Shares of Alaska Air Group (ALK) flew 14% higher Tuesday morning after the Alaska Airlines parent unveiled its strategic plan aimed at creating $1 billion in incremental profit in three years. The carrier also boosted its guidance.

The plan, called "Alaska Accelerate," comes following the September completion of its $1.9 billion purchase of Hawaiian Airlines.

Alaska Air said "Alaska Accelerate" is targeting profit margins of 11%-13% and earnings per share (EPS) to at least $10 by 2027. In addition, it raised estimated synergies from the Hawaiian Airlines deal to at least $500 million by 2027.

The airline also announced the launch of Seattle as its new "global gateway," offering flights to Tokyo and Seoul on Hawaiian Airlines widebody planes starting in the spring, as well as a premium credit card.

Chief Executive Officer (CEO) Ben Minicucci explained that the combination with Hawaiian Airlines "will transform our business and solidify our competitive advantage for years to come."

Carrier Raises Current-Quarter Adjusted EPS Outlook

The carrier reported that it had raised its current-quarter adjusted EPS outlook to a range of $0.40 to $0.50 from $0.20 to $0.40, primarily because of "stronger revenue performance and lower non-operating expense." Alaska Air noted that "October and November close-in bookings were strong," and November revenue was better than anticipated. It added that December revenue "is outperforming our previous expectation due to stronger holiday demand."

Alaska Air Group shares recently traded at $61.70, their highest level in more than three years.