 However , the airline was not in good financial shape at that time . Like much of the airline industry , Alaska Airlines was hit with rising fuel and operating costs and was on the verge of bankruptcy . Revenues were significantly reduced when work on the Trans @-@ Alaska Pipeline System was delayed . The airline 's cargo aircraft had played a key role in building the pipeline , but now sat idle . The airline took another blow on September 4 , 1971 , when a Boeing 727 @-@ 100 jetliner crashed on landing in Juneau , killing 111 people and resulting in the worst single @-@ plane crash at the time . Because the airline was struggling financially , the airline 's board ousted the president and CEO Charles Willis . Former board member Ronald Cosgrave succeeded him . The airline was US $ 22 million in debt when Cosgrave took over , so Cosgrave began to make major cuts . The airline 's cargo business was dropped completely , as well as many flights and employees . Cosgrave also sought to improve the airline 's tarnished image of " Elastic Airlines . " The logo was changed to an image of a smiling Eskimo , which remains today . As a result of these efforts , the airline made a profit in 1973 and continued to be profitable thereafter . 
