Alaska Airlines sees steep drop in flight demand

SEATTLE -- Alaska Airlines told investors that it continues to experience an 80% drop in demand for its flights due to the coronavirus, so it will implement an 80% cut in flight capacity in the next two months.

The Seattle-based company will decide its schedule for June and beyond at a later date, but given current trends, they expect sizable cuts to continue. Alaska Airlines has applied for payroll support grants that are part of the recently passed federal legislation.

“Given 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,” company officials said in a filing to investors.

As of Monday, the airline had about $2 billion in cash and short term investments on hand, officials said.