An Alaska Airlines Boeing 737 MAX 9 departs Los Angeles International Airport en route to Puerto Vallarta, Mexico, Sept. 19, 2024.
Kevin Carter | Getty Images
Alaska Airlines is buying more than 100 Boeing jets, a purchase that the carrier’s fleet chief said will ensure it has locked in sought-after order slots through the middle of the next decade to expand.
The order, Alaska’s largest ever, announced Wednesday, includes 105 yet-to-be-certified Boeing 737 Max 10 jets. Alaska is also buying five 787-10 Dreamliners, using its previous purchase options for those long-haul jets as it charts international expansion.
Shane Jones, who oversees Alaska Airlines’ fleet, revenue products and real estate, told CNBC that the airline expects FAA certification of the Max 10 this year, with deliveries beginning in 2027.
Alaska, which merged with Hawaiian Airlines in 2024, had previously ordered more than 40 Max 10 planes. The new order includes options for 35 more. Fifty-three of the planes in Wednesday’s order are new, and 52 are from options the airline is exercising.
Boeing has more than 6,000 aircraft on backorder, but Alaska’s purchase plans are a vote of confidence in airplane maker, whose 737 factory 10 miles away from the carrier’s headquarters gave Alaska a 737 Max 9 two years ago without key bolts installed in a door plug. That panel blew out of the plane on Jan. 5, 2024, as it climbed out of Portland, Oregon, stunning travelers, though there were no serious physical injuries.
The accident set Boeing back in production as it waded through another safety crisis during what was supposed to be its turnaround year in the wake of two deadly Max crashes in 2018 and 2019.
The 737 Max 10 has a shorter range than some other models but it can fit more passengers than smaller variants, a boost to carriers’ unit costs on high-demand flights like cross-country routes.
Under Boeing CEO Kelly Ortberg, who replaced insider Dave Calhoun months after the accident, the plane maker has improved its production rate and quality, airline executives have said. It plans to ramp up production this year. The FAA must approve Boeing’s Max production increases, a requirement following the door plug accident.
Alaska’s Jones told CNBC that the carrier’s trust in Boeing is “a part of this order.” He also said it showed “our confidence in the Max 10 certification and our confidence in Boeing and their turnaround and their ability to produce quality aircraft on time.”
Jones said about half of the new aircraft orders are for replacement, with the rest for growth. He declined to disclose how much the airline paid for the aircraft. Manufacturers often share list prices, though big customers generally receive discounts for large orders.
