Alaska Air to cut about 200 jobs as fuel shock squeezes earnings

Chief Executive Ben Minicucci seen by Reuters that the company could lose ​as much as $700 million this year if current conditions persist, marking its first adjusted pretax loss outside the pandemic since 2003.

"We must return to the financial discipline that has long been a key competitive advantage," Minicucci said, adding that overhead ​expenses had "grown at a disproportionate rate to revenue" over the past few years. The reductions affect less than ​1% of Alaska's roughly 32,500 employees, a company spokesperson said.

They include 125 positions in Washington state and 48 ‌in Hawaii. No ⁠frontline, non-management jobs are being eliminated. Affected employees will have their last working day on November 13 but will continue receiving pay through December 31, along with severance and other support,.

FUEL COSTS OVERSHADOW REVENUE GAINSUS airfares rose an average of nearly 23% year-on-year in the seven months through ​September, ​data, but Delta Air ⁠Lines (DAL.N), American Airlines (AAL.O), opens new tab and Southwest Airlines (LUV.N), opens new tab have still cut their 2026 earnings forecasts.

Alaska Air last week forecast a full-year adjusted loss of $5 to $5.50 per share, citing $1.8 billion ​in additional fuel costs compared with its original annual plan.