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OPERATING SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2022
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, 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 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 March 31, 2022
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues   
Passenger revenues$1,243 $268 $— $— $1,511 $— $1,511 
CPA revenues— — 94 (94)— — — 
Mileage Plan other revenue100 12 — — 112 — 112 
Cargo and other57 — — 1 58 — 58 
Total Operating Revenues1,400 280 94 (93)1,681 — 1,681 
Operating Expenses
Operating expenses, excluding fuel1,194 262 99 (94)1,461 75 1,536 
Fuel expense381 73 — — 454 (107)347 
Total Operating Expenses1,575 335 99 (94)1,915 (32)1,883 
Non-operating Income (Expense)1 — (5)— (4)— (4)
Income (Loss) Before Income Tax$(174)$(55)$(10)$1 $(238)$32 $(206)
Three Months Ended March 31, 2021
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues
Passenger revenues$506 $153 $— $— $659 $— $659 
CPA revenues— — 104 (104)— — — 
Mileage Plan other revenue80 14 — — 94 — 94 
Cargo and other44 — — — 44 — 44 
Total Operating Revenues630 167 104 (104)797 — 797 
Operating Expenses
Operating expenses, excluding fuel893 265 88 (109)1,137 (382)755 
Fuel expense174 52 — (1)225 (22)203 
Total Operating Expenses1,067 317 88 (110)1,362 (404)958 
Non-operating Income (Expense)(7)— (5)— (12)— (12)
Income (Loss) Before Income Tax$(444)$(150)$11 $6 $(577)$404 $(173)
(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.
(c) Includes Payroll Support Program wage offsets, special items and mark-to-market fuel hedge accounting adjustments.