Alaska Air on Tuesday unveiled a plan to generate $1 billion in additional profits by 2027 by leveraging its acquisition of Hawaiian Airlines and booming demand for premium travel, sparking a rally in its shares.

After its acquisition of Hawaiian Airlines, Alaska aims to "transform our business and solidify our competitive advantage for years to come,” its CEO says.

For the better part of the past century, Alaska Airlines has focused on ferrying travelers across a relatively narrow slice of the US. It’s now thinking much bigger.