Alaska Air (ALK) 10-Q 6 May 21 2021 Q1 Quarterly report Financial data

COVER

COVER - shares	3 Months Ended
	Mar. 31, 2021	Apr. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Transition Report	false
Document Period End Date	Mar. 31, 2021
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		124,481,793
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000766421
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 1,076	$ 1,370
Marketable securities	2,473	1,976
Total cash and marketable securities	3,549	3,346
Receivables - net	517	480
Inventories and supplies - net	57	57
Prepaid expenses, assets held-for-sale, and other current assets	161	123
Total Current Assets	4,284	4,006
Property and Equipment
Aircraft and other flight equipment	7,933	7,761
Other property and equipment	1,407	1,398
Deposits for future flight equipment	420	583
Property and Equipment Total	9,760	9,742
Less accumulated depreciation and amortization	3,616	3,531
Total Property and Equipment - Net	6,144	6,211
Operating Lease, Right-of-Use Asset	1,423	1,400
Goodwill	1,943	1,943
Intangible assets - net	105	107
Other noncurrent assets	363	379
Other Assets	3,834	3,829
Total Assets	14,262	14,046
Current Liabilities
Accounts payable	133	108
Accrued wages, vacation and payroll taxes	456	527
Other accrued liabilities	541	424
Operating Lease, Liability, Current	271	290
Current portion of long-term debt	1,246	1,138
Total Current Liabilities	4,762	4,293
Long-Term Debt, Net of Current Portion	2,325	2,357
Noncurrent Liabilities
Operating Lease, Liability, Noncurrent	1,283	1,268
Deferred Income Tax Liabilities, Net	365	407
Deferred revenue, noncurrent	1,507	1,544
Obligation for pension and postretirement medical benefits	663	665
Other liabilities	482	524
Other Liabilities and Credits Totals	4,300	4,408
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: 2021 - 133,792,045 shares; 2020 - 133,567,534 shares, Outstanding: 2021 - 124,442,101 shares; 2020 - 124,217,590 shares	1	1
Capital in excess of par value	409	391
Treasury stock (common), at cost: 2020 - 9,349,944 shares; 2020 - 9,349,944 shares	(674)	(674)
Accumulated other comprehensive loss	(494)	(494)
Retained earnings	3,633	3,764
Total Shareholders' Equity	$ 2,875	2,988
Preferred Stock, par value (usd per share)	$ 0.01
Total Liabilities and Shareholders' Equity	$ 14,262	14,046
Mileage Plan Revenue [Member]
Current Liabilities
Contract with Customer, Liability, Current	818	733
Contract with Customer, Liability, Current	818	733
Passenger Revenue [Member]
Current Liabilities
Contract with Customer, Liability, Current	1,297	1,073
Contract with Customer, Liability, Current	$ 1,297	$ 1,073

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Stockholders' Equity:
Preferred Stock, par value (usd per share)	$ 0.01
Preferred stock, shares authorized (shares)	5,000,000
Preferred stock, shares issued (shares)	0
Common stock, par value (usd per share)	$ 0.01
Common stock, shares authorized (shares)	400,000,000
Common stock, shares issued (shares)	133,792,045	133,567,534
Common stock, shares outstanding (shares)	124,442,101	124,217,590
Treasury Stock, Shares (shares)	9,349,944	9,349,944

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Revenues
Total Operating Revenues	$ 797	$ 1,636
Operating Expenses
Wages and benefits	493	612
Variable incentive pay	33	7
PSPGrantRecognized	(411)	0
Aircraft fuel, including hedging gains and losses	203	384
Aircraft maintenance	81	115
Aircraft rent	62	81
Landing fees and other rentals	129	131
Contracted services	51	72
Selling expenses	33	55
Depreciation and amortization	97	108
Food and beverage service	23	49
Third-party regional carrier expense	30	37
Other	105	143
Special items - Impairment charges and other	18	160
Restructuring Charges	11	0
Special items - merger-related costs	0	3
Costs and Expenses, Total	958	1,957
Operating Income (Loss)	(161)	(321)
Nonoperating Income (Expense)
Interest income	7	9
Interest Costs Incurred	(32)	(13)
Interest capitalized	3	3
Other—net	10	5
Nonoperating Income (Expense) Total	(12)	4
Income (Loss) Before Income Tax	(173)	(317)
Income tax (benefit) expense	(42)	(85)
Net Income (Loss)	$ (131)	$ (232)
Basic Earnings Per Share (usd per share)	$ (1.05)	$ (1.89)
Diluted Earnings Per Share (usd per share)	$ (1.05)	$ (1.89)
Shares used for computation:
Basic shares (shares)	124,299,000	122,818,000
Diluted shares (shares)	124,299,000	122,818,000
Passenger Revenue [Member]
Operating Revenues
Revenue from Contract with Customer, Excluding Assessed Tax	$ 659	$ 1,481
Passenger Revenue [Member] | Passenger [Member]
Operating Revenues
Revenue from Contract with Customer, Excluding Assessed Tax	659	1,481
Mileage Plan Revenue [Member]
Operating Revenues
Revenue from Contract with Customer, Excluding Assessed Tax	178	261
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member]
Operating Revenues
Revenue from Contract with Customer, Excluding Assessed Tax	94	109
Cargo and Other Revenue [Member]
Operating Revenues
Revenue from Contract with Customer, Excluding Assessed Tax	44	46
Cargo and Other Revenue [Member] | Cargo and Freight [Member]
Operating Revenues
Revenue from Contract with Customer, Excluding Assessed Tax	$ 44	$ 46

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ (131)	$ (232)
Related to marketable securities:
Unrealized holding gain (loss) arising during the period	(11)	(1)
Reclassification of (gain) loss into Other - net nonoperating income (expense)	(4)	(3)
Income tax effect	3	1
Total	(12)	(3)
Related to employee benefit plans:
Reclassification of net pension expense into Wages and benefits and Other - net nonoperating income (expense)	(8)	(7)
Income tax effect	(2)	(2)
Total	6	5
Related to interest rate derivative instruments:
Unrealized holding gain (loss) arising during the period	(8)	(25)
Reclassification of loss into Aircraft rent	0	(1)
Income tax effect	(2)	(5)
Total	6	(19)
Other Comprehensive Income (Loss)	0	(17)
Comprehensive Income (Loss)	$ (131)	$ (249)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY Statement - USD ($) $ in Millions	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
Stockholders' Equity Attributable to Parent at Dec. 31, 2019	$ 4,331	$ 1	$ 305	$ (643)	$ (465)	$ 5,133
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(232)					(232)
Other Comprehensive Income (Loss), Net of Tax	(17)				(17)
Stock repurchased during period (shares)		(0.538)
Stock Repurchased During Period, Value	(31)			(31)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	9		9
Dividends, Cash	$ (45)					(45)
Cash dividend declared per share (usd per share)	$ 0.375
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	$ 0
Stockholders' Equity Attributable to Parent at Mar. 31, 2020	$ 4,015	$ 1	314	(674)	(482)	4,856
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		0.123
Common stock, shares outstanding (shares)		122.585
Common stock, shares outstanding (shares)	124,217,590	124.217
Stockholders' Equity Attributable to Parent at Dec. 31, 2020	$ 2,988	$ 1	391	(674)	(494)	3,764
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(131)					(131)
Other Comprehensive Income (Loss), Net of Tax	0				0
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	12		12
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	(2)		(2)
Stockholders' Equity Attributable to Parent at Mar. 31, 2021	2,875	$ 1	409	$ (674)	$ (494)	$ 3,633
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustments to Additional Paid in Capital, Warrant Issued	$ 8		$ 8
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		0.225
Common stock, shares outstanding (shares)	124,442,101	124.442

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net Income	$ (131)	$ (232)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	97	108
Stock-based compensation and other	12	9
Special items - Impairment charges and other	18	160
Restructuring Charges	11	0
Changes in certain assets and liabilities:
Changes in deferred tax provision	(39)	(44)
Increase (Decrease) in Contract with Customer, Liability	224	210
Increase in deferred revenue	48	33
Other - net	(73)	(211)
Net cash provided by operating activities	167	33
Property and equipment additions:
Aircraft and aircraft purchase deposits	(3)	(57)
Other flight equipment	(11)	(35)
Other property and equipment	(13)	(27)
Total property and equipment additions, including capitalized interest	(27)	(119)
Purchases of marketable securities	(1,243)	(527)
Sales and maturities of marketable securities	732	511
Other investing activities	(5)	(8)
Net cash used in investing activities	(543)	(127)
Cash flows from financing activities:
Proceeds from issuance of debt	189	825
Long-term debt payments	(115)	(60)
Common stock repurchases	0	(31)
Dividends paid	0	(45)
Other financing activities	8	(5)
Net cash provided by (used in) financing activities	82	684
Net increase in cash, cash equivalents, and restricted cash	(294)	590
Cash, cash equivalents, and restricted cash at beginning of year	1,386	232
Cash, cash equivalents, and restricted cash at end of the period	1,092	822
Cash paid during the period for:
Interest (net of amount capitalized)	50	9
Income taxes	0	0
Cash and cash equivalents	1,076	811
Restricted cash included in Prepaid expenses, assets held-for-sale and other current assets	$ 16	$ 11

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 1,076	$ 1,370	$ 811
Restricted cash included in Prepaid expenses, assets held-for-sale and other current assets	16		11
Total cash, cash equivalents, and restricted cash at end of the period	$ 1,092	$ 1,386	$ 822	$ 232

GENERAL AND SUMMARY OF SIGNIFIC

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2021
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 and Horizon. The condensed consolidated financial statements also include McGee Air Services (McGee), 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, 2020. In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of March 31, 2021 and the results of operations for the three months ended March 31, 2021 and 2020. Such adjustments were of a normal recurring nature. In preparing these statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, as well as the reported amounts of revenues and expenses, including impairment charges. Due to the impacts of the coronavirus (COVID-19) pandemic on the Company's business, these estimates and assumptions require more judgment than they would otherwise given the uncertainty of the future demand for air travel, among other considerations. Further, due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, changes in global economic conditions, changes in the competitive environment and other factors, operating results for the three months ended March 31, 2021 are not necessarily indicative of operating results for the entire year.

COVID-19 Pandemic

COVID-19 Pandemic	3 Months Ended
	Mar. 31, 2021
Risks and Uncertainties [Abstract]
Impacts of COVID-19	COVID-19 PANDEMIC The public health and economic crisis resulting from the outbreak of COVID-19 in the first quarter of 2020 continues to have a significant impact on the Company. Although the relaxation of restrictions by state and local governments and the rollout of vaccination programs have allowed for the return of some demand, passenger enplanements remain significantly below pre-pandemic levels. As a result, we continue to fly far less capacity than normal. Beginning in 2020, the Company implemented various cost-saving initiatives, including permanently parking aircraft, restructuring the workforce through early-out and incentive leave programs, and obtaining funding available under programs offered by the U.S. Treasury. The impacts of these programs for the three months ended March 31, 2021 are described below. Lease Return Costs When 40 leased Aircraft were removed from operating service in 2020, we recorded an estimate of the expected future lease return costs for the aircraft. Lease return costs include the write off of associated maintenance deposits, as the Company no longer expects to perform maintenance events covered by those deposits. The total net charge recorded in 2020 for aircraft that were permanently parked amounted to $209 million. In the first quarter of 2021, the Company recorded an additional $18 million in incremental costs associated with leased aircraft that have been retired and removed from the operating fleet but not yet returned to the lessor, which is classified as Special items - impairment charges and other on the condensed consolidated statement of operations. The lease return cost estimates are based on the Company's best estimate of costs to return aircraft as of the date of this filing. Workforce restructuring The Company continues to expect that demand will remain below pre-pandemic levels in 2021, but will continue rebuilding toward 2019 capacity levels. In response, the Company reduced its workforce in 2020 to better align with the expected size of the business. To mitigate the need for involuntary furloughs, various early-out and voluntary leave programs were made available to all frontline work groups, in addition to incentive leave programs made available to Alaska pilots and mechanics. Through these programs over 600 employees took permanent early-outs, and over 3,300 employees took voluntary or incentive leaves. As of March 31, 2021, approximately 2,800 employees remain on a voluntary leave program. In 2020, as a result of these programs, the Company recorded $220 million in wage expense for those pilots and mechanics on incentive leaves, ongoing medical benefit coverage and lump-sum termination payments. In the first quarter of 2021, the Company refined capacity expectations and training schedules, and delayed certain recalls to a future period beyond what was anticipated in the accrual at December 31, 2020. As a result, an additional expense of $11 million was recorded as Special items - restructuring charges in the condensed consolidated statement of operations during the three months ended March 31, 2021. The table below presents a roll forward of the outstanding voluntary leave liability (in millions): Three Months Ended Total voluntary leave liability balance at January 1 $ 127 Cash payments (47) Charges and adjustments 11 Total voluntary leave liability balance at March 31 $ 91 The outstanding accrual is based on the Company's best estimate of capacity expectations and training schedules for 2021 as of the date of this filing. The Company will make the majority of the remaining cash payments associated with this liability in 2021. The balance is reflected in accrued wages, benefits and payroll taxes on the condensed consolidated balance sheet. CARES Act Funding During the first quarter of 2021, Alaska, Horizon, and McGee finalized agreements with the U.S. Department of the Treasury (the Treasury) through an extension of the Payroll Support Program (PSP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act, made available under the Consolidated Appropriations Act, 2021 (PSP 2). Under PSP 2 and the supporting agreements, Alaska and Horizon received total funds of approximately $539 million in the first quarter of 2021. Subsequent to March 31, 2021, Alaska and Horizon received notification of an additional $80 million in funds made available under PSP 2. Those additional funds were received on April 29, 2021. On April 29, 2021, Alaska, Horizon and McGee finalized additional agreements with the Treasury under a third round of the PSP, made available under the American Rescue Plan Act of 2021 (PSP 3). Under PSP 3 and the supporting agreements, Alaska, Horizon, and McGee expect to receive total funds of approximately $584 million in the second quarter of 2021. Of the amounts received during the three months ended March 31, 2021, $136 million represented unsecured debt and was recorded at par, and $8 million represented warrants recorded at fair value using a Black-Scholes model. Both were recorded on the condensed consolidated balance sheet. The remaining $403 million was recorded as grant proceeds. These amounts are inclusive of additional funding of $8 million made available to McGee under the first installment of PSP program (PSP 1). The grant is recorded as an offset to wages, salaries and benefits as eligible expenses are incurred. During the three months ended March 31, 2021, the Company recognized $411 million of the PSP grant proceeds as a wage offset. Included within this $411 million is approximately $8 million for employee retention credits as in the CARES Act. The Company expects to record any remaining wage offsets in the second quarter of 2021. Total funds contracted from the Treasury under the three Payroll Support Programs are allocated as follows (in millions): Grants Loans Warrants Total Proceeds PSP 1 $ 757 $ 293 $ 9 $ 1,059 PSP 2 457 159 9 625 PSP 3 (a) 431 147 6 584 Total $ 1,645 $ 599 $ 24 $ 2,268 (a) - The Company has reached an agreement for total proceeds to be received under PSP 3, however, the allocation of those proceeds are subject to change based on the final Black-Scholes valuation at the funding date.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2021
Revenue Recognition [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	REVENUE 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. In 2020, the Company eliminated ticket change fees indefinitely from its main cabin and first class fares. 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 level of detail within the Company’s condensed consolidated 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 March 31, 2021 2020 Passenger ticket revenue, including ticket breakage and net of taxes and fees $ 525 $ 1,213 Passenger ancillary revenue 50 116 Mileage Plan passenger revenue 84 152 Total Passenger revenue $ 659 $ 1,481 Mileage Plan™ Loyalty Program Mileage Plan™ revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2021 2020 Passenger revenue $ 84 $ 152 Mileage Plan other revenue 94 109 Total Mileage Plan revenue $ 178 $ 261 Cargo and Other Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2021 2020 Cargo revenue $ 27 $ 24 Other revenue 17 22 Total Cargo and other revenue $ 44 $ 46 Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $136 million and $489 million from the prior year-end air traffic liability balance for the three months ended March 31, 2021 and 2020. Given the reduction in demand for air travel stemming from the COVID-19 pandemic, advance bookings and associated cash receipts have been significantly depressed. The Company also experienced elevated cancellations beginning in March 2020 which led to cash refunds or the issuance of credits for future travel. At March 31, 2021, such credits, which are included in the air traffic liability balance, totaled $484 million, net of breakage. In April 2021, the Company announced updated expiration terms for these credits, extending to December 31, 2021 for possible travel through November 30, 2022. Given the ongoing uncertainty in the return of demand for air travel, assumptions about breakage of these credits could change in future periods. Mileage Plan TM assets and 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 $52 million of such receivables as of March 31, 2021 and $48 million as of December 31, 2020. Given the ongoing uncertainty around the return in demand for air travel, the timing of recognition of mileage credits may differ from current assumptions. The table below presents a roll forward of the total frequent flyer liability (in millions): Three Months Ended March 31, 2021 2020 Total Deferred Revenue balance at January 1 $ 2,277 $ 1,990 Travel miles and companion certificate redemption - Passenger revenue (84) (152) Miles redeemed on partner airlines - Other revenue (4) (22) Increase in liability for mileage credits issued 136 207 Total Deferred Revenue balance at March 31 $ 2,325 $ 2,023

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021, total cost basis for all marketable securities was $2.5 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 condensed consolidated balance sheet (in millions): March 31, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 301 $ — $ 301 $ 407 $ — $ 407 Equity mutual funds 7 — 7 7 — 7 Foreign government bonds — 19 19 — 20 20 Asset-backed securities — 284 284 — 224 224 Mortgage-backed securities — 293 293 — 290 290 Corporate notes and bonds — 1,515 1,515 — 978 978 Municipal securities — 54 54 — 50 50 Total Marketable securities 308 2,165 2,473 414 1,562 1,976 Derivative instruments Fuel hedge - call options — 41 41 — 15 15 Total Assets $ 308 $ 2,206 $ 2,514 $ 414 $ 1,577 $ 1,991 Liabilities Derivative instruments Interest rate swap agreements — (18) (18) — (25) (25) Total Liabilities $ — $ (18) $ (18) $ — $ (25) $ (25) The Company uses both the market and income approach to determine the fair value of marketable securities. U.S. government securities and equity mutual funds 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 are 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 are the result of expected credit losses based on its evaluation of available information as of March 31, 2021. Maturities for marketable securities (in millions): March 31, 2021 Cost Basis Fair Value Due in one year or less $ 1,158 $ 1,159 Due after one year through five years 1,231 1,246 Due after five years through 10 years 62 61 Total $ 2,451 $ 2,466 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 : To estimate the fair value of all fixed-rate debt as of March 31, 2021, the Company uses the income approach by discounting cash flows or estimation using quoted market prices, utilizing borrowing rates for comparable debt over the remaining life of the outstanding debt. The estimated fair value of the fixed-rate Enhanced Equipment Trust Certificate debt is Level 2, as it is estimated using observable inputs, while the estimated fair value of $612 million of other fixed-rate debt, including PSP notes payable, is classified as Level 3, as it is not actively traded and is valued using discounted cash flows which is an unobservable input. Fixed-rate debt on the condensed consolidated balance sheet and the estimated fair value of long-term fixed-rate debt is as follows (in millions): March 31, 2021 December 31, 2020 Total fixed-rate debt $ 1,728 $ 1,662 Estimated fair value $ 1,839 $ 1,778 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheet (in millions): March 31, 2021 December 31, 2020 Fixed-rate notes payable due through 2029 $ 186 $ 198 Fixed-rate PSP notes payable due through 2031 426 290 Fixed-rate EETC payable due through 2025 & 2027 1,116 1,174 Variable-rate notes payable due through 2029 1,876 1,866 Less debt issuance costs and unamortized debt discount (33) (33) Total debt 3,571 3,495 Less current portion 1,246 1,138 Long-term debt, less current portion $ 2,325 $ 2,357 Weighted-average fixed-interest rate 4.0 % 4.3 % Weighted-average variable-interest rate 1.7 % 1.9 % Approximately $591 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at March 31, 2021, effective weighted-average interest rate for the full debt portfolio to 3.1%. During the three months ended March 31, 2021, the Company issued $189 million of debt, comprising of $136 million of unsecured loans from the PSP and a $54 million issuance of debt. Debt proceeds were offset by $115 million in scheduled debt payments. The $426 million PSP notes are unsecured senior term loans with a 10-year term, bearing an interest rate of 1% in years 1 through 5, and an interest rate equal to the Secured Overnight Financing Rate (SOFR) plus 2% in years 6 through 10. The PSP notes are prepayable at par without penalty. CARES Act In 2020, the Company finalized an agreement with the Treasury to obtain up to $1.9 billion via a secured term loan facility. Obligations under the loan agreement are secured by assets related to, and revenues generated by, Alaska's Mileage Plan TM frequent flyer program, as well as by 30 aircraft and 15 spare engines. As of March 31, 2021, the Company has drawn $135 million available under the agreement, and may, at its option, borrow additional amounts in up to two subsequent borrowings until May 28, 2021. All proceeds drawn must be used for certain general corporate purposes and operating expenses in accordance with the terms and conditions of the loan agreement and the applicable provisions of the CARES Act. In conjunction with the initial draw, the Company granted the Treasury 427,080 warrants to purchase ALK common stock at a strike price of $31.61. The value of the warrants was estimated using a Black-Scholes option pricing model, and the relative fair value of the warrants of $6 million was recorded in stockholders' equity, with an offsetting debt discount to the CARES Act Loan issuance. Debt Maturity At March 31, 2021 long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2021 $ 659 2022 796 2023 334 2024 240 2025 396 Thereafter 1,179 Total $ 3,604 Bank Lines of Credit The Company has three credit facilities with capacity totaling $461 million as of March 31, 2021. One of the credit facilities for $120 million expires in March 2022 and is secured by certain accounts receivable, spare engines, spare parts and ground service equipment. The second credit facility for $250 million expires in June 2021 and is secured by aircraft. These two facilities have variable interest rates based on LIBOR plus a specified margin. A third credit facility for $91 million expires in June 2021 and is secured by aircraft.. The Company has an outstanding balance of $363 million on the first and second facilities, which is classified as short-term on the condensed consolidated balance sheet. Subsequent to quarter-end, the Company issued notices to repay the entire outstanding balance. The Company also has secured letters of credit against the third facility. All 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 March 31, 2021.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 2020 Service cost $ 13 $ 13 Pension expense included in Wages and benefits 13 13 Interest cost 14 19 Expected return on assets (31) (28) Recognized actuarial loss 9 9 Pension expense included in Nonoperating Income (Expense) $ (8) $ —

COMMITMENTS

COMMITMENTS	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS AND CONTINGENCIES Future minimum payments for commitments as of March 31, 2021 (in millions): Aircraft Commitments (a) Capacity Purchase Agreements (b) Remainder of 2021 $ 111 $ 124 2022 1,325 173 2023 681 178 2024 183 183 2025 15 188 Thereafter 12 877 Total $ 2,327 $ 1,723 (a) Includes non-cancelable contractual commitments for aircraft and engines, 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 March 31, 2021, Alaska had commitments to purchase 51 B737-9 MAX aircraft, with contracted deliveries between 2021 and 2024. Future minimum contractual payments for these aircraft have been updated to reflect the expected delivery timing, but are also subject to change. Horizon also has commitments to purchase three E175 aircraft with deliveries in 2023. Alaska has cancelable purchase commitments for 30 Airbus A320neo aircraft with deliveries from 2024 through 2027. In addition, Alaska has options to purchase 52 B737-9 MAX aircraft, and Horizon has options to purchase 30 E175 aircraft. 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. In February 2021, an appellate court reversed portions of the lower court decision and significantly reduced the judgment. The determination of total judgment has not been completed as of the date of this filing. Based on the facts and circumstances available, the Company believes the range of potential loss to be between $0 and $22 million, and holds an accrual for $22 million in Other accrued liabilities on the condensed consolidated balance sheets. 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. In January 2019, a pilot filed a class action lawsuit seeking to represent all Alaska and Horizon pilots for damages based on alleged violations of the Uniformed Services Employment and Reemployment Rights Act (USERRA). Plaintiff received class certification in August 2020. The case is in discovery. The Company believes the claims in the case are without factual and legal merit and intends to defend the lawsuit.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021, the Company has repurchased 7.6 million shares for $544 million under this program. In March 2020, the Company suspended the share repurchase program indefinitely. CARES Act Warrant Issuance As additional taxpayer protection required under PSP 2, during the three months ended March 31, 2021 the Company granted the Treasury a total of 255,874 warrants to purchase Alaska Air Group (ALK) common stock at a strike price of $52.25, based on the closing price on December 24, 2020. The warrants are non-voting, freely transferable, may be settled as net shares or in cash at Alaska's option, and have a five-year term. Total warrants outstanding are as follows as of March 31, 2021: Number of shares of ALK common stock Strike Price PSP 1 928,127 $ 31.61 CARES Act loan warrants 427,080 31.61 PSP 2 255,874 52.25 Total 1,611,081 Subsequent to March 31, 2021, Alaska and Horizon received additional funding under PSP 2. As additional taxpayer protection, the Company granted 45,855 warrants to purchase ALK common stock at a strike price of $52.25, based on the closing price on December 24, 2020. Also subsequent to March 31, 2021, Alaska, Horizon, and McGee received a portion of total funding made available under PSP 3. The Company granted 88,395 warrants to purchase ALK common stock at a strike price of $66.39, based on the closing price on March 10, 2021. The warrants are non-voting, freely transferable, may be settled as net shares or in cash at Alaska's option, and have a five-year term. Accumulated other comprehensive loss Components of accumulated other comprehensive loss, net of tax (in millions): March 31, 2021 December 31, 2020 Related to marketable securities $ 11 $ 23 Related to employee benefit plans (492) (498) Related to interest rate derivatives (13) (19) Total $ (494) $ (494) Earnings Per Share (EPS)

OPERATING SEGMENT INFORMATION

OPERATING SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
OPERATING SEGMENT INFORMATION	OPERATING SEGMENT INFORMATIONAlaska Air Group has two operating airlines – Alaska 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 SkyWest, 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 a CPA. 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 March 31, 2021 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 506 $ 153 $ — $ — $ 659 $ — $ 659 CPA revenues — — 104 (104) — — — Mileage Plan other revenue 80 14 — — 94 — 94 Cargo and other 44 — — — 44 — 44 Total Operating Revenues 630 167 104 (104) 797 — 797 Operating Expenses Operating expenses, excluding fuel 893 265 88 (109) 1,137 (382) 755 Economic fuel 174 52 — (1) 225 (22) 203 Total Operating Expenses 1,067 317 88 (110) 1,362 (404) 958 Nonoperating Income (Expense) Interest income 7 — — — 7 — 7 Interest expense (27) — (5) — (32) — (32) Interest capitalized 3 — — — 3 — 3 Other - net 10 — — — 10 — 10 Total Nonoperating Income (Expense) (7) — (5) — (12) — (12) Income (Loss) Before Income Tax $ (444) $ (150) $ 11 $ 6 $ (577) $ 404 $ (173) Three Months Ended March 31, 2020 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,234 $ 247 $ — $ — $ 1,481 $ — $ 1,481 CPA revenues — — 105 (105) — — — Mileage Plan other revenue 98 11 — — 109 — 109 Cargo and other 44 — — 2 46 — 46 Total Operating Revenues 1,376 258 105 (103) 1,636 — 1,636 Operating Expenses Operating expenses, excluding fuel 1,159 269 92 (110) 1,410 163 1,573 Economic fuel 313 62 — — 375 9 384 Total Operating Expenses 1,472 331 92 (110) 1,785 172 1,957 Nonoperating Income (Expense) Interest income 14 — — (5) 9 — 9 Interest expense (12) — (5) 4 (13) — (13) Interest capitalized 3 — — — 3 — 3 Other - net 6 — — (1) 5 — 5 Total Nonoperating Income (Expense) 11 — (5) (2) 4 — 4 Income (Loss) Before Income Tax $ (85) $ (73) $ 8 $ 5 $ (145) $ (172) $ (317) (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 allocation and excludes certain charges. See Note A in the accompanying pages for further information. (c) Includes Payroll Support Program wage offsets, special items and mark-to-market fuel hedge accounting adjustments. Total assets were as follows (in millions): March 31, 2021 December 31, 2020 Mainline $ 19,951 $ 19,754 Horizon 1,200 1,170 Consolidating & Other (6,889) (6,878) Consolidated $ 14,262 $ 14,046

GENERAL AND SUMMARY OF SIGNIF_2

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2021
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 and Horizon. The condensed consolidated financial statements also include McGee Air Services (McGee), 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, 2020. In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of March 31, 2021 and the results of operations for the three months ended March 31, 2021 and 2020. Such adjustments were of a normal recurring nature. In preparing these statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, as well as the reported amounts of revenues and expenses, including impairment charges. Due to the impacts of the coronavirus (COVID-19) pandemic on the Company's business, these estimates and assumptions require more judgment than they would otherwise given the uncertainty of the future demand for air travel, among other considerations. Further, due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, changes in global economic conditions, changes in the competitive environment and other factors, operating results for the three months ended March 31, 2021 are not necessarily indicative of operating results for the entire year.

COVID-19 PANDEMIC (Tables)

COVID-19 PANDEMIC (Tables)	3 Months Ended
	Mar. 31, 2021
Risks and Uncertainties [Abstract]
Schedule of Funds Received Under CARES Payroll Support Programs	Total funds contracted from the Treasury under the three Payroll Support Programs are allocated as follows (in millions): Grants Loans Warrants Total Proceeds PSP 1 $ 757 $ 293 $ 9 $ 1,059 PSP 2 457 159 9 625 PSP 3 (a) 431 147 6 584 Total $ 1,645 $ 599 $ 24 $ 2,268
Restructuring and Related Costs	The table below presents a roll forward of the outstanding voluntary leave liability (in millions): Three Months Ended Total voluntary leave liability balance at January 1 $ 127 Cash payments (47) Charges and adjustments 11 Total voluntary leave liability balance at March 31 $ 91

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2021
Revenue Recognition [Abstract]
Disaggregation of Revenue	Passenger revenue recognized in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2021 2020 Passenger ticket revenue, including ticket breakage and net of taxes and fees $ 525 $ 1,213 Passenger ancillary revenue 50 116 Mileage Plan passenger revenue 84 152 Total Passenger revenue $ 659 $ 1,481 Mileage Plan™ revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2021 2020 Passenger revenue $ 84 $ 152 Mileage Plan other revenue 94 109 Total Mileage Plan revenue $ 178 $ 261 Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2021 2020 Cargo revenue $ 27 $ 24 Other revenue 17 22 Total Cargo and other revenue $ 44 $ 46
Contract with Customer Liabilities	The table below presents a roll forward of the total frequent flyer liability (in millions): Three Months Ended March 31, 2021 2020 Total Deferred Revenue balance at January 1 $ 2,277 $ 1,990 Travel miles and companion certificate redemption - Passenger revenue (84) (152) Miles redeemed on partner airlines - Other revenue (4) (22) Increase in liability for mileage credits issued 136 207 Total Deferred Revenue balance at March 31 $ 2,325 $ 2,023

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Investments Classified by Contractual Maturity Date	Maturities for marketable securities (in millions): March 31, 2021 Cost Basis Fair Value Due in one year or less $ 1,158 $ 1,159 Due after one year through five years 1,231 1,246 Due after five years through 10 years 62 61 Total $ 2,451 $ 2,466
Fair Value, by Balance Sheet Grouping	Fair values of financial instruments on the condensed consolidated balance sheet (in millions): March 31, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 301 $ — $ 301 $ 407 $ — $ 407 Equity mutual funds 7 — 7 7 — 7 Foreign government bonds — 19 19 — 20 20 Asset-backed securities — 284 284 — 224 224 Mortgage-backed securities — 293 293 — 290 290 Corporate notes and bonds — 1,515 1,515 — 978 978 Municipal securities — 54 54 — 50 50 Total Marketable securities 308 2,165 2,473 414 1,562 1,976 Derivative instruments Fuel hedge - call options — 41 41 — 15 15 Total Assets $ 308 $ 2,206 $ 2,514 $ 414 $ 1,577 $ 1,991 Liabilities Derivative instruments Interest rate swap agreements — (18) (18) — (25) (25) Total Liabilities $ — $ (18) $ (18) $ — $ (25) $ (25) Fixed-rate debt on the condensed consolidated balance sheet and the estimated fair value of long-term fixed-rate debt is as follows (in millions): March 31, 2021 December 31, 2020 Total fixed-rate debt $ 1,728 $ 1,662 Estimated fair value $ 1,839 $ 1,778

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt obligations on the condensed consolidated balance sheet (in millions): March 31, 2021 December 31, 2020 Fixed-rate notes payable due through 2029 $ 186 $ 198 Fixed-rate PSP notes payable due through 2031 426 290 Fixed-rate EETC payable due through 2025 & 2027 1,116 1,174 Variable-rate notes payable due through 2029 1,876 1,866 Less debt issuance costs and unamortized debt discount (33) (33) Total debt 3,571 3,495 Less current portion 1,246 1,138 Long-term debt, less current portion $ 2,325 $ 2,357 Weighted-average fixed-interest rate 4.0 % 4.3 % Weighted-average variable-interest rate 1.7 % 1.9 %
Schedule of Maturities of Long-term Debt	At March 31, 2021 long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2021 $ 659 2022 796 2023 334 2024 240 2025 396 Thereafter 1,179 Total $ 3,604

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 2020 Service cost $ 13 $ 13 Pension expense included in Wages and benefits 13 13 Interest cost 14 19 Expected return on assets (31) (28) Recognized actuarial loss 9 9 Pension expense included in Nonoperating Income (Expense) $ (8) $ —

COMMITMENTS (Tables)

COMMITMENTS (Tables)	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases and Unrecorded Unconditional Purchase Obligtaions	Future minimum payments for commitments as of March 31, 2021 (in millions): Aircraft Commitments (a) Capacity Purchase Agreements (b) Remainder of 2021 $ 111 $ 124 2022 1,325 173 2023 681 178 2024 183 183 2025 15 188 Thereafter 12 877 Total $ 2,327 $ 1,723 (a) Includes non-cancelable contractual commitments for aircraft and engines, aircraft maintenance and parts management.

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Components of accumulated other comprehensive loss, net of tax (in millions): March 31, 2021 December 31, 2020 Related to marketable securities $ 11 $ 23 Related to employee benefit plans (492) (498) Related to interest rate derivatives (13) (19) Total $ (494) $ (494)
Schedule of Stockholders' Equity Note, Warrants or Rights	Total warrants outstanding are as follows as of March 31, 2021: Number of shares of ALK common stock Strike Price PSP 1 928,127 $ 31.61 CARES Act loan warrants 427,080 31.61 PSP 2 255,874 52.25 Total 1,611,081

OPERATING SEGMENT INFORMATION (

OPERATING SEGMENT INFORMATION (Tables) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Operating segment information is as follows (in millions): Three Months Ended March 31, 2021 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 506 $ 153 $ — $ — $ 659 $ — $ 659 CPA revenues — — 104 (104) — — — Mileage Plan other revenue 80 14 — — 94 — 94 Cargo and other 44 — — — 44 — 44 Total Operating Revenues 630 167 104 (104) 797 — 797 Operating Expenses Operating expenses, excluding fuel 893 265 88 (109) 1,137 (382) 755 Economic fuel 174 52 — (1) 225 (22) 203 Total Operating Expenses 1,067 317 88 (110) 1,362 (404) 958 Nonoperating Income (Expense) Interest income 7 — — — 7 — 7 Interest expense (27) — (5) — (32) — (32) Interest capitalized 3 — — — 3 — 3 Other - net 10 — — — 10 — 10 Total Nonoperating Income (Expense) (7) — (5) — (12) — (12) Income (Loss) Before Income Tax $ (444) $ (150) $ 11 $ 6 $ (577) $ 404 $ (173) Three Months Ended March 31, 2020 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,234 $ 247 $ — $ — $ 1,481 $ — $ 1,481 CPA revenues — — 105 (105) — — — Mileage Plan other revenue 98 11 — — 109 — 109 Cargo and other 44 — — 2 46 — 46 Total Operating Revenues 1,376 258 105 (103) 1,636 — 1,636 Operating Expenses Operating expenses, excluding fuel 1,159 269 92 (110) 1,410 163 1,573 Economic fuel 313 62 — — 375 9 384 Total Operating Expenses 1,472 331 92 (110) 1,785 172 1,957 Nonoperating Income (Expense) Interest income 14 — — (5) 9 — 9 Interest expense (12) — (5) 4 (13) — (13) Interest capitalized 3 — — — 3 — 3 Other - net 6 — — (1) 5 — 5 Total Nonoperating Income (Expense) 11 — (5) (2) 4 — 4 Income (Loss) Before Income Tax $ (85) $ (73) $ 8 $ 5 $ (145) $ (172) $ (317) (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 allocation and excludes certain charges. See Note A in the accompanying pages for further information. (c) Includes Payroll Support Program wage offsets, special items and mark-to-market fuel hedge accounting adjustments. Total assets were as follows (in millions): March 31, 2021 December 31, 2020 Mainline $ 19,951 $ 19,754 Horizon 1,200 1,170 Consolidating & Other (6,889) (6,878) Consolidated $ 14,262 $ 14,046
Revenues	$ 797	$ 1,636
Income (Loss) Before Income Tax	(173)	(317)
Nonoperating Income (Expense)	(12)	4
Interest income	7	9
Interest expense	(32)	(13)
Interest Costs Capitalized	3	3
Other	10	5
Operating Expenses, Excluding Fuel	755	1,573
Economic fuel	203	384
Operating Expenses	$ 958	$ 1,957

COVID-19 Pandemic, CARES Fundin

COVID-19 Pandemic, CARES Funding (Details) - USD ($) $ in Millions	3 Months Ended		11 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Apr. 29, 2021
CARES Funds Received [Line Items]
Total Expected Relief From PSP of CARES Act			$ 2,268
Adjustments to Additional Paid in Capital, Warrant Issued			24
Total Unsecured Term Loan through PSP of CARES Act			599
CARES Act Payroll Tax Relief	$ 8
ProceedsFromPayrollSupportProgramGrant			1,645
PSPGrantRecognized	411	$ 0
CARES PSP 1 [Member]
CARES Funds Received [Line Items]
Total Expected Relief From PSP of CARES Act			1,059
Adjustments to Additional Paid in Capital, Warrant Issued			9
Total Unsecured Term Loan through PSP of CARES Act			293
ProceedsFromPayrollSupportProgramGrant			757
PSP Installments Received	8
CARES PSP 2 [Member]
CARES Funds Received [Line Items]
Total Expected Relief From PSP of CARES Act			625
Adjustments to Additional Paid in Capital, Warrant Issued	8		9
Total Unsecured Term Loan through PSP of CARES Act	136		159
ProceedsFromPayrollSupportProgramGrant	403		457
PSP Installments Received	$ 539
CARES PSP 2 [Member] | Subsequent Event [Member]
CARES Funds Received [Line Items]
Additional Relief from PSP of CARES Act				$ 80
CARES PSP 3 [Member]
CARES Funds Received [Line Items]
Total Expected Relief From PSP of CARES Act			584
Adjustments to Additional Paid in Capital, Warrant Issued			6
Total Unsecured Term Loan through PSP of CARES Act			147
ProceedsFromPayrollSupportProgramGrant			$ 431

COVID-19 PANDEMIC (Details)

COVID-19 PANDEMIC (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Risks and Uncertainties [Abstract]
Restructuring Charges	$ 11	$ 0	$ 220
Restructuring Reserve	91		127
Payments for Restructuring	(47)
Leased Aircraft Return Costs	$ 18		$ 209

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Passenger Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 659	$ 1,481
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	525	1,213
Passenger Revenue [Member] | Passenger ancillary revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	50	116
Passenger Revenue [Member] | Mileage Plan passenger revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	84	152
Passenger Revenue [Member] | Passenger [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	659	1,481
Mileage Plan Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	178	261
Mileage Plan 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	84	152
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	94	109
Cargo and Other Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	44	46
Cargo and Other Revenue [Member] | Cargo revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	27	24
Cargo and Other Revenue [Member] | Other revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 17	$ 22

REVENUE FROM CONTRACTS WITH C_4

REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Deferred Revenue Arrangement [Line Items]
Receivable	$ 517		$ 480
Costs and Expenses	958	$ 1,957
COVID-19 Credits Issued, Balance	484
Mileage Plan Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Receivable	52		$ 48
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member]
Deferred Revenue Arrangement [Line Items]
Contract liability revenue recognized	(4)	(22)
Passenger Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Contract liability revenue recognized	$ 136	$ 489

REVENUE FROM CONTRACTS WITH C_5

REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Liabilities Activity (Details) - Mileage Plan Revenue [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Change in Contract with Customer, Liability [Roll Forward]
Total Deferred Revenue balance at January 1	$ 2,277	$ 1,990
Increase in liability for mileage credits issued	136	207
Total Deferred Revenue balance at Sept 30	2,325	2,023
Passenger revenue [Member]
Change in Contract with Customer, Liability [Roll Forward]
Revenue recognized	(84)	(152)
Mileage plan other revenue [Member]
Change in Contract with Customer, Liability [Roll Forward]
Revenue recognized	$ (4)	$ (22)

FAIR VALUE MEASUREMENTS - FAIR

FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (Details) - Recurring [Member] - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 2,473	$ 1,976
Assets, Fair Value Disclosure	2,514	1,991
Derivative instruments, liabilities	18	25
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	308	414
Assets, Fair Value Disclosure	308	414
Derivative instruments, liabilities	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	2,165	1,562
Assets, Fair Value Disclosure	2,206	1,577
Derivative instruments, liabilities	18	25
Fuel hedge contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	41	15
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	41	15
Interest rate swaps agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, liabilities	18	25
Interest rate swaps agreements [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, liabilities	0	0
Interest rate swaps agreements [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, liabilities	18	25
U.S. government and agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	301	407
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	301	407
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
Equity Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	7	7
Equity Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	7	7
Equity Funds [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	19	20
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	19	20
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	284	224
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	284	224
Mortgage-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	293	290
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	293	290
Corporate notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	1,515	978
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	1,515	978
Municipal securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	54	50
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	$ 54	$ 50

FAIR VALUE MEASUREMENTS - MATUR

FAIR VALUE MEASUREMENTS - MATURITIES FOR MARKETABLE SECURITIES (Details) $ in Millions	Mar. 31, 2021USD ($)
Cost Basis
Due in one year or less	$ 1,158
Due after one year through five years	1,231
Due after five years through 10 years	62
Total	2,451
Fair Value
Due in one year or less	1,159
Due after one year through five years	1,246
Due after five years through 10 years	61
Total	$ 2,466

FAIR VALUE MEASUREMENTS - LONG-

FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 612
Carrying amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,728	$ 1,662
Fair value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,839	$ 1,778

LONG-TERM DEBT - SCHEDULE OF LO

LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ (33)		$ (33)
Total	3,571		3,495
Less current portion	1,246		1,138
Long-term debt, less current portion	$ 2,325		$ 2,357
Weighted-average fixed-interest rate	4.00%		4.30%
Weighted-average variable-interest rate	1.70%		1.90%
Long-term debt payments	$ (115)	$ (60)
Proceeds from issuance of debt	189	$ 825
Adjustments to Additional Paid in Capital, Warrant Issued	$ 8
Debt, Weighted Average Interest Rate	3.10%
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheet (in millions): March 31, 2021 December 31, 2020 Fixed-rate notes payable due through 2029 $ 186 $ 198 Fixed-rate PSP notes payable due through 2031 426 290 Fixed-rate EETC payable due through 2025 & 2027 1,116 1,174 Variable-rate notes payable due through 2029 1,876 1,866 Less debt issuance costs and unamortized debt discount (33) (33) Total debt 3,571 3,495 Less current portion 1,246 1,138 Long-term debt, less current portion $ 2,325 $ 2,357 Weighted-average fixed-interest rate 4.0 % 4.3 % Weighted-average variable-interest rate 1.7 % 1.9 % Approximately $591 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at March 31, 2021, effective weighted-average interest rate for the full debt portfolio to 3.1%. During the three months ended March 31, 2021, the Company issued $189 million of debt, comprising of $136 million of unsecured loans from the PSP and a $54 million issuance of debt. Debt proceeds were offset by $115 million in scheduled debt payments. The $426 million PSP notes are unsecured senior term loans with a 10-year term, bearing an interest rate of 1% in years 1 through 5, and an interest rate equal to the Secured Overnight Financing Rate (SOFR) plus 2% in years 6 through 10. The PSP notes are prepayable at par without penalty. CARES Act In 2020, the Company finalized an agreement with the Treasury to obtain up to $1.9 billion via a secured term loan facility. Obligations under the loan agreement are secured by assets related to, and revenues generated by, Alaska's Mileage Plan TM frequent flyer program, as well as by 30 aircraft and 15 spare engines. As of March 31, 2021, the Company has drawn $135 million available under the agreement, and may, at its option, borrow additional amounts in up to two subsequent borrowings until May 28, 2021. All proceeds drawn must be used for certain general corporate purposes and operating expenses in accordance with the terms and conditions of the loan agreement and the applicable provisions of the CARES Act. In conjunction with the initial draw, the Company granted the Treasury 427,080 warrants to purchase ALK common stock at a strike price of $31.61. The value of the warrants was estimated using a Black-Scholes option pricing model, and the relative fair value of the warrants of $6 million was recorded in stockholders' equity, with an offsetting debt discount to the CARES Act Loan issuance. Debt Maturity At March 31, 2021 long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2021 $ 659 2022 796 2023 334 2024 240 2025 396 Thereafter 1,179 Total $ 3,604 Bank Lines of Credit The Company has three credit facilities with capacity totaling $461 million as of March 31, 2021. One of the credit facilities for $120 million expires in March 2022 and is secured by certain accounts receivable, spare engines, spare parts and ground service equipment. The second credit facility for $250 million expires in June 2021 and is secured by aircraft. These two facilities have variable interest rates based on LIBOR plus a specified margin. A third credit facility for $91 million expires in June 2021 and is secured by aircraft.. The Company has an outstanding balance of $363 million on the first and second facilities, which is classified as short-term on the condensed consolidated balance sheet. Subsequent to quarter-end, the Company issued notices to repay the entire outstanding balance. The Company also has secured letters of credit against the third facility. All 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 March 31, 2021.
Line of Credit Facility, Maximum Borrowing Capacity	$ 461
Fixed rate notes payable due through 2029 [Member]
Debt Instrument [Line Items]
Total	186		$ 198
Variable rate notes payable due through 2029 [Member] [Member]
Debt Instrument [Line Items]
Total	1,876		1,866
Proceeds from Issuance of Long-term Debt	54
Proceeds from Issuance of Long-term Debt	$ 54
CARES Act Unsecured Interest Rate Years 1 to 5 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Debt Instrument, Interest Rate, Stated Percentage	1.00%
US Treasury CARES Act Loan [Member]
Debt Instrument [Line Items]
Adjustments to Additional Paid in Capital, Warrant Issued	$ 6
Line of Credit Facility, Maximum Borrowing Capacity	1,900
Line of Credit Facility, Maximum Month-end Outstanding Amount	$ 135
US Treasury CARES Act Loan [Member] | Aircraft Type [Domain]
Debt Instrument [Line Items]
Debt Instrument, Collateral	30
US Treasury CARES Act Loan [Member] | 3724 Aircraft Engines and Engine Parts [Member]
Debt Instrument [Line Items]
Debt Instrument, Collateral	15
July 2020 EETC
Debt Instrument [Line Items]
Total	$ 1,116		1,174
Credit Facility 1 [Member] | Secured by certain accounts receivable, spare engines, spare parts and ground service equipment [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	120
PSP Notes Payable through 2031
Debt Instrument [Line Items]
Total	426		$ 290
Proceeds from Issuance of Long-term Debt	136
Proceeds from Issuance of Long-term Debt	$ 136
CARES Act Unsecured Interest Rate Years 6 to 10
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.00%
Debt Instrument, Interest Rate, Stated Percentage	2.00%
Variable Rate debt with interest rate swap [Member] | Interest rate swaps agreements [Member]
Debt Instrument [Line Items]
Derivative, Notional Amount	$ 591
Derivative, Notional Amount	$ 591

LONG-TERM DEBT LONG-TERM DEBT -

LONG-TERM DEBT LONG-TERM DEBT - FUTURE PAYMENTS (Details) $ in Millions	Mar. 31, 2021USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
Remainder of 2021	$ 659
2022	796
2023	334
2024	240
2025	396
Thereafter	1,179
Total	$ 3,604

LONG-TERM DEBT - LINE OF CREDIT

LONG-TERM DEBT - LINE OF CREDIT (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)airline	Mar. 31, 2020USD ($)
Line of Credit Facility [Line Items]
Proceeds from Issuance of Secured Debt	$ 189	$ 825
Adjustments to Additional Paid in Capital, Warrant Issued	$ 8
Line of Credit Facility, Number of Credit Facilities | airline	3
Line of Credit Facility, Maximum Borrowing Capacity	$ 461
Line of Credit Facility, Asset Restrictions	500
Credit Facility 1 [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	120
Credit Facility 2 [Member] | Secured by aircraft [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	250
Credit Facility 3 [Member] | Secured by aircraft [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	91
Credit Facilities 1 & 2 [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Month-end Outstanding Amount	363
US Treasury CARES Act Loan [Member]
Line of Credit Facility [Line Items]
Adjustments to Additional Paid in Capital, Warrant Issued	6
Line of Credit Facility, Maximum Borrowing Capacity	1,900
Line of Credit Facility, Maximum Month-end Outstanding Amount	$ 135

EMPLOYEE BENEFIT PLANS - NET PE

EMPLOYEE BENEFIT PLANS - NET PENSION EXPENSE (Details) - Qualified Defined Benefit [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 13	$ 13
Interest cost	14	19
Expected return on assets	31	28
Recognized actuarial loss (gain)	(9)	(9)
Wages and Benefits [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Net pension expense	13	13
Nonoperating Income (Expense) [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Net pension expense	$ (8)	$ 0

COMMITMENTS (Details)

COMMITMENTS (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)aircraftairline
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Loss Contingency Accrual	$ 22
Maximum
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Loss Contingency, Range of Possible Loss, Portion Not Accrued	22
Minimum
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Loss Contingency, Range of Possible Loss, Portion Not Accrued	$ 0
B737 MAX [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Committed to Purchase (in Aircraft) | aircraft	51
Options to Purchase Additional (in Aircraft) | airline	52
A320neo [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Committed to Purchase (in Aircraft) | aircraft	30
E175 [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Committed to Purchase (in Aircraft) | aircraft	3
Options to Purchase Additional (in Aircraft) | airline	30
Aircraft Commitments [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Remainder of 2021	$ 111
2022	1,325
2023	681
2024	183
2025	15
Thereafter	12
Total	2,327
Capacity Purchase Agreements [Member]
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
Remainder of 2021	124
2022	173
2023	178
2024	183
2025	188
Thereafter	877
Total	1,723
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
	Mar. 31, 2021	Mar. 31, 2020
Equity [Abstract]
Cash dividend declared per share (usd per share)		$ 0.375
Payments of Dividends	$ 0	$ 45

SHAREHOLDERS' EQUITY, COMMON ST

SHAREHOLDERS' EQUITY, COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions	3 Months Ended	67 Months Ended
	Mar. 31, 2020	Mar. 31, 2021	Aug. 31, 2015
Class of Stock [Line Items]
Stock Repurchased During Period, Value	$ 31
2015 1 Billion Repurchase Program [Member]
Class of Stock [Line Items]
Stock repurchase program, authorized amount			$ 1,000
Stock repurchased during period (shares)		7,600,000
Stock Repurchased During Period, Value		$ 544

SHAREHOLDERS' EQUITY, ACCUMULAT

SHAREHOLDERS' EQUITY, ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Related to marketable securities	$ 11	$ 23
Related to employee benefit plans	492	498
Related to interest rate derivatives	(13)	(19)
Total	$ (494)	$ (494)

SHAREHOLDERS' EQUITY , WARRANT

SHAREHOLDERS' EQUITY , WARRANT ACTIVITY (Details) - $ / shares	Apr. 29, 2021	Mar. 31, 2021	Mar. 10, 2021	Dec. 24, 2020	Apr. 09, 2020
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding		1,611,081
PSP 1 Warrants
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding		928,127
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 31.61
US Treasury CARES Act Loan [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding		427,080
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 31.61
PSP 2 Warrants
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding		255,874
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 52.25
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right		255,874
PSP 2 Warrants | Subsequent Event [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	45,855
PSP 3 Warrants
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 66.39
PSP 3 Warrants | Subsequent Event [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	88,395

OPERATING SEGMENT INFORMATION_2

OPERATING SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Revenues
Total Operating Revenues	$ 797	$ 1,636
Operating expenses
Operating Expenses, Excluding Fuel	755	1,573
Economic fuel	203	384
Total Operating Expenses	958	1,957
Nonoperating Income (Expense)
Interest income	7	9
Interest expense	(32)	(13)
Interest Costs Capitalized	3	3
Other	10	5
Nonoperating Income (Expense) Total	(12)	4
Income (loss) before income tax	(173)	(317)
Costs and Expenses, Total	958	1,957
Interest Costs Incurred	32	13
Air Group Adjusted [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	797	1,636
Operating expenses
Operating Expenses, Excluding Fuel	1,137	1,410
Economic fuel	225	375
Total Operating Expenses	1,362	1,785
Nonoperating Income (Expense)
Interest income	7	9
Interest expense	(32)	(13)
Interest Costs Capitalized	3	3
Other	10	5
Nonoperating Income (Expense) Total	(12)	4
Income (loss) before income tax	(577)	(145)
Alaska Mainline [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	630	1,376
Operating expenses
Operating Expenses, Excluding Fuel	893	1,159
Economic fuel	174	313
Total Operating Expenses	1,067	1,472
Nonoperating Income (Expense)
Interest income	7	14
Interest expense	(27)	(12)
Interest Costs Capitalized	3	3
Other	10	6
Nonoperating Income (Expense) Total	(7)	11
Income (loss) before income tax	(444)	(85)
Alaska Regional [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	167	258
Operating expenses
Operating Expenses, Excluding Fuel	265	269
Economic fuel	52	62
Total Operating Expenses	317	331
Nonoperating Income (Expense)
Interest income	0	0
Interest expense	0	0
Interest Costs Capitalized	0	0
Other	0	0
Nonoperating Income (Expense) Total	0	0
Income (loss) before income tax	(150)	(73)
Horizon [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	104	105
Operating expenses
Operating Expenses, Excluding Fuel	88	92
Economic fuel	0	0
Total Operating Expenses	88	92
Nonoperating Income (Expense)
Interest income	0	0
Interest expense	(5)	(5)
Interest Costs Capitalized	0	0
Other	0	0
Nonoperating Income (Expense) Total	(5)	(5)
Income (loss) before income tax	11	8
Consolidating and Other [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	(104)	(103)
Operating expenses
Operating Expenses, Excluding Fuel	(109)	(110)
Economic fuel	(1)	0
Total Operating Expenses	(110)	(110)
Nonoperating Income (Expense)
Interest income	0	(5)
Interest expense	0	(4)
Interest Costs Capitalized	0	0
Other	0	(1)
Nonoperating Income (Expense) Total	0	(2)
Income (loss) before income tax	6	5
Special Charges [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Operating expenses
Operating Expenses, Excluding Fuel	(382)	163
Economic fuel	(22)	9
Total Operating Expenses	(404)	172
Nonoperating Income (Expense)
Interest income	0	0
Interest expense	0	0
Interest Costs Capitalized	0	0
Other	0	0
Nonoperating Income (Expense) Total	0	0
Income (loss) before income tax	404	(172)
Passenger [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	659	1,481
Passenger [Member] | Air Group Adjusted [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	659	1,481
Passenger [Member] | Alaska Mainline [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	506	1,234
Passenger [Member] | Alaska Regional [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	153	247
Passenger [Member] | Horizon [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Passenger [Member] | Consolidating and Other [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Passenger [Member] | Special Charges [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Capacity Purchase Agreements [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Capacity Purchase Agreements [Member] | Air Group Adjusted [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Capacity Purchase Agreements [Member] | Alaska Mainline [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Capacity Purchase Agreements [Member] | Alaska Regional [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Capacity Purchase Agreements [Member] | Horizon [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	104	105
Capacity Purchase Agreements [Member] | Consolidating and Other [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	(104)	(105)
Capacity Purchase Agreements [Member] | Special Charges [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Mileage plan other revenue [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	94	109
Mileage plan other revenue [Member] | Air Group Adjusted [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	94	109
Mileage plan other revenue [Member] | Alaska Mainline [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	80	98
Mileage plan other revenue [Member] | Alaska Regional [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	14	11
Mileage plan other revenue [Member] | Horizon [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Mileage plan other revenue [Member] | Consolidating and Other [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Mileage plan other revenue [Member] | Special Charges [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Cargo and Freight [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	44	46
Cargo and Freight [Member] | Air Group Adjusted [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	44	46
Cargo and Freight [Member] | Alaska Mainline [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	44	44
Cargo and Freight [Member] | Alaska Regional [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Cargo and Freight [Member] | Horizon [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	0
Cargo and Freight [Member] | Consolidating and Other [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	0	2
Cargo and Freight [Member] | Special Charges [Member]
Operating Revenues
Revenue from contract with customer, including assessed taxes	$ 0	$ 0

OPERATING SEGMENT INFORMATION,

OPERATING SEGMENT INFORMATION, ASSETS (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Total assets	$ 14,262	$ 14,046
Alaska Airlines [Member]
Total assets	19,951	19,754
Horizon [Member]
Total assets	1,200	1,170
Consolidating and Other [Member]
Total assets	$ (6,889)	$ (6,878)