AVIATION INDUSTRY

Alaska Air slows growth plans, reroutes some planes to balance spending and competitive pressures

Alaska Airlines and its regional Horizon Air subsidiary have deferred some jet deliveries to rein in growth. Horizon is also exiting some routes, such as Bellingham to Portland, and redeploying planes to more profitable routes.

Alaska Air Group is slowing the growth of its fleet and shifting some planes from busy but unprofitable Pacific Northwest routes as it grapples with financial and competitive pressures.

Alaska Airlines and regional subsidiary Horizon Air are deferring a total of 14 jet deliveries by at least two years to rein in what has been an intense rate of growth.

And Horizon is exiting some routes such as Bellingham to Portland, despite almost full airplanes on the dropped routes.

The reallocation of Horizon jets includes more flying into Seattle-Tacoma International Airport to maintain gates there against growing competition from Delta.

The fleet and route adjustments follow the huge growth surge from the merger with Virgin America.

Alaska Air Group"™s fleet will grow 6.5 percent this year after an average growth rate of between 7 and 8 percent per year over the past two decades.

With the delivery deferments, John Kirby, Alaska"™s vice president of capacity planning, said the airline will still grow at 4 percent in 2019 and 2020. That is still nearly double the growth rate of the U.S. economy and faster than the airline industry as a whole, he said.

"We"™re still a growth story," Kirby said. "When you buy another airline and get 30 percent larger and fuel prices go up about 25 percent, it"™s natural to slow down your growth"…

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