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DEBT
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
 
Debt obligations on the condensed consolidated balance sheets:
(in millions)March 31, 2026December 31, 2025
Fixed-rate notes payable due through 2038$220 $115 
Fixed-rate PSP notes payable due through 2031161 630 
Fixed-rate EETCs payable due through 2027549 715 
Fixed-rate Japanese Yen denominated notes payable due through 203147 51 
Variable-rate Japanese Yen denominated notes payable due through 2033143 149 
Variable-rate PSP notes payable due through 2031521 62 
Variable-rate notes payable due through 20371,490 1,639 
Loyalty financing, variable-rate term loan facility due through 2031741 743 
Loyalty financing, fixed-rate notes due through 20311,250 1,250 
Less debt issuance costs(43)(45)
Total debt5,079 5,309 
Less current portion
319 540 
Long-term debt, less current portion$4,760 $4,769 
Weighted-average fixed-interest rate4.6 %3.9 %
Weighted-average variable-interest rate5.2 %5.2 %

In the first quarter, 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. Approximately $633 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at March 31, 2026, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.9%.

During the three months ended March 31, 2026, the Company incurred debt of $111 million, secured by aircraft. During the three months ended March 31, 2026, the Company made scheduled debt payments of $227 million and prepayments of $113 million.
Debt maturity

At March 31, 2026, debt principal payments for the next five years and thereafter are as follows:
(in millions)Total
Remainder of 2026$230 
2027773 
2028337 
2029886 
2030276 
Thereafter2,641 
Total Principal Payments(a)
$5,143 
(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 condensed 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 March 31, 2026, the Company had no outstanding borrowing under this facility. Subsequent to quarter end, the Company exercised the facility's accordion feature, increasing the aggregate commitment amount to $1.1 billion.
 
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 March 31, 2026.