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An Alaska Airlines Boeing 737 MAX 9 departs Los Angeles International Airport en route to Puerto Vallarta, Mexico, on September 19, 2024.
Kevin Carter | Getty Images
Alaska Airlines Buys more than 100 Boeing jets, a purchase that the carrier’s fleet chief said will ensure it has the coveted order slots through the middle of the next decade for expansion.
The order, Alaska’s largest ever, and announced Wednesday, includes 105 Boeing 737 MAX 10 aircraft that have not yet been certified. Alaska is also buying five 787-10 Dreamliners, using previous purchase options for those long-range jets as it plans international expansion.
Shane Jones, who oversees Alaska Airlines’ fleet, revenue products and properties, told CNBC that the airline expects to receive FAA certification for the Max 10 this year, with deliveries to begin in 2027.
Alaska, which merged with Hawaiian Airlines in 2024, had previously ordered more than 40 Max 10 aircraft. The new order includes options for 35 more. Fifty-three of the planes from Wednesday’s order are new, and 52 of them are options exercised by the airline.
Boeing has more than 6,000 planes on order, but the Alaska purchase plans are a vote of confidence in the planemaker, which gave the 737 factory 10 miles from the carrier’s Alaska headquarters a 737 Max 9 two years ago without two key bolts installed in the door seal. That panel exploded from the plane on January 5, 2024, as it was boarding from Portland, Oregon, stunning passengers, although there were no serious physical injuries.
The accident sent Boeing back into production while it was going through another safety crisis during what was supposed to be a year of transformation following two fatal MAX crashes in 2018 and 2019.
The 737 Max 10 has a shorter range than some other models, but it can seat more passengers than smaller models, boosting carriers’ unit costs on high-demand flights such as cross-country routes.
Under the leadership of CEO Kelly Ortberg, who replaced Dave Calhoun months after the accident, Boeing has improved its production rate and quality, airline executives said. It plans to increase production this year. The Federal Aviation Administration must approve increases in Boeing Max production, a requirement after the door seal incident.
The carrier’s confidence in Boeing is “part of that demand,” Alaska’s Jones told CNBC. He also said it demonstrated “our confidence in the Max 10 certification and our confidence in Boeing and its transformation and ability to produce high-quality aircraft on time.”
About half of new aircraft orders are for replacement, with the rest for growth, Jones said. He refused to reveal the amount the airline paid for the plane. Manufacturers often share list prices, although larger customers generally get discounts for larger orders.
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