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DEBT
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
DEBT DEBT
 
Debt obligations on the consolidated balance sheet:
(in millions)
20242023
Fixed-rate notes payable due through 2029$56 $80 
Fixed-rate PSP notes payable due through 2031688 600 
Fixed-rate EETCs payable due through 2027864 835 
Fixed-rate Japanese Yen denominated notes payable due through 203188 — 
Variable-rate notes payable due through 20361,283 971 
Loyalty financing, variable-rate term loan facility due through 2031750 — 
Loyalty financing, fixed-rate notes due through 2029 and 20311,250 — 
Less debt issuance costs(46)(15)
Total debt4,933 2,471 
Less current portion
442 289 
Long-term debt, less current portion$4,491 $2,182 
Weighted-average fixed-interest rate3.9 %3.4 %
Weighted-average variable-interest rate6.3 %6.8 %

Approximately $567 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at December 31, 2024, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.7%.

Loyalty financing

In 2024, the Company, through a wholly-owned subsidiary, raised debt collateralized by assets associated with Alaska's Mileage Plan program. The proceeds consisted of $625 million of 5.021% Senior Secured Notes due 2029, $625 million of 5.308% Senior Secured Notes due 2031, and a variable rate term loan facility of $750 million, which was fully drawn as of December 31, 2024. These agreements contain customary financial covenants, including compliance with certain debt service coverage ratios and minimum liquidity requirements. Failure to comply with these covenants may result in early repayment, in whole or in part, of the financing.

Other financing

In addition to the loyalty financing described above, $415 million in new debt was issued by multiple lenders and sources. $347 million is secured by a combination of aircraft and flight simulators. Additionally, $68 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.

During the year, the Company prepaid $1.6 billion in debt acquired with the Hawaiian acquisition and made other debt payments of $314 million.

Subsequent to year end, Horizon executed an agreement to finance E175 aircraft scheduled to be delivered in 2025 and 2026. The financing, which covers a portion of the total aircraft cost and is secured by the aircraft, is funded upon each delivery and will total up to $146 million over the duration of the agreement.
Debt maturity

At December 31, 2024, long-term debt principal payments for the next five years and thereafter are as follows:
(in millions)
Total(a)
2025$460 
2026502 
2027699 
2028209 
2029775 
Thereafter2,364 
  Total Principal Payments$5,009 
(a) The Company recognized the long-term debt assumed in the Hawaiian acquisition at fair value as of the acquisition date. As a result, the amount in the consolidated balance sheets will not equal the total balance of remaining principal payments presented in this table.

Bank lines of credit
 
In 2024, Alaska and Hawaiian entered into an agreement to upsize their existing revolving credit facilities. The combined facility is for $850 million, expires in September 2029, and is secured by a combination of Air Group aircraft, slots, gates, routes, and other eligible assets. The facility has a variable interest rate based on SOFR plus a specified margin. As of December 31, 2024, the Company had no outstanding borrowing under this facility.

Alaska has a second credit facility for $76 million, expiring in June 2025, and is secured by aircraft. Alaska has secured letters of credit against this facility.

Both credit facilities have a requirement to maintain a minimum unrestricted cash and marketable securities balance of $500 million. Alaska and Hawaiian were in compliance with this covenant at December 31, 2024.