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DEBT
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
 
Debt obligations on the unaudited condensed consolidated balance sheets:
(in millions)June 30, 2025December 31, 2024
Fixed-rate notes payable due through 2037$127 $56 
Fixed-rate PSP notes payable due through 2031629 688 
Fixed-rate EETCs payable due through 2027
801 864 
Fixed-rate Japanese Yen denominated notes payable due through 203161 88 
Variable-rate PSP notes payable due through 203061 — 
Variable-rate notes payable due through 20371,316 1,283 
Loyalty financing, variable-rate term loan facility due through 2031746 750 
Loyalty financing, fixed-rate notes due through 20311,250 1,250 
Less debt issuance costs(43)(46)
Total debt4,948 4,933 
Less current portion
500 442 
Long-term debt, less current portion$4,448 $4,491 
Weighted-average fixed-interest rate4.0 %3.9 %
Weighted-average variable-interest rate6.0 %6.3 %

In the second quarter, interest rates on certain PSP debt were adjusted from a fixed-rate to a variable-rate, in accordance with the terms of the loan agreement. Approximately $535 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at June 30, 2025, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.8%.

During the six months ended June 30, 2025, the Company incurred debt of $237 million from multiple lenders and sources. New debt includes proceeds of $168 million, secured by aircraft. Additionally, $69 million was incurred as part of an agreement to finance certain E175 deliveries. Debt from the E175 financing is reflected as a non-cash transaction within the supplemental disclosures in the unaudited condensed consolidated statements of cash flows. During the six months ended June 30, 2025, the Company made debt payments of $236 million.

Subsequent to quarter end, the Company incurred additional debt of $154 million, secured by aircraft. Additionally, the Company, through a wholly-owned subsidiary, amended its variable rate term loan facility, secured by assets associated with Alaska's Mileage Plan program. The amendment provides for a repricing of the loans under the facility.

Debt maturity

At June 30, 2025, debt principal payments for the next five years and thereafter are as follows:
(in millions)Total
Remainder of 2025$217 
2026520 
2027719 
2028241 
2029795 
Thereafter2,525 
Total Principal Payments(a)
$5,017 
(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 aircraft, slots, gates, routes, and other eligible assets. The facility has a variable interest rate based on SOFR plus a specified margin. As of June 30, 2025, the Company had no outstanding borrowing under this facility.
 
In June 2025, Alaska and Hawaiian entered into an agreement to renew and upsize a second credit facility with multiple lenders. This facility is for $106 million, expires in June 2027, and is secured by aircraft. Letters of credit have been secured 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 June 30, 2025.