Alaska Airlines to Slash Capacity by 70% for April and May
Alaska Airlines says it will cut its number of flights dramatically for April and May while the coronavirus COVID-19 continues to spread. The airline said it will have a 70% reduction in its schedule throughout its network. Alaska said in a statement that it has seen bookings drop more than 80%, and said flight reductions will be “substantial” for at least the next several months.
Alaska Airlines had previously announced a 10% reduction earlier this month. Now the projected cuts will reduce Alaska Airlines’ daily flights to about 400, from 1,300 daily flights it usually operates.
Flights to Hawaii and Alaska will have an even greater reduction of service, the company said in a release. The airline plans to eliminate nearly all “red-eye” overnight flights as well as routes with the lowest passenger demand.
Some of the other actions being taken to reduce spending and improve liquidity are as follows:
- Suspension of cash dividend and suspension of share repurchase program.
- Officer pay reductions through Sept. 30 as follows:
- 100% pay reduction for both the CEO and President of Alaska Airlines;
- 50% for the President of Horizon Air;
- 30% for EVPs and SVPs; and
- 20% for VPs and MDs.
- Board of Directors have voted to take their own cash retainers to zero through Sept. 30.
- Suspended annual pay increases, plan to reduce hours for management employees, and will release contractors and temporary workers.