Alaska Air Group Cuts 200 Back-Office Jobs

Alaska Air Group announced on Friday that it will eliminate 200 non-union positions within its back-office departments. The company stated that the workforce reductions are necessary to address a projected loss of nearly $700 million for the current year, driven primarily by elevated jet fuel prices and geopolitical pressures.

The cuts affect less than 1 percent of the company's 32,500 employees. Of the 200 positions being removed, 125 are located in Washington state, while 48 are based in Honolulu, the headquarters for Hawaiian Airlines. The layoffs are limited to administrative roles and will not impact pilots, flight attendants, airport guest services, or maintenance and engineering staff.

CEO Ben Minicucci addressed the staff in a written note on Friday, explaining that the company must balance investment in its fleet and network with financial discipline. Minicucci noted that the projected loss represents the company's first adjusted pretax loss since 2003, excluding the pandemic period. He emphasized the need to focus resources on long-term priorities to emerge from the challenging period stronger.

The financial strain is evident in recent quarterly results. In October, the company reported a $416 million loss for the first nine months of the year, a sharp reversal from the $79 million profit recorded during the same period the previous year. Alaska Air Group attributed the decline to fuel expenses that exceeded initial guidance by $1.8 billion.

Based on these figures, the company projects a loss between $5 and $5.50 per share for the full year. Executives previously warned during a September investor day that high fuel prices could cause the airline to miss its 2027 long-term financial targets of $1 billion in incremental profit and $10 in earnings per share, despite progress on its Alaska Accelerate expansion plan.

The Alaska Accelerate initiative, launched in 2024 following the acquisition of Hawaiian Airlines, included the addition of nonstop international routes from the Seattle hub, a new loyalty program, and premium in-flight amenities. Despite these strategic additions, the cost of jet fuel has remained a primary driver of the company's reduced profitability.

Affected employees will work their final day on November 13 and will continue to receive pay through December 31. Alaska Air Group stock declined by 1.2 percent on Friday following the announcement.