Alaska Airlines, the second-largest carrier at San Francisco International Airport, is reshaping its cabin configurations by introducing premium economy and business-class upgrades, effectively reducing the availability of cheaper seats. The airline, part of Alaska Air Group, unveiled new Premium Reserve
premium economy cabins and “Aurora Suites” business-class seats, which will debut on select routes starting in 2028. These changes, detailed in multiple sources, reflect a broader industry shift toward prioritizing higher-revenue premium seating.
The Premium Reserve
cabins, featuring 38-inch pitch, leg and calf rests, 16-inch 4K screens, and upgraded dining, will be installed on Alaska’s Boeing 787 Dreamliners, select 737 Max 10s, and Hawaiian Airlines’ Airbus A330s. Hawaiian Airlines’ A330 fleet will also see a reduction in standard economy seats, from 278 to 254 total seats, with 36 fewer Main Cabin seats to make room for the new premium economy and lie-flat suites. This reconfiguration, according to Beat of Hawaii, creates a cleaner progression
through the cabin, with economy at 31 inches of pitch, premium economy at 38 inches, and lie-flat suites above.
Industry-Wide Shift and Competitive Pressure
Alaska’s move aligns with a broader trend in U.S. aviation, where carriers are phasing out basic economy seats to focus on premium offerings. The airline’s CEO, Ben Minicucci, acknowledged in a 2026 earnings call that legacy carriers hold an edge in premium and international markets, prompting Alaska to “lean into” these areas. The new cabins, which will cost significantly more than basic economy fares—round-trip business-class flights from Seattle to Tokyo, for example, start at $6,500—aim to attract passengers willing to pay for enhanced amenities.
The upgrades also include lie-flat seats on domestic flights for the first time, with 25 of Alaska’s 105 ordered 737 Max 10s slated to feature “Aurora Suites” by 2028. These narrowbody planes will also include 12 Premium Reserve seats, creating a four-cabin layout. However, the rollout faces delays: the 737 Max 10’s FAA certification has been postponed due to a software issue, per Business Insider. Despite this, Alaska plans to debut the new cabins on its 787 fleet, where 46% of seats will belong to premium cabins by 2028, up from 38% currently.
Impact on Passengers and Market Dynamics
The changes may disproportionately affect budget-conscious travelers. Hawaiian Airlines’ Premium Class, which previously offered 36 inches of pitch, will shrink to 34 inches to accommodate the new Premium Reserve cabin. This reduction, while minor, narrows the legroom gap between standard economy and premium options. Meanwhile, the introduction of Premium Reserve fills a long-standing void for travelers seeking more space than economy but less than first class.
Alaska’s strategy also includes expanding its global footprint. The airline’s 787 fleet, now heavily premium-focused, will support international routes, while the 737 Max 10s aim to compete on transcontinental services. The new “Aurora” livery, inspired by the Northern Lights, will distinguish these aircraft, reinforcing Alaska’s brand identity. As the airline invests in premium offerings, it faces pressure from legacy carriers with established international networks, but the shift highlights a clear bet on higher-margin seating.