Alaska Airlines to Cut Schedule by 70%

By Paul Riegler on 25 March 2020
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Alaska Airlines announced late Wednesday a schedule reduction  of approximately 70% as a result of dwindling demand thanks to the novel coronavirus pandemic.

The reduction will be in effect for April and May, the airline said, and the June schedule will be based on demand at the time.

“We are ultimately optimistic about the future of our great airline,” said the airline’s CEO, Brad Tilden, adding that “it is clear that we are and will be under severe financial pressure for the foreseeable future and that is why these actions are essential.”

The airline is taking multiple steps to reduce its costs including offering employees voluntary leaves during which they would receive both health insurance and travel benefits.  In addition, employees at the management level are taking pay cuts ranging from 100% for the CEO and the president to 20% for vice presidents and managing directors. Members of the board of directors will not receive compensation through September 30, under the plan, and the airline is suspending its cash dividend and arranging for additional financing.

(Photo: Accura Media Group)

Accura News

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