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Alaska Airlines is set to lay off approximately 200 non-union employees due to rising fuel costs and a challenging operating environment. The layoffs, which will affect back-office and management roles, are scheduled to take place by Friday, November 13. The airline has reported a $147 million loss in the third quarter, marking its third consecutive quarterly loss, despite a 14% increase in revenue to $4.3 billion.
According to Skift, the layoffs will impact 148 employees in Washington state and 48 in Hawaii. The airline's decision is driven by volatile fuel prices and broader geopolitical pressures, which have led to an expected $1.8 billion increase in fuel expenses this year. Alaska Airlines has spent much of the past year attempting to control costs.
The airline's chief executive, Ben Minicucci, warned that the full-year loss could reach $700 million if current conditions persist. He stated, "Despite having the right strategy and strong momentum, fuel prices and geopolitical challenges are putting significant financial pressure on our business," as reported by The Aviation Hub.
Frontline operations, including pilots, flight attendants, ramp agents, and maintenance technicians, will not be affected by these cuts. Alaska Airlines is also pursuing an expensive growth plan, including a merger with Hawaiian Airlines and new routes to Europe and Asia.