Alaska Air Group expects to eliminate as many as 200 management and back-office positions before the end of 2026 because of rising fuel prices and corporate expenses, according to Simple Flying.
Airport workers, mechanics, flight attendants, and pilots would not be affected.
Here's what to know
Reductions target non-union corporate positions and would affect under 1% of all employees in the group.
The proposal includes 46 positions based in Hawai'i.
Growth in flight capacity has not kept pace with corporate overhead, Alaska Air Group CEO Ben Minicucci told employees in a company-wide memo cited by Simple Flying.
Alaska Air Group's 2026 corporate strategy assumed fuel would cost $2.50 per gallon.
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Its fourth-quarter estimate, however, was $4.65-4.85 a gallon, Investing.com reported.
Fuel premiums were more than $1.8 billion above expectations, adding substantial financial pressure alongside the overhead growth Minicucci identified.
Conflicts in the Middle East, including the war in Iran, were key drivers of the surge in fuel costs.
What's being done?
The corporate restructuring is intended to restore what Minicucci described in his memo as "financial discipline," per Simple Flying.
The company cited higher fuel expenses and elevated corporate overhead as reasons for the restructuring. It emphasized that its 2024 merger with Hawaiian Airlines was not driving the cuts, according to Hawai'i News Now.
Aircraft previously ordered by Hawaiian Airlines have enabled Alaska's international expansion. The airline continues to grow its long-haul network, including routes to Europe and Asia.
Of the 46 positions identified there, only eight come with offers of other positions at the airline.
That leaves affected employees in Hawai'i with limited opportunities to stay with the company.
Where can I learn more?
Other companies are also cutting corporate jobs, and rising fuel costs are squeezing airlines.
• Disney offered voluntary early retirement to longtime executives as its cost-cutting efforts continued.
• Washington journalists warned McClatchy's 90 layoffs would leave "gaping holes" in local news coverage.
• American, United, and Southwest cut flights as fuel costs surged and threatened airline profits.
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