Alaska Airlines Cuts 200 Jobs Amid $700M Loss Forecast
Alaska Airlines is facing one of its most turbulent financial periods in recent history. The carrier plans to eliminate approximately 200 non-contract, back-office positions as it contends with soaring fuel costs and mounting operating losses.
The Seattle-based airline reported a $416 million net loss over the first nine months of 2026, including a $147 million loss in the third quarter—its third consecutive quarterly loss. The results came despite a 14% increase in revenue to $4.3 billion.
CEO Ben Minicucci warned investors that full-year losses could reach $700 million if fuel prices and geopolitical pressures persist. Alaska expects fourth-quarter jet fuel costs to reach $4.65 to $4.85 per gallon, with West Coast prices even higher because of limited pipeline access.
The job cuts affect back-office and management roles, while frontline employees—including pilots, flight attendants, and ramp agents—are not affected.
- Washington state: 125 positions
- Hawaii: 46 positions
- Share of workforce: Less than 1% of Alaska Air Group’s 32,500 employees
Affected employees will be paid through December 31, 2026, and will receive severance and transition support.
Meanwhile, Alaska Airlines continues to expand its routes and invest in premium cabin upgrades—a stark contrast to the financial pressures driving the cuts.
Source: Skift — Alaska Airlines to Lay Off 200 Employees as It Forecasts a Loss in 2026