Alaska Air Plans to Cut Jobs

Alaska Air(ALK Quote) says it will trim capacity by 8% in the coming months due to high fuel prices, a slowing economy and tough West Coast competition.

The capacity cuts will lead to 15% fewer departures and a work force reduction of 9% to 10%, the carrier said. That means 850 to 1,000 positions, including flight crews, mechanics and agents between November and early 2009. In August, the company shed 80 management positions.

"The one-two punch of record oil prices and a softening economy, on top of increased competition, has burdened Alaska Air Group with a $50 million loss on an adjusted basis for the first half of this year," said CEO Bill Ayer, in a prepared statement.

In July, the carrier reported a $14.1 million second-quarter loss, after special items, and said it would reduce 2009 mainline capacity by 5% to 10%. ...