Faced with rising expenses and declining fares, Alaska
Airlines is planning layoffs in its managerial ranks.
"These will not be easy steps to take, but they are
necessary to reset how management supports our frontline employees in a
competitive environment," spokeswoman Ann Johnson wrote in an email. "Our
first, and top priority, during this process is the respectful and
compassionate treatment of affected people."
Johnson didn't say how many managerial positions would be
cut, but the Seattle Times and the website Airline Geeks have reported the
figure will be approximately 100. The cuts will come from a combination of
layoffs, restructuring and not filling open positions, according to a letter to
employees from Alaska's human resources director Andy Schneider that was
obtained by Airline Geeks.
The move comes as Alaska works through its recent
integration with Virgin America, and as the carrier struggles with rising fuel
costs.
For the first six months of this year, expenses at Alaska
were up 15% while the average fare each passenger paid per mile of flying was
down 2.5%. Net income dropped from $386 million during the first six months of
last year to $197 million for the first half of 2018.