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DEBT
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
 
Debt obligations on the unaudited condensed consolidated balance sheets:
(in millions)March 31, 2025December 31, 2024
Fixed-rate notes payable due through 2029$51 $56 
Fixed-rate PSP notes payable due through 2031689 688 
Fixed-rate EETCs payable due through 2027
800 864 
Fixed-rate Japanese Yen denominated notes payable due through 203161 88 
Variable-rate notes payable due through 20371,253 1,283 
Loyalty financing, variable-rate term loan facility due through 2031748 750 
Loyalty financing, fixed-rate notes due through 20311,250 1,250 
Less debt issuance costs(43)(46)
Total debt4,809 4,933 
Less current portion
519 442 
Long-term debt, less current portion$4,290 $4,491 
Weighted-average fixed-interest rate3.9 %3.9 %
Weighted-average variable-interest rate6.0 %6.3 %

Approximately $554 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at March 31, 2025, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.7%.

During the three months ended March 31, 2025, the Company incurred $23 million of debt 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 unaudited condensed consolidated statements of cash flows. During the three months ended March 31, 2025, the Company made debt payments of $156 million.
Debt maturity

At March 31, 2025, debt principal payments for the next five years and thereafter are as follows:
(in millions)Total
Remainder of 2025$307 
2026503 
2027701 
2028211 
2029777 
Thereafter2,381 
Total Principal Payments(a)
$4,880 
(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 unaudited condensed consolidated balance sheets will not equal the total balance of remaining principal payments presented in this table.

Bank lines of credit

Alaska and Hawaiian have a combined revolving credit facility for $850 million, expiring in September 2029, which 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 March 31, 2025, 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.

Covenants

Certain debt agreements and credit facilities contain customary financial covenants, including compliance with certain debt service coverage ratios and minimum liquidity requirements. The Company and its subsidiaries were in compliance with these covenants as of March 31, 2025.