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Revenue from Contract with Customer
9 Months Ended
Sep. 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 the Atmos™ Rewards loyalty program. Atmos Rewards was launched in the third quarter of 2025 by combining Alaska's Mileage Plan™ and Hawaiian's HawaiianMiles™ programs. Loyalty program other revenue includes brand and marketing revenue from the Atmos Rewards 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 (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 September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Passenger ticket revenue, net of taxes and fees$2,889 $2,380 $8,073 $6,254 
Passenger ancillary revenue177 152 479 395 
Loyalty program passenger revenue358 289 1,035 827 
Total Passenger revenue$3,424 $2,821 $9,587 $7,476 

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 September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Domestic$3,202 $2,685 $8,725 $6,980 
Latin America100 118 480 478 
Pacific122 18 382 18 
Total Passenger revenue$3,424 $2,821 $9,587 $7,476 

Loyalty Program Revenue

Loyalty program revenue included in the unaudited condensed consolidated statements of operations:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Loyalty program passenger revenue$358 $289 $1,035 $827 
Loyalty program other revenue200 171 617 509 
Total Loyalty program revenue$558 $460 $1,652 $1,336 

Cargo and Other Revenue

Cargo and other revenue included in the unaudited condensed consolidated statements of operations:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Cargo revenue$70 $43 $194 $107 
Other revenue72 37 209 109 
Total Cargo and other revenue$142 $80 $403 $216 

Air Traffic Liability and Deferred Revenue

Passenger ticket and ancillary services liabilities

The Company recognized Passenger revenue of $72 million and $46 million from the prior year-end air traffic liability balance for the three months ended September 30, 2025 and 2024, and $1.2 billion and $763 million from the prior year-end traffic liability balance for the nine months ended September 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 loyalty points are sold until the payments are collected. The Company had $177 million of such receivables as of September 30, 2025 and $176 million as of December 31, 2024.

The table below presents a roll forward of the total loyalty program liability:
Nine Months Ended September 30,
(in millions)20252024
Total Deferred Revenue balance at January 1$3,256 $2,603 
Deferred revenue acquired from Hawaiian as of September 18 537 
Loyalty points and companion certificate redemption - Passenger revenue(993)(782)
Loyalty points redeemed on partner airlines - Loyalty program other revenue(194)(113)
Increase in liability for loyalty points issued1,364 947 
Total Deferred Revenue balance at September 30$3,433 $3,192