Alaska Air Orders 105 Boeing 737-10s and Five 787 Dreamliners, BofA Flags 30% Upside
Bank of America included Alaska Air Group among 30 smid-cap stocks whose price targets imply nearly 30% upside, and noted 90% of names saw EPS revisions up with median 23% growth forecasts. Alaska Air Group agreed to purchase 105 Boeing 737-10s and five 787 Dreamliners.
1. Alaska Air Group Secures Landmark Boeing Order
Alaska Air Group has finalized an aircraft purchase agreement with Boeing for more than 105 Boeing 737-10 jets and five Boeing 787 Dreamliners. The deal, announced in early January 2026, marks one of Alaska’s largest fleet investments in over a decade, expanding its narrowbody and widebody capabilities. The 737-10s will replace older 737-900ERs, improving fuel efficiency by approximately 10% per seat, while the new 787 Dreamliners will support long-haul route expansion to markets in Asia and Europe. Delivery is scheduled between 2026 and 2032, with options to convert additional orders based on route performance and demand dynamics.
2. Broader Implications for U.S. Manufacturing and Airline Operations
Transportation Secretary Sean Duffy praised the deal as evidence of renewed confidence in American manufacturing, calling it a milestone that could usher in a “golden age of travel.” He highlighted that the order dovetails with ongoing upgrades to the nation’s Air Traffic Control system—investments of more than $5 billion over five years aimed at increasing capacity and reducing delays. For Alaska Air Group, the modernized fleet will lower maintenance costs by an estimated $150 million annually and reduce carbon emissions by nearly 20% per seat mile, aligning with the carrier’s sustainability targets and strengthening its competitive position on transpacific and transcontinental routes.