Alaska Air Group is set to eliminate approximately 200 jobs across its business as the US airline group grapples with rising fuel costs and a deteriorating financial outlook.
The reductions will affect non-contract employees in management and back-office positions across Alaska Airlines, Hawaiian Airlines and Horizon Air.
Frontline employees, including pilots, cabin crew, airport staff and maintenance technicians, will not be affected.
Employees in Washington state and Hawaii account for a significant proportion of the planned reductions, with 125 positions in Washington and 48 in Hawaii. The affected employees are expected to have their final working day on November 13, although the company will continue paying them through the end of December.
The job cuts follows mounting pressure from the cost of operating its expanding business. Alaska Air Group has warned that it could record an annual loss of approximately $700 million if current conditions persist.
Rising Fuel Costs Weigh on Financial Performance
Fuel expenditure has become a considerable challenge for the airline, with the company estimating that it will spend an additional $1.8 billion on fuel this year compared with its original financial plan.
Alaska Air Group reported a net loss of $147 million during the third quarter of 2026, despite revenue increasing by 14% to $4.3 billion. Its financial performance over the first nine months of the year was equally challenging, with the group recording a cumulative loss of $416 million.
The company now expects its adjusted loss per share for the full year to fall between $5 and $5.50. Its fourth-quarter fuel expenditure is also expected to remain elevated, with prices forecast to reach between $4.65 and $4.85 per gallon.
Chief Executive Ben Minicucci told employees that the company needed to exercise greater financial discipline, particularly as overhead expenses had increased disproportionately to revenue in recent years.
Expansion Plans Remain in Place
Alaska Air Group is pursuing an ambitious expansion strategy, following its acquisition of Hawaiian Airlines. The group has been working to strengthen its international presence, particularly through its Seattle hub, with additional long-haul services to destinations in Europe and Asia planned as part of its network development.
Its expansion plans also include investment in premium cabin offerings, airport lounges and the passenger experience, as Alaska seeks to establish a stronger position in the international market. Despite the financial difficulties, Minicucci indicated that investment in the group’s fleet, customer experience and network would continue.
The job cuts represent less than 1% of Alaska Air Group’s approximately 32,500 employees, however, the reductions reflect the financial pressures facing the airline as it attempts to balance expansion ambitions with the rising cost of running operations.
