COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Quarterly Report | true | |
Entity File Number | 1-8957 | |
Entity Registrant Name | ALASKA AIR GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 91-1292054 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Trading Symbol | ALK | |
Entity Address, Address Line One | 19300 International Boulevard, | |
Entity Address, City or Town | Seattle, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98188 | |
City Area Code | (206) | |
Local Phone Number | 392-5040 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 126,891,838 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000766421 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 885 | $ 281 |
Marketable securities | 1,393 | 1,510 |
Total cash and marketable securities | 2,278 | 1,791 |
Receivables - net | 384 | 383 |
Inventories and supplies - net | 104 | 116 |
Prepaid expenses | 177 | 176 |
Other Assets, Current | 186 | 239 |
Total Current Assets | 3,129 | 2,705 |
Property and Equipment | ||
Aircraft and other flight equipment | 10,363 | 10,425 |
Other property and equipment | 1,839 | 1,814 |
Deposits for future flight equipment | 431 | 491 |
Property and Equipment Total | 12,633 | 12,730 |
Less accumulated depreciation and amortization | 4,439 | 4,342 |
Total Property and Equipment - Net | 8,194 | 8,388 |
Operating Lease, Right-of-Use Asset | 1,174 | 1,195 |
Goodwill | 2,033 | 2,033 |
Other noncurrent assets | 283 | 292 |
Other Assets | 3,490 | 3,520 |
Total Assets | 14,813 | 14,613 |
Current Liabilities | ||
Accounts payable | 181 | 207 |
Accrued wages, vacation and payroll taxes | 481 | 584 |
Other accrued liabilities | 791 | 800 |
Operating Lease, Liability, Current | 158 | 158 |
Current portion of long-term debt | 301 | 353 |
Total Current Liabilities | 4,829 | 4,459 |
Long-Term Debt, Net of Current Portion | 2,264 | 2,182 |
Noncurrent Liabilities | ||
Operating Lease, Liability, Noncurrent | 1,098 | 1,125 |
Deferred Income Tax Liabilities, Net | 649 | 695 |
Deferred revenue, noncurrent | 1,320 | 1,382 |
Obligation for pension and postretirement medical benefits | 365 | 362 |
Other liabilities | 311 | 295 |
Other Liabilities and Credits Totals | 3,743 | 3,859 |
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 | $ 707 | $ 695 |
Treasury Stock, Common, Shares | 13,431,563 | 12,870,477 |
Treasury stock (common), at cost: 2020 - 9,349,944 shares; 2020 - 9,349,944 shares | $ (840) | $ (819) |
Accumulated other comprehensive loss | (294) | (299) |
Retained earnings | 4,403 | 4,535 |
Total Shareholders' Equity | 3,977 | 4,113 |
Total Liabilities and Shareholders' Equity | 14,813 | 14,613 |
Mileage Plan Revenue [Member] | ||
Current Liabilities | ||
Contract with Customer, Liability, Current | 1,313 | 1,221 |
Contract with Customer, Liability, Current | 1,313 | 1,221 |
Passenger Revenue [Member] | ||
Current Liabilities | ||
Contract with Customer, Liability, Current | 1,604 | 1,136 |
Contract with Customer, Liability, Current | $ 1,604 | $ 1,136 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 139,137,527 | 138,960,830 |
Common stock, shares outstanding (shares) | 125,705,964 | 126,090,353 |
Treasury Stock, Common, Shares | 13,431,563 | 12,870,477 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,232 | $ 2,196 |
Operating Expenses | ||
Wages and benefits | 804 | 723 |
Variable incentive pay | 44 | 47 |
Aircraft fuel, including hedging gains and losses | 565 | 665 |
Aircraft maintenance | 122 | 124 |
Aircraft rent | 47 | 59 |
Landing fees and other rentals | 165 | 152 |
Contracted services | 97 | 95 |
Selling expenses | 77 | 66 |
Depreciation and amortization | 126 | 104 |
Food and beverage service | 58 | 54 |
Third-party regional carrier expense | 54 | 52 |
Other | 205 | 177 |
Special items - Impairment charges and other | 26 | 13 |
Special items - merger-related costs | 8 | 0 |
Special items - labor and related | 51 | |
Costs and Expenses, Total | 2,398 | 2,382 |
Operating Income (Loss) | (166) | (186) |
Nonoperating Income (Expense) | ||
Interest income | 17 | 17 |
Interest expense | (35) | (28) |
Interest capitalized | 6 | 7 |
Other—net | 0 | (9) |
Nonoperating Income (Expense) Total | (12) | (13) |
Income (Loss) Before Income Tax | (178) | (199) |
Income tax (benefit) expense | (46) | (57) |
Net Income (Loss) | $ (132) | $ (142) |
Basic Earnings Per Share (usd per share) | $ (1.05) | $ (1.11) |
Diluted Earnings Per Share (usd per share) | $ (1.05) | $ (1.11) |
Shares used for computation: | ||
Basic shares (shares) | 125,970,000 | 127,501,000 |
Diluted shares (shares) | 125,970,000 | 127,501,000 |
Passenger [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,004 | $ 1,984 |
Mileage plan other revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 164 | 154 |
Cargo and Freight [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 64 | 58 |
Passenger Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,004 | 1,984 |
Passenger Revenue [Member] | Passenger [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,004 | 1,984 |
Mileage Plan Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 412 | 386 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 164 | 154 |
Cargo and Other Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 64 | 58 |
Cargo and Other Revenue [Member] | Cargo and Freight [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 64 | $ 58 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ (132) | $ (142) |
Related to marketable securities: | ||
Total | 1 | 21 |
Related to employee benefit plans: | ||
Total | 3 | 4 |
Related to interest rate derivative instruments: | ||
Total | 1 | (2) |
Comprehensive Income (Loss) | (127) | (119) |
Other Comprehensive Income (Loss), Net of Tax | $ 5 | $ 23 |
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) | 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 | |||||
Common stock, shares outstanding (shares) | 127.243 | |||||
Common stock, shares outstanding (shares) | 126,090,353 | 126.090 | ||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2023 | $ 4,113 | $ 1 | 695 | (819) | (299) | 4,535 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (132) | (132) | ||||
Other Comprehensive Income (Loss), Net of Tax | 5 | 5 | ||||
Treasury Stock, Shares, Acquired | 0.561 | |||||
Stock Repurchased During Period, Value | (21) | 21 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 15 | 15 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (3) | (3) | ||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2024 | $ 3,977 | $ 1 | $ 707 | $ (840) | $ (294) | $ 4,403 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0.177 | |||||
Common stock, shares outstanding (shares) | 125,705,964 | 125.706 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net Income | $ (132) | $ (142) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 126 | 104 |
Stock-based compensation and other | 19 | 23 |
Special items - fleet transition and other (noncash) | 23 | 13 |
Special items - labor and related (noncash) | 0 | 51 |
Changes in certain assets and liabilities: | ||
Changes in deferred tax provision | (47) | 56 |
Increase (Decrease) in Accounts Receivable | (55) | (44) |
Increase (Decrease) in Contract with Customer, Liability | 468 | 433 |
Increase in deferred revenue | 30 | 46 |
Other - net | (140) | (206) |
Net cash provided by operating activities | 292 | 222 |
Property and equipment additions: | ||
Aircraft and aircraft purchase deposits | 31 | (50) |
Other flight equipment | (44) | (50) |
Other property and equipment | (44) | (24) |
Total property and equipment additions, including capitalized interest | (57) | (124) |
Supplier Proceeds | 162 | 0 |
Purchases of marketable securities | (13) | (201) |
Sales and maturities of marketable securities | 133 | 388 |
Other investing activities | 93 | (3) |
Net cash used in investing activities | 318 | 60 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 149 | 0 |
Common stock repurchases | (20) | (18) |
Long-term debt payments | (102) | (96) |
Other financing activities | (32) | 0 |
Net cash provided by (used in) financing activities | (5) | (114) |
Net increase in cash, cash equivalents, and restricted cash | 605 | 168 |
Cash, cash equivalents, and restricted cash at beginning of year | 308 | 369 |
Cash, cash equivalents, and restricted cash at end of the period | 913 | 537 |
Cash paid during the period for: | ||
Interest (net of amount capitalized) | 35 | 32 |
Non-cash transactions: | ||
Right-of-use assets acquired through operating leases | 13 | 111 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 45 | 0 |
Reconciliation of cash, cash equivalents, and restricted cash at end of the period | ||
Cash and cash equivalents | 885 | 516 |
Restricted cash included in Prepaid expenses, assets held-for-sale and other current assets | 28 | 21 |
Total cash, cash equivalents, and restricted cash at end of the period | $ 913 | $ 537 |
GENERAL AND SUMMARY OF SIGNIFIC
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of March 31, 2024 and the results of operations for the three months ended March 31, 2024 and 2023. Such adjustments were of a normal recurring nature. Certain rows, columns, figures, or percentages may not recalculate due to rounding. 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 months ended March 31, 2024 are not necessarily indicative of operating results for the entire year. Flight 1282 and Boeing 737-9 MAX Grounding As a result of the Flight 1282 accident and the subsequent grounding of Boeing 737-9 MAX (B737-9) aircraft, Air Group's operation and results were significantly impacted. The Company received compensation from Boeing to address the financial damages incurred as a result of the grounding. As part of this compensation, Boeing paid Air Group $162 million in cash during the first quarter. Subsequent to quarter end, Boeing issued Air Group $61 million in supplier credit memos to be used on future Boeing purchases. Compensation received under the agreement is accounted for as a reduction in cost basis of certain B737-9 aircraft. Proceeds received as of March 31, 2024 are reflected within Aircraft and other flight equipment or Deposits for future flight equipment within the condensed consolidated balance sheets. |
Business Combinations, Asset Ac
Business Combinations, Asset Acquisitions, and Joint Venture Formation | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Business Combination Disclosure | On December 2, 2023, the Company entered into a definitive agreement to acquire Hawaiian Holdings, Inc. (Hawaiian). The Company has agreed to pay Hawaiian's shareholders $18.00 per share, or approximately $1.0 billion, in cash for the outstanding shares of Hawaiian. In addition, the Company expects to assume Hawaiian's debt and lease obligations on the date of acquisition. The acquisition has been approved by Hawaiian's shareholders and is subject to final approval by various regulatory bodies. On February 7, 2024, Air Group and Hawaiian each received a request for additional information and documentary material (the “Second Request”) from the Antitrust Division of the Department of Justice (the “DOJ”) in connection with the DOJ’s review of the acquisition. On March 27, 2024, Air Group and Hawaiian entered into a timing agreement with the DOJ pursuant to which they agreed, among other things, not to consummate the acquisition before 90 days following the date on which both parties have certified substantial compliance with the Second Request unless they have received written notice from the DOJ prior to the end of such 90-day period that the DOJ has closed its investigation of the acquisition. In the first quarter of 2024, the Company incurred integration costs of $8 million. These costs are classified as special items within the condensed consolidated statements of operations. The Company expects to continue to incur integration costs as activities supporting the proposed acquisition continue. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | Ticket revenue is recorded as Passenger revenue, and represents the primary source of the Company's revenue. Also included in Passenger revenue 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 level of detail within the Company’s condensed consolidated statements of operations and in this footnote depict the nature, amount, timing, and uncertainty of revenue and how cash flows are affected by economic and other factors. Passenger Ticket and Ancillary Services Revenue Passenger revenue recognized in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2024 2023 Passenger ticket revenue, net of taxes and fees $ 1,648 $ 1,648 Passenger ancillary revenue 108 104 Mileage Plan passenger revenue 248 232 Total Passenger revenue $ 2,004 $ 1,984 Mileage Plan Loyalty Program Mileage Plan revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2024 2023 Mileage Plan passenger revenue $ 248 $ 232 Mileage Plan other revenue 164 154 Total Mileage Plan revenue $ 412 $ 386 Cargo and Other Revenue Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2024 2023 Cargo revenue $ 28 $ 29 Other revenue 36 29 Total Cargo and other revenue $ 64 $ 58 Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $584 million and $485 million from the prior year-end air traffic liability balance for the three months ended March 31, 2024 and 2023. 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 $104 million of such receivables as of March 31, 2024 and $102 million as of December 31, 2023. The table below presents a roll forward of the total frequent flyer liability (in millions): Three Months Ended March 31, 2024 2023 Total Deferred Revenue balance at January 1 $ 2,603 $ 2,497 Travel miles and companion certificate redemption - Passenger revenue (234) (218) Miles redeemed on partner airlines - Other revenue (28) (21) Increase in liability for mileage credits issued 292 285 Total Deferred Revenue balance at March 31 $ 2,633 $ 2,543 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheets (in millions): March 31, 2024 December 31, 2023 Fixed-rate notes payable due through 2029 $ 73 $ 80 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 779 835 Variable-rate notes payable due through 2036 1,128 971 Less debt issuance costs (15) (15) Total debt 2,565 2,471 Less current portion (a) 301 289 Long-term debt, less current portion $ 2,264 $ 2,182 Weighted-average fixed-interest rate 3.3 % 3.4 % Weighted-average variable-interest rate 6.8 % 6.8 % (a) Excludes finance lease liabilities recognized within Current portion of long-term debt and finance leases in the condensed consolidated balance sheets as of December 31, 2023. Approximately $240 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at March 31, 2024, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.6%. During the three months ended March 31, 2024, the Company incurred debt of $195 million from multiple lenders and sources. New debt includes proceeds of $150 million which is secured by aircraft. Additionally, $45 million of debt was incurred as part of an agreement to finance certain E175 deliveries. Debt from this agreement is reflected as a non-cash transaction within the supplemental disclosures in the condensed consolidated statements of cash flows. During the three months ended March 31, 2024, the Company made debt payments of $102 million. Debt Maturity At March 31, 2024, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2024 $ 201 2025 365 2026 322 2027 646 2028 131 Thereafter 915 Total Principal Payments $ 2,580 Bank Lines of Credit Alaska has three credit facilities totaling $626 million as of March 31, 2024. One credit facility is 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 is for $400 million, expires in June 2026, and is secured by aircraft. Both facilities have variable interest rates based on SOFR plus a specified margin. A third credit facility is 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 March 31, 2024. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Net periodic benefit costs for qualified defined-benefit plans include the following (in millions): Three Months Ended March 31, 2024 2023 Service cost $ 7 $ 7 Pension expense included in Wages and benefits 7 7 Interest cost 27 27 Expected return on assets (32) (28) Recognized actuarial loss 5 6 Pension expense included in Non-operating Income (Expense) $ — $ 5 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Common Stock Repurchase In August 2015, the Board of Directors authorized a $1 billion share repurchase program. As of March 31, 2024, the Company has repurchased 11.7 million shares for $709 million under this program. Share purchase activity (in millions, except share amounts): Three Months Ended March 31, 2024 2023 Shares Amount Shares Amount 2015 Repurchase Program—$1 billion 561,086 $ 21 413,554 $ 18 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Note | ACCUMULATED OTHER COMPREHENSIVE LOSS A roll forward of the amounts included in accumulated other comprehensive loss is shown below for the three months ended March 31, 2024 and 2023: Marketable Securities Employee Benefit Plan Interest Rate Derivatives Tax Effect Total Balance at December 31, 2023 $ (46) $ (358) $ 8 $ 97 $ (299) Change in value 1 — 1 — 2 Reclassifications into earnings — 4 — (1) 3 Balance at March 31, 2024 $ (45) $ (354) $ 9 $ 96 $ (294) Marketable Securities Employee Benefit Plan Interest Rate Derivatives Tax Effect Total Balance at December 31, 2022 $ (104) $ (421) $ 15 $ 122 $ (388) Change in value 20 — (3) (3) 14 Reclassifications into earnings 6 5 — (2) 9 Balance at March 31, 2023 $ (78) $ (416) $ 12 $ 117 $ (365) |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
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 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. Historically, our CODM has reviewed financial performance information for our airline operations and Horizon CPA as part of three reportable operating segments: • Mainline - includes scheduled air transportation on Alaska's Boeing jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas. • Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S., Canada, and Mexico 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. In addition to these reported segments, we have a "Consolidating and Other" column which 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. Over time, our Mainline and Regional airline segments have increasingly been managed as a single component that provides scheduled air transportation for passengers and cargo, and includes our loyalty program. Managing this component in an integrated manner enables our team to leverage our comprehensive network, single route scheduling system, and fleet as a single business to deliver optimized consolidated financial results. In the first quarter of 2024, management began evaluating changes to internal reporting that may change the discrete information that is provided to our CODM in the future to better align with the way the business is managed. Such changes may have an impact on the company’s reportable segments once finalized. We will continue to report using the existing segment structure until changes in our internal reporting have been fully implemented, and a segment analysis has been performed to determine if any changes to reportable segments are indicated. Operating segment information is as follows (in millions): Three Months Ended March 31, 2024 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 1,629 $ 375 $ — $ — $ 2,004 $ — $ 2,004 CPA revenue — — 104 (104) — — — Mileage Plan other revenue 149 15 — — 164 — 164 Cargo and other revenue 62 — — 2 64 — 64 Total Operating Revenue 1,840 390 104 (102) 2,232 — 2,232 Operating Expenses Operating expenses, excluding fuel 1,514 299 88 (102) 1,799 34 1,833 Fuel expense 485 93 — — 578 (13) 565 Total Operating Expenses 1,999 392 88 (102) 2,377 21 2,398 Non-operating Income (Expense) (3) — (11) 2 (12) — (12) Income (Loss) Before Income Tax $ (162) $ (2) $ 5 $ 2 $ (157) $ (21) $ (178) Pretax Margin (7.0) % (8.0) % Three Months Ended March 31, 2023 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 1,673 $ 311 $ — $ — $ 1,984 $ — $ 1,984 CPA revenue — — 78 (78) — — — Mileage Plan other revenue 143 11 — — 154 — 154 Cargo and other revenue 57 — — 1 58 — 58 Total Operating Revenue 1,873 322 78 (77) 2,196 — 2,196 Operating Expenses Operating expenses, excluding fuel 1,390 256 84 (77) 1,653 64 1,717 Fuel expense 561 85 — (1) 645 20 665 Total Operating Expenses 1,951 341 84 (78) 2,298 84 2,382 Non-operating Income (Expense) (6) — (8) 1 (13) — (13) Income (Loss) Before Income Tax $ (84) $ (19) $ (14) $ 2 $ (115) $ (84) $ (199) Pretax Margin (5.2) % (9.1) % |
GENERAL AND SUMMARY OF SIGNIF_2
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2024 | Mar. 31, 2024 | Mar. 31, 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, 2023. In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of March 31, 2024 and the results of operations for the three months ended March 31, 2024 and 2023. Such adjustments were of a normal recurring nature. Certain rows, columns, figures, or percentages may not recalculate due to rounding. 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 months ended March 31, 2024 are not necessarily indicative of operating results for the entire year. Flight 1282 and Boeing 737-9 MAX Grounding As a result of the Flight 1282 accident and the subsequent grounding of Boeing 737-9 MAX (B737-9) aircraft, Air Group's operation and results were significantly impacted. The Company received compensation from Boeing to address the financial damages incurred as a result of the grounding. As part of this compensation, Boeing paid Air Group $162 million in cash during the first quarter. Subsequent to quarter end, Boeing issued Air Group $61 million in supplier credit memos to be used on future Boeing purchases. Compensation received under the agreement is accounted for as a reduction in cost basis of certain B737-9 aircraft. Proceeds received as of March 31, 2024 are reflected within Aircraft and other flight equipment or Deposits for future flight equipment within the condensed consolidated balance sheets. | ||
Supplier compensation [Line Items] | |||
Supplier Proceeds | $ 162 | $ 0 | |
Subsequent Event [Member] | Supplier credit memos [Member] | |||
Supplier compensation [Line Items] | |||
Supplier credit memos | $ 61 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Passenger revenue recognized in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2024 2023 Passenger ticket revenue, net of taxes and fees $ 1,648 $ 1,648 Passenger ancillary revenue 108 104 Mileage Plan passenger revenue 248 232 Total Passenger revenue $ 2,004 $ 1,984 Mileage Plan revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2024 2023 Mileage Plan passenger revenue $ 248 $ 232 Mileage Plan other revenue 164 154 Total Mileage Plan revenue $ 412 $ 386 Cargo and other revenue included in the condensed consolidated statements of operations (in millions): Three Months Ended March 31, 2024 2023 Cargo revenue $ 28 $ 29 Other revenue 36 29 Total Cargo and other revenue $ 64 $ 58 |
Contract with Customer Liabilities | The table below presents a roll forward of the total frequent flyer liability (in millions): Three Months Ended March 31, 2024 2023 Total Deferred Revenue balance at January 1 $ 2,603 $ 2,497 Travel miles and companion certificate redemption - Passenger revenue (234) (218) Miles redeemed on partner airlines - Other revenue (28) (21) Increase in liability for mileage credits issued 292 285 Total Deferred Revenue balance at March 31 $ 2,633 $ 2,543 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Investments Classified by Contractual Maturity Date | Maturities for marketable securities (in millions): March 31, 2024 Cost Basis Fair Value Due in one year or less $ 443 $ 436 Due after one year through five years 939 907 Due after five years 34 31 Due after 10 years 14 13 No maturity date 4 6 Total $ 1,434 $ 1,393 |
Fair Value, by Balance Sheet Grouping | Fair values of financial instruments on the condensed consolidated balance sheets (in millions): March 31, 2024 December 31, 2023 Level 1 Level 2 Total Level 1 Level 2 Total Assets Marketable securities U.S. government and agency securities $ 370 $ — $ 370 $ 387 $ — $ 387 Equity mutual funds 6 — 6 5 — 5 Foreign government bonds — 10 10 — 10 10 Asset-backed securities — 170 170 — 192 192 Mortgage-backed securities — 103 103 — 115 115 Corporate notes and bonds — 695 695 — 763 763 Municipal securities — 39 39 — 38 38 Total Marketable securities 376 1,017 1,393 392 1,118 1,510 Derivative instruments Fuel hedge contracts - call options — 11 11 — 11 11 Interest rate swap agreements — 9 9 — 8 8 Total Assets $ 376 $ 1,037 $ 1,413 $ 392 $ 1,137 $ 1,529 Fixed-rate debt on the condensed consolidated balance sheets and the estimated fair value of long-term fixed-rate debt (in millions): March 31, 2024 December 31, 2023 Fixed-rate debt $ 1,452 $ 1,515 Estimated fair value $ 1,346 $ 1,382 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt obligations on the condensed consolidated balance sheets (in millions): March 31, 2024 December 31, 2023 Fixed-rate notes payable due through 2029 $ 73 $ 80 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 779 835 Variable-rate notes payable due through 2036 1,128 971 Less debt issuance costs (15) (15) Total debt 2,565 2,471 Less current portion (a) 301 289 Long-term debt, less current portion $ 2,264 $ 2,182 Weighted-average fixed-interest rate 3.3 % 3.4 % Weighted-average variable-interest rate 6.8 % 6.8 % (a) Excludes finance lease liabilities recognized within Current portion of long-term debt and finance leases in the condensed consolidated balance sheets as of December 31, 2023. |
Schedule of Maturities of Long-term Debt | At March 31, 2024, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2024 $ 201 2025 365 2026 322 2027 646 2028 131 Thereafter 915 Total Principal Payments $ 2,580 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net periodic benefit costs for qualified defined-benefit plans include the following (in millions): Three Months Ended March 31, 2024 2023 Service cost $ 7 $ 7 Pension expense included in Wages and benefits 7 7 Interest cost 27 27 Expected return on assets (32) (28) Recognized actuarial loss 5 6 Pension expense included in Non-operating Income (Expense) $ — $ 5 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases and Unrecorded Unconditional Purchase Obligtaions | Future minimum contractual payments for commitments as of March 31, 2024 (in millions): Aircraft-Related Commitments (a) Capacity Purchase Agreements and Other Obligations (b) Remainder of 2024 $ 1,164 $ 177 2025 830 230 2026 1,634 223 2027 601 220 2028 151 223 Thereafter 717 515 Total $ 5,097 $ 1,588 (a) Includes contractual commitments for aircraft, engines, and aircraft maintenance, and incorporates the impact of expected delays for certain B737 aircraft as communicated by Boeing. Option deliveries are excluded from minimum commitments until exercise. (b) |
Schedule of Future Aircraft Delivery | Firm Orders Options and Other Rights Total Aircraft Type 2024-2027 2025-2030 2024-2030 B737 80 105 185 E175 7 7 14 Total 87 112 199 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Schedule of Accumulated Other Comprehensive Income (Loss) | A roll forward of the amounts included in accumulated other comprehensive loss is shown below for the three months ended March 31, 2024 and 2023: Marketable Securities Employee Benefit Plan Interest Rate Derivatives Tax Effect Total Balance at December 31, 2023 $ (46) $ (358) $ 8 $ 97 $ (299) Change in value 1 — 1 — 2 Reclassifications into earnings — 4 — (1) 3 Balance at March 31, 2024 $ (45) $ (354) $ 9 $ 96 $ (294) Marketable Securities Employee Benefit Plan Interest Rate Derivatives Tax Effect Total Balance at December 31, 2022 $ (104) $ (421) $ 15 $ 122 $ (388) Change in value 20 — (3) (3) 14 Reclassifications into earnings 6 5 — (2) 9 Balance at March 31, 2023 $ (78) $ (416) $ 12 $ 117 $ (365) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 3 | $ 9 |
Schedule of Stockholders' Equity Note, Warrants or Rights |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 is shown below for the three months ended March 31, 2024 and 2023: Marketable Securities Employee Benefit Plan Interest Rate Derivatives Tax Effect Total Balance at December 31, 2023 $ (46) $ (358) $ 8 $ 97 $ (299) Change in value 1 — 1 — 2 Reclassifications into earnings — 4 — (1) 3 Balance at March 31, 2024 $ (45) $ (354) $ 9 $ 96 $ (294) Marketable Securities Employee Benefit Plan Interest Rate Derivatives Tax Effect Total Balance at December 31, 2022 $ (104) $ (421) $ 15 $ 122 $ (388) Change in value 20 — (3) (3) 14 Reclassifications into earnings 6 5 — (2) 9 Balance at March 31, 2023 $ (78) $ (416) $ 12 $ 117 $ (365) |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | Operating segment information is as follows (in millions): Three Months Ended March 31, 2024 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 1,629 $ 375 $ — $ — $ 2,004 $ — $ 2,004 CPA revenue — — 104 (104) — — — Mileage Plan other revenue 149 15 — — 164 — 164 Cargo and other revenue 62 — — 2 64 — 64 Total Operating Revenue 1,840 390 104 (102) 2,232 — 2,232 Operating Expenses Operating expenses, excluding fuel 1,514 299 88 (102) 1,799 34 1,833 Fuel expense 485 93 — — 578 (13) 565 Total Operating Expenses 1,999 392 88 (102) 2,377 21 2,398 Non-operating Income (Expense) (3) — (11) 2 (12) — (12) Income (Loss) Before Income Tax $ (162) $ (2) $ 5 $ 2 $ (157) $ (21) $ (178) Pretax Margin (7.0) % (8.0) % Three Months Ended March 31, 2023 Mainline Regional Horizon Consolidating & Other (a) Air Group Adjusted (b) Special Items (c) Consolidated Operating Revenue Passenger revenue $ 1,673 $ 311 $ — $ — $ 1,984 $ — $ 1,984 CPA revenue — — 78 (78) — — — Mileage Plan other revenue 143 11 — — 154 — 154 Cargo and other revenue 57 — — 1 58 — 58 Total Operating Revenue 1,873 322 78 (77) 2,196 — 2,196 Operating Expenses Operating expenses, excluding fuel 1,390 256 84 (77) 1,653 64 1,717 Fuel expense 561 85 — (1) 645 20 665 Total Operating Expenses 1,951 341 84 (78) 2,298 84 2,382 Non-operating Income (Expense) (6) — (8) 1 (13) — (13) Income (Loss) Before Income Tax $ (84) $ (19) $ (14) $ 2 $ (115) $ (84) $ (199) Pretax Margin (5.2) % (9.1) % | |
Nonoperating Income (Expense) | $ (12) | $ (13) |
Interest income | 17 | 17 |
Operating Expenses, Excluding Fuel | 1,833 | 1,717 |
Economic fuel | 565 | 665 |
Operating Expenses | 2,398 | 2,382 |
Income (Loss) Before Income Tax | $ (178) | $ (199) |
Pretax Margin, GAAP | (8.00%) | (9.10%) |
Pretax Margin, Adjusted | (7.00%) | (5.20%) |
Business Combinations, Asset _2
Business Combinations, Asset Acquisitions, and Joint Venture Formation (Details) $ / shares in Units, $ in Billions | Dec. 02, 2023 USD ($) $ / shares |
Business Acquisition [Line Items] | |
Business Acquisition, Amount Per Share Paid To Each Holder of Record | $ / shares | $ 18 |
Business Acquisition , Amount Paid To Each Holder Of Record | $ | $ 1 |
FLEET TRANSITION (Details)
FLEET TRANSITION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Impaired Long-Lived Assets [Line Items] | ||
Special items - Impairment charges and other | $ 26 | $ 13 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,232 | $ 2,196 |
Passenger [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,004 | 1,984 |
Mileage plan other revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 164 | 154 |
Passenger Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,004 | 1,984 |
Passenger Revenue [Member] | Passenger ticket revenue, including ticket breakage and net of taxes and fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,648 | 1,648 |
Passenger Revenue [Member] | Passenger ancillary revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 108 | 104 |
Passenger Revenue [Member] | Mileage Plan passenger revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 248 | 232 |
Passenger Revenue [Member] | Passenger [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,004 | 1,984 |
Mileage Plan Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 412 | 386 |
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 | 248 | 232 |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 164 | 154 |
Cargo and Other Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 64 | 58 |
Cargo and Other Revenue [Member] | Cargo revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 28 | 29 |
Cargo and Other Revenue [Member] | Other revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 36 | $ 29 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Deferred Revenue Arrangement [Line Items] | |||
Receivable | $ 384 | $ 383 | |
Costs and Expenses | 2,398 | $ 2,382 | |
Mileage Plan Revenue [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Contract liability revenue recognized | 292 | 285 | |
Receivable | 104 | $ 102 | |
Mileage Plan Revenue [Member] | Mileage plan other revenue [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Contract liability revenue recognized | (28) | (21) | |
Passenger Revenue [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Contract liability revenue recognized | $ 584 | $ 485 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Liabilities Activity (Details) - Mileage Plan Revenue [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Total Deferred Revenue balance at January 1 | $ 2,603 | $ 2,497 |
Revenue recognized | 292 | 285 |
Total Deferred Revenue balance at Sept 30 | 2,633 | 2,543 |
Passenger revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | (234) | (218) |
Mileage plan other revenue [Member] | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | $ (28) | $ (21) |
FAIR VALUE MEASUREMENTS - FAIR
FAIR VALUE MEASUREMENTS - FAIR VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Amortized Cost | $ 1,400 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,413 | $ 1,529 |
Debt Securities, Available-for-sale | 1,393 | 1,510 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 376 | 392 |
Debt Securities, Available-for-sale | 376 | 392 |
Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,037 | 1,137 |
Debt Securities, Available-for-sale | 1,017 | 1,118 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 582 | |
Fuel hedge contracts [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 11 | 11 |
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 | 11 | 11 |
Interest rate swaps agreements [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 9 | 8 |
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 | 9 | 8 |
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 | 370 | 387 |
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 | 370 | 387 |
U.S. government and agency securities [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Equity Funds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 6 | 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 | 6 | 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 | 10 |
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 | 10 |
Asset-backed securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 170 | 192 |
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 | 170 | 192 |
Mortgage-backed securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 103 | 115 |
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 | 103 | 115 |
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 | 695 | 763 |
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 | 695 | 763 |
Municipal securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 39 | 38 |
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 | $ 39 | $ 38 |
FAIR VALUE MEASUREMENTS - MATUR
FAIR VALUE MEASUREMENTS - MATURITIES FOR MARKETABLE SECURITIES (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Cost Basis | |
Due in one year or less | $ 443 |
Due after one year through five years | 939 |
Due after five years through 10 years | 34 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Amortized Cost | 14 |
Debt Securities, Available-for-Sale, Maturity, without Single Maturity Date, Amortized Cost | 4 |
Debt Securities, Available-for-Sale, With Maturities - Cost Basis | 1,434 |
Total | 1,400 |
Fair Value | |
Due in one year or less | 436 |
Due after one year through five years | 907 |
Due after five years through 10 years | 31 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 13 |
Debt Securities, Available-for-Sale, Maturity, without Single Maturity Date, Fair Value | 6 |
Debt Securities, Available-for-Sale, With Maturities - Fair Value | $ 1,393 |
FAIR VALUE MEASUREMENTS - LONG-
FAIR VALUE MEASUREMENTS - LONG-TERM DEBT (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 582 | |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,452 | $ 1,515 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,346 | $ 1,382 |
LONG-TERM DEBT - SCHEDULE OF LO
LONG-TERM DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ (15) | $ (15) | |
Total | 2,565 | 2,471 | |
Less current portion | 301 | 289 | |
Long-term debt, less current portion | $ 2,264 | $ 2,182 | |
Weighted-average fixed-interest rate | 3.30% | 3.40% | |
Weighted-average variable-interest rate | 6.80% | 6.80% | |
Long-term debt payments | $ 102 | $ 96 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 39.06 | ||
Proceeds from issuance of debt | $ 149 | $ 0 | |
Proceeds from Issuance of Long-term Debt | $ 195 | ||
Debt, Weighted Average Interest Rate | 4.60% | ||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt obligations on the condensed consolidated balance sheets (in millions): March 31, 2024 December 31, 2023 Fixed-rate notes payable due through 2029 $ 73 $ 80 Fixed-rate PSP notes payable due through 2031 600 600 Fixed-rate EETC payable due through 2025 & 2027 779 835 Variable-rate notes payable due through 2036 1,128 971 Less debt issuance costs (15) (15) Total debt 2,565 2,471 Less current portion (a) 301 289 Long-term debt, less current portion $ 2,264 $ 2,182 Weighted-average fixed-interest rate 3.3 % 3.4 % Weighted-average variable-interest rate 6.8 % 6.8 % (a) Excludes finance lease liabilities recognized within Current portion of long-term debt and finance leases in the condensed consolidated balance sheets as of December 31, 2023. Approximately $240 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at March 31, 2024, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.6%. During the three months ended March 31, 2024, the Company incurred debt of $195 million from multiple lenders and sources. New debt includes proceeds of $150 million which is secured by aircraft. Additionally, $45 million of debt was incurred as part of an agreement to finance certain E175 deliveries. Debt from this agreement is reflected as a non-cash transaction within the supplemental disclosures in the condensed consolidated statements of cash flows. During the three months ended March 31, 2024, the Company made debt payments of $102 million. Debt Maturity At March 31, 2024, long-term debt principal payments for the next five years and thereafter are as follows (in millions): Total Remainder of 2024 $ 201 2025 365 2026 322 2027 646 2028 131 Thereafter 915 Total Principal Payments $ 2,580 Bank Lines of Credit Alaska has three credit facilities totaling $626 million as of March 31, 2024. One credit facility is 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 is for $400 million, expires in June 2026, and is secured by aircraft. Both facilities have variable interest rates based on SOFR plus a specified margin. A third credit facility is 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 March 31, 2024. | ||
Proceeds from Issuance of Long-term Debt | $ 195 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 626 | ||
Scheduled Debt Payments [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt payments | 102 | ||
Fixed rate notes payable due through 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Total | 73 | $ 80 | |
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 | 779 | 835 | |
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 | 1,128 | $ 971 | |
Proceeds from Issuance of Long-Term Debt, Cash proceeds [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Long-term Debt | 150 | ||
Proceeds from Issuance of Long-term Debt | 150 | ||
Proceeds from Issuance of Long-Term Debt, Noncash proceeds [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Long-term Debt | 45 | ||
Proceeds from Issuance of Long-term Debt | 45 | ||
Variable Rate debt with interest rate swap [Member] | Interest rate swaps agreements [Member] | |||
Debt Instrument [Line Items] | |||
Derivative, Notional Amount | 240 | ||
Derivative, Notional Amount | $ 240 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - FUTURE PAYMENTS (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 201 |
2022 | 365 |
2023 | 322 |
2024 | 646 |
2025 | 131 |
Thereafter | 915 |
Total | $ 2,580 |
LONG-TERM DEBT - LINE OF CREDIT
LONG-TERM DEBT - LINE OF CREDIT (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Line of Credit Facility [Line Items] | ||
Proceeds from Issuance of Secured Debt | $ 149 | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 626 | |
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 | 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 7 | $ 7 |
Interest cost | 27 | 27 |
Expected return on assets | 32 | 28 |
Recognized actuarial loss (gain) | (5) | (6) |
Wages and Benefits [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Net pension expense | 7 | 7 |
Nonoperating Income (Expense) [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Net pension expense | $ 0 | $ 5 |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) aircraft | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 199 |
Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 87 |
Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 112 |
Maximum | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 160 |
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 | 185 |
B737 MAX [Member] | Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 80 |
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 | 14 |
E175 [Member] | Firm aircraft commitment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 7 |
E175 [Member] | Aircraft purchase option | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Committed to Purchase (in Aircraft) | aircraft | 7 |
Aircraft-related Commitments [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of 2023 | $ 1,164 |
2024 | 830 |
2025 | 1,634 |
2026 | 601 |
2027 | 151 |
Thereafter | 717 |
Unrecorded Unconditional Purchase Obligation | 5,097 |
CPA and Other [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of 2023 | 177 |
2024 | 230 |
2025 | 223 |
2026 | 220 |
2027 | 223 |
Thereafter | 515 |
Unrecorded Unconditional Purchase Obligation | 1,588 |
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 | 94 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Aug. 31, 2015 | |
Class of Stock [Line Items] | ||||
Stock repurchased during period (shares) | 561,086 | 413,554 | ||
Stock Repurchased During Period, Value | $ 21 | $ 18 | ||
2015 1 Billion Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 1,000 | |||
Stock repurchased during period (shares) | 11,700,000 | |||
Stock Repurchased During Period, Value | $ 21 | $ 709 |
SHAREHOLDERS' EQUITY , WARRANT
SHAREHOLDERS' EQUITY , WARRANT ACTIVITY (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2024 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 | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 3 | $ 9 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 2 | 14 | ||
AOCI Tax, Attributable to Parent | 96 | 117 | $ 97 | $ 122 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (294) | (365) | (299) | (388) |
Reclassification from AOCI, Current Period, Tax | (1) | (2) | ||
Income tax effect | 0 | (3) | ||
Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent | (45) | (78) | (46) | (104) |
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 1 | 20 | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 0 | 6 | ||
AOCI Employee Benefit Plan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent | (354) | (416) | (358) | (421) |
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 0 | 0 | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 4 | 5 | ||
AOCI - Interest Rate Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent | 9 | 12 | $ 8 | $ 15 |
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 1 | (3) | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | $ 0 | $ 0 |
OPERATING SEGMENT INFORMATION_2
OPERATING SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,232 | $ 2,196 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 1,833 | 1,717 |
Economic fuel | 565 | 665 |
Total Operating Expenses | 2,398 | 2,382 |
Nonoperating Income (Expense) | ||
Interest income | 17 | 17 |
Interest expense | (35) | (28) |
Interest capitalized | 6 | 7 |
Other—net | 0 | (9) |
Nonoperating Income (Expense) | (12) | (13) |
Costs and Expenses, Total | $ 2,398 | $ 2,382 |
Pretax Margin, Adjusted | (7.00%) | (5.20%) |
Pretax Margin, GAAP | (8.00%) | (9.10%) |
Mileage Plan Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 412 | $ 386 |
Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,232 | 2,196 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 1,799 | 1,653 |
Economic fuel | 578 | 645 |
Total Operating Expenses | 2,377 | 2,298 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | (12) | (13) |
Income (loss) before income tax | (157) | (115) |
Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,840 | 1,873 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 1,514 | 1,390 |
Economic fuel | 485 | 561 |
Total Operating Expenses | 1,999 | 1,951 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | (3) | (6) |
Income (loss) before income tax | (162) | (84) |
Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 390 | 322 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 299 | 256 |
Economic fuel | 93 | 85 |
Total Operating Expenses | 392 | 341 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | 0 | 0 |
Income (loss) before income tax | (2) | (19) |
Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 104 | 78 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 88 | 84 |
Economic fuel | 0 | 0 |
Total Operating Expenses | 88 | 84 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | (11) | (8) |
Income (loss) before income tax | 5 | (14) |
Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (102) | (77) |
Operating expenses | ||
Operating Expenses, Excluding Fuel | (102) | (77) |
Economic fuel | 0 | (1) |
Total Operating Expenses | (102) | (78) |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | 2 | 1 |
Income (loss) before income tax | 2 | 2 |
Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Operating expenses | ||
Operating Expenses, Excluding Fuel | 34 | 64 |
Economic fuel | (13) | 20 |
Total Operating Expenses | 21 | 84 |
Nonoperating Income (Expense) | ||
Nonoperating Income (Expense) | 0 | 0 |
Income (loss) before income tax | (21) | (84) |
Passenger [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,004 | 1,984 |
Passenger [Member] | Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,004 | 1,984 |
Passenger [Member] | Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,629 | 1,673 |
Passenger [Member] | Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 375 | 311 |
Passenger [Member] | Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Passenger [Member] | Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Passenger [Member] | Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Capacity Purchase Agreements [Member] | Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 104 | 78 |
Capacity Purchase Agreements [Member] | Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (104) | (78) |
Capacity Purchase Agreements [Member] | Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Mileage plan other revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 164 | 154 |
Mileage plan other revenue [Member] | Mileage Plan Revenue [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 164 | 154 |
Mileage plan other revenue [Member] | Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 164 | 154 |
Mileage plan other revenue [Member] | Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 149 | 143 |
Mileage plan other revenue [Member] | Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 15 | 11 |
Mileage plan other revenue [Member] | Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Mileage plan other revenue [Member] | Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Mileage plan other revenue [Member] | Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Cargo and Freight [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 64 | 58 |
Cargo and Freight [Member] | Air Group Adjusted [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 64 | 58 |
Cargo and Freight [Member] | Alaska Mainline [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 62 | 57 |
Cargo and Freight [Member] | Alaska Regional [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Cargo and Freight [Member] | Horizon [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Cargo and Freight [Member] | Consolidating and Other [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2 | 1 |
Cargo and Freight [Member] | Special Charges [Member] | ||
Operating Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 |
OPERATING SEGMENT INFORMATION,
OPERATING SEGMENT INFORMATION, ASSETS (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Total assets | $ 14,813 | $ 14,613 |
Alaska Airlines [Member] | ||
Total assets | 20,140 | 19,937 |
Horizon [Member] | ||
Total assets | 1,382 | 1,352 |
Consolidating and Other [Member] | ||
Total assets | $ (6,709) | $ (6,676) |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock Compensation Plan Member | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,800 | 2,400 |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200 | 400 |