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DEBT
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
 
Debt obligations on the unaudited condensed consolidated balance sheets:
(in millions)September 30, 2025December 31, 2024
Fixed-rate notes payable due through 2037$121 $56 
Fixed-rate PSP notes payable due through 2031630 688 
Fixed-rate EETCs payable due through 2027
714 864 
Fixed-rate Japanese Yen denominated notes payable due through 203156 88 
Variable-rate PSP notes payable due through 203062 — 
Variable-rate notes payable due through 20371,476 1,283 
Loyalty financing, variable-rate term loan facility due through 2031744 750 
Loyalty financing, fixed-rate notes due through 20311,250 1,250 
Less debt issuance costs and other(44)(46)
Total debt5,009 4,933 
Less current portion
519 442 
Long-term debt, less current portion$4,490 $4,491 
Weighted-average fixed-interest rate3.9 %3.9 %
Weighted-average variable-interest rate5.9 %6.3 %

Approximately $521 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at September 30, 2025, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.7%.

During the nine months ended September 30, 2025, the Company incurred debt of $452 million from multiple lenders and sources. New debt includes proceeds of $383 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 nine months ended September 30, 2025, the Company made debt payments of $389 million.

In the third quarter, the Company, through a wholly-owned subsidiary, amended its variable rate term loan facility, secured by assets associated with the Atmos Rewards program. The amendment provides for a repricing of the loan under the facility.

Subsequent to quarter end, the Company prepaid approximately $67 million of variable-rate debt acquired with Hawaiian.

Debt maturity

At September 30, 2025, debt principal payments for the next five years and thereafter are as follows:
(in millions)Total
Remainder of 2025$65 
2026522 
2027728 
2028291 
2029838 
Thereafter2,633 
Total Principal Payments(a)
$5,077 
(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 September 30, 2025, the Company had no outstanding borrowing under this facility.
 
Alaska and Hawaiian have a second combined credit facility with multiple lenders for $106 million, expiring in June 2027, which 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 September 30, 2025.