LONG-TERM DEBT

12 Months Ended

Dec. 31, 2023

NOTE 6. LONG-TERM DEBT

Long-term debt obligations on the consolidated balance sheet (in millions):


	2023			2022
Fixed-rate notes payable due through 2029	$	80		$	113
Fixed-rate PSP note payable due through 2031	600			600
Fixed-rate EETC payable due through 2025 & 2027	835			947
Variable-rate notes payable due through 2035	971			514
Less debt issuance costs	(15)			(15)
Total debt	2,471			2,159
Less current portion(a)	289			276
Long-term debt, less current portion	$	2,182		$	1,883

Weighted-average fixed-interest rate	3.4		%	3.5		%
Weighted-average variable-interest rate	6.8		%	5.8		%

(a) Excludes finance lease liabilities recognized within Current portion of long-term debt and finance leases in the consolidated balance sheets as of December 31, 2023.

Approximately $253 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at December 31, 2023, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.4%.

During 2023, the Company incurred debt of $595 million from multiple lenders and sources. New debt includes proceeds of $416 million which is secured by aircraft. Additionally, $179 million was incurred as part of an agreement to finance certain E175 deliveries. Debt from this agreement is reflected as a non-cash transaction within the supplemental disclosures in the consolidated statements of cash flows. The Company made debt payments of $282 million in 2023.

Debt Maturity

At December 31, 2023, long-term debt principal payments for the next five years and thereafter are as follows (in millions):


	Total
2024	$	294
2025	351
2026	307
2027	630
2028	114
Thereafter	790
Total Principal Payments	$	2,486

Bank Lines of Credit

Alaska has three credit facilities totaling $626 million as of December 31, 2023. One credit facility is for $150 million, expires in March 2025, and is secured by certain accounts receivable, spare engines, spare parts, and ground service equipment. A second credit facility is for $400 million, expires in June 2026, and is secured by aircraft. Both facilities have variable interest rates based on SOFR plus a specified margin. A third credit facility is for $76 million, expires in June 2024, and is secured by aircraft.

Alaska has secured letters of credit against the third facility, but has no plans to borrow using either of the other two facilities. All credit facilities have a requirement to maintain a minimum unrestricted cash and marketable securities balance of $500 million. Alaska was in compliance with this covenant at December 31, 2023.