OPERATING SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Segment Reporting Information, by Segment

The below tables present segment revenue and expenses for Air Group's reportable segments. Air Group's measure of segment profit or loss is pretax profit, which is used by the CODM to evaluate financial results. Additionally, reconciliations of the pretax profit of all reportable segments to Air Group's consolidated income before income tax are provided.


	Three Months Ended March 31, 2025
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional		Reportable Segment Total
Segment operating revenue
Passenger revenue	$	1,757	$	653	$	398	$	2,808
Loyalty program other revenue	152		39		16		207
Cargo and other revenue	65		55		—		120
Total segment operating revenue	1,974		747		414		3,135

Reconciliation to Consolidated Operating Revenue:
Other revenue(a)							2
Consolidated Operating Revenue							$	3,137

Segment operating expenses
Wages and benefits	721		277		—		998
Variable incentive pay	43		13		—		56
Economic fuel	419		174		91		684
Aircraft maintenance	124		75		—		199
Aircraft rent	21		15		—		36
Landing fees and other rentals	154		54		—		208
Contracted services	134		36		—		170
Selling expenses	62		30		—		92
Depreciation and amortization	121		58		—		179
Food and beverage service	55		24		—		79

Other(b)	173		58		—		231
Regional carrier expenses	—		—		333		333
Total segment operating expenses	2,027		814		424		3,265

Segment non-operating income (expense)
Interest income	43		3		—		46
Interest expense	(52)		(26)		—		(78)
Other(b)	7		2		—		9
Total segment non-operating income (expense)	(2)		(21)		—		(23)

Segment pretax loss	$	(55)	$	(88)	$	(10)	$	(153)

Reconciliation to Consolidated Loss Before Income Tax:
Other profit (loss)(a)							13
Aircraft fuel mark-to-market adjustment							3
Losses on foreign debt							(5)
Special items - operating							(91)


Consolidated Loss Before Income Tax							$	(233)


	Three Months Ended March 31, 2024
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional		Reportable Segment Total
Segment operating revenue
Passenger revenue	$	1,629	$	—	$	375	$	2,004
Loyalty program other revenue	149		—		15		$	164
Cargo and other revenue	62		—		—		$	62
Total segment operating revenue	1,840		—		390		2,230

Reconciliation to Consolidated Operating Revenue:
Other revenue(a)							2
Consolidated Operating Revenue							$	2,232

Segment operating expenses
Wages and benefits	683		—		—		683
Variable incentive pay	39		—		—		39
Economic fuel	485		—		93		578
Aircraft maintenance	107		—		—		107
Aircraft rent	20		—		—		20
Landing fees and other rentals	137		—		—		137
Contracted services	120		—		—		120
Selling expenses	67		—		—		67
Depreciation and amortization	112		—		—		112
Food and beverage service	52		—		—		52

Other(b)	177		—		—		177
Regional carrier expenses	—		—		299		299
Total segment operating expenses	1,999		—		392		2,391

Segment non-operating income (expense)
Interest income	18		—		—		18
Interest expense	(25)		—		—		(25)
Other(b)	4		—		—		4
Total segment non-operating income (expense)	(3)		—		—		(3)

Segment pretax loss	$	(162)	$	—	$	(2)	$	(164)

Reconciliation to Consolidated Loss Before Income Tax:
Other profit (loss)(a)							7
Aircraft fuel mark-to-market adjustment							13
Special items - operating							(34)


Consolidated Loss Before Income Tax							$	(178)

(a) Revenue and profit or loss from segments below the quantitative thresholds as well as other immaterial business units, including Air Group parent company activity, Horizon Air operations, McGee Air Services, consolidating entries and intercompany eliminations.

(b) Includes miscellaneous personnel, software, and services costs, as well as other non-operating activity.

Total capital expenditures were as follows:


	Three Months Ended March 31,
(in millions)	2025		2024
Alaska Airlines	$	92	$	52
Hawaiian Airlines	144		—
Other(a)	25		50
Consolidated	$	261	$	102

Total assets were as follows(b):


(in millions)	March 31, 2025		December 31, 2024
Alaska Airlines	$	24,404	$	24,664
Hawaiian Airlines	4,549		4,423
Consolidating & Other	(9,135)		(9,319)
Consolidated	$	19,818	$	19,768

(a) Primarily consists of Horizon Air capital expenditures, including non-cash expenditures for debt financing of certain E175 deliveries of $23 million in 2025 and $45 million in 2024.

(b) No assets are allocated to the Regional segment as it represents only revenue and expenses associated with regional flying. The related assets associated with regional flying are allocated to other segments.