OPERATING SEGMENT INFORMATION

12 Months Ended

Dec. 31, 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 GAAP, operating segments are defined as components of a business for which there is discrete financial information that is regularly assessed by the Chief Operating Decision Maker (CODM) in making resource allocation decisions. Financial performance for the operating airlines and CPAs is managed and reviewed by the Company's CODM as part of three reportable operating segments:

•Mainline - includes scheduled air transportation on Alaska's Boeing or Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, Costa Rica and Belize.

•Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under a CPA. This segment includes the actual 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 a 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 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 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):

	Year Ended December 31, 2021
	Mainline		Regional		Horizon		Consolidating & Other(a)		Air Group Adjusted(b)		Special Items(c)		Consolidated
Operating Revenues
Passenger revenues	4,411		1,088		—		—		5,499		—		5,499
CPA revenues	—		—		406		(406)		—		—		—
Mileage Plan other revenue	402		59		—		—		461		—		461
Cargo and other	212		—		—		4		216		—		216
Total Operating Revenues	5,025		1,147		406		(402)		6,176		—		6,176
Operating Expenses
Operating expenses, excluding fuel	4,101		1,096		373		(433)		5,137		(925)		4,212
Fuel expense	1,065		261		—		—		1,326		(47)		1,279
Total Operating Expenses	5,166		1,357		373		(433)		6,463		(972)		5,491
Non-operating Income (Expense)	(38)		—		(21)		3		(56)		—		(56)
Income (Loss) Before Income Tax	$	(179)	$	(210)	$	12	$	34	$	(343)	$	972	$	629

	Year Ended December 31, 2020
	Mainline		Regional		Horizon		Consolidating & Other(a)		Air Group Adjusted(b)		Special Items(c)		Consolidated
Operating Revenues
Passenger revenues	2,350		669		—		—		3,019		—		3,019
CPA revenues	—		—		386		(386)		—		—		—
Mileage Plan other revenue	309		65		—		—		374		—		374
Cargo and other	170		—		—		3		173		—		173
Total Operating Revenues	2,829		734		386		(383)		3,566		—		3,566
Operating Expenses
Operating expenses, excluding fuel	3,630		993		323		(399)		4,547		71		4,618
Fuel expense	569		162		—		—		731		(8)		723
Total Operating Expenses	4,199		1,155		323		(399)		5,278		63		5,341
Non-operating Income (Expense)	(19)		—		(22)		2		(39)		(26)		(65)
Income (Loss) Before Income Tax	$	(1,389)	$	(421)	$	41	$	18	$	(1,751)	$	(89)	$	(1,840)

	Year Ended December 31, 2019
	Mainline		Regional		Horizon		Consolidating & Other(a)		Air Group Adjusted(b)		Special Items(c)		Consolidated
Operating Revenues
Passenger revenues	6,750		1,345		—		—		8,095		—		8,095
CPA revenues	—		—		450		(450)		—		—		—
Mileage Plan other revenue	419		46		—		—		465		—		465
Cargo and other	212		3		1		5		221		—		221
Total Operating Revenues	7,381		1,394		451		(445)		8,781		—		8,781
Operating Expenses
Operating expenses, excluding fuel	4,778		1,097		385		(464)		5,796		44		5,840
Fuel expense	1,589		295		—		—		1,884		(6)		1,878
Total Operating Expenses	6,367		1,392		385		(464)		7,680		38		7,718
Non-operating Income (Expense)	(21)		—		(28)		2		(47)		—		(47)
Income (Loss) Before Income Tax	$	993	$	2	$	38	$	21	$	1,054	$	(38)	$	1,016

(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 allocations and excludes certain income and charges.

(c)Includes Payroll Support Program wage offsets, special items, and mark-to-market fuel-hedge accounting adjustments.

	2021		2020		2019
Depreciation and amortization:
Mainline	$	323	$	346	$	337
Horizon	71		74		86
Consolidated	$	394	$	420	$	423
Capital expenditures:
Mainline	$	236	$	210	$	605
Horizon	56		12		91
Consolidated	$	292	$	222	$	696
Total assets at end of period:
Mainline	$	19,258	$	19,754
Horizon	1,212		1,170
Consolidating & Other	(6,519)		(6,878)
Consolidated	$	13,951	$	14,046