Alaska Airlines to Lay Off 200 Employees Amid High Fuel Costs

Image: Alaska Airlines Boeing 737. (Photo Credit: franz massard/Adobe)
Image: Alaska Airlines Boeing 737. (Photo Credit: franz massard/Adobe)
Jessica Puckett
by Jessica Puckett
Last updated: 5:25 PM ET, Thu November 5, 2026

One of the largest airlines in the United States is preparing to lay off hundreds of employees as it grapples with an ongoing surge in fuel costs.

Seattle-based Alaska Airlines said earlier this week that it plans to lay off 200 employees due to a “challenging operational environment,” according to local news outlet KING 5. 

The layoffs come amid “volatile fuel costs and broader geopolitical pressure," the airline told KING 5 in a statement. 

U.S. airlines have spent much of 2026 trying to mitigate significantly higher fuel costs amid the war in Iran. 

The jump in jet fuel prices has caused carriers to reduce their earnings guidance for the year. 

Alaska Airlines, for one, reported a loss of $147 million in the third quarter of 2026. The carrier said on its earnings call it expects to spend an extra $1.8 billion on fuel for the year. 

The layoffs are planned to take effect on November 13.

"While we have spent much of the year controlling costs, we have made the difficult decision to reduce our non-contract workforce by approximately 200 roles," Alaska’s statement said, according to KING 5

"We recognize the impact these decisions have on our employees and their families, and we are deeply grateful for the contributions they have made to get Alaska Air Group to where we are today.”


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Jessica Puckett

Jessica Puckett

Jessica Puckett is an Emmy Award-winning journalist who covers transportation and travel news. She has reported for ABC News, The Points Guy, Condé Nast Traveler, and several other publications.

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