Alaska Air to cut 200 jobs, warns of potential $700 million annual loss

Alaska Air Group plans to eliminate approximately 200 non-contract positions due to rising fuel prices and geopolitical challenges, according to the company's chief executive. The cost-cutting measures come as Alaska Air grapples with the financial impact of soaring fuel costs, which could result in a potential $700 million annual loss for the company.

Ben Minicucci, Alaska Air's CEO, wrote to employees in a memo, stating that the company could face the first adjusted pretax loss outside the pandemic era since 2003 if current conditions continue. Minicucci emphasized the need to return to the financial discipline that has historically been a key competitive advantage for the airline. He also noted that overhead expenses have grown at a disproportionate rate compared to revenue in recent years.

The job cuts affect less than 1% of Alaska Air's approximately 32,500 employees, with 125 positions in Washington state and 48 in Hawaii being eliminated. No frontline, non-management jobs will be affected. The last working day for the affected employees will be November 13, but they will continue receiving pay through December 31, along with severance and other support.