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DEBT
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
 
Debt obligations on the condensed consolidated balance sheets:
(in millions)September 30, 2026December 31, 2025
Fixed-rate notes payable due through 2038$204 $115 
Fixed-rate PSP notes payable due through 2031— 630 
Fixed-rate EETCs payable due through 2027512 715 
Fixed-rate Japanese Yen denominated notes payable due through 203143 51 
Fixed-rate unsecured notes payable due through 2031500 — 
Variable-rate Japanese Yen denominated notes payable due through 2033136 149 
Variable-rate PSP notes payable due through 2031684 62 
Variable-rate notes payable due through 20381,463 1,639 
Loyalty financing, variable-rate term loan facility due through 20331,236 743 
Loyalty financing, fixed-rate notes due through 20311,250 1,250 
Less debt issuance costs(52)(45)
Total debt5,976 5,309 
Less current portion
763 540 
Long-term debt, less current portion$5,213 $4,769 
Weighted-average fixed-interest rate5.3 %3.9 %
Weighted-average variable-interest rate5.5 %5.2 %

Approximately $596 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps, resulting in an effective weighted-average interest rate for the full debt portfolio of 5.4%. In 2026, all PSP debt was adjusted from a fixed-rate to a variable-rate, in accordance with the terms of the loan agreement.

Senior notes

In the second quarter of 2026, Alaska issued $500 million of unsecured senior notes due 2031, bearing an interest rate of 6.5%, which are fully and unconditionally guaranteed by Alaska Air Group, Inc.

Term loan facility

In the second quarter of 2026, the Company, through a wholly-owned subsidiary, entered into an amendment to its existing term loan credit agreement and incurred an additional $500 million senior secured term loan facility. The facility is secured by assets associated with the Atmos Rewards loyalty program and bears interest at a variable rate equal to SOFR plus a specified margin.

Other financing

In addition to the senior notes and term loan financing described above, $183 million of new debt was incurred during the nine months ended September 30, 2026. New debt includes proceeds of $111 million, secured by aircraft, and $72 million which was incurred as part of an agreement to finance certain E175 deliveries. Debt from the E175 financing is reflected as a non-cash transaction within the supplemental disclosures in the unaudited condensed consolidated statements of cash flows.

The Company, through its wholly-owned subsidiaries, made scheduled debt payments of $398 million and prepayments of $113 million during the nine months ended September 30, 2026.

Debt maturity
At September 30, 2026, debt principal payments for the next five years and thereafter are as follows:
(in millions)Total
Remainder of 2026$65 
2027783 
2028347 
2029896 
2030287 
Thereafter3,669 
Total Principal Payments(a)
$6,047 
(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, which is secured by a combination of Alaska and Hawaiian aircraft, slots, gates, routes, and other eligible assets. In the second quarter of 2026, the Company exercised the facility's accordion feature, increasing the aggregate commitment amount from $850 million to $1.1 billion. The facility has a variable interest rate based on SOFR plus a specified margin and expires in September 2029. As of September 30, 2026, 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 September 30, 2026.