Alaska Air Group sets $750M cargo revenue goal by 2030

Alaska Air Group has made cargo one of the pillars of the next phase of its Alaska Accelerate strategy. The carrier says it sees a clear path to $750 million in annual cargo revenue by 2030, and plans to more than double the size of its cargo business.

The company outlined the plan at its 2026 Investor Day in Seattle, as Alaska Accelerate moves from foundation-building to what the airline calls its “activation phase”. Cargo revenue has grown by approximately 60% since 2024.

Alaska identified four opportunities behind the $750 million target: Hawai’i freighter flying, mail, international belly capacity and broader network connectivity.

The group currently operates five dedicated cargo freighters, with four more expected in 2027. Alaska Airlines has signed long-term leases for four additional Boeing 737-800 Converted Freighters (BCF), taking the dedicated fleet from five to nine aircraft. The new freighters are expected to enter service in the first half of 2027 and will be dedicated to Alaska and Hawai’i. The Hawai’i-based aircraft will carry Hawaiian Air Cargo livery. The airline gave no timelines or investment figures for the other growth areas in its announcement.

Ian Morgan, Vice President of Cargo at Alaska Airlines, said the four additional freighters will effectively double freighter capacity. He said they will make cargo service more reliable for the communities Alaska serves and give the airline more flexibility in allocating aircraft across its cargo network. Morgan added that the expansion opens new international shipping opportunities for seafood and other commodities, while ensuring reliable movement of time-sensitive goods such as medicine, household supplies and groceries.

Within Alaska Accelerate, cargo is expected to deliver $150 million in new annual profit as the carrier integrates Alaska and Hawaiian's cargo operations and expands internationally out of Seattle.

Cargo sits within the “Diversify our future” pillar of Alaska Accelerate. Through this pillar the group aims to raise the share of revenue from outside the main cabin, which includes premium, international, loyalty and cargo. Alaska describes these as higher-margin streams that depend less on domestic fare levels and are more resilient through the cycle. It expects diversified revenue to approach 60% of total revenue by 2030, up from 53% today.

Alaska Air Cargo is the only legacy US passenger airline with a dedicated freighter fleet. It carries more than 370 million pounds (about 167,000 tonnes) of cargo a year to over 100 destinations across North America, Europe, Asia and the Pacific. The freighters serve 19 communities across Alaska, and the division offers belly capacity on more than 400 passenger aircraft, including B787 and A330 widebodies.

That belly capacity is set to grow with Alaska's long-haul expansion from Seattle, its largest global hub, which serves 110 destinations. It has five intercontinental destinations today, including London, Rome, Reykjavik, Tokyo and Seoul. Paris and Athens are due from spring 2027, taking the total to seven that year, then 10 by 2028 and 15 by 2030. Long-haul flying is expected to grow from about 8% of network capacity today to roughly 15% by 2030. The group operates 422 aircraft today and expects 475 by 2030 and more than 550 by 2035, following the largest fleet order in its history.

Hawai’i is central to the cargo story as well as the passenger one. Honolulu is Alaska's second-largest global hub and the home base of Hawaiian Airlines, which is the No. 1 airline flying to, from and within the Hawaiian Islands. The added freighter capacity there expected to benefit the state's e-commerce and logistics sectors. Jayson Watts, Chair of the Hawai’i Agribusiness Development Corporation, said dedicated cargo capacity gives farmers and ranchers a reliable way to get fresh products to market. Alaska is also continuing its Kahu’ewai Hawai’i Investment Plan, and Hawaiian has joined the oneworld alliance, strengthening Honolulu as an international hub.

Alaska also flies ten Airbus A330-300 converted freighters for Amazon Air under a contract inherited with Hawaiian Airlines, signed in October 2022. The aircraft were originally leased from Altavair. In March 2026, IAT Leasing said it had bought the portfolio from Altavair-managed funds, on behalf of funds managed by Blue Owl Capital and financed by MUFG.

Alaska Air Group launched Alaska Accelerate in December 2024 with the aim of delivering $1 billion in incremental profit. That figure includes $500 million of merger synergies from combining Alaska and Hawaiian. The company says it has captured roughly two-thirds of the target and remains on track to reach the full amount by 2027.

"The heavy lifting is behind us, the value creation is in front of us," said Ben Minicucci, CEO of Alaska Air Group. He added that the company is entering the phase where its investments in premium products, global connectivity, loyalty, cargo, and Hawai’i increasingly show up in its results.