XML 42 R24.htm IDEA: XBRL DOCUMENT v3.25.0.1
SPECIAL ITEMS
12 Months Ended
Dec. 31, 2024
Unusual or Infrequent Items, or Both [Abstract]  
SPECIAL ITEMS SPECIAL ITEMS
The Company has classified certain operating and non-operating activity as special items due to their unusual or infrequently occurring nature. Disclosing information about these items separately may assist with comparable year over year analysis and allow stakeholders to better understand Air Group's results of operations.

(in millions)
202420232022
Operating Expenses
Fleet transition$11 $385 $481 
Labor agreements
73 51 84 
Integration costs208  
Litigation
53 — 15 
Special items - operating$345 $443 $580 
Non-operating Income (Expense)
Special items - net non-operating
$16 $(18)$— 

Fleet transition: Fleet transition costs were associated with the retirement and disposition of Airbus aircraft acquired from Virgin America and Q400 aircraft.

Labor agreements: Labor agreement costs in 2024 were for retroactive pay for Alaska flight attendants pursuant to the tentative agreement reached in January 2025. Costs in 2023 were for contractual changes to Alaska pilots' sick leave benefits. Costs in 2022 were for a one-time bonus for Alaska pilots following the ratification of a new collective bargaining agreement.

Integration costs: Integration costs were associated with the acquisition of Hawaiian Airlines and primarily consist of legal and professional fees, change in control payments, and other employee-related expenses.

(in millions)20242023
Legal and professional fees$115 $
Employee-related and other merger costs
93  
Total Integration Costs$208 $7 

Litigation: Litigation costs in 2024 represent expenses associated with the Virgin trademark license agreement with the Virgin Group and were recorded following a negative ruling in an appeal case in 2024. Costs in 2022 were for certain incremental litigation accruals.

Net non-operating: The income in 2024 was for gains on Hawaiian debt extinguishment in the fourth quarter. The expense in 2023 was primarily for interest expense associated with certain Virgin America A321neo lease agreements which were modified as part of Alaska's fleet transition.