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Alaska Airlines CFO says IT system OK, even after repeated failures

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Alaska Airlines CFO says IT system OK, even after repeated failures


Jonette Gregory network operations director for Alaska Airlines, in the company’s SeaTac Network Operations Center, Nov. 24, 2025. (Dean Rutz/The Seattle Times/TNS)

SEATTLE — After two crippling IT outages this year, Alaska Airlines now says it is confident travelers won’t have to worry about tech problems interrupting their plans in the future.

While Alaska has some room to improve its tech systems, it does not have a “systemic” IT failure, Chief Financial Officer Shane Tackett said, citing a third-party review Alaska commissioned to study its IT infrastructure.

Alaska hired the consulting firm Accenture to look for ways to strengthen its system after an IT outage grounded its fleet for eight hours in October. That outage followed another hardware failure that grounded Alaska’s fleet for three hours in July.

The disruptions come amid a big year for Alaska, as it integrates Hawaiian Airlines after acquiring the company in 2024. This time last year, Alaska unveiled its long-term plan to capitalize on its acquisition and its newly inherited fleet of widebody planes, unveiling new Pacific routes and a goal to turn its Seattle hub into a global gateway.

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Alaska said in a recent statement it is already seeing “meaningful progress” from its effort to integrate the two airlines. Company executives have said the IT outages are not related to its merger with Hawaiian.

Alaska did not share details on the scope of Accenture’s assessment, or what actions the company would take once the review was complete. Alaska has not released the initial results of that review but said in a statement it had “begun to implement recommendations.”

[How Alaska Airlines responds to wild weather, IT troubles and travel chaos]

Speaking at a Goldman Sachs conference Thursday, Tackett said Accenture found there are some actions Alaska can take, what he called “hygiene.” The airline can improve resiliency and redundancy, and increase daily checks of its systems. But the review did not find a large, systemic failure.

“We were open-minded to ‘Are we missing something on the architecture side of it? Have we just underresourced ourselves?’” Tackett said. “That’s not what they found. A lot of the things that we’re hearing that we should be doing are pretty quick-win types of things.

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“We fully expect to be stable and resilient. … People can have confidence that we’re not going to have infrastructure, data center-related interruptions in our operations at all, Tackett continued.

It was one of the first times Alaska executives have spoken publicly about the company’s finances and operations since the IT outage in October.

Alaska’s system went down on the same day it reported its third-quarter financial results, and the company canceled a scheduled earnings call the following day.

In that time period, Alaska also had to navigate a 43-day government shutdown and a resulting order from the Federal Aviation Administration for major carriers to reduce flights.

In a financial filing Wednesday, Alaska Air Group, which owns Horizon Air and Hawaiian Airlines as well as its namesake carrier, said it would take a financial hit from the turbulent start to its fourth quarter, three months that include the recent IT outage, the government shutdown and a fire at a California refinery that is a major source of jet fuel for West Coast carriers. The airline lowered its expected earnings from 40 cents to 10 cents.

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The government shutdown and resulting flight cancellations cost the airline about $30 million, Alaska said in its Wednesday statement. The October IT outage, as well as a Microsoft Azure cloud outage that impacted Alaska’s systems that same month, cost the airline $50 million.

But the airline is getting back on track, Tackett told analysts at the Goldman Sachs conference.

[Alaska Airlines to open new pilot base in San Diego and plans to hire hundreds]

West Coast jet fuel prices are back in line with other markets, Tackett said. Bookings and revenue have not fully returned to preshutdown levels, but they are still “better than 95% of the days we’ve observed this year,” he said.

“I don’t think the impacts are likely to linger into next year,” Tackett added.

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Analysts from JP Morgan agreed that the events of the last few months wouldn’t impact the airline’s performance next year, except for the constant threat of volatile fuel prices. But in a note to investors summing up their reaction to Alaska’s recent financial disclosures, the analysts wrote, “a miss is a miss.”

A bumpy few months

A few weeks into the government shutdown, the FAA ordered major carriers to reduce operations at 40 airports across the country, an effort to ease the strain on air traffic controllers who had spent weeks working without pay and were starting to miss shifts in high volumes.

Alaska Air Group canceled about 600 flights during that period, impacting 40,000 travelers, the airline said in the Wednesday financial filing. Revenue has “not fully recovered to pre-shutdown trends,” the filing read.

Tackett clarified Thursday at the conference that the airline was more bullish than its filing may have led analysts to believe.

Before the mandated flight reductions, Alaska had been recovering from a drop-off in domestic bookings earlier this year, Tackett said. Bookings had “started to creep their way back up” to match the level of demand Alaska saw at the end of 2024 and into 2025.

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“Then, like everybody else, bookings hollowed out,” he said.

Once the government reopened and the FAA reversed course on its directive, bookings bounced back quickly.

Delta Air Lines — the second-largest carrier at Seattle-Tacoma International Airport, after Alaska — said Wednesday it lost $200 million from the government shutdown, contributing to a quarterly loss of 25 cents in earnings per share.

Savanthi Syth, an airline analyst with financial services company Raymond James, estimated immediately after Alaska’s IT outage that it would trim about 15 cents from Alaska’s earnings per share, or about $26 million from its pretax income for the fourth quarter.

Alaska’s estimate Wednesday calculated a higher impact, estimating a loss of 25 cents in earnings per share. The government shutdown and higher fuel prices each trimmed 15 cents in earnings per share, Alaska said.

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[Airline that planned to fly Alaskans to Asia shuts down]

The IT failures were not related to Alaska’s recent acquisition of Hawaiian Airlines and resulting changes to integrate the two airlines’ systems, Tackett emphasized.

But he did acknowledge that Alaska’s IT teams are “spread, maybe, a tiny bit thin,” as they work on integrating the platforms and other changes Alaska has introduced this year, including a joint loyalty program and a new premium credit card.

On the refinery front, Tackett said the airline is paying less for fuel today than it was before the fire, even though the refinery is not yet back online.

Still, he acknowledged the industry needed a long-term solution to make fuel prices “less volatile” on the West Coast. That could mean bringing more oil on ships from Asia directly to Seattle or Portland, which, in turn, would require local political buy-in.

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“It’s not a novel idea,” Tackett said. “We just have to execute it up in Seattle.”

The fate of Hawaiian’s A321s

At the Goldman Sachs conference, Tackett also shed light on Alaska’s thinking about its aircraft fleet, which now includes a mix of planes from Boeing and its European competitor Airbus.

The last time Alaska had a mixed fleet — when it acquired Virgin America in 2016 — it shed the inherited Airbus planes because it was cheaper and more efficient to operate aircraft from just one manufacturer.

Tackett said the airline has that same thinking today about its narrowbody fleet, which includes Boeing’s 737 MAX and Hawaiian’s fleet of 17 in-service Airbus A321s. But Alaska hasn’t yet decided what it will do.

“There really isn’t a reason in our mind to have two pieces of equipment that do the same thing; if you can get one, it has much better economics,” Tackett said. “The number of A321s we have is too few — you need double that number or zero.”

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On the widebody front, Alaska plans to keep operating both manufacturers “as far as we can see into the future,” Tackett said.

Alaska doesn’t have the same cost concerns as it would with its narrowbodies because it will operate the widebody A330s out of Hawaiian’s Honolulu headquarters, where the airline already has the right equipment for service and maintenance, and pilots and flight crews are already trained on operating that model.

Alaska is “extending leases and buying out of leases” for the A330, Tackett continued, and has the option to buy five more Boeing 787 widebody planes.

With Hawaiian’s Airbus fleet now in its fold, Alaska also has to deal with any Airbus challenges. On Thursday, Tackett acknowledged that the airline may “have to go down a couple lines of flying” due to an issue with the Pratt and Whitney engine on the A321.

Hawaiian’s operations were not affected by a recent software issue on Airbus’ A320 family, the airline said last week.

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Alaska

Opinion: No one wants debt, and Alaska students are proving it

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Opinion: No one wants debt, and Alaska students are proving it


The University of Alaska Anchorage. (Bill Roth / ADN)

No one wants debt. This was the top finding of students and parents recently surveyed by the Education Trust of Alaska.

The Trust commissioned focus groups and a survey of current University of Alaska students and parents of University of Alaska students and eighth graders to gain a better understanding of existing awareness about the Alaska Performance Scholarship, Alaska 529 and University of Alaska scholarships; their college planning strategies; and motivations for attending the University of Alaska. Respondents in each group were clear: No one wants debt. They also shared that planning is overwhelming when the future seems so uncertain. Those who chose the University of Alaska were satisfied with their decision. Here’s a further, more detailed analysis:

Confusion and uncertainty can lead to decision paralysis: Investing in a 529 plan early can help alleviate future debt. However, awareness about how funds can be used, uncertainty about their child’s interest in future education after high school and the inability to save enough are barriers to planning or saving in advance. Many parent respondents said they avoid investing because they don’t think it will yield enough to cover the costs of education and training. Parents are worried about the portability of 529 accounts if their child attends an out-of-state school, doesn’t go to college or pursues a trade.

The truth about modern 529 plans: 529 accounts have become increasingly flexible; now, qualifying expenses include trades, apprenticeships, vocational training, college, professional credentialing and more. Every dollar saved is $2 they won’t have to pay back later, including interest, so any amount saved can help reduce future debt. 529s can be used at most colleges and universities nationally. Any earnings grow federal tax-free and as long as the funds are used for the qualifying expenses, they remain tax-free. If the account has unused funds, a solution is available thanks to recently enacted legislation that allows for rollovers into Roth IRA accounts. Most families don’t save for the full cost of attendance in- or out-of-state. Participants in Alaska’s state-sponsored Alaska 529 education savings plan have an average account balance of just over $17,000. Investing in a 529 plan early can help alleviate future debt, but it is not a standalone option for financing education.

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Current University of Alaska students expressed satisfaction with their decision to attend UA: Students who chose to attend a school in the University of Alaska system were primarily responsible for covering the costs of their college education and debt avoidance was a major factor. The UA students were blown away by the diverse academic opportunities available to them in-state. Some respondents had applied to and were accepted to schools Outside. When they compared the costs of attending an out-of-state school with the options available in-state, it became clear that the financially prudent and responsible choice for them was to attend an in-state school. Students attending UA found that it was not only affordable but also that they had additional money on the table through the Alaska Performance Scholarship because they had taken eligible classes in high school, met the minimum GPA requirement and completed the FAFSA. Survey respondents indicated that they didn’t realize there were so many scholarship options in Alaska. They wished they had paid attention to information about Alaska scholarships earlier in high school. The real financial pie has many pieces. At UA, that might include a 529 plan, federal aid, the Alaska Performance Scholarship, the UA Scholars Award and other scholarships available to students from all academic and economic backgrounds.

Parents face pressures, information gaps and conflicting emotions in their efforts to support their students: In the survey, parents of eighth graders and current UA students said they want to help their child succeed, want to avoid debt but expect the student to pay their own way for education and training after high school. Parents of current UA students felt a strong sense of pride in Alaska and hoped that their child would live and work in Alaska after college. During the college search process, they felt some peer pressure to send their child out of state but felt satisfied with their child’s decision to attend an in-state school. They wished they had learned earlier, in eighth grade, about Alaska-based scholarships so they could have helped coach their child on high school course selection. When they were shown the Alaska Performance Scholarship planning worksheet available at acpe.alaska.gov, most didn’t recall seeing it before but thought it was the perfect planning tool.

Parents of eighth graders found the prospect of college planning, including the courses required to attain the Alaska Performance Scholarship and the requirements of the UA Scholars Award, to be overwhelming. They did not feel ready to learn about these scholarship programs or college planning. Parents were primarily focused on helping their middle schooler navigate the early teenage years, feel connected to activities and manage the stressors of middle school. They also expressed uncertainty about traditional college pathways, leaning more toward vocational training and trades.

The bottom line: Planning is key; however, it can be overwhelming, leading to decision paralysis. Seeking information and support starting in junior high and throughout high school is key to setting a student up for future success. Avoiding debt is doable. The numerous financial tools available in Alaska can help our kids start strong, debt-free and equipped with the training and education needed to secure fulfilling Alaska jobs.

Lael M. Oldmixon is the executive director of the Education Trust of Alaska.

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Rounding to the nearest nickel for cash purchases proposed by Alaska lawmaker

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Rounding to the nearest nickel for cash purchases proposed by Alaska lawmaker


HB 281 mirrors legislation in other states due to shortage of pennies resulting from Trump administration’s halt in production

A cash register drawer at Rainbow Foods on Monday, Jan. 26, 2026. (Mark Sabbatini / Juneau Independent)

Suzanne Cohen says she hasn’t had trouble coming up with enough pennies when making cash purchases. But since the copper coins are no longer being minted she doesn’t object if future purchases are rounded off to the nearest nickel.

“If they’ve gotten rid of it it seems like it’s only a matter of time, so this is probably the right thing to do eventually,” she said during the noon hour on Monday at Rainbow Foods.

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A hour earlier and a block away at the Alaska State Capitol, a bill was introduced rounding cash purchases to the nearest five-cent sum by Rep. Dan Saddler, R-Eagle River. House Bill 281 is similar to legislation introduced in other states following the Trump administration’s decision last year to stop making new pennies.

“After the U.S. Treasury decided last fall to stop minting pennies, they’re disappearing from circulation faster than they expected,” Saddler stated in an email to the Juneau Independent on Monday. “As pennies get more scarce, we should make sure businesses can’t round transactions up or down to their advantage. My HB 281 simply sets consistent, fair standards for how cash transactions should be rounded to the nearest nickel, to protect Alaska consumers and businesses.”

Practically applied, it means a shopper handing $2 to a cashier would get no change back from a $1.98 purchase, but a nickel back from a $1.97 purchase.

“If the total ends in one cent, two cents, six cents, or seven cents, the total is rounded down to the nearest amount divisible by five cents; (2) if the total ends in three cents, four cents, eight cents, or nine cents, the total is rounded up to the nearest amount divisible by five cents,” the text of HB 281 states.

Dyoni Smith, a section manager at Rainbow Foods who was working at one of the registers on Monday, said there hasn’t been a noticeable shortage of pennies yet either at the store or for the cash purchases she still makes regularly.

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“We have a few people who actually pay to the penny with cash,” she said. “And then we have some, like one guy who comes in and he’ll pay cash, and he’ll put the remainder in the donation jar. And then another guy who comes in and sometimes he’ll pay to the penny — sometimes he’ll get change out of the change jar. So there’s quite a few people who I see who use cash.”

President Donald Trump last February ordered the U.S. Treasury Department to stop minting new pennies — something long discussed by other policymakers since the coins cost more to make than they are worth. The U.S. Mint reported that a penny cost about 3.7 cents to make in fiscal 2024, up from 3.1 cents the previous year.

Among the factors to be considered in states implementing rounding laws are possible legal challenges, impacts to retailers and what happened when Canada stopped distributing its penny in 2012, according to a policy summary by the National Conference of State Legislatures. But generally the organization states such laws are worth supporting.

“While states may approach this issue differently due to their own unique circumstances, there is a growing consensus among retailers, economists, and other stakeholders, recognizing symmetrical rounding, (up or down) to the nearest nickel, as the fairest method to all parties when applying to cash transaction,” the policy summary notes.

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.



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TSA is now accepting Alaska Mobile IDs at select airports

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TSA is now accepting Alaska Mobile IDs at select airports


ANCHORAGE, Alaska (KTUU) – The Transportation Security Administration has begun accepting Alaska Mobile ID’s at security checkpoints in the Anchorage and Juneau airports. The digital ID’s, which were introduced in the state about a year ago, are just starting to catch on, according to Lauren Whiteside, Division Operations Manager for the Alaskan DMV.

Whiteside said the Division has been working closely with partners for months to prepare Alaska’s Mobile IDs for use at TSA checkpoints in both airports.

“This is a really modernized movement that we are really excited to be a part of,” Whiteside said.

The IDs are obtained through an app that can be downloaded for free. The DMV website has links to the app stores as well as other information on how to obtain a mobile ID.

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Whiteside said there are lots of advantages to having your state approved identification on your phone. At the airport, she said, it’s convenience.

“You know sometimes you have your kids with you, sometimes you are balancing carry-on luggage, and if you can do all of your check-ins just using your phone, that’s really appealing to people.”

But Whiteside said the main appeal is privacy. No information can be shared from a mobile ID without the user’s consent, and people can select how much information they wish to share depending on the circumstances.

“I can opt to send everything, which you would likely always want to do with law enforcement, but you have all these options on what you choose to send and what you don’t choose to send,” she said.

Whiteside said it’s important to remember that mobile IDs don’t replace physical IDs, instead, they’re considered a companion to a regular ID and people will need to carry both in case a physical ID is requested.

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Although TSA acceptance is limited to just the Anchorage and Juneau airports, Whiteside said she fully expects the program will expand to other airports and other industries.

“As time goes on it’s going to become more and more common, so we recommend anyone who wants to have it- it is not a requirement -but anyone who wants it, we encourage you to go ahead and download,” she said.

See a spelling or grammar error? Report it to web@ktuu.com



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