There's no cut in the 500/yr going into the pilots' 401Ks. That is contractual and protected. But if that applies to the hourly and salaried employees and not just the salaried exempt employees, (the wording of the press release seems a little unclear on the point) there are going to be some very unhappy workers around the property.
They all had an A plan-like, defined benefit retirement program until about 18 months ago, and then it was frozen and replaced with a beefed-up 401K. Now with the company forcasting positive earnings (albeit reduced earnings) for the next year, they are going to suspend the company's contribution? I'd be some PO'ed.