Alaska Airlines has been making headlines in mid-2025 with a mix of operational challenges and strategic advancements. The airline recently experienced a system-wide IT outage that caused significant flight disruptions, but it continues to push forward with its international expansion and fleet upgrades, aiming to enhance the overall passenger experience.

IT Outage Causes Widespread Disruptions

On Sunday, July 20, 2025, Alaska Airlines, including its subsidiary Horizon Air, experienced a temporary, system-wide ground stop due to an unexpected failure of a critical piece of multi-redundant hardware at its data centers. The outage, which lasted approximately three hours, led to the cancellation of over 150 flights, with residual impacts carrying into Monday, July 21. The airline quickly resumed operations and has been working to normalize schedules, apologizing to affected passengers for the inconvenience. This incident marks the second time in just over a year that the airline has had to halt its fleet due to a technology problem, highlighting the ongoing importance of robust IT infrastructure in the aviation industry.

International Ambitions Take Flight

Despite the recent IT setback, Alaska Airlines is firmly committed to expanding its international footprint, particularly following its merger with Hawaiian Airlines. The airline has introduced several new and exciting international routes:

Seattle to Rome: Alaska Airlines launched its first-ever nonstop transatlantic flight from Seattle-Tacoma International Airport (SEA) to Rome, Italy, in June 2025. This route marks a significant shift in the carrier's strategy, moving beyond its traditional domestic and short-haul international markets.

Seattle to Asia: As of May 2025, Alaska Airlines passengers can now fly between Seattle-Tacoma and Tokyo Narita International Airport (NRT). Service between Seattle and Seoul Incheon International Airport (ICN) is also scheduled to begin in October 2025. These new routes, facilitated by access to Hawaiian Airlines' widebody fleet (Airbus A330s and Boeing 787 Dreamliners), position Seattle as a major global gateway for the airline.

Mexico Expansion: Alaska Airlines has also bolstered its service to Mexico, with new routes from Los Angeles International Airport (LAX) to Monterrey International Airport (MTY) launched in February 2025, and previously to La Paz International Airport (LAP) in November 2024.

The airline has ambitious plans to add 12 international widebody destinations from Seattle by 2030, reinforcing its commitment to global connectivity.

Fleet Enhancements and Passenger Comfort

Alaska Airlines is making significant investments in its fleet to improve the passenger experience. By the end of 2025, travelers can expect to see several exciting changes across the 737 fleet:

More Premium Seating: The airline is increasing the number of First Class seats from 12 to 16 on its 737-800 and 737-8 MAX aircraft, offering enhanced legroom, new leg rests, and USB-C ports. Premium Class seats will also increase from 24 to 30 on 737-900ER and 737-9 MAX aircraft.

Modern Cabin Refresh: Nearly all 737 aircraft will feature a consistent look and feel with updated bulkheads, cabin dividers, new seat leather, and carpets, ensuring a modern and cohesive experience.

Onboard Technology: Device holders and USB-C charging ports are being added to every seat across many aircraft, providing convenient hands-free entertainment and power for personal devices.

Fleet Expansion: Alaska Airlines has confirmed additional orders for Boeing 787 Dreamliners and exercised options for 12 more 737 MAX 10 aircraft, further expanding its capacity for both long-haul and domestic routes. The airline took delivery of its 300th Boeing 737 in June 2025.

Financial Outlook and Other Developments

Alaska Air Group held its webcast for second-quarter 2025 financial results on July 24, 2025. In the first quarter of 2025, Alaska Air Group reported a GAAP net loss of $166 million, which included Hawaiian Airlines' results, compared to a net loss of $132 million in Q1 2024 (excluding Hawaiian). Despite this, the company's "Alaska Accelerate" plan targets $1 billion in incremental pre-tax profit and pre-tax margins of 11% to 13% by 2027, with a projected 2025 earnings per share (EPS) in excess of $5.75.

In other news, Alaska Airlines recently kicked off a partnership with Seattle Reign FC in July 2025 and introduced a fresh summer menu for passengers. The airline is also focusing on enhanced Mileage Plan benefits for 2025, including more milestone rewards and new ways to earn elite qualifying miles.

While navigating the challenges of a recent IT outage, Alaska Airlines is clearly focused on strategic growth, expanding its international network, and significantly upgrading its passenger experience, positioning itself for continued success in the competitive airline industry.