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 and trying to bring more travelers into its fold. 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 isn't new to premium travel. The wide-body jets it flies to Europe, which it acquired in the Hawaiian deal, are already outfitted with business class suites.

It opened up a dedicated check-in and concierge service for international business-class travelers ahead of its first flights to Rome earlier this year. And its airport clubs feature amenities such as pancake printers and make-your-own pho.

But it didn't have some amenities high-end travelers expect. And it didn't have the four-class cabin that has become standard for many carriers' long-haul flights.

Alaska has struggled with rising fuel costs in recent months, and it has faced curveballs such as IT outages last year and harsh weather that dented demand for trips to Hawaii.

The carrier's premium push comes as airlines are finding that catering to travelers willing to spend more for comfort is critical to turning a profit, especially as expenses such as fuel, labor and airport fees climb. Airlines are overhauling their airplane cabins to tap in to growing demand for travel luxuries.

Delta, which also has a Seattle hub, has been pushing back on Alaska's expansion efforts. It has been able to attract customers with its global network and swanky international business class-something Alaska couldn't completely match.

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 including made-to-order meals brought to your seat and showers-similar to lounges Delta, United and American have. A new premium Hawaiian Airlines lounge is also set to open in Honolulu in 2028.

"We've always had first class, we've always had lounges, but we're taking this to a whole new level," Harrison said.

Alaska expects its Aurora suites-the airline's answer to bigger competitors' top tier offerings-to start flying in 2028 on its Boeing 787 Dreamliner fleet. It will also put them on more than two dozen Boeing 737 MAX 10 jets it has on order, which will fly across the country on popular business travel routes.

Alaska's Airbus A330 planes that fly to North America and Asia under the Hawaiian brand are getting entirely new interiors, including new suites with closing doors.

The planes flying longer distances are also getting a dedicated premium economy section called Premium Reserve, with seats and in-flight dining that are a step up from the airline's existing extra legroom offering. That has been "a huge missing piece," Harrison said.

After the updates, premium seating will account for close to half the seats on 787-9 jets-46%, up from 38% now.

Alaska also announced a number of changes to its loyalty program, including a new debit card it plans to launch next year.