Alaska Air Group plans to eliminate about 200 non-contract positions as higher fuel costs put pressure on its finances. November 13 will be the affected employees’ last working day, Reuters reported, citing a staff memo and company comments.
The reductions represent less than 1% of the group’s approximately 32,500 employees. No frontline, non-management jobs are being eliminated. Affected staff will continue receiving pay through December 31, alongside severance and other transition support, according to the memo.
Chief executive Ben Minicucci warned that the company could lose as much as $700 million in 2026 if current conditions persist. He described that potential outcome as an adjusted pretax loss. The figure is a conditional full-year warning, rather than a completed annual result.
Alaska’s October 20 quarterly results reported a $147 million GAAP net loss for July–September, despite revenue rising 14% to $4.3 billion. The group also projected $1.8 billion in additional fuel expense for 2026 compared with its original plan, illustrating the pressure behind the overhead cuts.
Minicucci said investment in the fleet, customer experience and network would continue while spending was tightened. We recently covered Hawaiian’s Seattle expansion, with Osaka and Papeete services planned for 2027, subject to government approval. Those route plans are separate from the staffing reduction.
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