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.”
[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.
“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.
[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.
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.
[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.
“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.
Alaska
Over $150K worth of drugs seized from man in Juneau, police say
JUNEAU, Alaska (KTUU) – An Alaska drug task force seized roughly $162,000 worth of controlled substances during an operation in Juneau Thursday, according to the Juneau Police Department.
Around 3 p.m. Thursday, investigators with the Southeast Alaska Cities Against Drugs (SEACAD) approached 50-year-old Juneau resident Jermiah Pond in the Nugget Mall parking lot while he was sitting in his car, according to JPD.
A probation search of the car revealed a container holding about 7.3 gross grams of a substance that tested presumptively positive for methamphetamine, as well as about 1.21 gross grams of a substance that tested presumptively positive for fentanyl.
As part of the investigation, investigators executed a search warrant at Pond’s residence, during which they found about 46.63 gross grams of ketamine, 293.56 gross grams of fentanyl, 25.84 gross grams of methamphetamine and 25.5 gross grams of MDMA.
In all, it amounted to just less than a pound of drugs worth $162,500.
Investigators also seized $102,640 in cash and multiple recreational vehicles believed to be associated with the investigation.
Pond was lodged on charges of second-degree misconduct involving a controlled substance, two counts of third-degree misconduct involving a controlled substance, five counts of fourth-degree misconduct involving a substance and an outstanding felony probation warrant.
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Copyright 2026 KTUU. All rights reserved.
Alaska
Sand Point teen found 3 days after going missing in lake
SAND POINT, Alaska (KTUU) – A teenage boy who was last seen Monday when the canoe he was in tipped over has been found by a dive team in a lake near Sand Point, according to a person familiar with the situation.
Alaska’s News Source confirmed with the person, who is close to the search efforts, that the dive team found 15-year-old Kaipo Kaminanga deceased Thursday in Red Cove Lake, located a short drive from the town of Sand Point on the Aleutian Island chain.
Kaminanga was last seen canoeing with three other friends on Monday when the boat tipped over.
A search and rescue operation ensued shortly after.
Alaska Dive Search Rescue and Recovery Team posted on Facebook Thursday night that they were able to “locate and recover” Kaminanga at around 5 p.m. Thursday.
“We are glad we could bring closure to his family, friends and community,” the post said.
This is a breaking news story and will be updated when more details become available.
See a spelling or grammar error? Report it to web@ktuu.com
Copyright 2026 KTUU. All rights reserved.
Alaska
Opinion: Homework for Alaska: Sales tax or income tax?
This is a tax tutorial for gubernatorial candidates, for legislators who will report to work next year and for the Alaska public.
Think of it as homework, with more than eight months to complete the assignment that is not due until the November election. The homework is intended to inform, not settle the debate over a state sales tax or state income tax — or neither, which is the preferred option for many Alaskans.
But for those Alaskans willing to consider a tax as a personal responsibility to help fund schools, roads, public safety, child care, state troopers, prisons, foster care and everything else necessary for healthy and productive lives, someday they will need to decide on a state income tax or a state sales tax after they accept the checkbook reality that oil and Permanent Fund earnings are not enough.
This homework assignment is intended to get people thinking with facts, not emotions. Electing the right candidates will be the first test.
Alaskans have until the next election because nothing will change this year. It will take a new political alignment led by a reality-based governor to organize support in the Legislature and among the public.
But next year, maybe, with the right elected leadership, Alaskans can debate a state sales tax or personal income tax. Plus, of course, corporate taxes and oil production taxes, but those are for another school day.
One of the biggest arguments in favor of a state sales tax is that visitors would pay it. Yes, they would, but not as much as many Alaskans think.
Air travel is exempt from sales taxes. So are cruise ship tickets. That’s federal law, which means much of what tourists spend on their Alaska vacation is beyond the reach of a state sales tax.
Cutting further into potential revenues, state and federal law exempts flightseeing tours from sales tax, which is a particularly costly exemption when you think about how much visitors spend on airplane and helicopter tours.
That leaves sales tax supporters collecting from tourists on T-shirts, gifts for grandchildren, artwork, postcards, hotels, Airbnb, car rentals and restaurant meals. Still a substantial take for taxes, but far short of total tourism spending.
An argument against a state sales tax is that more than 100 cities and boroughs already depend on local sales taxes to pay for schools and other public services. Try to imagine what a state tax piled on top of a local tax would do to kill shopping in Homer, already at 7.85%, or Kodiak, Wrangell and Cordova, all at 7%, and all the other municipalities.
Supporters of an income tax say it would share the responsibility burden with nonresidents who earn income in Alaska and then return home to spend their money.
Almost one in four workers in Alaska in 2024 were nonresidents, as reported by the state Department of Labor in January. That doesn’t include federal employees, active-duty military or self-employed people.
Nonresidents earned roughly $3.8 billion, or about 17% of every dollar covered in the report.
However, many of those nonresident workers are lower-wage and seasonal, employed in the seafood processing and tourism industries, unlikely to pay much in income taxes. But a tax could be structured so that they pay something, which is fair.
Meanwhile, higher-wage workers in oil and gas, mining, construction and airlines (freight and passenger service) would pay taxes on their income earned in Alaska, which also is fair.
It comes down to what would direct more of the tax burden to nonresidents: a tax on income or on visitor spending. Wages or wasabi-crusted salmon dinners.
Larry Persily is a longtime Alaska journalist, with breaks for federal, state and municipal public policy work in Alaska and Washington, D.C. He lives in Anchorage and is publisher of the Wrangell Sentinel weekly newspaper.
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