INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and (liabilities) comprise the following:

(in millions)	2025		2024
Loyalty program	$	611	$	577
Employee benefits	208		240
Net operating losses	501		320
Operating lease liabilities	327		345
Leasehold maintenance	16		31
Other - assets	173		217
Deferred tax assets	1,836		1,730
Excess of book basis over tax basis on fixed assets	(2,209)		(2,017)
Intangibles - net	(190)		(208)
Operating lease assets	(306)		(320)
Other - liabilities	(89)		(79)
Deferred tax liabilities	(2,794)		(2,624)
Valuation allowance	(46)		(40)
Net deferred tax liabilities	$	(1,004)	$	(934)

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows: 

(in millions)	2025		2024		2023
Current income tax (benefit) expense:
Federal	$	2	$	8	$	(3)
State	(5)		13		(4)
Foreign	1		—		—
Total current income tax (benefit) expense	$	(2)	$	21	$	(7)
Deferred income tax expense:
Federal	$	49	$	120	$	82
State	(1)		9		13
Foreign	—		—		—
Total deferred income tax expense	48		129		95
Income tax expense	$	46	$	150	$	88

Schedule of Effective Income Tax Rate Reconciliation

The following table reconciles income tax expense calculated at the U.S. federal statutory rate of 21% to the Company's effective tax rate:

	2025
(in millions)	Rate		Tax
US federal statutory tax rate	21.00	%	$	31
State and local income taxes, net of federal income tax effect(1)	(3.28)	%	(5)
Foreign tax effects	0.78	%	1
Tax credits
R&D credits	(4.37)	%	(6)
Changes in valuation allowances	2.67	%	4
Nontaxable or nondeductible items
Meals and entertainment	2.60	%	4
Parking fees	2.88	%	4
Stock based compensation	6.30	%	9
Other nondeductible items	1.04	%	2
Changes in unrecognized tax benefits	(1.95)	%	(3)
Other reconciling items
2024 stub return true-up	1.89	%	3
Other - other reconciling items	1.84	%	2
Effective income tax rate	31.40	%	$	46

(1) The state and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category are Alaska, California, Hawai'i, Portland/Multnomah County, New York, and Oregon.

The following table reconciles income tax expense calculated at the U.S. federal statutory rate of 21% to the Company's effective tax rate for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09.

 

(in millions)	2024			2023
Income before income tax	$	545		$	323
Expected tax expense	114			68
Nondeductible expenses	24			14
State income tax expense	24			17
State income sourcing	(5)			(5)
Valuation allowance	1			(1)
Tax credits	(7)			(3)
Uncertain tax positions	5			(5)
Other - net	(6)			3
Actual tax expense	$	150		$	88
Effective tax rate(a)	27.50		%	27.10		%

(a) Figures in the table above are rounded to the nearest million. As a result, a manual recalculation of the effective tax rate using these rounded figures may not agree directly to the Company's actual effective tax rate shown in the table.

Schedule of Income Taxes Paid

The amounts of cash taxes paid by the Company are as follows:

(in millions)	2025		2024		2023
Federal	$	(5)	$	17	$	—
State	7		5		15
Foreign	1		—		—
Current income taxes paid (refunded)	$	3	$	22	$	15

Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:

(in millions)	2025		2024		2023
States
California	$	7	$	2	(a)
Hawai'i	(1)		2		(a)
Oregon	(a)		(a)		14
Foreign
Guatemala	$	1	(a)		(a)

(a) The amount of income taxes paid during the years ended December 31, 2025, 2024, and 2023 does not meet the 5% disaggregation threshold.

Summary of Income Tax Contingencies [Table Text Block]

The Company has identified its federal tax return and its state tax returns in Alaska, California, and Oregon as “major” tax jurisdictions. A summary of the Company's jurisdictions and the periods that are subject to examination are as follows:

Jurisdiction	Period
Federal	2022 to 2024
Alaska	2022 to 2024
California	2010 to 2024
Oregon	2015 to 2024

Schedule of Unrecognized Tax Benefits Roll Forward

Changes in the liability for gross unrecognized tax benefits, exclusive of related interest and penalties, during 2025, 2024 and 2023 are as follows:

(in millions)	2025		2024		2023
Balance at January 1	$	36	$	25	$	21
Additions related to prior years	—		1		—
Additions related to current year activity	2		5		9
Releases due to settlements	(1)		—		(3)
Additions from acquisition	—		5		—
Releases due to lapse of statute of limitations	(4)		—		(2)
Balance at December 31	$	33	$	36	$	25