Alaska Airlines cutting 48 Hawaii jobs, citing higher fuel costs

Alaska Air Group said today it will eliminate 48 Hawaii positions as part of a companywide reduction of about 200 management jobs.

The move comes just over a week after executives warned investors that surging fuel costs and geopolitical challenges were weighing heavily on the carrier’s financial performance.

Affected employees received 60-day Worker Adjustment and Retraining Notification notices today. While the layoffs take effect Nov. 13, impacted employees will continue to receive pay through Dec. 31, and will receive severance and transition support, the company said.

The airline has 32,500 employees throughout its entire network, and 125 employees were also laid off in Washington state, where Alaska is headquartered.

In an email sent to employees this morning, Alaska Air Group President and CEO Ben Minicucci said the company is facing mounting financial pressure despite progress on its long-term growth strategy.

“Despite having the right strategy and strong momentum, fuel prices and geopolitical challenges are putting significant financial pressure on our business,” Minicucci wrote. “If current conditions persist, we could lose as much as $700 million this year, which would be our first adjusted pretax loss outside of the pandemic since 2003.”

The cuts are not tied to the company’s $1.9 billion acquisition of Hawaiian Holdings in September 2024, executives said.

Instead, Alaska cited soaring fuel costs, rising overhead and a broader opportunity to streamline management and realign the organization nearly two years after the Alaska-Hawaiian combination.

“That means taking a hard look at overhead, which has grown at a disproportionate rate to revenue over the last few years, and ensuring our resources are focused on the priorities that will strengthen our company for the long term,” Minicucci wrote.

Hawaiian Airlines CEO Diana Birkett Rakow said in an email to employees this morning that of the 48 Hawaii positions affected, 40 jobs are being eliminated and eight employees are being offered other roles within the company.

Birkett Rakow also announced the departure of two members of Hawaii’s senior leadership team as part of the reorganization. She said that Jim Landers, head of Hawaii operations, and Shelly Parker, head of Hawaii guest operations, decided to retire at the end of the year, and their positions will be eliminated as part of the restructuring.

Birkett Rakow acknowledged the emotional toll of the layoffs in a message to employees, saying the decision carried “great weight” because it affects colleagues who have made meaningful contributions to the company.

“At the same time, we must be clear-eyed about challenges and thoughtful stewards of our company, so we can be here – serving our communities, flying for Hawaii and beyond – for a long time to come,” she said.

Minicucci told employees that no front-line, non-management positions are affected.

Birkett Rakow said the combined carrier remains confident in its long-term strategy and is “much stronger and better equipped to face financial headwinds” as a merged airline, but that a combination of sharply higher fuel prices and overhead costs required the company to adjust its approach.