Alaska Airlines will effectively double its freighter fleet capacity next year with the addition of four leased Boeing 737-800 converted freighters, enabling it to operate dedicated cargo jets in Hawaii for the first time, the company announced Tuesday evening.
Fleet Expansion Details
The new aircraft are expected to enter service in the first half of 2027, according to Alaska Air. The carrier currently operates three Boeing 737-700 converted freighters and two Boeing 737-800 passenger-to-freighter aircraft. The smaller 737-700 jets are roughly equivalent to two -800s in terms of cargo space. Alaska didn’t indicate which lessor will provide the new cargo jets, but it currently leases the two 737-800 converted freighters from San Francisco-based Babcock & Brown Aircraft Management.
Alaska Air Cargo will deploy the incoming freighter aircraft to serve Alaska and Hawaii. “Our intent is for any dedicated freighters in Hawai‘i to operate within Hawaii,” an Alaska spokesperson said in an emailed message. The planes will be based at Honolulu airport and painted in the Hawaiian Air Cargo livery.
Financial Performance and Cargo Revenue
Separately, the company reported cargo revenue of $163 million for the second quarter, up 17% year over year. In the first half, cargo revenue was up 21% to $316 million. The total includes payments from Amazon to fly 10 Airbus A330-300 converted freighters for its parcel network, as well as incremental volume on new widebody aircraft introduced into international service.
However, the second quarter was difficult for Alaska Air, which reported a net loss of $76 million. Headwinds included an 85% spike in jet fuel prices related to the Iran war and tight oil supplies, which added $600 million in direct costs, as well as historic rain storms in Hawai‘i that impacted spring break travel.
Fleet Comparison
| Freighter Type | Current Count | Planned Addition | Capacity Note |
|---|---|---|---|
| Boeing 737-700 converted | 3 | None | Roughly equivalent to two -800s in cargo space |
| Boeing 737-800 converted (leased) | 2 | 4 new (leased) | To enter service first half 2027 |
| Airbus A330-300 converted (Amazon) | 10 | Already operating | For Amazon parcel network |
Operational Implications for Shippers and Forwarders
The expansion offers greater service reliability, especially for e-commerce shipments with fast delivery schedules, as well as farmers, ranchers and fishermen in Alaska and Hawaii seeking to get goods to market. Ian Morgan, vice president of cargo, said in a news release: “Expanding our cargo fleet [… opens] up new international shipping opportunities for seafood and other commodities, while making sure we can reliably ship time-sensitive goods that our communities need, such as medicine, household supplies and groceries.”
Alaska Airlines is the only U.S. passenger airline that operates freighter aircraft. It is the sixth largest U.S. airline by passenger capacity and is expanding into international markets, having launched widebody service from Seattle to Tokyo and Seoul last year and to London and Rome this year.
Watch List
- Entry of new freighters in first half 2027 will increase dedicated capacity, particularly for intra-Hawaii and Alaska routes.
- Jet fuel price volatility and geopolitical risks (Iran war) continue to pressure costs.
- Amazon contract performance and potential expansion of the parcel network could affect cargo revenue.
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