Alaska Air Group is cutting about 200 non-contract jobs, becoming the latest US airline to feel the strain of jet fuel prices running far above what it budgeted.
The group, which owns Alaska Airlines and Hawaiian Airlines, is heading for a loss this year despite growing revenue, according to its own results.
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The Job Cuts
Reuters, which saw an internal memo, reported that the cuts amount to less than 1% of Alaska's workforce and spare frontline, non-management roles. It put the affected positions at 125 in Washington state and 48 in Hawaii.
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Staff finish work on November 13 but stay on the payroll until December 31 with severance. Chief Executive Ben Minicucci told employees that overheads had grown faster than revenue, the news agency reported.
A Fuel Problem, Not A Demand Problem
Alaska's third-quarter numbers show how fuel is eating into growth. Revenue rose 14% year on year to $4.3 billion, with premium revenue up about 25% and managed corporate revenue up 30%.
Even so, the group reported a GAAP net loss of $147 million, and an adjusted net loss of $35 million.
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The gap is fuel. Alaska had expected to pay $3.75 per gallon in the quarter but paid $3.94, and fuel prices have surged since the US war with Iran disrupted crude shipments.
The group expects $4.65 to $4.85 per gallon in the fourth quarter and a full-year adjusted loss of $5.00 to $5.50 per share, including $1.8 billion of fuel spending above plan.
Reuters said the memo warned of a pretax loss of as much as $700 million, which would be the first such loss outside the pandemic since 2003.
Growth Plans Continue
The cuts come as Alaska digests its Hawaiian Airlines acquisition and pushes into premium and international flying. The two airlines unified their booking and app systems in April, which allows the group to sell trips across the combined network.
This month the group announced direct flights from Seattle to Osaka and Tahiti.
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Reuters reported that Minicucci said Alaska would keep investing in its fleet, customer experience and network while tightening spending.
Industry Under Pressure
Alaska is not alone. Delta, American and Southwest have all cut their 2026 earnings forecasts, even as US fares rose by an average of nearly 23% over the seven months to September.
The cuts at Alaska suggest that higher fuel costs, which have already led US airlines to raise fares and slow flight growth, are now reaching jobs.
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