Facing mounting operating losses, Alaska Airlines has announced plans to lay off more than 200 employees even as it expands routes and invests heavily in its premium offerings.
In a filing with the federal government, the Seattle-based airline said it plans to lay off hundreds of back-office workers by the end of the year. Layoffs will affect workers in the state of Washington and Hawaii, according to media reports.
The company cited a “challenging operating environment” in announcing the staffing cuts. Alaska Airlines released a third-quarter earnings report showing a $147-million operating loss, which the airline largely attributes to soaring jet-fuel costs. Losses for the year could total more than $700 million, airline CEO Ben Minicucci reportedly told investors—a sharp contrast from the $79 million in profits Alaska Airlines made last year.
The layoffs, while significant, represent only a fraction of the airline’s roughly 32,500-member workforce. It’s also just the latest in a series of staffing cutbacks that have occurred since Alaska Airlines and Hawaiian Airlines merged in 2024.
The announcement comes even as the airline’s revenues have increased. In its quarterly filing, Alaska Airlines reported operating revenues of $4.308 billion, up 14 percent from 2025, but said its fuel costs had risen 60 percent during the same time period.
Despite Cuts, Alaska Airlines Continues to Expand
Separately, Alaska Airlines announced on Nov. 2 that it will inaugurate new service from its Seattle-Tacoma International Airport hub to Guadalajara International Airport in Mexico. The six-hour nonstop flights will begin March 18, 2027, and are expected to operate year-round.
The airline also recently announced new flights between Ted Stevens Anchorage International Airport and Tokyo Narita International Airport, along with new nonstop service between Anchorage and Nashville, Austin and Dallas. The Tokyo flights will begin in May 2027, while the Nashville and Texas routes are scheduled to launch in June 2027.
Beyond its route expansion, Alaska Airlines and Hawaiian Airlines are continuing to invest in their premium offerings, with plans to introduce upgraded aircraft interiors, lie-flat business-class suites and a new premium economy cabin beginning in 2028.
The premium investments will extend to the airlines’ airport lounges. Alaska plans to open a nearly 41,000-square-foot lounge complex at Seattle-Tacoma International Airport’s C Concourse in late 2027. Hawaiian also plans to open a nearly 13,000-square-foot lounge in Honolulu International Airport‘s Terminal 1 in early 2028.
