Alaska Air shows the formidable power of "the Eskimo" even as its capacity outpaces the industry

Alaska Air Group plans 8% capacity growth in 2015, which is lower than the roughly 10% rise the airline will post in 2015, but higher than the industry average. Higher than average capacity growth has been the norm at Alaska Air during the last five years. The company finds itself constantly defending its expansion, pitting that growth against consistent profitability and an expansion of top line revenue.

Alaska Air believes 4% to 8% capacity growth is the ideal range for its business, and using that growth profile baseline, concludes it can generate annual increases in revenue of 3% to 8%. One new revenue stream Alaska is adopting in the short term is the creation of a premium economy product, a trend that has swept much of the US industry.

As Alaska Air looks to increase the amount of revenue generated within the aircraft cabin, revenues from the company's partnerships have diminished. But the company has made up for the shortfall by increasing its own branded revenue, driven by Alaska's solid network expansion during the last few years.