COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
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, $0.01 par value | |
Security Exchange Name | NYSE | |
Trading Symbol | ALK | |
Entity Address, Address Line One | 19300 International Boulevard, | |
Entity Address, City or Town | Seattle, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98188 | |
City Area Code | (206) | |
Local Phone Number | 392-5040 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 126,091,824 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000766421 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 628 | $ 470 |
Marketable securities | 2,262 | 2,646 |
Total cash and marketable securities | 2,890 | 3,116 |
Receivables - net | 658 | 546 |
Inventories and supplies - net | 78 | 62 |
Prepaid expenses, assets held-for-sale, and other current assets | 348 | 196 |
Total Current Assets | 3,974 | 3,920 |
Property and Equipment | ||
Aircraft and other flight equipment | 8,244 | 8,127 |
Other property and equipment | 1,529 | 1,489 |
Deposits for future flight equipment | 283 | 384 |
Property and Equipment Total | 10,056 | 10,000 |
Less accumulated depreciation and amortization | 3,814 | 3,862 |
Total Property and Equipment - Net | 6,242 | 6,138 |
Operating Lease, Right-of-Use Asset | 1,541 | 1,453 |
Goodwill | 2,042 | 2,044 |
Other noncurrent assets | 411 | 396 |
Other Assets | 3,994 | 3,893 |
Total Assets | 14,210 | 13,951 |
Current Liabilities | ||
Accounts payable | 299 | 200 |
Accrued wages, vacation and payroll taxes | 367 | 457 |
Other accrued liabilities | 659 | 625 |
Operating Lease, Liability, Current | 272 | 268 |
Current portion of long-term debt | 292 | 366 |
Total Current Liabilities | 4,570 | 3,991 |
Long-Term Debt, Net of Current Portion | 2,078 | 2,173 |
Noncurrent Liabilities | ||
Operating Lease, Liability, Noncurrent | 1,357 | 1,279 |
Deferred Income Tax Liabilities, Net | 509 | 578 |
Deferred revenue, noncurrent | 1,394 | 1,446 |
Obligation for pension and postretirement medical benefits | 302 | 305 |
Other liabilities | 363 | 378 |
Other Liabilities and Credits Totals | 3,925 | 3,986 |
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 | 503 | 494 |
Treasury stock (common), at cost: 2020 - 9,349,944 shares; 2020 - 9,349,944 shares | (674) | (674) |
Accumulated other comprehensive loss | (292) | (262) |
Retained earnings | 4,099 | 4,242 |
Total Shareholders' Equity | 3,637 | 3,801 |
Total Liabilities and Shareholders' Equity | 14,210 | 13,951 |
Mileage Plan Revenue [Member] | ||
Current Liabilities | ||
Contract with Customer, Liability, Current | 1,038 | 912 |
Contract with Customer, Liability, Current | 1,038 | 912 |
Passenger Revenue [Member] | ||
Current Liabilities | ||
Contract with Customer, Liability, Current | 1,643 | 1,163 |
Contract with Customer, Liability, Current | $ 1,643 | $ 1,163 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 135,437,808 | 135,255,808 |
Common stock, shares outstanding (shares) | 126,087,864 | 125,905,864 |
Treasury Stock, Shares (shares) | 9,349,944 | 9,349,944 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,681 | $ 797 |
Operating Expenses | ||
Wages and benefits | 606 | 493 |
Variable incentive pay | 36 | 33 |
PSPGrantRecognized | 0 | (411) |
Aircraft fuel, including hedging gains and losses | 347 | 203 |
Aircraft maintenance | 135 | 81 |
Aircraft rent | 73 | 62 |
Landing fees and other rentals | 138 | 129 |
Contracted services | 78 | 51 |
Selling expenses | 58 | 33 |
Depreciation and amortization | 102 | 97 |
Food and beverage service | 41 | 23 |
Third-party regional carrier expense | 42 | 30 |
Other | 152 | 105 |
Special items - Impairment charges and other | 75 | 18 |
Restructuring Charges | 0 | 11 |
Operating Expenses | 1,883 | 958 |
Costs and Expenses, Total | 1,883 | 958 |
Operating Income (Loss) | (202) | (161) |
Nonoperating Income (Expense) | ||
Interest income | 7 | 7 |
Interest expense | (27) | (32) |
Interest capitalized | 2 | 3 |
Other—net | 14 | 10 |
Nonoperating Income (Expense) Total | (4) | (12) |
Income (Loss) Before Income Tax | (206) | (173) |
Income tax (benefit) expense | (63) | (42) |
Net Income (Loss) | $ (143) | $ (131) |
Basic Earnings Per Share (usd per share) | $ (1.14) | $ (1.05) |
Diluted Earnings Per Share (usd per share) | $ (1.14) | $ (1.05) |
Shares used for computation: | ||
Basic shares (shares) | 125,984,000 | 124,299,000 |
Diluted shares (shares) | 125,984,000 | 124,299,000 |
Passenger [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,511 | $ 659 |
Mileage plan other revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 112 | 94 |
Cargo and Freight [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 58 | 44 |
Passenger Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,511 | 659 |
Passenger Revenue [Member] | Passenger [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,511 | 659 |
Mileage Plan Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 300 | 178 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 112 | 94 |
Cargo and Other Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 58 | 44 |
Cargo and Other Revenue [Member] | Cargo and Freight [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 58 | $ 44 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ (143) | $ (131) |
Related to marketable securities: | ||
Total | (40) | (12) |
Related to employee benefit plans: | ||
Total | 1 | 6 |
Related to interest rate derivative instruments: | ||
Total | 9 | 6 |
Comprehensive Income (Loss) | $ (173) | $ (131) |
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) | 124.217 | |||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2020 | $ 2,988 | $ 1 | $ 391 | $ (674) | $ (494) | $ 3,764 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (131) | (131) | ||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 12 | 12 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (2) | (2) | ||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2021 | 2,875 | $ 1 | 409 | (674) | (494) | 3,633 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 8 | 8 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.225 | |||||
Common stock, shares outstanding (shares) | 124.442 | |||||
Common stock, shares outstanding (shares) | 125,905,864 | 125.906 | ||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2021 | $ 3,801 | $ 1 | 494 | (674) | (262) | 4,242 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (143) | (143) | ||||
Other Comprehensive Income (Loss), Net of Tax | (30) | (30) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 13 | 13 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (4) | (4) | ||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2022 | $ 3,637 | $ 1 | $ 503 | $ (674) | $ (292) | $ 4,099 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.182 | |||||
Common stock, shares outstanding (shares) | 126,087,864 | 126.088 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net Income | $ (143) | $ (131) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 102 | 97 |
Stock-based compensation and other | 5 | 12 |
Special items - Impairment charges and other | 75 | 18 |
Restructuring Charges | 0 | 11 |
Changes in certain assets and liabilities: | ||
Changes in deferred tax provision | (58) | 39 |
Increase (Decrease) in Accounts Receivable | (112) | (37) |
Increase (Decrease) in Contract with Customer, Liability | 480 | 224 |
Increase in deferred revenue | 74 | 48 |
Other - net | (136) | (36) |
Net cash provided by operating activities | 287 | 167 |
Property and equipment additions: | ||
Aircraft and aircraft purchase deposits | (207) | (3) |
Other flight equipment | (24) | (11) |
Other property and equipment | (57) | (13) |
Total property and equipment additions, including capitalized interest | (288) | (27) |
Purchases of marketable securities | (552) | (1,243) |
Sales and maturities of marketable securities | 880 | 732 |
Other investing activities | (1) | (5) |
Net cash used in investing activities | 39 | (543) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 189 |
Long-term debt payments | (170) | (115) |
Other financing activities | 2 | 8 |
Net cash provided by (used in) financing activities | (168) | 82 |
Net increase in cash, cash equivalents, and restricted cash | 158 | (294) |
Cash, cash equivalents, and restricted cash at beginning of year | 494 | 1,386 |
Cash, cash equivalents, and restricted cash at end of the period | 652 | 1,092 |
Cash paid during the period for: | ||
Interest (net of amount capitalized) | 35 | 50 |
Income taxes | 0 | |
Non-cash transactions: | ||
Right-of-use assets acquired through operating leases | 158 | 75 |
Reconciliation of cash, cash equivalents, and restricted cash at end of the period | ||
Cash and cash equivalents | 628 | 1,076 |
Restricted cash included in Prepaid expenses, assets held-for-sale and other current assets | 24 | 16 |
Total cash, cash equivalents, and restricted cash at end of the period | $ 652 | $ 1,092 |
GENERAL AND SUMMARY OF SIGNIFIC
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021. In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of March 31, 2022 and the results of operations for the three months ended March 31, 2022 and 2021. Such adjustments were of a normal recurring nature. In preparing these statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, as well as the reported amounts of revenues and expenses, including impairment charges. Due to the impacts of the coronavirus (COVID-19) pandemic on the Company's business, these estimates and assumptions require more judgment than they would otherwise given the uncertainty of the future demand for air travel, among other considerations. Further, due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, changes in global economic conditions, changes in the competitive environment and other factors, operating results for the three months ended March 31, 2022 are not necessarily indicative of operating results for the entire year. |
FLEET TRANSITION
FLEET TRANSITION | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fleet Transition and Related Activities Disclosure | FLEET TRANSITION In the first quarter of 2022, the Company announced plans to accelerate the transition of mainline operations to an all-Boeing 737 fleet. It also announced new plans to transition its regional operations to an all-Embraer fleet, retiring the Q400 fleet. Under these plans, Alaska will accelerate the retirement of its 30 operating Airbus A320 aircraft, with all expected to exit the fleet by early 2023. Alaska also operates ten A321neo aircraft, and is evaluating options to remove them from its fleet by the end of 2023, subject to agreement with counterparties. Also by the end of 2023, Horizon will exit its Q400 fleet, which includes 25 owned and 7 leased aircraft in operation at March 31, 2022. Valuation of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes indicate that the total carrying amount of an asset or asset group may not be recoverable. The decisions made by the Company to accelerate the retirement of the A320 and Q400 aircraft represented a significant adverse change in the extent in which those long-lived asset group would be used and an expectation that each asset group would be sold or otherwise disposed of significantly before the end of their previously estimated useful lives. Indicators of impairment were not present for the A321neo aircraft as the majority of these aircraft have contractual lease return dates through 2029 to 2031, and are high-demand assets given their relative age and desirable technology. For the purposes of recoverability testing, assets are grouped at the individual fleet level, which is the lowest level for which identifiable cash flows are available. The Company performed recoverability tests for the A320 and Q400 fleets, comparing the sum of estimated undiscounted future cash flows expected to be directly generated by each asset group to the asset group's carrying value. Future cash flows were estimated utilizing a combination of historical data, forecasted results, and anticipated use of the aircraft as of March 31, 2022. The analysis indicated the A320 fleet was recoverable and no impairment measurement was required. However, the Company will adjust the useful lives of the A320 aircraft and related assets to correspond with the anticipated cease-use date. The analysis indicated the Q400 fleet was not recoverable, and impairment measurement was required. The Company evaluated the fair market value for the Q400 fleet using available market price information with adjustments based on quantitative and qualitative considerations. Based on this fair market value, the Company recorded an impairment charge of $70 million, reflecting the amount by which carrying value exceeded fair value of the owned Q400 aircraft. This amount is included within the "Special items - fleet transition and related charges" line within the consolidated statement of operations. In conjunction with the impairment, the Company adjusted the useful lives of Q400 aircraft and related assets to correspond with the anticipated cease-use date. The Company will continue to evaluate the need for further impairment or adjustments for owned and leased long-lived assets as fleet decisions evolve. Other Special Items In addition to the impairment described above, the Company recorded $5 million incremental expense to "Special items - fleet transition and related charges" within the condensed consolidated statement of operations. This includes adjustments related to the outstanding accrual for costs to return leased aircraft and a write-down of right of use assets for two A320 aircraft for which return to service work was initiated but was subsequently ceased. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2022 | |
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, and certain revenue from the frequent flyer program. Mileage Plan other revenue includes brand and marketing revenue from the 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. In the first quarter of 2022, the Company amended its Mileage Plan co-branded credit card agreement with Bank of America. The amendment extended the term of the agreement into 2030 and resulted in modifications to the separately identifiable performance obligations. The Company disaggregates revenue by segment in Note 9. The level of detail within the Company’s condensed consolidated statements of operations, segment disclosures, and in this footnote depict the nature, amount, timing and uncertainty of revenue and how cash flows are affected by economic and other factors. Passenger Ticket and Ancillary Services Revenue Passenger revenue recognized in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2022 2021 Passenger ticket revenue, including ticket breakage, net of taxes and fees $ 1,232 $ 525 Passenger ancillary revenue 91 50 Mileage Plan passenger revenue 188 84 Total Passenger revenue $ 1,511 $ 659 Mileage Plan Loyalty Program Mileage Plan revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2022 2021 Passenger revenue $ 188 $ 84 Mileage Plan other revenue 112 94 Total Mileage Plan revenue $ 300 $ 178 Cargo and Other Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2022 2021 Cargo revenue $ 29 $ 27 Other revenue 29 17 Total Cargo and other revenue $ 58 $ 44 Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $390 million and $136 million from the prior year-end air traffic liability balance for the three months ended March 31, 2022 and 2021. Mileage Plan assets and liabilities The Company records a receivable for amounts due from the affinity card partner and from other partners as mileage credits are sold until the payments are collected. The Company had $108 million of such receivables as of March 31, 2022 and $64 million as of December 31, 2021. As demand for air travel remains unpredictable, the timing of recognition of mileage credits may differ from current assumptions. The table below presents a roll forward of the total frequent flyer liability (in millions): Three Months Ended March 31, 2022 2021 Total Deferred revenue balance at January 1 $ 2,358 $ 2,277 Travel miles and companion certificate redemption - Passenger revenue (176) (84) Miles redeemed on partner airlines - Other revenue (9) (4) Increase in liability for mileage credits issued 259 136 Total Deferred revenue balance at March 31 $ 2,432 $ 2,325 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In determining fair value, there is a three-level hierarchy based on the reliability of the inputs used. Level 1 refers to fair values based on quoted prices in active markets for identical assets or liabilities. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 refers to fair values estimated using significant unobservable inputs. Fair Value of Financial Instruments on a Recurring Basis As of March 31, 2022, total cost basis for all marketable securities was $2.3 billion. In the three months ended March 31, 2022, fair value of marketable securities declined by $57 million primarily due to changes in interest rates. Management does not believe any unrealized losses are the result of expected credit losses based on its evaluation of available information as of March 31, 2022. Fair values of financial instruments on the condensed consolidated balance sheet (in millions): March 31, 2022 December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 416 $ — $ 416 $ 331 $ — $ 331 Equity mutual funds 6 — 6 6 — 6 Foreign government bonds — 29 29 — 38 38 Asset-backed securities — 244 244 — 311 311 Mortgage-backed securities — 190 190 — 232 232 Corporate notes and bonds — 1,314 1,314 — 1,663 1,663 Municipal securities — 63 63 — 65 65 Total Marketable securities 422 1,840 2,262 337 2,309 2,646 Derivative instruments Fuel hedge - call options — 203 203 — 81 81 Interest rate swap agreements — 6 6 — — — Total Assets $ 422 $ 2,049 $ 2,471 $ 337 $ 2,390 $ 2,727 Liabilities Derivative instruments Interest rate swap agreements — (2) (2) — (9) (9) Total Liabilities $ — $ (2) $ (2) $ — $ (9) $ (9) 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 Maturities for marketable securities (in millions): March 31, 2022 Cost Basis Fair Value Due in one year or less $ 628 $ 626 Due after one year through five years 1,651 1,597 Due after five years 34 33 Total $ 2,313 $ 2,256 As of March 31, 2022, $6 million of total marketable securities do not have a maturity date and are therefore excluded from the total fair value of maturities for marketable securities above. Fair Value of Other Financial Instruments The Company uses the following methods and assumptions to determine the fair value of financial instruments that are not recognized at fair value as described below. Cash, Cash Equivalents, and Restricted Cash : Cash equivalents consist of highly liquid investments with original maturities of three months or less, such as money market funds, commercial paper and certificates of deposit. They are carried at cost, which approximates fair value. The Company's restricted cash balances are primarily used to guarantee various letters of credit, self-insurance programs or other contractual rights. Restricted cash consists of highly liquid securities with original maturities of three months or less. They are carried at cost, which approximates fair value. Debt : To estimate the fair value of all fixed-rate debt as of March 31, 2022, 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 $750 million of other fixed-rate debt, including PSP notes payable, is classified as Level 3, as it is not actively traded and is valued using discounted cash flows which is an unobservable input. Fixed-rate debt on the condensed consolidated balance sheet and the estimated fair value of long-term fixed-rate debt is as follows (in millions): March 31, 2022 December 31, 2021 Total fixed-rate debt $ 1,752 $ 1,821 Estimated fair value $ 1,770 $ 1,919 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheet (in millions): March 31, 2022 December 31, 2021 Fixed-rate notes payable due through 2029 $ 150 $ 163 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 1,002 1,058 Variable-rate notes payable due through 2029 636 738 Less debt issuance costs (18) (20) Total debt 2,370 2,539 Less current portion 292 366 Long-term debt, less current portion $ 2,078 $ 2,173 Weighted-average fixed-interest rate 3.6 % 3.7 % Weighted-average variable-interest rate 1.7 % 1.3 % Approximately $396 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at March 31, 2022, resulting in an effective weighted-average interest rate for the full debt portfolio of 3.3%. During the three months ended March 31, 2022, the Company made scheduled debt payments of $170 million. Debt Maturity At March 31, 2022, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2022 $ 201 2023 334 2024 240 2025 261 2026 176 Thereafter 1,176 Total $ 2,388 Bank Lines of Credit Alaska has three credit facilities totaling $486 million as of March 31, 2022. One of the credit facilities for $150 million expires in March 2025 and is secured by certain accounts receivable, spare engines, spare parts and ground service equipment. A second credit facility for $250 million expires in June 2024 and is secured by aircraft. Both 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. Alaska 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. Alaska was in compliance with this covenant at March 31, 2022. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Net periodic benefit costs for qualified defined-benefit plans include the following (in millions): Three Months Ended March 31, 2022 2021 Service cost $ 11 $ 13 Pension expense included in Wages and benefits 11 13 Interest cost 16 14 Expected return on assets (32) (31) Recognized actuarial loss 2 9 Pension expense included in Nonoperating Income (Expense) $ (14) $ (8) |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS AND CONTINGENCIES Future minimum payments for commitments as of March 31, 2022 (in millions): Aircraft Commitments (a) Capacity Purchase Agreements (b) Remainder of 2022 $ 1,159 $ 133 2023 1,781 182 2024 414 188 2025 111 194 2026 47 195 Thereafter 275 740 Total $ 3,787 $ 1,632 (a) Includes non-cancelable contractual commitments for aircraft and engines, aircraft maintenance and parts management. Contractual commitments do not reflect the impact of the impending fleet transition. Option deliveries are excluded from minimum commitments until exercise. (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. In March 2022, Alaska amended its aircraft purchase agreement with Boeing, adding the 737-8 and 737-10 models to its existing order book of 737-9 aircraft. The amended agreement also includes options to purchase additional aircraft with deliveries between 2024 and 2026. Details are outlined in the table below. Horizon also has commitments to purchase 12 Embraer E175 aircraft with deliveries between 2022 and 2025. Future minimum contractual payments for these aircraft reflect the expected delivery timing, but are also subject to change. Firm Orders Options Total Aircraft Type 2022-2025 2024-2026 2022 - 2026 Boeing 737-8 10 — 10 Boeing 737-9 51 11 62 Boeing 737-10 6 41 47 Embraer E175 12 — 12 Total 79 52 131 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, again without awarding injunctive relief against Alaska. 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. Alaska is seeking a conclusive U.S. Supreme Court ruling that the California laws on which the judgment is based are invalid as applied to airlines pursuant to the U.S. Constitution and provisions of federal law 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. If appeal efforts are unsuccessful, compliance with California and other states' laws may have an adverse impact on the Company's operations and financial position. Like other U.S. airlines, Alaska and Horizon are involved in other litigation around the application of state and local employment laws. 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 | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Common Stock Repurchase In August 2015, the Board of Directors authorized a $1 billion share repurchase program. The Company repurchased 7.6 million shares for $544 million under this program. In March 2020, subject to restrictions under the Coronavirus Aid, Relief, and Economic Securities (CARES) Act, the Company suspended the share repurchase program indefinitely. CARES Act Warrant Issuances As additional taxpayer protection required under the Payroll Support Program (PSP) under the CARES Act, the Company granted the Treasury a total of 1,455,438 warrants to purchase ALK common stock in 2020 and 2021. An additional 427,080 warrants were issued in conjunction with a draw on the CARES Act Loan in 2020. These warrants are non-voting, freely transferable, may be settled as net shares or in cash at the Company's option, and have a five-year term. The value of the warrants was estimated using a Black-Scholes option pricing model. The total fair value of all outstanding warrants was $30 million, recorded in stockholders' equity at issuance. Total warrants outstanding are as follows as of March 31, 2022: 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 Outstanding March 31, 2022 1,882,518 Accumulated other comprehensive loss Components of accumulated other comprehensive loss, net of tax (in millions): Marketable Securities Employee Benefit Plan Interest Rate Derivatives Total Balance at December 31, 2021, net of tax effect of $83 $ (4) $ (252) $ (6) $ (262) Reclassifications into earnings, net of tax impact of $0 2 1 — 3 Change in value, net of tax impact of $10 (42) — 9 (33) Balance at March 31, 2022, net of tax effect of $93 $ (44) $ (251) $ 3 $ (292) Balance at December 31, 2020, net of tax effect of $160 $ 23 $ (498) $ (19) $ (494) Reclassifications into earnings, net of tax impact of $2 (4) 6 — (2) Change in value, net of tax impact of $(2) (8) — 6 2 Balance at March 31, 2021, net of tax effect of $160 $ 11 $ (492) $ (13) $ (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, restricted stock units, and warrants, 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 months ended March 31, 2022 and March 31, 2021, anti-dilutive shares excluded from the calculation of EPS were not material. |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
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 and 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, Costa Rica, and Belize. • Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under a CPA. This segment includes the actual revenues and expenses associated with regional flying, as well as an allocation of corporate overhead incurred by Air Group on behalf of the regional operations. • Horizon - includes the capacity sold to Alaska under CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs and maintenance costs. The CODM makes resource allocation decisions for these reporting segments based on flight profitability data, aircraft type, route economics and other financial information. The "Consolidating and Other" column reflects Air Group parent company activity, McGee Air Services, consolidating entries and other immaterial business units of the company. The “Air Group Adjusted” column represents a non-GAAP measure that is used by the Company's CODM to evaluate performance and allocate resources. Adjustments are further explained below in reconciling to consolidated GAAP results. Operating segment information is as follows (in millions): Three Months Ended March 31, 2022 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,243 $ 268 $ — $ — $ 1,511 $ — $ 1,511 CPA revenues — — 94 (94) — — — Mileage Plan other revenue 100 12 — — 112 — 112 Cargo and other 57 — — 1 58 — 58 Total Operating Revenues 1,400 280 94 (93) 1,681 — 1,681 Operating Expenses Operating expenses, excluding fuel 1,194 262 99 (94) 1,461 75 1,536 Fuel expense 381 73 — — 454 (107) 347 Total Operating Expenses 1,575 335 99 (94) 1,915 (32) 1,883 Non-operating Income (Expense) 1 — (5) — (4) — (4) Income (Loss) Before Income Tax $ (174) $ (55) $ (10) $ 1 $ (238) $ 32 $ (206) Three Months Ended March 31, 2021 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 506 $ 153 $ — $ — $ 659 $ — $ 659 CPA revenues — — 104 (104) — — — Mileage Plan other revenue 80 14 — — 94 — 94 Cargo and other 44 — — — 44 — 44 Total Operating Revenues 630 167 104 (104) 797 — 797 Operating Expenses Operating expenses, excluding fuel 893 265 88 (109) 1,137 (382) 755 Fuel expense 174 52 — (1) 225 (22) 203 Total Operating Expenses 1,067 317 88 (110) 1,362 (404) 958 Non-operating Income (Expense) (7) — (5) — (12) — (12) Income (Loss) Before Income Tax $ (444) $ (150) $ 11 $ 6 $ (577) $ 404 $ (173) (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. (c) Includes Payroll Support Program wage offsets, special items and mark-to-market fuel hedge accounting adjustments. |
GENERAL AND SUMMARY OF SIGNIF_2
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021. In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of March 31, 2022 and the results of operations for the three months ended March 31, 2022 and 2021. Such adjustments were of a normal recurring nature. In preparing these statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, as well as the reported amounts of revenues and expenses, including impairment charges. Due to the impacts of the coronavirus (COVID-19) pandemic on the Company's business, these estimates and assumptions require more judgment than they would otherwise given the uncertainty of the future demand for air travel, among other considerations. Further, due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, changes in global economic conditions, changes in the competitive environment and other factors, operating results for the three months ended March 31, 2022 are not necessarily indicative of operating results for the entire year. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Passenger revenue recognized in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2022 2021 Passenger ticket revenue, including ticket breakage, net of taxes and fees $ 1,232 $ 525 Passenger ancillary revenue 91 50 Mileage Plan passenger revenue 188 84 Total Passenger revenue $ 1,511 $ 659 Mileage Plan revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2022 2021 Passenger revenue $ 188 $ 84 Mileage Plan other revenue 112 94 Total Mileage Plan revenue $ 300 $ 178 Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2022 2021 Cargo revenue $ 29 $ 27 Other revenue 29 17 Total Cargo and other revenue $ 58 $ 44 |
Contract with Customer Liabilities | The table below presents a roll forward of the total frequent flyer liability (in millions): Three Months Ended March 31, 2022 2021 Total Deferred revenue balance at January 1 $ 2,358 $ 2,277 Travel miles and companion certificate redemption - Passenger revenue (176) (84) Miles redeemed on partner airlines - Other revenue (9) (4) Increase in liability for mileage credits issued 259 136 Total Deferred revenue balance at March 31 $ 2,432 $ 2,325 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Investments Classified by Contractual Maturity Date | Maturities for marketable securities (in millions): March 31, 2022 Cost Basis Fair Value Due in one year or less $ 628 $ 626 Due after one year through five years 1,651 1,597 Due after five years 34 33 Total $ 2,313 $ 2,256 As of March 31, 2022, $6 million of total marketable securities do not have a maturity date and are therefore excluded from the total fair value of maturities for marketable securities above. |
Fair Value, by Balance Sheet Grouping | Fair values of financial instruments on the condensed consolidated balance sheet (in millions): March 31, 2022 December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 416 $ — $ 416 $ 331 $ — $ 331 Equity mutual funds 6 — 6 6 — 6 Foreign government bonds — 29 29 — 38 38 Asset-backed securities — 244 244 — 311 311 Mortgage-backed securities — 190 190 — 232 232 Corporate notes and bonds — 1,314 1,314 — 1,663 1,663 Municipal securities — 63 63 — 65 65 Total Marketable securities 422 1,840 2,262 337 2,309 2,646 Derivative instruments Fuel hedge - call options — 203 203 — 81 81 Interest rate swap agreements — 6 6 — — — Total Assets $ 422 $ 2,049 $ 2,471 $ 337 $ 2,390 $ 2,727 Liabilities Derivative instruments Interest rate swap agreements — (2) (2) — (9) (9) Total Liabilities $ — $ (2) $ (2) $ — $ (9) $ (9) Fixed-rate debt on the condensed consolidated balance sheet and the estimated fair value of long-term fixed-rate debt is as follows (in millions): March 31, 2022 December 31, 2021 Total fixed-rate debt $ 1,752 $ 1,821 Estimated fair value $ 1,770 $ 1,919 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt obligations on the condensed consolidated balance sheet (in millions): March 31, 2022 December 31, 2021 Fixed-rate notes payable due through 2029 $ 150 $ 163 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 1,002 1,058 Variable-rate notes payable due through 2029 636 738 Less debt issuance costs (18) (20) Total debt 2,370 2,539 Less current portion 292 366 Long-term debt, less current portion $ 2,078 $ 2,173 Weighted-average fixed-interest rate 3.6 % 3.7 % Weighted-average variable-interest rate 1.7 % 1.3 % |
Schedule of Maturities of Long-term Debt | At March 31, 2022, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2022 $ 201 2023 334 2024 240 2025 261 2026 176 Thereafter 1,176 Total $ 2,388 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net periodic benefit costs for qualified defined-benefit plans include the following (in millions): Three Months Ended March 31, 2022 2021 Service cost $ 11 $ 13 Pension expense included in Wages and benefits 11 13 Interest cost 16 14 Expected return on assets (32) (31) Recognized actuarial loss 2 9 Pension expense included in Nonoperating Income (Expense) $ (14) $ (8) |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases and Unrecorded Unconditional Purchase Obligtaions | Future minimum payments for commitments as of March 31, 2022 (in millions): Aircraft Commitments (a) Capacity Purchase Agreements (b) Remainder of 2022 $ 1,159 $ 133 2023 1,781 182 2024 414 188 2025 111 194 2026 47 195 Thereafter 275 740 Total $ 3,787 $ 1,632 (a) Includes non-cancelable contractual commitments for aircraft and engines, aircraft maintenance and parts management. Contractual commitments do not reflect the impact of the impending fleet transition. Option deliveries are excluded from minimum commitments until exercise. |
Schedule of Future Aircraft Delivery | Future minimum contractual payments for these aircraft reflect the expected delivery timing, but are also subject to change. Firm Orders Options Total Aircraft Type 2022-2025 2024-2026 2022 - 2026 Boeing 737-8 10 — 10 Boeing 737-9 51 11 62 Boeing 737-10 6 41 47 Embraer E175 12 — 12 Total 79 52 131 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive loss, net of tax (in millions): Marketable Securities Employee Benefit Plan Interest Rate Derivatives Total Balance at December 31, 2021, net of tax effect of $83 $ (4) $ (252) $ (6) $ (262) Reclassifications into earnings, net of tax impact of $0 2 1 — 3 Change in value, net of tax impact of $10 (42) — 9 (33) Balance at March 31, 2022, net of tax effect of $93 $ (44) $ (251) $ 3 $ (292) Balance at December 31, 2020, net of tax effect of $160 $ 23 $ (498) $ (19) $ (494) Reclassifications into earnings, net of tax impact of $2 (4) 6 — (2) Change in value, net of tax impact of $(2) (8) — 6 2 Balance at March 31, 2021, net of tax effect of $160 $ 11 $ (492) $ (13) $ (494) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 3 | $ (2) | ||
Schedule of Stockholders' Equity Note, Warrants or Rights | Total warrants outstanding are as follows as of March 31, 2022: 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 Outstanding March 31, 2022 1,882,518 | |||
Related to marketable securities | $ (292) | $ (494) | $ (262) | $ (494) |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | Operating segment information is as follows (in millions): Three Months Ended March 31, 2022 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 1,243 $ 268 $ — $ — $ 1,511 $ — $ 1,511 CPA revenues — — 94 (94) — — — Mileage Plan other revenue 100 12 — — 112 — 112 Cargo and other 57 — — 1 58 — 58 Total Operating Revenues 1,400 280 94 (93) 1,681 — 1,681 Operating Expenses Operating expenses, excluding fuel 1,194 262 99 (94) 1,461 75 1,536 Fuel expense 381 73 — — 454 (107) 347 Total Operating Expenses 1,575 335 99 (94) 1,915 (32) 1,883 Non-operating Income (Expense) 1 — (5) — (4) — (4) Income (Loss) Before Income Tax $ (174) $ (55) $ (10) $ 1 $ (238) $ 32 $ (206) Three Months Ended March 31, 2021 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenues Passenger revenues $ 506 $ 153 $ — $ — $ 659 $ — $ 659 CPA revenues — — 104 (104) — — — Mileage Plan other revenue 80 14 — — 94 — 94 Cargo and other 44 — — — 44 — 44 Total Operating Revenues 630 167 104 (104) 797 — 797 Operating Expenses Operating expenses, excluding fuel 893 265 88 (109) 1,137 (382) 755 Fuel expense 174 52 — (1) 225 (22) 203 Total Operating Expenses 1,067 317 88 (110) 1,362 (404) 958 Non-operating Income (Expense) (7) — (5) — (12) — (12) Income (Loss) Before Income Tax $ (444) $ (150) $ 11 $ 6 $ (577) $ 404 $ (173) (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. (c) Includes Payroll Support Program wage offsets, special items and mark-to-market fuel hedge accounting adjustments. | |
Nonoperating Income (Expense) | $ (4) | $ (12) |
Interest income | 7 | 7 |
Operating Expenses, Excluding Fuel | 1,536 | 755 |
Economic fuel | 347 | 203 |
Operating Expenses | 1,883 | 958 |
Income (Loss) Before Income Tax | $ (206) | $ (173) |
FLEET TRANSITION (Details)
FLEET TRANSITION (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Q400 Impairment Charges | |
Impaired Long-Lived Assets [Line Items] | |
Asset Impairment Charges | $ 70 |
Other Fleet Transition Impairment | |
Impaired Long-Lived Assets [Line Items] | |
Asset Impairment Charges | $ 5 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,681 | $ 797 |
Passenger [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,511 | 659 |
Mileage plan other revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 112 | 94 |
Passenger Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,511 | 659 |
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 | 1,232 | 525 |
Passenger Revenue [Member] | Passenger ancillary revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 91 | 50 |
Passenger Revenue [Member] | Mileage Plan passenger revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 188 | 84 |
Passenger Revenue [Member] | Passenger [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,511 | 659 |
Mileage Plan Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 300 | 178 |
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 | 188 | 84 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 112 | 94 |
Cargo and Other Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 58 | 44 |
Cargo and Other Revenue [Member] | Cargo revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 29 | 27 |
Cargo and Other Revenue [Member] | Other revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 29 | $ 17 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Deferred Revenue Arrangement [Line Items] | |||
Receivable | $ 658 | $ 546 | |
Costs and Expenses | 1,883 | $ 958 | |
Mileage Plan Revenue [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Receivable | 108 | $ 64 | |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Contract liability revenue recognized | (9) | (4) | |
Passenger Revenue [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Contract liability revenue recognized | $ 390 | $ 136 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Liabilities Activity (Details) - Mileage Plan Revenue [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Total Deferred Revenue balance at January 1 | $ 2,358 | $ 2,277 |
Increase in liability for mileage credits issued | 259 | 136 |
Total Deferred Revenue balance at Sept 30 | 2,432 | 2,325 |
Passenger revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | (176) | (84) |
Mileage plan other revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | $ (9) | $ (4) |
FAIR VALUE MEASUREMENTS - FAIR
FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 2,256 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 2,471 | $ 2,727 |
Derivative instruments, liabilities | 2 | 9 |
Debt Securities, Available-for-sale | 2,262 | 2,646 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 422 | 337 |
Derivative instruments, liabilities | 0 | 0 |
Debt Securities, Available-for-sale | 422 | 337 |
Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 2,049 | 2,390 |
Derivative instruments, liabilities | 2 | 9 |
Debt Securities, Available-for-sale | 1,840 | 2,309 |
Fuel hedge contracts [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 203 | 81 |
Fuel hedge contracts [Member] | Level 1 [Member] | Recurring [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] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 203 | 81 |
Interest rate swaps agreements [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 6 | 0 |
Derivative instruments, liabilities | 2 | 9 |
Interest rate swaps agreements [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | 0 |
Interest rate swaps agreements [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 6 | 0 |
Derivative instruments, liabilities | 2 | 9 |
U.S. government and agency securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 416 | 331 |
U.S. government and agency securities [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 416 | 331 |
U.S. government and agency securities [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Equity Funds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 6 | 6 |
Equity Funds [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 6 | 6 |
Equity Funds [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Foreign government bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 29 | 38 |
Foreign government bonds [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Foreign government bonds [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 29 | 38 |
Asset-backed securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 244 | 311 |
Asset-backed securities [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Asset-backed securities [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 244 | 311 |
Mortgage-backed securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 190 | 232 |
Mortgage-backed securities [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Mortgage-backed securities [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 190 | 232 |
Corporate notes and bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,314 | 1,663 |
Corporate notes and bonds [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate notes and bonds [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,314 | 1,663 |
Municipal securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 63 | 65 |
Municipal securities [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Municipal securities [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 63 | $ 65 |
FAIR VALUE MEASUREMENTS - ACTIV
FAIR VALUE MEASUREMENTS - ACTIVITY FOR MARKETABLE SECURITIES (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value Disclosures [Abstract] | |
Unrealized holding gain (loss) arising during the period | $ 57 |
FAIR VALUE MEASUREMENTS - MATUR
FAIR VALUE MEASUREMENTS - MATURITIES FOR MARKETABLE SECURITIES (Details) $ in Millions | Mar. 31, 2022USD ($) |
Cost Basis | |
Due in one year or less | $ 628 |
Due after one year through five years | 1,651 |
Due after five years through 10 years | 34 |
Fair Value | |
Due in one year or less | 626 |
Due after one year through five years | 1,597 |
Due after five years through 10 years | 33 |
Total | 2,313 |
Debt Securities, Available-for-Sale, Maturity, without Single Maturity Date, Amortized Cost | $ 6 |
FAIR VALUE MEASUREMENTS - LONG-
FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 750 | |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,752 | $ 1,821 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,770 | $ 1,919 |
LONG-TERM DEBT - SCHEDULE OF LO
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | $ (18) | $ (20) | ||
Total | 2,370 | 2,539 | ||
Less current portion | 292 | 366 | ||
Long-term debt, less current portion | $ 2,078 | $ 2,173 | ||
Weighted-average fixed-interest rate | 3.60% | 3.70% | ||
Weighted-average variable-interest rate | 1.70% | 1.30% | ||
Long-term debt payments | $ (170) | $ (115) | ||
Proceeds from issuance of debt | $ 0 | 189 | ||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 8 | |||
Debt, Weighted Average Interest Rate | 3.30% | |||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheet (in millions): March 31, 2022 December 31, 2021 Fixed-rate notes payable due through 2029 $ 150 $ 163 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 1,002 1,058 Variable-rate notes payable due through 2029 636 738 Less debt issuance costs (18) (20) Total debt 2,370 2,539 Less current portion 292 366 Long-term debt, less current portion $ 2,078 $ 2,173 Weighted-average fixed-interest rate 3.6 % 3.7 % Weighted-average variable-interest rate 1.7 % 1.3 % Approximately $396 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at March 31, 2022, resulting in an effective weighted-average interest rate for the full debt portfolio of 3.3%. During the three months ended March 31, 2022, the Company made scheduled debt payments of $170 million. Debt Maturity At March 31, 2022, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2022 $ 201 2023 334 2024 240 2025 261 2026 176 Thereafter 1,176 Total $ 2,388 Bank Lines of Credit Alaska has three credit facilities totaling $486 million as of March 31, 2022. One of the credit facilities for $150 million expires in March 2025 and is secured by certain accounts receivable, spare engines, spare parts and ground service equipment. A second credit facility for $250 million expires in June 2024 and is secured by aircraft. Both 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. Alaska 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. Alaska was in compliance with this covenant at March 31, 2022. | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 486 | |||
Fixed rate notes payable due through 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total | 150 | $ 163 | ||
Variable rate notes payable due through 2029 [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Total | 636 | 738 | ||
US Treasury CARES Act Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 30 | |||
July 2020 EETC | ||||
Debt Instrument [Line Items] | ||||
Total | 1,002 | 1,058 | ||
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 | |||
PSP Notes Payable through 2031 | ||||
Debt Instrument [Line Items] | ||||
Total | 600 | $ 600 | ||
Variable Rate debt with interest rate swap [Member] | Interest rate swaps agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Notional Amount | 396 | |||
Derivative, Notional Amount | $ 396 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - FUTURE PAYMENTS (Details) $ in Millions | Mar. 31, 2022USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 201 |
2022 | 334 |
2023 | 240 |
2024 | 261 |
2025 | 176 |
Thereafter | 1,176 |
Total | $ 2,388 |
LONG-TERM DEBT - LINE OF CREDIT
LONG-TERM DEBT - LINE OF CREDIT (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)airline | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |||
Proceeds from Issuance of Secured Debt | $ 0 | $ 189 | |
Adjustments to Additional Paid in Capital, Warrant Issued | $ 8 | ||
Line of Credit Facility, Number of Credit Facilities | airline | 3 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 486 | ||
Line of Credit Facility, Asset Restrictions | 500 | ||
Credit Facility 1 [Member] | Secured by certain accounts receivable, spare engines, spare parts and ground service equipment [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 150 | ||
Credit Facility 2 [Member] | Secured by aircraft [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 250 | ||
Credit Facility 3 [Member] | Secured by aircraft [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 86 | ||
US Treasury CARES Act Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 30 |
EMPLOYEE BENEFIT PLANS - NET PE
EMPLOYEE BENEFIT PLANS - NET PENSION EXPENSE (Details) - Qualified Defined Benefit [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 11 | $ 13 |
Interest cost | 16 | 14 |
Expected return on assets | 32 | 31 |
Recognized actuarial loss (gain) | (2) | (9) |
Wages and Benefits [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Net pension expense | 11 | 13 |
Nonoperating Income (Expense) [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Net pension expense | $ (14) | $ (8) |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)aircraft | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 131 |
Loss Contingency Accrual | $ 22 |
Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 79 |
Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 52 |
Maximum | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 22 |
Minimum | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 0 |
E175 [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 12 |
E175 [Member] | Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 12 |
E175 [Member] | Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 0 |
B 737-8 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 10 |
B 737-8 | Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 10 |
B 737-8 | Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 0 |
B 737-9 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 62 |
B 737-9 | Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 51 |
B 737-9 | Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 11 |
B 737-10 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 47 |
B 737-10 | Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 6 |
B 737-10 | Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 41 |
Aircraft Commitments [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of 2021 | $ 1,159 |
2022 | 1,781 |
2023 | 414 |
2024 | 111 |
2025 | 47 |
Thereafter | 275 |
Unrecorded Unconditional Purchase Obligation | 3,787 |
Capacity Purchase Agreements [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of 2021 | 133 |
2022 | 182 |
2023 | 188 |
2024 | 194 |
2025 | 195 |
Thereafter | 740 |
Unrecorded Unconditional Purchase Obligation | 1,632 |
Virgin America Flight Attendants [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Loss Contingency, Damages Sought, Value | $ 78 |
SHAREHOLDERS' EQUITY, COMMON ST
SHAREHOLDERS' EQUITY, COMMON STOCK REPURCHASE (Details) - 2015 1 Billion Repurchase Program [Member] - USD ($) $ in Millions | 67 Months Ended | |
Mar. 31, 2021 | Aug. 31, 2015 | |
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 | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||||
Related to marketable securities | $ (292) | $ (494) | $ (262) | $ (494) |
Total | (292) | (262) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | (33) | 2 | ||
Related to marketable securities | (292) | (494) | (262) | (494) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3 | (2) | ||
Marketable Securities | ||||
Equity [Abstract] | ||||
Related to marketable securities | (44) | 11 | (4) | 23 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | (42) | (8) | ||
Related to marketable securities | (44) | 11 | (4) | 23 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2 | (4) | ||
AOCI Employee Benefit Plan | ||||
Equity [Abstract] | ||||
Related to marketable securities | (251) | (492) | (252) | (498) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | 0 | 0 | ||
Related to marketable securities | (251) | (492) | (252) | (498) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | 6 | ||
AOCI - Interest Rate Derivatives | ||||
Equity [Abstract] | ||||
Related to marketable securities | 3 | (13) | (6) | (19) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | 9 | 6 | ||
Related to marketable securities | 3 | (13) | $ (6) | $ (19) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 |
SHAREHOLDERS' EQUITY , WARRANT
SHAREHOLDERS' EQUITY , WARRANT ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | |
Class of Warrant or Right [Line Items] | |||
Class of Warrant or Right, Outstanding | 1,882,518 | ||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 8 | ||
US Treasury CARES Act Loan [Member] | |||
Class of Warrant or Right [Line Items] | |||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 30 | ||
PSP 1 Warrants | |||
Class of Warrant or Right [Line Items] | |||
Class of Warrant or Right, Outstanding | 928,127 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 31.61 | ||
US Treasury CARES Act Loan [Member] | |||
Class of Warrant or Right [Line Items] | |||
Class of Warrant or Right, Outstanding | 427,080 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 31.61 | ||
PSP 2 Warrants | |||
Class of Warrant or Right [Line Items] | |||
Class of Warrant or Right, Outstanding | 305,499 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 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 | $ 66.39 | ||
CARES Act PSP [Domain] | |||
Class of Warrant or Right [Line Items] | |||
Class of Warrant or Right, Outstanding | 1,455,438 |
OPERATING SEGMENT INFORMATION_2
OPERATING SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,681 | $ 797 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 1,536 | 755 |
Economic fuel | 347 | 203 |
Total Operating Expenses | 1,883 | 958 |
Nonoperating Income (Expense) | ||
Interest income | 7 | 7 |
Interest expense | (27) | (32) |
Interest capitalized | 2 | 3 |
Other—net | 14 | 10 |
Nonoperating Income (Expense) | (4) | (12) |
Costs and Expenses, Total | 1,883 | 958 |
Mileage Plan Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 300 | 178 |
Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,681 | 797 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 1,461 | 1,137 |
Economic fuel | 454 | 225 |
Total Operating Expenses | 1,915 | 1,362 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | (4) | (12) |
Income (loss) before income tax | (238) | (577) |
Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,400 | 630 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 1,194 | 893 |
Economic fuel | 381 | 174 |
Total Operating Expenses | 1,575 | 1,067 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | 1 | (7) |
Income (loss) before income tax | (174) | (444) |
Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 280 | 167 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 262 | 265 |
Economic fuel | 73 | 52 |
Total Operating Expenses | 335 | 317 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | 0 | 0 |
Income (loss) before income tax | (55) | (150) |
Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 94 | 104 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 99 | 88 |
Economic fuel | 0 | 0 |
Total Operating Expenses | 99 | 88 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | (5) | (5) |
Income (loss) before income tax | (10) | 11 |
Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (93) | (104) |
Operating expenses | ||
Operating Expenses, Excluding Fuel | (94) | (109) |
Economic fuel | 0 | (1) |
Total Operating Expenses | (94) | (110) |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | 0 | 0 |
Income (loss) before income tax | 1 | 6 |
Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 75 | (382) |
Economic fuel | (107) | (22) |
Total Operating Expenses | (32) | (404) |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | 0 | 0 |
Income (loss) before income tax | 32 | 404 |
Passenger [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,511 | 659 |
Passenger [Member] | Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,511 | 659 |
Passenger [Member] | Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,243 | 506 |
Passenger [Member] | Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 268 | 153 |
Passenger [Member] | Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Passenger [Member] | Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Passenger [Member] | Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 94 | 104 |
Capacity Purchase Agreements [Member] | Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (94) | (104) |
Capacity Purchase Agreements [Member] | Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Mileage plan other revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 112 | 94 |
Mileage plan other revenue [Member] | Mileage Plan Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 112 | 94 |
Mileage plan other revenue [Member] | Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 112 | 94 |
Mileage plan other revenue [Member] | Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 100 | 80 |
Mileage plan other revenue [Member] | Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 12 | 14 |
Mileage plan other revenue [Member] | Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Mileage plan other revenue [Member] | Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Mileage plan other revenue [Member] | Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Cargo and Freight [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 58 | 44 |
Cargo and Freight [Member] | Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 58 | 44 |
Cargo and Freight [Member] | Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 57 | 44 |
Cargo and Freight [Member] | Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Cargo and Freight [Member] | Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Cargo and Freight [Member] | Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1 | 0 |
Cargo and Freight [Member] | Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 |
OPERATING SEGMENT INFORMATION,
OPERATING SEGMENT INFORMATION, ASSETS (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Total assets | $ 14,210 | $ 13,951 |
Alaska Airlines [Member] | ||
Total assets | 19,684 | 19,258 |
Horizon [Member] | ||
Total assets | 1,125 | 1,212 |
Consolidating and Other [Member] | ||
Total assets | $ (6,599) | $ (6,519) |