XML 22 R9.htm IDEA: XBRL DOCUMENT v3.26.1
Revenue from Contract with Customer
3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Ticket revenue is recorded as Passenger revenue, and represents the primary source of the Company's revenue. Also included in Passenger revenue is passenger ancillary revenue such as bag fees, on-board food and beverage, and certain revenue from the Atmos™ Rewards loyalty program. Loyalty program other revenue includes brand and marketing revenue from the Atmos Rewards co-branded credit cards and other partners, and certain interline loyalty program revenue, net of commissions. Cargo and other revenue consists of freight and mail revenue, services provided to Amazon under the Air Transportation Services Agreement (ATSA), and to a lesser extent, other ancillary revenue products such as lounge membership and certain commissions.

In the first quarter of 2026, Alaska entered into a multi‑year extension and expanded partnership with its co-branded credit card bank partner, Bank of America, and amended its ATSA with Amazon. Performance obligations under the amended agreements are consistent with prior arrangements.
The level of detail within the Company’s condensed consolidated statements of operations and in this note depict the nature, amount, timing, and uncertainty of revenue and how cash flows are affected by economic and other factors. Certain prior period amounts in this note have been revised by an immaterial amount.

Passenger Revenue

Passenger revenue recognized in the condensed consolidated statements of operations:
Three Months Ended March 31,
(in millions)20262025
Passenger ticket revenue, net of taxes and fees$2,426 $2,352 
Passenger ancillary revenue147 140 
Loyalty program passenger revenue347 316 
Total Passenger revenue$2,920 $2,808 

Domestic passenger revenue includes operations in the U.S., including Neighbor Island routes and Canada. Latin America passenger revenue includes operations in Mexico, Costa Rica, Guatemala, and Belize. Pacific passenger revenue includes operations in the South Pacific, Australia, New Zealand, and Asia. The table below presents the Company's passenger revenue by principal geographic region (as defined by the U.S. Department of Transportation):
Three Months Ended March 31,
(in millions)20262025
Domestic$2,599 $2,462 
Latin America187 214 
Pacific134 132 
Total Passenger revenue$2,920 $2,808 

Loyalty Program Revenue

Loyalty program revenue included in the condensed consolidated statements of operations:
Three Months Ended March 31,
(in millions)20262025
Loyalty program passenger revenue$347 $316 
Loyalty program other revenue227 207 
Total Loyalty program revenue$574 $523 
Cargo and Other Revenue

Cargo and other revenue included in the condensed consolidated statements of operations:
Three Months Ended March 31,
(in millions)20262025
Cargo revenue$59 $57 
Other revenue94 65 
Total Cargo and other revenue$153 $122 

Air Traffic Liability and Deferred Revenue

Passenger ticket and ancillary services liabilities

The Company recognized Passenger revenue of $784 million and $887 million from the prior year-end air traffic liability balance for the three months ended March 31, 2026 and 2025.

Loyalty program assets and liabilities

The Company records a receivable for amounts due from affinity card partners and from other partners as loyalty points are sold until the payments are collected. The Company had $147 million of such receivables as of March 31, 2026 and $154 million as of December 31, 2025.

The table below presents a roll forward of the total loyalty program liability:
Three Months Ended March 31,
(in millions)20262025
Total Deferred Revenue balance at January 1$3,433 $3,256 
Loyalty points and companion certificate redemption - Passenger revenue(311)(307)
Loyalty points redeemed on partner airlines - Loyalty program other revenue(51)(49)
Increase in liability for loyalty points issued410 414 
Total Deferred Revenue balance at March 31$3,481 $3,314