Ravn Alaska Cuts 130 Jobs Amid Restructuring Measures

DALLAS – Anchorage-based (ANC) Ravn Alaska (7H) has reportedly cut 130 jobs, according to an airline spokesperson. Alaska News Source reports that the airline trimmed its staff count on Friday, February 23, when laying off 130 employees. Airways has contacted 7H to understand the restructuring better and will update this article accordingly.

The Alaskan airline specializes in serving the small communities in the US state of Alaska with a fleet of Beechcraft and DeHavilland Dash-8 aircraft. 7H is headquartered in Anchorage, home to its primary hub, Ted Stevens Anchorage International Airport (ANC), from which 578 flights are scheduled in February, per Cirium Diio data.

Financial Woes

When speaking to Alaska News Source, the 7H spokesperson declined to elaborate on which positions had been cut. However, in a mail to staff, the airline's CEO listed three significant challenges contributing to the decision. These include inflation, labor shortages, and unexpected competition on some of 7H's routes.

Ravn Alaska’s CEO Rob McKinney mailed employees on Friday saying that the airline was experiencing financial troubles and that the job cuts were necessary to avoid collapse. He said in the mail, “This is like what so many other airlines have gone through to become a viable service that can then begin to grow anew.”

The airline has not yet made any announcements concerning the layoffs nor any public statement on the staff reduction measures and how operations will be impacted.

Ravn’s Troubled Finances

The airline faced previous financial pressures in 2020, forcing it to cease all operations in the spring. After restructuring, 7H was able to resume operations in November 2020, with the airline operating under new ownership.

McKinney said that the company once again has to restructure, streamline costs, and enable the best possible chances for its survival. “Despite our best efforts with schedules, pricing, and previous attempts at right-sizing, we still were not hitting the profitability mark,” McKinney wrote.

In its current form, 7H is still experiencing the same issues it faced several years ago when 7H hit financial turbulence. McKinney said, “The hard truth is that we never really left oldco [old company] in the past. Due to the need to restart as quickly as we did, we ended up adopting many practices and policies that are inefficient at best.”

McKinney concluded the email to staff by saying that the carrier was not throwing in the towel and would emerge as a stronger company due to the restructuring.

Featured image: N887EA, Ravn ALASKA DHAS 8-100, PANC ANC, "SEAWOLVE." Photo: Yifei Yu/Airways