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OPERATING SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2024
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. Historically, our CODM has reviewed financial performance information for our airline operations and the Horizon CPA as part of three reportable operating segments:
•Mainline - includes scheduled air transportation on Alaska's Boeing jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas.
•Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S., Canada, and Mexico 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 CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs and maintenance costs.

In addition to these reported segments, the Company has a "Consolidating and Other" column which 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.

Over time, our Mainline and Regional airline segments have increasingly been managed as a single component that provides scheduled air transportation for passengers and cargo, and includes our loyalty program. Managing this component in an integrated manner enables our team to leverage our comprehensive network, single route scheduling system, and fleet as a single business to deliver optimized consolidated financial results. In 2024, management began evaluating changes to internal reporting that may change the discrete information that is provided to our CODM in the future to better align with the way the business is managed. Such changes may have an impact on the Company’s reportable segments once finalized. The Company will continue to report using the existing segment structure until changes in our internal reporting have been fully implemented, and a segment analysis has been performed to determine if any changes to reportable segments are indicated.
Operating segment information is as follows (in millions):
Three Months Ended June 30, 2024
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenue   
Passenger revenue$2,188 $463 $— $— $2,651 $— $2,651 
CPA revenue— — 112 (112)— — — 
Mileage Plan other revenue160 14 — — 174 — 174 
Cargo and other revenue69 — — 3 72 — 72 
Total Operating Revenue2,417 477 112 (109)2,897 — 2,897 
Operating Expenses
Operating expenses, excluding fuel1,516 322 92 (116)1,814 146 1,960 
Fuel expense520 100 — — 620 (5)615 
Total Operating Expenses2,036 422 92 (116)2,434 141 2,575 
Non-operating Income (Expense)6 — (12)— (6)— (6)
Income (Loss) Before Income Tax$387 $55 $8 $7 $457 $(141)$316 
Pretax Margin15.8 %10.9 %
Three Months Ended June 30, 2023
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenue
Passenger revenue$2,209 $389 $— $— $2,598 $— $2,598 
CPA revenue— — 92 (92)— — — 
Mileage Plan other revenue158 12 — — 170 — 170 
Cargo and other revenue67 — — 3 70 — 70 
Total Operating Revenue2,434 401 92 (89)2,838 — 2,838 
Operating Expenses
Operating expenses, excluding fuel1,468 279 87 (92)1,742 186 1,928 
Fuel expense490 81 — 1 572 1 573 
Total Operating Expenses1,958 360 87 (91)2,314 187 2,501 
Non-operating Income (Expense)3 — (10)1 (6)(6)(12)
Income (Loss) Before Income Tax$479 $41 $(5)$3 $518 $(193)$325 
Pretax Margin18.3 %11.5 %
Six Months Ended June 30, 2024
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenue   
Passenger revenue$3,817 $838 $— $— $4,655 $— $4,655 
CPA revenue— — 216 (216)— — — 
Mileage Plan other revenue309 29 — — 338 — 338 
Cargo and other revenue131 — — 5 136 — 136 
Total Operating Revenue4,257 867 216 (211)5,129 — 5,129 
Operating Expenses
Operating expenses, excluding fuel3,030 621 180 (218)3,613 180 3,793 
Fuel expense1,005 193 — — 1,198 (18)1,180 
Total Operating Expenses4,035 814 180 (218)4,811 162 4,973 
Non-operating Income (Expense)3 — (23)2 (18)— (18)
Income (Loss) Before Income Tax$225 $53 $13 $9 $300 $(162)$138 
Pretax Margin5.8 %2.7 %

Six Months Ended June 30, 2023
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenue
Passenger revenue$3,882 $700 $— $— $4,582 $— $4,582 
CPA revenue— — 170 (170)— — — 
Mileage Plan other revenue301 23 — — 324 — 324 
Cargo and other revenue124 — — 4 128 — 128 
Total Operating Revenue4,307 723 170 (166)5,034 — 5,034 
Operating Expenses
Operating expenses, excluding fuel2,858 535 171 (169)3,395 250 3,645 
Fuel expense1,051 166 — — 1,217 21 1,238 
Total Operating Expenses3,909 701 171 (169)4,612 271 4,883 
Non-operating Income (Expense)(3)— (18)2 (19)(6)(25)
Income (Loss) Before Income Tax$395 $22 $(19)$5 $403 $(277)$126 
Pretax Margin8.0 %2.5 %