COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 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, $0.01 par value | |
Security Exchange Name | NYSE | |
Trading Symbol | ALK | |
Entity Address, Address Line One | 19300 International Boulevard, | |
Entity Address, City or Town | Seattle, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98188 | |
City Area Code | (206) | |
Local Phone Number | 392-5040 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 125,232,721 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000766421 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 1,025 | $ 1,370 |
Marketable securities | 2,926 | 1,976 |
Total cash and marketable securities | 3,951 | 3,346 |
Receivables - net | 567 | 480 |
Inventories and supplies - net | 52 | 57 |
Prepaid expenses, assets held-for-sale, and other current assets | 201 | 123 |
Total Current Assets | 4,771 | 4,006 |
Property and Equipment | ||
Aircraft and other flight equipment | 7,996 | 7,761 |
Other property and equipment | 1,433 | 1,398 |
Deposits for future flight equipment | 402 | 583 |
Property and Equipment Total | 9,831 | 9,742 |
Less accumulated depreciation and amortization | 3,703 | 3,531 |
Total Property and Equipment - Net | 6,128 | 6,211 |
Operating Lease, Right-of-Use Asset | 1,375 | 1,400 |
Goodwill | 1,943 | 1,943 |
Intangible assets - net | 103 | 107 |
Other noncurrent assets | 336 | 379 |
Other Assets | 3,757 | 3,829 |
Total Assets | 14,656 | 14,046 |
Current Liabilities | ||
Accounts payable | 159 | 108 |
Accrued wages, vacation and payroll taxes | 439 | 527 |
Other accrued liabilities | 661 | 424 |
Operating Lease, Liability, Current | 263 | 290 |
Current portion of long-term debt | 869 | 1,138 |
Total Current Liabilities | 4,846 | 4,293 |
Long-Term Debt, Net of Current Portion | 2,319 | 2,357 |
Noncurrent Liabilities | ||
Operating Lease, Liability, Noncurrent | 1,222 | 1,268 |
Deferred Income Tax Liabilities, Net | 439 | 407 |
Deferred revenue, noncurrent | 1,424 | 1,544 |
Obligation for pension and postretirement medical benefits | 660 | 665 |
Other liabilities | 422 | 524 |
Other Liabilities and Credits Totals | 4,167 | 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 | 454 | 391 |
Treasury stock (common), at cost: 2020 - 9,349,944 shares; 2020 - 9,349,944 shares | (674) | (674) |
Accumulated other comprehensive loss | (487) | (494) |
Retained earnings | 4,030 | 3,764 |
Total Shareholders' Equity | $ 3,324 | 2,988 |
Preferred Stock, par value (usd per share) | $ 0.01 | |
Total Liabilities and Shareholders' Equity | $ 14,656 | 14,046 |
Mileage Plan Revenue [Member] | ||
Current Liabilities | ||
Contract with Customer, Liability, Current | 922 | 733 |
Contract with Customer, Liability, Current | 922 | 733 |
Passenger Revenue [Member] | ||
Current Liabilities | ||
Contract with Customer, Liability, Current | 1,533 | 1,073 |
Contract with Customer, Liability, Current | $ 1,533 | $ 1,073 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - $ / shares | Jun. 30, 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) | 134,579,403 | 133,567,534 |
Common stock, shares outstanding (shares) | 125,229,459 | 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Revenues | ||||
Total Operating Revenues | $ 1,527 | $ 421 | $ 2,324 | $ 2,057 |
Operating Expenses | ||||
Wages and benefits | 510 | 472 | 1,003 | 1,084 |
Variable incentive pay | 34 | 16 | 67 | 23 |
PSPGrantRecognized | (503) | 362 | (914) | 362 |
Aircraft fuel, including hedging gains and losses | 274 | 59 | 477 | 443 |
Aircraft maintenance | 102 | 45 | 183 | 160 |
Aircraft rent | 62 | 74 | 124 | 155 |
Landing fees and other rentals | 144 | 83 | 273 | 214 |
Contracted services | 54 | 30 | 105 | 102 |
Selling expenses | 41 | 4 | 74 | 59 |
Depreciation and amortization | 98 | 107 | 195 | 215 |
Food and beverage service | 35 | 7 | 58 | 56 |
Third-party regional carrier expense | 37 | 26 | 67 | 63 |
Other | 117 | 78 | 222 | 221 |
Special items - Impairment charges and other | (4) | 69 | 14 | 229 |
Restructuring Charges | (23) | 0 | (12) | 0 |
Special items - merger-related costs | 0 | 1 | 0 | 4 |
Costs and Expenses, Total | 978 | 709 | 1,936 | 2,666 |
Operating Income (Loss) | 549 | (288) | 388 | (609) |
Nonoperating Income (Expense) | ||||
Interest income | 6 | 7 | 13 | 16 |
Interest Costs Incurred | (39) | (17) | (71) | (30) |
Interest capitalized | 3 | 1 | 6 | 4 |
Other—net | 9 | 6 | 19 | 11 |
Nonoperating Income (Expense) Total | (21) | (3) | (33) | 1 |
Income (Loss) Before Income Tax | 528 | (291) | 355 | (608) |
Income tax (benefit) expense | 131 | (77) | 89 | (162) |
Net Income (Loss) | $ 397 | $ (214) | $ 266 | $ (446) |
Basic Earnings Per Share (usd per share) | $ 3.18 | $ (1.74) | $ 2.13 | $ (3.62) |
Diluted Earnings Per Share (usd per share) | $ 3.13 | $ (1.74) | $ 2.10 | $ (3.62) |
Shares used for computation: | ||||
Basic shares (shares) | 124,977,000 | 123,296,000 | 124,640,000 | 123,058,000 |
Diluted shares (shares) | 126,825,000 | 123,296,000 | 126,388,000 | 123,058,000 |
Passenger Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,352 | $ 309 | $ 2,011 | $ 1,790 |
Passenger Revenue [Member] | Passenger [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,352 | 309 | 2,011 | 1,790 |
Mileage Plan Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 272 | 129 | 450 | 390 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 118 | 73 | 212 | 182 |
Cargo and Other Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 57 | 39 | 101 | 85 |
Cargo and Other Revenue [Member] | Cargo and Freight [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 57 | $ 39 | $ 101 | $ 85 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 397 | $ (214) | $ 266 | $ (446) |
Related to marketable securities: | ||||
Unrealized holding gain (loss) arising during the period | 0 | 31 | (11) | 30 |
Reclassification of (gain) loss into Other - net nonoperating income (expense) | (2) | (6) | (6) | (9) |
Income tax effect | 1 | (6) | 4 | (5) |
Total | (1) | 19 | (13) | 16 |
Related to employee benefit plans: | ||||
Reclassification of net pension expense into Wages and benefits and Other - net nonoperating income (expense) | (9) | (8) | (17) | (15) |
Income tax effect | (2) | (2) | (4) | (4) |
Total | 7 | 6 | 13 | 11 |
Related to interest rate derivative instruments: | ||||
Unrealized holding gain (loss) arising during the period | (1) | (2) | (9) | (27) |
Reclassification of loss into Aircraft rent | 0 | 0 | 0 | (1) |
Income tax effect | 0 | (1) | (2) | (6) |
Total | 1 | (1) | 7 | (20) |
Other Comprehensive Income (Loss) | 7 | 24 | 7 | 7 |
Comprehensive Income (Loss) | $ 404 | $ (190) | $ 273 | $ (439) |
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) | ||||
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 | |||||
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) | (446) | |||||
Other Comprehensive Income (Loss), Net of Tax | 7 | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2020 | 3,861 | $ 1 | 350 | (674) | (458) | 4,642 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 122.585 | |||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2020 | 4,015 | $ 1 | 314 | (674) | (482) | 4,856 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (214) | (214) | ||||
Other Comprehensive Income (Loss), Net of Tax | 24 | 24 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2 | 2 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 1 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 27 | 27 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | ||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2020 | 3,861 | $ 1 | 350 | (674) | (458) | 4,642 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 7 | 7 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.054 | |||||
Common stock, shares outstanding (shares) | 123.639 | |||||
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 | |||||
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) | 266 | |||||
Other Comprehensive Income (Loss), Net of Tax | 7 | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2021 | 3,324 | $ 1 | 454 | (674) | (487) | 4,030 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 124.442 | |||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2021 | 2,875 | $ 1 | 409 | (674) | (494) | 3,633 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 397 | 397 | ||||
Other Comprehensive Income (Loss), Net of Tax | 7 | 7 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0.009 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 13 | 13 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.716 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 23 | 23 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 1 | 1 | ||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2021 | 3,324 | $ 1 | 454 | $ (674) | $ (487) | $ 4,030 |
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 | 0.062 | |||||
Common stock, shares outstanding (shares) | 125,229,459 | 125.229 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||||||
Net Income | $ 397 | $ (131) | $ (214) | $ (232) | $ 266 | $ (446) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 98 | 107 | 195 | 215 | |||
Stock-based compensation and other | 24 | 7 | |||||
Special items - Impairment charges and other | (4) | 69 | 14 | 229 | |||
Restructuring Charges | (23) | 11 | 0 | (12) | 0 | $ 220 | |
Changes in certain assets and liabilities: | |||||||
Changes in deferred tax provision | (33) | 98 | |||||
Increase (Decrease) in Contract with Customer, Liability | 460 | 231 | |||||
Increase in deferred revenue | 69 | 84 | |||||
Other - net | (42) | 99 | |||||
Net cash provided by operating activities | 1,007 | 321 | |||||
Property and equipment additions: | |||||||
Aircraft and aircraft purchase deposits | (30) | (58) | |||||
Other flight equipment | (38) | (43) | |||||
Other property and equipment | (34) | (67) | |||||
Total property and equipment additions, including capitalized interest | (102) | (168) | |||||
Purchases of marketable securities | (2,524) | (1,004) | |||||
Sales and maturities of marketable securities | 1,561 | 1,038 | |||||
Other investing activities | 5 | (10) | |||||
Net cash used in investing activities | (1,070) | (124) | |||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 363 | 1,265 | |||||
Long-term debt payments | (681) | (125) | |||||
Common stock repurchases | 0 | (31) | |||||
Dividends paid | 0 | (45) | |||||
Other financing activities | 37 | 27 | |||||
Net cash provided by (used in) financing activities | (281) | 1,091 | |||||
Net increase in cash, cash equivalents, and restricted cash | (344) | 1,288 | |||||
Cash, cash equivalents, and restricted cash at beginning of year | $ 1,386 | $ 232 | 1,386 | 232 | 232 | ||
Cash, cash equivalents, and restricted cash at end of the period | 1,042 | 1,520 | 1,042 | 1,520 | 1,386 | ||
Cash paid during the period for: | |||||||
Interest (net of amount capitalized) | 61 | 25 | |||||
Income taxes | 0 | ||||||
Cash and cash equivalents | 1,025 | 1,509 | 1,025 | 1,509 | $ 1,370 | ||
Restricted cash included in Prepaid expenses, assets held-for-sale and other current assets | $ 17 | $ 11 | $ 17 | $ 11 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 1,025 | $ 1,370 | $ 1,509 | |
Restricted cash included in Prepaid expenses, assets held-for-sale and other current assets | 17 | 11 | ||
Total cash, cash equivalents, and restricted cash at end of the period | $ 1,042 | $ 1,386 | $ 1,520 | $ 232 |
GENERAL AND SUMMARY OF SIGNIFIC
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and the results of operations for the three and six months ended June 30, 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 and six months ended June 30, 2021 are not necessarily indicative of operating results for the entire year. |
COVID-19 Pandemic
COVID-19 Pandemic | 6 Months Ended |
Jun. 30, 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 demand, passenger enplanements remain below pre-pandemic levels. As a result, the Company continues to fly less capacity than it had pre-pandemic. 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. Department of the Treasury (the Treasury). As demand has improved and the business has grown back towards pre-pandemic flying levels, these programs have been adjusted to meet the needs of the airline. The impacts of these programs for the three and six months ended June 30, 2021 are described below. Lease Return Costs The Company removed 40 leased Aircraft from operating service in 2020, and 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 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 was classified as Special items - impairment charges and other on the condensed consolidated statements of operations. In the second quarter, expected costs to return leased aircraft was reduced by $4 million. 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. In the second quarter of 2021, the Company initiated a plan to reactivate up to twelve previously parked Airbus aircraft to support the Company's plans for restoring capacity to 100% of pre-pandemic levels by no later than summer 2022. These reactivations create flexibility as management seeks to return capacity, mitigating against both staffing and supply chain risks that could constrain Alaska or Horizon's available capacity. Management's plans to return to 100% of pre-pandemic levels by no later than summer 2022 are consistent with previous plans, but some recovery has been accelerated into the second half of 2021 in response to the strong demand recovery that took place in the second quarter.The first of these reactivated aircraft are expected to reenter revenue service beginning in the third quarter of 2021, with all reactivated by the second quarter of 2022. The Company currently anticipates these aircraft will be removed from operating service beginning in late 2022 through the end of 2023. At this time, the Company does not anticipate material changes to estimated lease return costs previously recorded, as leases for aircraft returning to service generally expire within a near term window. Workforce restructuring The Company continues to expect that demand will be below pre-pandemic levels through the end of 2021, but management will continue rebuilding capacity to 2019 levels. 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 June 30, 2021, approximately 1,800 employees remain on a voluntary leave program. The Company expects all employees on leave to return to work by October 2021. 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, resulting in additional expense of $11 million. In the second quarter, demand improved at an accelerated pace, and the Company issued recall notices to all pilots on incentive leave for return-to-work by October 2021. As a result, $23 million of incentive leave accrual was reversed and recognized as a benefit within Special items - restructuring charges in the condensed consolidated statements of operations during the three months ended June 30, 2021. In total, the Company has recorded a net benefit from these adjustments of $12 million during the six months ended June 30, 2021. The table below presents a roll forward of the outstanding voluntary leave liability (in millions): Six Months Ended Total voluntary leave liability balance at January 1 $ 127 Cash payments (79) Charges and adjustments (12) Total voluntary leave liability balance at June 30 $ 36 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 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. In April 2021, Alaska and Horizon received an additional $80 million in funds made available under PSP 2. Also in April 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 received total funds of $585 million in the second quarter of 2021. Of the amounts received during the six months ended June 30, 2021, $311 million represented unsecured debt and was recorded at par, and $16 million represented warrants recorded at fair value using the Black-Scholes model. Both were recorded on the condensed consolidated balance sheet. The remaining $892 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 the PSP program (PSP 1). The grant is recorded as an offset to wages, salaries and benefits as eligible expenses are incurred. During the six months ended June 30, 2021, the Company recognized $914 million of the PSP grant proceeds as a wage offset. Included within this $914 million is approximately $21 million for employee retention credits as provided for in the CARES Act. The Company does not expect to record any additional wage offset in 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 2 457 160 9 626 PSP 3 431 147 7 585 Total $ 1,645 $ 600 $ 25 $ 2,270 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Passenger ticket revenue, including ticket breakage and net of taxes and fees $ 1,114 $ 222 $ 1,639 $ 1,435 Passenger ancillary revenue 84 31 134 147 Mileage Plan passenger revenue 154 56 238 208 Total Passenger revenue $ 1,352 $ 309 $ 2,011 $ 1,790 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, 2021 2020 2021 2020 Passenger revenue $ 154 $ 56 $ 238 $ 208 Mileage Plan other revenue 118 73 212 182 Total Mileage Plan revenue $ 272 $ 129 $ 450 $ 390 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, 2021 2020 2021 2020 Cargo revenue $ 34 $ 28 $ 61 $ 52 Other revenue 23 11 40 33 Total Cargo and other revenue $ 57 $ 39 $ 101 $ 85 Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $36 million and net refunds from the prior year-end air traffic liability balance for the three months ended June 30, 2021 and 2020, and $175 million and $484 million for the six months ended June 30, 2021 and 2020. Given the increase in demand for air travel from the recovery from the COVID-19 pandemic, advance bookings and associated cash receipts have significantly increased in relation to prior year. The Company also experienced increased revenue recognition from credits redeemed for travel, for which the remaining balance is included in the air traffic liability balance, and total $387 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. 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 $61 million of such receivables as of June 30, 2021 and $48 million as of December 31, 2020. As demand for air travel continues to increase unpredictably, 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): Six Months Ended June 30, 2021 2020 Total Deferred Revenue balance at January 1 $ 2,277 $ 1,990 Travel miles and companion certificate redemption - Passenger revenue (238) (208) Miles redeemed on partner airlines - Other revenue (17) (21) Increase in liability for mileage credits issued 324 313 Total Deferred Revenue balance at June 30 $ 2,346 $ 2,074 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 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 June 30, 2021, total cost basis for all marketable securities was $2.9 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): June 30, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 298 $ — $ 298 $ 407 $ — $ 407 Equity mutual funds 5 — 5 7 — 7 Foreign government bonds — 31 31 — 20 20 Asset-backed securities — 330 330 — 224 224 Mortgage-backed securities — 253 253 — 290 290 Corporate notes and bonds — 1,943 1,943 — 978 978 Municipal securities — 66 66 — 50 50 Total Marketable securities 303 2,623 2,926 414 1,562 1,976 Derivative instruments Fuel hedge - call options — 92 92 — 15 15 Total Assets $ 303 $ 2,715 $ 3,018 $ 414 $ 1,577 $ 1,991 Liabilities Derivative instruments Interest rate swap agreements — (16) (16) — (25) (25) Total Liabilities $ — $ (16) $ (16) $ — $ (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 June 30, 2021. Maturities for marketable securities (in millions): June 30, 2021 Cost Basis Fair Value Due in one year or less $ 1,538 $ 1,539 Due after one year through five years 1,280 1,294 Due after five years through 10 years 88 88 Total $ 2,906 $ 2,921 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 June 30, 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 $780 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): June 30, 2021 December 31, 2020 Total fixed-rate debt $ 1,896 $ 1,662 Estimated fair value $ 2,019 $ 1,778 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheet (in millions): June 30, 2021 December 31, 2020 Fixed-rate notes payable due through 2029 $ 180 $ 198 Fixed-rate PSP notes payable due through 2031 600 290 Fixed-rate EETC payable due through 2025 & 2027 1,116 1,174 Variable-rate notes payable due through 2029 1,315 1,866 Less debt issuance costs and unamortized debt discount (23) (33) Total debt 3,188 3,495 Less current portion 869 1,138 Long-term debt, less current portion $ 2,319 $ 2,357 Weighted-average fixed-interest rate 3.7 % 4.3 % Weighted-average variable-interest rate 1.6 % 1.9 % Approximately $562 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at June 30, 2021, resulting in an effective weighted-average interest rate for the full debt portfolio of 3.1%. During the six months ended June 30, 2021, the Company issued $363 million of debt, comprised of $311 million of unsecured loans from the PSP and $54 million in proceeds from issuance of debt. Debt proceeds were offset by $681 million in debt payments. Included within total debt payments is the full repayment of the $135 million loan from the U.S. Treasury made available under the CARES Act and the $363 million outstanding balance on two credit facilities. The $600 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 were 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. In 2020, the Company drew $135 million under the agreement, which was 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. The full balance was repaid in the second quarter of 2021. In accordance with the related agreement, the facility terminated at the time of payment. Debt Maturity At June 30, 2021 long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2021 $ 227 2022 796 2023 334 2024 240 2025 261 Thereafter 1,353 Total $ 3,211 Bank Lines of Credit The Company has three credit facilities with availability totaling $486 million as of June 30, 2021, resulting from the second quarter 2021 repayment of $363 million. One of the credit facilities for $150 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 2024 and is secured by aircraft. These two facilities have variable interest rates based on LIBOR plus a specified margin. A third credit facility for $86 million expires in June 2022 and is secured by aircraft. The Company has secured letters of credit against the third facility, but has no plans to borrow using either of the other two facilities. 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 June 30, 2021. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Service cost $ 13 $ 13 $ 26 $ 26 Pension expense included in Wages and benefits 13 13 26 26 Interest cost 14 19 28 38 Expected return on assets (30) (27) (61) (55) Recognized actuarial loss 9 8 18 17 Pension expense included in Nonoperating Income (Expense) $ (7) $ — $ (15) $ — |
COMMITMENTS
COMMITMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS AND CONTINGENCIES Future minimum payments for commitments as of June 30, 2021 (in millions): Aircraft Commitments (a) Capacity Purchase Agreements (b) Remainder of 2021 $ 107 $ 82 2022 1,458 173 2023 1,207 178 2024 291 183 2025 76 188 Thereafter 12 877 Total $ 3,151 $ 1,681 (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 June 30, 2021, Alaska had commitments to purchase 63 B737-9 MAX aircraft, with contracted deliveries between 2021 and 2024. Future minimum contractual payments for these aircraft reflect the expected delivery timing, but are also subject to change. Horizon also has commitments to purchase 12 E175 aircraft with deliveries between 2022 and 2025. Alaska has cancelable purchase commitments for 30 Airbus A320neo aircraft with deliveries from 2024 through 2027. In addition, Alaska has options to purchase 39 B737-9 MAX aircraft, and Horizon has options to purchase 21 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. The Company is involved in other litigation around the application of state and local employment laws, like many air carriers. Our defenses are similar to those identified above, including that the state and local laws are preempted by federal law and are unconstitutional because they impede interstate commerce. None of these additional disputes are material. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 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 June 30, 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 Issuances As additional taxpayer protection required under PSP programs, during the six months ended June 30, 2021 the Company granted the Treasury a total of 539,508 warrants to purchase Alaska Air Group (ALK) common stock. 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. Additionally, in conjunction with the October 2020 draw on the CARES Act Loan, the Company granted the Treasury 427,080 warrants to purchase ALK common stock. 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. Total warrants outstanding are as follows as of June 30, 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 2 305,499 52.25 PSP 3 221,812 66.39 Total 1,882,518 Accumulated other comprehensive loss Components of accumulated other comprehensive loss, net of tax (in millions): June 30, 2021 December 31, 2020 Related to marketable securities $ 10 $ 23 Related to employee benefit plans (485) (498) Related to interest rate derivatives (12) (19) Total $ (487) $ (494) Earnings (Loss) Per Share (EPS) 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. Loss per share is calculated by dividing net loss by the average number of basic shares outstanding. For the three and six months ended June 30, 2021, anti-dilutive shares excluded from the calculation of EPS were not material. |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENT INFORMATION | OPERATING SEGMENT INFORMATION Alaska 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 June 30, 2021 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,072 $ 280 $ — $ — $ 1,352 $ — $ 1,352 CPA revenues — — 111 (111) — — — Mileage Plan other revenue 102 16 — — 118 — 118 Cargo and other 55 — — 2 57 — 57 Total Operating Revenues 1,229 296 111 (109) 1,527 — 1,527 Operating Expenses Operating expenses, excluding fuel 984 286 91 (127) 1,234 (530) 704 Economic fuel 253 66 — 1 320 (46) 274 Total Operating Expenses 1,237 352 91 (126) 1,554 (576) 978 Nonoperating Income (Expense) Interest income 6 — — — 6 — 6 Interest expense (34) — (5) — (39) — (39) Interest capitalized 3 — — — 3 — 3 Other - net 9 — — — 9 — 9 Total Nonoperating Income (Expense) (16) — (5) — (21) — (21) Income (Loss) Before Income Tax $ (24) $ (56) $ 15 $ 17 $ (48) $ 576 $ 528 Three Months Ended June 30, 2020 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 225 $ 84 $ — $ — $ 309 $ — $ 309 CPA revenues — — 81 (81) — — — Mileage Plan other revenue 56 17 — — 73 — 73 Cargo and other 39 — — — 39 — 39 Total Operating Revenues 320 101 81 (81) 421 — 421 Operating Expenses Operating expenses, excluding fuel 746 210 68 (82) 942 (292) 650 Economic fuel 45 20 — — 65 (6) 59 Total Operating Expenses 791 230 68 (82) 1,007 (298) 709 Nonoperating Income (Expense) Interest income 11 — — (4) 7 — 7 Interest expense (18) — (5) 6 (17) — (17) Interest capitalized 1 — — — 1 — 1 Other - net 6 — — — 6 — 6 Total Nonoperating Income (Expense) — — (5) 2 (3) — (3) Income (Loss) Before Income Tax $ (471) $ (129) $ 8 $ 3 $ (589) $ 298 $ (291) Six Months Ended June 30, 2021 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,578 $ 433 $ — $ — $ 2,011 $ — $ 2,011 CPA revenues — — 215 (215) — — — Mileage Plan other revenue 182 30 — — 212 — 212 Cargo and other 99 — — 2 101 — 101 Total Operating Revenues 1,859 463 215 (213) 2,324 — 2,324 Operating Expenses Operating expenses, excluding fuel 1,877 551 179 (236) 2,371 (912) 1,459 Economic fuel 427 118 — — 545 (68) 477 Total Operating Expenses 2,304 669 179 (236) 2,916 (980) 1,936 Nonoperating Income (Expense) Interest income 13 — — — 13 — 13 Interest expense (61) — (10) — (71) — (71) Interest capitalized 6 — — — 6 — 6 Other - net 19 — — — 19 — 19 Total Nonoperating Income (Expense) (23) — (10) — (33) — (33) Income (Loss) Before Income Tax $ (468) $ (206) $ 26 $ 23 $ (625) $ 980 $ 355 Six Months Ended June 30, 2020 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,459 $ 331 $ — $ — $ 1,790 $ — $ 1,790 CPA revenues — — 186 (186) — — — Mileage Plan other revenue 154 28 — — 182 — 182 Cargo and other 83 — — 2 85 — 85 Total Operating Revenues 1,696 359 186 (184) 2,057 — 2,057 Operating Expenses Operating expenses, excluding fuel 1,905 479 160 (192) 2,352 (129) 2,223 Economic fuel 358 82 — — 440 3 443 Total Operating Expenses 2,263 561 160 (192) 2,792 (126) 2,666 Nonoperating Income (Expense) Interest income 25 — — (9) 16 — 16 Interest expense (30) — (10) 10 (30) — (30) Interest capitalized 4 — — — 4 — 4 Other - net 12 — — (1) 11 — 11 Total Nonoperating Income (Expense) 11 — (10) — 1 — 1 Income (Loss) Before Income Tax $ (556) $ (202) $ 16 $ 8 $ (734) $ 126 $ (608) (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): June 30, 2021 December 31, 2020 Mainline $ 19,920 $ 19,754 Horizon 1,251 1,170 Consolidating & Other (6,515) (6,878) Consolidated $ 14,656 $ 14,046 |
GENERAL AND SUMMARY OF SIGNIF_2
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and the results of operations for the three and six months ended June 30, 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 and six months ended June 30, 2021 are not necessarily indicative of operating results for the entire year. |
COVID-19 PANDEMIC (Tables)
COVID-19 PANDEMIC (Tables) | 6 Months Ended |
Jun. 30, 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 2 457 160 9 626 PSP 3 431 147 7 585 Total $ 1,645 $ 600 $ 25 $ 2,270 |
Restructuring and Related Costs | The table below presents a roll forward of the outstanding voluntary leave liability (in millions): Six Months Ended Total voluntary leave liability balance at January 1 $ 127 Cash payments (79) Charges and adjustments (12) Total voluntary leave liability balance at June 30 $ 36 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Passenger revenue recognized in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Passenger ticket revenue, including ticket breakage and net of taxes and fees $ 1,114 $ 222 $ 1,639 $ 1,435 Passenger ancillary revenue 84 31 134 147 Mileage Plan passenger revenue 154 56 238 208 Total Passenger revenue $ 1,352 $ 309 $ 2,011 $ 1,790 Mileage Plan™ revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Passenger revenue $ 154 $ 56 $ 238 $ 208 Mileage Plan other revenue 118 73 212 182 Total Mileage Plan revenue $ 272 $ 129 $ 450 $ 390 Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cargo revenue $ 34 $ 28 $ 61 $ 52 Other revenue 23 11 40 33 Total Cargo and other revenue $ 57 $ 39 $ 101 $ 85 |
Contract with Customer Liabilities | The table below presents a roll forward of the total frequent flyer liability (in millions): Six Months Ended June 30, 2021 2020 Total Deferred Revenue balance at January 1 $ 2,277 $ 1,990 Travel miles and companion certificate redemption - Passenger revenue (238) (208) Miles redeemed on partner airlines - Other revenue (17) (21) Increase in liability for mileage credits issued 324 313 Total Deferred Revenue balance at June 30 $ 2,346 $ 2,074 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Investments Classified by Contractual Maturity Date | Maturities for marketable securities (in millions): June 30, 2021 Cost Basis Fair Value Due in one year or less $ 1,538 $ 1,539 Due after one year through five years 1,280 1,294 Due after five years through 10 years 88 88 Total $ 2,906 $ 2,921 |
Fair Value, by Balance Sheet Grouping | Fair values of financial instruments on the condensed consolidated balance sheet (in millions): June 30, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 298 $ — $ 298 $ 407 $ — $ 407 Equity mutual funds 5 — 5 7 — 7 Foreign government bonds — 31 31 — 20 20 Asset-backed securities — 330 330 — 224 224 Mortgage-backed securities — 253 253 — 290 290 Corporate notes and bonds — 1,943 1,943 — 978 978 Municipal securities — 66 66 — 50 50 Total Marketable securities 303 2,623 2,926 414 1,562 1,976 Derivative instruments Fuel hedge - call options — 92 92 — 15 15 Total Assets $ 303 $ 2,715 $ 3,018 $ 414 $ 1,577 $ 1,991 Liabilities Derivative instruments Interest rate swap agreements — (16) (16) — (25) (25) Total Liabilities $ — $ (16) $ (16) $ — $ (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): June 30, 2021 December 31, 2020 Total fixed-rate debt $ 1,896 $ 1,662 Estimated fair value $ 2,019 $ 1,778 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt obligations on the condensed consolidated balance sheet (in millions): June 30, 2021 December 31, 2020 Fixed-rate notes payable due through 2029 $ 180 $ 198 Fixed-rate PSP notes payable due through 2031 600 290 Fixed-rate EETC payable due through 2025 & 2027 1,116 1,174 Variable-rate notes payable due through 2029 1,315 1,866 Less debt issuance costs and unamortized debt discount (23) (33) Total debt 3,188 3,495 Less current portion 869 1,138 Long-term debt, less current portion $ 2,319 $ 2,357 Weighted-average fixed-interest rate 3.7 % 4.3 % Weighted-average variable-interest rate 1.6 % 1.9 % |
Schedule of Maturities of Long-term Debt | At June 30, 2021 long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2021 $ 227 2022 796 2023 334 2024 240 2025 261 Thereafter 1,353 Total $ 3,211 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Service cost $ 13 $ 13 $ 26 $ 26 Pension expense included in Wages and benefits 13 13 26 26 Interest cost 14 19 28 38 Expected return on assets (30) (27) (61) (55) Recognized actuarial loss 9 8 18 17 Pension expense included in Nonoperating Income (Expense) $ (7) $ — $ (15) $ — |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 (in millions): Aircraft Commitments (a) Capacity Purchase Agreements (b) Remainder of 2021 $ 107 $ 82 2022 1,458 173 2023 1,207 178 2024 291 183 2025 76 188 Thereafter 12 877 Total $ 3,151 $ 1,681 (a) Includes non-cancelable contractual commitments for aircraft and engines, aircraft maintenance and parts management. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive loss, net of tax (in millions): June 30, 2021 December 31, 2020 Related to marketable securities $ 10 $ 23 Related to employee benefit plans (485) (498) Related to interest rate derivatives (12) (19) Total $ (487) $ (494) |
Schedule of Stockholders' Equity Note, Warrants or Rights | Total warrants outstanding are as follows as of June 30, 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 2 305,499 52.25 PSP 3 221,812 66.39 Total 1,882,518 |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Schedule of Segment Reporting Information, by Segment | Operating segment information is as follows (in millions): Three Months Ended June 30, 2021 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,072 $ 280 $ — $ — $ 1,352 $ — $ 1,352 CPA revenues — — 111 (111) — — — Mileage Plan other revenue 102 16 — — 118 — 118 Cargo and other 55 — — 2 57 — 57 Total Operating Revenues 1,229 296 111 (109) 1,527 — 1,527 Operating Expenses Operating expenses, excluding fuel 984 286 91 (127) 1,234 (530) 704 Economic fuel 253 66 — 1 320 (46) 274 Total Operating Expenses 1,237 352 91 (126) 1,554 (576) 978 Nonoperating Income (Expense) Interest income 6 — — — 6 — 6 Interest expense (34) — (5) — (39) — (39) Interest capitalized 3 — — — 3 — 3 Other - net 9 — — — 9 — 9 Total Nonoperating Income (Expense) (16) — (5) — (21) — (21) Income (Loss) Before Income Tax $ (24) $ (56) $ 15 $ 17 $ (48) $ 576 $ 528 Three Months Ended June 30, 2020 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 225 $ 84 $ — $ — $ 309 $ — $ 309 CPA revenues — — 81 (81) — — — Mileage Plan other revenue 56 17 — — 73 — 73 Cargo and other 39 — — — 39 — 39 Total Operating Revenues 320 101 81 (81) 421 — 421 Operating Expenses Operating expenses, excluding fuel 746 210 68 (82) 942 (292) 650 Economic fuel 45 20 — — 65 (6) 59 Total Operating Expenses 791 230 68 (82) 1,007 (298) 709 Nonoperating Income (Expense) Interest income 11 — — (4) 7 — 7 Interest expense (18) — (5) 6 (17) — (17) Interest capitalized 1 — — — 1 — 1 Other - net 6 — — — 6 — 6 Total Nonoperating Income (Expense) — — (5) 2 (3) — (3) Income (Loss) Before Income Tax $ (471) $ (129) $ 8 $ 3 $ (589) $ 298 $ (291) Six Months Ended June 30, 2021 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,578 $ 433 $ — $ — $ 2,011 $ — $ 2,011 CPA revenues — — 215 (215) — — — Mileage Plan other revenue 182 30 — — 212 — 212 Cargo and other 99 — — 2 101 — 101 Total Operating Revenues 1,859 463 215 (213) 2,324 — 2,324 Operating Expenses Operating expenses, excluding fuel 1,877 551 179 (236) 2,371 (912) 1,459 Economic fuel 427 118 — — 545 (68) 477 Total Operating Expenses 2,304 669 179 (236) 2,916 (980) 1,936 Nonoperating Income (Expense) Interest income 13 — — — 13 — 13 Interest expense (61) — (10) — (71) — (71) Interest capitalized 6 — — — 6 — 6 Other - net 19 — — — 19 — 19 Total Nonoperating Income (Expense) (23) — (10) — (33) — (33) Income (Loss) Before Income Tax $ (468) $ (206) $ 26 $ 23 $ (625) $ 980 $ 355 Six Months Ended June 30, 2020 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,459 $ 331 $ — $ — $ 1,790 $ — $ 1,790 CPA revenues — — 186 (186) — — — Mileage Plan other revenue 154 28 — — 182 — 182 Cargo and other 83 — — 2 85 — 85 Total Operating Revenues 1,696 359 186 (184) 2,057 — 2,057 Operating Expenses Operating expenses, excluding fuel 1,905 479 160 (192) 2,352 (129) 2,223 Economic fuel 358 82 — — 440 3 443 Total Operating Expenses 2,263 561 160 (192) 2,792 (126) 2,666 Nonoperating Income (Expense) Interest income 25 — — (9) 16 — 16 Interest expense (30) — (10) 10 (30) — (30) Interest capitalized 4 — — — 4 — 4 Other - net 12 — — (1) 11 — 11 Total Nonoperating Income (Expense) 11 — (10) — 1 — 1 Income (Loss) Before Income Tax $ (556) $ (202) $ 16 $ 8 $ (734) $ 126 $ (608) (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): June 30, 2021 December 31, 2020 Mainline $ 19,920 $ 19,754 Horizon 1,251 1,170 Consolidating & Other (6,515) (6,878) Consolidated $ 14,656 $ 14,046 | |||
Revenues | $ 1,527 | $ 421 | $ 2,324 | $ 2,057 |
Income (Loss) Before Income Tax | 528 | (291) | 355 | (608) |
Nonoperating Income (Expense) | (21) | (3) | (33) | 1 |
Interest income | 6 | 7 | 13 | 16 |
Interest expense | (39) | (17) | (71) | (30) |
Interest Costs Capitalized | 3 | 1 | 6 | 4 |
Other | 9 | 6 | 19 | 11 |
Operating Expenses, Excluding Fuel | 704 | 650 | 1,459 | 2,223 |
Economic fuel | 274 | 59 | 477 | 443 |
Operating Expenses | $ 978 | $ 709 | $ 1,936 | $ 2,666 |
COVID-19 Pandemic, CARES Fundin
COVID-19 Pandemic, CARES Funding (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 14 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Apr. 29, 2021 | |
CARES Funds Received [Line Items] | |||||||
Total Expected Relief From PSP of CARES Act | $ 2,270 | ||||||
Adjustments to Additional Paid in Capital, Warrant Issued | 25 | ||||||
Total Unsecured Term Loan through PSP of CARES Act | 600 | ||||||
CARES Act Payroll Tax Relief | $ 21 | ||||||
ProceedsFromPayrollSupportProgramGrant | 1,645 | ||||||
PSPGrantRecognized | $ 503 | $ (362) | 914 | $ (362) | |||
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 | 626 | ||||||
Adjustments to Additional Paid in Capital, Warrant Issued | 16 | 9 | |||||
Total Unsecured Term Loan through PSP of CARES Act | 311 | 160 | |||||
Additional Relief from PSP of CARES Act | $ 80 | ||||||
ProceedsFromPayrollSupportProgramGrant | $ 892 | 457 | |||||
PSP Installments Received | $ 539 | ||||||
CARES PSP 3 [Member] | |||||||
CARES Funds Received [Line Items] | |||||||
Total Expected Relief From PSP of CARES Act | $ 585 | ||||||
Adjustments to Additional Paid in Capital, Warrant Issued | 7 | ||||||
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 | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | ||||||
Restructuring Charges | $ (23) | $ 11 | $ 0 | $ (12) | $ 0 | $ 220 |
Restructuring Reserve | $ 36 | 36 | 127 | |||
Payments for Restructuring | $ (79) | |||||
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Passenger Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,352 | $ 309 | $ 2,011 | $ 1,790 |
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 | 1,114 | 222 | 1,639 | 1,435 |
Passenger Revenue [Member] | Passenger ancillary revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 84 | 31 | 134 | 147 |
Passenger Revenue [Member] | Mileage Plan passenger revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 154 | 56 | 238 | 208 |
Passenger Revenue [Member] | Passenger [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,352 | 309 | 2,011 | 1,790 |
Mileage Plan Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 272 | 129 | 450 | 390 |
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 | 154 | 56 | 238 | 208 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 118 | 73 | 212 | 182 |
Cargo and Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 57 | 39 | 101 | 85 |
Cargo and Other Revenue [Member] | Cargo revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 34 | 28 | 61 | 52 |
Cargo and Other Revenue [Member] | Other revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 23 | $ 11 | $ 40 | $ 33 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Deferred Revenue Arrangement [Line Items] | |||||
Receivable | $ 567 | $ 567 | $ 480 | ||
Costs and Expenses | 978 | $ 709 | 1,936 | $ 2,666 | |
COVID-19 Credits Issued, Balance | 387 | 387 | |||
Mileage Plan Revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Receivable | 61 | 61 | $ 48 | ||
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Contract liability revenue recognized | (17) | (21) | |||
Passenger Revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Contract liability revenue recognized | $ 36 | $ 175 | $ 484 |
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, 2021 | Jun. 30, 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 | 324 | 313 |
Total Deferred Revenue balance at Sept 30 | 2,346 | 2,074 |
Passenger revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | (238) | (208) |
Mileage plan other revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | $ (17) | $ (21) |
FAIR VALUE MEASUREMENTS - FAIR
FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (Details) - Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 2,926 | $ 1,976 |
Assets, Fair Value Disclosure | 3,018 | 1,991 |
Derivative instruments, liabilities | 16 | 25 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 303 | 414 |
Assets, Fair Value Disclosure | 303 | 414 |
Derivative instruments, liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,623 | 1,562 |
Assets, Fair Value Disclosure | 2,715 | 1,577 |
Derivative instruments, liabilities | 16 | 25 |
Fuel hedge contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 92 | 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 | 92 | 15 |
Interest rate swaps agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, liabilities | 16 | 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 | 16 | 25 |
U.S. government and agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 298 | 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 | 298 | 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 | 5 | 7 |
Equity Funds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5 | 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 | 31 | 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 | 31 | 20 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 330 | 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 | 330 | 224 |
Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 253 | 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 | 253 | 290 |
Corporate notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1,943 | 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 | 1,943 | 978 |
Municipal securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 66 | 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 | $ 66 | $ 50 |
FAIR VALUE MEASUREMENTS - MATUR
FAIR VALUE MEASUREMENTS - MATURITIES FOR MARKETABLE SECURITIES (Details) $ in Millions | Jun. 30, 2021USD ($) |
Cost Basis | |
Due in one year or less | $ 1,538 |
Due after one year through five years | 1,280 |
Due after five years through 10 years | 88 |
Total | 2,906 |
Fair Value | |
Due in one year or less | 1,539 |
Due after one year through five years | 1,294 |
Due after five years through 10 years | 88 |
Total | $ 2,921 |
FAIR VALUE MEASUREMENTS - LONG-
FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 780 | |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,896 | $ 1,662 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,019 | $ 1,778 |
LONG-TERM DEBT - SCHEDULE OF LO
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Debt Issuance Costs, Net | $ (23) | $ (23) | $ (33) | |||
Total | 3,188 | 3,188 | 3,495 | |||
Less current portion | 869 | 869 | 1,138 | |||
Long-term debt, less current portion | $ 2,319 | $ 2,319 | $ 2,357 | |||
Weighted-average fixed-interest rate | 3.70% | 3.70% | 4.30% | |||
Weighted-average variable-interest rate | 1.60% | 1.60% | 1.90% | |||
Long-term debt payments | $ (681) | $ (125) | ||||
Proceeds from issuance of debt | 363 | $ 1,265 | ||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 8 | $ 8 | $ 7 | |||
Repayments of Lines of Credit | $ 363 | |||||
Debt, Weighted Average Interest Rate | 3.10% | 3.10% | ||||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheet (in millions): June 30, 2021 December 31, 2020 Fixed-rate notes payable due through 2029 $ 180 $ 198 Fixed-rate PSP notes payable due through 2031 600 290 Fixed-rate EETC payable due through 2025 & 2027 1,116 1,174 Variable-rate notes payable due through 2029 1,315 1,866 Less debt issuance costs and unamortized debt discount (23) (33) Total debt 3,188 3,495 Less current portion 869 1,138 Long-term debt, less current portion $ 2,319 $ 2,357 Weighted-average fixed-interest rate 3.7 % 4.3 % Weighted-average variable-interest rate 1.6 % 1.9 % Approximately $562 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at June 30, 2021, resulting in an effective weighted-average interest rate for the full debt portfolio of 3.1%. During the six months ended June 30, 2021, the Company issued $363 million of debt, comprised of $311 million of unsecured loans from the PSP and $54 million in proceeds from issuance of debt. Debt proceeds were offset by $681 million in debt payments. Included within total debt payments is the full repayment of the $135 million loan from the U.S. Treasury made available under the CARES Act and the $363 million outstanding balance on two credit facilities. The $600 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 were 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. In 2020, the Company drew $135 million under the agreement, which was 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. The full balance was repaid in the second quarter of 2021. In accordance with the related agreement, the facility terminated at the time of payment. Debt Maturity At June 30, 2021 long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2021 $ 227 2022 796 2023 334 2024 240 2025 261 Thereafter 1,353 Total $ 3,211 Bank Lines of Credit The Company has three credit facilities with availability totaling $486 million as of June 30, 2021, resulting from the second quarter 2021 repayment of $363 million. One of the credit facilities for $150 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 2024 and is secured by aircraft. These two facilities have variable interest rates based on LIBOR plus a specified margin. A third credit facility for $86 million expires in June 2022 and is secured by aircraft. The Company has secured letters of credit against the third facility, but has no plans to borrow using either of the other two facilities. 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 June 30, 2021. | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 486 | $ 486 | ||||
Fixed rate notes payable due through 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total | 180 | 180 | $ 198 | |||
Variable rate notes payable due through 2029 [Member] [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total | $ 1,315 | 1,315 | 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% | 1.00% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | ||||
US Treasury CARES Act Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Lines of Credit | $ 135 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,900 | $ 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 | $ 1,116 | 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 | 150 | 150 | ||||
PSP Notes Payable through 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Total | $ 600 | $ 600 | $ 290 | |||
CARES Act Unsecured Interest Rate Years 6 to 10 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | ||||
Variable Rate debt with interest rate swap [Member] | Interest rate swaps agreements [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 562 | $ 562 | ||||
Derivative, Notional Amount | $ 562 | $ 562 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - FUTURE PAYMENTS (Details) $ in Millions | Jun. 30, 2021USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 227 |
2022 | 796 |
2023 | 334 |
2024 | 240 |
2025 | 261 |
Thereafter | 1,353 |
Total | $ 3,211 |
LONG-TERM DEBT - LINE OF CREDIT
LONG-TERM DEBT - LINE OF CREDIT (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($)airline | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)airline | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Proceeds from Issuance of Secured Debt | $ 363 | $ 1,265 | ||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 8 | $ 8 | $ 7 | |||
Line of Credit Facility, Number of Credit Facilities | airline | 3 | 3 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 486 | $ 486 | ||||
Line of Credit Facility, Asset Restrictions | 500 | 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 | 150 | 150 | ||||
Credit Facility 2 [Member] | Secured by aircraft [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250 | 250 | ||||
Credit Facility 3 [Member] | Secured by aircraft [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 86 | 86 | ||||
US Treasury CARES Act Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,900 | $ 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 13 | $ 13 | $ 26 | $ 26 |
Interest cost | 14 | 19 | 28 | 38 |
Expected return on assets | 30 | 27 | 61 | 55 |
Recognized actuarial loss (gain) | (9) | (8) | (18) | (17) |
Wages and Benefits [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net pension expense | 13 | 13 | 26 | 26 |
Nonoperating Income (Expense) [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net pension expense | $ (7) | $ 0 | $ (15) | $ 0 |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | 6 Months Ended |
Jun. 30, 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 | 63 |
Options to Purchase Additional (in Aircraft) | airline | 39 |
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 | 12 |
Options to Purchase Additional (in Aircraft) | airline | 21 |
Aircraft Commitments [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 107 |
2022 | 1,458 |
2023 | 1,207 |
2024 | 291 |
2025 | 76 |
Thereafter | 12 |
Total | 3,151 |
Capacity Purchase Agreements [Member] | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | 82 |
2022 | 173 |
2023 | 178 |
2024 | 183 |
2025 | 188 |
Thereafter | 877 |
Total | 1,681 |
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 ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Equity [Abstract] | ||
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Related to marketable securities | $ 10 | $ 23 |
Related to employee benefit plans | 485 | 498 |
Related to interest rate derivatives | (12) | (19) |
Total | $ (487) | $ (494) |
SHAREHOLDERS' EQUITY , WARRANT
SHAREHOLDERS' EQUITY , WARRANT ACTIVITY (Details) | Jun. 30, 2021$ / sharesshares |
Class of Warrant or Right [Line Items] | |
Class of Warrant or Right, Outstanding | 1,882,518 |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 539,508 |
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 | $ / shares | $ 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 | $ / shares | $ 31.61 |
PSP 2 Warrants | |
Class of Warrant or Right [Line Items] | |
Class of Warrant or Right, Outstanding | 305,499 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 52.25 |
PSP 3 Warrants | |
Class of Warrant or Right [Line Items] | |
Class of Warrant or Right, Outstanding | 221,812 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 66.39 |
OPERATING SEGMENT INFORMATION_2
OPERATING SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Revenues | ||||
Total Operating Revenues | $ 1,527 | $ 421 | $ 2,324 | $ 2,057 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 704 | 650 | 1,459 | 2,223 |
Economic fuel | 274 | 59 | 477 | 443 |
Total Operating Expenses | 978 | 709 | 1,936 | 2,666 |
Nonoperating Income (Expense) | ||||
Interest income | 6 | 7 | 13 | 16 |
Interest expense | (39) | (17) | (71) | (30) |
Interest Costs Capitalized | 3 | 1 | 6 | 4 |
Other | 9 | 6 | 19 | 11 |
Nonoperating Income (Expense) Total | (21) | (3) | (33) | 1 |
Income (loss) before income tax | 528 | (291) | 355 | (608) |
Costs and Expenses, Total | 978 | 709 | 1,936 | 2,666 |
Interest Costs Incurred | 39 | 17 | 71 | 30 |
Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 1,527 | 421 | 2,324 | 2,057 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 1,234 | 942 | 2,371 | 2,352 |
Economic fuel | 320 | 65 | 545 | 440 |
Total Operating Expenses | 1,554 | 1,007 | 2,916 | 2,792 |
Nonoperating Income (Expense) | ||||
Interest income | 6 | 7 | 13 | 16 |
Interest expense | (39) | (17) | (71) | (30) |
Interest Costs Capitalized | 3 | 1 | 6 | 4 |
Other | 9 | 6 | 19 | 11 |
Nonoperating Income (Expense) Total | (21) | (3) | (33) | 1 |
Income (loss) before income tax | (48) | (589) | (625) | (734) |
Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 1,229 | 320 | 1,859 | 1,696 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 984 | 746 | 1,877 | 1,905 |
Economic fuel | 253 | 45 | 427 | 358 |
Total Operating Expenses | 1,237 | 791 | 2,304 | 2,263 |
Nonoperating Income (Expense) | ||||
Interest income | 6 | 11 | 13 | 25 |
Interest expense | (34) | (18) | (61) | (30) |
Interest Costs Capitalized | 3 | 1 | 6 | 4 |
Other | 9 | 6 | 19 | 12 |
Nonoperating Income (Expense) Total | (16) | 0 | (23) | 11 |
Income (loss) before income tax | (24) | (471) | (468) | (556) |
Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 296 | 101 | 463 | 359 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 286 | 210 | 551 | 479 |
Economic fuel | 66 | 20 | 118 | 82 |
Total Operating Expenses | 352 | 230 | 669 | 561 |
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 | (56) | (129) | (206) | (202) |
Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 111 | 81 | 215 | 186 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 91 | 68 | 179 | 160 |
Economic fuel | 0 | 0 | 0 | 0 |
Total Operating Expenses | 91 | 68 | 179 | 160 |
Nonoperating Income (Expense) | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | (5) | (5) | (10) | (10) |
Interest Costs Capitalized | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) Total | (5) | (5) | (10) | (10) |
Income (loss) before income tax | 15 | 8 | 26 | 16 |
Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | (109) | (81) | (213) | (184) |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | (127) | (82) | (236) | (192) |
Economic fuel | 1 | 0 | 0 | 0 |
Total Operating Expenses | (126) | (82) | (236) | (192) |
Nonoperating Income (Expense) | ||||
Interest income | 0 | (4) | 0 | (9) |
Interest expense | 0 | (6) | 0 | (10) |
Interest Costs Capitalized | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | (1) |
Nonoperating Income (Expense) Total | 0 | 2 | 0 | 0 |
Income (loss) before income tax | 17 | 3 | 23 | 8 |
Special Charges [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | (530) | (292) | (912) | (129) |
Economic fuel | (46) | (6) | (68) | 3 |
Total Operating Expenses | (576) | (298) | (980) | (126) |
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 | 576 | 298 | 980 | 126 |
Passenger [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 1,352 | 309 | 2,011 | 1,790 |
Passenger [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 1,352 | 309 | 2,011 | 1,790 |
Passenger [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 1,072 | 225 | 1,578 | 1,459 |
Passenger [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 280 | 84 | 433 | 331 |
Passenger [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Passenger [Member] | Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Passenger [Member] | Special 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 | 111 | 81 | 215 | 186 |
Capacity Purchase Agreements [Member] | Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | (111) | (81) | (215) | (186) |
Capacity Purchase Agreements [Member] | Special 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 | 73 | 212 | 182 |
Mileage plan other revenue [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 118 | 73 | 212 | 182 |
Mileage plan other revenue [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 102 | 56 | 182 | 154 |
Mileage plan other revenue [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 16 | 17 | 30 | 28 |
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] | Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Mileage plan other revenue [Member] | Special 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 | 57 | 39 | 101 | 85 |
Cargo and Freight [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 57 | 39 | 101 | 85 |
Cargo and Freight [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 55 | 39 | 99 | 83 |
Cargo and Freight [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Cargo and Freight [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 0 | 0 | 0 | 0 |
Cargo and Freight [Member] | Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from contract with customer, including assessed taxes | 2 | 0 | 2 | 2 |
Cargo and Freight [Member] | Special 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, 2021 | Dec. 31, 2020 |
Total assets | $ 14,656 | $ 14,046 |
Alaska Airlines [Member] | ||
Total assets | 19,920 | 19,754 |
Horizon [Member] | ||
Total assets | 1,251 | 1,170 |
Consolidating and Other [Member] | ||
Total assets | $ (6,515) | $ (6,878) |