GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill represents the excess of purchase price over the fair value of the related net assets acquired in the Company's acquisitions of Hawaiian Airlines and Virgin America, and is not amortized. The total balance of goodwill is associated with the Alaska Airlines and Hawaiian Airlines reporting units and was $2.7 billion as of December 31, 2025 and December 31, 2024. The Company reviews goodwill for impairment annually in the fourth quarter, or more frequently if events or circumstances indicate that an impairment may exist. The assessment utilizes either a qualitative or quantitative approach. The qualitative approach considers factors such as Alaska Air Group market capitalization and other market trends, and unobservable inputs, including Company specific cash flow and performance information. If it is determined that it is more likely than not that the asset may be impaired, management utilizes a quantitative approach to assess the asset's fair value and the amount of impairment and a charge may be recorded. In 2025, the fair value of the Alaska Airlines and Hawaiian Airlines reporting units exceeded their carrying value.

Intangible assets

The Company has intangible assets that were recognized with the acquisitions of Hawaiian Airlines and Virgin America. Indefinite-lived intangibles are recorded at fair value upon acquisition and are not amortized, but are tested at least annually for impairment using a similar methodology to goodwill, as described above. Purchased intangible assets with finite lives are recorded at cost, net of accumulated amortization. The Company amortizes its intangible assets on a straight-line basis over an estimated useful life. The weighted average amortization period at the time of acquisition on September 18, 2024 for our customer relationship and co-brand partnership intangible assets was 18 years and 3 years, respectively.

Amortization of acquired intangible assets is as follows:


	December 31, 2025				December 31, 2024
(in millions)	Gross Carrying Value		Accumulated Amortization			Gross Carrying Value		Accumulated Amortization
Customer Relationships	$	285	$	21		$	285	$	5
Co-brand Partnerships	122		53			122		11
Hawaiian Trademark	390		—			390		—
Slots	92		—			92		—
Intangible assets	$	889	$	74		$	889	$	16

Amortization expense of intangible assets was $58 million in 2025, $16 million in 2024, and $5 million in 2023. Projected amortization expense for 2026, 2027, 2028, 2029, and 2030 is $56 million, $45 million, $16 million, $16 million, and $16 million, respectively.