In an operational update filed on March 16, Alaska Airline stated that in response to the reduced demand due to the fallout of the new coronavirus, COVD-19, it was immediately reducing capacity for April by at least 10% and May by at least 15% from original expectations. The airline says that it intends to monitor demand and continue to reduce capacity on a rolling 15 day basis as needed.
Alaska Air says that the company is pursuing additional borrowing of approximately $500 million and has suspended at least $300 million of its capital spending, largely through the deferral of pre-delivery aircraft payments and certain non-aircraft capital projects.
The airline is also suspending share repurchases, offering employees unpaid leave absences and freezing hiring. Brad Tilden, Chief Executive Officer and Ben Minicucci, President have also reduced their base salaries to zero.
The Alaska Air Group has confirmed that it has unrestricted cash and short-term investments of approximately $1.9bn.