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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
OPERATING SEGMENT INFORMATION OPERATING SEGMENT INFORMATION
Air Group has three operating airlines – Alaska, Hawaiian, and Horizon. Each is regulated by the U.S. Department of Transportation’s Federal Aviation Administration. Alaska has CPAs for regional capacity with Horizon and SkyWest.

Air Group's Chief Operating Decision Maker (CODM) is its President and CEO. In the third quarter of 2024, the CODM began to review financial results for Hawaiian to assess performance and make resource allocation decisions for Air Group. As a result, the Company determined Hawaiian was an operating and reportable segment.

Air Group's network and schedules are centrally managed for all its operating airlines and CPA flying. Managing the business in an integrated manner enables the Company to leverage its comprehensive network, route scheduling system, and fleet as a single business. The CODM makes resource allocation decisions to deliver optimized consolidated financial results, regardless of the profitability of an individual segment. Air Group intends to combine Alaska and Hawaiian under a single operating certificate in the near term. At that time, management anticipates the discrete information provided to the CODM will similarly be combined. Management is considering other changes to internal reporting that may impact the discrete information provided to the CODM to better align with the way the business is managed. These changes may have an impact on the Company's reportable segments once finalized.

The CODM reviews financial performance information as part of three reportable operating segments which are described above:
•Alaska Airlines - includes scheduled air transportation on Alaska's Boeing aircraft for passengers and cargo.
•Hawaiian Airlines - includes scheduled air transportation on Hawaiian's Boeing and Airbus aircraft for passengers and cargo.
•Regional - includes Horizon's and other third-party carriers’ scheduled air transportation on E175 aircraft for passengers under CPAs. This segment includes the actual revenue and expenses associated with regional flying, as well as an allocation of corporate overhead incurred by Air Group on behalf of the regional operations.

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. Certain immaterial reclassifications have been made within segment operating expenses between the Alaska Airlines and Regional segments for the three and six months ended June 30, 2024. These reclassifications had no impact to consolidated results.
Three Months Ended June 30, 2025
(in millions)
Alaska Airlines
Hawaiian Airlines
Regional
Reportable Segment Total
Segment operating revenue
Passenger revenue$2,132 $769 $454 $3,355 
Loyalty program other revenue161 32 17 210 
Cargo and other revenue80 56 — 136 
Total segment operating revenue2,373 857 471 3,701 
Reconciliation to Consolidated Operating Revenue:
Other revenue(a)
3 
Consolidated Operating Revenue
$3,704 
Segment operating expenses
Wages and benefits752 277 — 1,029 
Variable incentive pay41 15 — 56 
Economic fuel437 171 93 701 
Aircraft maintenance136 81 — 217 
Aircraft rent21 16 — 37 
Landing fees and other rentals166 59 — 225 
Contracted services142 36 — 178 
Selling expenses67 29 — 96 
Depreciation and amortization124 60 — 184 
Food and beverage service60 29 — 89 
Other(b)
154 60 — 214 
Regional carrier expenses— — 371 371 
Total segment operating expenses2,100 833 464 3,397 
Segment non-operating income (expense)
Interest income
40 2 — 42 
Interest expense(51)(26)— (77)
Other(b)
5 1 — 6 
Total segment non-operating income (expense)(6)(23)— (29)
Segment pretax income$267 $1 $7 $275 
Reconciliation to Consolidated Income Before Income Tax:
Other profit(a)
20 
Aircraft fuel mark-to-market adjustment1 
Losses on foreign debt(2)
Special items - operating(56)
Consolidated Income Before Income Tax $238 
Three Months Ended June 30, 2024
(in millions)
Alaska Airlines
Hawaiian Airlines
Regional
Reportable Segment Total
Segment operating revenue
Passenger revenue$2,188 $— $463 $2,651 
Loyalty program other revenue160 — 14 174 
Cargo and other revenue69 — — 69 
Total segment operating revenue2,417 — 477 2,894 
Reconciliation to Consolidated Operating Revenue:
Other revenue(a)
3 
Consolidated Operating Revenue
$2,897 
Segment operating expenses
Wages and benefits663 — — 663 
Variable incentive pay46 — — 46 
Economic fuel
520 — 100 620 
Aircraft maintenance
113 — — 113 
Aircraft rent
19 — — 19 
Landing fees and other rentals134 — — 134 
Contracted services131 — — 131 
Selling expenses73 — — 73 
Depreciation and amortization113 — — 113 
Food and beverage service59 — — 59 
Other(b)
158 — — 158 
Regional carrier expenses
— — 329 329 
Total segment operating expenses2,029 — 429 2,458 
Segment non-operating income (expense)
Interest income
25 — — 25 
Interest expense(26)— — (26)
Other(b)
7 — — 7 
Total segment non-operating income (expense)6 — — 6 
Segment pretax income $394 $— $48 $442 
Reconciliation to Consolidated Income Before Income Tax:
Other profit(a)
15 
Aircraft fuel mark-to-market adjustment
5 
Special items - operating(146)
Consolidated Income Before Income Tax $316 
Six Months Ended June 30, 2025
(in millions)
Alaska Airlines
Hawaiian Airlines
Regional
Reportable Segment Total
Segment operating revenue
Passenger revenue$3,889 $1,422 $852 $6,163 
Loyalty program other revenue313 71 33 417 
Cargo and other revenue145 111 — 256 
Total segment operating revenue4,347 1,604 885 6,836 
Reconciliation to Consolidated Operating Revenue:
Other revenue(a)
5 
Consolidated Operating Revenue
$6,841 
Segment operating expenses
Wages and benefits1,473 554 — 2,027 
Variable incentive pay84 28 — 112 
Economic fuel856 345 184 1,385 
Aircraft maintenance259 156 — 415 
Aircraft rent42 31 — 73 
Landing fees and other rentals308 114 — 422 
Contracted services276 72 — 348 
Selling expenses129 59 — 188 
Depreciation and amortization246 118 — 364 
Food and beverage service115 52 — 167 
Other(b)
327 118 — 445 
Regional carrier expenses— — 716 716 
Total segment operating expenses4,115 1,647 900 6,662 
Segment non-operating income (expense)
Interest income
83 5 — 88 
Interest expense(103)(52)— (155)
Other(b)
12 3 — 15 
Total segment non-operating income (expense)(8)(44)— (52)
Segment pretax income (loss)$224 $(87)$(15)$122 
Reconciliation to Consolidated Income Before Income Tax:
Other profit(a)
33 
Aircraft fuel mark-to-market adjustment4 
Losses on foreign debt(7)
Special items - operating(147)
Consolidated Income Before Income Tax $5 
Six Months Ended June 30, 2024
(in millions)
Alaska Airlines
Hawaiian Airlines
Regional
Reportable Segment Total
Segment operating revenue
Passenger revenue$3,817 $— $838 $4,655 
Loyalty program other revenue309 — 29 338 
Cargo and other revenue131 — — 131 
Total segment operating revenue4,257 — 867 5,124 
Reconciliation to Consolidated Operating Revenue:
Other revenue(a)
5 
Consolidated Operating Revenue
$5,129 
Segment operating expenses
Wages and benefits1,346 — — 1,346 
Variable incentive pay83 — — 83 
Economic fuel1,005 — 193 1,198 
Aircraft maintenance220 — — 220 
Aircraft rent39 — — 39 
Landing fees and other rentals262 — — 262 
Contracted services251 — — 251 
Selling expenses141 — — 141 
Depreciation and amortization225 — — 225 
Food and beverage service112 — — 112 
Other(b)
335 — — 335 
Regional carrier expenses— — 637 637 
Total segment operating expenses4,019 — 830 4,849 
Segment non-operating income (expense)
Interest income
43 — — 43 
Interest expense(51)— — (51)
Other(b)
11 — — 11 
Total segment non-operating income (expense)3 — — 3 
Segment pretax income$241 $— $37 $278 
Reconciliation to Consolidated Income Before Income Tax:
Other profit(a)
22 
Aircraft fuel mark-to-market adjustment18 
Special items - operating(180)
Consolidated Income Before Income Tax $138 
(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 June 30,Six Months Ended June 30,
(in millions)2025202420252024
Alaska Airlines$330 $529 $422 $581 
Hawaiian Airlines165 — 309 — 
Other(a)
54 24 79 74 
Consolidated$549 $553 $810 $655 

Total assets were as follows(b):
(in millions)June 30, 2025December 31, 2024
Alaska Airlines$24,460 $24,664 
Hawaiian Airlines4,725 4,423 
Consolidating & Other(9,300)(9,319)
Consolidated$19,885 $19,768 
(a) Primarily consists of Horizon Air capital expenditures, including non-cash expenditures for debt financing of certain E175 deliveries of $46 million and $69 million in the three and six months ended June 30, 2025 and $23 million and $68 million in the three and six months ended June 30, 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.