Alaska Airlines announced it will cut 200 back-office positions as the carrier grapples with rising fuel costs and a significant financial downturn. The airline reported a net loss of $416 million over the first nine months of 2026, a period marked by volatile energy prices and broader geopolitical pressures.
Targeted cuts in Washington and Hawaii
The reductions affect only non-contract employees, sparing frontline staff such as pilots, flight attendants, ramp agents, and maintenance technicians, a spokesperson confirmed. The geographic impact is concentrated in two regions: 148 positions in Washington state and 48 in Hawaii.
Alaska Airlines stated in a release that the decision was driven by the need to control costs amid challenging market conditions. The carrier noted that it has spent much of the last year implementing measures to manage expenses as fuel prices remained elevated.
Third-quarter results and fuel outlook
The layoffs follow a third-quarter report showing a net loss of $147 million, despite a 14 percent increase in revenue to $14.3 billion. The airline expects the financial pressure to continue into the final quarter of the year.
Alaska Airlines forecasts it will pay between $4.65 and $4.85 per gallon for jet fuel in the fourth quarter. This high cost is partly due to the airline’s West Coast base, which lacks direct pipelines and relies on imports, leaving it exposed to some of the steepest fuel prices among U.S. carriers.
Looking ahead to the full year, the airline is forecasting an adjusted loss per share of $5 to $5.50 for 2026. These figures reflect the ongoing struggle to balance operational costs with revenue growth in a difficult economic environment.
The cost-cutting measures come as Alaska Airlines pursues an expensive growth strategy centered on its merger with Hawaiian Airlines. The carrier is expanding its network with new routes to Europe and Asia, adding more business class seats, and introducing a new premium economy cabin. These investments require significant capital even as the airline seeks to reduce its workforce in administrative roles.
Source: Skift
