COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Quarterly Report | true | |
Entity File Number | 1-8957 | |
Entity Registrant Name | ALASKA AIR GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 91-1292054 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Trading Symbol | ALK | |
Entity Address, Address Line One | 19300 International Boulevard, | |
Entity Address, City or Town | Seattle, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98188 | |
City Area Code | (206) | |
Local Phone Number | 392-5040 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 123,272,253 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000766421 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 244 | $ 105 |
Marketable securities | 1,383 | 1,131 |
Total cash and marketable securities | 1,627 | 1,236 |
Receivables—net | 389 | 366 |
Inventories and supplies—net | 55 | 60 |
Prepaid expenses and other current assets | 147 | 125 |
Total Current Assets | 2,218 | 1,787 |
Property and Equipment | ||
Aircraft and other flight equipment | 8,417 | 8,221 |
Other property and equipment | 1,238 | 1,363 |
Deposits for future flight equipment | 396 | 439 |
Property and Equipment Total | 10,051 | 10,023 |
Less accumulated depreciation and amortization | 3,307 | 3,242 |
Total Property and Equipment - Net | 6,744 | 6,781 |
Operating Lease, Right-of-Use Asset | 1,696 | 0 |
Goodwill | 1,943 | 1,943 |
Intangible assets - net | 125 | 127 |
Other noncurrent assets | 225 | 274 |
Other Assets | 3,989 | 2,344 |
Total Assets | 12,951 | 10,912 |
Current Liabilities | ||
Accounts payable | 156 | 132 |
Accrued wages, vacation and payroll taxes | 371 | 415 |
Air traffic liability | 1,173 | 788 |
Other accrued liabilities | 505 | 416 |
Deferred revenue, current | 768 | 705 |
Operating Lease, Liability, Current | 273 | 0 |
Current portion of long-term debt | 288 | 486 |
Total Current Liabilities | 3,534 | 2,942 |
Long-Term Debt, Net of Current Portion | 1,538 | 1,617 |
Noncurrent Liabilities | ||
Operating Lease, Liability, Noncurrent | 1,424 | 0 |
Deferred income taxes | 582 | 512 |
Deferred revenue, noncurrent | 1,181 | 1,169 |
Obligation for pension and postretirement medical benefits | 522 | 503 |
Other liabilities | 197 | 418 |
Other Liabilities and Credits Totals | 3,906 | 2,602 |
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: 2019 - 131,365,855 shares; 2018 - 130,813,476 shares, Outstanding: 2019 - 123,338,144 shares; 2018 - 123,194,430 shares | 1 | 1 |
Capital in excess of par value | 270 | 232 |
Treasury stock (common), at cost: 2019 - 8,027,711 shares; 2018 - 7,619,046 shares | (593) | (568) |
Accumulated other comprehensive loss | (422) | (448) |
Retained earnings | 4,717 | 4,534 |
Total Shareholders' Equity | 3,973 | 3,751 |
Total Liabilities and Shareholders' Equity | $ 12,951 | $ 10,912 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 400,000,000 |
Common stock, shares issued (shares) | 131,365,855 | 130,813,476 |
Common stock, shares outstanding (shares) | 123,338,144 | 123,194,430 |
Treasury Stock, Shares (shares) | 8,027,711 | 7,619,046 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Revenues | ||||
Total Operating Revenues | $ 2,288 | $ 2,156 | $ 4,164 | $ 3,988 |
Operating Expenses | ||||
Wages and benefits | 567 | 544 | 1,124 | 1,080 |
Variable incentive pay | 44 | 38 | 79 | 77 |
Aircraft fuel, including hedging gains and losses | 502 | 475 | 922 | 884 |
Aircraft maintenance | 115 | 106 | 235 | 213 |
Aircraft rent | 82 | 77 | 165 | 151 |
Landing fees and other rentals | 113 | 110 | 245 | 236 |
Contracted services | 70 | 76 | 142 | 157 |
Selling expenses | 87 | 88 | 159 | 166 |
Depreciation and amortization | 105 | 97 | 211 | 191 |
Food and beverage service | 53 | 55 | 102 | 105 |
Third-party regional carrier expense | 42 | 39 | 83 | 76 |
Other | 136 | 141 | 274 | 282 |
Special items - merger-related costs | 8 | 39 | 34 | 45 |
Special items—other | 0 | 0 | 0 | 25 |
Total Operating Expenses | 1,924 | 1,885 | 3,775 | 3,688 |
Operating Income | 364 | 271 | 389 | 300 |
Nonoperating Income (Expense) | ||||
Interest income | 11 | 10 | 20 | 18 |
Interest expense | (20) | (25) | (42) | (49) |
Interest capitalized | 3 | 4 | 7 | 9 |
Other—net | (7) | (1) | (17) | (13) |
Nonoperating Income (Expense) Total | (13) | (12) | (32) | (35) |
Income Before Income Tax | 351 | 259 | 357 | 265 |
Income tax expense | 89 | 66 | 91 | 68 |
Net Income | $ 262 | $ 193 | $ 266 | $ 197 |
Basic Earnings Per Share (usd per share) | $ 2.12 | $ 1.57 | $ 2.15 | $ 1.60 |
Diluted Earnings Per Share (usd per share) | $ 2.11 | $ 1.56 | $ 2.14 | $ 1.59 |
Shares used for computation: | ||||
Basic shares (shares) | 123,418 | 123,268 | 123,355 | 123,212 |
Diluted shares (shares) | 124,301 | 124,036 | 124,179 | 123,953 |
Passenger Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,111 | $ 1,997 | $ 3,827 | $ 3,681 |
Passenger Revenue [Member] | Passenger [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,111 | 1,997 | 3,827 | 3,681 |
Mileage Plan Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 290 | 275 | 553 | 521 |
Mileage Plan Revenue [Member] | Passenger [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 172 | 167 | 325 | 306 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 118 | 108 | 228 | 215 |
Cargo and Other Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 59 | 51 | 109 | 92 |
Cargo and Other Revenue [Member] | Cargo and Freight [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 59 | $ 51 | $ 109 | $ 92 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 262 | $ 193 | $ 266 | $ 197 |
Related to marketable securities: | ||||
Unrealized holding gain (loss) arising during the period | 13 | (4) | 27 | (17) |
Reclassification of (gain) loss into Other - net nonoperating income (expense) | 0 | 1 | 2 | 3 |
Income tax effect | (3) | 0 | (7) | 3 |
Total | 10 | (3) | 22 | (11) |
Related to employee benefit plans: | ||||
Reclassification of net pension expense into Wages and benefits and Other - net nonoperating income (expense) | 8 | 7 | 16 | 14 |
Income tax effect | (2) | (1) | (4) | (3) |
Total | 6 | 6 | 12 | 11 |
Related to interest rate derivative instruments: | ||||
Unrealized holding gain (loss) arising during the period | (7) | 2 | (12) | 8 |
Reclassification of (gain) loss into Aircraft rent | 0 | 0 | 1 | 1 |
Income tax effect | 2 | 0 | 3 | (2) |
Total | (5) | 2 | (8) | 7 |
Other Comprehensive Income | 11 | 5 | 26 | 7 |
Comprehensive Income | $ 273 | $ 198 | $ 292 | $ 204 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 123.061 | |||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2017 | $ 3,460,000 | $ 1,000 | $ 164,000 | $ (518,000) | $ (380,000) | $ 4,193,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 4,000 | 4,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | 2,000 | 2,000 | ||||
Stock repurchased during period (shares) | (0.186) | |||||
Stock Repurchased During Period, Value | (13,000) | 0 | (13,000) | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 12,000 | 12,000 | ||||
Dividends, Cash | (40,000) | (40,000) | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.312 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.163 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 17,000 | 17,000 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (3,000) | (3,000) | ||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2018 | 3,439,000 | $ 1,000 | 190,000 | (531,000) | (440,000) | 4,219,000 |
Stockholders' Equity Attributable to Parent at Dec. 31, 2017 | 3,460,000 | 1,000 | 164,000 | (518,000) | (380,000) | 4,193,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 197,000 | |||||
Other Comprehensive Income (Loss), Net of Tax | 7,000 | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2018 | 3,593,000 | $ 1,000 | 198,000 | (544,000) | (435,000) | 4,373,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 123.350 | |||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2018 | 3,439,000 | $ 1,000 | 190,000 | (531,000) | (440,000) | 4,219,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 193,000 | 193,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | 5,000 | 5,000 | ||||
Stock repurchased during period (shares) | (0.204) | |||||
Stock Repurchased During Period, Value | (13,000) | (13,000) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 9,000 | 9,000 | ||||
Dividends, Cash | $ (39,000) | (39,000) | ||||
Cash dividend declared per share (usd per share) | $ 0.32 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.058 | |||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ (1,000) | (1,000) | ||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2018 | $ 3,593,000 | $ 1,000 | 198,000 | (544,000) | (435,000) | 4,373,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 123.204 | |||||
Common stock, shares outstanding (shares) | 123,194,430 | 123.194 | ||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2018 | $ 3,751,000 | $ 1,000 | 232,000 | (568,000) | (448,000) | 4,534,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 4,000 | 4,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | 15,000 | 15,000 | ||||
Stock repurchased during period (shares) | (0.215) | |||||
Stock Repurchased During Period, Value | (13,000) | 0 | (13,000) | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 12,000 | 12,000 | ||||
Dividends, Cash | (43,000) | (43,000) | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.391 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.134 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 20,000 | 20,000 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (3,000) | (3,000) | ||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2019 | 3,746,000 | $ 1,000 | 261,000 | (581,000) | (433,000) | 4,498,000 |
Stockholders' Equity Attributable to Parent at Dec. 31, 2018 | 3,751,000 | 1,000 | 232,000 | (568,000) | (448,000) | 4,534,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 266,000 | |||||
Other Comprehensive Income (Loss), Net of Tax | 26,000 | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2019 | 3,973,000 | $ 1,000 | 270,000 | (593,000) | (422,000) | 4,717,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 3,000 | 3,000 | ||||
Common stock, shares outstanding (shares) | 123.504 | |||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2019 | 3,746,000 | $ 1,000 | 261,000 | (581,000) | (433,000) | 4,498,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 262,000 | 262,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | 11,000 | 11,000 | ||||
Stock repurchased during period (shares) | (0.194) | |||||
Stock Repurchased During Period, Value | (12,000) | 0 | (12,000) | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 9,000 | 9,000 | ||||
Dividends, Cash | $ (43,000) | (43,000) | ||||
Cash dividend declared per share (usd per share) | $ 0.35 | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.028 | |||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 0 | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2019 | $ 3,973,000 | $ 1,000 | $ 270,000 | $ (593,000) | $ (422,000) | $ 4,717,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 123,338,144 | 123.338 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net Income | $ 266 | $ 197 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 211 | 191 |
Stock-based compensation and other | 16 | 17 |
Changes in certain assets and liabilities: | ||
Changes in deferred tax provision | 62 | 67 |
Increase in air traffic liability | 385 | 306 |
Increase in deferred revenue | 75 | 52 |
Other—net | 18 | (104) |
Net cash provided by operating activities | 1,033 | 726 |
Property and equipment additions: | ||
Aircraft and aircraft purchase deposits | (172) | (271) |
Other flight equipment | (83) | (56) |
Other property and equipment | (78) | (96) |
Total property and equipment additions, including capitalized interest | (333) | (423) |
Purchases of marketable securities | (885) | (529) |
Sales and maturities of marketable securities | 663 | 474 |
Other investing activities | 25 | 10 |
Net cash used in investing activities | (530) | (468) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 254 | 0 |
Long-term debt payments | (532) | (258) |
Common stock repurchases | (25) | (25) |
Dividends paid | (86) | (79) |
Other financing activities | 26 | 15 |
Net cash used in financing activities | (363) | (347) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 140 | (89) |
Cash, cash equivalents, and restricted cash at beginning of year | 114 | 197 |
Cash, cash equivalents, and restricted cash at end of the period | 254 | 108 |
Cash paid during the period for: | ||
Interest (net of amount capitalized) | 34 | 39 |
Income taxes | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 244 | $ 102 |
Restricted cash included in Prepaid expenses and other current assets | 10 | 6 |
Total cash, cash equivalents, and restricted cash at end of the period | $ 254 | $ 108 |
GENERAL AND SUMMARY OF SIGNIFIC
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
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, or the Company, and its primary subsidiaries, Alaska (including Virgin America in 2018) and Horizon. The condensed consolidated financial statements also include McGee Air Services, a ground services subsidiary of Alaska. 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, 2018 . In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of June 30, 2019 and the results of operations for the three and six months ended June 30, 2019 and 2018 . Such adjustments were of a normal recurring nature. Certain reclassifications and rounding adjustments have been made to prior year financial statements to conform to classifications used in the current year. 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 six months ended June 30, 2019 are not necessarily indicative of operating results for the entire year. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | Ticket revenue is recorded as Passenger revenue, and represents the primary source of the Company's revenue. Also included in Passenger revenue are passenger ancillary revenues, such as bag fees, on-board food and beverage, ticket change fees, and certain revenue from the frequent flyer program. Mileage Plan other revenue includes brand and marketing revenue from our co-branded credit card and other partners and certain interline frequent flyer revenue, net of commissions. Cargo and other revenue includes freight and mail revenue, and to a lesser extent, other ancillary revenue products such as lounge membership and certain commissions. The Company disaggregates revenue by segment in Note 9 . The details within the Company’s statements of operations, segment disclosures, and in this footnote depict the nature, amount, timing and uncertainty of revenue and how cash flows are affected by economic and other factors. Passenger Ticket and Ancillary Services Revenue Passenger revenue recognized in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Passenger ticket revenue, including ticket breakage and net of taxes and fees $ 1,792 $ 1,693 $ 3,231 $ 3,121 Passenger ancillary revenue 147 137 271 254 Mileage Plan passenger revenue 172 167 325 306 Total Passenger revenue $ 2,111 $ 1,997 $ 3,827 $ 3,681 Mileage Plan™ Loyalty Program Mileage Plan™ revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Passenger revenue $ 172 $ 167 $ 325 $ 306 Mileage Plan other revenue 118 108 228 215 Total Mileage Plan revenue $ 290 $ 275 $ 553 $ 521 Cargo and Other Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cargo revenue $ 38 $ 34 $ 68 $ 60 Other revenue 21 17 41 32 Total Cargo and other revenue $ 59 $ 51 $ 109 $ 92 Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $89 million and $79 million from the prior year-end air traffic liability balance for the three months ended June 30, 2019 and 2018 , and $563 million and $513 million for the six months ended June 30, 2019 and 2018 . Mileage Plan TM liabilities The Company records a receivable for amounts due from the bank partner and from other partners as mileage credits are sold until the payments are collected. The Company had $122 million of such receivables as of June 30, 2019 and $119 million as of December 31, 2018 . The table below presents a roll forward of the total frequent flyer liability (in millions): Six Months Ended June 30, 2019 2018 Total Deferred Revenue balance at January 1 $ 1,874 $ 1,725 Travel miles and companion certificate redemption - Passenger revenue (325 ) (306 ) Miles redeemed on partner airlines - Other revenue (51 ) (44 ) Increase in liability for mileage credits issued 451 402 Total Deferred Revenue balance at June 30 $ 1,949 $ 1,777 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , total cost basis for all marketable securities was $1.4 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): June 30, 2019 December 31, 2018 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 409 $ — $ 409 $ 293 $ — $ 293 Foreign government bonds — 25 25 — 26 26 Asset-backed securities — 189 189 — 190 190 Mortgage-backed securities — 120 120 — 92 92 Corporate notes and bonds — 623 623 — 520 520 Municipal securities — 17 17 — 10 10 Total Marketable securities 409 974 1,383 293 838 1,131 Derivative instruments Fuel hedge—call options — 7 7 — 4 4 Interest rate swap agreements — 4 4 — 10 10 Total Assets $ 409 $ 985 $ 1,394 $ 293 $ 852 $ 1,145 Liabilities Derivative instruments Interest rate swap agreements — (10 ) (10 ) — (7 ) (7 ) Total Liabilities $ — $ (10 ) $ (10 ) $ — $ (7 ) $ (7 ) The Company uses both 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 Unrealized losses from marketable securities are primarily attributable to changes in interest rates. Management does not believe any unrealized losses represent other-than-temporary impairments based on its evaluation of available information as of June 30, 2019 . Maturities for marketable securities (in millions): June 30, 2019 Cost Basis Fair Value Due in one year or less $ 298 $ 299 Due after one year through five years 1,065 1,080 Due after five years through 10 years 4 4 Total $ 1,367 $ 1,383 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, Cash Equivalents and Restricted Cash : Cash equivalents consist of highly liquid investments with original maturities of three months or less, such as money market funds, commercial paper and certificates of deposit. They are carried at cost, which approximates fair value. The Company's restricted cash balances are primarily used to guarantee various letters of credit, self-insurance programs or other contractual rights. Restricted cash consists of highly liquid securities with original maturities of three months or less. They are carried at cost, which approximates fair value. Debt : Debt assumed in the acquisition of Virgin America was subject to a non-recurring fair valuation adjustment as part of purchase price accounting. The adjustment is amortized over the life of the associated debt. All other fixed-rate debt is carried at cost. To estimate the fair value of all fixed-rate debt as of June 30, 2019 , the Company uses the income approach by discounting cash flows using borrowing rates for comparable debt over the remaining 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 on the consolidated balance sheet and the estimated fair value of long-term fixed-rate debt is as follows (in millions): June 30, 2019 December 31, 2018 Fixed-rate debt at cost $ 580 $ 639 Non-recurring purchase price accounting fair value adjustment 2 3 Total fixed-rate debt $ 582 $ 642 Estimated fair value $ 595 $ 641 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, operating lease assets, goodwill, and intangible assets. These assets are subject to fair valuation when there is evidence of impairment. No material impairment charges were taken in the three and six months ended June 30, 2019 and June 30, 2018 . |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the consolidated balance sheet (in millions): June 30, 2019 December 31, 2018 Fixed-rate notes payable due through 2028 $ 582 $ 642 Variable-rate notes payable due through 2028 1,255 1,473 Less debt issuance costs (11 ) (12 ) Total debt 1,826 2,103 Less current portion 288 486 Long-term debt, less current portion $ 1,538 $ 1,617 Weighted-average fixed-interest rate 3.6 % 4.1 % Weighted-average variable-interest rate 3.6 % 3.9 % During the six months ended June 30, 2019 the Company made debt payments of $532 million , including the prepayment of $392 million of debt. During the six months ended June 30, 2019 , the Company obtained additional secured debt financing of $254 million from multiple lenders. The new debt is secured by a total of nine aircraft. At June 30, 2019 long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2019 $ 146 2020 287 2021 314 2022 275 2023 235 Thereafter 578 Total $ 1,835 Bank Lines of Credit The Company has three credit facilities with availability totaling $516 million as of June 30, 2019 . All three facilities have variable interest rates based on LIBOR plus a specified margin. One credit facility for $250 million expires in June 2021 and is secured by aircraft. The second credit facility for $116 million expires in July 2020 , with a mechanism for annual renewal, and is secured by aircraft. A third credit facility for $150 million 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 $116 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 was in compliance with this covenant at June 30, 2019 . |
LEASES (Notes)
LEASES (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES In 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize assets and liabilities for certain operating leases. Under the new standard, a lessee must recognize a liability on the balance sheet representing the lease payments owed, and a lease asset representing its right to use the underlying asset for the lease term. In 2018, the FASB issued ASU 2018-11, "Targeted Improvements - Leases (Topic 842)," which amended Topic 842 to provide a transition method that would not require adjusting comparative period financial information. The Company transitioned to the new lease accounting standard effective January 1, 2019 utilizing the alternative transition method. Upon transition, the Company recorded a cumulative-effect adjustment to the opening balance of retained earnings of $3 million . The new standard eliminated build-to-suit lease accounting guidance and resulted in the derecognition of build-to-suit assets and liabilities of approximately $150 million each. The Company elected certain practical expedients under the standard, including the practical expedient allowing a policy election to exclude from recognition short-term lease assets and lease liabilities for leases with an initial term of 12 months or less. Such expense was not material for the six months ended June 30, 2019 . Additionally, the Company elected the available package of practical expedients allowing for no reassessment of lease classification for existing leases, no reassessment of expired contracts, and no reassessments of initial direct costs for existing leases. The Company has five asset classes for operating leases: aircraft, capacity purchase arrangements with aircraft (CPA aircraft), airport and terminal facilities, corporate real estate and other equipment. All capitalized lease assets have been recorded on the condensed consolidated balance sheet as of June 30, 2019 as Operating lease assets, with the corresponding liabilities recorded as Operating lease liabilities. Consistent with past accounting, operating rent expense is recognized on a straight-line basis over the term of the lease. At June 30, 2019 , the Operating lease assets balance by asset class was as follows (in millions): Operating lease assets Aircraft $ 1,012 CPA aircraft 622 Airport and terminal facilities 19 Corporate real estate and other 43 Total Operating lease assets $ 1,696 Aircraft At June 30, 2019 , the Company had operating leases for 10 Boeing 737 (B737), 62 Airbus, and 9 Bombardier Q400 aircraft. Additionally, the Company operates 32 Embraer 175 (E175) aircraft through its capacity purchase arrangement with SkyWest Airlines, Inc. (SkyWest). Remaining lease terms for these aircraft extend up to 12 years , with options to extend, subject to negotiation at the end of the term. As extension is not certain, and rates are highly likely to be renegotiated, the extended term is only capitalized when it is reasonably determinable. While aircraft rent is primarily fixed, certain leases contain rental adjustments throughout the lease term which would be recognized as variable expense as incurred. Variable lease expense for aircraft was $1 million and $2 million for the three and six months ended June 30, 2019 , respectively. Capacity purchase agreements with aircraft (CPA aircraft) At June 30, 2019 , 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. Alaska also has CPAs with SkyWest to fly certain routes in the Lower 48 and Canada, and with Peninsula Aviation Services, 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. As Horizon is a wholly-owned subsidiary, intercompany leases between Alaska and Horizon have not been recognized under the standard. The agreement with PenAir does not contain a leasing arrangement, resulting in no asset or liability recognized. Remaining lease terms for CPA aircraft range from 8 years to 11 years . Financial arrangements of the CPAs include a fixed component, representing the costs to operate each aircraft and is capitalized under the new lease accounting standard. CPAs also include variable rent based on actual levels of flying, which is expensed as incurred. Variable lease expense for CPA aircraft for the three and six months ended June 30, 2019 was not material. Airport and terminal facilities The Company leases ticket counters, gates, cargo and baggage space, ground equipment, office space and other support areas at numerous airports. For this asset class, the Company has elected to combine lease and non-lease components. The majority of airport and terminal facility leases are not capitalized because they do not meet the definition of controlled assets under the standard, or because the lease payments are entirely variable. For airports where leased assets are identified, and where the contract includes fixed lease payments, operating lease assets and lease liabilities have been recorded. The Company is also commonly responsible for maintenance, insurance and other facility-related expenses and services under these agreements. These costs are recognized as variable expense in the period incurred. Airport and terminal facilities variable lease expense was $61 million and $145 million for the three and six months ended June 30, 2019 , respectively. In 2018, the Company leased 12 airport slots at LaGuardia Airport and eight airport slots at Reagan National Airport to a third party. For these leases, the Company recorded $3 million and $6 million of lease income during the three and six months ended June 30, 2019 , respectively. Corporate real estate and other leases Leased corporate real estate is primarily for office space in hub cities, land leases, and reservation centers. For this asset class, the Company has elected to combine lease and non-lease components under the standard. Other leased assets are comprised of other ancillary contracts and items including leased flight simulators and spare engines. Variable lease expense related to corporate real estate and other leases for the six months ended June 30, 2019 was $5 million . Components of Lease Expense The impact of leases, including variable lease cost, on earnings for the three and six months ended June 30, 2019 was as follows (in millions): Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Expense Aircraft Aircraft rent $ 62 $ 123 CPA aircraft Aircraft rent 20 40 Airport and terminal facilities Landing fees and other rentals 62 146 Corporate real estate and other Landing fees and other rentals 4 9 Total lease expense $ 148 $ 318 Revenue Lease income Cargo and other revenues (3 ) (6 ) Net lease impact $ 145 $ 312 Total rent expense for the three and six months ended June 30, 2018 was $137 million and $290 million , respectively. Supplemental Cash Flow Information Supplemental cash flow information related to leases was as follows (in millions): Six Months Ended June 30, 2019 Cash paid for capitalized operating leases $ 177 Operating lease assets obtained in exchange for lease obligations 47 Lease Term and Discount Rate As most leases do not provide an implicit interest rate, the Company generally utilizes the incremental borrowing rate (IBR) based on information available at the commencement date of the lease to determine the present value of lease payments. The weighted average IBR and weighted average remaining lease term (in years) for all asset classes were as follows at June 30, 2019 : Weighted Average IBR Weighted Average Remaining Lease Term Aircraft 4.2 % 6.8 CPA aircraft 4.3 % 9.7 Airports and terminal facilities 4.1 % 10.4 Corporate real estate and other 4.4 % 37.7 Maturities of Lease Liabilities Future minimum lease payments under non-cancellable leases as of June 30, 2019 (in millions): Aircraft CPA Aircraft Airport and Terminal Facilities Corporate Real Estate & Other Remainder of 2019 $ 128 $ 40 1 $ 5 2020 233 79 3 8 2021 194 79 3 6 2022 169 79 2 3 2023 115 79 2 2 Thereafter 324 408 12 74 Total lease payments $ 1,163 $ 764 $ 23 $ 98 Less: Imputed interest (151 ) (142 ) (4 ) (54 ) Total operating lease liabilities $ 1,012 $ 622 $ 19 $ 44 As of June 30, 2019 , the Company has one scheduled lease delivery of an A321neo aircraft remaining in 2019 , valued at $52 million . We also had three scheduled lease deliveries of E175 aircraft in 2021 to be operated by SkyWest. Subsequent to June 30, 2019, the Company canceled these aircraft deliveries through an amendment to the capacity purchase agreement. All future lease contracts have remaining non-cancelable lease terms ranging from 2019 to 2033 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Net periodic benefit costs for qualified defined-benefit plans include the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Service cost $ 10 $ 12 $ 21 $ 24 Pension expense included in Wages and benefits 10 12 21 24 Interest cost 22 19 44 39 Expected return on assets (23 ) (26 ) (47 ) (53 ) Recognized actuarial loss 9 8 18 16 Pension expense included in Nonoperating Income (Expense) $ 8 $ 1 $ 15 $ 2 |
COMMITMENTS
COMMITMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS AND CONTINGENCIES Future minimum payments for commitments, excluding operating leases, as of June 30, 2019 (in millions): Aircraft Commitments (a) Capacity Purchase Agreements (b) Aircraft Maintenance Deposits Remainder of 2019 $ 255 $ 69 $ 33 2020 542 145 73 2021 553 166 62 2022 303 174 51 2023 103 179 27 Thereafter 32 1,065 9 Total $ 1,788 $ 1,798 $ 255 (a) Includes non-cancelable contractual commitments for aircraft and engines, buyer furnished equipment, and aircraft maintenance and parts management. (b) Includes all non-aircraft lease costs associated with capacity purchase agreements. Aircraft Commitments Aircraft purchase commitments include non-cancelable contractual commitments for aircraft and engines. As of June 30, 2019 , the Company had commitments to purchase 32 B737 MAX9 aircraft, with deliveries in the remainder of 2019 through 2023 . Future minimum contractual payments for these aircraft have been updated to reflect the most current anticipated delivery timing for B737 MAX9 aircraft, which has been delayed as a result of the grounding order mandated by the FAA on March 13, 2019. The Company also has commitments to purchase five E175 aircraft with deliveries in the remainder of 2019 through 2021 and has cancelable purchase commitments for 30 Airbus A320neo aircraft with deliveries from 2023 through 2025 . In addition, the Company has options to purchase 37 B737 MAX aircraft from 2021 through 2024 and 30 E175 aircraft from 2021 through 2023 . The Company also has the option to increase capacity flown by SkyWest with eight additional E175 aircraft with deliveries from 2021 to 2022 . The cancelable purchase commitments and option payments 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. The court certified a class of approximately 1,800 flight attendants in November 2016. The Company believes the claims in this case are without factual and legal merit. In July 2018, the Court granted in part Plaintiffs' motion for summary judgment, finding Virgin America, and Alaska Airlines, as a successor-in-interest to Virgin America, responsible for various damages and penalties sought by the class members. On February 4, 2019, the Court entered final judgment against Virgin America and Alaska Airlines in the amount of approximately $78 million . It did not award injunctive relief against Alaska Airlines. The Company is seeking an appellate court ruling that the California laws on which the judgment is based are invalid as applied to national airlines pursuant to the U.S. Constitution and federal law and for other employment law and improper class certification reasons. The Company remains confident that a higher court will respect the federal preemption principles that were enacted to shield inter-state common carriers from a patchwork of state and local wage and hour regulations such as those at issue in this case and agree with the Company's other bases for appeal. For these reasons, no loss has been accrued. 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 judges and juries. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Common Stock Repurchase In August 2015 , the Board of Directors authorized a $1 billion share repurchase program. As of June 30, 2019 , the Company has repurchased 6.3 million shares for $463 million under this program. Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss, net of tax (in millions): June 30, 2019 December 31, 2018 Related to marketable securities $ 11 $ (11 ) Related to employee benefit plans (428 ) (440 ) Related to interest rate derivatives (5 ) 3 Total $ (422 ) $ (448 ) 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 six months ended June 30, 2019 and 2018 |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENT INFORMATION | OPERATING SEGMENT INFORMATION Alaska Air Group has two operating airlines—Alaska (including Virgin America after the single operating certificate was received in January 2018) 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 scheduled air transportation on Alaska's Boeing or Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, and Costa Rica. • 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 Air Group parent company activity, McGee Air Services, 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's 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 June 30, 2019 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger revenues $ 1,767 $ 344 $ — $ — $ 2,111 $ — $ 2,111 CPA revenues — — 112 (112 ) — — — Mileage Plan other revenue 105 13 — — 118 — 118 Cargo and other 57 — — 2 59 — 59 Total operating revenues 1,929 357 112 (110 ) 2,288 — 2,288 Operating expenses Operating expenses, excluding fuel 1,167 268 95 (116 ) 1,414 8 1,422 Economic fuel 422 77 — — 499 3 502 Total operating expenses 1,589 345 95 (116 ) 1,913 11 1,924 Nonoperating income (expense) Interest income 17 — — (6 ) 11 — 11 Interest expense (19 ) — (7 ) 6 (20 ) — (20 ) Interest capitalized 3 — — — 3 — 3 Other - net (7 ) — — — (7 ) — (7 ) Total nonoperating income (expense) (6 ) — (7 ) — (13 ) — (13 ) Income (loss) before income tax $ 334 $ 12 $ 10 $ 6 $ 362 $ (11 ) $ 351 Three Months Ended June 30, 2018 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger revenues $ 1,711 $ 286 $ — $ — $ 1,997 $ — $ 1,997 CPA revenues — — 137 (137 ) — — — Mileage Plan other revenue 99 9 — — 108 — 108 Cargo and other 49 1 1 — 51 — 51 Total operating revenues 1,859 296 138 (137 ) 2,156 — 2,156 Operating expenses Operating expenses, excluding fuel 1,135 249 123 (136 ) 1,371 39 1,410 Economic fuel 432 65 — — 497 (22 ) 475 Total operating expenses 1,567 314 123 (136 ) 1,868 17 1,885 Nonoperating income (expense) Interest income 13 — — (3 ) 10 — 10 Interest expense (22 ) — (5 ) 2 (25 ) — (25 ) Interest capitalized 4 — — — 4 — 4 Other - net 1 (2 ) — — (1 ) — (1 ) Total nonoperating income (expense) (4 ) (2 ) (5 ) (1 ) (12 ) — (12 ) Income (loss) before income tax $ 288 $ (20 ) $ 10 $ (2 ) $ 276 $ (17 ) $ 259 Six Months Ended June 30, 2019 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger revenues $ 3,189 $ 638 $ — $ — $ 3,827 $ — $ 3,827 CPA revenues — — 228 (228 ) — — — Mileage Plan other revenue 205 23 — — 228 — 228 Cargo and other 105 1 1 2 109 — 109 Total operating revenues 3,499 662 229 (226 ) 4,164 — 4,164 Operating expenses Operating expenses, excluding fuel 2,319 542 192 (234 ) 2,819 34 2,853 Economic fuel 780 143 — — 923 (1 ) 922 Total operating expenses 3,099 685 192 (234 ) 3,742 33 3,775 Nonoperating income (expense) Interest income 33 — — (13 ) 20 — 20 Interest expense (40 ) — (15 ) 13 (42 ) — (42 ) Interest capitalized 7 — — — 7 — 7 Other - net (17 ) — — — (17 ) — (17 ) Total nonoperating income (expense) (17 ) — (15 ) — (32 ) — (32 ) Income (loss) before income tax $ 383 $ (23 ) $ 22 $ 8 $ 390 $ (33 ) $ 357 Six Months Ended June 30, 2018 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger revenues $ 3,152 $ 529 $ — $ — $ 3,681 $ — $ 3,681 CPA revenues — — 247 (247 ) — — — Mileage Plan other revenue 197 18 — — 215 — 215 Cargo and other 89 1 2 — 92 — 92 Total operating revenues 3,438 548 249 (247 ) 3,988 — 3,988 Operating expenses Operating expenses, excluding fuel 2,266 488 227 (247 ) 2,734 70 2,804 Economic fuel 799 120 — — 919 (35 ) 884 Total operating expenses 3,065 608 227 (247 ) 3,653 35 3,688 Nonoperating income (expense) Interest income 24 — — (6 ) 18 — 18 Interest expense (44 ) — (10 ) 5 (49 ) — (49 ) Interest capitalized 8 — 1 — 9 — 9 Other - net (4 ) (9 ) — — (13 ) — (13 ) Total nonoperating income (expense) (16 ) (9 ) (9 ) (1 ) (35 ) — (35 ) Income (loss) before income tax $ 357 $ (69 ) $ 13 $ (1 ) $ 300 $ (35 ) $ 265 (a) Includes consolidating entries, Air Group 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 excludes certain income and charges. (c) Includes merger-related costs, mark-to-market fuel-hedge accounting adjustments, and other special items. Total assets were as follows (in millions): June 30, 2019 December 31, 2018 Mainline $ 19,050 $ 16,853 Horizon 1,222 1,229 Consolidating & Other (7,321 ) (7,170 ) Consolidated $ 12,951 $ 10,912 |
GENERAL AND SUMMARY OF SIGNIF_2
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The condensed consolidated financial statements include the accounts of Air Group, or the Company, and its primary subsidiaries, Alaska (including Virgin America in 2018) and Horizon. The condensed consolidated financial statements also include McGee Air Services, a ground services subsidiary of Alaska. 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, 2018 . In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of June 30, 2019 and the results of operations for the three and six months ended June 30, 2019 and 2018 . Such adjustments were of a normal recurring nature. Certain reclassifications and rounding adjustments have been made to prior year financial statements to conform to classifications used in the current year. 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 six months ended June 30, 2019 are not necessarily indicative of operating results for the entire year. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Mileage Plan™ revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Passenger revenue $ 172 $ 167 $ 325 $ 306 Mileage Plan other revenue 118 108 228 215 Total Mileage Plan revenue $ 290 $ 275 $ 553 $ 521 Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cargo revenue $ 38 $ 34 $ 68 $ 60 Other revenue 21 17 41 32 Total Cargo and other revenue $ 59 $ 51 $ 109 $ 92 Passenger revenue recognized in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Passenger ticket revenue, including ticket breakage and net of taxes and fees $ 1,792 $ 1,693 $ 3,231 $ 3,121 Passenger ancillary revenue 147 137 271 254 Mileage Plan passenger revenue 172 167 325 306 Total Passenger revenue $ 2,111 $ 1,997 $ 3,827 $ 3,681 |
Contract with Customer Liabilities | The table below presents a roll forward of the total frequent flyer liability (in millions): Six Months Ended June 30, 2019 2018 Total Deferred Revenue balance at January 1 $ 1,874 $ 1,725 Travel miles and companion certificate redemption - Passenger revenue (325 ) (306 ) Miles redeemed on partner airlines - Other revenue (51 ) (44 ) Increase in liability for mileage credits issued 451 402 Total Deferred Revenue balance at June 30 $ 1,949 $ 1,777 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Activity for Marketable Securities | |
Investments Classified by Contractual Maturity Date | Maturities for marketable securities (in millions): June 30, 2019 Cost Basis Fair Value Due in one year or less $ 298 $ 299 Due after one year through five years 1,065 1,080 Due after five years through 10 years 4 4 Total $ 1,367 $ 1,383 |
Fair Value, by Balance Sheet Grouping | Fixed-rate debt on the consolidated balance sheet and the estimated fair value of long-term fixed-rate debt is as follows (in millions): June 30, 2019 December 31, 2018 Fixed-rate debt at cost $ 580 $ 639 Non-recurring purchase price accounting fair value adjustment 2 3 Total fixed-rate debt $ 582 $ 642 Estimated fair value $ 595 $ 641 Fair values of financial instruments on the consolidated balance sheet (in millions): June 30, 2019 December 31, 2018 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 409 $ — $ 409 $ 293 $ — $ 293 Foreign government bonds — 25 25 — 26 26 Asset-backed securities — 189 189 — 190 190 Mortgage-backed securities — 120 120 — 92 92 Corporate notes and bonds — 623 623 — 520 520 Municipal securities — 17 17 — 10 10 Total Marketable securities 409 974 1,383 293 838 1,131 Derivative instruments Fuel hedge—call options — 7 7 — 4 4 Interest rate swap agreements — 4 4 — 10 10 Total Assets $ 409 $ 985 $ 1,394 $ 293 $ 852 $ 1,145 Liabilities Derivative instruments Interest rate swap agreements — (10 ) (10 ) — (7 ) (7 ) Total Liabilities $ — $ (10 ) $ (10 ) $ — $ (7 ) $ (7 ) |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt obligations on the consolidated balance sheet (in millions): June 30, 2019 December 31, 2018 Fixed-rate notes payable due through 2028 $ 582 $ 642 Variable-rate notes payable due through 2028 1,255 1,473 Less debt issuance costs (11 ) (12 ) Total debt 1,826 2,103 Less current portion 288 486 Long-term debt, less current portion $ 1,538 $ 1,617 Weighted-average fixed-interest rate 3.6 % 4.1 % Weighted-average variable-interest rate 3.6 % 3.9 % |
Schedule of Maturities of Long-term Debt | At June 30, 2019 long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2019 $ 146 2020 287 2021 314 2022 275 2023 235 Thereafter 578 Total $ 1,835 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The impact of leases, including variable lease cost, on earnings for the three and six months ended June 30, 2019 was as follows (in millions): Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Expense Aircraft Aircraft rent $ 62 $ 123 CPA aircraft Aircraft rent 20 40 Airport and terminal facilities Landing fees and other rentals 62 146 Corporate real estate and other Landing fees and other rentals 4 9 Total lease expense $ 148 $ 318 Revenue Lease income Cargo and other revenues (3 ) (6 ) Net lease impact $ 145 $ 312 June 30, 2019 : Weighted Average IBR Weighted Average Remaining Lease Term Aircraft 4.2 % 6.8 CPA aircraft 4.3 % 9.7 Airports and terminal facilities 4.1 % 10.4 Corporate real estate and other 4.4 % 37.7 |
Schedule of Lease, Supplemental Cash Flows [Table Text Block] | Supplemental cash flow information related to leases was as follows (in millions): Six Months Ended June 30, 2019 Cash paid for capitalized operating leases $ 177 Operating lease assets obtained in exchange for lease obligations 47 |
Schedule of Lease Assets [Table Text Block] | At June 30, 2019 , the Operating lease assets balance by asset class was as follows (in millions): Operating lease assets Aircraft $ 1,012 CPA aircraft 622 Airport and terminal facilities 19 Corporate real estate and other 43 Total Operating lease assets $ 1,696 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments under non-cancellable leases as of June 30, 2019 (in millions): Aircraft CPA Aircraft Airport and Terminal Facilities Corporate Real Estate & Other Remainder of 2019 $ 128 $ 40 1 $ 5 2020 233 79 3 8 2021 194 79 3 6 2022 169 79 2 3 2023 115 79 2 2 Thereafter 324 408 12 74 Total lease payments $ 1,163 $ 764 $ 23 $ 98 Less: Imputed interest (151 ) (142 ) (4 ) (54 ) Total operating lease liabilities $ 1,012 $ 622 $ 19 $ 44 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net periodic benefit costs for qualified defined-benefit plans include the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Service cost $ 10 $ 12 $ 21 $ 24 Pension expense included in Wages and benefits 10 12 21 24 Interest cost 22 19 44 39 Expected return on assets (23 ) (26 ) (47 ) (53 ) Recognized actuarial loss 9 8 18 16 Pension expense included in Nonoperating Income (Expense) $ 8 $ 1 $ 15 $ 2 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases and Unrecorded Unconditional Purchase Obligtaions | Future minimum payments for commitments, excluding operating leases, as of June 30, 2019 (in millions): Aircraft Commitments (a) Capacity Purchase Agreements (b) Aircraft Maintenance Deposits Remainder of 2019 $ 255 $ 69 $ 33 2020 542 145 73 2021 553 166 62 2022 303 174 51 2023 103 179 27 Thereafter 32 1,065 9 Total $ 1,788 $ 1,798 $ 255 (a) Includes non-cancelable contractual commitments for aircraft and engines, buyer furnished equipment, and aircraft maintenance and parts management. (b) Includes all non-aircraft lease costs associated with capacity purchase agreements. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive loss, net of tax (in millions): June 30, 2019 December 31, 2018 Related to marketable securities $ 11 $ (11 ) Related to employee benefit plans (428 ) (440 ) Related to interest rate derivatives (5 ) 3 Total $ (422 ) $ (448 ) |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Operating segment information is as follows (in millions): Three Months Ended June 30, 2019 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger revenues $ 1,767 $ 344 $ — $ — $ 2,111 $ — $ 2,111 CPA revenues — — 112 (112 ) — — — Mileage Plan other revenue 105 13 — — 118 — 118 Cargo and other 57 — — 2 59 — 59 Total operating revenues 1,929 357 112 (110 ) 2,288 — 2,288 Operating expenses Operating expenses, excluding fuel 1,167 268 95 (116 ) 1,414 8 1,422 Economic fuel 422 77 — — 499 3 502 Total operating expenses 1,589 345 95 (116 ) 1,913 11 1,924 Nonoperating income (expense) Interest income 17 — — (6 ) 11 — 11 Interest expense (19 ) — (7 ) 6 (20 ) — (20 ) Interest capitalized 3 — — — 3 — 3 Other - net (7 ) — — — (7 ) — (7 ) Total nonoperating income (expense) (6 ) — (7 ) — (13 ) — (13 ) Income (loss) before income tax $ 334 $ 12 $ 10 $ 6 $ 362 $ (11 ) $ 351 Three Months Ended June 30, 2018 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger revenues $ 1,711 $ 286 $ — $ — $ 1,997 $ — $ 1,997 CPA revenues — — 137 (137 ) — — — Mileage Plan other revenue 99 9 — — 108 — 108 Cargo and other 49 1 1 — 51 — 51 Total operating revenues 1,859 296 138 (137 ) 2,156 — 2,156 Operating expenses Operating expenses, excluding fuel 1,135 249 123 (136 ) 1,371 39 1,410 Economic fuel 432 65 — — 497 (22 ) 475 Total operating expenses 1,567 314 123 (136 ) 1,868 17 1,885 Nonoperating income (expense) Interest income 13 — — (3 ) 10 — 10 Interest expense (22 ) — (5 ) 2 (25 ) — (25 ) Interest capitalized 4 — — — 4 — 4 Other - net 1 (2 ) — — (1 ) — (1 ) Total nonoperating income (expense) (4 ) (2 ) (5 ) (1 ) (12 ) — (12 ) Income (loss) before income tax $ 288 $ (20 ) $ 10 $ (2 ) $ 276 $ (17 ) $ 259 Six Months Ended June 30, 2019 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger revenues $ 3,189 $ 638 $ — $ — $ 3,827 $ — $ 3,827 CPA revenues — — 228 (228 ) — — — Mileage Plan other revenue 205 23 — — 228 — 228 Cargo and other 105 1 1 2 109 — 109 Total operating revenues 3,499 662 229 (226 ) 4,164 — 4,164 Operating expenses Operating expenses, excluding fuel 2,319 542 192 (234 ) 2,819 34 2,853 Economic fuel 780 143 — — 923 (1 ) 922 Total operating expenses 3,099 685 192 (234 ) 3,742 33 3,775 Nonoperating income (expense) Interest income 33 — — (13 ) 20 — 20 Interest expense (40 ) — (15 ) 13 (42 ) — (42 ) Interest capitalized 7 — — — 7 — 7 Other - net (17 ) — — — (17 ) — (17 ) Total nonoperating income (expense) (17 ) — (15 ) — (32 ) — (32 ) Income (loss) before income tax $ 383 $ (23 ) $ 22 $ 8 $ 390 $ (33 ) $ 357 Six Months Ended June 30, 2018 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating revenues Passenger revenues $ 3,152 $ 529 $ — $ — $ 3,681 $ — $ 3,681 CPA revenues — — 247 (247 ) — — — Mileage Plan other revenue 197 18 — — 215 — 215 Cargo and other 89 1 2 — 92 — 92 Total operating revenues 3,438 548 249 (247 ) 3,988 — 3,988 Operating expenses Operating expenses, excluding fuel 2,266 488 227 (247 ) 2,734 70 2,804 Economic fuel 799 120 — — 919 (35 ) 884 Total operating expenses 3,065 608 227 (247 ) 3,653 35 3,688 Nonoperating income (expense) Interest income 24 — — (6 ) 18 — 18 Interest expense (44 ) — (10 ) 5 (49 ) — (49 ) Interest capitalized 8 — 1 — 9 — 9 Other - net (4 ) (9 ) — — (13 ) — (13 ) Total nonoperating income (expense) (16 ) (9 ) (9 ) (1 ) (35 ) — (35 ) Income (loss) before income tax $ 357 $ (69 ) $ 13 $ (1 ) $ 300 $ (35 ) $ 265 (a) Includes consolidating entries, Air Group 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 excludes certain income and charges. (c) Includes merger-related costs, mark-to-market fuel-hedge accounting adjustments, and other special items. Total assets were as follows (in millions): June 30, 2019 December 31, 2018 Mainline $ 19,050 $ 16,853 Horizon 1,222 1,229 Consolidating & Other (7,321 ) (7,170 ) Consolidated $ 12,951 $ 10,912 |
GENERAL AND SUMMARY OF SIGNIF_3
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NARRATIVE (Details) $ in Millions | Mar. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 3 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Passenger Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,111 | $ 1,997 | $ 3,827 | $ 3,681 |
Passenger Revenue [Member] | Passenger ticket revenue, including ticket breakage and net of taxes and fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,792 | 1,693 | 3,231 | 3,121 |
Passenger Revenue [Member] | Passenger ancillary revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 147 | 137 | 271 | 254 |
Passenger Revenue [Member] | Mileage Plan passenger revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 172 | 167 | 325 | 306 |
Passenger Revenue [Member] | Passenger [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,111 | 1,997 | 3,827 | 3,681 |
Mileage Plan Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 290 | 275 | 553 | 521 |
Mileage Plan Revenue [Member] | Passenger [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 172 | 167 | 325 | 306 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 118 | 108 | 228 | 215 |
Cargo and Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 59 | 51 | 109 | 92 |
Cargo and Other Revenue [Member] | Cargo revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 38 | 34 | 68 | 60 |
Cargo and Other Revenue [Member] | Other revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 21 | $ 17 | $ 41 | $ 32 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Deferred Revenue Arrangement [Line Items] | |||||
Air traffic liability | $ 1,173 | $ 1,173 | $ 788 | ||
Receivable | 389 | 389 | 366 | ||
Mileage Plan Revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Receivable | 122 | 122 | $ 119 | ||
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Contract liability revenue recognized | (51) | $ (44) | |||
Passenger Revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Contract liability revenue recognized | $ 89 | $ 79 | $ 563 | $ 513 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Liabilities Activity (Details) - Mileage Plan Revenue [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Total Deferred Revenue balance at January 1 | $ 1,874 | $ 1,725 |
Increase in liability for mileage credits issued | 451 | 402 |
Total Deferred Revenue balance at June 30 | 1,949 | 1,777 |
Passenger revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | (325) | (306) |
Mileage plan other revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | $ (51) | $ (44) |
FAIR VALUE MEASUREMENTS - FAIR
FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (Details) - Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 1,383 | $ 1,131 |
Assets, Fair Value Disclosure | 1,394 | 1,145 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (10) | (7) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 409 | 293 |
Assets, Fair Value Disclosure | 409 | 293 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 974 | 838 |
Assets, Fair Value Disclosure | 985 | 852 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (10) | (7) |
Fuel hedge contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 7 | 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 | 7 | 4 |
Interest rate swaps agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 4 | 10 |
Derivative instruments, liabilities | 10 | 7 |
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 | 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 | 4 | 10 |
Derivative instruments, liabilities | 10 | 7 |
U.S. government and agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 409 | 293 |
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 | 409 | 293 |
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 | 25 | 26 |
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 | 25 | 26 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 189 | 190 |
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 | 189 | 190 |
Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 120 | 92 |
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 | 120 | 92 |
Corporate notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 623 | 520 |
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 | 623 | 520 |
Municipal securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 17 | 10 |
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 | $ 10 |
FAIR VALUE MEASUREMENTS - MATU
FAIR VALUE MEASUREMENTS - MATURITIES FOR MARKETABLE SECURITIES (Details) $ in Millions | Jun. 30, 2019USD ($) |
Cost Basis | |
Due in one year or less | $ 298 |
Due after one year through five years | 1,065 |
Due after five years through 10 years | 4 |
Total | 1,367 |
Fair Value | |
Due in one year or less | 299 |
Due after one year through five years | 1,080 |
Due after five years through 10 years | 4 |
Total | $ 1,383 |
FAIR VALUE MEASUREMENTS - LONG-
FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recurring purchase price accounting fair value adjustment | $ 2 | $ 3 |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate debt at cost | 580 | 639 |
Long-term debt | 582 | 642 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 595 | $ 641 |
LONG-TERM DEBT - SCHEDULE OF LO
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ (11) | $ (12) | |
Total | 1,826 | 2,103 | |
Less current portion | 288 | 486 | |
Long-term debt, less current portion | $ 1,538 | $ 1,617 | |
Weighted-average fixed-interest rate | 3.60% | 4.10% | |
Weighted-average variable-interest rate | 3.60% | 3.90% | |
Long-term debt payments | $ 532 | $ 258 | |
Repayments of Debt | 392 | ||
Fixed rate notes payable due through 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Total | 582 | $ 642 | |
Variable rate notes payable due through 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Total | $ 1,255 | $ 1,473 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - FUTURE PAYMENTS (Details) $ in Millions | Jun. 30, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2019 | $ 146 |
2020 | 287 |
2021 | 314 |
2022 | 275 |
2023 | 235 |
Thereafter | 578 |
Total | $ 1,835 |
LONG-TERM DEBT - LINE OF CREDIT
LONG-TERM DEBT - LINE OF CREDIT (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)credit_facility | Jun. 30, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Proceeds from Issuance of Secured Debt | $ 254,000,000 | $ 0 |
Line of Credit Facility, Number of Credit Facilities | credit_facility | 3 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 516,000,000 | |
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 | |
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 | $ 116,000,000 | |
Line of Credit Facility, Expiration Date | Jul. 31, 2019 | |
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 | |
Line of Credit Facility, Expiration Date | Mar. 31, 2022 |
LEASES LEASES - OPERATING LEASE
LEASES LEASES - OPERATING LEASE ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 1,696 | $ 0 |
Aircraft [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 1,012 | |
CPA Aircraft [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 622 | |
Airport Facilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 19 | |
Corporate real estate [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 43 |
LEASES LEASES - NARRATIVE (Deta
LEASES LEASES - NARRATIVE (Details) $ in Millions | Jan. 01, 2019USD ($) | Jun. 30, 2019USD ($)aircraft | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)aircraft | Jun. 30, 2018USD ($) | Mar. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | ||||||
Operating Leases, Rent Expense | $ 137 | $ 290 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 3 | |||||
Lessee Operating Lease Lease Not Yet Commenced Amount | $ 52 | $ 52 | ||||
Sublease Income | $ 3 | $ 6 | ||||
Property Subject to Operating Lease [Member] | B-737 [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 10 | 10 | ||||
Property Subject to Operating Lease [Member] | Airbus [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 62 | 62 | ||||
Property Subject to Operating Lease [Member] | Q400 [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 9 | 9 | ||||
Property Subject to Operating Lease [Member] | E175 [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 32 | 32 | ||||
Property Available for Operating Lease [Member] | Airbus [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Property Subject to or Available for Operating Lease, Number of Optional Additional Units | aircraft | 1 | 1 | ||||
Property Available for Operating Lease [Member] | E175 [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Property Subject to or Available for Operating Lease, Number of Optional Additional Units | aircraft | 3 | 3 | ||||
Aircraft [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Variable Lease, Cost | $ 1 | $ 2 | ||||
Airport Facilities [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Variable Lease, Cost | $ 61 | $ 145 | ||||
Retained Earnings [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 3 | |||||
Minimum [Member] | CPA Aircraft [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, Operating Lease, Term of Contract | 8 years | 8 years | ||||
Maximum [Member] | Aircraft [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, Operating Lease, Term of Contract | 12 years | 12 years | ||||
Maximum [Member] | CPA Aircraft [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, Operating Lease, Term of Contract | 11 years | 11 years | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 150 |
LEASES LEASES - LEASE COST (Det
LEASES LEASES - LEASE COST (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($)Rate | Jun. 30, 2019USD ($)Rate | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Expense | $ 148 | $ 318 |
Sublease Income | (3) | (6) |
Lease, Cost | $ 145 | $ 312 |
Aircraft [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 4.20% | 4.20% |
Operating Lease, Cost | $ 62 | $ 123 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 9 months 18 days | 6 years 9 months 18 days |
CPA Aircraft [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 4.30% | 4.30% |
Operating Lease, Cost | $ 20 | $ 40 |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 8 months 12 days | 9 years 8 months 12 days |
Airport Facilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 4.10% | 4.10% |
Operating Lease, Cost | $ 62 | $ 146 |
Operating Lease, Weighted Average Remaining Lease Term | 10 years 4 months 24 days | 10 years 4 months 24 days |
Corporate real estate [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 4.40% | 4.40% |
Operating Lease, Cost | $ 4 | $ 9 |
Operating Lease, Weighted Average Remaining Lease Term | 37 years 8 months 12 days | 37 years 8 months 12 days |
LEASES MATURITIES OF LEASE LIAB
LEASES MATURITIES OF LEASE LIABILITIES (Details) $ in Millions | Jun. 30, 2019USD ($) |
Aircraft [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 128 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 233 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 194 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 169 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 115 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 324 |
Lessee, Operating Lease, Liability, Payments, Due | 1,163 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (151) |
Operating Lease, Liability | 1,012 |
CPA Aircraft [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 40 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 79 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 79 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 79 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 79 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 408 |
Lessee, Operating Lease, Liability, Payments, Due | 764 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (142) |
Operating Lease, Liability | 622 |
Airport Facilities [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 1 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 3 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 3 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 2 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 2 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 12 |
Lessee, Operating Lease, Liability, Payments, Due | 23 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (4) |
Operating Lease, Liability | 19 |
Corporate real estate [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 5 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 8 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 6 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 3 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 2 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 74 |
Lessee, Operating Lease, Liability, Payments, Due | 98 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (54) |
Operating Lease, Liability | $ 44 |
LEASES SUPPLEMENTAL CASH FLOWS
LEASES SUPPLEMENTAL CASH FLOWS (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Payments | $ 177 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 47 |
EMPLOYEE BENEFIT PLANS - NET PE
EMPLOYEE BENEFIT PLANS - NET PENSION EXPENSE (Details) - Qualified Defined Benefit [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 10 | $ 12 | $ 21 | $ 24 |
Interest cost | 22 | 19 | 44 | 39 |
Expected return on assets | (23) | (26) | (47) | (53) |
Recognized actuarial loss (gain) | 9 | 8 | 18 | 16 |
Wages and Benefits [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net pension expense | 10 | 12 | 21 | 24 |
Nonoperating Income (Expense) [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net pension expense | $ 8 | $ 1 | $ 15 | $ 2 |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)aircraft | |
B-737 [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Committed to Purchase (in Aircraft) | aircraft | 32 |
Options to Purchase Additional (in Aircraft) | aircraft | 37 |
A320neo [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Unrecorded Unconditional Purchase Obligation, Option to Cancel | aircraft | 30 |
E175 [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Committed to Purchase (in Aircraft) | aircraft | 5 |
Options to Purchase Additional (in Aircraft) | aircraft | 30 |
Property Subject to Operating Lease [Member] | B-737 [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 10 |
Property Subject to Operating Lease [Member] | Airbus [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 62 |
Property Subject to Operating Lease [Member] | Q400 [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 9 |
Property Subject to Operating Lease [Member] | E175 [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 32 |
Property Available for Operating Lease [Member] | Airbus [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Property Subject to or Available for Operating Lease, Number of Optional Additional Units | aircraft | 1 |
Property Available for Operating Lease [Member] | E175 [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Property Subject to or Available for Operating Lease, Number of Optional Additional Units | aircraft | 3 |
Capacity Purchase Agreement with SkyWest [Member] | E175 [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Property Subject to or Available for Operating Lease, Number of Optional Additional Units | aircraft | 8 |
Aircraft Maintenance Deposits [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remainder of 2018 | $ 33 |
2019 | 73 |
2020 | 62 |
2021 | 51 |
2022 | 27 |
Thereafter | 9 |
Total | 255 |
Aircraft Commitments [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remainder of 2018 | 255 |
2019 | 542 |
2020 | 553 |
2021 | 303 |
2022 | 103 |
Thereafter | 32 |
Total | 1,788 |
Capacity Purchase Agreements [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remainder of 2018 | 69 |
2019 | 145 |
2020 | 166 |
2021 | 174 |
2022 | 179 |
Thereafter | 1,065 |
Total | 1,798 |
Virgin America Flight Attendants [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Loss Contingency, Damages Sought, Value | $ 78 |
SHAREHOLDERS' EQUITY, CASH DIVI
SHAREHOLDERS' EQUITY, CASH DIVIDEND (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Cash dividend declared per share (usd per share) | $ 0.35 | $ 0.32 | ||
Payments of Dividends | $ 86 | $ 79 |
SHAREHOLDERS' EQUITY, COMMON ST
SHAREHOLDERS' EQUITY, COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions | 3 Months Ended | 46 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Aug. 31, 2015 | |
Class of Stock [Line Items] | ||||||
Stock Repurchased During Period, Value | $ 12 | $ 13 | $ 13 | $ 13 | ||
2015 1 Billion Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 1,000 | |||||
Stock repurchased during period (shares) | 6,300,000 | |||||
Stock Repurchased During Period, Value | $ 463 |
SHAREHOLDERS' EQUITY, ACCUMULAT
SHAREHOLDERS' EQUITY, ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Related to marketable securities | $ 11 | $ (11) |
Related to employee benefit plans | (428) | (440) |
Related to interest rate derivatives | (5) | 3 |
Total | $ (422) | $ (448) |
OPERATING SEGMENT INFORMATION_2
OPERATING SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | segment | 3 | |||
Operating Revenues | ||||
Total Operating Revenues | $ 2,288 | $ 2,156 | $ 4,164 | $ 3,988 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 1,422 | 1,410 | 2,853 | 2,804 |
Economic fuel | 502 | 475 | 922 | 884 |
Total Operating Expenses | 1,924 | 1,885 | 3,775 | 3,688 |
Nonoperating Income (Expense) | ||||
Interest income | 11 | 10 | 20 | 18 |
Interest expense | (20) | (25) | (42) | (49) |
Interest Costs Capitalized | 3 | 4 | 7 | 9 |
Other | (7) | (1) | (17) | (13) |
Nonoperating Income (Expense) Total | (13) | (12) | (32) | (35) |
Income (loss) before income tax | 351 | 259 | 357 | 265 |
Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | 2,288 | 2,156 | 4,164 | 3,988 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 1,414 | 1,371 | 2,819 | 2,734 |
Economic fuel | 499 | 497 | 923 | 919 |
Total Operating Expenses | 1,913 | 1,868 | 3,742 | 3,653 |
Nonoperating Income (Expense) | ||||
Interest income | 11 | 10 | 20 | 18 |
Interest expense | (20) | (25) | (42) | (49) |
Interest Costs Capitalized | 3 | 4 | 7 | 9 |
Other | (7) | (1) | (17) | (13) |
Nonoperating Income (Expense) Total | (13) | (12) | (32) | (35) |
Income (loss) before income tax | 362 | 276 | 390 | 300 |
Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | 1,929 | 1,859 | 3,499 | 3,438 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 1,167 | 1,135 | 2,319 | 2,266 |
Economic fuel | 422 | 432 | 780 | 799 |
Total Operating Expenses | 1,589 | 1,567 | 3,099 | 3,065 |
Nonoperating Income (Expense) | ||||
Interest income | 17 | 13 | 33 | 24 |
Interest expense | (19) | (22) | (40) | (44) |
Interest Costs Capitalized | 3 | 4 | 7 | 8 |
Other | (7) | 1 | (17) | (4) |
Nonoperating Income (Expense) Total | (6) | (4) | (17) | (16) |
Income (loss) before income tax | 334 | 288 | 383 | 357 |
Alaska Regional [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | 357 | 296 | 662 | 548 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 268 | 249 | 542 | 488 |
Economic fuel | 77 | 65 | 143 | 120 |
Total Operating Expenses | 345 | 314 | 685 | 608 |
Nonoperating Income (Expense) | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Interest Costs Capitalized | 0 | 0 | 0 | 0 |
Other | 0 | (2) | 0 | (9) |
Nonoperating Income (Expense) Total | 0 | (2) | 0 | (9) |
Income (loss) before income tax | 12 | (20) | (23) | (69) |
Horizon [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | 112 | 138 | 229 | 249 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 95 | 123 | 192 | 227 |
Economic fuel | 0 | 0 | 0 | 0 |
Total Operating Expenses | 95 | 123 | 192 | 227 |
Nonoperating Income (Expense) | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | (7) | (5) | (15) | (10) |
Interest Costs Capitalized | 0 | 0 | 0 | 1 |
Other | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) Total | (7) | (5) | (15) | (9) |
Income (loss) before income tax | 10 | 10 | 22 | 13 |
Intersegment Elimination [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | (110) | (137) | (226) | (247) |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | (116) | (136) | (234) | (247) |
Economic fuel | 0 | 0 | 0 | 0 |
Total Operating Expenses | (116) | (136) | (234) | (247) |
Nonoperating Income (Expense) | ||||
Interest income | (6) | (3) | (13) | (6) |
Interest expense | 6 | 2 | 13 | 5 |
Interest Costs Capitalized | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) Total | 0 | (1) | 0 | (1) |
Income (loss) before income tax | 6 | (2) | 8 | (1) |
Special Revenue and Charges [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 8 | 39 | 34 | 70 |
Economic fuel | 3 | (22) | (1) | (35) |
Total Operating Expenses | 11 | 17 | 33 | 35 |
Nonoperating Income (Expense) | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Interest Costs Capitalized | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) Total | 0 | 0 | 0 | 0 |
Income (loss) before income tax | (11) | (17) | (33) | (35) |
Passenger [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 2,111 | 1,997 | 3,827 | 3,681 |
Passenger [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 2,111 | 1,997 | 3,827 | 3,681 |
Passenger [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 1,767 | 1,711 | 3,189 | 3,152 |
Passenger [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 344 | 286 | 638 | 529 |
Passenger [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Passenger [Member] | Intersegment Elimination [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Passenger [Member] | Special Revenue and Charges [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 112 | 137 | 228 | 247 |
Capacity Purchase Agreements [Member] | Intersegment Elimination [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | (112) | (137) | (228) | (247) |
Capacity Purchase Agreements [Member] | Special Revenue and Charges [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Mileage plan other revenue [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 118 | 108 | 228 | 215 |
Mileage plan other revenue [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 118 | 108 | 228 | 215 |
Mileage plan other revenue [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 105 | 99 | 205 | 197 |
Mileage plan other revenue [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 13 | 9 | 23 | 18 |
Mileage plan other revenue [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Mileage plan other revenue [Member] | Intersegment Elimination [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Mileage plan other revenue [Member] | Special Revenue and Charges [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Cargo and Freight [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 59 | 51 | 109 | 92 |
Cargo and Freight [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 59 | 51 | 109 | 92 |
Cargo and Freight [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 57 | 49 | 105 | 89 |
Cargo and Freight [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 1 | 1 | 1 |
Cargo and Freight [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 1 | 1 | 2 |
Cargo and Freight [Member] | Intersegment Elimination [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 2 | 0 | 2 | 0 |
Cargo and Freight [Member] | Special Revenue and Charges [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | $ 0 | $ 0 | $ 0 | $ 0 |
OPERATING SEGMENT INFORMATION,
OPERATING SEGMENT INFORMATION, ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Total assets | $ 12,951 | $ 10,912 |
Alaska Airlines [Member] | ||
Total assets | 19,050 | 16,853 |
Horizon [Member] | ||
Total assets | 1,222 | 1,229 |
Parent [Member] | ||
Total assets | $ (7,321) | $ (7,170) |
Uncategorized Items - alk10-q22
Label | Element | Value |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | alk_TaxCutsandJobsActReclassificationfromAOCItoRetainedEarningsTaxEffect | $ 0 |
AOCI Attributable to Parent [Member] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | alk_TaxCutsandJobsActReclassificationfromAOCItoRetainedEarningsTaxEffect | (62,000,000) |
Retained Earnings [Member] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | alk_TaxCutsandJobsActReclassificationfromAOCItoRetainedEarningsTaxEffect | $ 62,000,000 |