Alaska Airlines CFO Expects Business Travel Rebound in 2023

Shane Tackett, the Chief Financial Officer of Alaska Airlines, recently expressed optimism about the revival of business travel in 2023. The sector has faced significant setbacks due to the impact of the Covid-19 pandemic.

Tackett revealed that business travel is presently operating at approximately 75% of its pre-pandemic levels. However, he anticipates a substantial recovery, with levels potentially reaching 90% or higher by the end of 2023.

Despite the challenges, Alaska Airlines has witnessed robust demand in leisure travel, particularly to destinations like Hawaii, Alaska, and Mexico, where the airline maintains a competitive edge. Tackett also credited the airline’s strategic partnership with American Airlines and its membership in the Oneworld alliance for expanding its network and customer base.

Nevertheless, Tackett acknowledged that business travel, especially among major corporate clients such as tech giants Microsoft, Amazon, and Google, remains subdued. These companies are currently operating at only 25% to 30% of their pre-pandemic travel volumes and have not provided a clear timeline for returning to normal travel patterns.

Tackett remains confident that business travel will make a strong comeback, recognizing the irreplaceable value of face-to-face meetings and interactions across various industries. He anticipates a gradual return of business travelers to the skies in the first half of 2023 as vaccination rates rise and travel restrictions ease.

Alaska Airlines is well-prepared to capture the business travel market, with a focus on offering high-quality service, maintaining a loyal customer base, and operating a flexible fleet. Throughout the pandemic, the airline maintained a strong financial position, invested in fuel-efficient and eco-friendly aircraft such as the Boeing 737 MAX and Airbus A321neo, and enhanced its digital capabilities and customer experience by providing free Wi-Fi and streaming entertainment onboard.

Tackett’s confidence in Alaska Airlines’ resilience and competitiveness underscores the airline’s commitment to welcoming back business travelers in the near future.

Sources: AirGuide Business airguide.info, msn.com, alaskaair.com