HONOLULU (KHON2) — Alaska Airlines announced that it will reduce its flight schedule for April and May by about 70 percent due to the COVID-19 outbreak.
According to the company, flight schedules for June and beyond will be based on demand but expects that reductions will be substantial for at least the next several months.
“Alaska’s goal, since the onset of this outbreak, has been to keep our employees and guests safe and healthy, and to ensure that our airline is here to support and serve them in the future,” said Alaska CEO Brad Tilden. “But we also know that given the lack of demand for air travel and profound impact on the financial management of our business, hard work and aggressive control of costs and cash are required, even with additional support.”
Some of the actions being taken to reduce spending and improve liquidity are as follows:
- The company announced the suspension of its cash dividend and previously announced the suspension of our share repurchase program.
- Alaska Airlines have drawn down $400 million on our line of credit and closed an additional secured loan for $425 million today.
- The company will be announcing 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.
- Its Board of Directors voted to take their own cash retainers to zero through Sept. 30.
- Alaska Air are actively soliciting employees who are interested in voluntary leaves of absence, under which Alaska would continue to pay both health and travel benefits.
- Alaska Air suspended annual pay increases, plan to reduce hours for management employees, and will release contractors and temporary workers.
- Alaska Air is aggressively managing all spending, including all spending for aircraft, buildings, equipment, leases, services and other areas. It will make all necessary investments in expense items to maintain the safety and integrity of our operation.
- Alaska Airlines are working with all vendor partners to reduce spending in line with its reduced flight schedule.
Learn more about Alaska Airlines response to the COVID-19 outbreak here.