Alaska Air (ALK) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		123,044,897

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 144	$ 328
Marketable securities	1,596	1,252
Total cash and marketable securities	1,740	1,580
Receivables—net	301	302
Inventories and supplies—net	57	47
Prepaid expenses and other current assets	116	121
Total Current Assets	2,214	2,050
Property and Equipment
Aircraft and other flight equipment	7,590	6,947
Other property and equipment	1,187	1,103
Deposits for future flight equipment	531	545
Property and Equipment Total	9,308	8,595
Less accumulated depreciation and amortization	3,078	2,929
Total Property and Equipment—Net	6,230	5,666
Goodwill	1,934	1,934
Intangible assets	135	143
Other noncurrent assets	226	169
Other Assets	2,295	2,246
Total Assets	10,739	9,962
Current Liabilities
Accounts payable	97	92
Accrued wages, vacation and payroll taxes	345	397
Air traffic liability	1,103	849
Other accrued liabilities	886	878
Current portion of long-term debt	334	319
Total Current Liabilities	2,765	2,535
Long-Term Debt, Net of Current Portion	2,367	2,645
Other Liabilities and Credits
Deferred income taxes	682	463
Deferred revenue	682	640
Obligation for pension and postretirement medical benefits	323	331
Other liabilities	429	417
Other Liabilities and Credits Totals	2,116	1,851
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: 400,000,000 shares, Issued: 2017 - 129,860,836 shares; 2016 - 129,189,634 shares, Outstanding: 2017 - 123,387,158 shares; 2016 - 123,328,051 shares	1	1
Capital in excess of par value	156	110
Treasury stock (common), at cost: 2017 - 6,473,678 shares; 2016 - 5,861,583 shares	(494)	(443)
Accumulated other comprehensive loss	(289)	(305)
Retained earnings	4,117	3,568
Total Shareholders' Equity	3,491	2,931
Total Liabilities and Shareholders' Equity	$ 10,739	$ 9,962

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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)	400,000,000	200,000,000
Common stock, shares issued (shares)	129,860,836	129,189,634
Common stock, shares outstanding (shares)	123,387,158	123,328,051
Treasury Stock, Shares (shares)	6,473,678	5,861,583

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating Revenues
Passenger, Mainline	$ 1,562	$ 1,073	$ 4,390	$ 3,036
Passenger, Regional	262	249	725	682
Total passenger revenue	1,824	1,322	5,115	3,718
Freight and mail	32	31	88	82
Other—net	264	213	768	607
Total Operating Revenues	2,120	1,566	5,971	4,407
Operating Expenses
Wages and benefits	475	340	1,392	1,008
Variable incentive pay	40	31	98	95
Aircraft fuel, including hedging gains and losses	368	225	1,051	593
Aircraft maintenance	88	64	271	197
Aircraft rent	70	25	204	80
Landing fees and other rentals	124	89	338	232
Contracted services	76	63	234	183
Selling expenses	91	58	269	162
Depreciation and amortization	95	101	275	281
Food and beverage service	50	31	145	93
Third-party regional carrier expense	30	25	84	72
Special items—merger-related costs	24	22	88	36
Other	150	92	424	267
Total Operating Expenses	1,681	1,166	4,873	3,299
Operating Income	439	400	1,098	1,108
Nonoperating Income (Expense)
Interest income	9	7	25	20
Interest expense	(26)	(11)	(77)	(33)
Interest capitalized	5	6	13	21
Other—net	0	0	(1)	(2)
Nonoperating Income (Expense) Total	(12)	2	(40)	6
Income before income tax	427	402	1,058	1,114
Income tax expense	161	146	397	414
Net Income	$ 266	$ 256	$ 661	$ 700
Basic Earnings Per Share (usd per share)	$ 2.15	$ 2.08	$ 5.35	$ 5.66
Diluted Earnings Per Share (usd per share)	$ 2.14	$ 2.07	$ 5.31	$ 5.63
Shares used for computation:
Basic shares (shares)	123,467	123,149	123,501	123,648
Diluted shares (shares)	124,220	123,833	124,341	124,393
Cash dividend declared per share (usd per share)	$ 0.3	$ 0.275	$ 0.9	$ 0.825

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Income	$ 266	$ 256	$ 661	$ 700
Related to marketable securities:
Unrealized holding gain (loss) arising during the period	1	(2)	5	17
Reclassification of (gain) loss into Other—net nonoperating income (expense)	(1)	0	0	(1)
Income tax effect	0	0	(2)	(6)
Total	0	(2)	3	10
Related to employee benefit plans:
Reclassification of net pension expense into Wages and benefits	5	5	16	15
Income tax effect	(2)	(1)	(5)	(5)
Total	3	4	11	10
Related to interest rate derivative instruments:
Unrealized holding gain (loss) arising during the period	0	1	(2)	(6)
Reclassification of (gain) loss into Aircraft rent	2	1	4	4
Income tax effect	(1)	(1)	(1)	1
Total	1	1	1	(1)
Other Comprehensive Income	4	3	15	19
Comprehensive Income	$ 270	$ 259	$ 676	$ 719

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net Income	$ 661	$ 700
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	275	281
Stock-based compensation and other	43	19
Changes in certain assets and liabilities:
Changes in deferred tax provision	217	47
Increase in air traffic liability	254	116
Increase in deferred revenue	46	60
Other—net	(139)	(17)
Net cash provided by operating activities	1,357	1,206
Property and equipment additions:
Aircraft and aircraft purchase deposits	(679)	(408)
Other flight equipment	(70)	(35)
Other property and equipment	(92)	(66)
Total property and equipment additions, including capitalized interest	(841)	(509)
Purchases of marketable securities	(1,408)	(775)
Sales and maturities of marketable securities	1,069	638
Other investing activities	38	5
Net cash used in investing activities	(1,142)	(641)
Cash flows from financing activities:
Proceeds from issuance of debt	0	1,546
Long-term debt payments	(265)	(93)
Common stock repurchases	(50)	(193)
Dividends paid	(111)	(102)
Other financing activities	27	22
Net cash provided (used) by financing activities	(399)	1,180
Net increase (decrease) in cash and cash equivalents	(184)	1,745
Cash and cash equivalents at beginning of year	328	73
Cash and cash equivalents at end of the period	144	1,818
Cash paid during the period for:
Interest (net of amount capitalized)	68	12
Income taxes	$ 129	$ 321

GENERAL AND SUMMARY OF SIGNIFIC

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Basis of Presentation The condensed consolidated financial statements include the accounts of Air Group, and its primary subsidiaries, Alaska, Horizon, McGee Air Services and, starting December 14, 2016, Virgin America. The Company conducts substantially all of its operations through these subsidiaries. All significant 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. It should be read in conjunction with the consolidated financial statements and accompanying notes in the Form 10-K for the year ended December 31, 2016 . In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of September 30, 2017 and the results of operations for the three and nine months ended September 30, 2017 and 2016 . Such adjustments 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 and nine months ended September 30, 2017 are not necessarily indicative of operating results for the entire year. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" (Topic 606), 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. This comprehensive new standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations" to clarify the guidance on determining whether the Company is considered the principal or the agent in a revenue transaction where a third party is providing goods or services to a customer. Entities are permitted to use either a full retrospective or cumulative effect transition method, and are required to adopt all parts of the new revenue standard using the same transition method. The new standard is effective for the Company on January 1, 2018. At this time, the Company believes the most significant impact to the financial statements will be to Mileage Plan™ revenues and liabilities. The Company currently uses the incremental cost approach for miles earned through travel. As this approach will be eliminated with the standard, the Company will be required to allocate a portion of the ticket price through a relative selling price model and defer revenue recognition until the ticket is flown or unused mileage credits expire. Additionally, unused companion certificates that were previously recognized at expiration will be subject to advanced breakage under the new standard. The Company estimates a net increase to Mileage Plan deferred revenues of approximately $340 million to $380 million at the time of adoption. The allocated value to miles earned through travel will offset passenger revenue during the period they are issued, rather than recorded using the incremental cost approach. As the program is growing significantly, the Company expects revenue recognized under Topic 606 will be less on an annual basis than current accounting practice. The adoption of the new standard is also expected to result in a change in income statement classification of the majority of ancillary revenues from Other revenue to Passenger revenue. This will affect common industry metrics, such as PRASM and RASM. Certain commission revenue from interline arrangements that were previously offset against related expense will now be classified as Other revenue, which will impact RASM and CASM. Unused ticket revenue that was previously recorded at the time of expiration will now be recorded at the original departure date if that ticket has not been changed or refunded prior to that date, based on estimates of expected expiration. This concept is referred to as ticket breakage. The Company estimates the change in ticket breakage methodology will not have a significant impact on the statements of operations, but will decrease air traffic liability by approximately $70 million to $80 million . The Company continues to evaluate and model the full impact of the standard and will apply the full retrospective transition method. The overall impact to equity as of the beginning of the retroactive reporting period, including the changes discussed above, as well as other less material changes, is expected to be between $160 million and $190 million . 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. At this time, the Company believes the most significant impact to the financial statements will relate to the recording of a right-of-use asset associated with leased aircraft. Other leases, including airports and real estate, equipment, software and other miscellaneous leases continue to be assessed for impact of the ASU. The new standard is effective for the Company on January 1, 2019. Early adoption of the standard is permitted. The Company has determined that it will not early adopt the standard. In March 2016, the FASB issued ASU 2016-09, "Compensation—Stock Compensation" (Topic 718), which 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 ASU was adopted prospectively as of January 1, 2017. Prior periods have not been adjusted. The adoption of the standard did not have a material impact on the Company's statements of operations or financial position. In January 2017, the FASB issued ASU 2017-04, "Intangibles—Goodwill and Other" (Topic 350), which eliminates step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The ASU is effective for the Company beginning January 1, 2019. Early adoption of the standard is permitted. Beginning in fiscal 2017, the Company will be required to perform an impairment test for goodwill arising from its acquisition of Virgin America and has adopted the standard effective January 1, 2017. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits" (Topic 715), which will require the Company to present the service cost component of net periodic benefit cost as Wages and benefits in the statements of operations. All other components of net periodic benefit cost will be required to be presented in Nonoperating income (expense) in the statements of operations. These components will not be eligible for capitalization in assets. The ASU is effective for the Company beginning January 1, 2018. Changes to the statements of operations under the ASU are applicable retrospectively. The adoption of this standard will have no impact on Income before income tax or Net income for the periods subject to retrospective reclassification. See Note 6 for the current components of the Company's net periodic benefit costs. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The ASU expands the activities that qualify for hedge accounting and simplifies the rules for reporting hedging relationships. The ASU is effective for the Company beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact and has not yet determined whether it will early adopt.

ACQUISITION OF VIRGIN AMERICA I

ACQUISITION OF VIRGIN AMERICA INC.	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
ACQUISITION OF VIRGIN AMERICA INC.	ACQUISITION OF VIRGIN AMERICA Virgin America On December 14, 2016, the Company acquired 100% of the outstanding common shares and voting interest of Virgin America for $57 per share, or total cash consideration of $2.6 billion . Virgin America offers scheduled air transportation throughout the United States and Mexico primarily from its hub cities of Los Angeles, San Francisco and, to a lesser extent, Dallas Love Field, to other major business and leisure destinations in North America. The Company believes the acquisition of Virgin America will provide broader national reach and position it to better serve guests living on the West Coast. The combined airline has approximately 1,200 daily departures and leverages Alaska's strength in the Pacific Northwest with Virgin America's strength in California. The Company believes that combining loyalty programs and networks will provide greater benefits for its guests and expand its international partner portfolio, giving guests an even more expansive global reach. Merger-related costs The Company incurred pretax merger-related costs of $24 million and $22 million for the three months ended September 30, 2017 and 2016 , respectively, and $88 million and $36 million for the nine months ended September 30, 2017 and 2016 , respectively. Costs classified as merger-related are directly attributable to merger activities and are recorded as "Special items—merger-related costs" within the statements of operations. The Company expects to continue to incur merger-related costs in the future as the integration continues. Fair values of the assets acquired and the liabilities assumed The transaction has been accounted for as a business combination using the acquisition method of accounting, which requires, among other things, assets acquired and liabilities assumed to be recognized on the balance sheet at their fair values as of the acquisition date. As of September 30, 2017 the fair values of property and equipment and certain liabilities, included in other accrued liabilities and other liabilities, goodwill, intangible assets and deferred income taxes have been prepared on a preliminary basis and are subject to further adjustments as the Company completes its analysis. There were no significant fair value adjustments made during the three and nine months ended September 30, 2017 . The Company will finalize the amounts recognized by December 14, 2017. Fair values of the assets acquired and the liabilities assumed as of the acquisition date of December 14, 2016, at September 30, 2017 and December 31, 2016 were as follows (in millions): September 30, 2017 December 31, 2016 Cash and cash equivalents $ 645 $ 645 Receivables 54 44 Prepaid expenses and other current assets 18 16 Property and equipment—provisional 561 560 Intangible assets—provisional 141 143 Goodwill—provisional 1,934 1,934 Other assets 89 84 Total assets 3,442 3,426 Accounts payable 22 22 Accrued wages, vacation and payroll taxes 54 51 Air traffic liabilities 172 172 Other accrued liabilities—provisional 197 196 Current portion of long-term debt 125 125 Long-term debt, net of current portion 360 360 Deferred income taxes—provisional (307 ) (304 ) Deferred revenue 126 126 Other liabilities—provisional 97 82 Total liabilities 846 830 Total purchase price $ 2,596 $ 2,596

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2017
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 As of September 30, 2017 , total cost basis for all marketable securities was $1.6 billion . There were no significant differences between the cost basis and fair value of any individual class of marketable securities. Fair values of financial instruments on the consolidated balance sheet (in millions): September 30, 2017 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 359 $ — $ 359 Foreign government bonds — 48 48 Asset-backed securities — 232 232 Mortgage-backed securities — 113 113 Corporate notes and bonds — 828 828 Municipal securities — 16 16 Total Marketable securities 359 1,237 1,596 Derivative instruments Fuel hedge call options — 10 10 Interest rate swap agreements — 8 8 Total Assets 359 1,255 1,614 Liabilities Derivative instruments Interest rate swap agreements — (11 ) (11 ) Total Liabilities — (11 ) (11 ) December 31, 2016 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 287 $ — $ 287 Foreign government bonds — 36 36 Asset-backed securities — 138 138 Mortgage-backed securities — 89 89 Corporate notes and bonds — 691 691 Municipal securities — 11 11 Total Marketable securities 287 965 1,252 Derivative instruments Fuel hedge call options — 20 20 Total Assets 287 985 1,272 Liabilities Derivative instruments Interest rate swap agreements — (5 ) (5 ) Total Liabilities — (5 ) (5 ) 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. Activity and Maturities for Marketable Securities Activity for marketable securities (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales and maturities $ 528 $ 280 $ 1,069 $ 638 Maturities for marketable securities (in millions): September 30, 2017 Cost Basis Fair Value Due in one year or less $ 193 $ 193 Due after one year through five years 1,367 1,367 Due after five years through 10 years 36 36 Due after 10 years — — Total $ 1,596 $ 1,596 Management does not believe any unrealized losses represent other-than-temporary impairments based on its evaluation of available information as of September 30, 2017 . Fair Value of Other Financial Instruments The Company uses 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 value. For fixed-rate debt, the Company uses the income approach to determine the estimated fair value, calculated as the sum of future cash flows discounted at 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 is as follows (in millions): September 30, 2017 December 31, 2016 Carrying amount $ 1,024 $ 1,179 Fair value 1,034 1,199 Assets and Liabilities Measured at Fair Value on Nonrecurring Basis Certain assets and liabilities are recognized or disclosed at fair value on a nonrecurring basis, including property, plant and equipment, goodwill, and intangible assets. These assets are subject to fair valuation when there is evidence of impairment. No impairment was recognized in the three and nine months ended September 30, 2017 or September 30, 2016 .

FREQUENT FLYER PROGRAMS

FREQUENT FLYER PROGRAMS	9 Months Ended
	Sep. 30, 2017
FREQUENT FLYER PROGRAMS [Abstract]
FREQUENT FLYER PROGRAMS	FREQUENT FLYER PROGRAMS Frequent flyer program deferred revenue and liabilities included in the consolidated balance sheets (in millions): September 30, 2017 December 31, 2016 Current Liabilities: Other accrued liabilities $ 509 $ 484 Other Liabilities and Credits: Deferred revenue 682 638 Other liabilities 24 21 Total $ 1,215 $ 1,143 Frequent flyer program revenue included in the consolidated statements of operations (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Passenger revenues $ 94 $ 73 $ 276 $ 215 Other—net revenues 122 107 369 318 Total $ 216 $ 180 $ 645 $ 533

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt obligations on the consolidated balance sheet (in millions): September 30, 2017 December 31, 2016 Fixed-rate notes payable due through 2028 $ 1,024 $ 1,179 Variable-rate notes payable due through 2028 1,693 1,803 Less debt issuance costs (16 ) (18 ) Total debt 2,701 2,964 Less current portion 334 319 Long-term debt, less current portion $ 2,367 $ 2,645 Weighted-average fixed-interest rate 4.3 % 4.4 % Weighted-average variable-interest rate 2.6 % 2.4 % During the nine months ended September 30, 2017 , the Company made debt payments of $265 million . At September 30, 2017 , long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2017 $ 55 2018 350 2019 422 2020 449 2021 422 Thereafter 1,016 Total $ 2,714 Bank Lines of Credit The Company has three credit facilities with availability totaling $475 million . All three facilities have variable interest rates based on LIBOR plus a specified margin. One credit facility increased from $100 million to $250 million in June 2017 . It expires in June 2021 and is secured by aircraft. The second credit facility increased from $52 million to $75 million in September 2017 . It expires in September 2018 with a mechanism for annual renewal and is secured by aircraft. The third credit facility increased from $100 million to $150 million in March 2017 . It expires in March 2022 and is secured by certain accounts receivable, spare engines, spare parts and ground service equipment. The Company has secured letters of credit against the $75 million facility, but has no plans to borrow using either of the two other 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 September 30, 2017 .

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	9 Months Ended
	Sep. 30, 2017
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS Net periodic benefit costs for the qualified defined-benefit plans included the following components (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Service cost $ 10 $ 9 $ 30 $ 27 Interest cost 19 18 55 55 Expected return on assets (27 ) (27 ) (80 ) (81 ) Amortization of prior service cost (credit) (1 ) (1 ) (1 ) (1 ) Recognized actuarial loss (gain) 7 7 20 19 Total $ 8 $ 6 $ 24 $ 19 The Company contributed $15 million to the defined-benefit pension plan during the three months ended September 30, 2017.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS AND CONTINGENCIES Future minimum payments for commitments as of September 30, 2017 (in millions): Aircraft Leases Facility Leases Aircraft Purchase Commitments Capacity Purchase Agreements (a) Aircraft Maintenance Deposits Aircraft Maintenance and Parts Management Remainder of 2017 $ 77 $ 34 $ 168 $ 21 $ 15 $ 8 2018 342 73 956 118 61 32 2019 344 65 806 151 65 35 2020 317 63 352 158 68 37 2021 280 55 273 165 63 40 Thereafter 1,263 204 355 1,250 90 — Total $ 2,623 $ 494 $ 2,910 $ 1,863 $ 362 $ 152 (a) Includes all non-aircraft lease costs associated with capacity purchase agreements. Lease Commitments Aircraft lease commitments include future obligations for all of the Company's operating airlines—Alaska, Virgin America and Horizon, as well as aircraft leases operated by third-parties. At September 30, 2017 , the Company had lease contracts for 10 Boeing 737 ("B737") aircraft, 55 Airbus aircraft, 15 Bombardier Q400 aircraft, and 21 Embraer 175 ("E175") with SkyWest Airlines, Inc. ("SkyWest"). The Company has an additional eight scheduled lease deliveries of A321neo aircraft through 2018 , as well as 14 scheduled lease deliveries of E175 aircraft through 2018 to be flown by Skywest. All lease contracts have remaining non-cancelable lease terms ranging from 2017 to 2030 . The Company has the option to increase capacity flown by SkyWest with eight additional E175 aircraft deliveries in 2020 . Options to lease are not reflected in the commitments table above. Facility lease commitments primarily include airport and terminal facilities and building leases. Total rent expense for aircraft and facility leases was $145 million and $82 million for the three months ended September 30, 2017 and 2016 , and $406 million and $226 million for the nine months ended September 30, 2017 and 2016 . Aircraft Purchase Commitments Aircraft purchase commitments include non-cancelable contractual commitments for aircraft and engines. As of September 30, 2017 , the Company had commitments to purchase 48 B737 aircraft ( 16 B737 NextGen aircraft and 32 B737 MAX aircraft, with deliveries in the remainder of 2017 through 2023 ) and 23 E175 aircraft with deliveries in 2018 through 2019 , which reflects Horizon's deferral of three E175 aircraft from 2017 to 2018. The Company also has cancelable purchase commitments for 30 Airbus A320neo aircraft with deliveries from 2020 through 2022 . In addition, the Company has options to purchase 37 B737 aircraft and 30 E175 aircraft. The cancelable purchase commitments and option payments are not reflected in the table above. Capacity Purchase Agreements ("CPAs") At September 30, 2017 , 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 with Alaska. In addition, Alaska has CPAs with SkyWest to fly certain routes in the Lower 48 and Canada and with Peninsula Airways, Inc. ("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. Aircraft Maintenance Deposits Virgin America is contractually required to make maintenance deposit payments to aircraft lessors, which represent maintenance reserves made solely to collateralize the lessor for future maintenance events should the Company not perform required maintenance. Most lease agreements provide that maintenance reserves are reimbursable upon completion of the major maintenance event in an amount equal to the lesser of (i) the amount qualified for reimbursement from maintenance reserves held by the lessor associated with the specific major maintenance event or (ii) the qualifying costs related to the specific major maintenance event. Aircraft Maintenance and Parts Management Through its acquisition of Virgin America, the Company has a separate maintenance-cost-per-hour contract for management and repair of certain rotable parts to support airframe and engine maintenance and repair. This agreement requires monthly payments based upon utilization, such as flight hours, cycles and age of the aircraft, and, in turn, the agreement transfers certain risks to the third-party service provider. There are minimum payments under this agreement. Accordingly, payments could differ materially based on actual aircraft utilization. Subsequent to September 30, 2017, Alaska entered into a similar contract for maintenance on its B737-800 aircraft engines. Payments under this agreement are not reflected in the table above. Contingencies The Company is a party to routine litigation matters incidental to its business and with respect to which no material liability is expected. Liabilities for litigation related contingencies are recorded when a loss is determined to be probable and estimable. In 2015, three flight attendants filed a class action lawsuit seeking to represent all Virgin America flight attendants for damages based on alleged violations of California and City of San Francisco wage and hour laws. Plaintiffs received class certification in November 2016. Virgin America filed a motion for summary judgment seeking to dismiss all claims on various federal preemption grounds. In January 2017, the Court denied in part and granted in part Virgin America’s motion. The Company believes the claims in this case are without factual and legal merit and intends to defend this lawsuit. 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	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
SHAREHOLDERS' EQUITY	SHAREHOLDERS' EQUITY Dividends During the three months ended September 30, 2017 , the Company declared and paid cash dividends of $0.30 per share, or $37 million . During the nine months ended September 30, 2017 , the Company declared and paid cash dividends of $0.90 per share, or $111 million . Common Stock Repurchase In August 2015 , the Board of Directors authorized a $1 billion share repurchase program. The program was paused in the second quarter of 2016 in anticipation of the acquisition of Virgin America. The Company resumed the share repurchase program in the second quarter of 2017. As of September 30, 2017 , the Company has repurchased 4.7 million shares for $363 million under this program. Subsequent to September 30, 2017 , the Company repurchased an additional 369,182 shares for $25 million . Share repurchase activity (in millions, except share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Shares Amount Shares Amount Shares Amount Shares Amount 2015 Repurchase Program—$1 billion 355,415 $ 28 — $ — 612,095 $ 50 2,594,809 $ 193 Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss, net of tax (in millions): September 30, 2017 December 31, 2016 Marketable securities $ — $ (3 ) Employee benefit plans (287 ) (299 ) Interest rate derivatives (2 ) (3 ) Total $ (289 ) $ (305 ) 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 and nine months ended September 30, 2017 and 2016 , anti-dilutive shares excluded from the calculation of EPS were not material.

OPERATING SEGMENT INFORMATION

OPERATING SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
OPERATING SEGMENT INFORMATION	OPERATING SEGMENT INFORMATION Alaska Air Group has three operating airlines—Alaska, Virgin America and Horizon. Each is regulated by the U.S. Department of Transportation’s Federal Aviation Administration. Alaska has CPAs for regional capacity with Horizon, as well as with third-party carriers SkyWest and PenAir, under which Alaska receives all passenger revenues. Under U.S. GAAP, operating segments are defined as components of a business for which there is discrete financial information that is regularly assessed by the Chief Operating Decision Maker ("CODM") in making resource allocation decisions. Financial performance for the operating airlines and CPAs is managed and reviewed by the Company's CODM as part of three reportable operating segments: • Mainline - includes Alaska's and Virgin America’s scheduled air transportation for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, Costa Rica and Cuba. • Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S. under CPAs. This segment includes the actual revenues and expenses associated with regional flying, as well as an allocation of corporate overhead incurred by Air Group on behalf of the regional operations. • Horizon - includes the capacity sold to Alaska under CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs and maintenance costs. The CODM makes resource allocation decisions for these reporting segments based on flight profitability data, aircraft type, route economics and other financial information. The "Consolidating and Other" column reflects parent company activity, consolidating entries and other immaterial business units of the company. The “Air Group Adjusted” column represents a non-GAAP measure that is used by the Company CODM to evaluate performance and allocate resources. Adjustments are further explained below in reconciling to consolidated GAAP results. Operating segment information is as follows (in millions): Three Months Ended September 30, 2017 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger Mainline $ 1,562 $ — $ — $ — $ 1,562 $ — $ 1,562 Regional — 262 — — 262 — 262 Total passenger revenues 1,562 262 — — 1,824 — 1,824 CPA revenues — — 112 (112 ) — — — Freight and mail 30 1 1 — 32 — 32 Other—net 242 21 1 — 264 — 264 Total operating revenues 1,834 284 114 (112 ) 2,120 — 2,120 Operating expenses Operating expenses, excluding fuel 1,077 219 105 (112 ) 1,289 24 1,313 Economic fuel 328 45 — — 373 (5 ) 368 Total operating expenses 1,405 264 105 (112 ) 1,662 19 1,681 Nonoperating income (expense) Interest income 11 — — (2 ) 9 — 9 Interest expense (23 ) — (4 ) 1 (26 ) — (26 ) Other 5 — — — 5 — 5 Total Nonoperating income (expense) (7 ) — (4 ) (1 ) (12 ) — (12 ) Income (loss) before income tax $ 422 $ 20 $ 5 $ (1 ) $ 446 $ (19 ) $ 427 Three Months Ended September 30, 2016 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger Mainline $ 1,073 $ — $ — $ — $ 1,073 $ — $ 1,073 Regional — 249 — — 249 — 249 Total passenger revenues 1,073 249 — — 1,322 — 1,322 CPA revenues — — 109 (109 ) — — — Freight and mail 30 1 — — 31 — 31 Other—net 190 21 1 1 213 — 213 Total operating revenues 1,293 271 110 (108 ) 1,566 — 1,566 Operating expenses Operating expenses, excluding fuel 727 202 99 (109 ) 919 22 941 Economic fuel 188 34 — — 222 3 225 Total operating expenses 915 236 99 (109 ) 1,141 25 1,166 Nonoperating income (expense) Interest income 7 — — — 7 — 7 Interest expense (7 ) — (2 ) (2 ) (11 ) — (11 ) Other 5 — — 1 6 — 6 Total Nonoperating income (expense) 5 — (2 ) (1 ) 2 — 2 Income (loss) before income tax $ 383 $ 35 $ 9 $ — $ 427 $ (25 ) $ 402 Nine Months Ended September 30, 2017 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger Mainline $ 4,390 $ — $ — $ — $ 4,390 $ — $ 4,390 Regional — 725 — — 725 — 725 Total passenger revenues 4,390 725 — — 5,115 — 5,115 CPA revenues — — 317 (317 ) — — — Freight and mail 84 3 1 — 88 — 88 Other—net 708 57 3 — 768 — 768 Total operating revenues 5,182 785 321 (317 ) 5,971 — 5,971 Operating expenses Operating expenses, excluding fuel 3,101 625 324 (316 ) 3,734 88 3,822 Economic fuel 924 120 — — 1,044 7 1,051 Total operating expenses 4,025 745 324 (316 ) 4,778 95 4,873 Nonoperating income (expense) Interest income 27 — — (2 ) 25 — 25 Interest expense (68 ) — (9 ) — (77 ) — (77 ) Other 11 — 1 — 12 — 12 Total Nonoperating income (expense) (30 ) — (8 ) (2 ) (40 ) — (40 ) Income (loss) before income tax 1,127 40 (11 ) (3 ) 1,153 (95 ) 1,058 Nine Months Ended September 30, 2016 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger Mainline $ 3,036 $ — $ — $ — $ 3,036 $ — $ 3,036 Regional — 682 — — 682 — 682 Total passenger revenues 3,036 682 — — 3,718 — 3,718 CPA revenues — — 322 (322 ) — — — Freight and mail 79 3 — — 82 — 82 Other—net 546 57 3 1 607 — 607 Total operating revenues 3,661 742 325 (321 ) 4,407 — 4,407 Operating expenses Operating expenses, excluding fuel 2,107 580 305 (322 ) 2,670 36 2,706 Economic fuel 512 90 — — 602 (9 ) 593 Total operating expenses 2,619 670 305 (322 ) 3,272 27 3,299 Nonoperating income (expense) Interest income 19 — 1 — 20 — 20 Interest expense (23 ) — (7 ) (3 ) (33 ) — (33 ) Other 15 — — 4 19 — 19 Total Nonoperating income (expense) 11 — (6 ) 1 6 — 6 Income (loss) before income tax 1,053 72 14 2 1,141 (27 ) 1,114 (a) Includes consolidating entries, Parent Company, McGee Air Services, and other immaterial business units. (b) The Air Group 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. (c) Includes merger-related costs and mark-to-market fuel-hedge accounting charges. Total assets were as follows (in millions): September 30, 2017 December 31, 2016 Mainline $ 16,382 $ 15,260 Horizon 914 690 Consolidating & Other (6,557 ) (5,988 ) Consolidated $ 10,739 $ 9,962

SUBSEQUENT EVENT

SUBSEQUENT EVENT	9 Months Ended
	Sep. 30, 2017
Subsequent Event [Line Items]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS On October 30, 2017, the Company received a final decision from a third-party arbitration panel on increased wage rates and retirement contributions for pilots of Alaska Airlines and Virgin America.

GENERAL AND SUMMARY OF SIGNIF17

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation The condensed consolidated financial statements include the accounts of Air Group, and its primary subsidiaries, Alaska, Horizon, McGee Air Services and, starting December 14, 2016, Virgin America. The Company conducts substantially all of its operations through these subsidiaries. All significant 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. It should be read in conjunction with the consolidated financial statements and accompanying notes in the Form 10-K for the year ended December 31, 2016 . In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of September 30, 2017 and the results of operations for the three and nine months ended September 30, 2017 and 2016 . Such adjustments 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 and nine months ended September 30, 2017 are not necessarily indicative of operating results for the entire year.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" (Topic 606), 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. This comprehensive new standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations" to clarify the guidance on determining whether the Company is considered the principal or the agent in a revenue transaction where a third party is providing goods or services to a customer. Entities are permitted to use either a full retrospective or cumulative effect transition method, and are required to adopt all parts of the new revenue standard using the same transition method. The new standard is effective for the Company on January 1, 2018. At this time, the Company believes the most significant impact to the financial statements will be to Mileage Plan™ revenues and liabilities. The Company currently uses the incremental cost approach for miles earned through travel. As this approach will be eliminated with the standard, the Company will be required to allocate a portion of the ticket price through a relative selling price model and defer revenue recognition until the ticket is flown or unused mileage credits expire. Additionally, unused companion certificates that were previously recognized at expiration will be subject to advanced breakage under the new standard. The Company estimates a net increase to Mileage Plan deferred revenues of approximately $340 million to $380 million at the time of adoption. The allocated value to miles earned through travel will offset passenger revenue during the period they are issued, rather than recorded using the incremental cost approach. As the program is growing significantly, the Company expects revenue recognized under Topic 606 will be less on an annual basis than current accounting practice. The adoption of the new standard is also expected to result in a change in income statement classification of the majority of ancillary revenues from Other revenue to Passenger revenue. This will affect common industry metrics, such as PRASM and RASM. Certain commission revenue from interline arrangements that were previously offset against related expense will now be classified as Other revenue, which will impact RASM and CASM. Unused ticket revenue that was previously recorded at the time of expiration will now be recorded at the original departure date if that ticket has not been changed or refunded prior to that date, based on estimates of expected expiration. This concept is referred to as ticket breakage. The Company estimates the change in ticket breakage methodology will not have a significant impact on the statements of operations, but will decrease air traffic liability by approximately $70 million to $80 million . The Company continues to evaluate and model the full impact of the standard and will apply the full retrospective transition method. The overall impact to equity as of the beginning of the retroactive reporting period, including the changes discussed above, as well as other less material changes, is expected to be between $160 million and $190 million . 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. At this time, the Company believes the most significant impact to the financial statements will relate to the recording of a right-of-use asset associated with leased aircraft. Other leases, including airports and real estate, equipment, software and other miscellaneous leases continue to be assessed for impact of the ASU. The new standard is effective for the Company on January 1, 2019. Early adoption of the standard is permitted. The Company has determined that it will not early adopt the standard. In March 2016, the FASB issued ASU 2016-09, "Compensation—Stock Compensation" (Topic 718), which 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 ASU was adopted prospectively as of January 1, 2017. Prior periods have not been adjusted. The adoption of the standard did not have a material impact on the Company's statements of operations or financial position. In January 2017, the FASB issued ASU 2017-04, "Intangibles—Goodwill and Other" (Topic 350), which eliminates step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The ASU is effective for the Company beginning January 1, 2019. Early adoption of the standard is permitted. Beginning in fiscal 2017, the Company will be required to perform an impairment test for goodwill arising from its acquisition of Virgin America and has adopted the standard effective January 1, 2017. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits" (Topic 715), which will require the Company to present the service cost component of net periodic benefit cost as Wages and benefits in the statements of operations. All other components of net periodic benefit cost will be required to be presented in Nonoperating income (expense) in the statements of operations. These components will not be eligible for capitalization in assets. The ASU is effective for the Company beginning January 1, 2018. Changes to the statements of operations under the ASU are applicable retrospectively. The adoption of this standard will have no impact on Income before income tax or Net income for the periods subject to retrospective reclassification. See Note 6 for the current components of the Company's net periodic benefit costs.

ACQUISITION OF VIRGIN AMERICA18

ACQUISITION OF VIRGIN AMERICA INC. (Tables)	9 Months Ended
	Sep. 30, 2017
Business Acquisition [Line Items]
Fair Value of Assets Acquired and Liabilities Assumed	Fair values of the assets acquired and the liabilities assumed as of the acquisition date of December 14, 2016, at September 30, 2017 and December 31, 2016 were as follows (in millions): September 30, 2017 December 31, 2016 Cash and cash equivalents $ 645 $ 645 Receivables 54 44 Prepaid expenses and other current assets 18 16 Property and equipment—provisional 561 560 Intangible assets—provisional 141 143 Goodwill—provisional 1,934 1,934 Other assets 89 84 Total assets 3,442 3,426 Accounts payable 22 22 Accrued wages, vacation and payroll taxes 54 51 Air traffic liabilities 172 172 Other accrued liabilities—provisional 197 196 Current portion of long-term debt 125 125 Long-term debt, net of current portion 360 360 Deferred income taxes—provisional (307 ) (304 ) Deferred revenue 126 126 Other liabilities—provisional 97 82 Total liabilities 846 830 Total purchase price $ 2,596 $ 2,596

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	Fair values of financial instruments on the consolidated balance sheet (in millions): September 30, 2017 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 359 $ — $ 359 Foreign government bonds — 48 48 Asset-backed securities — 232 232 Mortgage-backed securities — 113 113 Corporate notes and bonds — 828 828 Municipal securities — 16 16 Total Marketable securities 359 1,237 1,596 Derivative instruments Fuel hedge call options — 10 10 Interest rate swap agreements — 8 8 Total Assets 359 1,255 1,614 Liabilities Derivative instruments Interest rate swap agreements — (11 ) (11 ) Total Liabilities — (11 ) (11 ) December 31, 2016 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 287 $ — $ 287 Foreign government bonds — 36 36 Asset-backed securities — 138 138 Mortgage-backed securities — 89 89 Corporate notes and bonds — 691 691 Municipal securities — 11 11 Total Marketable securities 287 965 1,252 Derivative instruments Fuel hedge call options — 20 20 Total Assets 287 985 1,272 Liabilities Derivative instruments Interest rate swap agreements — (5 ) (5 ) Total Liabilities — (5 ) (5 )
Fair Value, Liabilities Measured on Recurring Basis	Fair values of financial instruments on the consolidated balance sheet (in millions): September 30, 2017 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 359 $ — $ 359 Foreign government bonds — 48 48 Asset-backed securities — 232 232 Mortgage-backed securities — 113 113 Corporate notes and bonds — 828 828 Municipal securities — 16 16 Total Marketable securities 359 1,237 1,596 Derivative instruments Fuel hedge call options — 10 10 Interest rate swap agreements — 8 8 Total Assets 359 1,255 1,614 Liabilities Derivative instruments Interest rate swap agreements — (11 ) (11 ) Total Liabilities — (11 ) (11 ) December 31, 2016 Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 287 $ — $ 287 Foreign government bonds — 36 36 Asset-backed securities — 138 138 Mortgage-backed securities — 89 89 Corporate notes and bonds — 691 691 Municipal securities — 11 11 Total Marketable securities 287 965 1,252 Derivative instruments Fuel hedge call options — 20 20 Total Assets 287 985 1,272 Liabilities Derivative instruments Interest rate swap agreements — (5 ) (5 ) Total Liabilities — (5 ) (5 )
Activity for Marketable Securities	Activity for marketable securities (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales and maturities $ 528 $ 280 $ 1,069 $ 638
Investments Classified by Contractual Maturity Date	Maturities for marketable securities (in millions): September 30, 2017 Cost Basis Fair Value Due in one year or less $ 193 $ 193 Due after one year through five years 1,367 1,367 Due after five years through 10 years 36 36 Due after 10 years — — Total $ 1,596 $ 1,596
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 is as follows (in millions): September 30, 2017 December 31, 2016 Carrying amount $ 1,024 $ 1,179 Fair value 1,034 1,199

FREQUENT FLYER PROGRAMS FREQUEN

FREQUENT FLYER PROGRAMS FREQUENT FLYER PROGRAMS (Tables)	9 Months Ended
	Sep. 30, 2017
FREQUENT FLYER PROGRAMS [Abstract]
FREQUENT FLYER PROGRAMS LIABILITIES	Frequent flyer program deferred revenue and liabilities included in the consolidated balance sheets (in millions): September 30, 2017 December 31, 2016 Current Liabilities: Other accrued liabilities $ 509 $ 484 Other Liabilities and Credits: Deferred revenue 682 638 Other liabilities 24 21 Total $ 1,215 $ 1,143
FREQUENT FLYER PROGRAMS REVENUE	Frequent flyer program revenue included in the consolidated statements of operations (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Passenger revenues $ 94 $ 73 $ 276 $ 215 Other—net revenues 122 107 369 318 Total $ 216 $ 180 $ 645 $ 533

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt obligations on the consolidated balance sheet (in millions): September 30, 2017 December 31, 2016 Fixed-rate notes payable due through 2028 $ 1,024 $ 1,179 Variable-rate notes payable due through 2028 1,693 1,803 Less debt issuance costs (16 ) (18 ) Total debt 2,701 2,964 Less current portion 334 319 Long-term debt, less current portion $ 2,367 $ 2,645 Weighted-average fixed-interest rate 4.3 % 4.4 % Weighted-average variable-interest rate 2.6 % 2.4 %
Schedule of Maturities of Long-term Debt	At September 30, 2017 , long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2017 $ 55 2018 350 2019 422 2020 449 2021 422 Thereafter 1,016 Total $ 2,714

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	9 Months Ended
	Sep. 30, 2017
Compensation and Retirement Disclosure [Abstract]
Schedule of Net Benefit Costs	Net periodic benefit costs for the qualified defined-benefit plans included the following components (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Service cost $ 10 $ 9 $ 30 $ 27 Interest cost 19 18 55 55 Expected return on assets (27 ) (27 ) (80 ) (81 ) Amortization of prior service cost (credit) (1 ) (1 ) (1 ) (1 ) Recognized actuarial loss (gain) 7 7 20 19 Total $ 8 $ 6 $ 24 $ 19

COMMITMENTS (Tables)

COMMITMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases and Unrecorded Unconditional Purchase Obligtaions	Future minimum payments for commitments as of September 30, 2017 (in millions): Aircraft Leases Facility Leases Aircraft Purchase Commitments Capacity Purchase Agreements (a) Aircraft Maintenance Deposits Aircraft Maintenance and Parts Management Remainder of 2017 $ 77 $ 34 $ 168 $ 21 $ 15 $ 8 2018 342 73 956 118 61 32 2019 344 65 806 151 65 35 2020 317 63 352 158 68 37 2021 280 55 273 165 63 40 Thereafter 1,263 204 355 1,250 90 — Total $ 2,623 $ 494 $ 2,910 $ 1,863 $ 362 $ 152 (a) Includes all non-aircraft lease costs associated with capacity purchase agreements.

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Schedule of Treasury Stock by Class	Share repurchase activity (in millions, except share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Shares Amount Shares Amount Shares Amount Shares Amount 2015 Repurchase Program—$1 billion 355,415 $ 28 — $ — 612,095 $ 50 2,594,809 $ 193
Schedule of Accumulated Other Comprehensive Income (Loss)	Components of accumulated other comprehensive loss, net of tax (in millions): September 30, 2017 December 31, 2016 Marketable securities $ — $ (3 ) Employee benefit plans (287 ) (299 ) Interest rate derivatives (2 ) (3 ) Total $ (289 ) $ (305 )

OPERATING SEGMENT INFORMATION (

OPERATING SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Operating segment information is as follows (in millions): Three Months Ended September 30, 2017 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger Mainline $ 1,562 $ — $ — $ — $ 1,562 $ — $ 1,562 Regional — 262 — — 262 — 262 Total passenger revenues 1,562 262 — — 1,824 — 1,824 CPA revenues — — 112 (112 ) — — — Freight and mail 30 1 1 — 32 — 32 Other—net 242 21 1 — 264 — 264 Total operating revenues 1,834 284 114 (112 ) 2,120 — 2,120 Operating expenses Operating expenses, excluding fuel 1,077 219 105 (112 ) 1,289 24 1,313 Economic fuel 328 45 — — 373 (5 ) 368 Total operating expenses 1,405 264 105 (112 ) 1,662 19 1,681 Nonoperating income (expense) Interest income 11 — — (2 ) 9 — 9 Interest expense (23 ) — (4 ) 1 (26 ) — (26 ) Other 5 — — — 5 — 5 Total Nonoperating income (expense) (7 ) — (4 ) (1 ) (12 ) — (12 ) Income (loss) before income tax $ 422 $ 20 $ 5 $ (1 ) $ 446 $ (19 ) $ 427 Three Months Ended September 30, 2016 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger Mainline $ 1,073 $ — $ — $ — $ 1,073 $ — $ 1,073 Regional — 249 — — 249 — 249 Total passenger revenues 1,073 249 — — 1,322 — 1,322 CPA revenues — — 109 (109 ) — — — Freight and mail 30 1 — — 31 — 31 Other—net 190 21 1 1 213 — 213 Total operating revenues 1,293 271 110 (108 ) 1,566 — 1,566 Operating expenses Operating expenses, excluding fuel 727 202 99 (109 ) 919 22 941 Economic fuel 188 34 — — 222 3 225 Total operating expenses 915 236 99 (109 ) 1,141 25 1,166 Nonoperating income (expense) Interest income 7 — — — 7 — 7 Interest expense (7 ) — (2 ) (2 ) (11 ) — (11 ) Other 5 — — 1 6 — 6 Total Nonoperating income (expense) 5 — (2 ) (1 ) 2 — 2 Income (loss) before income tax $ 383 $ 35 $ 9 $ — $ 427 $ (25 ) $ 402 Nine Months Ended September 30, 2017 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger Mainline $ 4,390 $ — $ — $ — $ 4,390 $ — $ 4,390 Regional — 725 — — 725 — 725 Total passenger revenues 4,390 725 — — 5,115 — 5,115 CPA revenues — — 317 (317 ) — — — Freight and mail 84 3 1 — 88 — 88 Other—net 708 57 3 — 768 — 768 Total operating revenues 5,182 785 321 (317 ) 5,971 — 5,971 Operating expenses Operating expenses, excluding fuel 3,101 625 324 (316 ) 3,734 88 3,822 Economic fuel 924 120 — — 1,044 7 1,051 Total operating expenses 4,025 745 324 (316 ) 4,778 95 4,873 Nonoperating income (expense) Interest income 27 — — (2 ) 25 — 25 Interest expense (68 ) — (9 ) — (77 ) — (77 ) Other 11 — 1 — 12 — 12 Total Nonoperating income (expense) (30 ) — (8 ) (2 ) (40 ) — (40 ) Income (loss) before income tax 1,127 40 (11 ) (3 ) 1,153 (95 ) 1,058 Nine Months Ended September 30, 2016 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger Mainline $ 3,036 $ — $ — $ — $ 3,036 $ — $ 3,036 Regional — 682 — — 682 — 682 Total passenger revenues 3,036 682 — — 3,718 — 3,718 CPA revenues — — 322 (322 ) — — — Freight and mail 79 3 — — 82 — 82 Other—net 546 57 3 1 607 — 607 Total operating revenues 3,661 742 325 (321 ) 4,407 — 4,407 Operating expenses Operating expenses, excluding fuel 2,107 580 305 (322 ) 2,670 36 2,706 Economic fuel 512 90 — — 602 (9 ) 593 Total operating expenses 2,619 670 305 (322 ) 3,272 27 3,299 Nonoperating income (expense) Interest income 19 — 1 — 20 — 20 Interest expense (23 ) — (7 ) (3 ) (33 ) — (33 ) Other 15 — — 4 19 — 19 Total Nonoperating income (expense) 11 — (6 ) 1 6 — 6 Income (loss) before income tax 1,053 72 14 2 1,141 (27 ) 1,114 (a) Includes consolidating entries, Parent Company, McGee Air Services, and other immaterial business units. (b) The Air Group 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. (c) Includes merger-related costs and mark-to-market fuel-hedge accounting charges. Total assets were as follows (in millions): September 30, 2017 December 31, 2016 Mainline $ 16,382 $ 15,260 Horizon 914 690 Consolidating & Other (6,557 ) (5,988 ) Consolidated $ 10,739 $ 9,962

GENERAL AND SUMMARY OF SIGNIF26

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NARRATIVE (Details) - Accounting Standards Update 2014-09 [Member] - Scenario, Forecast [Member] $ in Millions	Jan. 01, 2018USD ($)
Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amount of increase to the liability for earned miles	$ 340
Amount of decrease to air traffic liability	70
Overall impact on equity	160
Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amount of increase to the liability for earned miles	380
Amount of decrease to air traffic liability	80
Overall impact on equity	$ 190

ACQUISITION OF VIRGIN AMERICA27

ACQUISITION OF VIRGIN AMERICA INC. - NARRATIVE (Details) $ / shares in Units, $ in Millions	Dec. 14, 2016USD ($)departures$ / shares	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Business Acquisition [Line Items]
Number of daily departures | departures	1,200
Merger-related costs		$ 24	$ 22	$ 88	$ 36
Virgin America Inc.
Business Acquisition [Line Items]
Percentage of common shares and voting interest acquired	100.00%
Consideration paid (usd per share) | $ / shares	$ 57
Cash consideration	$ 2,600
Merger-related costs		$ 24	$ 22	$ 88	$ 36

ACQUISITION OF VIRGIN AMERICA28

ACQUISITION OF VIRGIN AMERICA INC. - ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 1,934	$ 1,934
Virgin America Inc.
Business Acquisition [Line Items]
Cash and cash equivalents	645	645
Receivables	54	44
Prepaid expenses and other current assets	18	16
Property and equipment	561	560
Intangible assets	141	143
Goodwill	1,934	1,934
Other assets	89	84
Total assets	3,442	3,426
Accounts payable	22	22
Accrued wages, vacation and payroll taxes	54	51
Air traffic liabilities	172	172
Other accrued liabilities	197	196
Current portion of long-term debt	125	125
Long-term debt, net of current portion	360	360
Deferred income taxes	(307)	(304)
Deferred revenue	126	126
Other liabilities	97	82
Total liabilities	846	830
Total purchase price	$ 2,596	$ 2,596

FAIR VALUE MEASUREMENTS - FAIR

FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (Details) - Recurring [Member] - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 1,596	$ 1,252
Assets, Fair Value Disclosure, Recurring	1,614	1,272
Liabilities, Fair Value Disclosure, Recurring	11	5
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	359	287
Assets, Fair Value Disclosure, Recurring	359	287
Liabilities, Fair Value Disclosure, Recurring	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	1,237	965
Assets, Fair Value Disclosure, Recurring	1,255	985
Liabilities, Fair Value Disclosure, Recurring	11	5
Fuel hedge contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	10	20
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	10	20
Interest rate swaps agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	8
Derivative instruments, liabilities	11	5
Interest rate swaps agreements [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	0
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, assets	8
Derivative instruments, liabilities	11	5
U.S. government and agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	359	287
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	359	287
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	48	36
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	48	36
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	232	138
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	232	138
Mortgage-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	113	89
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	113	89
Corporate notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	828	691
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	828	691
Municipal securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	16	11
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	$ 16	$ 11

FAIR VALUE MEASUREMENTS - ACTI

FAIR VALUE MEASUREMENTS - ACTIVITY FOR MARKETABLE SECURITIES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Proceeds from sales and maturities	$ 528	$ 280	$ 1,069	$ 638

FAIR VALUE MEASUREMENTS - MATU

FAIR VALUE MEASUREMENTS - MATURITIES FOR MARKETABLE SECURITIES (Details) $ in Millions	Sep. 30, 2017USD ($)
Cost Basis
Due in one year or less	$ 193
Due after one year through five years	1,367
Due after five years through 10 years	36
Due after 10 years	0
Total	1,596
Fair Value
Due in one year or less	193
Due after one year through five years	1,367
Due after five years through 10 years	36
Due after 10 years	0
Total	$ 1,596

FAIR VALUE MEASUREMENTS - LONG-

FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Carrying amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,024	$ 1,179
Fair value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,034	$ 1,199

FREQUENT FLYER PROGRAMS FREQU33

FREQUENT FLYER PROGRAMS FREQUENT FLYER PROGRAMS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Frequent Flyer Program [Line Items]
Other accrued liabilities	$ 886		$ 886		$ 878
Deferred revenue	682		682		640
Other liabilities	429		429		417
Passenger revenues	1,824	$ 1,322	5,115	$ 3,718
Other—net revenues	264	213	768	607
Frequent Flyer Program Revenue [Member]
Frequent Flyer Program [Line Items]
Passenger revenues	94	73	276	215
Other—net revenues	122	107	369	318
Frequent Flyer Program Revenue	216	$ 180	645	$ 533
Frequent Flyer Program Liabilities [Member]
Frequent Flyer Program [Line Items]
Other accrued liabilities	509		509		484
Deferred revenue	682		682		638
Other liabilities	24		24		21
Total	$ 1,215		$ 1,215		$ 1,143

LONG-TERM DEBT - SCHEDULE OF LO

LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Repayments of Long-term Debt	$ 265	$ 93
Total	2,701		$ 2,964
Debt Issuance Costs, Net	(16)		(18)
Less current portion	334		319
Long-term debt, less current portion	$ 2,367		$ 2,645
Weighted-average fixed-interest rate	4.30%		4.40%
Weighted-average variable-interest rate	2.60%		2.40%
Fixed rate notes payable due through 2028 [Member]
Debt Instrument [Line Items]
Total	$ 1,024		$ 1,179
Variable rate notes payable due through 2028 [Member]
Debt Instrument [Line Items]
Total	$ 1,693		$ 1,803

LONG-TERM DEBT LONG-TERM DEBT -

LONG-TERM DEBT LONG-TERM DEBT - FUTURE PAYMENTS (Details) $ in Millions	Sep. 30, 2017USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
Remainder of 2017	$ 55
2,018	350
2,019	422
2,020	449
2,021	422
Thereafter	1,016
Total	$ 2,714

LONG-TERM DEBT - LINE OF CREDIT

LONG-TERM DEBT - LINE OF CREDIT (Details)	9 Months Ended
	Sep. 30, 2017USD ($)credit_facility	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Number of Credit Facilities | credit_facility	3
Line of Credit Facility, Maximum Borrowing Capacity	$ 475,000,000
Line of Credit Facility, Asset Restrictions	500,000,000
Credit Facility 1 [Member] | Secured by aircraft [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000,000		$ 100,000,000
Line of Credit Facility, Expiration Date	Jun. 30, 2021
Credit Facility 2 [Member] | Secured by aircraft [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 75,000,000	$ 52,000,000
Line of Credit Facility, Expiration Date	Sep. 30, 2018
Credit Facility 3 [Member] | Secured by certain accounts receivable, spare engines, spare parts and ground service equipment [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 150,000,000			$ 100,000,000
Line of Credit Facility, Expiration Date	Mar. 31, 2022
Credit Facilities 1 and 2 [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Number of Credit Facilities | credit_facility	2

EMPLOYEE BENEFIT PLANS - NET PE

EMPLOYEE BENEFIT PLANS - NET PENSION EXPENSE (Details) - Qualified Defined Benefit [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Contributions by Employer	$ 15
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	10	$ 9	$ 30	$ 27
Interest cost	19	18	55	55
Expected return on assets	(27)	(27)	(80)	(81)
Amortization of prior service cost (credit)	(1)	(1)	(1)	(1)
Recognized actuarial loss (gain)	7	7	20	19
Net pension expense	$ 8	$ 6	$ 24	$ 19

COMMITMENTS (Details)

COMMITMENTS (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)aircraftcarriers	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)aircraftcarriers	Sep. 30, 2016USD ($)
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Rent Expense	$ 145	$ 82	$ 406	$ 226
Capacity purchase arrangements (carriers) | carriers	3		3
Capacity purchase arrangements	100.00%		100.00%
Aircraft Commitments [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Remainder of 2017	$ 168		$ 168
2,018	956		956
2,019	806		806
2,020	352		352
2,021	273		273
Thereafter	355		355
Total	2,910		2,910
Capacity Purchase Agreements [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Remainder of 2017	21		21
2,018	118		118
2,019	151		151
2,020	158		158
2,021	165		165
Thereafter	1,250		1,250
Total	1,863		1,863
Aircraft Leases [Member]
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Remainder of 2017	77		77
2,018	342		342
2,019	344		344
2,020	317		317
2,021	280		280
Thereafter	1,263		1,263
Total	2,623		2,623
Facility Leases [Member]
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Remainder of 2017	34		34
2,018	73		73
2,019	65		65
2,020	63		63
2,021	55		55
Thereafter	204		204
Total	$ 494		$ 494
B-737 [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Committed to Purchase (in Aircraft) | aircraft	48		48
Options to Purchase Additional (in Aircraft) | aircraft	37		37
B737-900ER [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Committed to Purchase (in Aircraft) | aircraft	16		16
B737 MAX [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Committed to Purchase (in Aircraft) | aircraft	32		32
A-320-Neo [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Unrecorded Unconditional Purchase Obligation, Option to Cancel | aircraft	30		30
E175 [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Committed to Purchase (in Aircraft) | aircraft	23		23
Number Deferred (in Aircraft) | aircraft	3		3
Options to Purchase Additional (in Aircraft) | aircraft	30		30
Property Subject to Operating Lease [Member] | B-737 [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of units involved in lease contracts | aircraft	10		10
Property Subject to Operating Lease [Member] | Airbus [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of units involved in lease contracts | aircraft	55		55
Property Subject to Operating Lease [Member] | Q400 [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of units involved in lease contracts | aircraft	15		15
Property Subject to Operating Lease [Member] | E175 [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of units involved in lease contracts | aircraft	21		21
Property Available for Operating Lease [Member] | A321neo [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of optional additional units | aircraft	8		8
Property Available for Operating Lease [Member] | E175 [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of optional additional units | aircraft	14		14
Capacity Purchase Agreement with SkyWest [Member] | E175 [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of optional additional units | aircraft	8		8
Aircraft Maintenance Deposits [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Remainder of 2017	$ 15		$ 15
2,018	61		61
2,019	65		65
2,020	68		68
2,021	63		63
Thereafter	90		90
Total	362		362
Aircraft Maintenance and Parts Management [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Remainder of 2017	8		8
2,018	32		32
2,019	35		35
2,020	37		37
2,021	40		40
Thereafter	0		0
Total	$ 152		$ 152

SHAREHOLDERS' EQUITY, CASH DIVI

SHAREHOLDERS' EQUITY, CASH DIVIDEND (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Cash dividend declared per share (usd per share)	$ 0.3	$ 0.275	$ 0.9	$ 0.825
Payments of Dividends	$ 37		$ 111	$ 102

SHAREHOLDERS' EQUITY, COMMON ST

SHAREHOLDERS' EQUITY, COMMON STOCK REPURCHASE (Details) - 2015 1 Billion Repurchase Program [Member] - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended		25 Months Ended
	Oct. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Aug. 31, 2015
Class of Stock [Line Items]
Stock repurchase program, authorized amount (shares)							$ 1,000
Stock repurchased during period (shares)						4,724,181
Value of stock repurchased during period						$ 363
Shares		355,415	0	612,095	2,594,809
Amount		$ 28	$ 0	$ 50	$ 193
Subsequent Event [Member]
Class of Stock [Line Items]
Stock repurchased during period (shares)	369,182
Value of stock repurchased during period	$ 25

SHAREHOLDERS' EQUITY, ACCUMULAT

SHAREHOLDERS' EQUITY, ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Equity [Abstract]
Marketable securities	$ 0	$ (3)
Employee benefit plans	(287)	(299)
Interest rate derivatives	(2)	(3)
Total	$ (289)	$ (305)

OPERATING SEGMENT INFORMATION42

OPERATING SEGMENT INFORMATION (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment			3
Capacity purchase arrangements	100.00%		100.00%
Operating revenues
Passenger, Mainline	$ 1,562	$ 1,073	$ 4,390	$ 3,036
Passenger, Regional	262	249	725	682
Total passenger revenue	1,824	1,322	5,115	3,718
CPA revenues	0	0	0	0
Freight and mail	32	31	88	82
Other - net revenue	264	213	768	607
Total Operating Revenues	2,120	1,566	5,971	4,407
Operating expenses
Operating Expenses, Excluding Fuel	1,313	941	3,822	2,706
Economic fuel	368	225	1,051	593
Total Operating Expenses	1,681	1,166	4,873	3,299
Nonoperating Income (Expense)
Interest income	9	7	25	20
Interest expense	(26)	(11)	(77)	(33)
Other	5	6	12	19
Nonoperating Income (Expense) Total	(12)	2	(40)	6
Income (loss) before income tax	427	402	1,058	1,114
Air Group Adjusted [Member]
Operating revenues
Passenger, Mainline	1,562	1,073	4,390	3,036
Passenger, Regional	262	249	725	682
Total passenger revenue	1,824	1,322	5,115	3,718
CPA revenues	0	0	0	0
Freight and mail	32	31	88	82
Other - net revenue	264	213	768	607
Total Operating Revenues	2,120	1,566	5,971	4,407
Operating expenses
Operating Expenses, Excluding Fuel	1,289	919	3,734	2,670
Economic fuel	373	222	1,044	602
Total Operating Expenses	1,662	1,141	4,778	3,272
Nonoperating Income (Expense)
Interest income	9	7	25	20
Interest expense	(26)	(11)	(77)	(33)
Other	5	6	12	19
Nonoperating Income (Expense) Total	(12)	2	(40)	6
Income (loss) before income tax	446	427	1,153	1,141
Alaska Mainline [Member]
Operating revenues
Passenger, Mainline	1,562	1,073	4,390	3,036
Passenger, Regional	0	0	0	0
Total passenger revenue	1,562	1,073	4,390	3,036
CPA revenues	0	0	0	0
Freight and mail	30	30	84	79
Other - net revenue	242	190	708	546
Total Operating Revenues	1,834	1,293	5,182	3,661
Operating expenses
Operating Expenses, Excluding Fuel	1,077	727	3,101	2,107
Economic fuel	328	188	924	512
Total Operating Expenses	1,405	915	4,025	2,619
Nonoperating Income (Expense)
Interest income	11	7	27	19
Interest expense	(23)	(7)	(68)	(23)
Other	5	5	11	15
Nonoperating Income (Expense) Total	(7)	5	(30)	11
Income (loss) before income tax	422	383	1,127	1,053
Alaska Regional [Member]
Operating revenues
Passenger, Mainline	0	0	0	0
Passenger, Regional	262	249	725	682
Total passenger revenue	262	249	725	682
CPA revenues	0	0	0	0
Freight and mail	1	1	3	3
Other - net revenue	21	21	57	57
Total Operating Revenues	284	271	785	742
Operating expenses
Operating Expenses, Excluding Fuel	219	202	625	580
Economic fuel	45	34	120	90
Total Operating Expenses	264	236	745	670
Nonoperating Income (Expense)
Interest income	0	0	0	0
Interest expense	0	0	0	0
Other	0	0	0	0
Nonoperating Income (Expense) Total	0	0	0	0
Income (loss) before income tax	20	35	40	72
Horizon [Member]
Operating revenues
Passenger, Mainline	0	0	0	0
Passenger, Regional	0	0	0	0
Total passenger revenue	0	0	0	0
CPA revenues	112	109	317	322
Freight and mail	1	0	1	0
Other - net revenue	1	1	3	3
Total Operating Revenues	114	110	321	325
Operating expenses
Operating Expenses, Excluding Fuel	105	99	324	305
Economic fuel	0	0	0	0
Total Operating Expenses	105	99	324	305
Nonoperating Income (Expense)
Interest income	0	0	0	1
Interest expense	(4)	(2)	(9)	(7)
Other	0	0	1	0
Nonoperating Income (Expense) Total	(4)	(2)	(8)	(6)
Income (loss) before income tax	5	9	(11)	14
Intersegment Elimination [Member]
Operating revenues
Passenger, Mainline	0	0	0	0
Passenger, Regional	0	0	0	0
Total passenger revenue	0	0	0	0
CPA revenues	(112)	(109)	(317)	(322)
Freight and mail	0	0	0	0
Other - net revenue	0	1	0	1
Total Operating Revenues	(112)	(108)	(317)	(321)
Operating expenses
Operating Expenses, Excluding Fuel	(112)	(109)	(316)	(322)
Economic fuel	0	0	0	0
Total Operating Expenses	(112)	(109)	(316)	(322)
Nonoperating Income (Expense)
Interest income	(2)	0	(2)	0
Interest expense	1	(2)	0	(3)
Other	0	1	0	4
Nonoperating Income (Expense) Total	(1)	(1)	(2)	1
Income (loss) before income tax	(1)	0	(3)	2
Special Revenue and Charges [Member]
Operating revenues
Passenger, Mainline	0	0	0	0
Passenger, Regional	0	0	0	0
Total passenger revenue	0	0	0	0
CPA revenues	0	0	0	0
Freight and mail	0	0	0	0
Other - net revenue	0	0	0	0
Total Operating Revenues	0	0	0	0
Operating expenses
Operating Expenses, Excluding Fuel	24	22	88	36
Economic fuel	(5)	3	7	(9)
Total Operating Expenses	19	25	95	27
Nonoperating Income (Expense)
Interest income	0	0	0	0
Interest expense	0	0	0	0
Other	0	0	0	0
Nonoperating Income (Expense) Total	0	0	0	0
Income (loss) before income tax	$ (19)	$ (25)	$ (95)	$ (27)

OPERATING SEGMENT INFORMATION,

OPERATING SEGMENT INFORMATION, ASSETS (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Total assets	$ 10,739	$ 9,962
Alaska Airlines [Member]
Total assets	16,382	15,260
Horizon [Member]
Total assets	914	690
Parent [Member]
Total assets	$ (6,557)	$ (5,988)