Alaska Air Group has announced it is increasing the value of its previously announced private offering of Class A Pass-Through Certificates from USD674.2 million to USD965.8 million and will concurrently issue Class B Pass-Through Certificates with an aggregate face amount of USD208.1 million.

Both private offerings will be secured against the group's aircraft, namely twenty-six B737-800s and sixteen B737-900(ER)s operated by Alaska Airlines (AS, Seattle Tacoma Int'l), and nineteen ERJ 170-200LRs operated by Horizon Air (QX, Seattle Tacoma Int'l). The Class A certificates will be priced at 4.8% per year and will have a final expected distribution date in August 2027. In turn, the Class B certificates will bear interest of 8% per year and a final expected distribution date in August 2025.

The carrier said it planned to use the proceeds for "general corporate purposes".

Alaska Airlines also said in a separate investor update that in response to slowly picking up demand, it reactivated "21 mainline aircraft, 11 Horizon aircraft, and eight SkyWest Airlines aircraft as of June 19, 2020". In May 2020, the carrier's traffic in terms of revenue passenger-kilometres was down by 90% year-on-year, with an 80-85% drop expected in June.

Despite the downturn, the airline has yet to amend its fleet strategy. It has already retired all A319-100s but otherwise has maintained plans to keep its fleet of eleven B737-700s, sixty-one B737-800s, twelve B737-900s, seventy-nine -900(ER)s, forty-nine A320-200s, ten A321-200neos, and three B737-700(BDSF)s. Alaska Airlines also plans to take deliveries of its first three B737-9s by the end of 2020. The aircraft were initially due in 2019.

In 2021, the carrier plans to retire seven A320s and one B737-800, and add fifteen B737 MAX 9s.

The carrier's regional fleet is due to remain stable throughout the remainder of 2020 and 2021, and will consist of thirty-two DHC-8-Q400s and thirty E175s operated by Horizon Air, and thirty-two E175s operated by SkyWest Airlines (OO, Salt Lake City).

"Given the drastically reduced demand for air travel as a result of the COVID pandemic, Alaska is continuing to evaluate its overall fleet strategy and long-term plan. It is probable that the current outlook as stated in the table above will change significantly," it said, however.

In operational terms, the airline said that it would, for the first time, start deploying the E175s in Alaska as of October 2020. The aircraft, which currently operate mainly short- and medium-haul services on the western seaboard of the US mainland, will be operated by Horizon Air.

"This jet gives us the flexibility to increase daily frequency between Anchorage Ted Stevens and Fairbanks Int'l up to seven times a day, and to provide year-round service to King Salmon and Dillingham. In time, the new mix of aircraft will unlock other markets in the state for future service," Regional Vice-President Marilyn Romano said.

According to the ch-aviation schedules module, Alaska Airlines currently uses Boeing narrowbodies alone to operate to and within Alaska.