Revenue from Contract with Customer

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Ticket revenue is recorded as Passenger revenue, and represents the primary source of the Company's revenue. Also included in Passenger revenue is passenger ancillary revenue such as bag fees, on-board food and beverage, and certain revenue from Alaska's Mileage Plan program and Hawaiian's HawaiianMiles program. Loyalty program other revenue includes brand and marketing revenue from the Alaska Airlines Visa Signature and Hawaiian Airlines World Elite Mastercard co-branded credit cards and other partners, and certain interline loyalty program revenue, net of commissions. Cargo and other revenue comprises freight and mail revenue, including services provided to Amazon under the ATSA, and to a lesser extent, other ancillary revenue products such as lounge membership and certain commissions.

The level of detail within the Company’s consolidated statements of operations and in this note depict the nature, amount, timing, and uncertainty of revenue and how cash flows are affected by economic and other factors.

Passenger Revenue

Passenger revenue recognized in the consolidated statements of operations:

	Twelve Months Ended December 31,
(in millions)	2024		2023		2022
Passenger ticket revenue, net of taxes and fees	$	8,926	$	8,016	$	7,430
Passenger ancillary revenue	548		476		447
Loyalty program passenger revenue	1,180		1,034		931
Total Passenger revenue	$	10,654	$	9,526	$	8,808

Domestic passenger revenue includes operations in the U.S., including Neighbor Island routes, and Canada. Latin America passenger revenue includes operations in Mexico, Costa Rica, Guatemala, Belize, and Bahamas. Pacific passenger revenue includes operations in the South Pacific, Australia, New Zealand, and Asia. The table below presents the Company's passenger revenue by principal geographic region (as defined by the U.S. Department of Transportation):

	Twelve Months Ended December 31,
(in millions)	2024		2023		2022
Domestic	$	9,831	$	8,938	$	8,326
Latin America	677		588		482
Pacific	146		—		—
Total Passenger revenue	$	10,654	$	9,526	$	8,808

Loyalty Program Revenue

Loyalty Program revenue included in the consolidated statements of operations:

	Twelve Months Ended December 31,
(in millions)	2024		2023		2022
Loyalty program passenger revenue	$	1,180	$	1,034	$	931
Loyalty program other revenue	733		648		590
Total Loyalty program revenue	$	1,913	$	1,682	$	1,521

Cargo and Other Revenue

Cargo and other revenue included in the consolidated statements of operations:

	Twelve Months Ended December 31,
(in millions)	2024		2023		2022
Cargo revenue	$	169	$	128	$	133
Other revenue	179		124		115
Total Cargo and other revenue	$	348	$	252	$	248

Air Traffic Liability and Deferred Revenue

Passenger ticket and ancillary services liabilities

The Company recognized Passenger revenue of $766 million and $823 million from the 2023 and 2022 year-end air traffic liability balance during the twelve months ended December 31, 2024 and 2023. The amount recognized in 2024 from the prior year-end air traffic liability balance does not include Hawaiian passenger revenue as the $513 million in air traffic liability assumed from Hawaiian on September 18, 2024 was not included within the Company's prior year-end balance.

Loyalty program assets and liabilities

The Company records a receivable for amounts due from the affinity card partners and from other partners as mileage credits are sold until the payments are collected. The Company had $118 million and $102 million of such receivables as of December 31, 2024 and December 31, 2023.

The table below presents a roll forward of the total loyalty program liability:

	Twelve Months Ended December 31,
(in millions)	2024		2023
Total Deferred Revenue balance at January 1	$	2,603	$	2,497
Deferred revenue acquired from Hawaiian as of September 18	537		—
Travel miles and companion certificate redemption - Passenger revenue	(1,124)		(974)
Miles redeemed on partner airlines - Loyalty program other revenue	(160)		(117)
Increase in liability for mileage credits issued	1,400		1,197
Total Deferred Revenue balance at December 31	$	3,256	$	2,603