Alaska Air Cuts 200 Jobs as Fuel Costs Push It Toward $700 Million Loss

Alaska Air Group is laying off about 200 back-office employees as soaring jet fuel prices push the parent of Alaska Airlines and Hawaiian Airlines toward a loss of as much as $700 million this year.

The cuts include 125 positions in Washington state, where the company is headquartered, The Seattle Times reported. All of the eliminated jobs are non-union, and pilots, flight attendants, airport guest services and maintenance workers are not affected.

Another 48 positions are in Hawaii, the Honolulu Star-Advertiser reported. Of those, 40 jobs are being eliminated and eight employees are being offered other roles within the company.

“Despite having the right strategy and strong momentum, fuel prices and geopolitical challenges are putting significant financial pressure on our business,” CEO Ben Minicucci wrote in an email to employees Friday.

“If current conditions persist, we could lose as much as $700 million this year, which would be our first adjusted pretax loss outside of the pandemic since 2003,” Minicucci wrote.

Affected workers received 60-day Worker Adjustment and Retraining Notification notices on Friday. Their last day is Nov. 13, but they will be paid through Dec. 31 and receive severance and transition support, the company said.

The reductions affect less than 1% of Alaska Air Group’s 32,500 employees. Executives said the cuts are not tied to the company’s $1.9 billion acquisition of Hawaiian Holdings, completed in September 2024.

Instead, Minicucci pointed to overhead costs, saying the company must take “a hard look at overhead, which has grown at a disproportionate rate to revenue over the last few years.”

Fuel Bill Runs $1.8 Billion Over Plan

The layoffs come 10 days after Alaska Air Group reported a third-quarter net loss of $147 million, or $1.32 a share, even as revenue rose 14% from a year earlier to $4.3 billion.

The company said it now expects an adjusted full-year loss of $5 to $5.50 a share, including $1.8 billion in fuel expenses above its original plan. Its guidance assumes fourth-quarter fuel costs of $4.65 to $4.85 a gallon, $650 million more than planned.

Alaska Air Group lost $416 million in the first nine months of the year, compared with a $79 million profit a year earlier, according to The Seattle Times. Executives warned in September that the airline could miss its 2027 profit targets, largely because of fuel.

Oil prices remain elevated amid the war with Iran. U.S. crude futures climbed 2.4% on Friday to more than $104 a barrel, Investopedia reported.

Hawaiian Airlines CEO Diana Birkett Rakow told employees the decision carried “great weight” because it affects colleagues who have made meaningful contributions. She said two Hawaii senior leaders, Jim Landers and Shelly Parker, will retire at year’s end and their positions will be eliminated.

“At the same time, we must be clear-eyed about challenges and thoughtful stewards of our company,” Birkett Rakow said, adding that the combined carrier is better equipped to face financial headwinds as a merged airline.

Content created by Conservative Daily News and some content syndicated through CDN is available for re-publication without charge under the Creative Commons license. Visit our syndication page for details and requirements.