DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Year Focus | '2014 | ' |
Entity Registrant Name | 'ALASKA AIR GROUP, INC. | ' |
Entity Central Index Key | '0000766421 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Common Stock, Shares Outstanding | ' | 68,718,515 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $90 | $80 |
Marketable securities | 1,330 | 1,250 |
Total cash and marketable securities | 1,420 | 1,330 |
Receivables - net | 212 | 152 |
Inventories and supplies - net | 58 | 60 |
Deferred income taxes | 120 | 113 |
Prepaid expenses and other current assets | 124 | 107 |
Total Current Assets | 1,934 | 1,762 |
Property and Equipment | ' | ' |
Aircraft and other flight equipment | 4,855 | 4,677 |
Other property and equipment | 853 | 838 |
Deposits for future flight equipment | 360 | 446 |
Property and Equipment Total | 6,068 | 5,961 |
Less accumulated depreciation and amortization | 2,138 | 2,068 |
Total Property and Equipment - Net | 3,930 | 3,893 |
Other Assets | 197 | 183 |
Total Assets | 6,061 | 5,838 |
Current Liabilities | ' | ' |
Accounts payable | 75 | 64 |
Accrued wages, vacation and payroll taxes | 146 | 211 |
Other accrued liabilities | 672 | 624 |
Air traffic liability | 749 | 564 |
Current portion of long-term debt | 113 | 117 |
Total Current Liabilities | 1,755 | 1,580 |
Long-Term Debt, Net of Current Portion | 721 | 754 |
Other Liabilities and Credits | ' | ' |
Deferred income taxes | 725 | 709 |
Deferred revenue | 334 | 335 |
Obligation for pension and postretirement medical benefits | 122 | 123 |
Other liabilities | 309 | 308 |
Other Liabilities and Credits Totals | 1,490 | 1,475 |
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: 2014 - 68,798,330 shares; 2013 - 68,766,691 shares, Outstanding: 2014 - 68,788,557; 2013 - 68,745,953 | 69 | 69 |
Capital in excess of par value | 524 | 538 |
Treasury stock (common), at cost: 2014 - 9,773 shares; 2013 - 20,738 shares | -1 | -2 |
Accumulated other comprehensive (loss) | -181 | -183 |
Retained earnings | 1,684 | 1,607 |
Total Shareholders' Equity | 2,095 | 2,029 |
Total Liabilities and Shareholders' Equity | $6,061 | $5,838 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | 68,798,330 | 68,766,691 |
Common stock, shares outstanding | 68,788,557 | 68,745,953 |
Treasury Stock, Shares | 9,773 | 20,738 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Revenues | ' | ' |
Passenger, Mainline | $854 | $796 |
Passenger, Regional | 186 | 182 |
Total passenger revenue | 1,040 | 978 |
Freight and mail | 24 | 26 |
Other - net | 158 | 129 |
Total Operating Revenues | 1,222 | 1,133 |
Operating Expenses | ' | ' |
Wages and benefits | 272 | 264 |
Variable incentive pay | 25 | 21 |
Aircraft fuel, including hedging gains and losses | 358 | 381 |
Aircraft maintenance | 51 | 66 |
Aircraft rent | 28 | 30 |
Landing fees and other rentals | 69 | 60 |
Contracted services | 60 | 53 |
Selling expenses | 46 | 38 |
Depreciation and amortization | 70 | 69 |
Food and beverage service | 21 | 20 |
Other | 81 | 67 |
Total Operating Expenses | 1,081 | 1,069 |
Operating Income | 141 | 64 |
Nonoperating income (expense) | ' | ' |
Interest income | 5 | 4 |
Interest expense | -12 | -16 |
Interest Costs Capitalized Adjustment | 5 | 5 |
Other - net | 13 | 2 |
Nonoperating Income (Expense) Total | 11 | -5 |
Income before income tax | 152 | 59 |
Income tax expense | 58 | 22 |
Net Income | $94 | $37 |
Basic Earnings Per Share | $1.37 | $0.52 |
Diluted Earnings Per Share | $1.35 | $0.51 |
Shares used for computation: | ' | ' |
Basic shares | 68,667,217 | 70,431,000 |
Diluted shares | 69,410,618 | 71,414,000 |
Common Stock, Dividends, Per Share, Declared | $0.25 | $0 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net Income | $94 | $37 |
Related to marketable securities: | ' | ' |
Unrealized holding gains (losses) arising during the period | 3 | -1 |
Reclassification of (gains) losses into net income (within Nonoperating Income (Expense), Other - net) | 0 | -1 |
Income tax effect | -1 | 1 |
Marketable securities, net of tax | 2 | -1 |
Related to employee benefit plans: | ' | ' |
Reclassification adjustment for amortization of net pension expense (within Wages and benefits) | 2 | 10 |
Income tax effect | -1 | -4 |
Employee benefit plans, net of tax | 1 | 6 |
Related to interest rate derivative instruments: | ' | ' |
Unrealized holding gains (losses) arising during the period | -3 | 3 |
Reclassification of (gains) losses into net income (within Aircraft rent) | 2 | 1 |
Income tax effect | 0 | -2 |
Interest rate derivative instruments, net of tax | -1 | 2 |
Other comprehensive income | 2 | 7 |
Comprehensive income | $96 | $44 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net Income | $94 | $37 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 70 | 69 |
Stock-based compensation and other | 4 | 14 |
Changes in certain assets and liabilities: | ' | ' |
Changes in deferred income taxes | 9 | 18 |
Increase in air traffic liability | 185 | 157 |
Increase (decrease) in deferred revenue | -1 | -2 |
Other - net | -119 | -81 |
Net cash provided by operating activities | 242 | 212 |
Property and equipment additions: | ' | ' |
Aircraft and aircraft purchase deposits | -65 | -90 |
Other flight equipment | -17 | -6 |
Other property and equipment | -11 | -7 |
Total property and equipment additions | -93 | -103 |
Purchases of marketable securities | -305 | -280 |
Sales and maturities of marketable securities | 227 | 239 |
Proceeds from disposition of assets and changes in restricted deposits | 7 | -7 |
Net cash used in investing activities | -164 | -151 |
Cash flows from financing activities: | ' | ' |
Long-term debt payments | -37 | -88 |
Common stock repurchases | -30 | -19 |
Payments of Dividends | -17 | 0 |
Other financing activities | 16 | 19 |
Net cash used in financing activities | -68 | -88 |
Net decrease in cash and cash equivalents | 10 | -27 |
Cash and cash equivalents at beginning of year | 80 | 122 |
Cash and cash equivalents at end of the period | 90 | 95 |
Cash paid during the period for: | ' | ' |
Interest (net of amount capitalized) | 11 | 15 |
Income taxes | $6 | $6 |
GENERAL_AND_SUMMARY_OF_SIGNIFI
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
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, 2013. In the opinion of management, all adjustments have been made that are necessary to present fairly the Company’s financial position as of March 31, 2014, as well as the results of operations for the three months ended March 31, 2014 and 2013. 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, changes in the competitive environment, and other factors, operating results for the three months ended March 31, 2014, are not necessarily indicative of operating results for the entire year. |
CASH_CASH_EQUIVALENTS_AND_MARK
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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): | ||||||||||||||||
March 31, 2014 | Cost Basis | Unrealized | Unrealized Losses | Fair Value | ||||||||||||
Gains | ||||||||||||||||
Cash | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||
Cash equivalents | 85 | — | — | 85 | ||||||||||||
Cash and cash equivalents | 90 | — | — | 90 | ||||||||||||
U.S. government and agency securities | 284 | — | (1 | ) | 283 | |||||||||||
Foreign government bonds | 18 | — | — | 18 | ||||||||||||
Asset-back securities | 158 | — | — | 158 | ||||||||||||
Mortgage-back securities | 146 | 1 | (1 | ) | 146 | |||||||||||
Corporate notes and bonds | 696 | 5 | (1 | ) | 700 | |||||||||||
Municipal securities | 25 | — | — | 25 | ||||||||||||
Marketable securities | 1,327 | 6 | (3 | ) | 1,330 | |||||||||||
Total | $ | 1,417 | $ | 6 | $ | (3 | ) | $ | 1,420 | |||||||
December 31, 2013 | Cost Basis | Unrealized | Unrealized Losses | Fair Value | ||||||||||||
Gains | ||||||||||||||||
Cash | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||
Cash equivalents | 71 | — | — | 71 | ||||||||||||
Cash and cash equivalents | 80 | — | — | 80 | ||||||||||||
U.S. government and agency securities | 295 | 1 | (2 | ) | 294 | |||||||||||
Foreign government bonds | 11 | — | — | 11 | ||||||||||||
Asset-back securities | 146 | — | — | 146 | ||||||||||||
Mortgage-back securities | 144 | 1 | (2 | ) | 143 | |||||||||||
Corporate notes and bonds | 628 | 4 | (2 | ) | 630 | |||||||||||
Municipal securities | 26 | — | — | 26 | ||||||||||||
Marketable securities | 1,250 | 6 | (6 | ) | 1,250 | |||||||||||
Total | $ | 1,330 | $ | 6 | $ | (6 | ) | $ | 1,330 | |||||||
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 March 31, 2014. | ||||||||||||||||
Activity for marketable securities (in millions): | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Proceeds from sales and maturities | $ | 227 | $ | 239 | ||||||||||||
Gross realized gains | 1 | 2 | ||||||||||||||
Gross realized losses | (1 | ) | (1 | ) | ||||||||||||
Maturities for marketable securities (in millions): | ||||||||||||||||
March 31, 2014 | Cost Basis | Fair Value | ||||||||||||||
Due in one year or less | $ | 144 | $ | 145 | ||||||||||||
Due after one year through five years | 1,176 | 1,178 | ||||||||||||||
Due after five years through 10 years | 7 | 7 | ||||||||||||||
Total | $ | 1,327 | $ | 1,330 | ||||||||||||
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, 2014, the Company had outstanding fuel hedge contracts covering 264 million gallons of crude oil that will be settled from April 2014 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): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Derivative Instruments Not Designated as Hedges | ||||||||
Fuel hedge contracts | ||||||||
Fuel hedge contracts, current assets | $ | 12 | $ | 12 | ||||
Fuel hedge contracts, noncurrent assets | 3 | 4 | ||||||
Fuel hedge contracts, current liabilities | (2 | ) | — | |||||
Derivative Instruments Designated as Hedges | ||||||||
Interest rate swaps | ||||||||
Other accrued liabilities | (7 | ) | (7 | ) | ||||
Other liabilities | (11 | ) | (10 | ) | ||||
Losses in accumulated other comprehensive loss (AOCL) | (18 | ) | (17 | ) | ||||
The net cash received (paid) for new positions and settlements was ($7) million and nil during the three months ended March 31, 2014 and 2013, respectively. | ||||||||
Pretax effect of derivative instruments on earnings (in millions): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Derivative Instruments Not Designated as Hedges | ||||||||
Fuel hedge contracts | ||||||||
Gains (losses) recognized in aircraft fuel expense | $ | (10 | ) | $ | (24 | ) | ||
Derivative Instruments Designated as Hedges | ||||||||
Interest rate swaps | ||||||||
Losses recognized in aircraft rent | (2 | ) | (1 | ) | ||||
Gains (losses) recognized in other comprehensive income (OCI) | (3 | ) | 3 | |||||
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 the income statement as aircraft rent during the period. The Company expects $7 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 $7 million as of March 31, 2014 and December 31, 2013, 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 | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
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): | ||||||||||||
March 31, 2014 | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Marketable securities | ||||||||||||
U.S. government and agency securities | $ | 283 | $ | — | $ | 283 | ||||||
Foreign government bonds | — | 18 | 18 | |||||||||
Asset-back securities | — | 158 | 158 | |||||||||
Mortgage-back securities | — | 146 | 146 | |||||||||
Corporate notes and bonds | — | 700 | 700 | |||||||||
Municipal securities | — | 25 | 25 | |||||||||
Derivative instruments | ||||||||||||
Call options | — | 15 | 15 | |||||||||
Liabilities | ||||||||||||
Derivative instruments | ||||||||||||
Fuel hedge contracts | — | (2 | ) | (2 | ) | |||||||
Interest rate swap agreements | — | (18 | ) | (18 | ) | |||||||
December 31, 2013 | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Marketable securities | ||||||||||||
U.S. government and agency securities | $ | 294 | $ | — | $ | 294 | ||||||
Foreign government bonds | — | 11 | 11 | |||||||||
Asset-back securities | — | 146 | 146 | |||||||||
Mortgage-back securities | — | 143 | 143 | |||||||||
Corporate notes and bonds | — | 630 | 630 | |||||||||
Municipal securities | — | 26 | 26 | |||||||||
Derivative instruments | ||||||||||||
Call options | — | 16 | 16 | |||||||||
Liabilities | ||||||||||||
Derivative instruments | ||||||||||||
Fuel hedge contracts | — | — | — | |||||||||
Interest rate swap agreements | — | (17 | ) | (17 | ) | |||||||
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 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 March 31, 2014. | ||||||||||||
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): | ||||||||||||
March 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Carrying amount | $ | 678 | $ | 703 | ||||||||
Fair value | 733 | 762 | ||||||||||
MILEAGE_PLAN
MILEAGE PLAN | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
MILEAGE PLAN [Abstract] | ' | |||||||
Frequent Flyer Plan Disclosure [Text Block] | ' | |||||||
MILEAGE PLAN | ||||||||
Alaska's Mileage Plan liabilities and deferrals on the consolidated balance sheets (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Current Liabilities: | ||||||||
Other accrued liabilities | $ | 335 | $ | 314 | ||||
Other Liabilities and Credits: | ||||||||
Deferred revenue | 324 | 323 | ||||||
Other liabilities | 19 | 19 | ||||||
Total | $ | 678 | $ | 656 | ||||
Alaska's Mileage Plan revenue included in the consolidated statements of operations (in millions): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Passenger revenues | $ | 55 | $ | 46 | ||||
Other - net revenues | 73 | 54 | ||||||
Total | $ | 128 | $ | 100 | ||||
LONGTERM_DEBT
LONG-TERM DEBT | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
LONG-TERM DEBT | ' | |||||||
LONG-TERM DEBT | ||||||||
Long-term debt obligations on the consolidated balance sheet (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Fixed-rate notes payable due through 2024 | $ | 678 | $ | 703 | ||||
Variable-rate notes payable due through 2023 | 156 | 168 | ||||||
Long-term debt | 834 | 871 | ||||||
Less current portion | 113 | 117 | ||||||
Total | $ | 721 | $ | 754 | ||||
Weighted-average fixed-interest rate | 5.7 | % | 5.7 | % | ||||
Weighted-average variable-interest rate | 1.7 | % | 1.7 | % | ||||
During the three months ended March 31, 2014, the Company made debt payments of $37 million. | ||||||||
At March 31, 2014, long-term debt principal payments for the next five years and thereafter are as follows (in millions): | ||||||||
Total | ||||||||
Remainder of 2014 | $ | 80 | ||||||
2015 | 113 | |||||||
2016 | 111 | |||||||
2017 | 116 | |||||||
2018 | 147 | |||||||
Thereafter | 267 | |||||||
Total | $ | 834 | ||||||
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 March 31, 2014. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
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 March 31, 2014 (in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
Qualified | Nonqualified | Postretirement Medical | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 8 | $ | 11 | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 20 | 18 | — | 1 | 1 | 1 | ||||||||||||||||||
Expected return on assets | (29 | ) | (27 | ) | — | — | — | — | ||||||||||||||||
Amortization of prior service cost | — | — | — | — | — | — | ||||||||||||||||||
Recognized actuarial loss (gain) | 3 | 10 | — | — | (1 | ) | — | |||||||||||||||||
Total | $ | 2 | $ | 12 | $ | — | $ | 1 | $ | 1 | $ | 2 | ||||||||||||
COMMITMENTS
COMMITMENTS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
COMMITMENTS | ' | |||||||||||||||||||
COMMITMENTS | ||||||||||||||||||||
Future minimum fixed payments for commitments (in millions): | ||||||||||||||||||||
March 31, 2014 | Aircraft Leases | Facility Leases | Aircraft Commitments | Capacity Purchase Agreements | Engine Maintenance | |||||||||||||||
Remainder of 2014 | $ | 37 | $ | 72 | $ | 238 | $ | 38 | $ | 8 | ||||||||||
2015 | 103 | 85 | 369 | 44 | 10 | |||||||||||||||
2016 | 82 | 75 | 304 | 32 | — | |||||||||||||||
2017 | 51 | 71 | 354 | 32 | — | |||||||||||||||
2018 | 36 | 23 | 429 | 14 | — | |||||||||||||||
Thereafter | 43 | 140 | 1,034 | — | — | |||||||||||||||
Total | $ | 352 | $ | 466 | $ | 2,728 | $ | 160 | $ | 18 | ||||||||||
Lease Commitments | ||||||||||||||||||||
At March 31, 2014, the Company had lease contracts for 59 aircraft, which have remaining noncancelable lease terms ranging from 2014 to 2021. Of these aircraft, 14 are non-operating (i.e. not in the Company's fleet) and subleased to third-party carriers. The majority of airport and terminal facilities are also leased. Rent expense for aircraft and facility leases was $75 million and $70 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||||||
Aircraft Commitments | ||||||||||||||||||||
As of March 31, 2014, the Company is committed to purchasing 65 B737 aircraft (28 B737-900ER aircraft and 37 B737 MAX aircraft), with deliveries in 2014 through 2022. In addition, the Company has options to purchase an additional 62 B737 aircraft and seven Q400 aircraft. | ||||||||||||||||||||
Capacity Purchase Agreements (CPAs) | ||||||||||||||||||||
At March 31, 2014, 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 one route 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 those due to 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 a 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 | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Equity [Abstract] | ' | |||||||||||||
SHAREHOLDERS' EQUITY | ' | |||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||
Dividends | ||||||||||||||
During the three months ended March 31, 2014, the Company declared and paid a quarterly dividend of $0.25 per share, or $17 million. | ||||||||||||||
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 in 2014. | ||||||||||||||
Share repurchase activity (in millions, except share amounts): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
2012 Repurchase Program - $250 million | 352,851 | $ | 30 | 373,185 | $ | 19 | ||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Components of accumulated other comprehensive income (loss), net of tax (in millions): | ||||||||||||||
March 31, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Marketable securities | $ | 2 | $ | — | ||||||||||
Employee benefit plans | (172 | ) | (173 | ) | ||||||||||
Interest rate derivatives | (11 | ) | (10 | ) | ||||||||||
Total | $ | (181 | ) | $ | (183 | ) | ||||||||
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 months ended March 31, 2014 and 2013, anti-dilutive shares excluded from the calculation of EPS were not material. |
OPERATING_SEGMENT_INFORMATION
OPERATING SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
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 one route 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 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 March 31, 2014 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 854 | $ | — | $ | — | $ | — | $ | 854 | $ | — | $ | 854 | ||||||||||||||
Regional | — | 186 | — | — | 186 | — | 186 | |||||||||||||||||||||
Total passenger revenues | 854 | 186 | — | — | 1,040 | — | 1,040 | |||||||||||||||||||||
CPA revenues | — | — | 91 | (91 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 23 | 1 | — | — | 24 | — | 24 | |||||||||||||||||||||
Other - net | 140 | 17 | 1 | — | 158 | — | 158 | |||||||||||||||||||||
Total operating revenues | 1,017 | 204 | 92 | (91 | ) | 1,222 | — | 1,222 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 576 | 151 | 86 | (90 | ) | 723 | — | 723 | ||||||||||||||||||||
Economic fuel | 318 | 48 | — | — | 366 | (8 | ) | 358 | ||||||||||||||||||||
Total operating expenses | 894 | 199 | 86 | (90 | ) | 1,089 | (8 | ) | 1,081 | |||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 5 | — | — | — | 5 | — | 5 | |||||||||||||||||||||
Interest expense | (8 | ) | — | (4 | ) | — | (12 | ) | — | (12 | ) | |||||||||||||||||
Other | 18 | (1 | ) | 1 | — | 18 | — | 18 | ||||||||||||||||||||
15 | (1 | ) | (3 | ) | — | 11 | — | 11 | ||||||||||||||||||||
Income (loss) before income tax | $ | 138 | $ | 4 | $ | 3 | $ | (1 | ) | $ | 144 | $ | 8 | $ | 152 | |||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 796 | $ | — | $ | — | $ | — | $ | 796 | $ | — | $ | 796 | ||||||||||||||
Regional | — | 182 | — | — | 182 | — | 182 | |||||||||||||||||||||
Total passenger revenues | 796 | 182 | — | — | 978 | — | 978 | |||||||||||||||||||||
CPA revenues | — | — | 94 | (94 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 25 | 1 | — | — | 26 | — | 26 | |||||||||||||||||||||
Other - net | 113 | 14 | 2 | — | 129 | — | 129 | |||||||||||||||||||||
Total operating revenues | 934 | 197 | 96 | (94 | ) | 1,133 | — | 1,133 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 547 | 147 | 89 | (95 | ) | 688 | — | 688 | ||||||||||||||||||||
Economic fuel | 323 | 46 | — | — | 369 | 12 | 381 | |||||||||||||||||||||
Total operating expenses | 870 | 193 | 89 | (95 | ) | 1,057 | 12 | 1,069 | ||||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 4 | — | — | — | 4 | — | 4 | |||||||||||||||||||||
Interest expense | (11 | ) | — | (3 | ) | (2 | ) | (16 | ) | — | (16 | ) | ||||||||||||||||
Other | 6 | — | — | 1 | 7 | — | 7 | |||||||||||||||||||||
(1 | ) | — | (3 | ) | (1 | ) | (5 | ) | — | (5 | ) | |||||||||||||||||
Income (loss) before income tax | $ | 63 | $ | 4 | $ | 4 | $ | — | $ | 71 | $ | (12 | ) | $ | 59 | |||||||||||||
(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 mark-to-market fuel-hedge accounting charges. | |||||||||||||||||||||||||||
Total assets were as follows (in millions): | ||||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Alaska(a) | $ | 6,124 | $ | 5,832 | ||||||||||||||||||||||||
Horizon | 849 | 840 | ||||||||||||||||||||||||||
Parent company | 2,913 | 2,762 | ||||||||||||||||||||||||||
Elimination of inter-company accounts | (3,825 | ) | (3,596 | ) | ||||||||||||||||||||||||
Consolidated | $ | 6,061 | $ | 5,838 | ||||||||||||||||||||||||
(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) | 3 Months Ended |
Mar. 31, 2014 | |
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. |
CASH_CASH_EQUIVALENTS_AND_MARK1
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES (TABLES) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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): | ||||||||||||||||
March 31, 2014 | Cost Basis | Unrealized | Unrealized Losses | Fair Value | ||||||||||||
Gains | ||||||||||||||||
Cash | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||
Cash equivalents | 85 | — | — | 85 | ||||||||||||
Cash and cash equivalents | 90 | — | — | 90 | ||||||||||||
U.S. government and agency securities | 284 | — | (1 | ) | 283 | |||||||||||
Foreign government bonds | 18 | — | — | 18 | ||||||||||||
Asset-back securities | 158 | — | — | 158 | ||||||||||||
Mortgage-back securities | 146 | 1 | (1 | ) | 146 | |||||||||||
Corporate notes and bonds | 696 | 5 | (1 | ) | 700 | |||||||||||
Municipal securities | 25 | — | — | 25 | ||||||||||||
Marketable securities | 1,327 | 6 | (3 | ) | 1,330 | |||||||||||
Total | $ | 1,417 | $ | 6 | $ | (3 | ) | $ | 1,420 | |||||||
December 31, 2013 | Cost Basis | Unrealized | Unrealized Losses | Fair Value | ||||||||||||
Gains | ||||||||||||||||
Cash | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||
Cash equivalents | 71 | — | — | 71 | ||||||||||||
Cash and cash equivalents | 80 | — | — | 80 | ||||||||||||
U.S. government and agency securities | 295 | 1 | (2 | ) | 294 | |||||||||||
Foreign government bonds | 11 | — | — | 11 | ||||||||||||
Asset-back securities | 146 | — | — | 146 | ||||||||||||
Mortgage-back securities | 144 | 1 | (2 | ) | 143 | |||||||||||
Corporate notes and bonds | 628 | 4 | (2 | ) | 630 | |||||||||||
Municipal securities | 26 | — | — | 26 | ||||||||||||
Marketable securities | 1,250 | 6 | (6 | ) | 1,250 | |||||||||||
Total | $ | 1,330 | $ | 6 | $ | (6 | ) | $ | 1,330 | |||||||
Schedule of Realized Gain (Loss) [Table Text Block] | ' | |||||||||||||||
Activity for marketable securities (in millions): | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Proceeds from sales and maturities | $ | 227 | $ | 239 | ||||||||||||
Gross realized gains | 1 | 2 | ||||||||||||||
Gross realized losses | (1 | ) | (1 | ) | ||||||||||||
Schedule of Debt Investment Maturities [Table Text Block] | ' | |||||||||||||||
Maturities for marketable securities (in millions): | ||||||||||||||||
March 31, 2014 | Cost Basis | Fair Value | ||||||||||||||
Due in one year or less | $ | 144 | $ | 145 | ||||||||||||
Due after one year through five years | 1,176 | 1,178 | ||||||||||||||
Due after five years through 10 years | 7 | 7 | ||||||||||||||
Total | $ | 1,327 | $ | 1,330 | ||||||||||||
DERIVATIVE_INSTRUMENTS_TABLES
DERIVATIVE INSTRUMENTS (TABLES) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Derivative Instruments Not Designated as Hedges | ||||||||
Fuel hedge contracts | ||||||||
Fuel hedge contracts, current assets | $ | 12 | $ | 12 | ||||
Fuel hedge contracts, noncurrent assets | 3 | 4 | ||||||
Fuel hedge contracts, current liabilities | (2 | ) | — | |||||
Derivative Instruments Designated as Hedges | ||||||||
Interest rate swaps | ||||||||
Other accrued liabilities | (7 | ) | (7 | ) | ||||
Other liabilities | (11 | ) | (10 | ) | ||||
Losses in accumulated other comprehensive loss (AOCL) | (18 | ) | (17 | ) | ||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Derivative Instruments Not Designated as Hedges | ||||||||
Fuel hedge contracts | ||||||||
Gains (losses) recognized in aircraft fuel expense | $ | (10 | ) | $ | (24 | ) | ||
Derivative Instruments Designated as Hedges | ||||||||
Interest rate swaps | ||||||||
Losses recognized in aircraft rent | (2 | ) | (1 | ) | ||||
Gains (losses) recognized in other comprehensive income (OCI) | (3 | ) | 3 | |||||
FAIR_VALUE_MEASUREMENTS_TABLES
FAIR VALUE MEASUREMENTS (TABLES) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | ' | |||||||||||
Fair values of financial instruments on the consolidated balance sheet (in millions): | ||||||||||||
March 31, 2014 | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Marketable securities | ||||||||||||
U.S. government and agency securities | $ | 283 | $ | — | $ | 283 | ||||||
Foreign government bonds | — | 18 | 18 | |||||||||
Asset-back securities | — | 158 | 158 | |||||||||
Mortgage-back securities | — | 146 | 146 | |||||||||
Corporate notes and bonds | — | 700 | 700 | |||||||||
Municipal securities | — | 25 | 25 | |||||||||
Derivative instruments | ||||||||||||
Call options | — | 15 | 15 | |||||||||
Liabilities | ||||||||||||
Derivative instruments | ||||||||||||
Fuel hedge contracts | — | (2 | ) | (2 | ) | |||||||
Interest rate swap agreements | — | (18 | ) | (18 | ) | |||||||
December 31, 2013 | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Marketable securities | ||||||||||||
U.S. government and agency securities | $ | 294 | $ | — | $ | 294 | ||||||
Foreign government bonds | — | 11 | 11 | |||||||||
Asset-back securities | — | 146 | 146 | |||||||||
Mortgage-back securities | — | 143 | 143 | |||||||||
Corporate notes and bonds | — | 630 | 630 | |||||||||
Municipal securities | — | 26 | 26 | |||||||||
Derivative instruments | ||||||||||||
Call options | — | 16 | 16 | |||||||||
Liabilities | ||||||||||||
Derivative instruments | ||||||||||||
Fuel hedge contracts | — | — | — | |||||||||
Interest rate swap agreements | — | (17 | ) | (17 | ) | |||||||
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): | ||||||||||||
March 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Carrying amount | $ | 678 | $ | 703 | ||||||||
Fair value | 733 | 762 | ||||||||||
MILEAGE_PLAN_MILEAGE_PLAN_TABL
MILEAGE PLAN MILEAGE PLAN (TABLES) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
MILEAGE PLAN [Abstract] | ' | |||||||
Mileage Plan Liabilities [Table Text Block] | ' | |||||||
Alaska's Mileage Plan liabilities and deferrals on the consolidated balance sheets (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Current Liabilities: | ||||||||
Other accrued liabilities | $ | 335 | $ | 314 | ||||
Other Liabilities and Credits: | ||||||||
Deferred revenue | 324 | 323 | ||||||
Other liabilities | 19 | 19 | ||||||
Total | $ | 678 | $ | 656 | ||||
Mileage Plan Revenue [Table Text Block] | ' | |||||||
Alaska's Mileage Plan revenue included in the consolidated statements of operations (in millions): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Passenger revenues | $ | 55 | $ | 46 | ||||
Other - net revenues | 73 | 54 | ||||||
Total | $ | 128 | $ | 100 | ||||
LONGTERM_DEBT_TABLES
LONG-TERM DEBT (TABLES) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
Long-term debt obligations on the consolidated balance sheet (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Fixed-rate notes payable due through 2024 | $ | 678 | $ | 703 | ||||
Variable-rate notes payable due through 2023 | 156 | 168 | ||||||
Long-term debt | 834 | 871 | ||||||
Less current portion | 113 | 117 | ||||||
Total | $ | 721 | $ | 754 | ||||
Weighted-average fixed-interest rate | 5.7 | % | 5.7 | % | ||||
Weighted-average variable-interest rate | 1.7 | % | 1.7 | % | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||
At March 31, 2014, long-term debt principal payments for the next five years and thereafter are as follows (in millions): | ||||||||
Total | ||||||||
Remainder of 2014 | $ | 80 | ||||||
2015 | 113 | |||||||
2016 | 111 | |||||||
2017 | 116 | |||||||
2018 | 147 | |||||||
Thereafter | 267 | |||||||
Total | $ | 834 | ||||||
EMPLOYEE_BENEFIT_PLANS_TABLES
EMPLOYEE BENEFIT PLANS (TABLES) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
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 March 31, 2014 (in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
Qualified | Nonqualified | Postretirement Medical | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 8 | $ | 11 | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 20 | 18 | — | 1 | 1 | 1 | ||||||||||||||||||
Expected return on assets | (29 | ) | (27 | ) | — | — | — | — | ||||||||||||||||
Amortization of prior service cost | — | — | — | — | — | — | ||||||||||||||||||
Recognized actuarial loss (gain) | 3 | 10 | — | — | (1 | ) | — | |||||||||||||||||
Total | $ | 2 | $ | 12 | $ | — | $ | 1 | $ | 1 | $ | 2 | ||||||||||||
COMMITMENTS_TABLES
COMMITMENTS (TABLES) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
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): | ||||||||||||||||||||
March 31, 2014 | Aircraft Leases | Facility Leases | Aircraft Commitments | Capacity Purchase Agreements | Engine Maintenance | |||||||||||||||
Remainder of 2014 | $ | 37 | $ | 72 | $ | 238 | $ | 38 | $ | 8 | ||||||||||
2015 | 103 | 85 | 369 | 44 | 10 | |||||||||||||||
2016 | 82 | 75 | 304 | 32 | — | |||||||||||||||
2017 | 51 | 71 | 354 | 32 | — | |||||||||||||||
2018 | 36 | 23 | 429 | 14 | — | |||||||||||||||
Thereafter | 43 | 140 | 1,034 | — | — | |||||||||||||||
Total | $ | 352 | $ | 466 | $ | 2,728 | $ | 160 | $ | 18 | ||||||||||
SHAREHOLDERS_EQUITY_TABLES
SHAREHOLDERS' EQUITY (TABLES) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Equity [Abstract] | ' | |||||||||||||
Schedule of Treasury Stock by Class [Table Text Block] | ' | |||||||||||||
Share repurchase activity (in millions, except share amounts): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
2012 Repurchase Program - $250 million | 352,851 | $ | 30 | 373,185 | $ | 19 | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||
Components of accumulated other comprehensive income (loss), net of tax (in millions): | ||||||||||||||
March 31, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Marketable securities | $ | 2 | $ | — | ||||||||||
Employee benefit plans | (172 | ) | (173 | ) | ||||||||||
Interest rate derivatives | (11 | ) | (10 | ) | ||||||||||
Total | $ | (181 | ) | $ | (183 | ) |
OPERATING_SEGMENT_INFORMATION_
OPERATING SEGMENT INFORMATION (TABLES) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||||||||||
Operating segment information is as follows (in millions): | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 854 | $ | — | $ | — | $ | — | $ | 854 | $ | — | $ | 854 | ||||||||||||||
Regional | — | 186 | — | — | 186 | — | 186 | |||||||||||||||||||||
Total passenger revenues | 854 | 186 | — | — | 1,040 | — | 1,040 | |||||||||||||||||||||
CPA revenues | — | — | 91 | (91 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 23 | 1 | — | — | 24 | — | 24 | |||||||||||||||||||||
Other - net | 140 | 17 | 1 | — | 158 | — | 158 | |||||||||||||||||||||
Total operating revenues | 1,017 | 204 | 92 | (91 | ) | 1,222 | — | 1,222 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 576 | 151 | 86 | (90 | ) | 723 | — | 723 | ||||||||||||||||||||
Economic fuel | 318 | 48 | — | — | 366 | (8 | ) | 358 | ||||||||||||||||||||
Total operating expenses | 894 | 199 | 86 | (90 | ) | 1,089 | (8 | ) | 1,081 | |||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 5 | — | — | — | 5 | — | 5 | |||||||||||||||||||||
Interest expense | (8 | ) | — | (4 | ) | — | (12 | ) | — | (12 | ) | |||||||||||||||||
Other | 18 | (1 | ) | 1 | — | 18 | — | 18 | ||||||||||||||||||||
15 | (1 | ) | (3 | ) | — | 11 | — | 11 | ||||||||||||||||||||
Income (loss) before income tax | $ | 138 | $ | 4 | $ | 3 | $ | (1 | ) | $ | 144 | $ | 8 | $ | 152 | |||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Alaska | ||||||||||||||||||||||||||||
Mainline | Regional | Horizon | Consolidating | Air Group Adjusted(a) | Special Items(b) | Consolidated | ||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Passenger | ||||||||||||||||||||||||||||
Mainline | $ | 796 | $ | — | $ | — | $ | — | $ | 796 | $ | — | $ | 796 | ||||||||||||||
Regional | — | 182 | — | — | 182 | — | 182 | |||||||||||||||||||||
Total passenger revenues | 796 | 182 | — | — | 978 | — | 978 | |||||||||||||||||||||
CPA revenues | — | — | 94 | (94 | ) | — | — | — | ||||||||||||||||||||
Freight and mail | 25 | 1 | — | — | 26 | — | 26 | |||||||||||||||||||||
Other - net | 113 | 14 | 2 | — | 129 | — | 129 | |||||||||||||||||||||
Total operating revenues | 934 | 197 | 96 | (94 | ) | 1,133 | — | 1,133 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Operating expenses, excluding fuel | 547 | 147 | 89 | (95 | ) | 688 | — | 688 | ||||||||||||||||||||
Economic fuel | 323 | 46 | — | — | 369 | 12 | 381 | |||||||||||||||||||||
Total operating expenses | 870 | 193 | 89 | (95 | ) | 1,057 | 12 | 1,069 | ||||||||||||||||||||
Nonoperating income (expense) | ||||||||||||||||||||||||||||
Interest income | 4 | — | — | — | 4 | — | 4 | |||||||||||||||||||||
Interest expense | (11 | ) | — | (3 | ) | (2 | ) | (16 | ) | — | (16 | ) | ||||||||||||||||
Other | 6 | — | — | 1 | 7 | — | 7 | |||||||||||||||||||||
(1 | ) | — | (3 | ) | (1 | ) | (5 | ) | — | (5 | ) | |||||||||||||||||
Income (loss) before income tax | $ | 63 | $ | 4 | $ | 4 | $ | — | $ | 71 | $ | (12 | ) | $ | 59 | |||||||||||||
(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 mark-to-market fuel-hedge accounting charges. | |||||||||||||||||||||||||||
Total assets were as follows (in millions): | ||||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Alaska(a) | $ | 6,124 | $ | 5,832 | ||||||||||||||||||||||||
Horizon | 849 | 840 | ||||||||||||||||||||||||||
Parent company | 2,913 | 2,762 | ||||||||||||||||||||||||||
Elimination of inter-company accounts | (3,825 | ) | (3,596 | ) | ||||||||||||||||||||||||
Consolidated | $ | 6,061 | $ | 5,838 | ||||||||||||||||||||||||
(a) | There are no assets associated with purchased capacity flying at Alaska. |
CASH_CASH_EQUIVALENTS_AND_MARK2
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' | ' |
Cash and Cash Equivalents [Abstract] | ' | ' | ' | ' |
Cash | $5 | ' | $9 | ' |
Money market funds and other securities | 85 | ' | 71 | ' |
Cash and cash equivalents | 90 | 95 | 80 | 122 |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' |
Marketable securities, Cost Basis | 1,327 | ' | 1,250 | ' |
Marketable securities, Unrealized Gains | 6 | ' | 6 | ' |
Marketable securities, Unrealized Losses | -3 | ' | -6 | ' |
Marketable securities, Fair Value | 1,330 | ' | 1,250 | ' |
Cash and marketables securities, Cost Basis | 1,417 | ' | 1,330 | ' |
Total cash and marketable securities | 1,420 | ' | 1,330 | ' |
Available-for-sale Securities, Activity [Abstract] | ' | ' | ' | ' |
Proceeds from sales and maturities | 227 | 239 | ' | ' |
Gross realized gains | 1 | 2 | ' | ' |
Gross realized losses | -1 | -1 | ' | ' |
U.S. government and agency securities [Member] | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' |
Marketable securities, Cost Basis | 284 | ' | 295 | ' |
Marketable securities, Unrealized Gains | 0 | ' | 1 | ' |
Marketable securities, Unrealized Losses | -1 | ' | -2 | ' |
Marketable securities, Fair Value | 283 | ' | 294 | ' |
Foreign government bonds [Member] | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' |
Marketable securities, Cost Basis | 18 | ' | 11 | ' |
Marketable securities, Unrealized Gains | 0 | ' | 0 | ' |
Marketable securities, Unrealized Losses | 0 | ' | 0 | ' |
Marketable securities, Fair Value | 18 | ' | 11 | ' |
Asset-backed securities [Member] | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' |
Marketable securities, Cost Basis | 158 | ' | 146 | ' |
Marketable securities, Unrealized Gains | 0 | ' | 0 | ' |
Marketable securities, Unrealized Losses | 0 | ' | 0 | ' |
Marketable securities, Fair Value | 158 | ' | 146 | ' |
Mortgage-backed securities [Member] | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' |
Marketable securities, Cost Basis | 146 | ' | 144 | ' |
Marketable securities, Unrealized Gains | 1 | ' | 1 | ' |
Marketable securities, Unrealized Losses | -1 | ' | -2 | ' |
Marketable securities, Fair Value | 146 | ' | 143 | ' |
Corporate notes and bonds [Member] | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' |
Marketable securities, Cost Basis | 696 | ' | 628 | ' |
Marketable securities, Unrealized Gains | 5 | ' | 4 | ' |
Marketable securities, Unrealized Losses | -1 | ' | -2 | ' |
Marketable securities, Fair Value | 700 | ' | 630 | ' |
Municipal securities [Member] | ' | ' | ' | ' |
Available-for-sale Securities, Current [Abstract] | ' | ' | ' | ' |
Marketable securities, Cost Basis | 25 | ' | 26 | ' |
Marketable securities, Unrealized Gains | 0 | ' | 0 | ' |
Marketable securities, Unrealized Losses | 0 | ' | 0 | ' |
Marketable securities, Fair Value | $25 | ' | $26 | ' |
CASH_CASH_EQUIVALENTS_AND_MARK3
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES - MATURITIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Cost Basis [Abstract] | ' | ' |
Due in one year or less | $144 | ' |
Due after one year through five years | 1,176 | ' |
Due after five years through 10 years | 7 | ' |
Marketable securities, Cost Basis | 1,327 | 1,250 |
Fair Value [Abstract] | ' | ' |
Due in one year or less | 145 | ' |
Due after one year through five years | 1,178 | ' |
Due after five years through 10 years | 7 | ' |
Marketable securities, Fair Value | $1,330 | $1,250 |
DERIVATIVE_INSTRUMENTS_BALANCE
DERIVATIVE INSTRUMENTS - BALANCE SHEET CLASSIFICATION (DETAILS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Accumulated other comprehensive (loss) | ($181) | ($183) |
Posted collateral | 8 | 7 |
Fuel hedge contracts [Member] | Derivative Instruments Not Designated as Hedges [Member] | Fuel hedge contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | 12 | 12 |
Derivative Liabilities, Current | -2 | 0 |
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 | 3 | 4 |
Interest rate swaps agreements [Member] | Derivative Instruments Designated as Hedges [Member] | Other accrued liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities, Current | -7 | -7 |
Interest rate swaps agreements [Member] | Derivative Instruments Designated as Hedges [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities, Noncurrent | -11 | -10 |
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) | -18 | -17 |
Derivative Gain (Loss) in Accumulated Other Comprehensive Loss To Be Reclassified Within Next Twelve Months | ($7) | ' |
DERIVATIVE_INSTRUMENTS_INCOME_
DERIVATIVE INSTRUMENTS - INCOME STATEMENT (DETAILS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
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) | ($24) |
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) | -3 | 3 |
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 | ($2) | ($1) |
DERIVATIVE_INSTRUMENTS_FAIR_VA
DERIVATIVE INSTRUMENTS - FAIR VALUE OF HEDGE POSITIONS (DETAILS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative [Line Items] | ' | ' |
Net cash received (paid) to for new positions and settlements | ($7) | $0 |
B737-800 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Operating Leases, Number of Units (in Aircraft) | 6 | ' |
Not Designated as Hedging Instrument [Member] | Fuel hedge contracts [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fuel hedge contracts outstanding (in barrels) | 264,000,000 | ' |
FAIR_VALUE_MEASUREMENTS_FAIR_V
FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (DETAILS) (Recurring [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | $15 | $16 |
Derivative instruments, liabilities | -2 | 0 |
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 | 15 | 16 |
Derivative instruments, liabilities | -2 | 0 |
Interest rate swaps agreements [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, liabilities | -18 | -17 |
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 | -18 | -17 |
U.S. government and agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 283 | 294 |
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 | 283 | 294 |
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 | 18 | 11 |
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 | 18 | 11 |
Asset-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 158 | 146 |
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 | 158 | 146 |
Mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 146 | 143 |
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 | 146 | 143 |
Corporate notes and bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 700 | 630 |
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 | 700 | 630 |
Municipal securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 25 | 26 |
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 | $25 | $26 |
FAIR_VALUE_MEASUREMENTS_LONGTE
FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (DETAILS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt | $678 | $703 |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt | $733 | $762 |
MILEAGE_PLAN_MILEAGE_PLAN_DETA
MILEAGE PLAN MILEAGE PLAN (DETAILS) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Mileage Plan [Line Items] | ' | ' | ' |
Other accrued liabilities | $672 | ' | $624 |
Deferred revenue | 334 | ' | 335 |
Other liabilities | 309 | ' | 308 |
Total passenger revenue | 1,040 | 978 | ' |
Other - net | 158 | 129 | ' |
Liabilities From Mileage Plan [Member] | ' | ' | ' |
Mileage Plan [Line Items] | ' | ' | ' |
Other accrued liabilities | 335 | ' | 314 |
Deferred revenue | 324 | ' | 323 |
Other liabilities | 19 | ' | 19 |
Liabilities | 678 | ' | 656 |
Revenue From Mileage Plan [Member] | ' | ' | ' |
Mileage Plan [Line Items] | ' | ' | ' |
Total passenger revenue | 55 | 46 | ' |
Other - net | 73 | 54 | ' |
Total Mileage Plan Revenues | $128 | $100 | ' |
LONGTERM_DEBT_SCHEDULE_OF_LONG
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (DETAILS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Scheduled Debt Payments [Member] | Fixed-rate notes payable due through 2024 | Fixed-rate notes payable due through 2024 | Variable-rate notes payable due through 2023 | Variable-rate notes payable due through 2023 | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | $834 | $871 | ' | $678 | $703 | $156 | $168 |
Less current portion | 113 | 117 | ' | ' | ' | ' | ' |
Long-term debt, net of current portion | 721 | 754 | ' | ' | ' | ' | ' |
Weighted-average fixed-interest rate | 5.70% | 5.70% | ' | ' | ' | ' | ' |
Weighted-average variable-interest rate | 1.70% | 1.70% | ' | ' | ' | ' | ' |
Debt payments | ' | ' | 37 | ' | ' | ' | ' |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Remainder of 2014 | 80 | ' | ' | ' | ' | ' | ' |
2015 | 113 | ' | ' | ' | ' | ' | ' |
2016 | 111 | ' | ' | ' | ' | ' | ' |
2017 | 116 | ' | ' | ' | ' | ' | ' |
2018 | 147 | ' | ' | ' | ' | ' | ' |
Thereafter | 267 | ' | ' | ' | ' | ' | ' |
Long-term Debt | $834 | $871 | ' | $678 | $703 | $156 | $168 |
LONGTERM_DEBT_LINE_OF_CREDIT_D
LONG-TERM DEBT - LINE OF CREDIT (DETAILS) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Qualified Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' |
Service cost | $8 | $11 |
Interest cost | 20 | 18 |
Expected return on assets | -29 | -27 |
Amortization of prior service cost | 0 | 0 |
Recognized actuarial loss (gain) | 3 | 10 |
Net pension expense | 2 | 12 |
Nonqualified Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' |
Service cost | 0 | 0 |
Interest cost | 0 | 1 |
Expected return on assets | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Recognized actuarial loss (gain) | 0 | 0 |
Net pension expense | 0 | 1 |
Postretirement Medical Benefits [Member] | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' |
Service cost | 1 | 1 |
Interest cost | 1 | 1 |
Expected return on assets | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Recognized actuarial loss (gain) | -1 | 0 |
Net pension expense | $1 | $2 |
COMMITMENTS_DETAILS
COMMITMENTS (DETAILS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
carriers | ||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' |
Rent Expense | $75 | $70 |
Airline, Capacity Purchase Arrangements, Carriers | 3 | ' |
Airline, Capacity Purchase Arrangements, Percent | 100.00% | ' |
Aircraft Commitments [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' |
Remainder of 2014 | 238 | ' |
2015 | 369 | ' |
2016 | 304 | ' |
2017 | 354 | ' |
2018 | 429 | ' |
Thereafter | 1,034 | ' |
Total | 2,728 | ' |
Capacity Purchase Agreements [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' |
Remainder of 2014 | 38 | ' |
2015 | 44 | ' |
2016 | 32 | ' |
2017 | 32 | ' |
2018 | 14 | ' |
Thereafter | 0 | ' |
Total | 160 | ' |
Engine Maintenance [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' |
Remainder of 2014 | 8 | ' |
2015 | 10 | ' |
2016 | 0 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
Thereafter | 0 | ' |
Total | 18 | ' |
Aircraft Leases [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | ' |
Operating Leases, Number of Units | 59 | ' |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' |
Remainder of 2014 | 37 | ' |
2015 | 103 | ' |
2016 | 82 | ' |
2017 | 51 | ' |
2018 | 36 | ' |
Thereafter | 43 | ' |
Total | 352 | ' |
Facility Leases [Member] | ' | ' |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' |
Remainder of 2014 | 72 | ' |
2015 | 85 | ' |
2016 | 75 | ' |
2017 | 71 | ' |
2018 | 23 | ' |
Thereafter | 140 | ' |
Total | $466 | ' |
B737 [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' |
Committed to Purchase (in Aircraft) | 65 | ' |
Options to Purchase Additional (in Aircraft) | 62 | ' |
B737-900ER [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' |
Committed to Purchase (in Aircraft) | 28 | ' |
B737 MAX [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' |
Committed to Purchase (in Aircraft) | 37 | ' |
Q400 [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | ' |
Options to Purchase Additional (in Aircraft) | 7 | ' |
Non Operating Aircraft [Member] | ' | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | ' |
Operating Leases, Number of Units | 14 | ' |
SHAREHOLDERS_EQUITY_SHAREHOLDE
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY, COMMON STOCK REPURCHASE (Details) (September 2012 Stock Repurchase Program [Member], USD $) | 1 Months Ended | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 |
September 2012 Stock Repurchase Program [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | $250 | ' | ' |
Stock Repurchased During Period, Shares | ' | 352,851 | 373,185 |
Stock Repurchased During Period, Value | ' | $30 | $19 |
SHAREHOLDERS_EQUITY_SHAREHOLDE1
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY, ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Marketable securities | $2 | $0 |
Employee benefit plans | -172 | -173 |
Interest rate derivatives | -11 | -10 |
Accumulated other comprehensive (loss) | ($181) | ($183) |
SHAREHOLDERS_EQUITY_SHAREHOLDE2
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY, CASH DIVIDEND (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Equity [Abstract] | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.25 | $0 |
OPERATING_SEGMENT_INFORMATION_1
OPERATING SEGMENT INFORMATION (DETAILS) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Operating revenues | ' | ' | ||
Passenger, Mainline | $854 | $796 | ||
Passenger, Regional | 186 | 182 | ||
Total passenger revenue | 1,040 | 978 | ||
Segment Reporting Information, Intersegment Revenue | 0 | 0 | ||
Freight and mail | 24 | 26 | ||
Other - net revenue | 158 | 129 | ||
Total Operating Revenues | 1,222 | 1,133 | ||
Operating expenses | ' | ' | ||
Operating expenses, excluding fuel | 723 | 688 | ||
Economic fuel | 358 | 381 | ||
Total Operating Expenses | 1,081 | 1,069 | ||
Nonoperating income (expense) | ' | ' | ||
Interest income | 5 | 4 | ||
Interest expense | -12 | -16 | ||
Other | 18 | 7 | ||
Nonoperating Income (Expense) Total | 11 | -5 | ||
Income (loss) before income tax | 152 | 59 | ||
Air Group Adjusted [Member] | ' | ' | ||
Operating revenues | ' | ' | ||
Passenger, Mainline | 854 | [1] | 796 | [1] |
Passenger, Regional | 186 | [1] | 182 | [1] |
Total passenger revenue | 1,040 | [1] | 978 | [1] |
Segment Reporting Information, Intersegment Revenue | 0 | [1] | 0 | [1] |
Freight and mail | 24 | [1] | 26 | [1] |
Other - net revenue | 158 | [1] | 129 | [1] |
Total Operating Revenues | 1,222 | [1] | 1,133 | [1] |
Operating expenses | ' | ' | ||
Operating expenses, excluding fuel | 723 | [1] | 688 | [1] |
Economic fuel | 366 | [1] | 369 | [1] |
Total Operating Expenses | 1,089 | [1] | 1,057 | [1] |
Nonoperating income (expense) | ' | ' | ||
Interest income | 5 | [1] | 4 | [1] |
Interest expense | -12 | [1] | -16 | [1] |
Other | 18 | [1] | 7 | [1] |
Nonoperating Income (Expense) Total | 11 | [1] | -5 | [1] |
Income (loss) before income tax | 144 | [1] | 71 | [1] |
Alaska Mainline [Member] | ' | ' | ||
Operating revenues | ' | ' | ||
Passenger, Mainline | 854 | 796 | ||
Passenger, Regional | 0 | 0 | ||
Total passenger revenue | 854 | 796 | ||
Segment Reporting Information, Intersegment Revenue | 0 | 0 | ||
Freight and mail | 23 | 25 | ||
Other - net revenue | 140 | 113 | ||
Total Operating Revenues | 1,017 | 934 | ||
Operating expenses | ' | ' | ||
Operating expenses, excluding fuel | 576 | 547 | ||
Economic fuel | 318 | 323 | ||
Total Operating Expenses | 894 | 870 | ||
Nonoperating income (expense) | ' | ' | ||
Interest income | 5 | 4 | ||
Interest expense | -8 | -11 | ||
Other | 18 | 6 | ||
Nonoperating Income (Expense) Total | 15 | -1 | ||
Income (loss) before income tax | 138 | 63 | ||
Alaska Regional [Member] | ' | ' | ||
Operating revenues | ' | ' | ||
Passenger, Mainline | 0 | 0 | ||
Passenger, Regional | 186 | 182 | ||
Total passenger revenue | 186 | 182 | ||
Segment Reporting Information, Intersegment Revenue | 0 | 0 | ||
Freight and mail | 1 | 1 | ||
Other - net revenue | 17 | 14 | ||
Total Operating Revenues | 204 | 197 | ||
Operating expenses | ' | ' | ||
Operating expenses, excluding fuel | 151 | 147 | ||
Economic fuel | 48 | 46 | ||
Total Operating Expenses | 199 | 193 | ||
Nonoperating income (expense) | ' | ' | ||
Interest income | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Other | -1 | 0 | ||
Nonoperating Income (Expense) Total | -1 | 0 | ||
Income (loss) before income tax | 4 | 4 | ||
Horizon [Member] | ' | ' | ||
Operating revenues | ' | ' | ||
Passenger, Mainline | 0 | 0 | ||
Passenger, Regional | 0 | 0 | ||
Total passenger revenue | 0 | 0 | ||
Segment Reporting Information, Intersegment Revenue | 91 | 94 | ||
Freight and mail | 0 | 0 | ||
Other - net revenue | 1 | 2 | ||
Total Operating Revenues | 92 | 96 | ||
Operating expenses | ' | ' | ||
Operating expenses, excluding fuel | 86 | 89 | ||
Economic fuel | 0 | 0 | ||
Total Operating Expenses | 86 | 89 | ||
Nonoperating income (expense) | ' | ' | ||
Interest income | 0 | 0 | ||
Interest expense | -4 | -3 | ||
Other | 1 | 0 | ||
Nonoperating Income (Expense) Total | -3 | -3 | ||
Income (loss) before income tax | 3 | 4 | ||
Intersegment Elimination [Member] | ' | ' | ||
Operating revenues | ' | ' | ||
Passenger, Mainline | 0 | 0 | ||
Passenger, Regional | 0 | 0 | ||
Total passenger revenue | 0 | 0 | ||
Segment Reporting Information, Intersegment Revenue | -91 | -94 | ||
Freight and mail | 0 | 0 | ||
Other - net revenue | 0 | 0 | ||
Total Operating Revenues | -91 | -94 | ||
Operating expenses | ' | ' | ||
Operating expenses, excluding fuel | -90 | -95 | ||
Economic fuel | 0 | 0 | ||
Total Operating Expenses | -90 | -95 | ||
Nonoperating income (expense) | ' | ' | ||
Interest income | 0 | 0 | ||
Interest expense | 0 | -2 | ||
Other | 0 | 1 | ||
Nonoperating Income (Expense) Total | 0 | -1 | ||
Income (loss) before income tax | -1 | 0 | ||
Special Revenue and Charges [Member] | ' | ' | ||
Operating revenues | ' | ' | ||
Passenger, Mainline | 0 | 0 | ||
Passenger, Regional | 0 | 0 | ||
Total passenger revenue | 0 | 0 | ||
Segment Reporting Information, Intersegment Revenue | 0 | 0 | ||
Freight and mail | 0 | 0 | ||
Other - net revenue | 0 | 0 | ||
Total Operating Revenues | 0 | 0 | ||
Operating expenses | ' | ' | ||
Operating expenses, excluding fuel | 0 | 0 | ||
Economic fuel | -8 | [2] | 12 | [2] |
Total Operating Expenses | -8 | [2] | 12 | [2] |
Nonoperating income (expense) | ' | ' | ||
Interest income | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Other | 0 | 0 | ||
Nonoperating Income (Expense) Total | 0 | 0 | ||
Income (loss) before income tax | $8 | [2] | ($12) | [2] |
[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 mark-to-market fuel-hedge accounting charges. |
OPERATING_SEGMENT_INFORMATION_2
OPERATING SEGMENT INFORMATION, ASSETS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Total assets | $6,061 | $5,838 | ||
Alaska Airlines [Member] | ' | ' | ||
Total assets | 6,124 | [1] | 5,832 | [1] |
Horizon [Member] | ' | ' | ||
Total assets | 849 | 840 | ||
Parent [Member] | ' | ' | ||
Total assets | 2,913 | 2,762 | ||
Intersegment Elimination [Member] | ' | ' | ||
Total assets | ($3,825) | ($3,596) | ||
[1] | There are no assets associated with purchased capacity flying at Alaska. |