DEBT

12 Months Ended

Dec. 31, 2025

Debt Disclosure [Abstract]

DEBT

DEBT

Debt obligations on the consolidated balance sheet:

(in millions)	2025			2024
Fixed-rate notes payable due through 2037	$	115		$	56
Fixed-rate PSP notes payable due through 2031	630			688
Fixed-rate EETCs payable due through 2027	715			864
Fixed-rate Japanese Yen denominated notes payable due through 2031	51			88
Variable-rate Japanese Yen denominated notes payable through 2033	149			—
Variable-rate PSP notes payable due through 2030	62			—
Variable-rate notes payable due through 2037	1,639			1,283
Loyalty financing, variable-rate term loan facility due through 2031	743			750
Loyalty financing, fixed-rate notes due through 2031	1,250			1,250
Less debt issuance costs and other	(45)			(46)
Total debt	5,309			4,933
Less current portion	540			442
Long-term debt, less current portion	$	4,769		$	4,491
Weighted-average fixed-interest rate	3.9		%	3.9		%
Weighted-average variable-interest rate	5.2		%	6.3		%

Approximately $651 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at December 31, 2025, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.6%.

In 2025, the Company incurred debt of $885 million from multiple lenders and sources including $816 million secured by aircraft, and $69 million incurred as part of an agreement to finance certain E175 deliveries. Debt from this agreement is reflected as a non-cash transaction within the supplemental disclosures in the consolidated statements of cash flows. In 2025, the Company made scheduled debt payments of $452 million and prepayments of $67 million.

In 2025, interest rates on certain PSP debt were adjusted from a fixed-rate to a variable-rate, in accordance with the terms of the loan agreement. Additionally, 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 year-end, the Company incurred additional fixed-rate debt of $111 million due through 2038 and issued prepayment notices to prepay $102 million of variable rate debt.

Debt maturity

At December 31, 2025, long-term debt principal payments for the next five years and thereafter are as follows:

(in millions)	Total(a)
2026	$	554
2027	766
2028	330
2029	878
2030	268
Thereafter	2,580
Total principal payments	$	5,376

(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 consolidated balance sheets will not equal the total balance of remaining principal payments presented in this table.

Bank lines of credit

Alaska has a revolving credit facility for $850 million, expiring in September 2029, which is secured by a combination of Alaska and Hawaiian aircraft, slots, gates, routes, and other eligible assets. The facility has a variable interest rate based on SOFR plus a specified margin. As of December 31, 2025, the Company had no outstanding borrowing under this facility.

Alaska has a second credit facility for $106 million, expiring in June 2027, which is secured by aircraft. Alaska has secured letters of credit 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 December 31, 2025.