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OPERATING SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
OPERATING SEGMENT INFORMATION OPERATING SEGMENT INFORMATION
Alaska Air Group has two operating airlines – Alaska and Horizon. Each is regulated by the U.S. Department of Transportation’s Federal Aviation Administration. Alaska has CPAs for regional capacity with Horizon, as well as with SkyWest, under which Alaska receives all passenger revenues.

Under U.S. GAAP, operating segments are defined as components of a business for which there is discrete financial information that is regularly assessed by the Chief Operating Decision Maker (CODM) in making resource allocation decisions. Financial performance for the operating airlines and CPAs is managed and reviewed by the Company's CODM as part of three reportable operating segments:
•Mainline - includes scheduled air transportation on Alaska's Boeing or Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, and Costa Rica.
•Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S. under a CPA. This segment includes the actual revenues and expenses associated with regional flying, as well as an allocation of corporate overhead incurred by Air Group on behalf of the regional operations.
•Horizon - includes the capacity sold to Alaska under CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs and maintenance costs.

The CODM makes resource allocation decisions for these reporting segments based on flight profitability data, aircraft type, route economics and other financial information.

The "Consolidating and Other" column reflects Air Group parent company activity, McGee Air Services, consolidating entries and other immaterial business units of the company. The “Air Group Adjusted” column represents a non-GAAP measure that is used by the Company's CODM to evaluate performance and allocate resources. Adjustments are further explained below in reconciling to consolidated GAAP results.
Operating segment information is as follows (in millions):
Three Months Ended June 30, 2021
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues   
Passenger revenues$1,072 $280 $— $— $1,352 $— $1,352 
CPA revenues— — 111 (111)— — — 
Mileage Plan other revenue102 16 — — 118 — 118 
Cargo and other55 — — 2 57 — 57 
Total Operating Revenues1,229 296 111 (109)1,527 — 1,527 
Operating Expenses
Operating expenses, excluding fuel984 286 91 (127)1,234 (530)704 
Economic fuel253 66 — 1 320 (46)274 
Total Operating Expenses1,237 352 91 (126)1,554 (576)978 
Nonoperating Income (Expense)
Interest income6 — — — 6 — 6 
Interest expense(34)— (5)— (39)— (39)
Interest capitalized3 — — — 3 — 3 
Other - net9 — — — 9 — 9 
Total Nonoperating Income (Expense)(16)— (5)— (21)— (21)
Income (Loss) Before Income Tax$(24)$(56)$15 $17 $(48)$576 $528 
Three Months Ended June 30, 2020
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues
Passenger revenues$225 $84 $— $— $309 $— $309 
CPA revenues— — 81 (81)— — — 
Mileage Plan other revenue56 17 — — 73 — 73 
Cargo and other39 — — — 39 — 39 
Total Operating Revenues320 101 81 (81)421 — 421 
Operating Expenses
Operating expenses, excluding fuel746 210 68 (82)942 (292)650 
Economic fuel45 20 — — 65 (6)59 
Total Operating Expenses791 230 68 (82)1,007 (298)709 
Nonoperating Income (Expense)
Interest income11 — — (4)7 — 7 
Interest expense(18)— (5)6 (17)— (17)
Interest capitalized1 — — — 1 — 1 
Other - net6 — — — 6 — 6 
Total Nonoperating Income (Expense)— — (5)2 (3)— (3)
Income (Loss) Before Income Tax$(471)$(129)$8 $3 $(589)$298 $(291)
Six Months Ended June 30, 2021
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues   
Passenger revenues$1,578 $433 $— $— $2,011 $— $2,011 
CPA revenues— — 215 (215)— — — 
Mileage Plan other revenue182 30 — — 212 — 212 
Cargo and other99 — — 2 101 — 101 
Total Operating Revenues1,859 463 215 (213)2,324 — 2,324 
Operating Expenses
Operating expenses, excluding fuel1,877 551 179 (236)2,371 (912)1,459 
Economic fuel427 118 — — 545 (68)477 
Total Operating Expenses2,304 669 179 (236)2,916 (980)1,936 
Nonoperating Income (Expense)
Interest income13 — — — 13 — 13 
Interest expense(61)— (10)— (71)— (71)
Interest capitalized6 — — — 6 — 6 
Other - net19 — — — 19 — 19 
Total Nonoperating Income (Expense)(23)— (10)— (33)— (33)
Income (Loss) Before Income Tax$(468)$(206)$26 $23 $(625)$980 $355 
Six Months Ended June 30, 2020
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues
Passenger revenues$1,459 $331 $— $— $1,790 $— $1,790 
CPA revenues— — 186 (186)— — — 
Mileage Plan other revenue154 28 — — 182 — 182 
Cargo and other83 — — 2 85 — 85 
Total Operating Revenues1,696 359 186 (184)2,057 — 2,057 
Operating Expenses
Operating expenses, excluding fuel1,905 479 160 (192)2,352 (129)2,223 
Economic fuel358 82 — — 440 3 443 
Total Operating Expenses2,263 561 160 (192)2,792 (126)2,666 
Nonoperating Income (Expense)
Interest income25 — — (9)16 — 16 
Interest expense(30)— (10)10 (30)— (30)
Interest capitalized4 — — — 4 — 4 
Other - net12 — — (1)11 — 11 
Total Nonoperating Income (Expense)11 — (10)— 1 — 1 
Income (Loss) Before Income Tax$(556)$(202)$16 $8 $(734)$126 $(608)

(a)Includes consolidating entries, Air Group parent company, McGee Air Services, and other immaterial business units.
(b)The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocation and excludes certain charges. See Note A in the accompanying pages for further information.
(c)Includes Payroll Support Program wage offsets, special items and mark-to-market fuel hedge accounting adjustments.
Total assets were as follows (in millions):
June 30, 2021December 31, 2020
Mainline$19,920 $19,754 
Horizon1,251 1,170 
Consolidating & Other(6,515)(6,878)
Consolidated$14,656 $14,046