Alaska Airlines adopts historic 70 percent cut to flight schedule, slashes dividends
Alaska Airlines said Wednesday it plans to reduce its flight schedule for April and May by approximately 70 percent and suspend its shareholder dividend to preserve cash following what it called "a historic and unprecedented falloff in demand related to the COVID-19 outbreak."
Alaska CEO Brad Tilden announced the moves – the third round of cuts in as many weeks – adding that the SeaTac-based airline has drawn down its existing $400 million line of credit and closed a secured loan for $425 million more Wednesday.
"These actions are unprecedented, but these are truly unprecedented times," Tilden said in a statement. "Alaska has been here for 88 years to serve our customers and communities and to provide good jobs for our people. It is imperative that we act swiftly and courageously to ensure that we’re here to continue our mission in the future."
Tilden said Alaska has also cut pay for its senior managers from 20 percent to 100 percent, as he has done for himself.
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