OPERATING SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Operating Segment Information

OPERATING SEGMENT INFORMATION

Management views the business in three operating segments.

Alaska Mainline - The 737 part of Alaska's business with average stage lengths greater than 1,000 miles.

Alaska Regional - Alaska's shorter distance network. In this segment, we record actual on board passenger revenue, less costs such as fuel, distribution costs, and payments made to Horizon, SkyWest and PenAir under CPAs.

Horizon - Horizon operates regional aircraft. All of Horizon's capacity is sold to Alaska under a CPA.   Expenses included those typically borne by regional airlines such as crew costs, ownership costs, and maintenance costs.

The following table reports “Air Group adjusted,” which is not a measure determined in accordance with GAAP. The Company's chief operating decision-makers and others in management use this measure to evaluate operational performance and determine resource allocations. Adjustments are further explained below in reconciling to consolidated GAAP results. All inter-company revenues and expenses between Alaska and Horizon are eliminated in consolidation.

Operating segment information is as follows (in millions):

	Three Months Ended March 31, 2012
	Alaska
	Mainline			Regional		Horizon			Consolidating			Air Group Adjusted(a)			Special Items			Consolidated
Operating revenues
Passenger
Mainline	$	763.7		$	—	$	—		$	—		$	763.7		$	—		$	763.7
Regional	—			186.7		—			—			186.7			—			186.7
Total passenger revenues	763.7			186.7		—			—			950.4			—			950.4
CPA revenues	—			—		87.0			(87.0		)	—			—			—
Freight and mail	23.5			0.9		—			—			24.4			—			24.4
Other-net	62.5			0.1		1.9			—			64.5			—			64.5
Total operating revenues	849.7			187.7		88.9			(87.0		)	1,039.3			—			1,039.3
Operating expenses
Operating expenses, excluding fuel	519.6			136.8		78.3			(86.6		)	648.1			—			648.1
Economic fuel(c)	294.4			44.3		—			—			338.7			(19.9		)	318.8
Total operating expenses	814.0			181.1		78.3			(86.6		)	986.8			(19.9		)	966.9
Nonoperating income (expense)
Interest income	4.9			—		—			—			4.9			—			4.9
Interest expense	(12.6		)	—		(4.0		)	—			(16.6		)	—			(16.6		)
Other	5.3			—		0.4			0.2			5.9			—			5.9
	(2.4		)	—		(3.6		)	0.2			(5.8		)	—			(5.8		)
Income (loss) before income tax	$	33.3		$	6.6	$	7.0		$	(0.2	)	$	46.7		$	19.9		$	66.6

	Three Months Ended March 31, 2011
	Alaska
	Mainline			Regional		Horizon			Consolidating			Air Group Adjusted(a)			Special Items			Consolidated
Operating revenues
Passenger
Mainline	$	702.4		$	—	$	—		$	—		$	702.4		$	—		$	702.4
Regional	—			176.5		—			—			176.5			—			176.5
Total passenger revenues	702.4			176.5		—			—			878.9			—			878.9
CPA revenues	—			—		94.6			(94.6		)	—			—			—
Freight and mail	23.9			1.0		—			—			24.9			—			24.9
Other-net	59.0			—		2.4			—			61.4			—			61.4
Total operating revenues	785.3			177.5		97.0			(94.6		)	965.2			—			965.2
Operating expenses
Operating expenses, excluding fuel(b)	497.7			132.9		90.2			(94.0		)	626.8			10.1			636.9
Economic fuel(c)	238.4			38.1		—			—			276.5			(82.0		)	194.5
Total operating expenses	736.1			171.0		90.2			(94.0		)	903.3			(71.9		)	831.4
Nonoperating income (expense)
Interest income	8.7			—		—			(1.1		)	7.6			—			7.6
Interest expense	(19.7		)	—		(4.7		)	1.0			(23.4		)	—			(23.4		)
Other	2.1			—		0.8			(0.2		)	2.7			—			2.7
	(8.9		)	—		(3.9		)	(0.3		)	(13.1		)	—			(13.1		)
Income (loss) before income tax	$	40.3		$	6.5	$	2.9		$	(0.9	)	$	48.8		$	71.9		$	120.7

^(a)  The adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocations and does not include certain charges.

^(b)  Refer to Note 12 for a summary of special charges.

^(c)  Represents adjustments to reflect the timing of gain or loss recognition resulting from mark-to-market fuel-hedge accounting.

Total assets were as follows (in millions):

	March 31, 2012			December 31, 2011
Alaska(a)	$	4,894.2		$	4,803.3
Horizon	851.4			846.5
Parent company	1,506.5			1,583.5
Elimination of inter-company accounts	(1,870.1		)	(2,038.3		)
Consolidated	$	5,382.0		$	5,195.0

^(a)  There are no assets associated with purchased capacity flying at Alaska.