Alaska
Alaska Airlines CFO says IT system OK, even after repeated failures
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.
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.”
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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.
“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.
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.
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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.
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.
“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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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.
“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.”
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.
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/I3ORW46JAVT6NC7GH4IKASVMMQ.jpg?w=400&resize=400,240&ssl=1 "Washington state lawmaker pushes to ban hog-tying by police following Manuel Ellis' death")
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WHEREAS, on June 3, 1942, six months after the attack on Pearl Harbor, World War II arrived in Alaska when Dutch Harbor on Amaknak Island was bombed by Japanese – the first aerial attack by an enemy on the continental United States; and
WHEREAS, the Japanese pilots expected little resistance; but because of an intercepted message three weeks earlier, the installation was on high alert, and Navy and Marine personnel were prepared with anti-aircraft defenses; and
WHEREAS, encountering unexpected resistance at Dutch Harbor, installation, Japanese forces shifted their focus to the Margaret Bay Naval Barracks, where the attack claimed the lives of 25 servicemen; and
WHEREAS, following the initial attack on Dutch Harbor, Japanese forces launched additional assaults on Dutch Harbor, Adak, Kiska, and Attu, resulting in the Aleut people being evacuated and held in internment camps in Southeast Alaska for three years, through which many did not survive; and
WHEREAS, the brave soldiers of the United States Armed Forces and allied Canadian Forces fought valiantly for more than a year to reclaim the remaining Aleutian Islands. The battle of Attu stands as one of the most costly American assaults in the Pacific, with hundreds of servicemen making the ultimate sacrifice to liberate Alaska; and
WHEREAS, on the 84th anniversary of the bombing of Dutch Harbor, we remember and honor all who were affected by the attack, paying tribute both to the military personnel who served and died to defend our Nation and to the Aleut people who died while imprisoned.
NOW THEREFORE, I, Mike Dunleavy, GOVERNOR OF THE STATE OF ALASKA, do hereby proclaim June 3, 2026, as:
Dutch Harbor Remembrance Day
in Alaska and encourage all Alaskans to join with the people of Dutch Harbor, Unalaska, and the Aleutian Islands to honor all who were lost in Alaska during World War II, and I order the Alaska State Flag to be flown at half-staff in remembrance of those who perished.
Dated: June 3, 2026
A plane belonging to the Alaska National Guard appears to have been damaged during operations connected to Operation Epic Fury as part of American military efforts against Iran, according to online reports. Defense officials have so far declined to confirm whether Alaska National Guard personnel or equipment are taking part in the campaign.
Last week, defense industry news outlet The War Zone published photos of a KC-135 Stratotanker transiting through a British airbase. In the pictures, made by photographer Andrew McKelvey, the rear bottom of the fuselage and wing stabilizers are “peppered with temporary shrapnel damage repairs‚“ according to The War Zone’s article. The plane also appears to be missing its refueling boom, the proboscis extending from under the tail to pump off fuel to other aircraft.
In the photographs, the Stratotanker’s tail number is visible, identifying the refueling plane as belonging to the Alaska Air National Guard’s 168th Wing, based at Eielson Air Force Base outside of Fairbanks. The wing’s mission includes aerial refueling. That’s the tactic of large planes unloading vast quantities of fuel to aircraft, ranging from fighter jets to rescue helicopters, in midair.
Pictures from a different photographer published last week by another blog, The Aviationist, show the same plane. The tail includes the letters “AK” painted above a white polar bear.
In addition to the photographs, the reporting from The War Zone is based on publicly available flight data and social media posts scraped from a variety of sources.
According to information from Flight Radar 24, the Stratotanker left Eielson on March 5, just days after the U.S. and Israeli militaries began bombing Iranian targets on Feb. 28. Through March, according to public flight records, the plane was based at Ben Gurion Airport southeast of Tel Aviv, where, according to The War Zone, dozens of American refueling aircraft were staged as part of Operation Epic Fury.
There are no public flight records connected to the Stratotanker through April and most of May, until it appeared to fly through England on the way to the United States at the end of last month.
It is not clear how many Alaska Air National Guard planes, personnel or units are currently deployed in connection to the war effort against Iran.
A spokesperson for the Alaska National Guard referred all questions about Operation Epic Fury to the U.S. Central Command.
A spokesperson for CENTCOM, headquartered at MacDill Air Force Base in Florida, declined to answer questions on the record or provide any specific information about Alaska National Guard units deployed as part of ongoing military operations, citing the need to protect service members and operational security.
The Alaska National Guard has posted no informational releases or pictures connected to an overseas deployment during the last few months.
Much of Operation Epic Fury has been waged by military aircraft, and aerial refueling is critical to keeping planes supplied during long flights. A May 12 report from the Congressional Research Service composed of public damage reports to U.S. military aircraft noted that among the 42 records of damage or losses were seven KC-135 Stratotankers, though the findings were published before photos emerged of the Alaska-based plane. The report noted that the Defense Department “has not published a comprehensive assessment of combat losses” from Operation Epic Fury.
The tail number is associated with a Stratotanker manufactured in 1964, the year before Boeing ceased making them. All of the nearly 400 KC-135s currently in operation within the American military date back to that era of the Cold War.
The aircraft has the word “Tetlin” painted on the top of its tail. The name is an homage to the Interior Alaska village, one of several selected to honor longstanding bonds between military aviators and Alaska Native communities, according to photographs of a dedication ceremony posted by the Alaska National Guard last summer.
The 168th Wing currently has 12 Stratotankers attached to the unit. That number bumped up in April after a long campaign by Alaska Republican U.S. Sen. Dan Sullivan to allocate more tankers to the state’s portfolio given its vast geography and high number of advanced fighter jets.
- Alaska Airlines is opening its newest Lounge at Portland International Airport, featuring thoughtfully designed spaces with twice the square footage and seating of the current space
- The new Lounge reflects the airline’s appreciation for its loyal guests and comes as Alaska continues to expand its service in Portland, offering more flights and more options for guests
- The investment to modernize the Portland Lounge is part of Alaska’s growing portfolio to elevate its global guest experience and expand its Lounge footprint, including new spaces in Seattle, San Diego and Honolulu
PORTLAND, Ore., June 2, 2026 /PRNewswire/ — Alaska Airlines is set to welcome guests to its newest Lounge at Portland International Airport (PDX) when it officially opens on June 4, underscoring its continued investment in premium travel and one of the carrier’s key West Coast hubs.
After more than two years of construction, the approximately 14,000-square-foot Lounge will welcome guests with a warm, thoughtfully designed Pacific Northwest aesthetic, featuring an inviting fireplace and a striking wooden Mt. Hood mural by artist Ben Butler. At twice the size of the current Portland Lounge, it offers more than 230 seats, including Alaska’s Signature Loungers, along with high, open ceilings that bring in natural light and views of PDX’s new terminal. Guests can relax, enjoy fresh, regionally inspired food, sip barista-crafted beverages or cocktails from West Coast partners, or take advantage of ample power plugs and privacy booths for calls and meetings.
“Portland guests have chosen Alaska for years and played an important role in our growth in the Pacific Northwest,” said Shane Jones, senior vice president of fleet, products and guest experience. “This new Lounge is our way of thanking them and a reflection of our growing portfolio of premium guest experiences. We look forward to opening our doors this week and welcoming guests with the signature hospitality and thoughtful touches Alaska is known for.”
Alaska is the largest carrier serving Portland, operating more flights than any other airline, including more than 100 daily departures. Portland is a critical hub in Alaska and Hawaiian’s network with expanding service to over 60 destinations across North America and beyond. This summer, Alaska will launch year-round service to Everett/Paine Field and Pasco–Tri-Cities, along with seasonal service to Jackson Hole. Last month, new service began to Baltimore, Bellingham, Idaho Falls, Philadelphia and St. Louis. By this fall, Alaska will offer 50% more seats in Portland than just two years ago, reflecting strong demand for travel and the airline’s continued investment in the market.
“Our strong partnership with Alaska has helped to elevate the new PDX as a world-class destination that showcases the Pacific Northwest and makes everyone feel at home,” said Chris Czarnecki, PDX business and properties director. “We’re thrilled their new PDX Lounge is here for the long-haul, offering travelers a stunning spot to relax, recharge, and experience a taste of our region.”
The nearly $18 million investment in the Portland Lounge is part of Alaska’s growing Lounge footprint and broader commitment to enhancing the guest experience as it expands globally. Building on this investment, Alaska just announced its plans to open a landmark, more than 41,000-square-foot Lounge in 2027. The Lounge, which will be located in Seattle – home to the airline’s main hub – will be the largest in its network and among the largest airline lounges in the country. The airline is also designing its first Lounge in San Diego along with a new, expanded Lounge in Honolulu, both slated for early 2028.
Alaska Airlines Lounge members can access eight premium Lounges across the Alaska and Hawaiian Airlines network, including its largest Lounge in Seattle and additional locations at its hubs in Anchorage, Los Angeles and San Francisco. Alaska Lounge+ membership unlocks access to all Alaska Lounges, plus nearly 90 partner Lounges worldwide, including select oneworld and partner Lounges. To learn more or sign up to become an Alaska Lounge member, click here.
Frequently Asked Questions:
What is Alaska Airlines opening at Portland International Airport?
A: Alaska Airlines is opening a newly redesigned Lounge at Portland International Airport (PDX) on June 4, 2026, offering a larger, more modern space with premium amenities, regional food and beverage options, and enhanced comfort for guests.
How big is the new Alaska Lounge in Portland?
A: The new Lounge is approximately 14,000 square feet—about twice the size of the previous Portland Lounge—and features more than 230 seats.
What amenities are available in the new Alaska Lounge at PDX?
A: Guests can enjoy:
- Barista-crafted coffee and specialty beverages
- West Coast-inspired cocktails
- Fresh, locally inspired food
- Signature Lounge seating and private booths
- Ample power outlets and workspaces
- Relaxation areas with premium finishes
Who can access Alaska Airlines Lounges?
A: Access is available to:
- Alaska Lounge members
- Alaska Lounge+ members
- Eligible First Class guests
- Eligible oneworld and partner airline passengers
What is the difference between Alaska Lounge and Lounge+ membership?
A: Alaska Lounge+ membership includes access to all Alaska Lounges plus nearly 90 partner Lounges worldwide, while standard Alaska Lounge membership provides access to all eight Alaska-operated Lounges.
Why is Portland important to Alaska Airlines?
A: Portland is one of Alaska Airlines’ key West Coast hubs, with more than 100 daily departures and nonstop service to over 60 destinations across North America. By this fall, Alaska will offer 50% more seats in Portland than just two years ago, reflecting strong demand for travel and the airline’s continued investment in the market.
How is Alaska Airlines expanding its Lounge network?
A: Alaska Airlines is investing in multiple new and expanded Lounges, including:
- A 41,000+ square feet landmark Lounge in Seattle opening in 2027
- A new Lounge in San Diego
- An expanded Lounge in Honolulu
How much did Alaska Airlines invest in the new Portland Lounge?
A: Alaska Airlines invested nearly $18 million in the new Portland Lounge as part of its broader investment in premium travel as the airline continues to grow globally.
About Alaska, Hawaiian and Horizon
Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, and McGee Air Services is a subsidiary of Alaska Airlines. We are a global airline with hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia, the Pacific and Europe. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska and Hawaiian are members of the oneworld alliance. Members of our Atmos Rewards loyalty program can earn and redeem points with oneworld airlines and our additional global partners that serve over 1,000 worldwide destinations. Learn more about what’s happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as “ALK.”
SOURCE Alaska Airlines
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