In the era of the pandemic, did Alaska Airlines make the right call by resisting the trend to offer lie-flat seating to its premium transcontinental flights? Alaska Airlines sure thinks so.
Alaska Airlines Is “Thankful” It Does Does Not Offer Lie-Flat Seats In First Class
During a recent earnings call on January 26th, Alaska’s Chief Commercial Officer, Andrew Harrison, was asked whether he regretted not installing lie-flat seats onboard its aircraft utilized for transcontinental travel:
“We feel really good. We are very thankful that we maintained a non-lie-flat position. We think our first class seats are spot on for the demand environment.”
While it may seem counterintuitive that a carrier would ever be thankful it offers what is essentially a vastly inferior product to all of its competition (American, Delta, JetBlue, and United), Alaska does have two things working to its advantage.
First, it caters to the cost-sensitive traveler. Its trancon prices continues to drop and I routinely see one-way fares from coast to coast for under $300 in first class. With limited in-flight offerings, that’s not only a reasonable price, but it also attracts a customer willing to pay a premium over coach, but perhaps not double or triple just for a lie-flat seat on a five-hour flight.
And during a time in which business travel is severely limited, the Alaska Airlines seat does seem “spot on” for the demand environment.
Harrison also noted the uniqueness of the Alaska Airlines travel base:
“Our business is down, whether you measure it by bookings or revenues, just like everybody else’s are. I think where we have a unique strength is, especially in Alaska, are in the commercial slopes, the fisherman, the oil workers, those types of things. We have strength. And, just the nature of our business, we still have a lot of small business travelers who do a fair bit of travel. The big ones that are the challenge, obviously, are the Microsofts and the Amazons with very strict policies right now on no travel.”
Is Alaska Airlines Smart To Avoid Lie-Flat Seating?
Innovation and market differentiation are an important factor in driving competition and keeping fares competitive. While I would avoid Alaska Airlines for these coast-to-coast fights, it is neither unwise nor unreasonable for Alaska Airlines to cater to a loyal elite base with frequent upgrades and more infrequent business travelers with a wider seat at a more affordable price.
Time will tell if Alaska made the right choice or not, but at this moment (with premium cabins empty on premier routes) it appears to be a wise one.
Tip: Check The Competition
Before you book a cheap fare on Alaska Airlines, though, do check the competition. JetBlue often matches Alaska Airlines, particularly on flights to/from Seattle. Would you rather fly JetBlue Mint or Alaska Airlines for $300 across the country? Yes, that’s any easy choice for JetBlue.
CONCLUSION
Alaska Airlines is “thankful” that it offers an inferior premium cabin product, often at a lower price point. While the pandemic era of travel seems to validate that business decision, the true test will come once the pandemic ends and business travels emerges again.
Are you willing to stay loyal to Alaska Airlines despite the inferior first class seat?
(H/T: Simply Flying)
But it still doesn’t explain why they have Bob Marley on the tail of their planes.
If I’m being honest, for anything other than a West Coast to East Coast red-eye, a domestic lie-flat seat is not a differentiator for me. The pricing you identify in this post seems fairly reasonable for the product offered for a non-overnight flight. No clue whether I am indicator of where the market is, but if Alaska is going to consistently price their adequate first class product like that, I will be happy to pay the modest premium for it.
I left United as a 1K for Alaska several years ago and it has been great. I normally book cheap F fares and don’t see the need for a layflat seat outside transcon red-eyes which I avoided anyway. Flying cheap F fares with 75K status nets me so many more valuable miles than United gave me.
It’s all relative. You say, inferior first class. I say superior frequent flyer program. The Alaska Airlines Mileage Plan is the best in the business. I will be flying first class (two round trips) on BA and Emirates this year on miles.
+1
+1
Separate to the topic of this post but somewhat related, Alaska has been pushing out a lot of BOGO flight deals over the last 6 months. That in addition to the quirky Russell Wilson touchdown discount has created a lot of opportunities for great deals. I think it is smart to stimulate demand, and wish that some other airlines would follow suit. I exclusively tried to use Delta when traveling for work, but now that I am only taking occasional leisure trips, I can’t justify paying double the amount to fly Delta over a BOGO Alaska deal. Kudos to them for trying something different during a trying time.
If I remember right (I read that article 2, 3 days ago), there are actually 2 reasons that non-lie-flat seats are not offered. First, as you mentioned, they thought they could offer better pricing. Second (and I think it’s equally important), they saved on vital fuel and maintenance costs. Given that cash is king these days, ferrying heavy empty lie-flat setup is, of course, not exactly economical.
Re “the true test will come once the pandemic ends and business travels emerges again”: given that Alaska seems to do OK before pandemic, I doubt it would be a bad situation post pandemic. This is even more true post-American-loving-affair. A lie-flat must-have traveler can just fly on American for the transcon, while Alaska locally (west coast). Hey, AA even have FIRST CLASS! JK on the screaming :), but you get the gist of the matter.
As a long time AS FF, million ++ flyer its just not worth the “Vig” for those sleeper seats transcon unless your flying across with a huge hangover how much rest do you really get ? International long haul of course. Alaska has always provided it’s passengers with clean comfortable seating and current generation planes something AA has a hard time with. “Must have” give me a break elitism sure practicality meh. And oh most of us long time AS flyers would just assume cancel the American deal, Parker nope!
There’s a reason the east to west lie flat seats are cheaper. Who needs them if it’s not a red eye? As long as AS isn’t competing on west to east flights with post 4pm departures they are winning. That’s easily arranged with the AA partnership.
I will fly Alaska up and down the West Coast, but for longer than 3.5 hrs flight, my 60 year old body just can’t do it anymore. I see all the people who are youmger, or business people who fly ALOT and routinely get upgraded to Premium or First for NOTHING. Only these flyers benefit from that mindset. Look, I used to do that to… but what happens to those of us who USED to be loyal to Alaska? If trying to complete with other low cost carriers, YOU CAN’T. SPIRIT gets a bad wrap, but their BIG FRONT SEAT has dimensions identical to Alaska first class. Unless, I have a lie flat seat, I spend the first entire day of my vacation of my 60 year old bod just trying to make up the JET LAG. I now take JETBLUE MINT and it makes a difference. I still travel Alaska when fares compete, but at least half of my travel is on other carriers when I used to solely use Alaska. They inherited AIRBUS with recliner seats, but didn’t take the hint… they removed a superior first class product and entertainment systems throughout (STUPID, STUPID, STUPID) on at least some airbuses, but haven’t seemed to figure out that the airbus is well booked when it’s available on any given day over ANY OTHER AIRCRAFT. I would ALWAYS choose Alaska, if only they would offer the Hawaii, Mexico, and/or Florida market with a business class product similar to JETBLUE.
Didn’t Alaska retreat from most of the CA – NYC transcon markets where lie flats are a thing
Greg never in it to begin with.
They were if you count Virgin America. Greg is correct that Alaska scaled back such service quickly.
I am another Alaska fan. Sure, I love lie-flat seating. I am elite on AA and can go that way if I need to, but even as Ex Plat on AA and Gold on Alaska, not highest tier, I get upgraded more on Alaska. Great service. Great phone support.
And let’s face it, they are all 737 other than some inherited Virgin America planes. How many 737 size planes has anyone seen with lie flat???? This makes their turning over flights simpler, and now the AA partnership adds other plane configurations, AA gets the Alaska connection more firmly formed. All good.
“First class” – more like premium economy.
Ah, the American way! 🙂
United is offering similar seats as well on the premium transcons.
They call them Premium Plus
An easy choice for jet blue? – I disagree
Why is that? JetBlue MINT offers free, fast internet, a great seat, delicious multi-course meals, great coffee and cocktails, and specially-trained FAs.