DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 3 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Year Focus | '2013 | ' |
Entity Registrant Name | 'ALASKA AIR GROUP, INC. | ' |
Entity Central Index Key | '0000766421 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Common Stock, Shares Outstanding | ' | 69,536,989 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $41 | $122 |
Marketable securities | 1,404 | 1,130 |
Total cash and marketable securities | 1,445 | 1,252 |
Receivables - net | 182 | 130 |
Inventories and supplies - net | 60 | 58 |
Deferred income taxes | 123 | 148 |
Fuel hedge contracts | 20 | 26 |
Prepaid expenses and other current assets | 105 | 123 |
Total Current Assets | 1,935 | 1,737 |
Property and Equipment | ' | ' |
Aircraft and other flight equipment | 4,419 | 4,248 |
Other property and equipment | 857 | 855 |
Deposits for future flight equipment | 550 | 369 |
Property and Equipment Total | 5,826 | 5,472 |
Less accumulated depreciation and amortization | 2,034 | 1,863 |
Total Property and Equipment - Net | 3,792 | 3,609 |
Fuel Hedge Contracts | 9 | 39 |
Other Assets | 126 | 120 |
Total Assets | 5,862 | 5,505 |
Current Liabilities | ' | ' |
Accounts payable | 60 | 65 |
Accrued wages, vacation and payroll taxes | 176 | 184 |
Other accrued liabilities | 676 | 557 |
Air traffic liability | 627 | 534 |
Current portion of long-term debt | 111 | 161 |
Total Current Liabilities | 1,650 | 1,501 |
Long-Term Debt, Net of Current Portion | 782 | 871 |
Other Liabilities and Credits | ' | ' |
Deferred income taxes | 554 | 446 |
Deferred revenue | 295 | 443 |
Obligation for pension and postretirement medical benefits | 461 | 489 |
Other liabilities | 318 | 334 |
Other Liabilities and Credits Totals | 1,628 | 1,712 |
Commitments and Contingencies | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, $1 par value Authorized: 5,000,000 shares, none issued or outstanding | 0 | 0 |
Common stock, $1 par value, Authorized: 100,000,000 shares, Issued: 2013 - 69,991,221 shares; 2012 - 70,376,543 shares, Outstanding: 2013 - 69,650,542; 2012 - 70,376,543 | 70 | 70 |
Capital in excess of par value | 625 | 660 |
Treasury stock (common), at cost: 2013 - 340,679 shares; 2012 - 0 shares | -21 | 0 |
Accumulated other comprehensive (loss) | -414 | -436 |
Retained earnings | 1,542 | 1,127 |
Total Shareholders' Equity | 1,802 | 1,421 |
Total Liabilities and Shareholders' Equity | $5,862 | $5,505 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Stockholders' Equity: | ' | ' |
Preferred Stock, par value | $1 | $1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 69,991,221 | 70,376,543 |
Common stock, shares outstanding | 69,650,542 | 70,376,543 |
Treasury Stock, Shares | 340,679 | 0 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Revenues | ' | ' | ' | ' |
Passenger, Mainline | $960 | $905 | $2,651 | $2,491 |
Passenger, Regional | 208 | 198 | 582 | 559 |
Total passenger revenue | 1,168 | 1,103 | 3,233 | 3,050 |
Freight and mail | 32 | 30 | 88 | 85 |
Other - net | 165 | 139 | 433 | 390 |
Special Revenue | 192 | 0 | 192 | 0 |
Total Operating Revenues | 1,557 | 1,272 | 3,946 | 3,525 |
Operating Expenses | ' | ' | ' | ' |
Wages and benefits | 285 | 255 | 806 | 771 |
Variable incentive pay | 26 | 24 | 68 | 61 |
Aircraft fuel, including hedging gains and losses | 363 | 337 | 1,115 | 1,087 |
Aircraft maintenance | 54 | 56 | 187 | 160 |
Aircraft rent | 29 | 29 | 89 | 86 |
Landing fees and other rentals | 71 | 61 | 207 | 185 |
Contracted services | 54 | 50 | 161 | 149 |
Selling expenses | 47 | 46 | 137 | 131 |
Depreciation and amortization | 67 | 66 | 203 | 195 |
Food and beverage service | 22 | 20 | 63 | 58 |
Other | 69 | 59 | 202 | 184 |
Total Operating Expenses | 1,087 | 1,003 | 3,238 | 3,067 |
Operating Income | 470 | 269 | 708 | 458 |
Nonoperating income (expense) | ' | ' | ' | ' |
Interest income | 5 | 5 | 14 | 15 |
Interest expense | -13 | -15 | -42 | -49 |
Interest capitalized | 6 | 4 | 15 | 12 |
Other - net | -5 | 2 | -4 | 6 |
Nonoperating Income (Expense) Total | -7 | -4 | -17 | -16 |
Income before income tax | 463 | 265 | 691 | 442 |
Income tax expense | 174 | 102 | 261 | 170 |
Net Income | $289 | $163 | $430 | $272 |
Basic Earnings Per Share | $4.13 | $2.30 | $6.12 | $3.83 |
Diluted Earnings Per Share | $4.08 | $2.27 | $6.04 | $3.77 |
Shares used for computation: | ' | ' | ' | ' |
Basic shares | 69,780,000 | 70,963,000 | 70,152,000 | 70,852,000 |
Diluted shares | 70,692,000 | 71,883,000 | 71,106,000 | 72,059,000 |
Common Stock, Dividends, Per Share, Declared | $0.20 | $0 | $0.20 | $0 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income | $289 | $163 | $430 | $272 |
Related to marketable securities: | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during the period | 4 | 5 | -8 | 10 |
Reclassification adjustment for (gains) losses included in net income | 0 | -2 | -2 | -5 |
Income tax effect | -1 | -1 | 4 | -2 |
Marketable securities, net of tax | 3 | 2 | -6 | 3 |
Related to employee benefit plans: | ' | ' | ' | ' |
Reclassification of (gains) losses into net income (within Wages and benefits) | 11 | 10 | 32 | 30 |
Income tax effect | -5 | -4 | -12 | -11 |
Employee benefit plans, net of tax | 6 | 6 | 20 | 19 |
Related to interest rate derivative instruments: | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during the period | -1 | -4 | 9 | -9 |
Reclassification of (gains) losses into net income (within Aircraft rent) | 1 | 2 | 4 | 4 |
Income tax effect | 1 | 1 | -5 | -1 |
Interest rate derivative instruments, net of tax | 1 | -1 | 8 | -6 |
Other comprehensive income | 10 | 7 | 22 | 16 |
Comprehensive income | $299 | $170 | $452 | $288 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net Income | $430 | $272 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 203 | 195 |
Stock-based compensation and other | 26 | 8 |
Changes in certain assets and liabilities: | ' | ' |
Changes in fair values of open fuel hedge contracts | 35 | 28 |
Changes in deferred income taxes | 121 | 101 |
Increase in air traffic liability | 93 | 94 |
Increase (decrease) in deferred revenue | -147 | 13 |
Other - net | 61 | -73 |
Net cash provided by operating activities | 822 | 638 |
Property and equipment additions: | ' | ' |
Aircraft and aircraft purchase deposits | -353 | -298 |
Other flight equipment | -16 | -13 |
Other property and equipment | -26 | -29 |
Total property and equipment additions | -395 | -340 |
Assets constructed for others (Terminal 6 at LAX) | 0 | -65 |
Purchases of marketable securities | -994 | -811 |
Sales and maturities of marketable securities | 712 | 701 |
Proceeds from disposition of assets and changes in restricted deposits | -3 | 1 |
Net cash used in investing activities | -680 | -514 |
Cash flows from financing activities: | ' | ' |
Long-term debt payments | -139 | -240 |
Proceeds from sale-leaseback transactions | 0 | 49 |
Common stock repurchases | -83 | -52 |
Payments of Dividends | -14 | 0 |
Proceeds and tax benefit from issuance of common stock | 20 | 23 |
Other financing activities | -7 | 21 |
Net cash used in financing activities | -223 | -199 |
Net decrease in cash and cash equivalents | -81 | -75 |
Cash and cash equivalents at beginning of year | 122 | 102 |
Cash and cash equivalents at end of the period | 41 | 27 |
Cash paid during the period for: | ' | ' |
Interest (net of amount capitalized) | 31 | 40 |
Income taxes | 100 | 49 |
Non-cash transactions: | ' | ' |
Assets constructed related to Terminal 6 at LAX | $0 | $2 |
GENERAL_AND_SUMMARY_OF_SIGNIFI
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization and Basis of Presentation | |
The interim condensed consolidated financial statements include the accounts of Alaska Air Group, Inc. (Air Group or the Company) and its subsidiaries, Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon), through which the Company conducts substantially all of its operations. All intercompany balances and transactions have been eliminated. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in the Form 10-K for the year ended December 31, 2012. In the opinion of management, all adjustments have been made that are necessary to present fairly the Company’s financial position as of September 30, 2013, as well as the results of operations for the three and nine months ended September 30, 2013 and 2012. The adjustments made were of a normal recurring nature. | |
In preparing these statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, as well as the reported amounts of revenues and expenses. Due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, changes in global economic conditions and other factors, operating results for the three and nine months ended September 30, 2013, are not necessarily indicative of operating results for the entire year. |
NEW_ACCOUNTING_PRONOUNCEMENT_N
NEW ACCOUNTING PRONOUNCEMENT NEW ACCOUNTING PRONOUNCEMENT | 3 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Prospective Adoption of New Accounting Pronouncements [Abstract] | ' | ||||||
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' | ||||||
MODIFIED AFFINITY CARD AGREEMENT | |||||||
Multiple-Deliverable Revenue Arrangements | |||||||
Alaska operates a frequent flyer program (“Mileage Plan”) that provides travel awards to members based on accumulated mileage. Members can accumulate miles either by (i) flying on Alaska or on the Company's airline partners, or (ii) earning miles based on the amount spent with the affinity credit cards and the Company's other non-airline partners, such as hotels and car rental agencies. For miles earned by flying, the estimated cost of providing award travel is recognized as a selling expense and accrued as a liability as miles are earned and accumulated. For miles earned based on spend, the Company defers a portion of the amount sold to our non-airline partners representing deferred travel, and recognizes revenue for the services provided to the non-airline partners during the period. | |||||||
Historically, the Company deferred the portion of the sales proceeds that represented the estimated selling price of the award transportation by looking to the sales prices of comparable paid travel and recognized that amount as Passenger Revenue when the award transportation was provided by Alaska or as Other - net revenue when the awards were redeemed and flown on other airlines. The residual portion of the sales proceeds not deferred was recognized as revenue in the period that the miles were sold and included in Other - net revenue. | |||||||
On July 2, 2013, the Company modified it's Affinity Card Agreement (Agreement) with Bank of America Corporation (BAC), through which the Company sells miles and other items to BAC and the Company's loyalty program members accrue frequent flyer miles based on purchases using credit cards issued by BAC. The Agreement materially modifies the previously existing agreement between BAC and Alaska. As a result of the execution of the Agreement, consideration received as part of this agreement is subject to Accounting Standards Update 2009-13, "Multiple-Deliverable Revenue Arrangements - a consensus of the FASB Emerging Issues Task Force" (ASU 2009-13). | |||||||
The modified Agreement has the same four deliverables as the previous agreement which are: award transportation; certificates for discounted companion travel; use of the Alaska Airlines brand and access to frequent flyer member lists; and advertising. Under the previous residual method of accounting, sales consideration was allocated to: award transportation and all other deliverables. Upon the adoption of ASU 2009-13, consideration is being allocated to each of the four deliverables based on the relative selling price of each deliverable. | |||||||
Significant management judgment was used to estimate the selling price of each of the deliverables. The objective was to determine the price at which we would transact a sale if the product or service was sold on a stand-alone basis. We determined our best estimate of selling price by considering multiple inputs and methods including, but not limited to, the estimated selling price of comparable travel, discounted cash flows, brand value, published selling prices, number of miles awarded and the number of miles redeemed. The Company estimated the selling prices and volumes over the term of the Agreement in order to determine the allocation of proceeds to each of the multiple deliverables. | |||||||
The Company records passenger revenue related to air transportation and certificates for discounted companion travel when the transportation is delivered. The other elements are recognized as Other - net revenue when earned. | |||||||
Absent a new or material modification to an existing agreement, other non-airline partners who participate in the loyalty program to which we sell miles remain subject to our historical residual accounting method and are immaterial to the overall program. | |||||||
Special mileage plan revenue | |||||||
The Company followed the rollforward transition approach of ASU 2009-13, which required that the Company's existing deferred revenue balance be adjusted to reflect the value, on a relative selling price basis, of any undelivered element remaining at the date of contract modification as if the Company had been applying ASU 2009-13 since inception of the Agreement. The relative selling price of the undelivered element (air transportation) is lower than the rate at which it had been deferred under the previous contract and the Company recorded a one-time, non-cash adjustment to decrease frequent flyer deferred revenue and increase Special mileage plan revenue. The impact on earnings are as follows: | |||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||
Special mileage plan revenue (in millions) | $ | 192 | $ | 192 | |||
Per basic share | $ | 1.72 | $ | 1.71 | |||
Per diluted share | $ | 1.7 | $ | 1.69 | |||
During the third quarter of 2013, as part of the Company's ongoing evaluation of Mileage Plan program assumptions, the Company performed a statistical analysis on historical data, which refined its estimate of the amount of breakage in the mileage population. This new data enables the Company to better identify historical differences between certain of its mileage breakage estimates and the amounts that have actually been experienced. As a result, the Company increased its estimate of the number of frequent flyer miles expected to expire unused from 12.0% to 17.4%. Included in the Special mileage plan revenue item above is $44 million of additional revenue related to the effect of the change on the deferred revenue balance as of July 1, 2013. |
CASH_CASH_EQUIVALENTS_AND_MARK
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ' | |||||||||||||||
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES | ' | |||||||||||||||
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES | ||||||||||||||||
Components for cash, cash equivalents and marketable securities (in millions): | ||||||||||||||||
September 30, 2013 | Cost Basis | Unrealized | Unrealized Losses | Fair Value | ||||||||||||
Gains | ||||||||||||||||
Cash | $ | 3 | $ | — | $ | — | $ | 3 | ||||||||
Cash equivalents | 38 | — | — | 38 | ||||||||||||
Cash and cash equivalents | 41 | — | — | 41 | ||||||||||||
U.S. government and agency securities | 393 | 1 | (1 | ) | 393 | |||||||||||
Foreign government bonds | 24 | — | — | 24 | ||||||||||||
Asset-back securities | 129 | — | — | 129 | ||||||||||||
Mortgage-back securities | 134 | — | (1 | ) | 133 | |||||||||||
Corporate notes and bonds | 693 | 5 | (3 | ) | 695 | |||||||||||
Municipal securities | 30 | — | — | 30 | ||||||||||||
Marketable securities | 1,403 | 6 | (5 | ) | 1,404 | |||||||||||
Total | $ | 1,444 | $ | 6 | $ | (5 | ) | $ | 1,445 | |||||||
December 31, 2012 | Cost Basis | Unrealized | Unrealized Losses | Fair Value | ||||||||||||
Gains | ||||||||||||||||
Cash | $ | 28 | $ | — | $ | — | $ | 28 | ||||||||
Cash equivalents | 94 | — | — | 94 | ||||||||||||
Cash and cash equivalents | 122 | — | — | 122 | ||||||||||||
U.S. government and agency securities | 271 | 1 | — | 272 | ||||||||||||
Foreign government bonds | 50 | 1 | — | 51 | ||||||||||||
Asset-back securities | 61 | 1 | — | 62 | ||||||||||||
Mortgage-back securities | 137 | 1 | (1 | ) | 137 | |||||||||||
Corporate notes and bonds | 577 | 8 | — | 585 | ||||||||||||
Municipal securities | 23 | — | — | 23 | ||||||||||||
Marketable securities | 1,119 | 12 | (1 | ) | 1,130 | |||||||||||
Total | $ | 1,241 | $ | 12 | $ | (1 | ) | $ | 1,252 | |||||||
Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of September 30, 2013. | ||||||||||||||||
Activity for marketable securities (in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Proceeds from sales and maturities | $ | 247 | $ | 271 | $ | 712 | $ | 701 | ||||||||
Gross realized gains | — | 2 | 3 | 6 | ||||||||||||
Gross realized losses | — | — | (1 | ) | (1 | ) | ||||||||||
Marketable securities maturities (in millions): | ||||||||||||||||
September 30, 2013 | Cost Basis | Fair Value | ||||||||||||||
Due in one year or less | $ | 198 | $ | 199 | ||||||||||||
Due after one year through five years | 1,187 | 1,187 | ||||||||||||||
Due after five years through 10 years | 18 | 18 | ||||||||||||||
Total | $ | 1,403 | $ | 1,404 | ||||||||||||
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
DERIVATIVE INSTRUMENTS | ' | |||||||||||||||
DERIVATIVE INSTRUMENTS | ||||||||||||||||
Fuel Hedge Contracts | ||||||||||||||||
The Company’s operations are inherently dependent upon the price and availability of aircraft fuel. To manage economic risks associated with fluctuations in aircraft fuel prices, the Company periodically enters into call options for crude oil and swap agreements for jet fuel refining margins. | ||||||||||||||||
As of September 30, 2013, the Company had fuel hedge contracts outstanding covering 360 million gallons of crude oil that will be settled from October 2013 to March 2016. Refer to the contractual obligations and commitments section of Item 2 for further information. | ||||||||||||||||
Interest Rate Swap Agreements | ||||||||||||||||
The Company has interest rate swap agreements with a third party designed to hedge the volatility of the underlying variable interest rate in the Company's aircraft lease agreements for six Boeing 737-800 aircraft. The agreements stipulate that the Company pay a fixed interest rate over the term of the contract and receive a floating interest rate. All significant terms of the swap agreement match the terms of the lease agreements, including interest-rate index, rate reset dates, termination dates and underlying notional values. The agreements expire from February 2020 through March 2021 to coincide with the lease termination dates. | ||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||
Fair values of derivative instruments on the consolidated balance sheet (in millions): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Derivative Instruments Not Designated as Hedges | ||||||||||||||||
Fuel hedge contracts | ||||||||||||||||
Fuel hedge contracts, current assets | $ | 20 | $ | 26 | ||||||||||||
Fuel hedge contracts, noncurrent assets | 9 | 39 | ||||||||||||||
Fuel hedge contracts, current liabilities | (1 | ) | (1 | ) | ||||||||||||
Derivative Instruments Designated as Hedges | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
Other accrued liabilities | (6 | ) | (6 | ) | ||||||||||||
Other liabilities | (13 | ) | (27 | ) | ||||||||||||
Losses in accumulated other comprehensive loss (AOCL) | (19 | ) | (33 | ) | ||||||||||||
The net cash received (paid) for new positions and settlements was $6 million and $4 million during the three months ended September 30, 2013 and 2012, respectively. The net cash received (paid) for new positions and settlements was $(3) million and $(13) million during the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
Pretax effect of derivative instruments on earnings (in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Derivative Instruments Not Designated as Hedges | ||||||||||||||||
Fuel hedge contracts | ||||||||||||||||
Gains (losses) recognized in aircraft fuel expense | $ | 10 | $ | 22 | $ | (39 | ) | $ | (41 | ) | ||||||
Derivative Instruments Designated as Hedges | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
Losses recognized in aircraft rent | (1 | ) | (2 | ) | (4 | ) | (4 | ) | ||||||||
Gains (losses) recognized in other comprehensive income (OCI) | (1 | ) | (4 | ) | 9 | (9 | ) | |||||||||
The amounts shown as recognized in aircraft rent for cash flow hedges (interest rate swaps) represent the realized losses transferred out of AOCL to aircraft rent. The amounts shown as recognized in OCI are prior to the losses recognized in aircraft rent during the period. The Company expects $6 million to be reclassified from OCI to aircraft rent within the next twelve months. | ||||||||||||||||
Credit Risk and Collateral | ||||||||||||||||
The Company is exposed to credit losses in the event of nonperformance by counterparties to these derivative instruments. To mitigate exposure, the Company periodically reviews the counterparties' nonperformance by monitoring the absolute exposure levels and credit ratings. The Company maintains security agreements with a number of its counterparties which may require the Company to post collateral if the fair value of the selected derivative instruments fall below specified mark-to-market thresholds. The posted collateral does not offset the fair value of the derivative instruments and is included in "Prepaid expenses and other current assets" on the consolidated balance sheet. | ||||||||||||||||
The Company posted collateral of $8 million and $15 million as of September 30, 2013 and December 31, 2012, respectively. The collateral was provided to one counterparty associated with the net liability position of the interest rate swap agreements, offset by the net asset position of the fuel hedge contracts under a master netting arrangement. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||
Fair Value of Financial Instruments on a Recurring Basis | ||||||||||||
Fair values of financial instruments on the consolidated balance sheet (in millions): | ||||||||||||
September 30, 2013 | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Marketable securities | ||||||||||||
U.S. government and agency securities | $ | 393 | $ | — | $ | 393 | ||||||
Foreign government bonds | — | 24 | 24 | |||||||||
Asset-back securities | — | 129 | 129 | |||||||||
Mortgage-back securities | — | 133 | 133 | |||||||||
Corporate notes and bonds | — | 695 | 695 | |||||||||
Municipal securities | — | 30 | 30 | |||||||||
Derivative instruments | ||||||||||||
Call options | — | 29 | 29 | |||||||||
Liabilities | ||||||||||||
Derivative instruments | ||||||||||||
Fuel hedge contracts | — | (1 | ) | (1 | ) | |||||||
Interest rate swap agreements | — | (19 | ) | (19 | ) | |||||||
December 31, 2012 | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Marketable securities | ||||||||||||
U.S. government and agency securities | $ | 272 | $ | — | $ | 272 | ||||||
Foreign government bonds | — | 51 | 51 | |||||||||
Asset-back securities | — | 62 | 62 | |||||||||
Mortgage-back securities | — | 137 | 137 | |||||||||
Corporate notes and bonds | — | 585 | 585 | |||||||||
Municipal securities | — | 23 | 23 | |||||||||
Derivative instruments | ||||||||||||
Call options | — | 65 | 65 | |||||||||
Liabilities | ||||||||||||
Derivative instruments | ||||||||||||
Fuel hedge contracts | — | (1 | ) | (1 | ) | |||||||
Interest rate swap agreements | — | (33 | ) | (33 | ) | |||||||
The Company uses the market and income approach to determine the fair value of marketable securities. U.S. government securities are Level 1 as the fair value is based on quoted prices in active markets. Foreign government's bonds, asset-back securities, mortgage-back securities, corporate notes and bonds, and municipal securities are Level 2 as the fair value is based on industry standard valuation models that are calculated based on observable inputs such as quoted interest rates, yield curves, credit ratings of the security and other observable market information. | ||||||||||||
The Company uses the market approach and the income approach to determine the fair value of derivative instruments. Fuel hedge contracts that are not traded on a public exchange are Level 2 as the fair value is primarily based on inputs which are readily available in active markets or can be derived from information available in active markets. The fair value for call options is determined utilizing an option pricing model based on inputs that are readily available in active markets, or can be derived from information available in active markets. In addition, the fair value considers the exposure to credit losses in the event of nonperformance by counterparties. The fair value of jet fuel refining margins (fuel hedge contracts) is determined based on inputs readily available in public markets and provided by brokers who regularly trade these contracts. Interest rate swap agreements are Level 2 as the fair value of these contracts is determined based on the difference between the fixed interest rate in the agreements and the observable LIBOR-based forward interest rates at period end, multiplied by the total notional value. | ||||||||||||
The Company has no financial assets that are measured at fair value on a nonrecurring basis at September 30, 2013. | ||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||
The Company used the following methods and assumptions to determine the fair value of financial instruments that are not recognized at fair value as described below. | ||||||||||||
Cash and Cash Equivalents: Carried at amortized cost, which approximates fair value. | ||||||||||||
Debt: The carrying amount of the Company's variable-rate debt approximates fair values. For fixed-rate debt, the Company uses the income approach to determine the estimated fair value, by using discounted cash flow using borrowing rates for comparable debt over the weighted life of the outstanding debt. The estimated fair value of the fixed-rate debt is Level 3 as certain inputs used are unobservable. | ||||||||||||
Fixed-rate debt that is not carried at fair value on the consolidated balance sheet and the estimated fair value of long-term fixed-rate debt (in millions): | ||||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Carrying amount | $ | 721 | $ | 844 | ||||||||
Fair value | 781 | 915 | ||||||||||
MILEAGE_PLAN
MILEAGE PLAN | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
MILEAGE PLAN [Abstract] | ' | |||||||||||||||
Frequent Flyer Plan Disclosure [Text Block] | ' | |||||||||||||||
MILEAGE PLAN | ||||||||||||||||
Refer to Note 2 for items impacting comparability between periods due to the application of ASU 2009-13. Alaska's Mileage Plan liabilities and deferrals on the consolidated balance sheets (in millions): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Current Liabilities: | ||||||||||||||||
Other accrued liabilities | $ | 342 | $ | 285 | ||||||||||||
Other Liabilities and Credits: | ||||||||||||||||
Deferred revenue | 283 | 428 | ||||||||||||||
Other liabilities | 17 | 17 | ||||||||||||||
Total | $ | 642 | $ | 730 | ||||||||||||
Alaska's Mileage Plan revenue included in the consolidated statements of operations (in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Passenger revenues | $ | 54 | $ | 47 | $ | 150 | $ | 137 | ||||||||
Other - net revenues | 74 | 55 | 184 | 158 | ||||||||||||
Special mileage plan revenue | 192 | — | 192 | — | ||||||||||||
Total | $ | 320 | $ | 102 | $ | 526 | $ | 295 | ||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
LONG-TERM DEBT | ' | |||||||
LONG-TERM DEBT | ||||||||
Long-term debt obligations on the consolidated balance sheet (in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Fixed-rate notes payable due through 2024 | $ | 721 | $ | 844 | ||||
Variable-rate notes payable due through 2023 | 172 | 188 | ||||||
Long-term debt | 893 | 1,032 | ||||||
Less current portion | 111 | 161 | ||||||
Total | $ | 782 | $ | 871 | ||||
Weighted-average fixed-interest rate | 5.7 | % | 5.8 | % | ||||
Weighted-average variable-interest rate | 1.7 | % | 2 | % | ||||
During the nine months ended September 30, 2013, the Company made debt payments of $139 million. | ||||||||
At September 30, 2013, long-term debt principal payments for the next five years and thereafter are as follows (in millions): | ||||||||
Total | ||||||||
Remainder of 2013 | $ | 22 | ||||||
2014 | 117 | |||||||
2015 | 113 | |||||||
2016 | 111 | |||||||
2017 | 116 | |||||||
Thereafter | 414 | |||||||
Total | $ | 893 | ||||||
Bank Lines of Credit | ||||||||
The Company has two $100 million credit facilities. Both facilities have variable interest rates based on LIBOR plus a specified margin. One of the $100 million facilities, which expires in August 2015, is secured by aircraft. The other $100 million facility, which expires in March 2017, is secured by certain accounts receivable, spare engines, spare parts and ground service equipment. The Company has no immediate plans to borrow using either of these facilities. These facilities have a requirement to maintain a minimum unrestricted cash and marketable securities balance of $500 million. The Company is in compliance with this covenant at September 30, 2013. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ||||||||||||||||||||||||
Net periodic benefit costs recognized included the following components for the three months ended September 30, 2013 (in millions): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
Qualified | Nonqualified | Postretirement Medical | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 11 | $ | 9 | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 19 | 18 | — | 1 | 1 | 2 | ||||||||||||||||||
Expected return on assets | (27 | ) | (23 | ) | — | — | — | — | ||||||||||||||||
Amortization of prior service cost | (1 | ) | — | — | — | — | — | |||||||||||||||||
Recognized actuarial loss | 11 | 10 | — | — | — | — | ||||||||||||||||||
Total | $ | 13 | $ | 14 | $ | — | $ | 1 | $ | 2 | $ | 3 | ||||||||||||
Net periodic benefit costs recognized included the following components for the nine months ended September 30, 2013 (in millions): | ||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
Qualified | Nonqualified | Postretirement Medical | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 34 | $ | 29 | $ | 1 | $ | 1 | $ | 3 | $ | 3 | ||||||||||||
Interest cost | 55 | 55 | 1 | 2 | 3 | 5 | ||||||||||||||||||
Expected return on assets | (82 | ) | (70 | ) | — | — | — | — | ||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | — | — | — | — | ||||||||||||||||
Recognized actuarial loss | 32 | 30 | — | — | — | — | ||||||||||||||||||
Total | $ | 38 | $ | 43 | $ | 2 | $ | 3 | $ | 6 | $ | 8 | ||||||||||||
COMMITMENTS
COMMITMENTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
COMMITMENTS | ' | |||||||||||||||||||
COMMITMENTS | ||||||||||||||||||||
Future minimum fixed payments for commitments (in millions): | ||||||||||||||||||||
September 30, 2013 | Aircraft Leases | Facility Leases | Aircraft Commitments | Capacity Purchase Agreements | Engine Maintenance | |||||||||||||||
Remainder of 2013 | $ | 17 | $ | 12 | $ | 117 | $ | 9 | $ | 3 | ||||||||||
2014 | 127 | 45 | 448 | 38 | 10 | |||||||||||||||
2015 | 105 | 35 | 328 | 31 | 11 | |||||||||||||||
2016 | 82 | 27 | 279 | 18 | — | |||||||||||||||
2017 | 51 | 21 | 338 | 19 | — | |||||||||||||||
Thereafter | 79 | 148 | 1,450 | 8 | — | |||||||||||||||
Total | $ | 461 | $ | 288 | $ | 2,960 | $ | 123 | $ | 24 | ||||||||||
Lease Commitments | ||||||||||||||||||||
At September 30, 2013, the Company had lease contracts for 63 aircraft, which have remaining noncancelable lease terms ranging from 2013 to 2021. Of these aircraft, 14 are non-operating (i.e. not in the Company's fleet) with 11 that are subleased to third-party carriers. The majority of airport and terminal facilities are also leased. Rent expense was $75 million and $69 million for the three months ended September 30, 2013 and 2012, respectively and $228 million and $207 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
During the third quarter, the Company had three subleased Bombardier CRJ-700 aircrafts returned. In connection with these aircraft the Company incurred costs to deliver the aircraft to SkyWest Airlines, whom will sublease and operate the aircraft under a Capacity Purchase Agreement (CPA). | ||||||||||||||||||||
Aircraft Commitments | ||||||||||||||||||||
As of September 30, 2013, the Company is committed to purchasing 72 B737 aircraft (35 B737-900ER aircraft and 37 B737 MAX aircraft) and three Q400 aircraft, with deliveries in 2013 through 2022. In addition, the Company has options to purchase an additional 64 B737 aircraft and seven Q400 aircraft. | ||||||||||||||||||||
Capacity Purchase Agreements (CPAs) | ||||||||||||||||||||
At September 30, 2013, Alaska had CPAs with three carriers, including the Company's wholly-owned subsidiary, Horizon. Horizon sells 100% of its capacity to Alaska under a CPA, which is eliminated upon consolidation. In addition, Alaska has CPAs with SkyWest Airlines, Inc. (SkyWest) to fly certain routes and Peninsula Airways, Inc. (PenAir) to fly in the state of Alaska. Under these agreements, Alaska pays the third-party carriers an amount which is based on a determination of their cost of operating those flights and other factors. The costs paid by Alaska to Horizon are based on similar data and are intended to approximate market rates for those services. Future payments (excluding Horizon) are based on contractually required minimum levels of flying by the third-party carriers, which could differ materially due to variable payments based on actual levels of flying and certain costs associated with operating flights such as fuel. | ||||||||||||||||||||
Engine Maintenance | ||||||||||||||||||||
The Company has a power-by-the-hour (PBH) maintenance agreement for some of the B737-700 and B737-900 engines. This agreement transfers risk to third-party service provider and fixes the amount the Company pays per flight hour in exchange for maintenance and repairs under a predefined maintenance program. Future payments are based on minimum flight hours. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ' | |||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Common Stock Repurchase | ||||||||||||||||||||||||||||
In September 2012, the Board of Directors authorized a $250 million share repurchase program, which does not have an expiration date, but is expected to be completed by the end of December 2014. In February 2012, the Board of Directors authorized a $50 million share repurchase program, which was completed in September 2012. In June 2011, the Board of Directors authorized a $50 million share repurchase program, which was completed in January 2012. | ||||||||||||||||||||||||||||
Share repurchase activity (in millions, except share amounts): | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||
2012 Repurchase Program - $250 million | 537,008 | $ | 32 | — | $ | — | 1,454,790 | $ | 83 | — | $ | — | ||||||||||||||||
2012 Repurchase Program - $50 million | — | — | 728,101 | 26 | — | — | 1,437,101 | 50 | ||||||||||||||||||||
2011 Repurchase Program - $50 million | — | — | — | — | — | — | 46,340 | 2 | ||||||||||||||||||||
Total | 537,008 | $ | 32 | 728,101 | $ | 26 | 1,454,790 | $ | 83 | 1,483,441 | $ | 52 | ||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||
Components of accumulated other comprehensive income (loss) (in millions): | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Marketable securities | $ | 1 | $ | 7 | ||||||||||||||||||||||||
Employee benefit plans | (403 | ) | (423 | ) | ||||||||||||||||||||||||
Interest rate derivatives | (12 | ) | (20 | ) | ||||||||||||||||||||||||
Total | $ | (414 | ) | $ | (436 | ) | ||||||||||||||||||||||
Earnings Per Share (EPS) | ||||||||||||||||||||||||||||
Diluted EPS is calculated by dividing net income by the average common shares outstanding plus additional common shares that would have been outstanding assuming the exercise of in-the-money stock options and restricted stock units, using the treasury-stock method. For the three and nine months ended September 30, 2013 and 2012, anti-dilutive shares excluded from the calculation of EPS were not material. |
OPERATING_SEGMENT_INFORMATION
OPERATING SEGMENT INFORMATION | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Operating Segment Information | ' | |||||||||||||||||||||||||||
OPERATING SEGMENT INFORMATION | ||||||||||||||||||||||||||||
Air Group has two operating airlines - Alaska Airlines and Horizon Air. Each is a regulated airline with separate management teams primarily in operational roles. Horizon sells 100% of its capacity to Alaska under a CPA, which is eliminated upon consolidation. In addition, Alaska has CPAs with SkyWest to fly certain routes and PenAir to fly in the state of Alaska. The Company attributes revenue between Mainline and Regional based on the coupon fare in effect on the date of issuance relative to the origin and destination of each flight segment. To manage the two operating airlines and the revenues and expenses associated with the CPAs, management views the business in three operating segments. | ||||||||||||||||||||||||||||
Alaska Mainline - Flying Boeing 737 jets and all associated revenues and costs. | ||||||||||||||||||||||||||||
Alaska Regional - Alaska's CPAs with Horizon, SkyWest and Penair. In this segment, Alaska Regional records actual on-board passenger revenue, less costs such as fuel, distribution costs, and payments made to Horizon, SkyWest and PenAir under the respective CPAs. Additionally, Alaska Regional includes an allocation of corporate overhead such as IT, finance, and other administrative costs incurred by Alaska and on behalf of Horizon. | ||||||||||||||||||||||||||||
Horizon - Horizon operates turboprop Q400 aircraft. All of Horizon's capacity is sold to Alaska under a CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs, and maintenance costs. The results of Horizon's operations are eliminated upon consolidation. | ||||||||||||||||||||||||||||
Additionally, the following table reports “Air Group adjusted,” which is not a measure determined in accordance with GAAP. The Company's chief operating decision-makers and others in management use this measure to evaluate operational performance and determine resources allocations. Adjustments are further explained below in reconciling to consolidated GAAP results. Operating segment information is as follows (in millions): | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 960 | $ | — | $ | — | $ | — | $ | 960 | $ | — | $ | 960 | ||||||||||||||
Regional | 208 | — | — | 208 | — | 208 | ||||||||||||||||||||||
Total passenger revenues | 960 | 208 | — | — | 1,168 | — | 1,168 | |||||||||||||||||||||
CPA revenues | — | — | 88 | (88 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 31 | 1 | — | — | 32 | — | 32 | |||||||||||||||||||||
Other - net | 145 | 19 | 1 | — | 165 | 192 | 357 | |||||||||||||||||||||
Total operating revenues | 1,136 | 228 | 89 | (88 | ) | 1,365 | 192 | 1,557 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 588 | 144 | 80 | (88 | ) | 724 | — | 724 | ||||||||||||||||||||
Economic fuel | 337 | 46 | — | — | 383 | (20 | ) | 363 | ||||||||||||||||||||
Total operating expenses | 925 | 190 | 80 | (88 | ) | 1,107 | (20 | ) | 1,087 | |||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 5 | — | — | — | 5 | — | 5 | |||||||||||||||||||||
Interest expense | (9 | ) | — | (4 | ) | — | (13 | ) | — | (13 | ) | |||||||||||||||||
Other | 8 | (8 | ) | 1 | — | 1 | — | 1 | ||||||||||||||||||||
4 | (8 | ) | (3 | ) | — | (7 | ) | — | (7 | ) | ||||||||||||||||||
Income (loss) before income tax | $ | 215 | $ | 30 | $ | 6 | $ | — | $ | 251 | $ | 212 | $ | 463 | ||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 905 | $ | — | $ | — | $ | — | $ | 905 | $ | — | $ | 905 | ||||||||||||||
Regional | — | 198 | — | — | 198 | — | 198 | |||||||||||||||||||||
Total passenger revenues | 905 | 198 | — | — | 1,103 | — | 1,103 | |||||||||||||||||||||
CPA revenues | — | — | 96 | (96 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 28 | 2 | — | — | 30 | — | 30 | |||||||||||||||||||||
Other - net | 121 | 16 | 2 | — | 139 | — | 139 | |||||||||||||||||||||
Total operating revenues | 1,054 | 216 | 98 | (96 | ) | 1,272 | — | 1,272 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 532 | 145 | 86 | (97 | ) | 666 | — | 666 | ||||||||||||||||||||
Economic fuel | 312 | 46 | — | — | 358 | (21 | ) | 337 | ||||||||||||||||||||
Total operating expenses | 844 | 191 | 86 | (97 | ) | 1,024 | (21 | ) | 1,003 | |||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 5 | — | — | — | 5 | — | 5 | |||||||||||||||||||||
Interest expense | (11 | ) | — | (4 | ) | — | (15 | ) | — | (15 | ) | |||||||||||||||||
Other | 6 | — | — | — | 6 | — | 6 | |||||||||||||||||||||
— | — | (4 | ) | — | (4 | ) | — | (4 | ) | |||||||||||||||||||
Income (loss) before income tax | $ | 210 | $ | 25 | $ | 8 | $ | 1 | $ | 244 | $ | 21 | $ | 265 | ||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 2,651 | $ | — | $ | — | $ | — | $ | 2,651 | $ | — | $ | 2,651 | ||||||||||||||
Regional | — | 582 | — | — | 582 | — | 582 | |||||||||||||||||||||
Total passenger revenues | 2,651 | 582 | — | — | 3,233 | — | 3,233 | |||||||||||||||||||||
CPA revenues | — | — | 274 | (274 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 85 | 3 | — | — | 88 | — | 88 | |||||||||||||||||||||
Other - net | 380 | 49 | 4 | — | 433 | 192 | 625 | |||||||||||||||||||||
Total operating revenues | 3,116 | 634 | 278 | (274 | ) | 3,754 | 192 | 3,946 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 1,704 | 440 | 253 | (274 | ) | 2,123 | — | 2,123 | ||||||||||||||||||||
Economic fuel | 987 | 135 | — | — | 1,122 | (7 | ) | 1,115 | ||||||||||||||||||||
Total operating expenses | 2,691 | 575 | 253 | (274 | ) | 3,245 | (7 | ) | 3,238 | |||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 14 | — | — | — | 14 | — | 14 | |||||||||||||||||||||
Interest expense | (30 | ) | — | (10 | ) | (2 | ) | (42 | ) | — | (42 | ) | ||||||||||||||||
Other | 19 | (9 | ) | 1 | — | 11 | — | 11 | ||||||||||||||||||||
3 | (9 | ) | (9 | ) | (2 | ) | (17 | ) | — | (17 | ) | |||||||||||||||||
Income (loss) before income tax | $ | 428 | $ | 50 | $ | 16 | $ | (2 | ) | $ | 492 | $ | 199 | $ | 691 | |||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 2,491 | $ | — | $ | — | $ | — | $ | 2,491 | $ | — | $ | 2,491 | ||||||||||||||
Regional | — | 559 | — | — | 559 | — | 559 | |||||||||||||||||||||
Total passenger revenues | 2,491 | 559 | — | — | 3,050 | — | 3,050 | |||||||||||||||||||||
CPA revenues | — | — | 272 | (272 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 82 | 3 | — | — | 85 | — | 85 | |||||||||||||||||||||
Other - net | 339 | 45 | 6 | — | 390 | — | 390 | |||||||||||||||||||||
Total operating revenues | 2,912 | 607 | 278 | (272 | ) | 3,525 | — | 3,525 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 1,583 | 421 | 248 | (272 | ) | 1,980 | — | 1,980 | ||||||||||||||||||||
Economic fuel | 923 | 135 | — | — | 1,058 | 29 | 1,087 | |||||||||||||||||||||
Total operating expenses | 2,506 | 556 | 248 | (272 | ) | 3,038 | 29 | 3,067 | ||||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 15 | — | — | — | 15 | — | 15 | |||||||||||||||||||||
Interest expense | (37 | ) | — | (12 | ) | — | (49 | ) | — | (49 | ) | |||||||||||||||||
Other | 17 | — | 1 | — | 18 | — | 18 | |||||||||||||||||||||
(5 | ) | — | (11 | ) | — | (16 | ) | — | (16 | ) | ||||||||||||||||||
Income (loss) before income tax | $ | 401 | $ | 51 | $ | 19 | $ | — | $ | 471 | $ | (29 | ) | $ | 442 | |||||||||||||
(a) | The adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocations and does not include certain charges. | |||||||||||||||||||||||||||
(b) | Includes accounting adjustments related to Special mileage plan revenue and mark-to-market fuel-hedge accounting charges. | |||||||||||||||||||||||||||
Total assets were as follows (in millions): | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Alaska(a) | $ | 5,731 | $ | 5,177 | ||||||||||||||||||||||||
Horizon | 850 | 823 | ||||||||||||||||||||||||||
Parent company | 2,403 | 1,832 | ||||||||||||||||||||||||||
Elimination of inter-company accounts | (3,122 | ) | (2,327 | ) | ||||||||||||||||||||||||
Consolidated | $ | 5,862 | $ | 5,505 | ||||||||||||||||||||||||
(a) | There are no assets associated with purchased capacity flying at Alaska. |
GENERAL_AND_SUMMARY_OF_SIGNIFI1
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Organization and Basis of Presentation | |
The interim condensed consolidated financial statements include the accounts of Alaska Air Group, Inc. (Air Group or the Company) and its subsidiaries, Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon), through which the Company conducts substantially all of its operations. All intercompany balances and transactions have been eliminated. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. | |
The Company followed the rollforward transition approach of ASU 2009-13, which required that the Company's existing deferred revenue balance be adjusted to reflect the value, on a relative selling price basis, of any undelivered element remaining at the date of contract modification as if the Company had been applying ASU 2009-13 since inception of the Agreement. |
NEW_ACCOUNTING_PRONOUNCEMENT_N1
NEW ACCOUNTING PRONOUNCEMENT NEW ACCOUNTING PRONOUNCEMENT (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Organization and Basis of Presentation | |
The interim condensed consolidated financial statements include the accounts of Alaska Air Group, Inc. (Air Group or the Company) and its subsidiaries, Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon), through which the Company conducts substantially all of its operations. All intercompany balances and transactions have been eliminated. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. | |
The Company followed the rollforward transition approach of ASU 2009-13, which required that the Company's existing deferred revenue balance be adjusted to reflect the value, on a relative selling price basis, of any undelivered element remaining at the date of contract modification as if the Company had been applying ASU 2009-13 since inception of the Agreement. |
NEW_ACCOUNTING_PRONOUNCEMENT_N2
NEW ACCOUNTING PRONOUNCEMENT NEW ACCOUNTING PRONOUNCEMENT (TABLES) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Prospective Adoption of New Accounting Pronouncements [Abstract] | ' | ||||||
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block] | ' | ||||||
The relative selling price of the undelivered element (air transportation) is lower than the rate at which it had been deferred under the previous contract and the Company recorded a one-time, non-cash adjustment to decrease frequent flyer deferred revenue and increase Special mileage plan revenue. The impact on earnings are as follows: | |||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||
Special mileage plan revenue (in millions) | $ | 192 | $ | 192 | |||
Per basic share | $ | 1.72 | $ | 1.71 | |||
Per diluted share | $ | 1.7 | $ | 1.69 | |||
CASH_CASH_EQUIVALENTS_AND_MARK1
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES (TABLES) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ' | |||||||||||||||
Schedule of Cash, Cash Equivalents and Short-term Investments [Table Text Block] | ' | |||||||||||||||
Components for cash, cash equivalents and marketable securities (in millions): | ||||||||||||||||
September 30, 2013 | Cost Basis | Unrealized | Unrealized Losses | Fair Value | ||||||||||||
Gains | ||||||||||||||||
Cash | $ | 3 | $ | — | $ | — | $ | 3 | ||||||||
Cash equivalents | 38 | — | — | 38 | ||||||||||||
Cash and cash equivalents | 41 | — | — | 41 | ||||||||||||
U.S. government and agency securities | 393 | 1 | (1 | ) | 393 | |||||||||||
Foreign government bonds | 24 | — | — | 24 | ||||||||||||
Asset-back securities | 129 | — | — | 129 | ||||||||||||
Mortgage-back securities | 134 | — | (1 | ) | 133 | |||||||||||
Corporate notes and bonds | 693 | 5 | (3 | ) | 695 | |||||||||||
Municipal securities | 30 | — | — | 30 | ||||||||||||
Marketable securities | 1,403 | 6 | (5 | ) | 1,404 | |||||||||||
Total | $ | 1,444 | $ | 6 | $ | (5 | ) | $ | 1,445 | |||||||
December 31, 2012 | Cost Basis | Unrealized | Unrealized Losses | Fair Value | ||||||||||||
Gains | ||||||||||||||||
Cash | $ | 28 | $ | — | $ | — | $ | 28 | ||||||||
Cash equivalents | 94 | — | — | 94 | ||||||||||||
Cash and cash equivalents | 122 | — | — | 122 | ||||||||||||
U.S. government and agency securities | 271 | 1 | — | 272 | ||||||||||||
Foreign government bonds | 50 | 1 | — | 51 | ||||||||||||
Asset-back securities | 61 | 1 | — | 62 | ||||||||||||
Mortgage-back securities | 137 | 1 | (1 | ) | 137 | |||||||||||
Corporate notes and bonds | 577 | 8 | — | 585 | ||||||||||||
Municipal securities | 23 | — | — | 23 | ||||||||||||
Marketable securities | 1,119 | 12 | (1 | ) | 1,130 | |||||||||||
Total | $ | 1,241 | $ | 12 | $ | (1 | ) | $ | 1,252 | |||||||
Schedule of Realized Gain (Loss) [Table Text Block] | ' | |||||||||||||||
Activity for marketable securities (in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Proceeds from sales and maturities | $ | 247 | $ | 271 | $ | 712 | $ | 701 | ||||||||
Gross realized gains | — | 2 | 3 | 6 | ||||||||||||
Gross realized losses | — | — | (1 | ) | (1 | ) | ||||||||||
Schedule of Debt Investment Maturities [Table Text Block] | ' | |||||||||||||||
Marketable securities maturities (in millions): | ||||||||||||||||
September 30, 2013 | Cost Basis | Fair Value | ||||||||||||||
Due in one year or less | $ | 198 | $ | 199 | ||||||||||||
Due after one year through five years | 1,187 | 1,187 | ||||||||||||||
Due after five years through 10 years | 18 | 18 | ||||||||||||||
Total | $ | 1,403 | $ | 1,404 | ||||||||||||
DERIVATIVE_INSTRUMENTS_TABLES
DERIVATIVE INSTRUMENTS (TABLES) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||||||
Fair values of derivative instruments on the consolidated balance sheet (in millions): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Derivative Instruments Not Designated as Hedges | ||||||||||||||||
Fuel hedge contracts | ||||||||||||||||
Fuel hedge contracts, current assets | $ | 20 | $ | 26 | ||||||||||||
Fuel hedge contracts, noncurrent assets | 9 | 39 | ||||||||||||||
Fuel hedge contracts, current liabilities | (1 | ) | (1 | ) | ||||||||||||
Derivative Instruments Designated as Hedges | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
Other accrued liabilities | (6 | ) | (6 | ) | ||||||||||||
Other liabilities | (13 | ) | (27 | ) | ||||||||||||
Losses in accumulated other comprehensive loss (AOCL) | (19 | ) | (33 | ) | ||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | |||||||||||||||
Pretax effect of derivative instruments on earnings (in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Derivative Instruments Not Designated as Hedges | ||||||||||||||||
Fuel hedge contracts | ||||||||||||||||
Gains (losses) recognized in aircraft fuel expense | $ | 10 | $ | 22 | $ | (39 | ) | $ | (41 | ) | ||||||
Derivative Instruments Designated as Hedges | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
Losses recognized in aircraft rent | (1 | ) | (2 | ) | (4 | ) | (4 | ) | ||||||||
Gains (losses) recognized in other comprehensive income (OCI) | (1 | ) | (4 | ) | 9 | (9 | ) | |||||||||
FAIR_VALUE_MEASUREMENTS_TABLES
FAIR VALUE MEASUREMENTS (TABLES) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | ' | |||||||||||
Fair values of financial instruments on the consolidated balance sheet (in millions): | ||||||||||||
September 30, 2013 | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Marketable securities | ||||||||||||
U.S. government and agency securities | $ | 393 | $ | — | $ | 393 | ||||||
Foreign government bonds | — | 24 | 24 | |||||||||
Asset-back securities | — | 129 | 129 | |||||||||
Mortgage-back securities | — | 133 | 133 | |||||||||
Corporate notes and bonds | — | 695 | 695 | |||||||||
Municipal securities | — | 30 | 30 | |||||||||
Derivative instruments | ||||||||||||
Call options | — | 29 | 29 | |||||||||
Liabilities | ||||||||||||
Derivative instruments | ||||||||||||
Fuel hedge contracts | — | (1 | ) | (1 | ) | |||||||
Interest rate swap agreements | — | (19 | ) | (19 | ) | |||||||
December 31, 2012 | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Marketable securities | ||||||||||||
U.S. government and agency securities | $ | 272 | $ | — | $ | 272 | ||||||
Foreign government bonds | — | 51 | 51 | |||||||||
Asset-back securities | — | 62 | 62 | |||||||||
Mortgage-back securities | — | 137 | 137 | |||||||||
Corporate notes and bonds | — | 585 | 585 | |||||||||
Municipal securities | — | 23 | 23 | |||||||||
Derivative instruments | ||||||||||||
Call options | — | 65 | 65 | |||||||||
Liabilities | ||||||||||||
Derivative instruments | ||||||||||||
Fuel hedge contracts | — | (1 | ) | (1 | ) | |||||||
Interest rate swap agreements | — | (33 | ) | (33 | ) | |||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||
Fixed-rate debt that is not carried at fair value on the consolidated balance sheet and the estimated fair value of long-term fixed-rate debt (in millions): | ||||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Carrying amount | $ | 721 | $ | 844 | ||||||||
Fair value | 781 | 915 | ||||||||||
MILEAGE_PLAN_MILEAGE_PLAN_TABL
MILEAGE PLAN MILEAGE PLAN (TABLES) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
MILEAGE PLAN [Abstract] | ' | |||||||||||||||
Mileage Plan Liabilities [Table Text Block] | ' | |||||||||||||||
Alaska's Mileage Plan liabilities and deferrals on the consolidated balance sheets (in millions): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Current Liabilities: | ||||||||||||||||
Other accrued liabilities | $ | 342 | $ | 285 | ||||||||||||
Other Liabilities and Credits: | ||||||||||||||||
Deferred revenue | 283 | 428 | ||||||||||||||
Other liabilities | 17 | 17 | ||||||||||||||
Total | $ | 642 | $ | 730 | ||||||||||||
Mileage Plan Revenue [Table Text Block] | ' | |||||||||||||||
Alaska's Mileage Plan revenue included in the consolidated statements of operations (in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Passenger revenues | $ | 54 | $ | 47 | $ | 150 | $ | 137 | ||||||||
Other - net revenues | 74 | 55 | 184 | 158 | ||||||||||||
Special mileage plan revenue | 192 | — | 192 | — | ||||||||||||
Total | $ | 320 | $ | 102 | $ | 526 | $ | 295 | ||||||||
LONGTERM_DEBT_TABLES
LONG-TERM DEBT (TABLES) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
Long-term debt obligations on the consolidated balance sheet (in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Fixed-rate notes payable due through 2024 | $ | 721 | $ | 844 | ||||
Variable-rate notes payable due through 2023 | 172 | 188 | ||||||
Long-term debt | 893 | 1,032 | ||||||
Less current portion | 111 | 161 | ||||||
Total | $ | 782 | $ | 871 | ||||
Weighted-average fixed-interest rate | 5.7 | % | 5.8 | % | ||||
Weighted-average variable-interest rate | 1.7 | % | 2 | % | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||
At September 30, 2013, long-term debt principal payments for the next five years and thereafter are as follows (in millions): | ||||||||
Total | ||||||||
Remainder of 2013 | $ | 22 | ||||||
2014 | 117 | |||||||
2015 | 113 | |||||||
2016 | 111 | |||||||
2017 | 116 | |||||||
Thereafter | 414 | |||||||
Total | $ | 893 | ||||||
EMPLOYEE_BENEFIT_PLANS_TABLES
EMPLOYEE BENEFIT PLANS (TABLES) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | |||||||||||||||||||||||
Net periodic benefit costs recognized included the following components for the three months ended September 30, 2013 (in millions): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
Qualified | Nonqualified | Postretirement Medical | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 11 | $ | 9 | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 19 | 18 | — | 1 | 1 | 2 | ||||||||||||||||||
Expected return on assets | (27 | ) | (23 | ) | — | — | — | — | ||||||||||||||||
Amortization of prior service cost | (1 | ) | — | — | — | — | — | |||||||||||||||||
Recognized actuarial loss | 11 | 10 | — | — | — | — | ||||||||||||||||||
Total | $ | 13 | $ | 14 | $ | — | $ | 1 | $ | 2 | $ | 3 | ||||||||||||
Net periodic benefit costs recognized included the following components for the nine months ended September 30, 2013 (in millions): | ||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
Qualified | Nonqualified | Postretirement Medical | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 34 | $ | 29 | $ | 1 | $ | 1 | $ | 3 | $ | 3 | ||||||||||||
Interest cost | 55 | 55 | 1 | 2 | 3 | 5 | ||||||||||||||||||
Expected return on assets | (82 | ) | (70 | ) | — | — | — | — | ||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | — | — | — | — | ||||||||||||||||
Recognized actuarial loss | 32 | 30 | — | — | — | — | ||||||||||||||||||
Total | $ | 38 | $ | 43 | $ | 2 | $ | 3 | $ | 6 | $ | 8 | ||||||||||||
COMMITMENTS_TABLES
COMMITMENTS (TABLES) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases and Unrecorded Unconditional Purchase Obligtaions [Table Text Block] | ' | |||||||||||||||||||
Future minimum fixed payments for commitments (in millions): | ||||||||||||||||||||
September 30, 2013 | Aircraft Leases | Facility Leases | Aircraft Commitments | Capacity Purchase Agreements | Engine Maintenance | |||||||||||||||
Remainder of 2013 | $ | 17 | $ | 12 | $ | 117 | $ | 9 | $ | 3 | ||||||||||
2014 | 127 | 45 | 448 | 38 | 10 | |||||||||||||||
2015 | 105 | 35 | 328 | 31 | 11 | |||||||||||||||
2016 | 82 | 27 | 279 | 18 | — | |||||||||||||||
2017 | 51 | 21 | 338 | 19 | — | |||||||||||||||
Thereafter | 79 | 148 | 1,450 | 8 | — | |||||||||||||||
Total | $ | 461 | $ | 288 | $ | 2,960 | $ | 123 | $ | 24 | ||||||||||
SHAREHOLDERS_EQUITY_TABLES
SHAREHOLDERS' EQUITY (TABLES) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Treasury Stock by Class [Table Text Block] | ' | |||||||||||||||||||||||||||
Share repurchase activity (in millions, except share amounts): | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||
2012 Repurchase Program - $250 million | 537,008 | $ | 32 | — | $ | — | 1,454,790 | $ | 83 | — | $ | — | ||||||||||||||||
2012 Repurchase Program - $50 million | — | — | 728,101 | 26 | — | — | 1,437,101 | 50 | ||||||||||||||||||||
2011 Repurchase Program - $50 million | — | — | — | — | — | — | 46,340 | 2 | ||||||||||||||||||||
Total | 537,008 | $ | 32 | 728,101 | $ | 26 | 1,454,790 | $ | 83 | 1,483,441 | $ | 52 | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||||||||||||||
Components of accumulated other comprehensive income (loss) (in millions): | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Marketable securities | $ | 1 | $ | 7 | ||||||||||||||||||||||||
Employee benefit plans | (403 | ) | (423 | ) | ||||||||||||||||||||||||
Interest rate derivatives | (12 | ) | (20 | ) | ||||||||||||||||||||||||
Total | $ | (414 | ) | $ | (436 | ) |
OPERATING_SEGMENT_INFORMATION_
OPERATING SEGMENT INFORMATION (TABLES) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||||||||||
Operating segment information is as follows (in millions): | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 960 | $ | — | $ | — | $ | — | $ | 960 | $ | — | $ | 960 | ||||||||||||||
Regional | 208 | — | — | 208 | — | 208 | ||||||||||||||||||||||
Total passenger revenues | 960 | 208 | — | — | 1,168 | — | 1,168 | |||||||||||||||||||||
CPA revenues | — | — | 88 | (88 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 31 | 1 | — | — | 32 | — | 32 | |||||||||||||||||||||
Other - net | 145 | 19 | 1 | — | 165 | 192 | 357 | |||||||||||||||||||||
Total operating revenues | 1,136 | 228 | 89 | (88 | ) | 1,365 | 192 | 1,557 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 588 | 144 | 80 | (88 | ) | 724 | — | 724 | ||||||||||||||||||||
Economic fuel | 337 | 46 | — | — | 383 | (20 | ) | 363 | ||||||||||||||||||||
Total operating expenses | 925 | 190 | 80 | (88 | ) | 1,107 | (20 | ) | 1,087 | |||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 5 | — | — | — | 5 | — | 5 | |||||||||||||||||||||
Interest expense | (9 | ) | — | (4 | ) | — | (13 | ) | — | (13 | ) | |||||||||||||||||
Other | 8 | (8 | ) | 1 | — | 1 | — | 1 | ||||||||||||||||||||
4 | (8 | ) | (3 | ) | — | (7 | ) | — | (7 | ) | ||||||||||||||||||
Income (loss) before income tax | $ | 215 | $ | 30 | $ | 6 | $ | — | $ | 251 | $ | 212 | $ | 463 | ||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 905 | $ | — | $ | — | $ | — | $ | 905 | $ | — | $ | 905 | ||||||||||||||
Regional | — | 198 | — | — | 198 | — | 198 | |||||||||||||||||||||
Total passenger revenues | 905 | 198 | — | — | 1,103 | — | 1,103 | |||||||||||||||||||||
CPA revenues | — | — | 96 | (96 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 28 | 2 | — | — | 30 | — | 30 | |||||||||||||||||||||
Other - net | 121 | 16 | 2 | — | 139 | — | 139 | |||||||||||||||||||||
Total operating revenues | 1,054 | 216 | 98 | (96 | ) | 1,272 | — | 1,272 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 532 | 145 | 86 | (97 | ) | 666 | — | 666 | ||||||||||||||||||||
Economic fuel | 312 | 46 | — | — | 358 | (21 | ) | 337 | ||||||||||||||||||||
Total operating expenses | 844 | 191 | 86 | (97 | ) | 1,024 | (21 | ) | 1,003 | |||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 5 | — | — | — | 5 | — | 5 | |||||||||||||||||||||
Interest expense | (11 | ) | — | (4 | ) | — | (15 | ) | — | (15 | ) | |||||||||||||||||
Other | 6 | — | — | — | 6 | — | 6 | |||||||||||||||||||||
— | — | (4 | ) | — | (4 | ) | — | (4 | ) | |||||||||||||||||||
Income (loss) before income tax | $ | 210 | $ | 25 | $ | 8 | $ | 1 | $ | 244 | $ | 21 | $ | 265 | ||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 2,651 | $ | — | $ | — | $ | — | $ | 2,651 | $ | — | $ | 2,651 | ||||||||||||||
Regional | — | 582 | — | — | 582 | — | 582 | |||||||||||||||||||||
Total passenger revenues | 2,651 | 582 | — | — | 3,233 | — | 3,233 | |||||||||||||||||||||
CPA revenues | — | — | 274 | (274 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 85 | 3 | — | — | 88 | — | 88 | |||||||||||||||||||||
Other - net | 380 | 49 | 4 | — | 433 | 192 | 625 | |||||||||||||||||||||
Total operating revenues | 3,116 | 634 | 278 | (274 | ) | 3,754 | 192 | 3,946 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 1,704 | 440 | 253 | (274 | ) | 2,123 | — | 2,123 | ||||||||||||||||||||
Economic fuel | 987 | 135 | — | — | 1,122 | (7 | ) | 1,115 | ||||||||||||||||||||
Total operating expenses | 2,691 | 575 | 253 | (274 | ) | 3,245 | (7 | ) | 3,238 | |||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 14 | — | — | — | 14 | — | 14 | |||||||||||||||||||||
Interest expense | (30 | ) | — | (10 | ) | (2 | ) | (42 | ) | — | (42 | ) | ||||||||||||||||
Other | 19 | (9 | ) | 1 | — | 11 | — | 11 | ||||||||||||||||||||
3 | (9 | ) | (9 | ) | (2 | ) | (17 | ) | — | (17 | ) | |||||||||||||||||
Income (loss) before income tax | $ | 428 | $ | 50 | $ | 16 | $ | (2 | ) | $ | 492 | $ | 199 | $ | 691 | |||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 2,491 | $ | — | $ | — | $ | — | $ | 2,491 | $ | — | $ | 2,491 | ||||||||||||||
Regional | — | 559 | — | — | 559 | — | 559 | |||||||||||||||||||||
Total passenger revenues | 2,491 | 559 | — | — | 3,050 | — | 3,050 | |||||||||||||||||||||
CPA revenues | — | — | 272 | (272 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 82 | 3 | — | — | 85 | — | 85 | |||||||||||||||||||||
Other - net | 339 | 45 | 6 | — | 390 | — | 390 | |||||||||||||||||||||
Total operating revenues | 2,912 | 607 | 278 | (272 | ) | 3,525 | — | 3,525 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 1,583 | 421 | 248 | (272 | ) | 1,980 | — | 1,980 | ||||||||||||||||||||
Economic fuel | 923 | 135 | — | — | 1,058 | 29 | 1,087 | |||||||||||||||||||||
Total operating expenses | 2,506 | 556 | 248 | (272 | ) | 3,038 | 29 | 3,067 | ||||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 15 | — | — | — | 15 | — | 15 | |||||||||||||||||||||
Interest expense | (37 | ) | — | (12 | ) | — | (49 | ) | — | (49 | ) | |||||||||||||||||
Other | 17 | — | 1 | — | 18 | — | 18 | |||||||||||||||||||||
(5 | ) | — | (11 | ) | — | (16 | ) | — | (16 | ) | ||||||||||||||||||
Income (loss) before income tax | $ | 401 | $ | 51 | $ | 19 | $ | — | $ | 471 | $ | (29 | ) | $ | 442 | |||||||||||||
(a) | The adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocations and does not include certain charges. | |||||||||||||||||||||||||||
(b) | Includes accounting adjustments related to Special mileage plan revenue and mark-to-market fuel-hedge accounting charges. | |||||||||||||||||||||||||||
Total assets were as follows (in millions): | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Alaska(a) | $ | 5,731 | $ | 5,177 | ||||||||||||||||||||||||
Horizon | 850 | 823 | ||||||||||||||||||||||||||
Parent company | 2,403 | 1,832 | ||||||||||||||||||||||||||
Elimination of inter-company accounts | (3,122 | ) | (2,327 | ) | ||||||||||||||||||||||||
Consolidated | $ | 5,862 | $ | 5,505 | ||||||||||||||||||||||||
(a) | There are no assets associated with purchased capacity flying at Alaska. |
NEW_ACCOUNTING_PRONOUNCEMENT_N3
NEW ACCOUNTING PRONOUNCEMENT NEW ACCOUNTING PRONOUNCEMENT (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Special Revenue | $192 | $0 | $192 | $0 |
Accounting Standards Update 2009-13 [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Special Revenue | $192 | ' | $192 | ' |
Special Revenue Item, Per Basic Share | $1.72 | ' | $1.71 | ' |
Special Revenue Item, Per Diluted Share | $1.70 | ' | $1.69 | ' |
NEW_ACCOUNTING_PRONOUNCEMENT_C
NEW ACCOUNTING PRONOUNCEMENT CHANGE IN ESTIMATE (Details) | 0 Months Ended |
Jul. 02, 2013 | |
Original Estimate [Member] | ' |
Change in Accounting Estimate [Line Items] | ' |
Percent of Mileage Breakage | 12.00% |
Revised Estimate [Member] | ' |
Change in Accounting Estimate [Line Items] | ' |
Percent of Mileage Breakage | 17.40% |
Special Revenue [Member] | ' |
Change in Accounting Estimate [Line Items] | ' |
Change in Accounting Estimate, Financial Effect | '44 |
CASH_CASH_EQUIVALENTS_AND_MARK2
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' | ' | ' | ' |
Cash and Cash Equivalents [Abstract] | ' | ' | ' | ' | ' | ' |
Cash | $3 | ' | $3 | ' | $28 | ' |
Money market funds and other securities | 38 | ' | 38 | ' | 94 | ' |
Cash and cash equivalents | 41 | 27 | 41 | 27 | 122 | 102 |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' | ' | ' |
Marketable securities, Cost Basis | 1,403 | ' | 1,403 | ' | 1,119 | ' |
Marketable securities, Unrealized Gains | ' | ' | 6 | ' | 12 | ' |
Marketable securities, Unrealized Losses | ' | ' | -5 | ' | -1 | ' |
Marketable securities, Fair Value | 1,404 | ' | 1,404 | ' | 1,130 | ' |
Cash and marketables securities, Cost Basis | 1,444 | ' | 1,444 | ' | 1,241 | ' |
Total cash and marketable securities | 1,445 | ' | 1,445 | ' | 1,252 | ' |
Available-for-sale Securities, Activity [Abstract] | ' | ' | ' | ' | ' | ' |
Proceeds from sales and maturities | 247 | 271 | 712 | 701 | ' | ' |
Gross realized gains | 0 | 2 | 3 | 6 | ' | ' |
Gross realized losses | 0 | 0 | -1 | -1 | ' | ' |
U.S. government and agency securities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' | ' | ' |
Marketable securities, Cost Basis | 393 | ' | 393 | ' | 271 | ' |
Marketable securities, Unrealized Gains | ' | ' | 1 | ' | 1 | ' |
Marketable securities, Unrealized Losses | ' | ' | -1 | ' | 0 | ' |
Marketable securities, Fair Value | 393 | ' | 393 | ' | 272 | ' |
Foreign government bonds [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' | ' | ' |
Marketable securities, Cost Basis | 24 | ' | 24 | ' | 50 | ' |
Marketable securities, Unrealized Gains | ' | ' | 0 | ' | 1 | ' |
Marketable securities, Unrealized Losses | ' | ' | 0 | ' | 0 | ' |
Marketable securities, Fair Value | 24 | ' | 24 | ' | 51 | ' |
Asset-backed securities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' | ' | ' |
Marketable securities, Cost Basis | 129 | ' | 129 | ' | 61 | ' |
Marketable securities, Unrealized Gains | ' | ' | 0 | ' | 1 | ' |
Marketable securities, Unrealized Losses | ' | ' | 0 | ' | 0 | ' |
Marketable securities, Fair Value | 129 | ' | 129 | ' | 62 | ' |
Mortgage-backed securities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' | ' | ' |
Marketable securities, Cost Basis | 134 | ' | 134 | ' | 137 | ' |
Marketable securities, Unrealized Gains | ' | ' | 0 | ' | 1 | ' |
Marketable securities, Unrealized Losses | ' | ' | -1 | ' | -1 | ' |
Marketable securities, Fair Value | 133 | ' | 133 | ' | 137 | ' |
Corporate notes and bonds [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' | ' | ' |
Marketable securities, Cost Basis | 693 | ' | 693 | ' | 577 | ' |
Marketable securities, Unrealized Gains | ' | ' | 5 | ' | 8 | ' |
Marketable securities, Unrealized Losses | ' | ' | -3 | ' | 0 | ' |
Marketable securities, Fair Value | 695 | ' | 695 | ' | 585 | ' |
Municipal securities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' | ' | ' |
Marketable securities, Cost Basis | 30 | ' | 30 | ' | 23 | ' |
Marketable securities, Unrealized Gains | ' | ' | 0 | ' | 0 | ' |
Marketable securities, Unrealized Losses | ' | ' | 0 | ' | 0 | ' |
Marketable securities, Fair Value | $30 | ' | $30 | ' | $23 | ' |
CASH_CASH_EQUIVALENTS_AND_MARK3
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES - MATURITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Cost Basis [Abstract] | ' | ' |
Due in one year or less | $198 | ' |
Due after one year through five years | 1,187 | ' |
Due after five years through 10 years | 18 | ' |
Marketable securities, Cost Basis | 1,403 | 1,119 |
Fair Value [Abstract] | ' | ' |
Due in one year or less | 199 | ' |
Due after one year through five years | 1,187 | ' |
Due after five years through 10 years | 18 | ' |
Marketable securities, Fair Value | $1,404 | $1,130 |
DERIVATIVE_INSTRUMENTS_BALANCE
DERIVATIVE INSTRUMENTS - BALANCE SHEET CLASSIFICATION (DETAILS) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Accumulated other comprehensive (loss) | ($414) | ($436) |
Posted collateral | 8 | 15 |
Fuel hedge contracts [Member] | Derivative Instruments Not Designated as Hedges [Member] | Fuel hedge contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | 20 | 26 |
Derivative Liabilities, Current | -1 | -1 |
Fuel hedge contracts [Member] | Derivative Instruments Not Designated as Hedges [Member] | Fuel hedge contracts, noncurrent assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Noncurrent | 9 | 39 |
Interest rate swaps agreements [Member] | Derivative Instruments Designated as Hedges [Member] | Other accrued liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities, Current | -6 | -6 |
Interest rate swaps agreements [Member] | Derivative Instruments Designated as Hedges [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities, Noncurrent | -13 | -27 |
Interest rate swaps agreements [Member] | Derivative Instruments Designated as Hedges [Member] | Gains (losses) in AOCL [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Accumulated other comprehensive (loss) | -19 | -33 |
Derivative Gain (Loss) in Accumulated Other Comprehensive Loss To Be Reclassified Within Next Twelve Months | ($6) | ' |
DERIVATIVE_INSTRUMENTS_INCOME_
DERIVATIVE INSTRUMENTS - INCOME STATEMENT (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments Not Designated as Hedges [Member] | Fuel hedge contracts [Member] | Gains (losses) recognized in aircraft fuel expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (losses) recognized in income | $10 | $22 | ($39) | ($41) |
Cash Flow Hedging [Member] | Derivative Instruments Designated as Hedges [Member] | Interest rate swaps agreements [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains (losses) recognized in other comprehensive income (OCI) | -1 | -4 | 9 | -9 |
Cash Flow Hedging [Member] | Derivative Instruments Designated as Hedges [Member] | Interest rate swaps agreements [Member] | Gains (losses) recognized in aircraft rent [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (losses) recognized in income | ($1) | ($2) | ($4) | ($4) |
DERIVATIVE_INSTRUMENTS_FAIR_VA
DERIVATIVE INSTRUMENTS - FAIR VALUE OF HEDGE POSITIONS (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative [Line Items] | ' | ' | ' | ' |
Net cash received (paid) to for new positions and settlements | $6 | $4 | ($3) | ($13) |
B737-800 [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Operating Leases, Number of Units (in Aircraft) | 6 | ' | 6 | ' |
Not Designated as Hedging Instrument [Member] | Fuel hedge contracts [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Fuel hedge contracts outstanding (in barrels) | 360,000,000 | ' | 360,000,000 | ' |
FAIR_VALUE_MEASUREMENTS_FAIR_V
FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (DETAILS) (Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fuel hedge contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, assets | $29 | $65 |
Derivative instruments, liabilities | -1 | -1 |
Fuel hedge contracts [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | 0 |
Fuel hedge contracts [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, assets | 29 | 65 |
Derivative instruments, liabilities | -1 | -1 |
Interest rate swaps agreements [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, liabilities | -19 | -33 |
Interest rate swaps agreements [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, liabilities | 0 | 0 |
Interest rate swaps agreements [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, liabilities | -19 | -33 |
U.S. government and agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 393 | 272 |
U.S. government and agency securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 393 | 272 |
U.S. government and agency securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 0 | 0 |
Foreign government bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 24 | 51 |
Foreign government bonds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 0 | 0 |
Foreign government bonds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 24 | 51 |
Asset-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 129 | 62 |
Asset-backed securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 0 | 0 |
Asset-backed securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 129 | 62 |
Mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 133 | 137 |
Mortgage-backed securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 0 | 0 |
Mortgage-backed securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 133 | 137 |
Corporate notes and bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 695 | 585 |
Corporate notes and bonds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 0 | 0 |
Corporate notes and bonds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 695 | 585 |
Municipal securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 30 | 23 |
Municipal securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 0 | 0 |
Municipal securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | $30 | $23 |
FAIR_VALUE_MEASUREMENTS_LONGTE
FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (DETAILS) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt | $721 | $844 |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt | $781 | $915 |
MILEAGE_PLAN_MILEAGE_PLAN_DETA
MILEAGE PLAN MILEAGE PLAN (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Mileage Plan [Line Items] | ' | ' | ' | ' | ' |
Other accrued liabilities | $676 | ' | $676 | ' | $557 |
Deferred revenue | 295 | ' | 295 | ' | 443 |
Other liabilities | 318 | ' | 318 | ' | 334 |
Total passenger revenue | 1,168 | 1,103 | 3,233 | 3,050 | ' |
Other - net | 165 | 139 | 433 | 390 | ' |
Special Revenue | 192 | 0 | 192 | 0 | ' |
Liabilities From Mileage Plan [Member] | ' | ' | ' | ' | ' |
Mileage Plan [Line Items] | ' | ' | ' | ' | ' |
Other accrued liabilities | 342 | ' | 342 | ' | 285 |
Deferred revenue | 283 | ' | 283 | ' | 428 |
Other liabilities | 17 | ' | 17 | ' | 17 |
Liabilities | 642 | ' | 642 | ' | 730 |
Revenue From Mileage Plan [Member] | ' | ' | ' | ' | ' |
Mileage Plan [Line Items] | ' | ' | ' | ' | ' |
Total passenger revenue | 54 | 47 | 150 | 137 | ' |
Other - net | 74 | 55 | 184 | 158 | ' |
Special Revenue | 192 | 0 | 192 | 0 | ' |
Total Mileage Plan Revenues | $320 | $102 | $526 | $295 | ' |
LONGTERM_DEBT_SCHEDULE_OF_LONG
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (DETAILS) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' | ' |
Repayments of Long-term Debt | $139 | $240 | ' |
Long-term Debt | 893 | ' | 1,032 |
Less current portion | 111 | ' | 161 |
Long-term debt, net of current portion | 782 | ' | 871 |
Weighted-average fixed-interest rate | 5.70% | ' | 5.80% |
Weighted-average variable-interest rate | 1.70% | ' | 2.00% |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Remainder of 2013 | 22 | ' | ' |
2014 | 117 | ' | ' |
2015 | 113 | ' | ' |
2016 | 111 | ' | ' |
2017 | 116 | ' | ' |
Thereafter | 414 | ' | ' |
Long-term Debt | 893 | ' | 1,032 |
Scheduled Debt Payments [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt payments | 139 | ' | ' |
Fixed-rate notes payable due through 2024 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term Debt | 721 | ' | 844 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Long-term Debt | 721 | ' | 844 |
Variable-rate notes payable due through 2023 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term Debt | 172 | ' | 188 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Long-term Debt | $172 | ' | $188 |
LONGTERM_DEBT_LINE_OF_CREDIT_D
LONG-TERM DEBT - LINE OF CREDIT (DETAILS) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Number of Credit Facilities | 2 |
Line of Credit Facility, Asset Restrictions | $500,000,000 |
Secured by aircraft [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 100,000,000 |
Line of Credit Facility, Expiration Date | 30-Aug-15 |
Secured by other [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $100,000,000 |
Line of Credit Facility, Expiration Date | 31-Mar-17 |
EMPLOYEE_BENEFIT_PLANS_NET_PEN
EMPLOYEE BENEFIT PLANS - NET PENSION EXPENSE (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Qualified Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | $11 | $9 | $34 | $29 |
Interest cost | 19 | 18 | 55 | 55 |
Expected return on assets | -27 | -23 | -82 | -70 |
Amortization of prior service cost | -1 | 0 | -1 | -1 |
Recognized actuarial loss | 11 | 10 | 32 | 30 |
Net pension expense | 13 | 14 | 38 | 43 |
Nonqualified Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | 0 | 0 | 1 | 1 |
Interest cost | 0 | 1 | 1 | 2 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Recognized actuarial loss | 0 | 0 | 0 | 0 |
Net pension expense | 0 | 1 | 2 | 3 |
Postretirement Medical Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 1 | 2 | 3 | 5 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Recognized actuarial loss | 0 | 0 | 0 | 0 |
Net pension expense | $2 | $3 | $6 | $8 |
COMMITMENTS_DETAILS
COMMITMENTS (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
carriers | carriers | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Rent Expense | $75 | $69 | $228 | $207 |
Airline, Capacity Purchase Arrangements, Carriers | 3 | ' | 3 | ' |
Airline, Capacity Purchase Arrangements, Percent | 100.00% | ' | 100.00% | ' |
Aircraft Commitments [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Remainder of 2013 | 117 | ' | 117 | ' |
2014 | 448 | ' | 448 | ' |
2015 | 328 | ' | 328 | ' |
2016 | 279 | ' | 279 | ' |
2017 | 338 | ' | 338 | ' |
Thereafter | 1,450 | ' | 1,450 | ' |
Total | 2,960 | ' | 2,960 | ' |
Capacity Purchase Agreements [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Remainder of 2013 | 9 | ' | 9 | ' |
2014 | 38 | ' | 38 | ' |
2015 | 31 | ' | 31 | ' |
2016 | 18 | ' | 18 | ' |
2017 | 19 | ' | 19 | ' |
Thereafter | 8 | ' | 8 | ' |
Total | 123 | ' | 123 | ' |
Engine Maintenance [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Remainder of 2013 | 3 | ' | 3 | ' |
2014 | 10 | ' | 10 | ' |
2015 | 11 | ' | 11 | ' |
2016 | 0 | ' | 0 | ' |
2017 | 0 | ' | 0 | ' |
Thereafter | 0 | ' | 0 | ' |
Total | 24 | ' | 24 | ' |
Aircraft Leases [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | ' | ' | ' |
Operating Leases, Number of Units | 63 | ' | 63 | ' |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Remainder of 2013 | 17 | ' | 17 | ' |
2014 | 127 | ' | 127 | ' |
2015 | 105 | ' | 105 | ' |
2016 | 82 | ' | 82 | ' |
2017 | 51 | ' | 51 | ' |
Thereafter | 79 | ' | 79 | ' |
Total | 461 | ' | 461 | ' |
Facility Leases [Member] | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Remainder of 2013 | 12 | ' | 12 | ' |
2014 | 45 | ' | 45 | ' |
2015 | 35 | ' | 35 | ' |
2016 | 27 | ' | 27 | ' |
2017 | 21 | ' | 21 | ' |
Thereafter | 148 | ' | 148 | ' |
Total | $288 | ' | $288 | ' |
B737 [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Committed to Purchase (in Aircraft) | 72 | ' | 72 | ' |
Options to Purchase Additional (in Aircraft) | 64 | ' | 64 | ' |
B737-900ER [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Committed to Purchase (in Aircraft) | 35 | ' | 35 | ' |
B737 MAX [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Committed to Purchase (in Aircraft) | 37 | ' | 37 | ' |
Q400 [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Committed to Purchase (in Aircraft) | 3 | ' | 3 | ' |
Options to Purchase Additional (in Aircraft) | 7 | ' | 7 | ' |
Assets Leased to Others [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | ' | ' | ' |
Operating Leases, Number of Units | 11 | ' | 11 | ' |
Non Operating Aircraft [Member] | ' | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | ' | ' | ' |
Operating Leases, Number of Units | 14 | ' | 14 | ' |
SHAREHOLDERS_EQUITY_SHAREHOLDE
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY, COMMON STOCK REPURCHASE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
September 2012 Stock Repurchase Program [Member] | September 2012 Stock Repurchase Program [Member] | September 2012 Stock Repurchase Program [Member] | September 2012 Stock Repurchase Program [Member] | September 2012 Stock Repurchase Program [Member] | February 2012 Stock Repurchase Program [Member] | February 2012 Stock Repurchase Program [Member] | February 2012 Stock Repurchase Program [Member] | February 2012 Stock Repurchase Program [Member] | February 2012 Stock Repurchase Program [Member] | June 2011 Stock Repurchase Program [Member] | June 2011 Stock Repurchase Program [Member] | June 2011 Stock Repurchase Program [Member] | June 2011 Stock Repurchase Program [Member] | June 2011 Stock Repurchase Program [Member] | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | ' | $250 | ' | ' | ' | ' | $50 | ' | ' | ' | ' | $50 | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | 537,008 | 728,101 | 1,454,790 | 1,483,441 | ' | 537,008 | 0 | 1,454,790 | 0 | ' | 0 | 728,101 | 0 | 1,437,101 | ' | 0 | 0 | 0 | 46,340 |
Stock Repurchased During Period, Value | $32 | $26 | $83 | $52 | ' | $32 | $0 | $83 | $0 | ' | $0 | $26 | $0 | $50 | ' | $0 | $0 | $0 | $2 |
SHAREHOLDERS_EQUITY_SHAREHOLDE1
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY, ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Marketable securities | $1 | $7 |
Employee benefit plans | -403 | -423 |
Interest rate derivatives | -12 | -20 |
Accumulated other comprehensive (loss) | ($414) | ($436) |
SHAREHOLDERS_EQUITY_SHAREHOLDE2
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY, CASH DIVIDEND (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Equity [Abstract] | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.20 | $0 | $0.20 | $0 |
OPERATING_SEGMENT_INFORMATION_1
OPERATING SEGMENT INFORMATION (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Operating revenues | ' | ' | ' | ' | ||||
Passenger, Mainline | $960 | $905 | $2,651 | $2,491 | ||||
Passenger, Regional | 208 | 198 | 582 | 559 | ||||
Total passenger revenue | 1,168 | 1,103 | 3,233 | 3,050 | ||||
Segment Reporting Information, Intersegment Revenue | 0 | 0 | 0 | 0 | ||||
Freight and mail | 32 | 30 | 88 | 85 | ||||
Other Net and Special Revenue | 357 | 139 | 625 | 390 | ||||
Total Operating Revenues | 1,557 | 1,272 | 3,946 | 3,525 | ||||
Operating expenses | ' | ' | ' | ' | ||||
Operating expenses, excluding fuel | 724 | 666 | 2,123 | 1,980 | ||||
Economic fuel | 363 | 337 | 1,115 | 1,087 | ||||
Total Operating Expenses | 1,087 | 1,003 | 3,238 | 3,067 | ||||
Nonoperating income (expense) | ' | ' | ' | ' | ||||
Interest income | 5 | 5 | 14 | 15 | ||||
Interest expense | -13 | -15 | -42 | -49 | ||||
Other | 1 | 6 | 11 | 18 | ||||
Nonoperating Income (Expense) Total | -7 | -4 | -17 | -16 | ||||
Income (loss) before income tax | 463 | 265 | 691 | 442 | ||||
Air Group Adjusted [Member] | ' | ' | ' | ' | ||||
Operating revenues | ' | ' | ' | ' | ||||
Passenger, Mainline | 960 | [1] | 905 | [1] | 2,651 | [1] | 2,491 | [1] |
Passenger, Regional | 208 | [1] | 198 | [1] | 582 | [1] | 559 | [1] |
Total passenger revenue | 1,168 | [1] | 1,103 | [1] | 3,233 | [1] | 3,050 | [1] |
Segment Reporting Information, Intersegment Revenue | 0 | 0 | 0 | 0 | ||||
Freight and mail | 32 | [1] | 30 | [1] | 88 | [1] | 85 | [1] |
Other Net and Special Revenue | 165 | [1] | 139 | [1] | 433 | [1] | 390 | [1] |
Total Operating Revenues | 1,365 | [1] | 1,272 | [1] | 3,754 | [1] | 3,525 | [1] |
Operating expenses | ' | ' | ' | ' | ||||
Operating expenses, excluding fuel | 724 | [1] | 666 | [1] | 2,123 | [1] | 1,980 | [1] |
Economic fuel | 383 | [1] | 358 | [1] | 1,122 | [1] | 1,058 | [1] |
Total Operating Expenses | 1,107 | [1] | 1,024 | [1] | 3,245 | [1] | 3,038 | [1] |
Nonoperating income (expense) | ' | ' | ' | ' | ||||
Interest income | 5 | [1] | 5 | [1] | 14 | [1] | 15 | [1] |
Interest expense | -13 | [1] | -15 | [1] | -42 | [1] | -49 | [1] |
Other | 1 | [1] | 6 | [1] | 11 | [1] | 18 | [1] |
Nonoperating Income (Expense) Total | -7 | [1] | -4 | [1] | -17 | [1] | -16 | [1] |
Income (loss) before income tax | 251 | [1] | 244 | [1] | 492 | [1] | 471 | [1] |
Alaska Mainline [Member] | ' | ' | ' | ' | ||||
Operating revenues | ' | ' | ' | ' | ||||
Passenger, Mainline | 960 | 905 | 2,651 | 2,491 | ||||
Passenger, Regional | ' | 0 | 0 | 0 | ||||
Total passenger revenue | 960 | 905 | 2,651 | 2,491 | ||||
Segment Reporting Information, Intersegment Revenue | 0 | 0 | 0 | 0 | ||||
Freight and mail | 31 | 28 | 85 | 82 | ||||
Other Net and Special Revenue | 145 | 121 | 380 | 339 | ||||
Total Operating Revenues | 1,136 | 1,054 | 3,116 | 2,912 | ||||
Operating expenses | ' | ' | ' | ' | ||||
Operating expenses, excluding fuel | 588 | 532 | 1,704 | 1,583 | ||||
Economic fuel | 337 | 312 | 987 | 923 | ||||
Total Operating Expenses | 925 | 844 | 2,691 | 2,506 | ||||
Nonoperating income (expense) | ' | ' | ' | ' | ||||
Interest income | 5 | 5 | 14 | 15 | ||||
Interest expense | -9 | -11 | -30 | -37 | ||||
Other | 8 | 6 | 19 | 17 | ||||
Nonoperating Income (Expense) Total | 4 | 0 | 3 | -5 | ||||
Income (loss) before income tax | 215 | 210 | 428 | 401 | ||||
Alaska Regional [Member] | ' | ' | ' | ' | ||||
Operating revenues | ' | ' | ' | ' | ||||
Passenger, Mainline | 0 | 0 | 0 | 0 | ||||
Passenger, Regional | 208 | 198 | 582 | 559 | ||||
Total passenger revenue | 208 | 198 | 582 | 559 | ||||
Segment Reporting Information, Intersegment Revenue | 0 | 0 | 0 | 0 | ||||
Freight and mail | 1 | 2 | 3 | 3 | ||||
Other Net and Special Revenue | 19 | 16 | 49 | 45 | ||||
Total Operating Revenues | 228 | 216 | 634 | 607 | ||||
Operating expenses | ' | ' | ' | ' | ||||
Operating expenses, excluding fuel | 144 | 145 | 440 | 421 | ||||
Economic fuel | 46 | 46 | 135 | 135 | ||||
Total Operating Expenses | 190 | 191 | 575 | 556 | ||||
Nonoperating income (expense) | ' | ' | ' | ' | ||||
Interest income | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Other | -8 | 0 | -9 | 0 | ||||
Nonoperating Income (Expense) Total | -8 | 0 | -9 | 0 | ||||
Income (loss) before income tax | 30 | 25 | 50 | 51 | ||||
Horizon [Member] | ' | ' | ' | ' | ||||
Operating revenues | ' | ' | ' | ' | ||||
Passenger, Mainline | 0 | 0 | 0 | 0 | ||||
Passenger, Regional | 0 | 0 | 0 | 0 | ||||
Total passenger revenue | 0 | 0 | 0 | 0 | ||||
Segment Reporting Information, Intersegment Revenue | 88 | 96 | 274 | 272 | ||||
Freight and mail | 0 | 0 | 0 | 0 | ||||
Other Net and Special Revenue | 1 | 2 | 4 | 6 | ||||
Total Operating Revenues | 89 | 98 | 278 | 278 | ||||
Operating expenses | ' | ' | ' | ' | ||||
Operating expenses, excluding fuel | 80 | 86 | 253 | 248 | ||||
Economic fuel | 0 | 0 | 0 | 0 | ||||
Total Operating Expenses | 80 | 86 | 253 | 248 | ||||
Nonoperating income (expense) | ' | ' | ' | ' | ||||
Interest income | 0 | 0 | 0 | 0 | ||||
Interest expense | -4 | -4 | -10 | -12 | ||||
Other | 1 | 0 | 1 | 1 | ||||
Nonoperating Income (Expense) Total | -3 | -4 | -9 | -11 | ||||
Income (loss) before income tax | 6 | 8 | 16 | 19 | ||||
Intersegment Elimination [Member] | ' | ' | ' | ' | ||||
Operating revenues | ' | ' | ' | ' | ||||
Passenger, Mainline | 0 | 0 | 0 | 0 | ||||
Passenger, Regional | 0 | 0 | 0 | 0 | ||||
Total passenger revenue | 0 | 0 | 0 | 0 | ||||
Segment Reporting Information, Intersegment Revenue | -88 | -96 | -274 | -272 | ||||
Freight and mail | 0 | 0 | 0 | 0 | ||||
Other Net and Special Revenue | 0 | 0 | 0 | 0 | ||||
Total Operating Revenues | -88 | -96 | -274 | -272 | ||||
Operating expenses | ' | ' | ' | ' | ||||
Operating expenses, excluding fuel | -88 | -97 | -274 | -272 | ||||
Economic fuel | 0 | 0 | 0 | 0 | ||||
Total Operating Expenses | -88 | -97 | -274 | -272 | ||||
Nonoperating income (expense) | ' | ' | ' | ' | ||||
Interest income | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | -2 | 0 | ||||
Other | 0 | 0 | 0 | 0 | ||||
Nonoperating Income (Expense) Total | 0 | 0 | -2 | 0 | ||||
Income (loss) before income tax | 0 | 1 | -2 | 0 | ||||
Special Revenue and Charges [Member] | ' | ' | ' | ' | ||||
Operating revenues | ' | ' | ' | ' | ||||
Passenger, Mainline | 0 | 0 | 0 | 0 | ||||
Passenger, Regional | 0 | 0 | 0 | 0 | ||||
Total passenger revenue | 0 | 0 | 0 | 0 | ||||
Segment Reporting Information, Intersegment Revenue | 0 | 0 | 0 | 0 | ||||
Freight and mail | 0 | 0 | 0 | 0 | ||||
Other Net and Special Revenue | 192 | [2] | 0 | 192 | [2] | 0 | ||
Total Operating Revenues | 192 | 0 | 192 | 0 | ||||
Operating expenses | ' | ' | ' | ' | ||||
Operating expenses, excluding fuel | 0 | 0 | 0 | 0 | ||||
Economic fuel | -20 | [2] | -21 | [2] | -7 | [2] | 29 | [2] |
Total Operating Expenses | -20 | -21 | -7 | 29 | ||||
Nonoperating income (expense) | ' | ' | ' | ' | ||||
Interest income | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Other | 0 | 0 | 0 | 0 | ||||
Nonoperating Income (Expense) Total | 0 | 0 | 0 | 0 | ||||
Income (loss) before income tax | $212 | $21 | $199 | ($29) | ||||
[1] | The adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocations and does not include certain charges. | |||||||
[2] | Includes accounting adjustments related to Special mileage plan revenue and mark-to-market fuel-hedge accounting charges. |
OPERATING_SEGMENT_INFORMATION_2
OPERATING SEGMENT INFORMATION, ASSETS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Total assets | $5,862 | $5,505 | ||
Alaska Airlines [Member] | ' | ' | ||
Total assets | 5,731 | [1] | 5,177 | [1] |
Horizon [Member] | ' | ' | ||
Total assets | 850 | 823 | ||
Parent [Member] | ' | ' | ||
Total assets | 2,403 | 1,832 | ||
Intersegment Elimination [Member] | ' | ' | ||
Total assets | ($3,122) | ($2,327) | ||
[1] | There are no assets associated with purchased capacity flying at Alaska. |