COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
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, $0.01 par value | |
Security Exchange Name | NYSE | |
Trading Symbol | ALK | |
Entity Address, Address Line One | 19300 International Boulevard, | |
Entity Address, City or Town | Seattle, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98188 | |
City Area Code | (206) | |
Local Phone Number | 392-5040 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 127,224,437 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000766421 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 536 | $ 338 |
Marketable securities | 1,906 | 2,079 |
Total cash and marketable securities | 2,442 | 2,417 |
Receivables - net | 351 | 296 |
Inventories and supplies - net | 107 | 104 |
Prepaid expenses | 187 | 163 |
Other Assets, Current | 157 | 60 |
Total Current Assets | 3,244 | 3,040 |
Property and Equipment | ||
Aircraft and other flight equipment | 9,918 | 9,053 |
Other property and equipment | 1,714 | 1,661 |
Deposits for future flight equipment | 550 | 670 |
Property and Equipment Total | 12,182 | 11,384 |
Less accumulated depreciation and amortization | 4,219 | 4,127 |
Total Property and Equipment - Net | 7,963 | 7,257 |
Operating Lease, Right-of-Use Asset | 1,318 | 1,471 |
Goodwill | 2,036 | 2,038 |
Other noncurrent assets | 268 | 380 |
Other Assets | 3,622 | 3,889 |
Total Assets | 14,829 | 14,186 |
Current Liabilities | ||
Accounts payable | 212 | 221 |
Accrued wages, vacation and payroll taxes | 463 | 619 |
Other accrued liabilities | 871 | 846 |
Operating Lease, Liability, Current | 277 | 228 |
Current portion of long-term debt | 572 | 276 |
Total Current Liabilities | 5,176 | 4,493 |
Long-Term Debt, Net of Current Portion | 1,889 | 1,883 |
Noncurrent Liabilities | ||
Operating Lease, Liability, Noncurrent | 1,148 | 1,393 |
Deferred Income Tax Liabilities, Net | 606 | 574 |
Deferred revenue, noncurrent | 1,370 | 1,374 |
Obligation for pension and postretirement medical benefits | 362 | 348 |
Other liabilities | 327 | 305 |
Other Liabilities and Credits Totals | 3,813 | 3,994 |
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 | $ 648 | $ 577 |
Treasury Stock, Common, Shares | 10,635,485 | 9,349,944 |
Treasury stock (common), at cost: 2020 - 9,349,944 shares; 2020 - 9,349,944 shares | $ (731) | $ (674) |
Accumulated other comprehensive loss | (365) | (388) |
Retained earnings | 4,398 | 4,300 |
Total Shareholders' Equity | 3,951 | 3,816 |
Total Liabilities and Shareholders' Equity | 14,829 | 14,186 |
Mileage Plan Revenue [Member] | ||
Current Liabilities | ||
Contract with Customer, Liability, Current | 1,207 | 1,123 |
Contract with Customer, Liability, Current | 1,207 | 1,123 |
Passenger Revenue [Member] | ||
Current Liabilities | ||
Contract with Customer, Liability, Current | 1,574 | 1,180 |
Contract with Customer, Liability, Current | $ 1,574 | $ 1,180 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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) | 137,983,828 | 136,883,042 |
Common stock, shares outstanding (shares) | 127,348,343 | 127,533,916 |
Treasury Stock, Common, Shares | 10,635,485 | 9,349,944 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,838 | $ 2,658 | $ 5,034 | $ 4,339 |
Operating Expenses | ||||
Wages and benefits | 754 | 639 | 1,477 | 1,245 |
Variable incentive pay | 57 | 56 | 104 | 92 |
Aircraft fuel, including hedging gains and losses | 573 | 776 | 1,238 | 1,123 |
Aircraft maintenance | 125 | 104 | 249 | 239 |
Aircraft rent | 54 | 73 | 113 | 146 |
Landing fees and other rentals | 167 | 136 | 319 | 274 |
Contracted services | 95 | 82 | 190 | 160 |
Selling expenses | 81 | 78 | 147 | 136 |
Depreciation and amortization | 113 | 104 | 217 | 206 |
Food and beverage service | 60 | 50 | 114 | 91 |
Third-party regional carrier expense | 54 | 50 | 106 | 92 |
Other | 182 | 177 | 359 | 329 |
Special items - Impairment charges and other | 186 | 146 | 199 | 221 |
Special items - labor and related | 51 | 0 | ||
Operating Expenses | 2,501 | 2,471 | 4,883 | 4,354 |
Costs and Expenses, Total | 2,501 | 2,471 | 4,883 | 4,354 |
Operating Income (Loss) | 337 | 187 | 151 | (15) |
Nonoperating Income (Expense) | ||||
Interest income | 22 | 11 | 39 | 18 |
Interest expense | (28) | (26) | (56) | (53) |
Interest capitalized | 7 | 3 | 14 | 5 |
Special items - net non-operating | (6) | 0 | (6) | 0 |
Other—net | (7) | 10 | (16) | 24 |
Nonoperating Income (Expense) Total | (12) | (2) | (25) | (6) |
Income (Loss) Before Income Tax | 325 | 185 | 126 | (21) |
Income tax (benefit) expense | 85 | 46 | 28 | (17) |
Net Income (Loss) | $ 240 | $ 139 | $ 98 | $ (4) |
Basic Earnings Per Share (usd per share) | $ 1.88 | $ 1.10 | $ 0.77 | $ (0.03) |
Diluted Earnings Per Share (usd per share) | $ 1.86 | $ 1.09 | $ 0.76 | $ (0.03) |
Shares used for computation: | ||||
Basic shares (shares) | 127,440,000 | 126,543,000 | 127,470,000 | 126,265,000 |
Diluted shares (shares) | 128,919,000 | 127,795,000 | 128,860,000 | 126,265,000 |
Passenger [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,598 | $ 2,418 | $ 4,582 | $ 3,929 |
Mileage plan other revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 170 | 175 | 324 | 287 |
Cargo and Freight [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 70 | 65 | 128 | 123 |
Passenger Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,598 | 2,418 | 4,582 | 3,929 |
Passenger Revenue [Member] | Passenger [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,598 | 2,418 | 4,582 | 3,929 |
Mileage Plan Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 438 | 422 | 824 | 722 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 170 | 175 | 324 | 287 |
Cargo and Other Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 70 | 65 | 128 | 123 |
Cargo and Other Revenue [Member] | Cargo and Freight [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 70 | $ 65 | $ 128 | $ 123 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 240 | $ 139 | $ 98 | $ (4) |
Related to marketable securities: | ||||
Total | (5) | (20) | 16 | (60) |
Related to employee benefit plans: | ||||
Total | 4 | 0 | 8 | 1 |
Related to interest rate derivative instruments: | ||||
Total | 1 | 4 | (1) | 13 |
Comprehensive Income (Loss) | 240 | 123 | 121 | (50) |
Other Comprehensive Income (Loss), Net of Tax | $ 0 | $ (16) | $ 23 | $ (46) |
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, Common [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 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 | |||||
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) | (4) | |||||
Other Comprehensive Income (Loss), Net of Tax | (46) | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2022 | 3,799 | $ 1 | 542 | (674) | (308) | 4,238 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 126.088 | |||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2022 | 3,637 | $ 1 | 503 | (674) | (292) | 4,099 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 139 | 139 | ||||
Other Comprehensive Income (Loss), Net of Tax | (16) | (16) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0.017 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 9 | 9 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.643 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 30 | 30 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | ||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2022 | $ 3,799 | $ 1 | 542 | (674) | (308) | 4,238 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.012 | |||||
Common stock, shares outstanding (shares) | 126.760 | |||||
Common stock, shares outstanding (shares) | 127,533,916 | 127.534 | ||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2022 | $ 3,816 | $ 1 | 577 | (674) | (388) | 4,300 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (142) | (142) | ||||
Other Comprehensive Income (Loss), Net of Tax | 23 | 23 | ||||
Treasury Stock, Shares, Acquired | 0.414 | |||||
Stock Repurchased During Period, Value | (18) | 18 | ||||
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, 2023 | 3,689 | $ 1 | 587 | (692) | (365) | 4,158 |
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, 2022 | 3,816 | $ 1 | 577 | (674) | (388) | 4,300 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 98 | |||||
Other Comprehensive Income (Loss), Net of Tax | 23 | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2023 | 3,951 | $ 1 | 648 | (731) | (365) | 4,398 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding (shares) | 127.243 | |||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2023 | 3,689 | $ 1 | 587 | (692) | (365) | 4,158 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 240 | 240 | ||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0.017 | |||||
Treasury Stock, Shares, Acquired | 0.872 | |||||
Stock Repurchased During Period, Value | (39) | 39 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 26 | 26 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.924 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 34 | 34 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 1 | 1 | ||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2023 | $ 3,951 | $ 1 | $ 648 | $ (731) | $ (365) | $ 4,398 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.036 | |||||
Common stock, shares outstanding (shares) | 127,348,343 | 127.348 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net Income | $ 98 | $ (4) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 217 | 206 |
Stock-based compensation and other | 56 | 20 |
Special items - fleet transition and other (noncash) | 187 | 221 |
Special items - labor and related | 51 | 0 |
Changes in certain assets and liabilities: | ||
Changes in deferred tax provision | 27 | 14 |
Increase (Decrease) in Accounts Receivable | (55) | (115) |
Increase (Decrease) in Contract with Customer, Liability | 394 | 615 |
Increase in deferred revenue | 80 | 83 |
Proceeds from Income Tax Refunds | 0 | 260 |
Other - net | (223) | (37) |
Net cash provided by operating activities | 832 | 1,235 |
Property and equipment additions: | ||
Aircraft and aircraft purchase deposits | (414) | (509) |
Other flight equipment | (113) | (69) |
Other property and equipment | (107) | (54) |
Total property and equipment additions, including capitalized interest | (634) | (632) |
Purchases of marketable securities | (389) | (1,410) |
Sales and maturities of marketable securities | 574 | 1,323 |
Other investing activities | (30) | (2) |
Net cash used in investing activities | (479) | (721) |
Cash flows from financing activities: | ||
Common stock repurchases | (57) | 0 |
Long-term debt payments | (149) | (239) |
Other financing activities | 41 | 33 |
Net cash provided by (used in) financing activities | (165) | (206) |
Net increase in cash, cash equivalents, and restricted cash | 188 | 308 |
Cash, cash equivalents, and restricted cash at beginning of year | 369 | 494 |
Cash, cash equivalents, and restricted cash at end of the period | 557 | 802 |
Cash paid during the period for: | ||
Interest (net of amount capitalized) | 42 | 35 |
Income taxes | 14 | 0 |
Non-cash transactions: | ||
Right-of-use assets acquired through operating leases | 120 | 378 |
Operating lease converted to finance lease | 310 | 0 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 134 | 0 |
Reconciliation of cash, cash equivalents, and restricted cash at end of the period | ||
Cash and cash equivalents | 536 | 778 |
Restricted cash included in Prepaid expenses, assets held-for-sale and other current assets | 21 | 24 |
Total cash, cash equivalents, and restricted cash at end of the period | $ 557 | $ 802 |
GENERAL AND SUMMARY OF SIGNIFIC
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
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, and other immaterial business units. All 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, 2022. 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, 2023 and the results of operations for the three and six months ended June 30, 2023 and 2022. 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 revenue and expenses, including impairment charges. 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, 2023 are not necessarily indicative of operating results for the entire year. |
FLEET TRANSITION
FLEET TRANSITION | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
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 its mainline operations to an all-Boeing 737 fleet. It also announced plans to transition its regional operations to an all-Embraer fleet, retiring the Q400 fleet. The removal of all A320 and Q400 aircraft from operating service was completed in January 2023. Alaska continues to operate ten A321neo aircraft, and plans to remove them from its operating fleet by the end of the third quarter of 2023. Management plans to exit the leases by purchasing the aircraft, and subsequently sell them to a third-party. During the quarter, Alaska reached agreements with two lessors to exit six of the ten A321neo operating leases and purchase the aircraft. One of the aircraft purchases closed in the second quarter; the other five transactions are expected in the third and fourth quarters of 2023. As a result of the new agreements, the operating leases associated with the five aircraft that have not yet been purchased were considered modified, and upon evaluation were reclassified as finance leases. Valuation of long-lived assets The Company reviews its long-lived assets for impairment whenever events or circumstances indicate that the total carrying value of an asset or asset group may not be recoverable. Management identified indicators of impairment for the A321neo fleet and performed an impairment analysis in the second quarter. For the purposes of recoverability testing, three asset groups were identified: owned A321neo aircraft, A321neo aircraft operated under finance leases, and A321neo aircraft operated under operating leases. The Company performed recoverability tests for the aircraft, comparing each asset group's carrying value to the sum of its estimated undiscounted future cash flows. Future cash flows were estimated utilizing a combination of historical data, forecasted results, and anticipated use of the aircraft as of June 30, 2023. The analysis indicated the carrying value for all three asset groups was not recoverable, and an impairment measurement was required. The Company estimated the fair market value for the A321neo aircraft 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 $156 million, reflecting the amount by which carrying value exceeded fair value of these asset groups. This charge is included within "Special items - fleet transition and other" in the condensed consolidated statements of operations. Other Fleet Related Disclosure The five A321neo aircraft operated under finance leases are reflected within "Aircraft and other flight equipment." As of June 30, 2023, and subsequent to recognizing the related impairment charges, the assets total $175 million. The finance lease liabilities are reflected within "Current portion of long-term debt and finance leases" and total $316 million as of June 30, 2023. Interest expense of $6 million associated with the finance leases was recognized within "Special items - net non-operating" in the condensed consolidated statements of operations. Special charges were also recognized during the quarter reflecting adjustments to estimated costs to return the A320 fleet, as well as penalty rent for Airbus aircraft which have not yet been returned to the lessor as of the lease expiration date. The following table summarizes our special charges for fleet transition costs for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Impairment of long-lived assets (a) $ 151 $ — $ 151 $ 70 Accelerated aircraft ownership expenses 19 43 25 43 Lease return costs and other expenses 16 103 23 108 Special items - fleet transition and other $ 186 $ 146 $ 199 $ 221 | |
Special items - fleet transition and other [Table Text Block] | The following table summarizes our special charges for fleet transition costs for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Impairment of long-lived assets (a) $ 151 $ — $ 151 $ 70 Accelerated aircraft ownership expenses 19 43 25 43 Lease return costs and other expenses 16 103 23 108 Special items - fleet transition and other $ 186 $ 146 $ 199 $ 221 | |
Subsequent Events [Text Block] | Subsequent to quarter end, Alaska executed an agreement with one lessor to exit two additional operating leases and purchase the A321neo aircraft. The transactions are expected to occur in the first quarter of 2024 and will result in cash outflows of approximately $130 million. The agreements were not contractually obligated as of June 30, 2023 and are not reflected within the consolidated financial statements or accompanying notes as of June 30, 2023. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2023 | |
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 is passenger ancillary revenue 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. The Company disaggregates revenue by segment in Note 10. 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, 2023 2022 2023 2022 Passenger ticket revenue, net of taxes and fees $ 2,207 $ 2,052 $ 3,855 $ 3,284 Passenger ancillary revenue 123 119 227 210 Mileage Plan passenger revenue 268 247 500 435 Total Passenger revenue $ 2,598 $ 2,418 $ 4,582 $ 3,929 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, 2023 2022 2023 2022 Passenger revenue $ 268 $ 247 $ 500 $ 435 Mileage Plan other revenue 170 175 324 287 Total Mileage Plan revenue $ 438 $ 422 $ 824 $ 722 Cargo and Other Revenue Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cargo revenue $ 39 $ 36 $ 68 $ 65 Other revenue 31 29 60 58 Total Cargo and other revenue $ 70 $ 65 $ 128 $ 123 Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $103 million and $132 million from the prior year-end air traffic liability balance for the three months ended June 30, 2023 and 2022, and $588 million and $522 million from the prior year-end air traffic liability balance for the six months ended June 30, 2023 and 2022. 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 $96 million of such receivables as of June 30, 2023 and $83 million as of December 31, 2022. The table below presents a roll forward of the total frequent flyer liability (in millions): Six Months Ended June 30, 2023 2022 Total Deferred Revenue balance at January 1 $ 2,497 $ 2,358 Travel miles and companion certificate redemption - Passenger revenue (470) (409) Miles redeemed on partner airlines - Other revenue (52) (26) Increase in liability for mileage credits issued 602 518 Total Deferred Revenue balance at June 30 $ 2,577 $ 2,441 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheets (in millions): June 30, 2023 December 31, 2022 Fixed-rate notes payable due through 2029 $ 95 $ 113 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 891 947 Variable-rate notes payable due through 2035 573 514 Less debt issuance costs (13) (15) Total debt 2,146 2,159 Less current portion (a) 257 276 Long-term debt, less current portion $ 1,889 $ 1,883 Weighted-average fixed-interest rate 3.5 % 3.5 % Weighted-average variable-interest rate 6.5 % 5.8 % (a) Excludes finance lease liabilities recognized within "Current portion of long-term debt and finance leases" in the condensed consolidated balance sheets as of June 30, 2023. Approximately $265 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at June 30, 2023, resulting in an effective weighted-average interest rate for the full debt portfolio of 3.8%. In the second quarter, Horizon executed an agreement to finance E175 aircraft scheduled to be delivered in 2023 and 2024. The financing, which covers a portion of the total aircraft cost and is secured by the related aircraft, is funded upon each delivery and will total $247 million over the duration of the agreement. During the six months ended June 30, 2023, the Company incurred new debt associated with this agreement of $134 million, covering six E175 aircraft. This financing activity is reflected as a non-cash transaction within the supplemental disclosures in the condensed consolidated statements of cash flows. Also during the six months ended June 30, 2023, the Company made scheduled debt payments of $147 million and prepayments of $2 million. Subsequent to quarter end, Alaska completed a refinancing of an existing 2018 variable-rate loan facility with a total commitment amount of $117 million. The facility is secured by B737 aircraft. Debt Maturity At June 30, 2023, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2023 $ 135 2024 251 2025 304 2026 184 2027 544 Thereafter 741 Total Principal Payments $ 2,159 Bank Lines of Credit Alaska has three credit facilities totaling $476 million as of June 30, 2023. 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 SOFR plus a specified margin. A third credit facility for $76 million expires in June 2024 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 June 30, 2023. Subsequent to quarter end, the Company executed an amendment to one of its aircraft-backed credit facilities, extending the term of the agreement from June 2024 to June 2026 and increasing the size of the facility from $250 million to $400 million. There were no changes to the minimum unrestricted cash and marketable securities requirement. | |
Subsequent Events [Text Block] | Subsequent to quarter end, Alaska executed an agreement with one lessor to exit two additional operating leases and purchase the A321neo aircraft. The transactions are expected to occur in the first quarter of 2024 and will result in cash outflows of approximately $130 million. The agreements were not contractually obligated as of June 30, 2023 and are not reflected within the consolidated financial statements or accompanying notes as of June 30, 2023. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2023 2022 Service cost $ 7 $ 11 $ 14 $ 22 Pension expense included in Wages and benefits 7 11 14 22 Interest cost 27 16 54 32 Expected return on assets (29) (32) (57) (64) Recognized actuarial loss 6 2 12 4 Pension expense included in Non-operating Income (Expense) $ 4 $ (14) $ 9 $ (28) |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Common Stock Repurchase In August 2015, the Board of Directors authorized a $1 billion share repurchase program. In March 2020, the Company suspended the share repurchase program as required by the CARES Act. These restrictions ended on October 1, 2022. The Company restarted the share repurchase program in February 2023 pursuant to the existing repurchase program. As of June 30, 2023, the Company has repurchased 8.9 million shares for $601 million under this program. No shares were repurchased in 2022. Share purchase activity (in millions, except share amounts): Three Months Ended Six Months Ended Shares Amount Shares Amount 2015 Repurchase Program—$1 billion 871,987 $ 39 1,285,541 $ 57 CARES Act Warrant Issuances As taxpayer protection required under the Payroll Support Program (PSP) under the CARES Act, the Company granted the U.S. government a total of 1,455,437 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. As of June 30, 2023, there are 1,882,517 total warrants outstanding, with a weighted average strike price of $39.06. 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. Earnings Per Share (EPS) Diluted EPS is calculated by dividing net income by the average number of common shares outstanding plus the number of additional common shares that would have been outstanding assuming the exercise of in-the-money stock options, restricted stock units, and warrants, using the treasury-stock method. For the three and six months ended June 30, 2023 and June 30, 2022, anti-dilutive shares excluded from the calculation of EPS were not material. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Note | ACCUMULATED OTHER COMPREHENSIVE LOSS A roll forward of the amounts included in accumulated other comprehensive loss, net of tax (in millions), is shown below for the three and six months ended June 30, 2023 and 2022: Marketable Securities Employee Benefit Plan Interest Rate Derivatives Total Balance at March 31, 2023, net of tax effect of $117 $ (59) $ (315) $ 9 $ (365) Reclassifications into earnings, net of tax effect of $(2) 2 4 — 6 Change in value, net of tax effect of $1 (7) — 1 (6) Balance at June 30, 2023, net of tax effect of $116 $ (64) $ (311) $ 10 $ (365) Balance at December 31, 2022, net of tax effect of $122 $ (80) $ (319) $ 11 $ (388) Reclassifications into earnings, net of tax effect of $(4) 7 8 — 15 Change in value, net of tax effect of $(2) 9 — (1) 8 Balance at June 30, 2023, net of tax effect of $116 $ (64) $ (311) $ 10 $ (365) Marketable Securities Employee Benefit Plan Interest Rate Derivatives Total Balance at March 31, 2022, net of tax effect of $93 $ (44) $ (251) $ 3 $ (292) Reclassifications into earnings, net of tax effect of $1 2 — — 2 Change in value, net of tax effect of $4 (22) — 4 (18) Balance at June 30, 2022, net of tax effect of $98 $ (64) $ (251) $ 7 $ (308) Balance at December 31, 2021, net of tax effect of $83 $ (4) $ (252) $ (6) $ (262) Reclassifications into earnings, net of tax effect of $1 4 1 — 5 Change in value, net of tax effect of $14 (64) — 13 (51) Balance at June 30, 2022, net of tax effect of $98 $ (64) $ (251) $ 7 $ (308) |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
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 revenue. 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 revenue 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, 2023 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 2,228 $ 370 $ — $ — $ 2,598 $ — $ 2,598 CPA revenue — — 92 (92) — — — Mileage Plan other revenue 158 12 — — 170 — 170 Cargo and other revenue 67 — — 3 70 — 70 Total Operating Revenue 2,453 382 92 (89) 2,838 — 2,838 Operating Expenses Operating expenses, excluding fuel 1,468 279 87 (92) 1,742 186 1,928 Fuel expense 490 81 — 1 572 1 573 Total Operating Expenses 1,958 360 87 (91) 2,314 187 2,501 Non-operating Income (Expense) 3 — (10) 1 (6) (6) (12) Income (Loss) Before Income Tax $ 498 $ 22 $ (5) $ 3 $ 518 $ (193) $ 325 Pretax Margin 18.3 % 11.5 % Three Months Ended June 30, 2022 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 2,028 $ 390 $ — $ — $ 2,418 $ — $ 2,418 CPA revenue — — 101 (101) — — — Mileage Plan other revenue 159 16 — — 175 — 175 Cargo and other revenue 64 — — 1 65 — 65 Total Operating Revenue 2,251 406 101 (100) 2,658 — 2,658 Operating Expenses Operating expenses, excluding fuel 1,262 289 98 (100) 1,549 146 1,695 Fuel expense 617 119 — — 736 40 776 Total Operating Expenses 1,879 408 98 (100) 2,285 186 2,471 Non-operating Income (Expense) 3 — (5) — (2) — (2) Income (Loss) Before Income Tax $ 375 $ (2) $ (2) $ — $ 371 $ (186) $ 185 Pretax Margin 14.0 % 7.0 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net Income | $ 240 | $ (142) | $ 139 | $ (143) | $ 98 | $ (4) |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On June 5, 2023, Alaska Air Group President and CEO Ben Minicucci entered into a Rule 10b5-1 trading plan (“Plan”) having conditions that, if satisfied, could lead to his sale of up to 20,000 shares of Alaska Air Group common stock through May 20, 2024. Mr. Minicucci’s Plan will commence on September 5, 2023 and will cease upon the earlier of May 20, 2024 or the date of sale of 20,000 shares of common stock included in the Plan. The Plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c)(1) promulgated under the Securities Exchange Act of 1934, as amended. Mr. Minicucci entered the Plan in accordance with the Alaska Air Group Insider Trading Policy. |
Rule 10b5-1 Arrangement Adopted | true |
Aggregate Available | 20,000 |
GENERAL AND SUMMARY OF SIGNIF_2
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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, and other immaterial business units. All 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, 2022. 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, 2023 and the results of operations for the three and six months ended June 30, 2023 and 2022. 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 revenue and expenses, including impairment charges. 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, 2023 are not necessarily indicative of operating results for the entire year. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2023 2022 Passenger ticket revenue, net of taxes and fees $ 2,207 $ 2,052 $ 3,855 $ 3,284 Passenger ancillary revenue 123 119 227 210 Mileage Plan passenger revenue 268 247 500 435 Total Passenger revenue $ 2,598 $ 2,418 $ 4,582 $ 3,929 Mileage Plan revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Passenger revenue $ 268 $ 247 $ 500 $ 435 Mileage Plan other revenue 170 175 324 287 Total Mileage Plan revenue $ 438 $ 422 $ 824 $ 722 Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cargo revenue $ 39 $ 36 $ 68 $ 65 Other revenue 31 29 60 58 Total Cargo and other revenue $ 70 $ 65 $ 128 $ 123 |
Contract with Customer Liabilities | The table below presents a roll forward of the total frequent flyer liability (in millions): Six Months Ended June 30, 2023 2022 Total Deferred Revenue balance at January 1 $ 2,497 $ 2,358 Travel miles and companion certificate redemption - Passenger revenue (470) (409) Miles redeemed on partner airlines - Other revenue (52) (26) Increase in liability for mileage credits issued 602 518 Total Deferred Revenue balance at June 30 $ 2,577 $ 2,441 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Investments Classified by Contractual Maturity Date | Maturities for marketable securities (in millions): June 30, 2023 Cost Basis Fair Value Due in one year or less $ 386 $ 379 Due after one year through five years 1,512 1,442 Due after five years 71 65 Due after 10 years 15 14 No maturity date 4 6 Total $ 1,988 $ 1,906 |
Fair Value, by Balance Sheet Grouping | Fair values of financial instruments on the condensed consolidated balance sheets (in millions): June 30, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 532 $ — $ 532 $ 505 $ — $ 505 Equity mutual funds 5 — 5 5 — 5 Foreign government bonds — 10 10 — 25 25 Asset-backed securities — 217 217 — 261 261 Mortgage-backed securities — 138 138 — 196 196 Corporate notes and bonds — 945 945 — 1,025 1,025 Municipal securities — 59 59 — 62 62 Total Marketable securities 537 1,369 1,906 510 1,569 2,079 Derivative instruments Fuel hedge contracts - call options — 15 15 — 44 44 Interest rate swap agreements — 13 13 — 15 15 Total Assets $ 537 $ 1,397 $ 1,934 $ 510 $ 1,628 $ 2,138 Fixed-rate debt on the condensed consolidated balance sheets and the estimated fair value of long-term fixed-rate debt (in millions): June 30, 2023 December 31, 2022 Fixed-rate debt $ 1,586 $ 1,660 Estimated fair value $ 1,428 $ 1,473 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt obligations on the condensed consolidated balance sheets (in millions): June 30, 2023 December 31, 2022 Fixed-rate notes payable due through 2029 $ 95 $ 113 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 891 947 Variable-rate notes payable due through 2035 573 514 Less debt issuance costs (13) (15) Total debt 2,146 2,159 Less current portion (a) 257 276 Long-term debt, less current portion $ 1,889 $ 1,883 Weighted-average fixed-interest rate 3.5 % 3.5 % Weighted-average variable-interest rate 6.5 % 5.8 % (a) Excludes finance lease liabilities recognized within "Current portion of long-term debt and finance leases" in the condensed consolidated balance sheets as of June 30, 2023. |
Schedule of Maturities of Long-term Debt | At June 30, 2023, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2023 $ 135 2024 251 2025 304 2026 184 2027 544 Thereafter 741 Total Principal Payments $ 2,159 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2023 2022 Service cost $ 7 $ 11 $ 14 $ 22 Pension expense included in Wages and benefits 7 11 14 22 Interest cost 27 16 54 32 Expected return on assets (29) (32) (57) (64) Recognized actuarial loss 6 2 12 4 Pension expense included in Non-operating Income (Expense) $ 4 $ (14) $ 9 $ (28) |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 (in millions): Aircraft-Related Commitments (a) Capacity Purchase Agreements and Other Obligations (b) Remainder of 2023 $ 1,177 $ 109 2024 1,390 224 2025 1,440 227 2026 689 218 2027 335 220 Thereafter 598 739 Total $ 5,629 $ 1,737 (a) Includes contractual commitments for aircraft, engines, and aircraft maintenance. Option deliveries are excluded from minimum commitments until exercise. |
Schedule of Future Aircraft Delivery | Firm Orders Options and Other Rights Total Aircraft Type 2023-2027 2025-2030 2023-2030 B737 94 105 199 E175 11 13 24 Total 105 118 223 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity [Abstract] | ||||
Schedule of Accumulated Other Comprehensive Income (Loss) | A roll forward of the amounts included in accumulated other comprehensive loss, net of tax (in millions), is shown below for the three and six months ended June 30, 2023 and 2022: Marketable Securities Employee Benefit Plan Interest Rate Derivatives Total Balance at March 31, 2023, net of tax effect of $117 $ (59) $ (315) $ 9 $ (365) Reclassifications into earnings, net of tax effect of $(2) 2 4 — 6 Change in value, net of tax effect of $1 (7) — 1 (6) Balance at June 30, 2023, net of tax effect of $116 $ (64) $ (311) $ 10 $ (365) Balance at December 31, 2022, net of tax effect of $122 $ (80) $ (319) $ 11 $ (388) Reclassifications into earnings, net of tax effect of $(4) 7 8 — 15 Change in value, net of tax effect of $(2) 9 — (1) 8 Balance at June 30, 2023, net of tax effect of $116 $ (64) $ (311) $ 10 $ (365) Marketable Securities Employee Benefit Plan Interest Rate Derivatives Total Balance at March 31, 2022, net of tax effect of $93 $ (44) $ (251) $ 3 $ (292) Reclassifications into earnings, net of tax effect of $1 2 — — 2 Change in value, net of tax effect of $4 (22) — 4 (18) Balance at June 30, 2022, net of tax effect of $98 $ (64) $ (251) $ 7 $ (308) Balance at December 31, 2021, net of tax effect of $83 $ (4) $ (252) $ (6) $ (262) Reclassifications into earnings, net of tax effect of $1 4 1 — 5 Change in value, net of tax effect of $14 (64) — 13 (51) Balance at June 30, 2022, net of tax effect of $98 $ (64) $ (251) $ 7 $ (308) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 6 | $ 2 | $ 15 | $ 5 |
Schedule of Stockholders' Equity Note, Warrants or Rights | Earnings |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | A roll forward of the amounts included in accumulated other comprehensive loss, net of tax (in millions), is shown below for the three and six months ended June 30, 2023 and 2022: Marketable Securities Employee Benefit Plan Interest Rate Derivatives Total Balance at March 31, 2023, net of tax effect of $117 $ (59) $ (315) $ 9 $ (365) Reclassifications into earnings, net of tax effect of $(2) 2 4 — 6 Change in value, net of tax effect of $1 (7) — 1 (6) Balance at June 30, 2023, net of tax effect of $116 $ (64) $ (311) $ 10 $ (365) Balance at December 31, 2022, net of tax effect of $122 $ (80) $ (319) $ 11 $ (388) Reclassifications into earnings, net of tax effect of $(4) 7 8 — 15 Change in value, net of tax effect of $(2) 9 — (1) 8 Balance at June 30, 2023, net of tax effect of $116 $ (64) $ (311) $ 10 $ (365) Marketable Securities Employee Benefit Plan Interest Rate Derivatives Total Balance at March 31, 2022, net of tax effect of $93 $ (44) $ (251) $ 3 $ (292) Reclassifications into earnings, net of tax effect of $1 2 — — 2 Change in value, net of tax effect of $4 (22) — 4 (18) Balance at June 30, 2022, net of tax effect of $98 $ (64) $ (251) $ 7 $ (308) Balance at December 31, 2021, net of tax effect of $83 $ (4) $ (252) $ (6) $ (262) Reclassifications into earnings, net of tax effect of $1 4 1 — 5 Change in value, net of tax effect of $14 (64) — 13 (51) Balance at June 30, 2022, net of tax effect of $98 $ (64) $ (251) $ 7 $ (308) |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Schedule of Segment Reporting Information, by Segment | Operating segment information is as follows (in millions): Three Months Ended June 30, 2023 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 2,228 $ 370 $ — $ — $ 2,598 $ — $ 2,598 CPA revenue — — 92 (92) — — — Mileage Plan other revenue 158 12 — — 170 — 170 Cargo and other revenue 67 — — 3 70 — 70 Total Operating Revenue 2,453 382 92 (89) 2,838 — 2,838 Operating Expenses Operating expenses, excluding fuel 1,468 279 87 (92) 1,742 186 1,928 Fuel expense 490 81 — 1 572 1 573 Total Operating Expenses 1,958 360 87 (91) 2,314 187 2,501 Non-operating Income (Expense) 3 — (10) 1 (6) (6) (12) Income (Loss) Before Income Tax $ 498 $ 22 $ (5) $ 3 $ 518 $ (193) $ 325 Pretax Margin 18.3 % 11.5 % Three Months Ended June 30, 2022 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 2,028 $ 390 $ — $ — $ 2,418 $ — $ 2,418 CPA revenue — — 101 (101) — — — Mileage Plan other revenue 159 16 — — 175 — 175 Cargo and other revenue 64 — — 1 65 — 65 Total Operating Revenue 2,251 406 101 (100) 2,658 — 2,658 Operating Expenses Operating expenses, excluding fuel 1,262 289 98 (100) 1,549 146 1,695 Fuel expense 617 119 — — 736 40 776 Total Operating Expenses 1,879 408 98 (100) 2,285 186 2,471 Non-operating Income (Expense) 3 — (5) — (2) — (2) Income (Loss) Before Income Tax $ 375 $ (2) $ (2) $ — $ 371 $ (186) $ 185 Pretax Margin 14.0 % 7.0 % | Six Months Ended June 30, 2023 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 3,918 $ 664 $ — $ — $ 4,582 $ — $ 4,582 CPA revenue — — 170 (170) — — — Mileage Plan other revenue 301 23 — — 324 — 324 Cargo and other revenue 124 — — 4 128 — 128 Total Operating Revenue 4,343 687 170 (166) 5,034 — 5,034 Operating Expenses Operating expenses, excluding fuel 2,858 535 171 (169) 3,395 250 3,645 Fuel expense 1,051 166 — — 1,217 21 1,238 Total Operating Expenses 3,909 701 171 (169) 4,612 271 4,883 Non-operating Income (Expense) (3) — (18) 2 (19) (6) (25) Income (Loss) Before Income Tax $ 431 $ (14) $ (19) $ 5 $ 403 $ (277) $ 126 Pretax Margin 8.0 % 2.5 % Six Months Ended June 30, 2022 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 3,271 $ 658 $ — $ — $ 3,929 $ — $ 3,929 CPA revenue — — 195 (195) — — — Mileage Plan other revenue 259 28 — — 287 — 287 Cargo and other revenue 121 — — 2 123 — 123 Total Operating Revenue 3,651 686 195 (193) 4,339 — 4,339 Operating Expenses Operating expenses, excluding fuel 2,456 551 197 (194) 3,010 221 3,231 Fuel expense 998 192 — — 1,190 (67) 1,123 Total Operating Expenses 3,454 743 197 (194) 4,200 154 4,354 Non-operating Income (Expense) 4 — (10) — (6) — (6) Income (Loss) Before Income Tax $ 201 $ (57) $ (12) $ 1 $ 133 $ (154) $ (21) Pretax Margin 3.1 % (0.5) % (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 special items and mark-to-market fuel hedge accounting adjustments. Total assets were as follows (in millions): June 30, 2023 December 31, 2022 Mainline $ 20,311 $ 19,733 Horizon 1,285 1,157 Consolidating & Other (6,767) (6,704) Consolidated $ 14,829 $ 14,186 | ||
Nonoperating Income (Expense) | $ (12) | $ (2) | $ (25) | $ (6) |
Interest income | 22 | 11 | 39 | 18 |
Operating Expenses, Excluding Fuel | 1,928 | 1,695 | 3,645 | 3,231 |
Economic fuel | 573 | 776 | 1,238 | 1,123 |
Operating Expenses | 2,501 | 2,471 | 4,883 | 4,354 |
Income (Loss) Before Income Tax | $ 325 | $ 185 | $ 126 | $ (21) |
Pretax Margin, GAAP | 11.50% | 7% | 2.50% | (0.50%) |
Pretax Margin, Adjusted | 18.30% | 14% | 8% | 3.10% |
FLEET TRANSITION (Details)
FLEET TRANSITION (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2024 airline | Jun. 30, 2023 USD ($) airline | Jun. 30, 2022 USD ($) | Dec. 31, 2023 airline | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jul. 31, 2023 USD ($) | |
Impaired Long-Lived Assets [Line Items] | |||||||
Special items - Impairment charges and other | $ 186 | $ 146 | $ 199 | $ 221 | |||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 175 | 175 | |||||
Finance Lease, Liability | 316 | 316 | |||||
Accelerated aircraft ownership expenses [Member] | |||||||
Impaired Long-Lived Assets [Line Items] | |||||||
Special items - Impairment charges and other | 19 | 43 | 25 | 43 | |||
Lease return costs and other expenses | |||||||
Impaired Long-Lived Assets [Line Items] | |||||||
Special items - Impairment charges and other | 16 | 103 | 23 | 108 | |||
Fleet transition - impairment [Member] | |||||||
Impaired Long-Lived Assets [Line Items] | |||||||
Special items - Impairment charges and other | $ 151 | $ 0 | $ 151 | $ 70 | |||
A321neo [Member] | |||||||
Impaired Long-Lived Assets [Line Items] | |||||||
Number of Aircraft Operated | airline | 10 | ||||||
Finance Lease, Impairment Loss | $ 156 | ||||||
A321neo [Member] | Aircraft purchase [Member] | |||||||
Impaired Long-Lived Assets [Line Items] | |||||||
Number of Aircraft Operated | airline | 1 | ||||||
A321neo [Member] | New firm aircraft commitment [Member] | |||||||
Impaired Long-Lived Assets [Line Items] | |||||||
Number of Aircraft Operated | airline | 6 | ||||||
A321neo [Member] | Subsequent Event [Member] | |||||||
Impaired Long-Lived Assets [Line Items] | |||||||
2024 | $ 130 | ||||||
A321neo [Member] | Subsequent Event [Member] | Aircraft purchase [Member] | |||||||
Impaired Long-Lived Assets [Line Items] | |||||||
Number of Aircraft Operated | airline | 2 | 5 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,838 | $ 2,658 | $ 5,034 | $ 4,339 |
Passenger [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,598 | 2,418 | 4,582 | 3,929 |
Mileage plan other revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 170 | 175 | 324 | 287 |
Passenger Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,598 | 2,418 | 4,582 | 3,929 |
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 | 2,207 | 2,052 | 3,855 | 3,284 |
Passenger Revenue [Member] | Passenger ancillary revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 123 | 119 | 227 | 210 |
Passenger Revenue [Member] | Mileage Plan passenger revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 268 | 247 | 500 | 435 |
Passenger Revenue [Member] | Passenger [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,598 | 2,418 | 4,582 | 3,929 |
Mileage Plan Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 438 | 422 | 824 | 722 |
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 | 268 | 247 | 500 | 435 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 170 | 175 | 324 | 287 |
Cargo and Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 70 | 65 | 128 | 123 |
Cargo and Other Revenue [Member] | Cargo revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 39 | 36 | 68 | 65 |
Cargo and Other Revenue [Member] | Other revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 31 | $ 29 | $ 60 | $ 58 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Deferred Revenue Arrangement [Line Items] | |||||
Receivable | $ 351 | $ 351 | $ 296 | ||
Costs and Expenses | 2,501 | $ 2,471 | 4,883 | $ 4,354 | |
Mileage Plan Revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Contract liability revenue recognized | 602 | 518 | |||
Receivable | 96 | 96 | $ 83 | ||
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Contract liability revenue recognized | (52) | (26) | |||
Passenger Revenue [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Contract liability revenue recognized | $ 103 | $ 132 | $ 588 | $ 522 |
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, 2023 | Jun. 30, 2022 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Total Deferred Revenue balance at January 1 | $ 2,497 | $ 2,358 |
Revenue recognized | 602 | 518 |
Total Deferred Revenue balance at Sept 30 | 2,577 | 2,441 |
Passenger revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | (470) | (409) |
Mileage plan other revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | $ (52) | $ (26) |
FAIR VALUE MEASUREMENTS - FAIR
FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Amortized Cost | $ 2,000 | |
Debt Securities, Available-for-Sale and Held-to-Maturity, Fair Value | 1,900 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,934 | $ 2,138 |
Debt Securities, Available-for-sale | 1,906 | 2,079 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 537 | 510 |
Debt Securities, Available-for-sale | 537 | 510 |
Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,397 | 1,628 |
Debt Securities, Available-for-sale | 1,369 | 1,569 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 567 | |
Fuel hedge contracts [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 15 | 44 |
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 | 15 | 44 |
Interest rate swaps agreements [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 13 | 15 |
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 |
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 | 13 | 15 |
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 | 532 | 505 |
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 | 532 | 505 |
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 | 5 | 5 |
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 | 5 | 5 |
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 | 10 | 25 |
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 | 10 | 25 |
Asset-backed securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 217 | 261 |
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 | 217 | 261 |
Mortgage-backed securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 138 | 196 |
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 | 138 | 196 |
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 | 945 | 1,025 |
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 | 945 | 1,025 |
Municipal securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 59 | 62 |
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 | $ 59 | $ 62 |
FAIR VALUE MEASUREMENTS - MATUR
FAIR VALUE MEASUREMENTS - MATURITIES FOR MARKETABLE SECURITIES (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Cost Basis | |
Due in one year or less | $ 386 |
Due after one year through five years | 1,512 |
Due after five years through 10 years | 71 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 14 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Amortized Cost | 15 |
Debt Securities, Available-for-Sale, Maturity, without Single Maturity Date, Amortized Cost | 4 |
Debt Securities, Available-for-Sale, With Maturities - Cost Basis | 1,988 |
Total | 2,000 |
Fair Value | |
Due in one year or less | 379 |
Due after one year through five years | 1,442 |
Due after five years through 10 years | 65 |
Debt Securities, Available-for-Sale, Maturity, without Single Maturity Date, Fair Value | 6 |
Debt Securities, Available-for-Sale, With Maturities - Fair Value | 1,906 |
Debt Securities, Available-for-Sale and Held-to-Maturity, Fair Value | $ 1,900 |
FAIR VALUE MEASUREMENTS - LONG-
FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 567 | |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,586 | $ 1,660 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,428 | $ 1,473 |
LONG-TERM DEBT - SCHEDULE OF LO
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jul. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | $ (13) | $ (15) | ||
Total | 2,146 | 2,159 | ||
Less current portion | 257 | 276 | ||
Long-term debt, less current portion | $ 1,889 | $ 1,883 | ||
Weighted-average fixed-interest rate | 3.50% | 3.50% | ||
Weighted-average variable-interest rate | 6.50% | 5.80% | ||
Long-term debt payments | $ 149 | $ 239 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 39.06 | |||
Proceeds from Issuance of Long-term Debt | $ 134 | |||
Debt, Weighted Average Interest Rate | 3.80% | |||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheets (in millions): June 30, 2023 December 31, 2022 Fixed-rate notes payable due through 2029 $ 95 $ 113 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 891 947 Variable-rate notes payable due through 2035 573 514 Less debt issuance costs (13) (15) Total debt 2,146 2,159 Less current portion (a) 257 276 Long-term debt, less current portion $ 1,889 $ 1,883 Weighted-average fixed-interest rate 3.5 % 3.5 % Weighted-average variable-interest rate 6.5 % 5.8 % (a) Excludes finance lease liabilities recognized within "Current portion of long-term debt and finance leases" in the condensed consolidated balance sheets as of June 30, 2023. Approximately $265 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at June 30, 2023, resulting in an effective weighted-average interest rate for the full debt portfolio of 3.8%. In the second quarter, Horizon executed an agreement to finance E175 aircraft scheduled to be delivered in 2023 and 2024. The financing, which covers a portion of the total aircraft cost and is secured by the related aircraft, is funded upon each delivery and will total $247 million over the duration of the agreement. During the six months ended June 30, 2023, the Company incurred new debt associated with this agreement of $134 million, covering six E175 aircraft. This financing activity is reflected as a non-cash transaction within the supplemental disclosures in the condensed consolidated statements of cash flows. Also during the six months ended June 30, 2023, the Company made scheduled debt payments of $147 million and prepayments of $2 million. Subsequent to quarter end, Alaska completed a refinancing of an existing 2018 variable-rate loan facility with a total commitment amount of $117 million. The facility is secured by B737 aircraft. Debt Maturity At June 30, 2023, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2023 $ 135 2024 251 2025 304 2026 184 2027 544 Thereafter 741 Total Principal Payments $ 2,159 Bank Lines of Credit Alaska has three credit facilities totaling $476 million as of June 30, 2023. 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 SOFR plus a specified margin. A third credit facility for $76 million expires in June 2024 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 June 30, 2023. Subsequent to quarter end, the Company executed an amendment to one of its aircraft-backed credit facilities, extending the term of the agreement from June 2024 to June 2026 and increasing the size of the facility from $250 million to $400 million. There were no changes to the minimum unrestricted cash and marketable securities requirement. | |||
Proceeds from Issuance of Long-term Debt | $ 134 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 476 | |||
Debt Prepayments [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt payments | 2 | |||
Scheduled Debt Payments [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt payments | $ 147 | |||
E175 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral | six | |||
Fixed rate notes payable due through 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total | $ 95 | $ 113 | ||
Variable rate notes payable due through 2035 [Member] [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument commitment amount, refinanced, total | $ 117 | |||
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 | 891 | 947 | ||
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 notes payable due through 2035 | ||||
Debt Instrument [Line Items] | ||||
Total | 573 | $ 514 | ||
June 2023 E175 Financing [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Debt | 247 | |||
Variable Rate debt with interest rate swap [Member] | Interest rate swaps agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Notional Amount | 265 | |||
Derivative, Notional Amount | $ 265 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - FUTURE PAYMENTS (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 135 |
2022 | 251 |
2023 | 304 |
2024 | 184 |
2025 | 544 |
Thereafter | 741 |
Total | $ 2,159 |
LONG-TERM DEBT - LINE OF CREDIT
LONG-TERM DEBT - LINE OF CREDIT (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 476 | |
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 2 [Member] | Secured by aircraft [Member] | Subsequent Event [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 | |
Credit Facility 3 [Member] | Secured by aircraft [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 76 | |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 7 | $ 11 | $ 14 | $ 22 |
Interest cost | 27 | 16 | 54 | 32 |
Expected return on assets | 29 | 32 | 57 | 64 |
Recognized actuarial loss (gain) | (6) | (2) | (12) | (4) |
Wages and Benefits [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net pension expense | 7 | 11 | 14 | 22 |
Nonoperating Income (Expense) [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net pension expense | $ 4 | $ (14) | $ 9 | $ (28) |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2023 USD ($) aircraft | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 223 |
Loss Contingency, Damages Awarded, Value | $ 31 |
Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 105 |
Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 118 |
Maximum | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 160 |
Loss Contingency Accrual | 6 |
Minimum | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 10 |
B737 MAX [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 199 |
B737 MAX [Member] | Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 94 |
B737 MAX [Member] | Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 105 |
E175 [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 24 |
E175 [Member] | Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 11 |
E175 [Member] | Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 13 |
Aircraft-related Commitments [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of 2023 | $ 1,177 |
2024 | 1,390 |
2025 | 1,440 |
2026 | 689 |
2027 | 335 |
Thereafter | 598 |
Unrecorded Unconditional Purchase Obligation | 5,629 |
CPA and Other [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of 2023 | 109 |
2024 | 224 |
2025 | 227 |
2026 | 218 |
2027 | 220 |
Thereafter | 739 |
Unrecorded Unconditional Purchase Obligation | 1,737 |
Virgin Group trademark license agreement [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Loss Contingency, Damages Sought, Value | $ 8 |
SHAREHOLDERS' EQUITY, COMMON ST
SHAREHOLDERS' EQUITY, COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 94 Months Ended | ||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Aug. 31, 2015 | |
Class of Stock [Line Items] | |||||
Stock repurchased during period (shares) | 871,987 | 1,285,541 | |||
Stock Repurchased During Period, Value | $ 39 | $ 18 | |||
2015 1 Billion Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 1,000 | ||||
Stock repurchased during period (shares) | 8,900,000 | ||||
Stock Repurchased During Period, Value | $ 39 | $ 57 | $ 601 |
SHAREHOLDERS' EQUITY , WARRANT
SHAREHOLDERS' EQUITY , WARRANT ACTIVITY (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Class of Warrant or Right, Outstanding | 1,882,517 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 39.06 |
US Treasury CARES Act Loan [Member] | |
Class of Warrant or Right [Line Items] | |
Adjustments to Additional Paid in Capital, Warrant Issued | $ | $ 30 |
US Treasury CARES Act Loan [Member] | |
Class of Warrant or Right [Line Items] | |
Class of Warrant or Right, Outstanding | 427,080 |
CARES Act PSP [Domain] | |
Class of Warrant or Right [Line Items] | |
Class of Warrant or Right, Outstanding | 1,455,437 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 6 | $ 2 | $ 15 | $ 5 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (6) | (18) | 8 | (51) | ||||
AOCI Tax, Attributable to Parent | 116 | 98 | 116 | 98 | $ 117 | $ 122 | $ 93 | $ 83 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (365) | (308) | (365) | (308) | (365) | (388) | (292) | (262) |
Reclassification from AOCI, Current Period, Tax | (2) | (4) | 1 | |||||
Income tax effect | 1 | 4 | (2) | 14 | ||||
Marketable Securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2 | 2 | 7 | 4 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (7) | (22) | 9 | (64) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (64) | (64) | (64) | (64) | (59) | (80) | (44) | (4) |
AOCI Employee Benefit Plan | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4 | 0 | 8 | 1 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (311) | (251) | (311) | (251) | (315) | (319) | (251) | (252) |
AOCI - Interest Rate Derivatives | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1 | 4 | (1) | 13 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 10 | $ 7 | $ 10 | $ 7 | $ 9 | $ 11 | $ 3 | $ (6) |
OPERATING SEGMENT INFORMATION_2
OPERATING SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,838 | $ 2,658 | $ 5,034 | $ 4,339 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 1,928 | 1,695 | 3,645 | 3,231 |
Economic fuel | 573 | 776 | 1,238 | 1,123 |
Total Operating Expenses | 2,501 | 2,471 | 4,883 | 4,354 |
Nonoperating Income (Expense) | ||||
Interest income | 22 | 11 | 39 | 18 |
Interest expense | (28) | (26) | (56) | (53) |
Interest capitalized | 7 | 3 | 14 | 5 |
Other—net | (7) | 10 | (16) | 24 |
Nonoperating Income (Expense) | (12) | (2) | (25) | (6) |
Costs and Expenses, Total | $ 2,501 | $ 2,471 | $ 4,883 | $ 4,354 |
Pretax Margin, Adjusted | 18.30% | 14% | 8% | 3.10% |
Pretax Margin, GAAP | 11.50% | 7% | 2.50% | (0.50%) |
Mileage Plan Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 438 | $ 422 | $ 824 | $ 722 |
Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,838 | 2,658 | 5,034 | 4,339 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 1,742 | 1,549 | 3,395 | 3,010 |
Economic fuel | 572 | 736 | 1,217 | 1,190 |
Total Operating Expenses | 2,314 | 2,285 | 4,612 | 4,200 |
Nonoperating Income (Expense) | ||||
Nonoperating Income (Expense) | (6) | (2) | (19) | (6) |
Income (loss) before income tax | 518 | 371 | 403 | 133 |
Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,453 | 2,251 | 4,343 | 3,651 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 1,468 | 1,262 | 2,858 | 2,456 |
Economic fuel | 490 | 617 | 1,051 | 998 |
Total Operating Expenses | 1,958 | 1,879 | 3,909 | 3,454 |
Nonoperating Income (Expense) | ||||
Nonoperating Income (Expense) | 3 | 3 | (3) | 4 |
Income (loss) before income tax | 498 | 375 | 431 | 201 |
Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 382 | 406 | 687 | 686 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 279 | 289 | 535 | 551 |
Economic fuel | 81 | 119 | 166 | 192 |
Total Operating Expenses | 360 | 408 | 701 | 743 |
Nonoperating Income (Expense) | ||||
Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Income (loss) before income tax | 22 | (2) | (14) | (57) |
Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 92 | 101 | 170 | 195 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 87 | 98 | 171 | 197 |
Economic fuel | 0 | 0 | 0 | 0 |
Total Operating Expenses | 87 | 98 | 171 | 197 |
Nonoperating Income (Expense) | ||||
Nonoperating Income (Expense) | (10) | (5) | (18) | (10) |
Income (loss) before income tax | (5) | (2) | (19) | (12) |
Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | (89) | (100) | (166) | (193) |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | (92) | (100) | (169) | (194) |
Economic fuel | 1 | 0 | 0 | 0 |
Total Operating Expenses | (91) | (100) | (169) | (194) |
Nonoperating Income (Expense) | ||||
Nonoperating Income (Expense) | 1 | 0 | 2 | 0 |
Income (loss) before income tax | 3 | 0 | 5 | 1 |
Special Charges [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Operating Expenses, Excluding Fuel | 186 | 146 | 250 | 221 |
Economic fuel | 1 | 40 | 21 | (67) |
Total Operating Expenses | 187 | 186 | 271 | 154 |
Nonoperating Income (Expense) | ||||
Nonoperating Income (Expense) | (6) | 0 | (6) | 0 |
Income (loss) before income tax | (193) | (186) | (277) | (154) |
Passenger [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,598 | 2,418 | 4,582 | 3,929 |
Passenger [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,598 | 2,418 | 4,582 | 3,929 |
Passenger [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,228 | 2,028 | 3,918 | 3,271 |
Passenger [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 370 | 390 | 664 | 658 |
Passenger [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Passenger [Member] | Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Passenger [Member] | Special Charges [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Capacity Purchase Agreements [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 92 | 101 | 170 | 195 |
Capacity Purchase Agreements [Member] | Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | (92) | (101) | (170) | (195) |
Capacity Purchase Agreements [Member] | Special Charges [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Mileage plan other revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 170 | 175 | 324 | 287 |
Mileage plan other revenue [Member] | Mileage Plan Revenue [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 170 | 175 | 324 | 287 |
Mileage plan other revenue [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 170 | 175 | 324 | 287 |
Mileage plan other revenue [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 158 | 159 | 301 | 259 |
Mileage plan other revenue [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 12 | 16 | 23 | 28 |
Mileage plan other revenue [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Mileage plan other revenue [Member] | Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Mileage plan other revenue [Member] | Special Charges [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Cargo and Freight [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 70 | 65 | 128 | 123 |
Cargo and Freight [Member] | Air Group Adjusted [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 70 | 65 | 128 | 123 |
Cargo and Freight [Member] | Alaska Mainline [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 67 | 64 | 124 | 121 |
Cargo and Freight [Member] | Alaska Regional [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Cargo and Freight [Member] | Horizon [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Cargo and Freight [Member] | Consolidating and Other [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3 | 1 | 4 | 2 |
Cargo and Freight [Member] | Special Charges [Member] | ||||
Operating Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 | $ 0 | $ 0 |
OPERATING SEGMENT INFORMATION,
OPERATING SEGMENT INFORMATION, ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Total assets | $ 14,829 | $ 14,186 |
Alaska Airlines [Member] | ||
Total assets | 20,311 | 19,733 |
Horizon [Member] | ||
Total assets | 1,285 | 1,157 |
Consolidating and Other [Member] | ||
Total assets | $ (6,767) | $ (6,704) |
Uncategorized Items - alk-20230
Label | Element | Value |
Secured by aircraft [Member] | Subsequent Event [Member] | ||
Subsequent Events [Text Block] | us-gaap_SubsequentEventsTextBlock | Subsequent to quarter end, the Company executed an amendment to one of its aircraft-backed credit facilities, extending the term of the agreement from June 2024 to June 2026 and increasing the size of the facility from $250 million to $400 million. There were no changes to the minimum unrestricted cash and marketable securities requirement. |
Variable rate notes payable due through 2029 [Member] [Member] | Subsequent Event [Member] | ||
Subsequent Events [Text Block] | us-gaap_SubsequentEventsTextBlock | Subsequent to quarter end, Alaska completed a refinancing of an existing 2018 variable-rate loan facility with a total commitment amount of $117 million. The facility is secured by B737 aircraft. |