OPERATING SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Segment Reporting Information, by Segment

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 nine months ended September 30, 2024. These reclassifications had no impact to consolidated results.


	Three Months Ended September 30, 2025
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional		Reportable Segment Total
Segment operating revenue
Passenger revenue	$	2,172	$	768	$	484	$	3,424
Loyalty program other revenue	155		29		16		200
Cargo and other revenue	79		60		—		139
Total segment operating revenue	2,406		857		500		3,763

Reconciliation to Consolidated Operating Revenue:
Other revenue(a)							3
Consolidated Operating Revenue							$	3,766

Segment operating expenses
Wages and benefits	800		272		—		1,072
Variable incentive pay	48		17		—		65
Economic fuel	470		188		103		761
Aircraft maintenance	129		89		—		218
Aircraft rent	20		16		—		36
Landing fees and other rentals	182		66		—		248
Contracted services	152		37		—		189
Selling expenses	68		30		—		98
Depreciation and amortization	126		60		—		186
Food and beverage service	63		28		—		91

Other(b)	157		69		—		226
Regional carrier expenses	—		—		386		386
Total segment operating expenses	2,215		872		489		3,576

Segment non-operating income (expense)
Interest income	43		3		—		46
Interest expense	(54)		(31)		—		(85)
Other(b)	7		1		—		8
Total segment non-operating expense	(4)		(27)		—		(31)

Segment pretax income (loss)	$	187	$	(42)	$	11	$	156

Reconciliation to Consolidated Income Before Income Tax:
Other profit(a)							17

Gains on foreign debt							2
Special items							(64)


Consolidated Income Before Income Tax							$	111


	Three Months Ended September 30, 2024
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional		Reportable Segment Total
Segment operating revenue
Passenger revenue	$	2,261	$	84	$	476	$	2,821
Loyalty program other revenue	151		5		15		171
Cargo and other revenue	71		6		—		77
Total segment operating revenue	2,483		95		491		3,069

Reconciliation to Consolidated Operating Revenue:
Other revenue(a)							3
Consolidated Operating Revenue							$	3,072

Segment operating expenses
Wages and benefits	710		37		—		747
Variable incentive pay	93		—		—		93
Economic fuel	510		23		95		628
Aircraft maintenance	117		9		—		126
Aircraft rent	21		1		—		22
Landing fees and other rentals	142		8		—		150
Contracted services	130		5		—		135
Selling expenses	68		4		—		72
Depreciation and amortization	116		8		—		124
Food and beverage service	58		4		—		62

Other(b)	170		6		—		176
Regional carrier expenses	—		—		340		340
Total segment operating expenses	2,135		105		435		2,675

Segment non-operating income (expense)
Interest income	28		2		—		30
Interest expense	(28)		(6)		—		(34)
Other(b)	3		—		—		3
Total segment non-operating income (expense)	3		(4)		—		(1)

Segment pretax income (loss)	$	351	$	(14)	$	56	$	393

Reconciliation to Consolidated Income Before Income Tax:
Other profit(a)							6
Aircraft fuel mark-to-market adjustment							4
Special items							(75)


Consolidated Income Before Income Tax							$	328


	Nine Months Ended September 30, 2025
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional		Reportable Segment Total
Segment operating revenue
Passenger revenue	$	6,061	$	2,190	$	1,336	$	9,587
Loyalty program other revenue	468		100		49		617
Cargo and other revenue	224		171		—		395
Total segment operating revenue	6,753		2,461		1,385		10,599

Reconciliation to Consolidated Operating Revenue:
Other revenue(a)							8
Consolidated Operating Revenue							$	10,607

Segment operating expenses
Wages and benefits	2,273		826		—		3,099
Variable incentive pay	132		45		—		177
Economic fuel	1,326		533		287		2,146
Aircraft maintenance	388		245		—		633
Aircraft rent	62		47		—		109
Landing fees and other rentals	490		180		—		670
Contracted services	428		109		—		537
Selling expenses	197		89		—		286
Depreciation and amortization	372		178		—		550
Food and beverage service	178		80		—		258

Other(b)	484		187		—		671
Regional carrier expenses	—		—		1,102		1,102
Total segment operating expenses	6,330		2,519		1,389		10,238

Segment non-operating income (expense)
Interest income	126		8		—		134
Interest expense	(157)		(83)		—		(240)
Other(b)	19		4		—		23
Total segment non-operating expense	(12)		(71)		—		(83)

Segment pretax income (loss)	$	411	$	(129)	$	(4)	$	278

Reconciliation to Consolidated Income Before Income Tax:
Other profit(a)							50
Aircraft fuel mark-to-market adjustment							4
Losses on foreign debt							(5)
Special items							(211)


Consolidated Income Before Income Tax							$	116


	Nine Months Ended September 30, 2024
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional		Reportable Segment Total
Segment operating revenue
Passenger revenue	$	6,078	$	84	$	1,314	$	7,476
Loyalty program other revenue	460		5		44		509
Cargo and other revenue	202		6		—		208
Total segment operating revenue	6,740		95		1,358		8,193

Reconciliation to Consolidated Operating Revenue:
Other revenue(a)							8
Consolidated Operating Revenue							$	8,201

Segment operating expenses
Wages and benefits	2,056		37		—		2,093
Variable incentive pay	176		—		—		176
Economic fuel	1,515		23		288		1,826
Aircraft maintenance	337		9		—		346
Aircraft rent	60		1		—		61
Landing fees and other rentals	404		8		—		412
Contracted services	381		5		—		386
Selling expenses	209		4		—		213
Depreciation and amortization	341		8		—		349
Food and beverage service	170		4		—		174

Other(b)	505		6		—		511
Regional carrier expenses	—		—		977		977
Total segment operating expenses	6,154		105		1,265		7,524

Segment non-operating income (expense)
Interest income	71		2		—		73
Interest expense	(79)		(6)		—		(85)
Other(b)	14		—		—		14
Total segment non-operating income (expense)	6		(4)		—		2

Segment pretax income (loss)	$	592	$	(14)	$	93	$	671

Reconciliation to Consolidated Income Before Income Tax:
Other profit(a)							28
Aircraft fuel mark-to-market adjustment							22

Special items							(255)


Consolidated Income Before Income Tax							$	466

(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 September 30,				Nine Months Ended September 30,
(in millions)	2025		2024		2025		2024
Alaska Airlines	$	172	$	252	$	594	$	833
Hawaiian Airlines	50		2		359		2
Other(a)	—		11		79		85
Consolidated	$	222	$	265	$	1,032	$	920

Total assets were as follows(b):


(in millions)	September 30, 2025		December 31, 2024
Alaska Airlines	$	24,766	$	24,664
Hawaiian Airlines	4,646		4,423
Consolidating & Other	(9,400)		(9,319)
Consolidated	$	20,012	$	19,768

(a) Primarily consists of Horizon Air capital expenditures, including non-cash expenditures for debt financing of certain E175 deliveries of $69 million and $68 million in the nine months ended September 30, 2025 and 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.