Alaska Air Group is cutting approximately 200 jobs as CEO Ben Minicucci warned employees the company could face a $700 million loss this year if current conditions persist. The cuts affect non-contract positions, including 125 in Washington and 48 in Hawaii. No frontline, non-management roles are being eliminated. Affected workers will finish on November 13 but receive pay through December 31, along with severance and support.
The reductions represent less than 1% of the group's roughly 32,500 employees. The job cuts come as Alaska Air Group, which operates Alaska Airlines and Hawaiian Airlines, battles soaring fuel costs. In October, the company forecasted a full-year adjusted loss of $5.00 to $5.50 per share and disclosed fuel would cost $1.8 billion more than originally planned.
Third-quarter revenue grew 14% to $4.3 billion, yet that growth has not offset cost pressures. In his employee memo, Minicucci acknowledged that overhead expenses had "grown at a disproportionate rate to revenue." He stated the company must "return to the financial discipline that has long been a key competitive advantage."
The cuts come as Alaska pursues international expansion, including new routes to Athens and Paris. The airline plans to continue investing in fleet, customer experience, and network while tightening spending elsewhere.