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OPERATING SEGMENT INFORMATION
 12 Months Ended
Dec. 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 revenue.

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 revenue 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, 2022
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenue   
Passenger revenue$7,454 $1,354 $— $— $8,808 $— $8,808 
CPA revenue— — 359 (359)— — — 
Mileage Plan other revenue538 52 — — 590 — 590 
Cargo and other revenue244 — — 4 248 — 248 
Total Operating Revenue8,236 1,406 359 (355)9,646 — 9,646 
Operating Expenses
Operating expenses, excluding fuel5,216 1,085 383 (356)6,328 580 6,908 
Fuel expense2,195 397 — — 2,592 76 2,668 
Total Operating Expenses7,411 1,482 383 (356)8,920 656 9,576 
Non-operating Income (Expense)30 — (22)1 9 — 9 
Income (Loss) Before Income Tax$855 $(76)$(46)$2 $735 $(656)$79 
Pretax Margin7.6 %0.8 %
Year Ended December 31, 2021
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenue   
Passenger revenue$4,411 $1,088 $— $— $5,499 $— $5,499 
CPA revenue— — 406 (406)— — — 
Mileage Plan other revenue402 59 — — 461 — 461 
Cargo and other revenue212 — — 4 216 — 216 
Total Operating Revenue5,025 1,147 406 (402)6,176 — 6,176 
Operating Expenses
Operating expenses, excluding fuel4,101 1,096 373 (433)5,137 (925)4,212 
Fuel expense1,065 261 — — 1,326 (47)1,279 
Total Operating Expenses5,166 1,357 373 (433)6,463 (972)5,491 
Non-operating Income (Expense)(38)— (21)3 (56)— (56)
Income (Loss) Before Income Tax$(179)$(210)$12 $34 $(343)$972 $629 
Pretax Margin(5.6)%10.2 %
Year Ended December 31, 2020
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenue   
Passenger revenue$2,350 $669 $— $— $3,019 $— $3,019 
CPA revenue— — 386 (386)— — — 
Mileage Plan other revenue309 65 — — 374 — 374 
Cargo and other revenue170 — — 3 173 — 173 
Total Operating Revenue2,829 734 386 (383)3,566 — 3,566 
Operating Expenses
Operating expenses, excluding fuel3,630 993 323 (399)4,547 71 4,618 
Fuel expense569 162 — — 731 (8)723 
Total Operating Expenses4,199 1,155 323 (399)5,278 63 5,341 
Non-operating Income (Expense)(19)— (22)2 (39)(26)(65)
Income (Loss) Before Income Tax$(1,389)$(421)$41 $18 $(1,751)$(89)$(1,840)
Pretax Margin(49.1)%(51.6)%
(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 charges.
(c)Includes special items, mark-to-market fuel-hedge accounting adjustments, and Payroll Support Program grant wage offsets.

202220212020
Depreciation and amortization:
Mainline$351 $323 $346 
Horizon64 71 74 
Consolidated$415 $394 $420 
Capital expenditures:
Mainline$1,544 $236 $210 
Horizon127 56 12 
Consolidated$1,671 $292 $222 
Total assets at end of period:   
Mainline$19,733 $19,258 
Horizon1,157 1,212 
Consolidating & Other(6,704)(6,519)
Consolidated$14,186 $13,951