On Jan. 27, more than 1,000 Alaska Airlines pilots who are members of the Air Line Pilots Association asked the union to approve a request for $5 million from ALPA's Major Contingency Fund to support the Alaska pilot's strike preparations.

The pilots currently are working on a contract, submitted by an arbitrator, which went into effect May 1, 2005.

Pilots and the airline are at odds over work rules, job security and pension issues.

"We are just trying to get a contract, not trying to do economic harm to the airline," said Sean Cassidy, chairman of the Alaska Airlines master executive council and a captain for the airline.

As the airline announced its fourth-quarter profit to shareholders Jan. 29, its pilots changed the name of its executive council to the strike preparedness committee.

"History shows that airline management doesn't get serious until its pilots get closer to striking," Cassidy said. "It's really important to stress that we do not want to strike, but we are getting ready should this drag on."

The airline says a decline in passenger numbers, and rising expenses and fuel costs ate up its profit for the first three quarters of 2008.

Alaska Airlines' mainline passenger traffic dropped 4.4 percent in the fourth quarter after the airline reduced the number of flights, thus cutting its capacity levels by 7.1 percent, compared to the fourth quarter of 2007.

Alaska Air Group reported a net loss of $135.9 million for 2008, compared to net income of $124.3 million in 2007. The airline saw benefits from its air cargo division and changes to its mileage plan. The company transitioned out its MD-80 fleet and reduced award benefits. All that helped the airline post a positive $42.3 million in the third quarter.

Alaska Air Group reported a 2008 net profit of $4.4 million, or 12 cents per diluted share, compared to $91.6 million, or $2.26 per diluted share, in 2007, according to company reports.

"In a year of unprecedented volatility that included soaring fuel prices and an economic meltdown, we were pleased to eke out a small profit for 2008, excluding special items, and be one of only a few major airlines to do so," Bill Ayer, Alaska Air Group's chairman and chief executive officer, said during a conference call discussing the results. "Our concerted efforts to control costs, improve our operation and tailor our schedule to better match customer demand have prepared us to face whatever hurdles the current year brings. I want to thank our people for taking excellent care of customers and stepping up to the challenge to see us through this period of great uncertainty."

Alaska's pilots took some issue with Ayer's statement on customer care.

"This is frustrating. As the company posts a profit, Ayer cites customer care as important and thanks the employees for that, and then they play kick the can with the pilots," said Cassidy.

Pilots have been working under a 4-year-old contract that contained pay cuts of up to 35 percent. Pilots say that immediately after the arbitrator agreed to the reduction, the airline started showing record profits.

Union spokesperson Jenn Farrell said there is a meeting with the airline scheduled for early February, and that ALPA pilots will continue to negotiate over the next two months. Farrell predicted that if there were a strike it would probably come during the upcoming tourist season in the summer of 2009.

"It's safe to say that something will have to happen this year," said Farrell.

Rob Stapleton can be reached at rob.stapleton@alaskajournal.com.