reported a total operating revenue of $11.7 billion for 2024, an increase of 13 percent and net income of $395 million.
"This was a transformational year as we brought Hawaiian Airlines into Alaska Air Group and began our journey to unlock $1 billion in incremental pretax profit over the next three years,” says Ben Minicucci, CEO, Alaska Air Group. “We’re proud that our incentive plan will reward Alaska Airlines and Horizon Air employees with nearly six weeks of pay, which we believe will lead the industry. Looking forward, our vision is clear and we’re focused on executing our strategic plan – leveraging the strengths of our combined network, enhancing the end-to-end travel experience for our guests, and delivering value for everyone who depends on us."
The company has authorised a new $1 billion dollar share repurchase plan to be executed over the next four years, with repurchases beginning in January 2025, the release added.
