Virgin America (VA) 10-Q 28 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 22, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	VIRGIN AMERICA INC.
Entity Central Index Key	1,614,436
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		44,264,975

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 562,816	$ 496,349
Receivables, net	29,165	19,556
Prepaid expenses and other assets	15,016	10,675
Total current assets	606,997	526,580
Property and equipment:
Flight equipment	480,630	373,199
Ground and other equipment	89,584	85,471
Less accumulated depreciation and amortization	(99,979)	(92,173)
Property, Plant and Equipment, Net	470,235	366,497
Pre-delivery payments for flight equipment	53,825	72,402
Total property and equipment, net	524,060	438,899
Aircraft maintenance deposits	221,383	216,207
Aircraft lease deposits	58,047	58,330
Restricted cash	20,354	19,800
Deferred income taxes	155,900	171,443
Other non-current assets	142,482	137,272
Assets, Noncurrent	598,166	603,052
Total assets	1,729,223	1,568,531
Current liabilities:
Accounts payable	67,518	76,603
Air traffic liability	258,685	174,853
Other current liabilities	106,119	117,135
Long-term debt-current portion	40,654	48,843
Total current liabilities	472,976	417,434
Long-term debt	292,727	216,477
Long-term debt-related parties	43,445	42,421
Other long-term liabilities	83,481	84,052
Total liabilities	$ 892,629	$ 760,384
Contingencies and commitments (Note 5)
Stockholders’ equity
Preferred stock	$ 0	$ 0
Common stock	443	442
Treasury stock	(5,038)	(5,038)
Additional paid-in capital	1,254,508	1,251,524
Accumulated deficit	(395,025)	(412,479)
Accumulated other comprehensive loss	(18,294)	(26,302)
Total stockholders’ equity	836,594	808,147
Total liabilities and stockholders’ equity	$ 1,729,223	$ 1,568,531

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating revenues:
Passenger	$ 322,631	$ 289,364
Other	41,378	36,987
Total operating revenues	364,009	326,351
Operating expenses:
Salaries, wages and benefits	78,868	64,733
Aircraft fuel	67,277	88,558
Aircraft rent	47,320	44,982
Landing fees and other rents	39,132	33,983
Sales and marketing	32,388	26,379
Aircraft maintenance	16,834	13,834
Depreciation and amortization	7,806	4,103
Other operating expenses	42,456	34,396
Total operating expenses	332,081	310,968
Operating income:	31,928	15,383
Other expense:
Interest expense	(3,466)	(1,216)
Interest expense-related-party	(1,024)	(806)
Capitalized interest	479	1,067
Other income (expense), net	217	(1,318)
Total other expense	(3,794)	(2,273)
Income before income tax	28,134	13,110
Income tax expense	10,680	324
Net income	$ 17,454	$ 12,786
Net income per share:
Basic (in dollars per share)	$ 0.39	$ 0.30
Diluted (in dollars per share)	$ 0.39	$ 0.29
Shares used for computation:
Basic (in shares)	44,230	43,184
Diluted (in shares)	44,618	44,618

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income	$ 17,454	$ 12,786
Other comprehensive income	8,008	12,217
Total comprehensive income	25,462	25,003
Energy Related Derivative
Change in unrealized losses on derivatives, net of tax expense	779	(3,018)
Derivative gains (losses) reclassified into earnings	8,102	15,235
Interest Rate Swap
Change in unrealized losses on derivatives, net of tax expense	(894)	0
Derivative gains (losses) reclassified into earnings	$ 21	$ 0

Consolidated Statements of Com5

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Energy Related Derivative
Unrealized gain (loss) on derivatives arising during period, tax benefit (expense)	$ (474)	$ 0
Reclassification into earnings, tax benefit (expense)	(4,920)	0
Interest Rate Swap
Unrealized gain (loss) on derivatives arising during period, tax benefit (expense)	543	0
Reclassification into earnings, tax benefit (expense)	$ (12)	$ 0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Cash Flows [Abstract]
Cash flows from operating activities	$ 95,348	$ 33,078
Cash flows from investing activities:
Acquisition of property and equipment	(98,624)	(7,137)
Pre-delivery payments for flight equipment	0	(2,322)
Net cash used in investing activities	(98,624)	(9,459)
Cash flows from financing activities:
Net proceeds of equity issuance	834	1
Proceeds of debt issuance	87,000	0
Debt issuance costs	(740)	0
Payment of long-term debt and capital lease obligations	(17,351)	0
Net cash provided by financing activities	69,743	1
Net increase in cash and cash equivalents	66,467	23,620
Cash and cash equivalents, beginning of period	496,349	394,643
Cash and cash equivalents, end of period	562,816	418,263
Non-cash transactions:
Non-cash loan borrowings on pre-delivery payments for flight equipment	$ 0	$ 6,966

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements of Virgin America Inc. (the “Company”) for the three months ended March 31, 2016 include the accounts of the Company and its variable interest entities, for which it was the primary beneficiary. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company's 2015 audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 (“ 2015 Form 10-K”). These unaudited condensed consolidated financial statements have been prepared as required by the U.S. Securities Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted as permitted by the SEC. The financial statements include all adjustments, including normal recurring adjustments and other adjustments, which are considered necessary for a fair presentation of the Company’s financial position and results of operations. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire year. Certain prior year amounts have been reclassified to conform to current year presentation. These amounts were not material to any of the periods presented. For the three months ended March 31, 2016, the Company incurred $1.6 million of costs related to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of April 1, 2016, with Alaska Air Group, Inc. (“Alaska Air Group” or “Parent”) and Alpine Acquisition Corp. (“Merger Sub”), its wholly-owned subsidiary. Refer to Note 9 - Subsequent Events for additional information. New and Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company is in the process of evaluating the new guidance on its consolidated financial statements. In February 2016, the FASB issued a comprehensive new leases standard that amends various aspects of existing accounting guidance for leases. It will require recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and the amended standard is the recognition of lease assets and lease liabilities by lessees on the balance sheet for those leases classified as operating leases under previous GAAP. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. As a result, the Company will have to recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company will evaluate the new guidance and plans to provide additional information about its expected financial effect at a future date. In August 2014, the FASB issued an accounting standards update to require evaluation of whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after its financial statements are issued (or available to be issued when applicable) and, if so, disclosure of that fact. The standard requires the Company to make this evaluation for both annual and interim reporting periods, if applicable, and disclose whether its plans alleviate that doubt. The standard is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. The Company does not expect this accounting standards update to have an impact on its consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued a comprehensive new revenue recognition standard that will replace most existing revenue recognition standards under U.S. GAAP and International Financial Reporting Standards (“IFRS”). The new standard will require the Company to recognize revenue when goods or services are transferred to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. As a result, the Company will need to use more judgments and estimates to determine when and how revenue is recognized than U.S. GAAP currently requires. In August 2015, the FASB issued an accounting standards update that provides a one-year deferral of the effective date for the new revenue standard for public and non-public entities, resulting in an effective date for the Company of January 1, 2018. In March 2016, the FASB issued an accounting standards update to improve the operability and understandability of the implementation guidance on principal versus agent considerations in the new revenue recognition standard. In April 2016, the FASB issued an accounting standards update to improve the guidance and reduce the cost and complexity of applying the guidance on identifying performance obligations in a contract and to improve the operability and understandability of the licensing implementation guidance in the new revenue recognition standard. The Company believes the most significant effect of the accounting standards update will be the elimination of the incremental cost method for frequent flyer accounting, which would require the Company to re-value its liability earned by customers associated with flights points with a relative fair value approach. The Company is continuing to evaluate the new guidance and plans to provide additional information about its expected financial effect at a future date.

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value	Fair Value The accounting guidance establishes a fair value hierarchy as follows: Level 1 Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities. Level 3 Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities. The following is a listing of the Company’s assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of March 31, 2016 and December 31, 2015 respectively (in thousands): March 31, 2016 Level 1 Level 2 Level 3 Total Assets (Liability) Cash equivalents $ 480,942 $ — $ — $ 480,942 Restricted cash 20,354 — — 20,354 Heating oil swaps - fuel derivative instruments — (8,739 ) — (8,739 ) Jet fuel swaps - fuel derivative instruments — (3,231 ) — (3,231 ) Interest rate swaps — (1,282 ) — (1,282 ) $ 501,296 $ (13,252 ) $ — $ 488,044 December 31, 2015 Level 1 Level 2 Level 3 Total Assets (Liability) Cash equivalents $ 419,176 $ — $ — $ 419,176 Restricted cash 19,800 — — 19,800 Heating oil swaps - fuel derivative instruments — (17,895 ) — (17,895 ) Jet fuel swaps - fuel derivative instruments — (9,655 ) — (9,655 ) Interest rate swaps — 155 — 155 $ 438,976 $ (27,395 ) $ — $ 411,581 The following are estimated fair values of the Company's debt at March 31, 2016 (in thousands): Carrying value Estimated fair value Third-party debt: Aircraft-related term loans $ 277,200 $ 284,134 Pre–delivery payment loans 20,890 20,890 Term loan credit facility 40,000 40,000 Related-party debt: Virgin Group 43,445 50,728 The estimated fair values of the Company’s related-party debt and aircraft-related term loans were based on rates currently offered for debt with similar maturities and terms. The carrying value of the pre-delivery payment loans approximated fair value due to their short-term nature. The carrying value of the airport slots term loan credit facility approximated fair value because it has a variable interest rate that approximates rates that would currently be available to the Company on borrowings for similar assets. The Company uses significant unobservable inputs in determining discounted cash flows to estimate the fair value, and therefore, such amounts are categorized as Level 3 in the fair value hierarchy.

Financial Derivative Instrument

Financial Derivative Instruments and Risk Management	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Derivative Instruments and Risk Management	Financial Derivative Instruments and Risk Management (a) Fuel Derivatives To manage economic risks associated with the fluctuations of aircraft fuel prices, since 2012, the Company has hedged a targeted percentage of its forecasted fuel requirements over the following 12 months with a rolling strategy of entering into call options for crude oil and collar contracts for heating oil in the longer term, three to 12 months before the expected fuel purchase date; then prior to maturity of these contracts, within three months of the fuel purchase, the Company exited these contracts by entering into offsetting trades and locking in the price of a percentage of its fuel requirements through the purchase of fixed forward pricing (FFP) contracts in jet fuel. In 2015, the Company changed its fuel hedging program strategy by discontinuing the purchase of call options and collars, and began utilizing forward swaps on jet fuel, heating oil and crude oil to lock in future fuel purchase prices. The Company’s remaining heating oil collars matured by the end of the second quarter 2015 and the remaining Brent call options matured by the end of the third quarter. The Company utilizes FFP contracts with its fuel service provider as part of its risk management strategy, wherein fixed prices are negotiated for set volumes of future purchases of fuel. The Company takes physical delivery of the future purchases. The Company has applied the normal purchase and normal sales exception for these commitments. As of March 31, 2016 , the total commitment related to FFP contracts was $0.7 million , for which the related fuel will be purchased during 2016 . The Company designates the majority of its fuel hedge derivatives contracts as cash flow hedges under the applicable accounting standard, if they qualify for hedge accounting. Under hedge accounting, all periodic changes in the fair value of the derivatives designated as effective hedges are recorded in accumulated other comprehensive income (loss) (AOCI) until the underlying fuel is purchased, at which point the deferred gain or loss will be recorded as fuel expense. In the event that the Company’s fuel hedge derivatives do not qualify as effective hedges, the periodic changes in fair value of the derivatives are included in fuel expense in the period they occur. If the Company terminates a fuel hedge derivative contract prior to its settlement date, the cumulative gain or loss recognized in AOCI at the termination date will remain in AOCI until the terminated intended transaction occurs. In the event it becomes improbable that such event will occur, the cumulative gain or loss is immediately reclassified into earnings. All cash flows associated with purchasing and settling of fuel hedge derivatives are classified as operating cash flows in the accompanying condensed consolidated statements of cash flows. (b) Interest Rate Swaps The Company enters into interest rate swaps to protect against adverse fluctuations in interest rates associated with variable rate debt financing by reducing its exposure to variability in cash flows related to the future interest payments on the financing for committed aircraft. The interest rate swaps are designated cash flow hedges. The Company's active swap at March 31, 2016 is on the underlying base indexed rate of one aircraft to be delivered in April 2016 for $34.0 million notional debt with a 12 -year term at 2.1% . The fair value of the active interest rate swap at March 31, 2016 is $1.3 million , which is reflected in other current liabilities in the accompanying consolidated balance sheet. The AOCI balance at March 31, 2016 related to interest rate swaps is a loss of $2.1 million and includes the value of interest rate swaps that matured in 2015 and are being amortized to interest expense over the term of the debt in the accompanying consolidated statements of operations. (c) Summary of Derivative Instruments All of the Company's derivatives were designated as cash flow hedges at March 31, 2016 and December 31, 2015 . The following tables present the fair value of derivative assets and liabilities that are designated as hedging instruments, as well as the location of the asset and liability balances within the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands): Derivatives designated as cash flow hedges Consolidated Fair value of derivatives as of March 31, 2016 December 31, 2015 Fuel derivative instruments—Heating oil swaps Current liabilities $ (8,898 ) $ (17,895 ) Fuel derivative instruments—Jet fuel swaps Current liabilities (4,059 ) (9,655 ) Interest rate swaps Current liabilities (1,282 ) — Total current liabilities $ (14,239 ) $ (27,550 ) Fuel derivative instruments—Heating oil swaps Current assets $ 159 $ — Fuel derivative instruments—Jet fuel swaps Current assets 828 — Interest rate swaps Current assets — 155 Total current assets $ 987 $ 155 As of March 31, 2016 and December 31, 2015 , the Company has deposited $1.7 million and $9.7 million , respectively, as collateral with two of its counterparties to comply with margin call requirements related to derivative losses that exceed the portfolio’s credit limit. The Company has recorded the margin call deposits in other current liabilities in the accompanying condensed consolidated balance sheet as of March 31, 2016 and December 31, 2015 , offsetting the net fuel hedge liability of $12.9 million and $27.6 million , respectively. The total net current liability related to fuel hedges was $11.2 million at March 31, 2016 and $17.9 million at December 31, 2015 . The following table summarizes the effect of derivative instruments in the condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 (in thousands): Derivatives accounted for as hedging instruments under ASC 815 Consolidated financial Gains (losses) on derivative March 31, 2016 March 31, 2015 Fuel derivative instruments Aircraft fuel expense $ (14,094 ) $ (15,215 ) Interest rate swaps Interest expense (33 ) — Total impact to the consolidated statements of operations $ (14,127 ) $ (15,215 ) Derivatives not accounted for as hedging instruments under ASC 815 Consolidated financial Gains (losses) on derivative March 31, 2016 March 31, 2015 Fuel derivative instruments Aircraft fuel expense $ — $ (447 ) Total impact to the consolidated statements of operations $ — $ (447 ) At March 31, 2016 , the Company estimates that approximately $11.5 million of net fuel derivative losses related to its cash flow fuel hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. At March 31, 2016 , the Company estimates that approximately $0.2 million of net derivative losses related to its interest rate swaps included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. The effect of derivative instruments designated as cash flow hedges and the underlying hedged items on the condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 , respectively, is summarized as follows (in thousands): Derivatives designated as cash flow hedges Amount of gain (loss) Gain (loss) reclassified Amount of gain (loss) March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Fuel derivative instruments $ 1,253 $ (3,018 ) $ (13,022 ) $ (15,235 ) $ (1,072 ) $ 20 Interest rate swaps (1,437 ) — (33 ) — — — The notional amounts of the Company’s outstanding derivatives are summarized as follows (gallons in millions): March 31, 2016 December 31, 2015 Derivatives designated as hedging instruments: Fuel derivative instruments—Heating oil swaps (gallons) 25 38 Fuel derivative instruments—Jet fuel swaps (gallons) 37 25 Interest rate swaps (dollars) $ 34 $ 34 As of March 31, 2016 , the Company has entered into fuel derivative contracts for approximately 40% of its forecasted aircraft fuel requirements for 2016 at a weighted-average cost per gallon of $1.39 , excluding related fuel taxes. The Company presents its derivative instruments at net fair value in the accompanying condensed consolidated balance sheets. The Company’s master netting arrangements with counterparties allow for net settlement under certain conditions. As of March 31, 2016 , information related to these offsetting arrangements was as follows (in thousands): March 31, 2016 Derivatives offset in consolidated balance sheet Derivatives eligible for offsetting Gross derivative Gross derivative Net amount Gross derivative Gross derivative Net amount Fair value of assets $ 1,775 $ (788 ) $ 987 $ 1,775 $ (788 ) $ 987 Fair value of liabilities (13,745 ) 788 (12,957 ) (13,745 ) 788 (12,957 ) Margin call deposits 1,725 1,725 Total $ (10,245 ) $ (10,245 ) As of December 31, 2015 , no fuel derivative amounts were available for offset. As of March 31, 2016 and December 31, 2015 , no amounts were available for offset for interest rate swaps.

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Long-term Debt	Long-Term Debt In February 2016, the Company took delivery of its first two of five aircraft scheduled to be delivered in 2016 and simultaneously executed financing agreements totaling $68.2 million with senior debt facilities subject to 12 -year repayment terms with an average interest rate of 4.0% and $11.1 million with subordinated debt facilities subject to seven -year repayment terms with an average interest rate of 6.4% . Principal and interest are payable quarterly in arrears. Loans related to both aircraft are not pre-payable prior to the third anniversary of the delivery date (for the first aircraft) or issuance date (for the second aircraft) and are pre-payable at par thereafter, subject to payment of early termination charges, if applicable. The debt agreements have no financial covenants. In March 2016, the Company financed $7.8 million of the purchase price of a spare engine acquired in 2015 with a debt facility subject to 7 -year repayment terms and at a 90 day floating rate based on LIBOR. Principal and interest are payable quarterly in arrears. The loan related to the engine is not pre-payable prior to the third anniversary of the delivery date and is pre-payable at par thereafter. The debt agreement has no financial covenants. Long-term debt including accrued paid-in-kind interest consisted of the following as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 Third-party debt: Aircraft-related term loans $ 277,200 $ 193,618 Pre–delivery payment loans 20,890 34,823 Term loan credit facility 40,000 40,000 Total third-party debt 338,090 268,441 Related-party debt: Virgin Group 53,461 52,808 Total debt 391,551 321,249 Less: current maturities (40,654 ) (48,843 ) Less: unamortized debt issuance costs (4,709 ) (3,121 ) Less: discount on Virgin Group debt (10,016 ) (10,387 ) Long–term debt $ 336,172 $ 258,898 In connection with three of the 2015 aircraft-related term loans and one of the 2016 aircraft-related term loans, a special purpose entity was formed to authorize and issue senior and junior secured notes and to acquire, finance, own and lease to the Company certain aircraft. Under variable interest entity accounting guidelines, the Company consolidated this entity because the Company is its primary beneficiary. As of March 31, 2016 , the entity's assets consisted of four aircraft it leased to the Company and its only liabilities consisted of notes payable in relation to the financing of such aircraft.

Contingencies and Commitments

Contingencies and Commitments	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	Contingencies and Commitments (a) Contingencies The Company is subject to legal proceedings, claims and investigations arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its condensed consolidated financial position, results of operations or cash flows. The Company is party to routine contracts under which it indemnifies third parties for various risks. The Company has not accrued any liability for these indemnities, as the amounts are not determinable nor estimable. In its aircraft related agreements, as is typical of commercial arrangements made in order to purchase, finance and operate commercial aircraft, the Company indemnifies the manufacturer, the financing parties and other related parties against liabilities that arise from the manufacture, design, ownership, financing, use, operation and maintenance of the aircraft for tort liability, whether or not these liabilities arise out of or relate to the negligence of these indemnified parties, except for their gross negligence or willful misconduct. The Company believes that it will be covered by insurance subject to deductibles for most tort liabilities and related indemnities as described above with respect to the aircraft the Company will operate. Additionally, if there is a change in the law that results in the imposition of any reserve, capital adequacy, special deposit or similar requirement the result of which is to increase the cost to the lender, the Company will pay the lender the additional amount necessary to compensate the lender for the actual cost increase. The Company cannot estimate the potential amount of future payments under the foregoing indemnities. (b) Commitments In December 2010, the Company entered into a purchase agreement with Airbus for 60 A320 aircraft, including 30 A320neo aircraft, the first commercial order for the new eco-efficient engine option. Under the terms of the Company’s aircraft purchase agreement, the Company is committed to making pre-delivery payments at varying dates prior to delivery. In December 2012, the Company amended its 2010 aircraft purchase agreement with Airbus reducing its order of 60 A320 aircraft to 40 aircraft and deferring delivery dates to begin in 2015. Under the amended agreement, the Company also obtained cancellation rights for the last 30 of the 40 aircraft, which cancellation rights are exercisable in groups of five aircraft three years prior to the stated delivery periods in 2020 to 2022, subject to loss of deposits and credits as a cancellation fee. All of the deposits have been reapplied according to the new delivery schedule except for $11.0 million which was converted into a credit earned upon delivery of the last 10 of the 40 aircraft. The Company has evaluated the recoverability of the deposits, credits and related capitalized interest in connection with the anticipated purchase of aircraft in future periods and determined them to be recoverable. If the Company ultimately exercises its cancellation rights for up to 30 aircraft, it would incur a loss of deposits and credits of up to $26.0 million as a cancellation fee. Because the Company concluded that the deposits and credits are recoverable and that it is not likely to incur cancellation fees, the Company did not record such fees. The Company maintains $53.8 million of pre-delivery payments, of which $27.8 million relates to the next three and $26.0 million to the last 30 aircraft, in its accompanying condensed consolidated balance sheets as of March 31, 2016 , $20.9 million of which was financed by a third party. Committed expenditures not subject to cancellation rights for these aircraft and separately sourced spare engines, including estimated amounts for contractual price escalations and pre-delivery payment deposits, will total approximately $128.3 million in 2016. In October 2015, the Company executed debt facility agreements to finance the Company's five 2016 aircraft deliveries for $199.3 million . This financing represents approximately 80% of the net purchase price of the A320ceo aircraft. Each of the loans will be closed and funded on the date of each respective aircraft delivery. The Company executed loans totaling $79.3 million under these agreements in relation to the two deliveries made during the quarter. See Note 4 - Long-Term Debt for additional information.. For the remaining three aircraft deliveries, the Company will finance $100.0 million through senior debt facility agreements with terms of 12 years and $20.0 million through subordinate debt facility agreements with terms of seven years. Principal and interest will be payable quarterly in arrears. All of the debt will accrue interest which, if fixed at current rates would average 4.2% . The debt agreements have no financial covenants. The Company entered into interest rate swaps on the underlying base indexed rates of one aircraft for $34.0 million notional of aircraft financing with a 12 -year term at 2.1% . Refer to Note 3 - Financial Derivative Instruments and Risk Management for more information. The Company took delivery of one aircraft in April 2016 as scheduled and drew the related financing in connection with such delivery, which increased long-term debt by $40.0 million . The Company had five spare engines on hand as of March 31, 2016 , four of which were leased under operating lease contracts and one of which was purchased in 2015. In March 2016, the Company financed $7.8 million of the purchase price of the engine purchased in 2015 with a debt facility subject to 7 -year repayment term and a 90 day floating interest rate based on three month LIBOR. The Company executed a debt facility agreement with similar terms to finance a sixth spare engine which is expected to be purchased in the second half of 2016.

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions The Company licenses the use of its brand name from certain entities affiliated with Virgin Enterprises Limited, a company incorporated in England and Wales (“VEL”). VEL is an affiliate of one of the Company’s largest stockholders, the Virgin Group, which has an employee who sits on the Company's board of directors. In connection with the recapitalization agreement the Company entered into in November 2014, the annual license fee to the Virgin Group increased from 0.5% to 0.7% of total revenue starting January 1, 2016. The annual license fee increase will resume at 0.5% once the Company’s total revenue for four consecutive quarters exceeds $4.5 billion . The Company paid license fees of $2.0 million and $1.6 million during the three months ended March 31, 2016 and 2015 , respectively. The Company has accrued unpaid royalty fees of $2.6 million and $2.0 million at March 31, 2016 and December 31, 2015 . As of March 31, 2016 , the Virgin Group, through its affiliates including VX Holdings L.P., owns approximately 18.3% of the Company’s issued and outstanding voting stock and all of the outstanding related-party debt. In order to comply with requirements under U.S. law governing the ownership and control of U.S. airlines, at least 75% of the voting stock of the Company must be held by U.S. citizens and at least two-thirds of the Company's board of directors must be U.S. citizens. U.S. citizen investors own over 75% of the voting stock of the Company, of which Cyrus Aviation Holdings, LLC, the largest single U.S. investor, owns approximately 27.9% as of March 31, 2016 . As of March 31, 2016 , 11.5% of the Company’s $376.8 million debt is held by related-party investors. The Company incurred $1.0 million and $0.8 million of related-party interest expense for the three months ended March 31, 2016 and 2015 , respectively. Commencing in November 2014, the Company began to incur an annual commitment fee on the $100.0 million Letter of Credit Facility issued by the Virgin Group. The fee was equal to 5.0% per annum of the daily maximum amount available to be drawn, accruing on a daily basis from the date of issuance and was payable quarterly. In June 2015, the Company canceled the Letter of Credit Facility in conjunction with the elimination of the credit card holdback requirement and stopped incurring related commitment fees. For the three months ended March 31, 2015 , the Company recorded $1.4 million in commitment fees related to this Letter of Credit Facility in other income (expense) in the accompanying condensed consolidated statement of operations.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for the three months ended March 31, 2016 was $10.7 million as compared to $0.3 million for the three months ended March 31, 2015 . The Company’s effective tax rate was approximately 38.1% in the three months ended March 31, 2016 , compared to 2.5% for the three months ended March 31, 2015 . The difference was primarily related to the effects of the valuation allowance the Company had on its deferred tax assets through the first three quarters of 2015 that was fully released as of December 31, 2015 . The rate for the first quarter of 2016 differs from the statutory rate of 35.0% mainly driven by state taxes.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Employee equity share options and unvested stock and stock units granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock and stock units, and shares to be issued under the Company's ESPP. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are collectively assumed to be used to repurchase shares. The following table sets forth the computation of the Company’s basic and diluted net income for the periods presented (in thousands, except per share data): Three months ended March 31, 2016 2015 BASIC: Net income $ 17,454 $ 12,786 Weighted-average common shares outstanding 44,230 43,184 Basic net income per share $ 0.39 $ 0.30 DILUTED: Net income $ 17,454 $ 12,786 Weighted-average common shares outstanding-basic 44,230 43,184 Effect of dilutive potential common shares 388 1,434 Weighted-average common shares outstanding-diluted 44,618 44,618 Diluted net income per share $ 0.39 $ 0.29 The following director and employee stock awards were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (share data, in thousands): Three months ended March 31, 2016 2015 Stock option awards — 17 Restricted stock awards 208 — Restricted stock units 101 — ESPP 25 —

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 1, 2016, the Company entered into the Merger Agreement with Alaska Air Group and Merger Sub. The Merger Agreement provides that Merger Sub will merge with and into Virgin America, with Virgin America surviving as a subsidiary of Parent (the “Merger”). At the closing of the acquisition, the Company’s stockholders will receive the right to receive $57.00 in cash, without interest and less any applicable withholding taxes, for each share of Virgin America’s stock that they own. Immediately prior to the closing of the acquisition, each unexpired and unexercised option to purchase shares of the Company's common stock will vest and be canceled in exchange for the right to receive $57.00 in cash per share less the option exercise price for such option, each outstanding restricted stock unit will vest and be canceled in exchange for the right to receive $57.00 in cash, and each outstanding award of shares that is subject to restrictions based on performance or continuing service will vest and be converted into the right to receive $57.00 in cash per share. All consideration is payable without interest and subject to deduction for any required withholding tax. The closing of the acquisition is subject to the approval by the Company's stockholders, performance by the parties of all their obligations under the Merger Agreement, regulatory approvals and the satisfaction of other customary closing conditions, as set forth in further detail in the Merger Agreement. The Company anticipates that the transaction will be consummated in the second half of 2016. However, the Company cannot predict with certainty whether and when any of the required closing conditions will be satisfied or if the Merger will close.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	The condensed consolidated financial statements of Virgin America Inc. (the “Company”) for the three months ended March 31, 2016 include the accounts of the Company and its variable interest entities, for which it was the primary beneficiary.
Basis of accounting	These unaudited condensed consolidated financial statements have been prepared as required by the U.S. Securities Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted as permitted by the SEC.
Use of estimates	The financial statements include all adjustments, including normal recurring adjustments and other adjustments, which are considered necessary for a fair presentation of the Company’s financial position and results of operations. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire year.
Prior period reclassifications	Certain prior year amounts have been reclassified to conform to current year presentation. These amounts were not material to any of the periods presented.
New accounting standards	New and Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company is in the process of evaluating the new guidance on its consolidated financial statements. In February 2016, the FASB issued a comprehensive new leases standard that amends various aspects of existing accounting guidance for leases. It will require recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and the amended standard is the recognition of lease assets and lease liabilities by lessees on the balance sheet for those leases classified as operating leases under previous GAAP. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. As a result, the Company will have to recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company will evaluate the new guidance and plans to provide additional information about its expected financial effect at a future date. In August 2014, the FASB issued an accounting standards update to require evaluation of whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after its financial statements are issued (or available to be issued when applicable) and, if so, disclosure of that fact. The standard requires the Company to make this evaluation for both annual and interim reporting periods, if applicable, and disclose whether its plans alleviate that doubt. The standard is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. The Company does not expect this accounting standards update to have an impact on its consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued a comprehensive new revenue recognition standard that will replace most existing revenue recognition standards under U.S. GAAP and International Financial Reporting Standards (“IFRS”). The new standard will require the Company to recognize revenue when goods or services are transferred to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. As a result, the Company will need to use more judgments and estimates to determine when and how revenue is recognized than U.S. GAAP currently requires. In August 2015, the FASB issued an accounting standards update that provides a one-year deferral of the effective date for the new revenue standard for public and non-public entities, resulting in an effective date for the Company of January 1, 2018. In March 2016, the FASB issued an accounting standards update to improve the operability and understandability of the implementation guidance on principal versus agent considerations in the new revenue recognition standard. In April 2016, the FASB issued an accounting standards update to improve the guidance and reduce the cost and complexity of applying the guidance on identifying performance obligations in a contract and to improve the operability and understandability of the licensing implementation guidance in the new revenue recognition standard. The Company believes the most significant effect of the accounting standards update will be the elimination of the incremental cost method for frequent flyer accounting, which would require the Company to re-value its liability earned by customers associated with flights points with a relative fair value approach. The Company is continuing to evaluate the new guidance and plans to provide additional information about its expected financial effect at a future date.

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis	The following is a listing of the Company’s assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of March 31, 2016 and December 31, 2015 respectively (in thousands): March 31, 2016 Level 1 Level 2 Level 3 Total Assets (Liability) Cash equivalents $ 480,942 $ — $ — $ 480,942 Restricted cash 20,354 — — 20,354 Heating oil swaps - fuel derivative instruments — (8,739 ) — (8,739 ) Jet fuel swaps - fuel derivative instruments — (3,231 ) — (3,231 ) Interest rate swaps — (1,282 ) — (1,282 ) $ 501,296 $ (13,252 ) $ — $ 488,044 December 31, 2015 Level 1 Level 2 Level 3 Total Assets (Liability) Cash equivalents $ 419,176 $ — $ — $ 419,176 Restricted cash 19,800 — — 19,800 Heating oil swaps - fuel derivative instruments — (17,895 ) — (17,895 ) Jet fuel swaps - fuel derivative instruments — (9,655 ) — (9,655 ) Interest rate swaps — 155 — 155 $ 438,976 $ (27,395 ) $ — $ 411,581
Estimated Fair Value of Debt	The following are estimated fair values of the Company's debt at March 31, 2016 (in thousands): Carrying value Estimated fair value Third-party debt: Aircraft-related term loans $ 277,200 $ 284,134 Pre–delivery payment loans 20,890 20,890 Term loan credit facility 40,000 40,000 Related-party debt: Virgin Group 43,445 50,728

Financial Derivative Instrume18

Financial Derivative Instruments and Risk Management (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Derivative Assets and Liabilities	The following tables present the fair value of derivative assets and liabilities that are designated as hedging instruments, as well as the location of the asset and liability balances within the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands): Derivatives designated as cash flow hedges Consolidated Fair value of derivatives as of March 31, 2016 December 31, 2015 Fuel derivative instruments—Heating oil swaps Current liabilities $ (8,898 ) $ (17,895 ) Fuel derivative instruments—Jet fuel swaps Current liabilities (4,059 ) (9,655 ) Interest rate swaps Current liabilities (1,282 ) — Total current liabilities $ (14,239 ) $ (27,550 ) Fuel derivative instruments—Heating oil swaps Current assets $ 159 $ — Fuel derivative instruments—Jet fuel swaps Current assets 828 — Interest rate swaps Current assets — 155 Total current assets $ 987 $ 155
Effects of Fuel Derivative Instruments in Condensed Consolidated Statements of Operations	The following table summarizes the effect of derivative instruments in the condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 (in thousands): Derivatives accounted for as hedging instruments under ASC 815 Consolidated financial Gains (losses) on derivative March 31, 2016 March 31, 2015 Fuel derivative instruments Aircraft fuel expense $ (14,094 ) $ (15,215 ) Interest rate swaps Interest expense (33 ) — Total impact to the consolidated statements of operations $ (14,127 ) $ (15,215 ) Derivatives not accounted for as hedging instruments under ASC 815 Consolidated financial Gains (losses) on derivative March 31, 2016 March 31, 2015 Fuel derivative instruments Aircraft fuel expense $ — $ (447 ) Total impact to the consolidated statements of operations $ — $ (447 )
Effect of Fuel Derivative Instrument Designated as Cash Flow Hedges on Condensed Consolidated Statements of Operations	The effect of derivative instruments designated as cash flow hedges and the underlying hedged items on the condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 , respectively, is summarized as follows (in thousands): Derivatives designated as cash flow hedges Amount of gain (loss) Gain (loss) reclassified Amount of gain (loss) March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Fuel derivative instruments $ 1,253 $ (3,018 ) $ (13,022 ) $ (15,235 ) $ (1,072 ) $ 20 Interest rate swaps (1,437 ) — (33 ) — — —
Notional Amounts of Outstanding Derivative Positions	The notional amounts of the Company’s outstanding derivatives are summarized as follows (gallons in millions): March 31, 2016 December 31, 2015 Derivatives designated as hedging instruments: Fuel derivative instruments—Heating oil swaps (gallons) 25 38 Fuel derivative instruments—Jet fuel swaps (gallons) 37 25 Interest rate swaps (dollars) $ 34 $ 34
Offsetting Assets	As of March 31, 2016 , information related to these offsetting arrangements was as follows (in thousands): March 31, 2016 Derivatives offset in consolidated balance sheet Derivatives eligible for offsetting Gross derivative Gross derivative Net amount Gross derivative Gross derivative Net amount Fair value of assets $ 1,775 $ (788 ) $ 987 $ 1,775 $ (788 ) $ 987 Fair value of liabilities (13,745 ) 788 (12,957 ) (13,745 ) 788 (12,957 ) Margin call deposits 1,725 1,725 Total $ (10,245 ) $ (10,245 )
Offsetting Liabilities	As of March 31, 2016 , information related to these offsetting arrangements was as follows (in thousands): March 31, 2016 Derivatives offset in consolidated balance sheet Derivatives eligible for offsetting Gross derivative Gross derivative Net amount Gross derivative Gross derivative Net amount Fair value of assets $ 1,775 $ (788 ) $ 987 $ 1,775 $ (788 ) $ 987 Fair value of liabilities (13,745 ) 788 (12,957 ) (13,745 ) 788 (12,957 ) Margin call deposits 1,725 1,725 Total $ (10,245 ) $ (10,245 )

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt including accrued paid-in-kind interest consisted of the following as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 Third-party debt: Aircraft-related term loans $ 277,200 $ 193,618 Pre–delivery payment loans 20,890 34,823 Term loan credit facility 40,000 40,000 Total third-party debt 338,090 268,441 Related-party debt: Virgin Group 53,461 52,808 Total debt 391,551 321,249 Less: current maturities (40,654 ) (48,843 ) Less: unamortized debt issuance costs (4,709 ) (3,121 ) Less: discount on Virgin Group debt (10,016 ) (10,387 ) Long–term debt $ 336,172 $ 258,898

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Basic and Diluted	The following table sets forth the computation of the Company’s basic and diluted net income for the periods presented (in thousands, except per share data): Three months ended March 31, 2016 2015 BASIC: Net income $ 17,454 $ 12,786 Weighted-average common shares outstanding 44,230 43,184 Basic net income per share $ 0.39 $ 0.30 DILUTED: Net income $ 17,454 $ 12,786 Weighted-average common shares outstanding-basic 44,230 43,184 Effect of dilutive potential common shares 388 1,434 Weighted-average common shares outstanding-diluted 44,618 44,618 Diluted net income per share $ 0.39 $ 0.29
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following director and employee stock awards were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (share data, in thousands): Three months ended March 31, 2016 2015 Stock option awards — 17 Restricted stock awards 208 — Restricted stock units 101 — ESPP 25 —

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business integration costs	$ 1.6

Fair Value - Assets and Liabili

Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 480,942	$ 419,176
Restricted cash	20,354	19,800
Assets fair value disclosure	488,044	411,581
Heating Oil | Collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		(17,895)
Jet Fuel | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		(9,655)
Energy Related Derivative | Heating Oil | Collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	(8,739)
Energy Related Derivative | Jet Fuel | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	(3,231)
Interest Rate Swap | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	(1,282)	155
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	480,942	419,176
Restricted cash	20,354	19,800
Assets fair value disclosure	501,296	438,976
Fair Value, Inputs, Level 1 | Heating Oil | Collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		0
Fair Value, Inputs, Level 1 | Jet Fuel | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		0
Fair Value, Inputs, Level 1 | Energy Related Derivative | Heating Oil | Collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	0
Fair Value, Inputs, Level 1 | Energy Related Derivative | Jet Fuel | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	0
Fair Value, Inputs, Level 1 | Interest Rate Swap | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Restricted cash	0	0
Assets fair value disclosure	(13,252)	(27,395)
Fair Value, Inputs, Level 2 | Heating Oil | Collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		(17,895)
Fair Value, Inputs, Level 2 | Jet Fuel | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		(9,655)
Fair Value, Inputs, Level 2 | Energy Related Derivative | Heating Oil | Collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	(8,739)
Fair Value, Inputs, Level 2 | Energy Related Derivative | Jet Fuel | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	(3,231)
Fair Value, Inputs, Level 2 | Interest Rate Swap | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		155
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Restricted cash	0	0
Assets fair value disclosure	0	0
Fair Value, Inputs, Level 3 | Heating Oil | Collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		0
Fair Value, Inputs, Level 3 | Jet Fuel | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)		0
Fair Value, Inputs, Level 3 | Energy Related Derivative | Heating Oil | Collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	0
Fair Value, Inputs, Level 3 | Energy Related Derivative | Jet Fuel | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	0
Fair Value, Inputs, Level 3 | Interest Rate Swap | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total current assets (liabilities)	$ 0	$ 0

Fair Value - Estimated Fair Val

Fair Value - Estimated Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt, Carrying value	$ 338,090	$ 268,441
Line of Credit
Debt Instrument [Line Items]
Long-term debt, Carrying value	40,000	40,000
Long-term debt, Estimated fair value	40,000
Aircraft-Related Term Loans | Senior debt facility
Debt Instrument [Line Items]
Long-term debt, Carrying value	277,200	193,618
Long-term debt, Estimated fair value	284,134
Pre-Delivery Payments | Senior debt facility
Debt Instrument [Line Items]
Long-term debt, Carrying value	20,890	$ 34,823
Long-term debt, Estimated fair value	20,890
Principal Owner
Debt Instrument [Line Items]
Related-party debt, Carrying value	43,445
Related-party debt, Estimated fair value	$ 50,728

Financial Derivative Instrume24

Financial Derivative Instruments and Risk Management - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)counterpartyaircraft$ / gal	Dec. 31, 2015USD ($)
Derivative [Line Items]
Exit date prior to need	3 months
Margin call deposits	$ 1,725	$ 9,700
Number of counterparties | counterparty	2
Derivative instrument liability	$ 12,957	27,550
Net current liability	11,232
Net current liability	10,245	$ 17,850
Forward Contracts
Derivative [Line Items]
Committed purchase contracts	$ 700
Forward Contracts | Jet Fuel
Derivative [Line Items]
Percent of fuel derivative contracts based on forecasted fuel requirements	40.00%
Weighted-average cost per gallon | $ / gal	1.39
Interest Rate Swap
Derivative [Line Items]
Number of underlying assets | aircraft	1
Term of contract	12 years
Unrealized gain (loss) on derivatives arising during period before tax	$ (2,100)
Interest Rate Swap | 2016 Purchases
Derivative [Line Items]
Fixed interest rate (percent)	2.10%
Number of underlying assets | aircraft	1
Notional amount of derivatives	$ 34,000
Term of contract	12 years
Energy Related Derivative | Minimum
Derivative [Line Items]
Purchase period prior to expected need	3 months
Energy Related Derivative | Maximum
Derivative [Line Items]
Period of forecasted fuel requirements	12 months
Purchase period prior to expected need	12 months
Other Receivables Current | 2016 Purchases
Derivative [Line Items]
Interest rate cash flow hedge derivative at fair value, net	$ 1,300
Cash Flow Hedging | Interest Rate Swap
Derivative [Line Items]
Estimate of net derivative losses to be reclassified in future	200
Cash Flow Hedging | Energy Related Derivative | Jet Fuel
Derivative [Line Items]
Estimate of net derivative losses to be reclassified in future	$ 11,500

Financial Derivative Instrume25

Financial Derivative Instruments and Risk Management - Fair Value of Derivative Assets and Liabilities (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Energy Related Derivative
Derivatives, Fair Value [Line Items]
Total current assets (liabilities)	$ (14,239)	$ (27,550)
Current Liabilities | Energy Related Derivative | Heating Oil | Swaps
Derivatives, Fair Value [Line Items]
Total current assets (liabilities)	(8,898)	(17,895)
Current Liabilities | Energy Related Derivative | Jet Fuel | Swaps
Derivatives, Fair Value [Line Items]
Total current assets (liabilities)	(4,059)	(9,655)
Current Liabilities | Interest Rate Swap | Swaps
Derivatives, Fair Value [Line Items]
Total current assets (liabilities)	(1,282)	0
Current Assets
Derivatives, Fair Value [Line Items]
Total current assets (liabilities)	987	155
Current Assets | Energy Related Derivative | Heating Oil | Swaps
Derivatives, Fair Value [Line Items]
Total current assets (liabilities)	159	0
Current Assets | Energy Related Derivative | Jet Fuel | Swaps
Derivatives, Fair Value [Line Items]
Total current assets (liabilities)	828	0
Current Assets | Interest Rate Swap | Swaps
Derivatives, Fair Value [Line Items]
Total current assets (liabilities)	$ 0	$ 155

Financial Derivative Instrume26

Financial Derivative Instruments and Risk Management - Effect of Fuel Derivative Instruments in the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Designated as Hedging Instrument | Energy Related Derivative
Derivative Instruments, Gain (Loss) [Line Items]
Total impact to the consolidated statements of operations	$ (14,127)	$ (15,215)
Designated as Hedging Instrument | Energy Related Derivative | Jet Fuel | Aircraft Fuel Expense
Derivative Instruments, Gain (Loss) [Line Items]
Total impact to the consolidated statements of operations	(14,094)	(15,215)
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Total impact to the consolidated statements of operations	(33)	0
Not Designated as Hedging Instrument | Energy Related Derivative
Derivative Instruments, Gain (Loss) [Line Items]
Total impact to the consolidated statements of operations	0	(447)
Not Designated as Hedging Instrument | Energy Related Derivative | Jet Fuel | Aircraft Fuel Expense
Derivative Instruments, Gain (Loss) [Line Items]
Total impact to the consolidated statements of operations	$ 0	$ (447)

Financial Derivative Instrume27

Financial Derivative Instruments and Risk Management - Effect of Fuel Derivative Instruments Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Energy Related Derivative | Jet Fuel
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in AOCI on derivatives (Effective portion)	$ 1,253	$ (3,018)
Gain (loss) reclassified from AOCI into income (Fuel expense) (Effective portion)	(13,022)	(15,235)
Amount of gain (loss) recognized into income (Ineffective portion)	(1,072)	20
Interest Rate Swap
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in AOCI on derivatives (Effective portion)	(1,437)	0
Gain (loss) reclassified from AOCI into income (Fuel expense) (Effective portion)	(33)	0
Amount of gain (loss) recognized into income (Ineffective portion)	$ 0	$ 0

Financial Derivative Instrume28

Financial Derivative Instruments and Risk Management - Notional Amounts of the Outstanding Fuel Derivatives (Details) - Designated as Hedging Instrument gal in Millions, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016USD ($)gal	Dec. 31, 2015USD ($)gal
Energy Related Derivative | Heating Oil | Swaps
Derivatives, Fair Value [Line Items]
Notional amounts	25	38
Energy Related Derivative | Jet Fuel | Swaps
Derivatives, Fair Value [Line Items]
Notional amounts	37	25
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Notional amount of derivatives | $	$ 34	$ 34

Financial Derivative Instrume29

Financial Derivative Instruments and Risk Management - Offsetting Arrangements (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Derivative offset in consolidated balance sheet [Abstract]
Gross derivative amounts - fair value of assets	$ 1,775
Gross derivative amounts offset in consolidated balance sheet - fair value of assets	(788)
Net amount - fair value of assets	987
Gross derivative amounts - fair value of liabilities	(13,745)
Gross derivative amounts offset in consolidated balance sheet - fair value of liabilities	788
Net amount - fair value of liabilities	(12,957)	$ (27,550)
Net amount - margin call deposits	1,725	9,700
Net amount - Total	(10,245)	$ (17,850)
Derivative eligible for offsetting [Abstract]
Gross derivative amount - fair value of assets	1,775
Gross derivative amounts offset in consolidated balance sheet - fair value of assets	(788)
Gross derivative amounts - fair value of liabilities	(13,745)
Gross derivative amounts offset in consolidated balance sheet - fair value of liabilities	788
Net amount - Total	$ 10,245

Long-term Debt - Schedule of Lo

Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 338,090	$ 268,441
Related-party debt	53,461	52,808
Total debt	391,551	321,249
Less: current maturities	(40,654)	(48,843)
Less: unamortized debt issuance costs	(4,709)	(3,121)
Less: discount on Virgin Group debt	(10,016)	(10,387)
Long-term debt	336,172	258,898
Senior debt facility | Aircraft-Related Term Loans
Debt Instrument [Line Items]
Long-term debt	277,200	193,618
Senior debt facility | Pre-Delivery Payments
Debt Instrument [Line Items]
Long-term debt	20,890	34,823
Term Loan Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 40,000	$ 40,000

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details)	1 Months Ended			3 Months Ended
	Mar. 31, 2016USD ($)loan	Feb. 29, 2016USD ($)aircraft	Oct. 30, 2015USD ($)aircraft	Mar. 31, 2016USD ($)loanaircraft
Primary Beneficiary
Debt Instrument [Line Items]
Number of aircraft operated | aircraft				4
Senior debt facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 68,200,000	$ 100,000,000
Term of debt instrument		12 years	12 years
Average interest rate (percent)		4.00%
Subordinated Debt
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 11,050,000	$ 20,000,000
Term of debt instrument		7 years	7 years
Average interest rate (percent)		6.40%
Loans Payable
Debt Instrument [Line Items]
Average interest rate (percent)	4.20%			4.20%
2016 Purchases
Debt Instrument [Line Items]
Number of aircraft | aircraft		5	5	2
2016 Purchases | Senior debt facility | Aircraft-Related Term Loans
Debt Instrument [Line Items]
Number of loans | loan	1			1
2016 Purchases | Loans Payable
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 79,300,000		$ 199,300,000	$ 79,300,000
First Two
Debt Instrument [Line Items]
Number of aircraft | aircraft		2
2015 Purchases | Senior debt facility | Aircraft-Related Term Loans
Debt Instrument [Line Items]
Number of loans | loan	3			3
Aircraft Engine | Loans Payable
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 7,800,000			$ 7,800,000
Term of debt instrument	7 years

Contingencies and Commitments (

Contingencies and Commitments (Details)	1 Months Ended						3 Months Ended
	Apr. 25, 2016aircraft	Mar. 31, 2016USD ($)engineaircraft	Feb. 29, 2016USD ($)aircraft	Oct. 30, 2015USD ($)aircraft	Dec. 31, 2012USD ($)aircraft	Dec. 31, 2010aircraft	Mar. 31, 2016USD ($)engineaircraft	Apr. 28, 2016USD ($)	Dec. 31, 2015USD ($)
Loss Contingencies [Line Items]
Pre-delivery payments for flight equipment		$ 53,825,000					$ 53,825,000		$ 72,402,000
Committed expenditures in 2016		128,300,000					$ 128,300,000
Number of aircraft engines | engine							5
Pre-Delivery Payments
Loss Contingencies [Line Items]
Fair value of non-related party debt		$ 20,900,000					$ 20,900,000
Loans Payable
Loss Contingencies [Line Items]
Average interest rate (percent)		4.20%					4.20%
Senior debt facility
Loss Contingencies [Line Items]
Maximum borrowing capacity			$ 68,200,000	$ 100,000,000
Term of debt instrument			12 years	12 years
Average interest rate (percent)			4.00%
Subordinated Debt
Loss Contingencies [Line Items]
Maximum borrowing capacity			$ 11,050,000	$ 20,000,000
Term of debt instrument			7 years	7 years
Average interest rate (percent)			6.40%
Capital Addition Purchase Commitments | A-320
Loss Contingencies [Line Items]
Number of aircraft | aircraft					40	60
Cancellation rights (number of aircraft) | aircraft					30
Number of aircraft in group | aircraft					5
Last tranche of aircraft | aircraft					10
Cancellation rights period prior to delivery (period)					3 years
Deposits on flight equipment converted to credits					$ 11,000,000
Cancellation fee					$ 26,000,000
Capital Addition Purchase Commitments | A-320 Neo
Loss Contingencies [Line Items]
Number of aircraft | aircraft						30
Capital Addition Purchase Commitments, First Ten Aircraft | A-320
Loss Contingencies [Line Items]
Pre-delivery payments for flight equipment		$ 27,800,000					$ 27,800,000
Long-term purchase commitment, tranche two | aircraft		3					3
Capital Addition Purchase Commitments, Last Thirty Aircraft | A-320
Loss Contingencies [Line Items]
Pre-delivery payments for flight equipment		$ 26,000,000					$ 26,000,000
Long-term purchase commitment, tranche two | aircraft		30					30
2016 Purchases
Loss Contingencies [Line Items]
Number of aircraft | aircraft			5	5			2
Percentage of purchase price financed through the debt facility				80.00%
2016 Purchases | Subsequent Event
Loss Contingencies [Line Items]
Number of aircraft acquired | aircraft	1
2016 Purchases | Loans Payable
Loss Contingencies [Line Items]
Maximum borrowing capacity		$ 79,300,000		$ 199,300,000			$ 79,300,000
2016 Purchases | Loans Payable | Subsequent Event
Loss Contingencies [Line Items]
Maximum borrowing capacity								$ 40,000,000
Last Three
Loss Contingencies [Line Items]
Number of aircraft | aircraft							3
Aircraft Engine | Loans Payable
Loss Contingencies [Line Items]
Maximum borrowing capacity		$ 7,800,000					$ 7,800,000
Term of debt instrument		7 years
Interest Rate Swap
Loss Contingencies [Line Items]
Number of underlying assets | aircraft							1
Term of contract							12 years
Interest Rate Swap | 2016 Purchases
Loss Contingencies [Line Items]
Number of underlying assets | aircraft							1
Notional amount of derivatives		$ 34,000,000					$ 34,000,000
Term of contract							12 years
Fixed interest rate (percent)		2.10%					2.10%
Aircraft Engine
Loss Contingencies [Line Items]
Number of engines leased | engine		4					4
Aircraft Engine | 2015 Purchases
Loss Contingencies [Line Items]
Number of engines leased | engine		1					1

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($)	3 Months Ended			12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2015
Related Party Transaction [Line Items]
Royalty fee (percent)				0.50%
Interim royalty fee rate (percent)	0.70%
Revenue target to reach ultimate royalty fee rate	$ 4,500,000,000
Percentage owned by related parties	11.50%
Long-term debt, net	$ 376,800,000
Related-party interest expense	$ 1,024,000	$ 806,000
VX Holdings L.P.
Related Party Transaction [Line Items]
Ownership percentage	18.30%
Cyrus Aviation Holdings, LLC
Related Party Transaction [Line Items]
Ownership percentage	27.90%
Virgin Group | Line of Credit | Letter of Credit
Related Party Transaction [Line Items]
Maximum borrowing capacity	$ 100,000,000
Line of credit commitment fee percentage	5.00%
Commitment fee	$ 1,400,000
License Fees | Affiliated Entity
Related Party Transaction [Line Items]
License fees		$ 2,000,000	$ 1,600,000
Accrued Unpaid Royalty Fees | Affiliated Entity
Related Party Transaction [Line Items]
Accrued unpaid royalty fees	$ 2,600,000			$ 2,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 10,680	$ 324
Income Tax Examination [Line Items]
Effective tax rate (percent)	38.10%	2.50%
Federal statutory income tax rate (percent)	35.00%

Net Income Per Share - Earnings

Net Income Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic:
Net income	$ 17,454	$ 12,786
Weighted-average common shares outstanding	44,230	43,184
Basic net income per share (in dollars per share)	$ 0.39	$ 0.30
Diluted:
Effect of dilutive potential common shares	388	1,434
Weighted-average common shares outstanding-diluted	44,618	44,618
Diluted net income per share (in dollars per share)	$ 0.39	$ 0.29

Net Income Per Share - Anti-dil

Net Income Per Share - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock option awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted earnings per share	0	17
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted earnings per share	208	0
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted earnings per share	101	0
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted earnings per share	25	0

Subsequent Events (Details)

Subsequent Events (Details)	Apr. 01, 2016$ / shares
Subsequent Event | Alaska Air Group, Inc. | Merger Agreement
Subsequent Event [Line Items]
Share price (in dollars per share)	$ 57