SEATTLE– Alaska Airlines (AS) and its parent company, Alaska Air Group, are eliminating approximately 200 management and other non-frontline positions across their network, including 48 positions in Hawaii. The restructuring comes as rising fuel prices and geopolitical uncertainty increase operating costs, with the airline warning that it could face an adjusted pretax loss of as much as $700 million in 2026 if current conditions continue.
The Hawaii reductions affect employees working for Hawaiian Airlines (HA), which became part of Alaska Air Group following its $1.9 billion acquisition in September 2024. Of the 48 affected positions, 40 jobs will be eliminated, while eight employees have been offered alternative roles within the company.
Alaska Cuts 200 Jobs
Alaska Air Group notified affected employees on October 30, 2026, that their positions would be eliminated as part of the companywide restructuring. The reductions include 125 positions in Washington state, where the airline is headquartered, and 48 in Hawaii.
The company employs approximately 32,500 people across its operations, meaning the planned reductions represent less than 1% of its workforce.
No frontline, non-management positions are included in the restructuring, protecting pilots, flight attendants, airport operations personnel and other employees directly involved in running flights.
Affected employees are scheduled to leave their positions on November 13. However, they will continue receiving their salaries through December 31 and will also receive severance payments and transition assistance, according to the company.
Hawaiian Airlines CEO Diana Birkett Rakow separately informed Hawaii-based employees about the changes.
She also confirmed that two senior members of the local leadership team, Jim Landers, head of Hawaii operations, and Shelly Parker, head of Hawaii guest operations, will retire at the end of 2026. Their positions will be eliminated as part of the reorganization.
Fuel Costs Pressure Profits
Alaska Air Group CEO Ben Minicucci told employees that the company was facing significant financial pressure despite progress in its long-term growth strategy.
He identified higher fuel prices, geopolitical challenges and rising overhead expenses as the main factors behind the restructuring.
Minicucci warned that Alaska could lose as much as $700 million in 2026 if the current financial conditions persist. Such a result would represent the company’s first adjusted pretax loss outside the COVID-19 pandemic period since 2003.
The airline’s third-quarter financial results highlight the pressure on its operating performance. Alaska reported an economic fuel cost of $3.94 per gallon, compared with $2.51 during the same period in 2025, representing an increase of approximately 57%.
For the fourth quarter, the company expects fuel costs of between $4.65 and $4.85 per gallon, approximately $650 million above its original forecast.
It also anticipates an additional $1.8 billion in fuel expenses against its initial 2026 plan and has revised its full-year adjusted earnings guidance to a loss of $5 to $5.50 per share.
Hawaiian Integration Continues
Alaska Air Group said the workforce reductions are not directly connected to its acquisition of Hawaiian Holdings, completed in September 2024.
Instead, management intends to address administrative costs that have increased faster than revenue over recent years.
The restructuring will allow the company to redirect resources towards its longer-term priorities while maintaining its investments in aircraft, customer experience and network expansion.
The combined airline group continues to pursue a strategy focused on international destinations, premium travel and stronger loyalty programmes.
Despite the financial challenges, Hawaiian Airlines remains confident in the combined company’s long-term direction.
Birkett Rakow acknowledged the impact of the job cuts on employees but said the changes were necessary to help the business remain financially sustainable and continue serving Hawaii, Star Advertiser reported.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
