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OPERATING SEGMENT INFORMATION
 9 Months Ended
Sep. 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, and SkyWest, under which Alaska receives all passenger revenues.

Under U.S. GAAP, operating segments are defined as components of a business for which there is discrete financial information that is regularly assessed by the Chief Operating Decision Maker (CODM) in making resource allocation decisions. Financial performance for the operating airlines and CPAs is managed and reviewed by the Company's CODM as part of three reportable operating segments:
•Mainline - includes scheduled air transportation on Alaska's Boeing or Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, 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 September 30, 2021
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues   
Passenger revenues$1,425 $349 $— $— $1,774 $— $1,774 
CPA revenues— — 107 (107)— — — 
Mileage Plan other revenue105 15 — — 120 — 120 
Cargo and other58 — — 1 59 — 59 
Total Operating Revenues1,588 364 107 (106)1,953 — 1,953 
Operating Expenses
Operating expenses, excluding fuel1,060 288 93 (113)1,328 (9)1,319 
Economic fuel299 77 — — 376 — 376 
Total Operating Expenses1,359 365 93 (113)1,704 (9)1,695 
Nonoperating Income (Expense)
Interest income7 — — (1)6 — 6 
Interest expense(25)— (6)1 (30)— (30)
Interest capitalized2 — — 1 3 — 3 
Other - net8 — — — 8 — 8 
Total Nonoperating Income (Expense)(8)— (6)1 (13)— (13)
Income (Loss) Before Income Tax$221 $(1)$8 $8 $236 $9 $245 
Three Months Ended September 30, 2020
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues
Passenger revenues$401 $171 $— $— $572 $— $572 
CPA revenues— — 95 (95)— — — 
Mileage Plan other revenue65 19 — — 84 — 84 
Cargo and other45 — — — 45 — 45 
Total Operating Revenues511 190 95 (95)701 — 701 
Operating Expenses
Operating expenses, excluding fuel872 248 78 (97)1,101 46 1,147 
Economic fuel90 38 — — 128 (3)125 
Total Operating Expenses962 286 78 (97)1,229 43 1,272 
Nonoperating Income (Expense)
Interest income8 — — (1)7 — 7 
Interest expense(28)— (6)— (34)— (34)
Interest capitalized4 — — — 4 — 4 
Other - net4 — — 1 5 — 5 
Total Nonoperating Income (Expense)(12)— (6)— (18)— (18)
Income (Loss) Before Income Tax$(463)$(96)$11 $2 $(546)$(43)$(589)
Nine Months Ended September 30, 2021
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues   
Passenger revenues$3,003 $782 $— $— $3,785 $— $3,785 
CPA revenues— — 322 (322)— — — 
Mileage Plan other revenue287 45 — — 332 — 332 
Cargo and other157 — — 3 160 — 160 
Total Operating Revenues3,447 827 322 (319)4,277 — 4,277 
Operating Expenses
Operating expenses, excluding fuel2,937 839 272 (349)3,699 (921)2,778 
Economic fuel726 195 — — 921 (68)853 
Total Operating Expenses3,663 1,034 272 (349)4,620 (989)3,631 
Nonoperating Income (Expense)
Interest income20 — — (1)19 — 19 
Interest expense(86)— (16)1 (101)— (101)
Interest capitalized8 — — 1 9 — 9 
Other - net27 — — — 27 — 27 
Total Nonoperating Income (Expense)(31)— (16)1 (46)— (46)
Income (Loss) Before Income Tax$(247)$(207)$34 $31 $(389)$989 $600 
Nine Months Ended September 30, 2020
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues
Passenger revenues$1,860 $502 $— $— $2,362 $— $2,362 
CPA revenues— — 281 (281)— — — 
Mileage Plan other revenue219 47 — — 266 — 266 
Cargo and other128 — — 2 130 — 130 
Total Operating Revenues2,207 549 281 (279)2,758 — 2,758 
Operating Expenses
Operating expenses, excluding fuel2,777 727 238 (289)3,453 (83)3,370 
Economic fuel448 120 — — 568 — 568 
Total Operating Expenses3,225 847 238 (289)4,021 (83)3,938 
Nonoperating Income (Expense)
Interest income33 — — (10)23 — 23 
Interest expense(58)— (16)10 (64)— (64)
Interest capitalized8 — — — 8 — 8 
Other - net16 — — — 16 — 16 
Total Nonoperating Income (Expense)(1)— (16)— (17)— (17)
Income (Loss) Before Income Tax$(1,019)$(298)$27 $10 $(1,280)$83 $(1,197)

(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):
September 30, 2021December 31, 2020
Mainline$19,161 $19,754 
Horizon1,251 1,170 
Consolidating & Other(6,530)(6,878)
Consolidated$13,882 $14,046