DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | ALASKA AIR GROUP, INC. | |
Entity Central Index Key | 766,421 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 123,252,559 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 78 | $ 73 |
Marketable securities | 1,486 | 1,255 |
Total cash and marketable securities | 1,564 | 1,328 |
Receivables - net | 235 | 212 |
Inventories and supplies - net | 45 | 51 |
Prepaid expenses and other current assets | 79 | 72 |
Total Current Assets | 1,923 | 1,663 |
Property and Equipment | ||
Aircraft and other flight equipment | 5,945 | 5,690 |
Other property and equipment | 967 | 955 |
Deposits for future flight equipment | 617 | 771 |
Property and Equipment Total | 7,529 | 7,416 |
Less accumulated depreciation and amortization | 2,699 | 2,614 |
Total Property and Equipment - Net | 4,830 | 4,802 |
Other Assets | 76 | 65 |
Total Assets | 6,829 | 6,530 |
Current Liabilities | ||
Accounts payable | 63 | 63 |
Accrued wages, vacation and payroll taxes | 213 | 298 |
Air traffic liability | 868 | 669 |
Other accrued liabilities | 809 | 661 |
Current portion of long-term debt | 116 | 114 |
Total Current Liabilities | 2,069 | 1,805 |
Long-Term Debt, Net of Current Portion | 531 | 569 |
Other Liabilities and Credits | ||
Deferred income taxes | 678 | 682 |
Deferred revenue | 467 | 431 |
Obligation for pension and postretirement medical benefits | 270 | 270 |
Other liabilities | 359 | 362 |
Other Liabilities and Credits Totals | $ 1,774 | $ 1,745 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding | $ 0 | $ 0 |
Common stock, $0.01 par value, Authorized: 200,000,000 shares, Issued: 2016 - 128,901,410 shares; 2015 - 128,442,099 shares, Outstanding: 2016 - 123,913,223 shares; 2015 - 125,175,325 shares | 1 | 1 |
Capital in excess of par value | 86 | 73 |
Treasury stock (common), at cost: 2016 - 4,988,187 shares; 2015 - 3,266,774 shares | (377) | (250) |
Accumulated other comprehensive loss | (294) | (303) |
Retained earnings | 3,039 | 2,890 |
Total Shareholders' Equity | 2,455 | 2,411 |
Total Liabilities and Shareholders' Equity | $ 6,829 | $ 6,530 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Stockholders' Equity: | ||
Preferred Stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 128,901,410 | 128,442,099 |
Common stock, shares outstanding (shares) | 123,913,223 | 125,175,325 |
Treasury Stock, Shares (shares) | 4,988,187 | 3,266,774 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Revenues | ||
Passenger, Mainline | $ 927 | $ 901 |
Passenger, Regional | 206 | 186 |
Total passenger revenue | 1,133 | 1,087 |
Freight and mail | 24 | 23 |
Other - net | 190 | 159 |
Total Operating Revenues | 1,347 | 1,269 |
Operating Expenses | ||
Wages and benefits | 336 | 306 |
Variable incentive pay | 32 | 26 |
Aircraft fuel, including hedging gains and losses | 167 | 235 |
Aircraft maintenance | 68 | 63 |
Aircraft rent | 29 | 26 |
Landing fees and other rentals | 80 | 71 |
Contracted services | 60 | 52 |
Selling expenses | 49 | 53 |
Depreciation and amortization | 88 | 76 |
Food and beverage service | 31 | 25 |
Regional Carrier Expense | 23 | 15 |
Other | 94 | 83 |
Total Operating Expenses | 1,057 | 1,031 |
Operating Income | 290 | 238 |
Nonoperating Income (Expense) | ||
Interest income | 6 | 5 |
Interest expense | (13) | (11) |
Interest capitalized | 8 | 8 |
Other - net | 1 | 0 |
Nonoperating Income (Expense) Total | 2 | 2 |
Income before income tax | 292 | 240 |
Income tax expense | 108 | 91 |
Net Income | $ 184 | $ 149 |
Basic Earnings Per Share (usd per share) | $ 1.47 | $ 1.13 |
Diluted Earnings Per Share (usd per share) | $ 1.46 | $ 1.12 |
Shares used for computation: | ||
Basic shares (shares) | 124,550 | 131,120 |
Diluted shares (shares) | 125,328 | 132,230 |
Cash dividend declared per share (usd per share) | $ 0.275 | $ 0.20 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 184 | $ 149 |
Related to marketable securities: | ||
Unrealized holding gains (losses) arising during the period | 12 | 7 |
Reclassification of (gains) losses into Other-net nonoperating income (expense) | 0 | 0 |
Income tax effect | (4) | (3) |
Total | 8 | 4 |
Related to employee benefit plans: | ||
Reclassification of net pension expense into Wages and benefits | 5 | 3 |
Income tax effect | (2) | (1) |
Total | 3 | 2 |
Related to interest rate derivative instruments: | ||
Unrealized holding gains (losses) arising during the period | (5) | (4) |
Reclassification of (gains) losses into Aircraft rent | 1 | 2 |
Income tax effect | 2 | 1 |
Total | (2) | (1) |
Other Comprehensive Income | 9 | 5 |
Comprehensive Income | $ 193 | $ 154 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net Income | $ 184 | $ 149 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 88 | 76 |
Stock-based compensation and other | 9 | 9 |
Changes in certain assets and liabilities: | ||
Changes in deferred tax provision | (8) | (6) |
Increase (decrease) in air traffic liability | 199 | 183 |
Increase (decrease) in deferred revenue | 36 | 8 |
Other - net | 17 | 95 |
Net cash provided by operating activities | 525 | 514 |
Property and equipment additions: | ||
Aircraft and aircraft purchase deposits | (91) | (245) |
Other flight equipment | (15) | (21) |
Other property and equipment | (13) | (13) |
Total property and equipment additions, including capitalized interest | (119) | (279) |
Purchases of marketable securities | (358) | (403) |
Sales and maturities of marketable securities | 140 | 259 |
Proceeds from disposition of assets and changes in restricted deposits | 1 | 2 |
Net cash used in investing activities | (336) | (421) |
Cash flows from financing activities: | ||
Long-term debt payments | (36) | (35) |
Common stock repurchases | (127) | (102) |
Dividends paid | (34) | (26) |
Other financing activities | 13 | 14 |
Net cash used in financing activities | (184) | (149) |
Net increase (decrease) in cash and cash equivalents | 5 | (56) |
Cash and cash equivalents at beginning of year | 73 | 107 |
Cash and cash equivalents at end of the period | 78 | 51 |
Cash paid during the period for: | ||
Interest (net of amount capitalized) | 8 | 7 |
Income taxes paid (received) | $ 13 | $ (65) |
GENERAL AND SUMMARY OF SIGNIFIC
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 . 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, 2016 , as well as the results of operations for the three months ended March 31, 2016 and 2015 . 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, 2016 , are not necessarily indicative of operating results for the entire year. Certain reclassifications have been made to prior year financial statements to conform with classifications used in the current year. Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standard Update 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. At this time, the Company believes the most significant impact to the financial statements will be in Mileage Plan revenues and liabilities. The Company currently uses the incremental cost approach for miles earned through travel. This standard eliminates that option and the Company will be required to increase its liability for earned miles through a relative selling price model. The Company has not evaluated the full impact of the standard, although application is expected to result in a material increase to Deferred Revenue. The Company has not yet selected a transition method. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30), which requires debt issuance costs related to a debt liability be presented as a direct deduction from the carrying value of the debt liability. The amendment was adopted as of January 1, 2016. Prior period debt balances have been adjusted to reflect the adoption of ASU 2015-03. The adoption of the ASU had no impact on the Statements of Operations or retained earnings. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize assets and liabilities for leases currently classified as operating leases. Under the new standard a lessee will recognize a liability on the balance sheet representing the lease payments owed, and a right-of-use-asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. The new standard would be effective for the Company on January 1, 2019. Early adoption of the standard is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its financial statements and related disclosures. The Company has not yet determined whether it will early adopt the standard. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations. The proposed standard provides guidance when a revenue transaction involves a third party in providing goods or services to a customer in determining whether the Company is considered the principal or the agent in the transaction. When an entity is engaged to provide the underlying good or service, such entity is classified as the principal in the transaction. When an entity is engaged to arrange for a third party to provide the goods or services, such entity is classified as the agent in the transaction. This ASU has the same effective date as the new revenue standard. Entities are required to adopt this ASU using the same transition method they use to adopt the new revenue accounting standard. The Company is evaluating the effect that ASU 2016-08 will have on its consolidated financial statements and related disclosures. The Company has not yet elected a transition method nor has it determined whether it will early adopt. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The proposed standard simplifies several aspects of accounting for employee share-based payment awards, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company is evaluating the effect of ASU 2016-09 on the consolidated financial statements and related disclosures. The ASU will be effective for the Company beginning January 1, 2017, however early adoption is permitted. The Company has not yet elected a transition method nor has it determined whether it will early adopt. |
PROPOSED ACQUISITION OF VIRGIN
PROPOSED ACQUISITION OF VIRGIN AMERICA INC. | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
PROPOSED ACQUISITION OF VIRGIN AMERICA INC. | PROPOSED ACQUISITION OF VIRGIN AMERICA INC. On April 1, 2016 the Company entered into an agreement to acquire Virgin America Inc. (Virgin America). The Company has agreed to pay Virgin America shareholders $57 per share, or approximately $2.6 billion , in cash for the outstanding common stock of Virgin America. In addition, the Company expects to assume Virgin America's debt and lease obligations, other than related party debt, on the date of acquisition. The merger is subject to approval by Virgin America's shareholders and various regulatory bodies, among other customary closing conditions. To date, the financial impacts of the pending acquisition have not been material, and future financial impacts are not yet estimable. The Company currently expects the acquisition will close no later than January 1, 2017. |
CASH, CASH EQUIVALENTS AND MARK
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 3 $ — $ — $ 3 Cash equivalents 75 — — 75 Cash and cash equivalents 78 — — 78 U.S. government and agency securities 410 2 — 412 Foreign government bonds 28 — — 28 Asset-backed securities 154 1 (1 ) 154 Mortgage-backed securities 120 1 — 121 Corporate notes and bonds 749 6 (1 ) 754 Municipal securities 17 — — 17 Marketable securities 1,478 10 (2 ) 1,486 Total $ 1,556 $ 10 $ (2 ) $ 1,564 December 31, 2015 Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 4 $ — $ — $ 4 Cash equivalents 69 — — 69 Cash and cash equivalents 73 — — 73 U.S. government and agency securities 254 — (1 ) 253 Foreign government bonds 31 — — 31 Asset-backed securities 130 — — 130 Mortgage-backed securities 117 — (1 ) 116 Corporate notes and bonds 711 1 (4 ) 708 Municipal securities 17 — — 17 Marketable securities 1,260 1 (6 ) 1,255 Total $ 1,333 $ 1 $ (6 ) $ 1,328 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, 2016 . Activity for marketable securities (in millions): Three Months Ended March 31, 2016 2015 Proceeds from sales and maturities $ 140 $ 259 Gross realized gains — 1 Gross realized losses — (1 ) Maturities for marketable securities (in millions): March 31, 2016 Cost Basis Fair Value Due in one year or less $ 258 $ 258 Due after one year through five years 1,218 1,226 Due after five years through 10 years 2 2 Due after 10 years — — Total $ 1,478 $ 1,486 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In determining fair value, there is a three-level hierarchy based on the reliability of the inputs used. Level 1 refers to fair values based on quoted prices in active markets for identical assets or liabilities. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 refers to fair values estimated using significant unobservable inputs. Fair Value of Financial Instruments on a Recurring Basis Fair values of financial instruments on the consolidated balance sheet (in millions): March 31, 2016 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 412 $ — $ 412 Foreign government bonds — 28 28 Asset-backed securities — 154 154 Mortgage-backed securities — 121 121 Corporate notes and bonds — 754 754 Municipal securities — 17 17 Total Marketable securities 412 1,074 1,486 Derivative instruments Fuel hedge call options — 8 8 Total Assets 412 1,082 1,494 Liabilities Derivative instruments Interest rate swap agreements — (22 ) (22 ) Total Liabilities — (22 ) (22 ) December 31, 2015 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 253 $ — $ 253 Foreign government bonds — 31 31 Asset-backed securities — 130 130 Mortgage-backed securities — 116 116 Corporate notes and bonds — 708 708 Municipal securities — 17 17 Total Marketable securities 253 1,002 1,255 Derivative instruments Fuel hedge call options — 4 4 Total Assets 253 1,006 1,259 Liabilities Derivative instruments Interest rate swap agreements — (18 ) (18 ) Total Liabilities — (18 ) (18 ) 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-backed securities, mortgage-backed securities, corporate notes and bonds, and municipal securities are Level 2 as the fair value is based on 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. The fair value for fuel hedge 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 non-performance by counterparties. 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 interest forward 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, 2016 . 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 flows 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) is as follows: March 31, December 31, Carrying amount $ 491 $ 520 Fair value 529 557 |
MILEAGE PLAN
MILEAGE PLAN | 3 Months Ended |
Mar. 31, 2016 | |
MILEAGE PLAN [Abstract] | |
MILEAGE PLAN | MILEAGE PLAN Alaska's Mileage Plan liabilities and deferrals on the consolidated balance sheets (in millions): March 31, December 31, Current Liabilities: Other accrued liabilities $ 388 $ 368 Other Liabilities and Credits: Deferred revenue 464 427 Other liabilities 19 19 Total $ 871 $ 814 Alaska's Mileage Plan revenue included in the consolidated statements of operations (in millions): Three Months Ended March 31, 2016 2015 Passenger revenues $ 69 $ 64 Other - net revenues 103 76 Total $ 172 $ 140 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the consolidated balance sheet (in millions): March 31, December 31, Fixed-rate notes payable due through 2024 $ 491 $ 520 Variable-rate notes payable due through 2025 159 166 Less debt issuance costs (3 ) (3 ) Total debt 647 683 Less current portion 116 114 Long-term debt, less current portion $ 531 $ 569 Weighted-average fixed-interest rate 5.7 % 5.7 % Weighted-average variable-interest rate 2.1 % 1.8 % During the three months ended March 31, 2016 , the Company made debt payments of $36 million . As discussed in Note 1, the Company adopted ASU 2015-03 which resulted in a reclassification of debt issuance costs as an offset to debt in the consolidated balance sheet. At March 31, 2016 , long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2016 $ 79 2017 121 2018 151 2019 114 2020 116 Thereafter 69 Total $ 650 Bank Lines of Credit The Company has two $100 million credit facilities and one $52 million credit facility. All three facilities have variable interest rates based on LIBOR plus a specified margin. One of the $100 million facilities, which expires in September 2017 , 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 $52 million facility expires in October 2016 with a mechanism for annual renewal and is secured by two 737-800 aircraft. The Company has no immediate plans to borrow using any of these facilities. All three credit 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, 2016 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 (in millions): Three Months Ended March 31, Qualified 2016 2015 Service cost $ 9 $ 10 Interest cost 18 21 Expected return on assets (27 ) (31 ) Recognized actuarial loss (gain) 6 7 Total $ 6 $ 7 |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS Future minimum fixed payments for commitments (in millions): March 31, 2016 Aircraft Leases Facility Leases Aircraft Purchase Commitments Capacity Purchase Agreements (a) Remainder of 2016 $ 60 $ 70 $ 402 $ 53 2017 104 90 516 90 2018 98 43 472 94 2019 90 42 381 99 2020 81 40 320 106 Thereafter 467 147 392 858 Total $ 900 $ 432 $ 2,483 $ 1,300 (a) Includes all non-aircraft lease costs associated with CPA arrangements. Lease Commitments At March 31, 2016 , the Company had lease contracts for 27 B737 aircraft, 15 Q400 aircraft, 6 CRJ-700 aircraft (operated under the CPA with SkyWest) and 8 CRJ-700 aircraft that are subleased and operated by another carrier (i.e., not in the Company's fleet). The Company has 23 E175 lease commitments under the CPA with SkyWest, 7 of which are included in the fleet as of March 31, 2016 . All lease contracts have remaining noncancelable lease terms ranging from 2016 to 2029 . The Company has the option to increase capacity flown by SkyWest with eight additional E175 aircraft with 2017 and 2018 delivery dates. The majority of airport and terminal facilities are also leased. Rent expense for aircraft and facility leases was $81 million and $73 million for the three months ended March 31, 2016 and 2015 , respectively. Aircraft Purchase Commitments As of March 31, 2016 , the Company is committed to purchasing 62 B737 aircraft ( 25 737-900ER aircraft and 37 737 MAX aircraft) and two Q400 aircraft, with deliveries in 2016 through 2022 . As of March 31, 2016 we do not intend to take delivery of the two Q400 aircraft that are currently contracted. In addition, the Company has options to purchase 46 B737 aircraft and five Q400 aircraft, which are not reflected in the commitments table above. Subsequent to March 31, 2016, the Company placed an order for 30 Embraer E175 regional jets with options to purchase an additional 33 . The above table does not reflect this purchase. See Note 11 for additional information. Capacity Purchase Agreements (CPAs) At March 31, 2016 , Alaska had CPAs with three carriers, including the Company's wholly-owned subsidiary, Horizon. Horizon sells 100% of its capacity under a CPA with Alaska. In addition, Alaska has CPAs with SkyWest to fly certain routes and PenAir to fly certain routes in the state of Alaska. Under these agreements, Alaska pays the carriers an amount which is based on a determination of their cost of operating those flights and other factors intended to approximate market rates for those services. Future payments (excluding Horizon) are based on 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. Contingencies The Company is a party to routine litigation matters incidental to its business and with respect to which no material liability is expected. Management believes the ultimate disposition of these matters is not likely to materially affect the Company's financial position or results of operations. This forward-looking statement is based on management's current understanding of the relevant law and facts, and it is subject to various contingencies, including the potential costs and risks associated with litigation and the actions of arbitrators, judges and juries. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Dividends During the three months ended March 31, 2016 , the Company declared and paid cash dividends of $0.275 per share, or $34 million . Common Stock Repurchase In May 2014, the Board of Directors authorized a $650 million share repurchase program, which was completed in October 2015. In August 2015, the Board of Directors authorized a $1 billion share repurchase program. Share repurchase activity (in millions, except share amounts): Three Months Ended March 31, 2016 2015 Shares Amount Shares Amount 2015 Repurchase Program - $1 billion 1,721,413 $ 127 — $ — 2014 Repurchase Program - $650 million — $ — 1,580,747 $ 102 Total 1,721,413 $ 127 1,580,747 $ 102 Accumulated Other Comprehensive Loss Components of accumulated other comprehensive income (loss), net of tax (in millions): March 31, December 31, Marketable securities $ 5 $ (3 ) Employee benefit plans (285 ) (288 ) Interest rate derivatives (14 ) (12 ) Total $ (294 ) $ (303 ) Earnings Per Share (EPS) Diluted EPS is calculated by dividing net income by the average number of common shares outstanding plus the number of 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, 2016 and 2015 , anti-dilutive shares excluded from the calculation of EPS were not material. |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
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. 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 - The Boeing 737 part of Alaska's business. Alaska Regional - Alaska's shorter distance network. 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 CPAs. Additionally, Alaska Regional includes a small allocation of corporate overhead such as IT, finance and other administrative costs incurred by Alaska and on behalf of the regional operations. Horizon - Horizon operates regional 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, station handling costs, and maintenance costs. 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 resource allocations. Adjustments are further explained below in a reconciliation to consolidated GAAP results. Operating segment information is as follows (in millions): Three Months Ended March 31, 2016 Alaska Mainline Regional Horizon Consolidating Air Group Adjusted (a) Special Items (b) Consolidated Operating revenues Passenger Mainline $ 927 $ — $ — $ — $ 927 $ — $ 927 Regional — 206 — — 206 — 206 Total passenger revenues 927 206 — — 1,133 — 1,133 CPA revenues — — 103 (103 ) — — — Freight and mail 23 1 — — 24 — 24 Other - net 172 17 1 — 190 — 190 Total operating revenues 1,122 224 104 (103 ) 1,347 — 1,347 Operating expenses Operating expenses, excluding fuel 701 186 105 (102 ) 890 — 890 Economic fuel 144 25 — — 169 (2 ) 167 Total operating expenses 845 211 105 (102 ) 1,059 (2 ) 1,057 Nonoperating income (expense) Interest income 6 — — — 6 — 6 Interest expense (12 ) — (1 ) — (13 ) — (13 ) Other 7 — — 2 9 — 9 1 — (1 ) 2 2 — 2 Income (loss) before income tax $ 278 $ 13 $ (2 ) $ 1 $ 290 $ 2 $ 292 Three Months Ended March 31, 2015 Alaska Mainline Regional Horizon Consolidating Air Group Adjusted (a) Special Items (b) Consolidated Operating revenues Passenger Mainline $ 901 $ — $ — $ — $ 901 $ — $ 901 Regional — 186 — — 186 — 186 Total passenger revenues 901 186 — — 1,087 — 1,087 CPA revenues — — 99 (99 ) — — — Freight and mail 22 1 — — 23 — 23 Other - net 142 16 1 — 159 — 159 Total operating revenues 1,065 203 100 (99 ) 1,269 — 1,269 Operating expenses Operating expenses, excluding fuel 639 164 91 (98 ) 796 — 796 Economic fuel 203 32 — — 235 — 235 Total operating expenses 842 196 91 (98 ) 1,031 — 1,031 Nonoperating income (expense) Interest income 5 — — — 5 — 5 Interest expense (7 ) — (4 ) — (11 ) — (11 ) Other 7 — 1 — 8 — 8 5 — (3 ) — 2 — 2 Income (loss) before income tax $ 228 $ 7 $ 6 $ (1 ) $ 240 $ — $ 240 (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 income and charges. (b) Includes mark-to-market fuel-hedge accounting charges. Total assets were as follows (in millions): March 31, December 31, Alaska (a) $ 8,630 $ 8,127 Horizon 717 717 Parent company 4,929 4,734 Elimination of inter-company accounts (7,447 ) (7,048 ) Consolidated $ 6,829 $ 6,530 (a) There are no assets associated with capacity purchase flying at Alaska. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS See discussion of the pending acquisition of Virgin America at Note 2. On April 11, 2016 Horizon placed an order for 30 Embraer E 175 regional aircraft (E175s), with the option to purchase an additional 33 . The E175s will be flown by Horizon exclusively for Alaska beginning in 2017. An estimate of the future financial impacts related to the purchase agreement is included in our forward looking capital expenditures table within Item 2, MD&A. |
GENERAL AND SUMMARY OF SIGNIF18
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | 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, 2015 . 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, 2016 , as well as the results of operations for the three months ended March 31, 2016 and 2015 . 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, 2016 , are not necessarily indicative of operating results for the entire year. Certain reclassifications have been made to prior year financial statements to conform with classifications used in the current year. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standard Update 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. At this time, the Company believes the most significant impact to the financial statements will be in Mileage Plan revenues and liabilities. The Company currently uses the incremental cost approach for miles earned through travel. This standard eliminates that option and the Company will be required to increase its liability for earned miles through a relative selling price model. The Company has not evaluated the full impact of the standard, although application is expected to result in a material increase to Deferred Revenue. The Company has not yet selected a transition method. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30), which requires debt issuance costs related to a debt liability be presented as a direct deduction from the carrying value of the debt liability. The amendment was adopted as of January 1, 2016. Prior period debt balances have been adjusted to reflect the adoption of ASU 2015-03. The adoption of the ASU had no impact on the Statements of Operations or retained earnings. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize assets and liabilities for leases currently classified as operating leases. Under the new standard a lessee will recognize a liability on the balance sheet representing the lease payments owed, and a right-of-use-asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. The new standard would be effective for the Company on January 1, 2019. Early adoption of the standard is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its financial statements and related disclosures. The Company has not yet determined whether it will early adopt the standard. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations. The proposed standard provides guidance when a revenue transaction involves a third party in providing goods or services to a customer in determining whether the Company is considered the principal or the agent in the transaction. When an entity is engaged to provide the underlying good or service, such entity is classified as the principal in the transaction. When an entity is engaged to arrange for a third party to provide the goods or services, such entity is classified as the agent in the transaction. This ASU has the same effective date as the new revenue standard. Entities are required to adopt this ASU using the same transition method they use to adopt the new revenue accounting standard. The Company is evaluating the effect that ASU 2016-08 will have on its consolidated financial statements and related disclosures. The Company has not yet elected a transition method nor has it determined whether it will early adopt. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The proposed standard simplifies several aspects of accounting for employee share-based payment awards, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company is evaluating the effect of ASU 2016-09 on the consolidated financial statements and related disclosures. The ASU will be effective for the Company beginning January 1, 2017, however early adoption is permitted. The Company has not yet elected a transition method nor has it determined whether it will early adopt. |
CASH, CASH EQUIVALENTS AND MA19
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Schedule of Cash, Cash Equivalents and Short-term Investments | Components for cash, cash equivalents and marketable securities (in millions): March 31, 2016 Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 3 $ — $ — $ 3 Cash equivalents 75 — — 75 Cash and cash equivalents 78 — — 78 U.S. government and agency securities 410 2 — 412 Foreign government bonds 28 — — 28 Asset-backed securities 154 1 (1 ) 154 Mortgage-backed securities 120 1 — 121 Corporate notes and bonds 749 6 (1 ) 754 Municipal securities 17 — — 17 Marketable securities 1,478 10 (2 ) 1,486 Total $ 1,556 $ 10 $ (2 ) $ 1,564 December 31, 2015 Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 4 $ — $ — $ 4 Cash equivalents 69 — — 69 Cash and cash equivalents 73 — — 73 U.S. government and agency securities 254 — (1 ) 253 Foreign government bonds 31 — — 31 Asset-backed securities 130 — — 130 Mortgage-backed securities 117 — (1 ) 116 Corporate notes and bonds 711 1 (4 ) 708 Municipal securities 17 — — 17 Marketable securities 1,260 1 (6 ) 1,255 Total $ 1,333 $ 1 $ (6 ) $ 1,328 |
Schedule of Realized Gain (Loss) | Activity for marketable securities (in millions): Three Months Ended March 31, 2016 2015 Proceeds from sales and maturities $ 140 $ 259 Gross realized gains — 1 Gross realized losses — (1 ) |
Schedule of Debt Investment Maturities | Maturities for marketable securities (in millions): March 31, 2016 Cost Basis Fair Value Due in one year or less $ 258 $ 258 Due after one year through five years 1,218 1,226 Due after five years through 10 years 2 2 Due after 10 years — — Total $ 1,478 $ 1,486 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure | Fair values of financial instruments on the consolidated balance sheet (in millions): March 31, 2016 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 412 $ — $ 412 Foreign government bonds — 28 28 Asset-backed securities — 154 154 Mortgage-backed securities — 121 121 Corporate notes and bonds — 754 754 Municipal securities — 17 17 Total Marketable securities 412 1,074 1,486 Derivative instruments Fuel hedge call options — 8 8 Total Assets 412 1,082 1,494 Liabilities Derivative instruments Interest rate swap agreements — (22 ) (22 ) Total Liabilities — (22 ) (22 ) December 31, 2015 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 253 $ — $ 253 Foreign government bonds — 31 31 Asset-backed securities — 130 130 Mortgage-backed securities — 116 116 Corporate notes and bonds — 708 708 Municipal securities — 17 17 Total Marketable securities 253 1,002 1,255 Derivative instruments Fuel hedge call options — 4 4 Total Assets 253 1,006 1,259 Liabilities Derivative instruments Interest rate swap agreements — (18 ) (18 ) Total Liabilities — (18 ) (18 ) |
Fair Value, by Balance Sheet Grouping | 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) is as follows: March 31, December 31, Carrying amount $ 491 $ 520 Fair value 529 557 |
MILEAGE PLAN MILEAGE PLAN (Tabl
MILEAGE PLAN MILEAGE PLAN (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
MILEAGE PLAN [Abstract] | |
Mileage Plan Liabilities | Alaska's Mileage Plan liabilities and deferrals on the consolidated balance sheets (in millions): March 31, December 31, Current Liabilities: Other accrued liabilities $ 388 $ 368 Other Liabilities and Credits: Deferred revenue 464 427 Other liabilities 19 19 Total $ 871 $ 814 |
Mileage Plan Revenue | Alaska's Mileage Plan revenue included in the consolidated statements of operations (in millions): Three Months Ended March 31, 2016 2015 Passenger revenues $ 69 $ 64 Other - net revenues 103 76 Total $ 172 $ 140 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt obligations on the consolidated balance sheet (in millions): March 31, December 31, Fixed-rate notes payable due through 2024 $ 491 $ 520 Variable-rate notes payable due through 2025 159 166 Less debt issuance costs (3 ) (3 ) Total debt 647 683 Less current portion 116 114 Long-term debt, less current portion $ 531 $ 569 Weighted-average fixed-interest rate 5.7 % 5.7 % Weighted-average variable-interest rate 2.1 % 1.8 % |
Schedule of Maturities of Long-term Debt | At March 31, 2016 , long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2016 $ 79 2017 121 2018 151 2019 114 2020 116 Thereafter 69 Total $ 650 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | Net periodic benefit costs recognized included the following components for the three months ended March 31, 2016 (in millions): Three Months Ended March 31, Qualified 2016 2015 Service cost $ 9 $ 10 Interest cost 18 21 Expected return on assets (27 ) (31 ) Recognized actuarial loss (gain) 6 7 Total $ 6 $ 7 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases and Unrecorded Unconditional Purchase Obligtaions | Future minimum fixed payments for commitments (in millions): March 31, 2016 Aircraft Leases Facility Leases Aircraft Purchase Commitments Capacity Purchase Agreements (a) Remainder of 2016 $ 60 $ 70 $ 402 $ 53 2017 104 90 516 90 2018 98 43 472 94 2019 90 42 381 99 2020 81 40 320 106 Thereafter 467 147 392 858 Total $ 900 $ 432 $ 2,483 $ 1,300 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Treasury Stock by Class | Share repurchase activity (in millions, except share amounts): Three Months Ended March 31, 2016 2015 Shares Amount Shares Amount 2015 Repurchase Program - $1 billion 1,721,413 $ 127 — $ — 2014 Repurchase Program - $650 million — $ — 1,580,747 $ 102 Total 1,721,413 $ 127 1,580,747 $ 102 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive income (loss), net of tax (in millions): March 31, December 31, Marketable securities $ 5 $ (3 ) Employee benefit plans (285 ) (288 ) Interest rate derivatives (14 ) (12 ) Total $ (294 ) $ (303 ) |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Operating segment information is as follows (in millions): Three Months Ended March 31, 2016 Alaska Mainline Regional Horizon Consolidating Air Group Adjusted (a) Special Items (b) Consolidated Operating revenues Passenger Mainline $ 927 $ — $ — $ — $ 927 $ — $ 927 Regional — 206 — — 206 — 206 Total passenger revenues 927 206 — — 1,133 — 1,133 CPA revenues — — 103 (103 ) — — — Freight and mail 23 1 — — 24 — 24 Other - net 172 17 1 — 190 — 190 Total operating revenues 1,122 224 104 (103 ) 1,347 — 1,347 Operating expenses Operating expenses, excluding fuel 701 186 105 (102 ) 890 — 890 Economic fuel 144 25 — — 169 (2 ) 167 Total operating expenses 845 211 105 (102 ) 1,059 (2 ) 1,057 Nonoperating income (expense) Interest income 6 — — — 6 — 6 Interest expense (12 ) — (1 ) — (13 ) — (13 ) Other 7 — — 2 9 — 9 1 — (1 ) 2 2 — 2 Income (loss) before income tax $ 278 $ 13 $ (2 ) $ 1 $ 290 $ 2 $ 292 Three Months Ended March 31, 2015 Alaska Mainline Regional Horizon Consolidating Air Group Adjusted (a) Special Items (b) Consolidated Operating revenues Passenger Mainline $ 901 $ — $ — $ — $ 901 $ — $ 901 Regional — 186 — — 186 — 186 Total passenger revenues 901 186 — — 1,087 — 1,087 CPA revenues — — 99 (99 ) — — — Freight and mail 22 1 — — 23 — 23 Other - net 142 16 1 — 159 — 159 Total operating revenues 1,065 203 100 (99 ) 1,269 — 1,269 Operating expenses Operating expenses, excluding fuel 639 164 91 (98 ) 796 — 796 Economic fuel 203 32 — — 235 — 235 Total operating expenses 842 196 91 (98 ) 1,031 — 1,031 Nonoperating income (expense) Interest income 5 — — — 5 — 5 Interest expense (7 ) — (4 ) — (11 ) — (11 ) Other 7 — 1 — 8 — 8 5 — (3 ) — 2 — 2 Income (loss) before income tax $ 228 $ 7 $ 6 $ (1 ) $ 240 $ — $ 240 (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 income and charges. (b) Includes mark-to-market fuel-hedge accounting charges. Total assets were as follows (in millions): March 31, December 31, Alaska (a) $ 8,630 $ 8,127 Horizon 717 717 Parent company 4,929 4,734 Elimination of inter-company accounts (7,447 ) (7,048 ) Consolidated $ 6,829 $ 6,530 (a) There are no assets associated with capacity purchase flying at Alaska. |
PROPOSED ACQUISITION OF VIRGI27
PROPOSED ACQUISITION OF VIRGIN AMERICA INC. (Details) - Virgin America Inc. [Member] $ / shares in Units, $ in Billions | Apr. 01, 2016USD ($)$ / shares |
Business Acquisition [Line Items] | |
Approximate Acquisition purchase price | $ | $ 2.6 |
Common Stock [Member] | |
Business Acquisition [Line Items] | |
Acquisition share price | $ / shares | $ 57 |
CASH, CASH EQUIVALENTS AND MA28
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 3 | $ 4 | ||
Money market funds and other securities | 75 | 69 | ||
Cash and cash equivalents | 78 | $ 51 | 73 | $ 107 |
Available-for-sale Securities, Current [Abstract] | ||||
Marketable securities, Cost Basis | 1,478 | 1,260 | ||
Marketable securities, Unrealized Gains | 10 | 1 | ||
Marketable securities, Unrealized Losses | (2) | (6) | ||
Marketable securities, Fair Value | 1,486 | 1,255 | ||
Cash and marketables securities, Cost Basis | 1,556 | 1,333 | ||
Cash and marketable securities, Unrealized Gains | 10 | 1 | ||
Cash and marketable securities, Unrealized Losses | (2) | (6) | ||
Total cash and marketable securities | 1,564 | 1,328 | ||
Available-for-sale Securities, Activity [Abstract] | ||||
Proceeds from sales and maturities | 140 | 259 | ||
Gross realized gains | 0 | 1 | ||
Gross realized losses | 0 | $ (1) | ||
U.S. government and agency securities [Member] | ||||
Available-for-sale Securities, Current [Abstract] | ||||
Marketable securities, Cost Basis | 410 | 254 | ||
Marketable securities, Unrealized Gains | 2 | 0 | ||
Marketable securities, Unrealized Losses | 0 | (1) | ||
Marketable securities, Fair Value | 412 | 253 | ||
Foreign government bonds [Member] | ||||
Available-for-sale Securities, Current [Abstract] | ||||
Marketable securities, Cost Basis | 28 | 31 | ||
Marketable securities, Unrealized Gains | 0 | 0 | ||
Marketable securities, Unrealized Losses | 0 | 0 | ||
Marketable securities, Fair Value | 28 | 31 | ||
Asset-backed securities [Member] | ||||
Available-for-sale Securities, Current [Abstract] | ||||
Marketable securities, Cost Basis | 154 | 130 | ||
Marketable securities, Unrealized Gains | 1 | 0 | ||
Marketable securities, Unrealized Losses | (1) | 0 | ||
Marketable securities, Fair Value | 154 | 130 | ||
Mortgage-backed securities [Member] | ||||
Available-for-sale Securities, Current [Abstract] | ||||
Marketable securities, Cost Basis | 120 | 117 | ||
Marketable securities, Unrealized Gains | 1 | 0 | ||
Marketable securities, Unrealized Losses | 0 | (1) | ||
Marketable securities, Fair Value | 121 | 116 | ||
Corporate notes and bonds [Member] | ||||
Available-for-sale Securities, Current [Abstract] | ||||
Marketable securities, Cost Basis | 749 | 711 | ||
Marketable securities, Unrealized Gains | 6 | 1 | ||
Marketable securities, Unrealized Losses | (1) | (4) | ||
Marketable securities, Fair Value | 754 | 708 | ||
Municipal securities [Member] | ||||
Available-for-sale Securities, Current [Abstract] | ||||
Marketable securities, Cost Basis | 17 | 17 | ||
Marketable securities, Unrealized Gains | 0 | 0 | ||
Marketable securities, Unrealized Losses | 0 | 0 | ||
Marketable securities, Fair Value | $ 17 | $ 17 |
CASH, CASH EQUIVALENTS AND MA29
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES - MATURITIES (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Cost Basis [Abstract] | |||
Due in one year or less | $ 258 | ||
Due after one year through five years | 1,218 | ||
Due after five years through 10 years | 2 | ||
Due after 10 years | $ 0 | ||
Marketable securities, Cost Basis | 1,478 | $ 1,260 | |
Fair Value [Abstract] | |||
Due in one year or less | 258 | ||
Due after one year through five years | 1,226 | ||
Due after five years through 10 years | 2 | ||
Due after 10 years | $ 0 | ||
Marketable securities, Fair Value | $ 1,486 | $ 1,255 |
FAIR VALUE MEASUREMENTS - FAIR
FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (Details) - Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 1,486 | $ 1,255 |
Derivative instruments, assets | 1,494 | 1,259 |
Derivative instruments, liabilities | (22) | (18) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 412 | 253 |
Derivative instruments, assets | 412 | 253 |
Derivative instruments, liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1,074 | 1,002 |
Derivative instruments, assets | 1,082 | 1,006 |
Derivative instruments, liabilities | (22) | (18) |
Fuel hedge contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 8 | 4 |
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 |
Fuel hedge contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 8 | 4 |
Interest rate swaps agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, liabilities | (22) | (18) |
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 | (22) | (18) |
U.S. government and agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 412 | 253 |
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 | 412 | 253 |
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 | 28 | 31 |
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 | 28 | 31 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 154 | 130 |
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 | 154 | 130 |
Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 121 | 116 |
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 | 121 | 116 |
Corporate notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 754 | 708 |
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 | 754 | 708 |
Municipal securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 17 | 17 |
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 | $ 17 | $ 17 |
FAIR VALUE MEASUREMENTS - LONG-
FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 491 | $ 520 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 529 | $ 557 |
MILEAGE PLAN MILEAGE PLAN (Deta
MILEAGE PLAN MILEAGE PLAN (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Mileage Plan [Line Items] | |||
Other accrued liabilities | $ 809 | $ 661 | |
Deferred revenue | 467 | 431 | |
Other liabilities | 359 | 362 | |
Passenger revenues | 1,133 | $ 1,087 | |
Other - net revenues | 190 | 159 | |
Liabilities From Mileage Plan [Member] | |||
Mileage Plan [Line Items] | |||
Other accrued liabilities | 388 | 368 | |
Deferred revenue | 464 | 427 | |
Other liabilities | 19 | 19 | |
Total | 871 | $ 814 | |
Revenue From Mileage Plan [Member] | |||
Mileage Plan [Line Items] | |||
Passenger revenues | 69 | 64 | |
Other - net revenues | 103 | 76 | |
Total Mileage Plan Revenues | $ 172 | $ 140 |
LONG-TERM DEBT - SCHEDULE OF LO
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Total | $ 647 | $ 683 | |
Less debt issuance costs | (3) | (3) | |
Less current portion | 116 | 114 | |
Long-term debt, less current portion | $ 531 | $ 569 | |
Weighted-average fixed-interest rate | 5.70% | 5.70% | |
Weighted-average variable-interest rate | 2.10% | 1.80% | |
Repayments of Long-term Debt | $ 36 | $ 35 | |
Fixed-rate notes payable due through 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Total | 491 | $ 520 | |
Variable-rate notes payable due through 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Total | $ 159 | $ 166 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - FUTURE PAYMENTS (Details) $ in Millions | Mar. 31, 2016USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2016 | $ 79 |
2,017 | 121 |
2,018 | 151 |
2,019 | 114 |
2,020 | 116 |
Thereafter | 69 |
Total | $ 650 |
LONG-TERM DEBT - LINE OF CREDIT
LONG-TERM DEBT - LINE OF CREDIT (Details) | 3 Months Ended |
Mar. 31, 2016USD ($)aircraftcredit_facility | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Number of Credit Facilities | credit_facility | 3 |
Line of Credit Facility, Asset Restrictions | $ 500,000,000 |
Secured by aircraft [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Expiration Date | Sep. 30, 2017 |
Secured by other [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Expiration Date | Mar. 31, 2017 |
Credit Facilities 1 and 2 [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Number of Credit Facilities | credit_facility | 2 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 |
Credit Facility 1 [Member] | Secured by aircraft [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Number of Credit Facilities | credit_facility | 1 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 |
Credit Facility 2 [Member] | Secured by other [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 |
Credit Facility 3 [Member] | Secured by aircraft [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Number of Credit Facilities | credit_facility | 1 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 52,000,000 |
B-737-800 [Member] | Credit Facility 3 [Member] | |
Line of Credit Facility [Line Items] | |
Number of Aircraft Securing Credit Facility | aircraft | 2 |
EMPLOYEE BENEFIT PLANS - NET PE
EMPLOYEE BENEFIT PLANS - NET PENSION EXPENSE (Details) - Qualified Defined Benefit [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 9 | $ 10 |
Interest cost | 18 | 21 |
Expected return on assets | (27) | (31) |
Recognized actuarial loss (gain) | 6 | 7 |
Net pension expense | $ 6 | $ 7 |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)aircraftcarriers | Mar. 31, 2015USD ($) | Apr. 11, 2016aircraft | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Rent Expense | $ 81 | $ 73 | |
Capacity purchase arrangements (carriers) | carriers | 3 | ||
Aircraft Commitments [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Remainder of 2016 | $ 402 | ||
2,017 | 516 | ||
2,018 | 472 | ||
2,019 | 381 | ||
2,020 | 320 | ||
Thereafter | 392 | ||
Total | 2,483 | ||
Capacity Purchase Agreements [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Remainder of 2016 | 53 | ||
2,017 | 90 | ||
2,018 | 94 | ||
2,019 | 99 | ||
2,020 | 106 | ||
Thereafter | 858 | ||
Total | 1,300 | ||
Aircraft [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Remainder of 2016 | 60 | ||
2,017 | 104 | ||
2,018 | 98 | ||
2,019 | 90 | ||
2,020 | 81 | ||
Thereafter | 467 | ||
Total | 900 | ||
Facility Leases [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Remainder of 2016 | 70 | ||
2,017 | 90 | ||
2,018 | 43 | ||
2,019 | 42 | ||
2,020 | 40 | ||
Thereafter | 147 | ||
Total | $ 432 | ||
B-737 [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Committed to Purchase (in Aircraft) | aircraft | 62 | ||
Options to Purchase Additional (in Aircraft) | aircraft | 46 | ||
B737-900ER [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Committed to Purchase (in Aircraft) | aircraft | 25 | ||
B737 MAX [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Committed to Purchase (in Aircraft) | aircraft | 37 | ||
Q400 [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Committed to Purchase (in Aircraft) | aircraft | 2 | ||
Unrecorded Unconditional Purchase Obligation, Not Intended to Take Delivery | aircraft | 2 | ||
Options to Purchase Additional (in Aircraft) | aircraft | 5 | ||
Aircraft [Member] | B-737 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 27 | ||
Aircraft [Member] | Q400 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 15 | ||
Aircraft [Member] | CRJ-700 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 6 | ||
Aircraft [Member] | E175 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 7 | ||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Number of Units (in Aircraft) | aircraft | 8 | ||
Non Operating Aircraft [Member] | CRJ-700 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 8 | ||
Subsequent Event [Member] | E175 [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Committed to Purchase (in Aircraft) | aircraft | 30 | ||
Options to Purchase Additional (in Aircraft) | aircraft | 33 | ||
Alaska Regional [Member] | Aircraft [Member] | E175 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 23 | ||
Horizon [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Capacity purchase arrangements | 100.00% | ||
Horizon [Member] | Subsequent Event [Member] | E175 [Member] | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Committed to Purchase (in Aircraft) | aircraft | 30 | ||
Options to Purchase Additional (in Aircraft) | aircraft | 33 |
SHAREHOLDERS' EQUITY, COMMON ST
SHAREHOLDERS' EQUITY, COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Aug. 31, 2015 | May. 31, 2014 | |
Class of Stock [Line Items] | ||||
Stock repurchased during period (shares) | 1,721,413 | 1,580,747 | ||
Stock repurchased during period | $ 127 | $ 102 | ||
2015 1 Billion Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount (shares) | $ 1,000 | |||
Stock repurchased during period (shares) | 1,721,413 | |||
Stock repurchased during period | $ 127 | |||
May 2014 Stock Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount (shares) | $ 650 | |||
Stock repurchased during period (shares) | 0 | 1,580,747 | ||
Stock repurchased during period | $ 0 | $ 102 |
SHAREHOLDERS' EQUITY, ACCUMULAT
SHAREHOLDERS' EQUITY, ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Equity [Abstract] | ||
Marketable securities | $ 5 | $ (3) |
Employee benefit plans | (285) | (288) |
Interest rate derivatives | (14) | (12) |
Total | $ (294) | $ (303) |
SHAREHOLDERS' EQUITY, CASH DIVI
SHAREHOLDERS' EQUITY, CASH DIVIDEND (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Abstract] | ||
Cash dividend declared per share (usd per share) | $ 0.275 | $ 0.20 |
Payments of Dividends | $ 34 | $ 26 |
OPERATING SEGMENT INFORMATION41
OPERATING SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)airline | Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Airlines | airline | 2 | |
Number of Operating Segments | airline | 3 | |
Operating revenues | ||
Passenger, Mainline | $ 927 | $ 901 |
Passenger, Regional | 206 | 186 |
Total passenger revenue | 1,133 | 1,087 |
CPA revenues | 0 | 0 |
Freight and mail | 24 | 23 |
Other - net revenue | 190 | 159 |
Total Operating Revenues | 1,347 | 1,269 |
Operating expenses | ||
Operating expenses, excluding fuel | 890 | 796 |
Economic fuel | 167 | 235 |
Total Operating Expenses | 1,057 | 1,031 |
Nonoperating Income (Expense) | ||
Interest income | 6 | 5 |
Interest expense | (13) | (11) |
Other | 9 | 8 |
Nonoperating Income (Expense) Total | 2 | 2 |
Income before income tax | $ 292 | 240 |
Air Group Adjusted [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of Airlines | airline | 2 | |
Operating revenues | ||
Passenger, Mainline | $ 927 | 901 |
Passenger, Regional | 206 | 186 |
Total passenger revenue | 1,133 | 1,087 |
CPA revenues | 0 | 0 |
Freight and mail | 24 | 23 |
Other - net revenue | 190 | 159 |
Total Operating Revenues | 1,347 | 1,269 |
Operating expenses | ||
Operating expenses, excluding fuel | 890 | 796 |
Economic fuel | 169 | 235 |
Total Operating Expenses | 1,059 | 1,031 |
Nonoperating Income (Expense) | ||
Interest income | 6 | 5 |
Interest expense | (13) | (11) |
Other | 9 | 8 |
Nonoperating Income (Expense) Total | 2 | 2 |
Income before income tax | 290 | 240 |
Alaska Mainline [Member] | ||
Operating revenues | ||
Passenger, Mainline | 927 | 901 |
Passenger, Regional | 0 | 0 |
Total passenger revenue | 927 | 901 |
CPA revenues | 0 | 0 |
Freight and mail | 23 | 22 |
Other - net revenue | 172 | 142 |
Total Operating Revenues | 1,122 | 1,065 |
Operating expenses | ||
Operating expenses, excluding fuel | 701 | 639 |
Economic fuel | 144 | 203 |
Total Operating Expenses | 845 | 842 |
Nonoperating Income (Expense) | ||
Interest income | 6 | 5 |
Interest expense | (12) | (7) |
Other | 7 | 7 |
Nonoperating Income (Expense) Total | 1 | 5 |
Income before income tax | 278 | 228 |
Alaska Regional [Member] | ||
Operating revenues | ||
Passenger, Mainline | 0 | 0 |
Passenger, Regional | 206 | 186 |
Total passenger revenue | 206 | 186 |
CPA revenues | 0 | 0 |
Freight and mail | 1 | 1 |
Other - net revenue | 17 | 16 |
Total Operating Revenues | 224 | 203 |
Operating expenses | ||
Operating expenses, excluding fuel | 186 | 164 |
Economic fuel | 25 | 32 |
Total Operating Expenses | 211 | 196 |
Nonoperating Income (Expense) | ||
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Other | 0 | 0 |
Nonoperating Income (Expense) Total | 0 | 0 |
Income before income tax | $ 13 | 7 |
Horizon [Member] | ||
Segment Reporting Information [Line Items] | ||
Capacity purchase arrangements | 100.00% | |
Operating revenues | ||
Passenger, Mainline | $ 0 | 0 |
Passenger, Regional | 0 | 0 |
Total passenger revenue | 0 | 0 |
CPA revenues | 103 | 99 |
Freight and mail | 0 | 0 |
Other - net revenue | 1 | 1 |
Total Operating Revenues | 104 | 100 |
Operating expenses | ||
Operating expenses, excluding fuel | 105 | 91 |
Economic fuel | 0 | 0 |
Total Operating Expenses | 105 | 91 |
Nonoperating Income (Expense) | ||
Interest income | 0 | 0 |
Interest expense | (1) | (4) |
Other | 0 | 1 |
Nonoperating Income (Expense) Total | (1) | (3) |
Income before income tax | (2) | 6 |
Intersegment Elimination [Member] | ||
Operating revenues | ||
Passenger, Mainline | 0 | 0 |
Passenger, Regional | 0 | 0 |
Total passenger revenue | 0 | 0 |
CPA revenues | (103) | (99) |
Freight and mail | 0 | 0 |
Other - net revenue | 0 | 0 |
Total Operating Revenues | (103) | (99) |
Operating expenses | ||
Operating expenses, excluding fuel | (102) | (98) |
Economic fuel | 0 | 0 |
Total Operating Expenses | (102) | (98) |
Nonoperating Income (Expense) | ||
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Other | 2 | 0 |
Nonoperating Income (Expense) Total | 2 | 0 |
Income before income tax | 1 | (1) |
Special Revenue and Charges [Member] | ||
Operating revenues | ||
Passenger, Mainline | 0 | 0 |
Passenger, Regional | 0 | 0 |
Total passenger revenue | 0 | 0 |
CPA revenues | 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 | (2) | 0 |
Total Operating Expenses | (2) | 0 |
Nonoperating Income (Expense) | ||
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Other | 0 | 0 |
Nonoperating Income (Expense) Total | 0 | 0 |
Income before income tax | $ 2 | $ 0 |
OPERATING SEGMENT INFORMATION,
OPERATING SEGMENT INFORMATION, ASSETS (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Total assets | $ 6,829 | $ 6,530 |
Alaska Airlines [Member] | ||
Total assets | 8,630 | 8,127 |
Horizon [Member] | ||
Total assets | 717 | 717 |
Parent [Member] | ||
Total assets | 4,929 | 4,734 |
Intersegment Elimination [Member] | ||
Total assets | $ (7,447) | $ (7,048) |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - E175 [Member] - Subsequent Event [Member] | Apr. 11, 2016aircraft |
Subsequent Event [Line Items] | |
Committed to Purchase (in Aircraft) | 30 |
Options to Purchase Additional (in Aircraft) | 33 |
Horizon [Member] | |
Subsequent Event [Line Items] | |
Committed to Purchase (in Aircraft) | 30 |
Options to Purchase Additional (in Aircraft) | 33 |