Alaska Air Group to cut 125 jobs in Washington

Alaska Air Group is cutting 125 jobs in Washington as part of a broader elimination of 200 positions.

The layoffs come as the group — which includes Alaska Airlines, Hawaiian Airlines, Horizon Air and McGee Air Services — projects a nearly $700 million annual loss amid high fuel prices and other geopolitical pressures, according to The Seattle Times.

The cuts affect nonunion, back-office roles, not pilots, flight attendants, airport guest services workers or maintenance and engineering employees.

“To remain competitive and emerge from this challenging period stronger, we must continue investing in our fleet, guest experience, capacity and network,” CEO Ben Minicucci wrote in a note to employees obtained by The Seattle Times. “At the same time, we must return to the financial discipline that has long been a key competitive advantage. That means taking a hard look at overhead and ensuring our resources are focused on the priorities that will strengthen our company for the long term.”

Affected employees will have their last working day Nov. 13 and continue receiving pay through Dec. 31. The cuts represent less than 1% of Alaska Air Group’s approximately 32,500 employees.

Fuel costs bring financial pressure to Alaska Air Group

Alaska Air Group lost $416 million in the first nine months of the year, compared with a $79 million profit during the same period last year, The Seattle Times reported.

MyNorthwest previously reported that the company planned to borrow as much as $1 billion as rising fuel costs strained its finances. Alaska also raised baggage fees and reduced flight capacity in May and June.

Despite the financial pressure, Alaska continues pursuing its Alaska Accelerate expansion strategy, which includes new long-haul international routes from Seattle, additional lounges, and lie-flat aircraft suites.

Executives warned in September that high fuel costs could prevent the company from reaching its 2027 financial targets, according to The Seattle Times.

Follow @http://twitter.com/Mynorthwest