Alaska Air is upgrading its premium travel offerings to take on the biggest U.S. airlines. It is installing a new premium economy section on planes that fly overseas and across the country. And it is beefing up its international business-class offering with new lie-flat suites and devoted lounge space.

Since its purchase of Hawaiian Airlines two years ago, the Seattle-based carrier has been expanding its reach. It launched flights to Europe and Asia from its hometown hub and has plans for more. Now the carrier needs more premium options to woo customers away from larger rivals. "We needed those products to meet the size and scale of our network as it expands," said Andrew Harrison, Alaska's chief commercial officer.

Alaska's new 41,000-square-foot lounge in Seattle—set to open in late 2027—will include a dedicated lounge for Aurora Suites passengers on intercontinental flights. Alaska expects its Aurora suites to start flying in 2028 on its Boeing 787 Dreamliner fleet. Its Airbus A330 planes are getting entirely new interiors, including new suites with closing doors. After the updates, premium seating will account for close to 46% of seats on 787-9 jets, up from 38% now.