Air Alaska apply for CARES Act:”sizable cuts will be necessary for the coming months” – Idaho Reporter

Markets, National

Air Alaska apply for CARES Act:”sizable cuts will be necessary for the coming months”

Alaska Airlines (NYSE: ALK) a major American airline headquartered in SeaTac, Washington, announced today that they continue “to experience demand that is 80% or more below normal levels”.

In a message to shareholders they added that they “have moved quickly to dramatically reduce capacity, pull down costs, cull cash expenditures and access financing.”-adding that the “plan to update capacity reductions for June and beyond in the future. Given current trends and circumstances, it is our expectation that sizable cuts will be necessary for the coming months.”

On April 3, 2020 Alaska Airlines, Inc. and Horizon Air Industries, Inc. applied for payroll support grants under the CARES Act. Additionally, McGee Air Services, Inc., a ground services subsidiary of Alaska Airlines, also applied for payroll support grants.

Alaska Air disclosed in the statement that due to the “uncertainty about when demand may bottom out and when a recovery may begin, the CARES Act payroll support grants will be critical as we weather the challenging months ahead.”

Air Alaska stocks at Apr 6, 13:11 EDT are selling at $26.91. One share gained 9% (+2.22%) since the NYSE opened this morning.

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