Business & Finance

Alaska Air Group to Cut 200 Jobs Amid Rising Fuel Costs and Iran‑Related Tensions

By Priyanka Jaiswal

Alaska Air Group announced it will eliminate about 200 non‑contract positions as soaring fuel prices and geopolitical tensions linked to the Iran war strain its finances. The airline warned that it could record an adjusted pretax loss of up to $700 million in 2026 if current conditions continue, marking its first adjusted pretax loss outside the Covid‑19 pandemic since 2003, Reuters reported. Chief Executive Ben Minicucci said the company must return to the financial discipline that has long been a key competitive advantage, noting that overhead expenses had grown at a disproportionate rate to revenue in recent years.

The job cuts will affect less than 1 % of Alaska Air’s roughly 32,500 employees, including 125 positions in Washington state and 48 in Hawaii. No frontline or non‑management jobs will be eliminated. Affected employees will have November 13 as their last working day but will continue to receive pay through December 31, along with severance and other support, according to the memo.

Alaska Air’s expansion plans face financial pressure. The Seattle‑based airline is pursuing an ambitious expansion into premium and international travel following its acquisition of Hawaiian Airlines. Its strategy includes investments in premium cabins, loyalty programmes and new international routes, with plans to expand its long‑haul network from Seattle. Minicucci said the company would continue investing in its fleet, customer experience and network despite tightening spending elsewhere.