Alaska Air Group earned a spot on Bank of America Global Research’s list of 30 ‘smid-cap’ stocks, with analysts projecting an average implied upside of nearly 30% over the next 12 months. According to the report, roughly 90% of these companies saw positive consensus EPS revisions in the past quarter, and Alaska Air specifically benefits from median growth projections of 23% for the next year. Investors have taken note of the airline’s lean balance sheet and improving unit revenues, positioning it to capitalize on a rebound in domestic travel demand once rate cuts begin.

In a landmark agreement with Boeing, Alaska Air Group committed to the purchase of over 105 737-10 jets alongside five 787 Dreamliners. The 737-10 order, the largest single-aisle acquisition in the airline’s history, is slated for delivery starting in 2025, with the wide-body Dreamliners scheduled to enter service in 2027. Company executives highlighted the fleet renewal as a key driver of unit-cost reduction and route expansion, particularly on transpacific and high-density domestic corridors.

Transportation Secretary Sean Duffy hailed the Alaska-Boeing deal as evidence of a ‘Golden Age of Travel’ for U.S. aviation and manufacturing. He pointed to planned upgrades to the national Air Traffic Control system, backed by federal infrastructure funding, as a catalyst for operational efficiency and safety enhancements. For Alaska Air, these improvements dovetail with fleet modernization plans, promising reduced fuel burn, lower maintenance costs, and accelerated turnaround times that will bolster profitability as capacity ramps up over the next three years.