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Revenue from Contract with Customer
6 Months Ended
Jun. 30, 2025
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 consists of freight and mail revenue, services provided to Amazon under the Air Transportation Services Agreement (the ATSA), and other ancillary revenue products such as lounge membership and certain commissions.

The level of detail within the Company’s unaudited condensed 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.

Certain prior period amounts in this note have been revised by an immaterial amount to reflect the appropriate classification of receivables.

Passenger Revenue

Passenger revenue recognized in the unaudited condensed consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Passenger ticket revenue, net of taxes and fees$2,832 $2,226 $5,184 $3,874 
Passenger ancillary revenue162 135 302 243 
Loyalty program passenger revenue361 290 677 538 
Total Passenger revenue$3,355 $2,651 $6,163 $4,655 

Domestic passenger revenue includes operations in the U.S., including between the Hawaiian Islands (the 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):
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Domestic$3,061 $2,490 $5,523 $4,295 
Latin America166 161 380 360 
Pacific128 — 260 — 
Total Passenger revenue$3,355 $2,651 $6,163 $4,655 

Loyalty Program Revenue

Loyalty program revenue included in the unaudited condensed consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Loyalty program passenger revenue$361 $290 $677 $538 
Loyalty program other revenue210 174 417 338 
Total Loyalty program revenue$571 $464 $1,094 $876 

Cargo and Other Revenue

Cargo and other revenue included in the unaudited condensed consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Cargo revenue$67 $36 $124 $64 
Other revenue72 36 137 72 
Total Cargo and other revenue$139 $72 $261 $136 

Air Traffic Liability and Deferred Revenue

Passenger ticket and ancillary services liabilities

The Company recognized Passenger revenue of $228 million and $150 million from the prior year-end air traffic liability balance for the three months ended June 30, 2025 and 2024, and $1.1 billion and $717 million from the prior year-end traffic liability balance for the six months ended June 30, 2025 and 2024.

Loyalty program assets and liabilities

The Company records a receivable for amounts due from affinity card partners and from other partners as mileage credits are sold until the payments are collected. The Company had $306 million of such receivables as of June 30, 2025 and $176 million as of December 31, 2024.

The table below presents a roll forward of the total loyalty program liability:
Six Months Ended June 30,
(in millions)20252024
Total Deferred Revenue balance at January 1$3,256 $2,603 
Travel miles and companion certificate redemption - Passenger revenue(655)(508)
Miles redeemed on partner airlines - Loyalty program other revenue(119)(67)
Increase in liability for mileage credits issued990 613 
Total Deferred Revenue balance at June 30$3,472 $2,641