The Alaska Steamship Company was formed on 3 August 1894. Originally carrying passengers and fishing products, the Alaska Steamship Company began transporting mining equipment, dog sleds, and cattle at the outbreak of the Klondike Gold Rush of 1897. It merged with the Northwestern Steamship Company in 1909, but retained its name. In the post-1945 era the company struggled to compete with the new Alaska Highway for passengers and freight.

Also after the Second World War, when the freight business slowed, the company decided to focus on tourism and introduced their own older ship S.S. Alaska to the new tourist fleet in January 1946. It was later joined by the Aleutian, Baranof, Yukon, and Denali. The ships called at Ketchikan (two days journey), Juneau (three days journey) and Seward (five days journey). Intermediate ports of call included Wrangell, Petersburg, Skagway, Sitka, Cordova, Valdez, Kodiak and Seldovia. All the steamers could accommodate over 200 passengers in classes ranging from steerage to a deluxe cabin with private bath.