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OPERATING SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
OPERATING SEGMENT INFORMATION | OPERATING SEGMENT INFORMATION Alaska Air Group has two operating airlines – Alaska and Horizon. Each is regulated by the U.S. Department of Transportation’s Federal Aviation Administration. Alaska has CPAs for regional capacity with Horizon, and SkyWest, under which Alaska receives all passenger revenues. Under U.S. GAAP, operating segments are defined as components of a business for which there is discrete financial information that is regularly assessed by the Chief Operating Decision Maker (CODM) in making resource allocation decisions. Financial performance for the operating airlines and CPAs is managed and reviewed by the Company's CODM as part of three reportable operating segments: •Mainline - includes scheduled air transportation on Alaska's Boeing or Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, and Costa Rica. •Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S. under a CPA. This segment includes the actual revenues and expenses associated with regional flying, as well as an allocation of corporate overhead incurred by Air Group on behalf of the regional operations. •Horizon - includes the capacity sold to Alaska under CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs and maintenance costs. The CODM makes resource allocation decisions for these reporting segments based on flight profitability data, aircraft type, route economics and other financial information. The "Consolidating and Other" column reflects Air Group parent company activity, McGee Air Services, consolidating entries and other immaterial business units of the company. The “Air Group Adjusted” column represents a non-GAAP measure that is used by the Company's CODM to evaluate performance and allocate resources. Adjustments are further explained below in reconciling to consolidated GAAP results. Operating segment information is as follows (in millions):
| Three Months Ended September 30, 2021
| Mainline |  | Regional |  | Horizon |  | Consolidating & Other(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger revenues | $ | 1,425 |  |  | $ | 349 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,774 |  |  | $ | — |  |  | $ | 1,774 |
CPA revenues | — |  |  | — |  |  | 107 |  |  | (107) |  |  | — |  |  | — |  |  | — |
Mileage Plan other revenue | 105 |  |  | 15 |  |  | — |  |  | — |  |  | 120 |  |  | — |  |  | 120 |
Cargo and other | 58 |  |  | — |  |  | — |  |  | 1 |  |  | 59 |  |  | — |  |  | 59 |
Total Operating Revenues | 1,588 |  |  | 364 |  |  | 107 |  |  | (106) |  |  | 1,953 |  |  | — |  |  | 1,953 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 1,060 |  |  | 288 |  |  | 93 |  |  | (113) |  |  | 1,328 |  |  | (9) |  |  | 1,319 |
Economic fuel | 299 |  |  | 77 |  |  | — |  |  | — |  |  | 376 |  |  | — |  |  | 376 |
Total Operating Expenses | 1,359 |  |  | 365 |  |  | 93 |  |  | (113) |  |  | 1,704 |  |  | (9) |  |  | 1,695 |
Nonoperating Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | 7 |  |  | — |  |  | — |  |  | (1) |  |  | 6 |  |  | — |  |  | 6 |
Interest expense | (25) |  |  | — |  |  | (6) |  |  | 1 |  |  | (30) |  |  | — |  |  | (30) |
Interest capitalized | 2 |  |  | — |  |  | — |  |  | 1 |  |  | 3 |  |  | — |  |  | 3 |
Other - net | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | — |  |  | 8 |
Total Nonoperating Income (Expense) | (8) |  |  | — |  |  | (6) |  |  | 1 |  |  | (13) |  |  | — |  |  | (13) |
Income (Loss) Before Income Tax | $ | 221 |  |  | $ | (1) |  |  | $ | 8 |  |  | $ | 8 |  |  | $ | 236 |  |  | $ | 9 |  |  | $ | 245 |
| Three Months Ended September 30, 2020
| Mainline |  | Regional |  | Horizon |  | Consolidating & Other(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger revenues | $ | 401 |  |  | $ | 171 |  |  | $ | — |  |  | $ | — |  |  | $ | 572 |  |  | $ | — |  |  | $ | 572 |
CPA revenues | — |  |  | — |  |  | 95 |  |  | (95) |  |  | — |  |  | — |  |  | — |
Mileage Plan other revenue | 65 |  |  | 19 |  |  | — |  |  | — |  |  | 84 |  |  | — |  |  | 84 |
Cargo and other | 45 |  |  | — |  |  | — |  |  | — |  |  | 45 |  |  | — |  |  | 45 |
Total Operating Revenues | 511 |  |  | 190 |  |  | 95 |  |  | (95) |  |  | 701 |  |  | — |  |  | 701 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 872 |  |  | 248 |  |  | 78 |  |  | (97) |  |  | 1,101 |  |  | 46 |  |  | 1,147 |
Economic fuel | 90 |  |  | 38 |  |  | — |  |  | — |  |  | 128 |  |  | (3) |  |  | 125 |
Total Operating Expenses | 962 |  |  | 286 |  |  | 78 |  |  | (97) |  |  | 1,229 |  |  | 43 |  |  | 1,272 |
Nonoperating Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | 8 |  |  | — |  |  | — |  |  | (1) |  |  | 7 |  |  | — |  |  | 7 |
Interest expense | (28) |  |  | — |  |  | (6) |  |  | — |  |  | (34) |  |  | — |  |  | (34) |
Interest capitalized | 4 |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 4 |
Other - net | 4 |  |  | — |  |  | — |  |  | 1 |  |  | 5 |  |  | — |  |  | 5 |
Total Nonoperating Income (Expense) | (12) |  |  | — |  |  | (6) |  |  | — |  |  | (18) |  |  | — |  |  | (18) |
Income (Loss) Before Income Tax | $ | (463) |  |  | $ | (96) |  |  | $ | 11 |  |  | $ | 2 |  |  | $ | (546) |  |  | $ | (43) |  |  | $ | (589) |
| Nine Months Ended September 30, 2021
| Mainline |  | Regional |  | Horizon |  | Consolidating & Other(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger revenues | $ | 3,003 |  |  | $ | 782 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,785 |  |  | $ | — |  |  | $ | 3,785 |
CPA revenues | — |  |  | — |  |  | 322 |  |  | (322) |  |  | — |  |  | — |  |  | — |
Mileage Plan other revenue | 287 |  |  | 45 |  |  | — |  |  | — |  |  | 332 |  |  | — |  |  | 332 |
Cargo and other | 157 |  |  | — |  |  | — |  |  | 3 |  |  | 160 |  |  | — |  |  | 160 |
Total Operating Revenues | 3,447 |  |  | 827 |  |  | 322 |  |  | (319) |  |  | 4,277 |  |  | — |  |  | 4,277 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 2,937 |  |  | 839 |  |  | 272 |  |  | (349) |  |  | 3,699 |  |  | (921) |  |  | 2,778 |
Economic fuel | 726 |  |  | 195 |  |  | — |  |  | — |  |  | 921 |  |  | (68) |  |  | 853 |
Total Operating Expenses | 3,663 |  |  | 1,034 |  |  | 272 |  |  | (349) |  |  | 4,620 |  |  | (989) |  |  | 3,631 |
Nonoperating Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | 20 |  |  | — |  |  | — |  |  | (1) |  |  | 19 |  |  | — |  |  | 19 |
Interest expense | (86) |  |  | — |  |  | (16) |  |  | 1 |  |  | (101) |  |  | — |  |  | (101) |
Interest capitalized | 8 |  |  | — |  |  | — |  |  | 1 |  |  | 9 |  |  | — |  |  | 9 |
Other - net | 27 |  |  | — |  |  | — |  |  | — |  |  | 27 |  |  | — |  |  | 27 |
Total Nonoperating Income (Expense) | (31) |  |  | — |  |  | (16) |  |  | 1 |  |  | (46) |  |  | — |  |  | (46) |
Income (Loss) Before Income Tax | $ | (247) |  |  | $ | (207) |  |  | $ | 34 |  |  | $ | 31 |  |  | $ | (389) |  |  | $ | 989 |  |  | $ | 600 |
| Nine Months Ended September 30, 2020
| Mainline |  | Regional |  | Horizon |  | Consolidating & Other(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger revenues | $ | 1,860 |  |  | $ | 502 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,362 |  |  | $ | — |  |  | $ | 2,362 |
CPA revenues | — |  |  | — |  |  | 281 |  |  | (281) |  |  | — |  |  | — |  |  | — |
Mileage Plan other revenue | 219 |  |  | 47 |  |  | — |  |  | — |  |  | 266 |  |  | — |  |  | 266 |
Cargo and other | 128 |  |  | — |  |  | — |  |  | 2 |  |  | 130 |  |  | — |  |  | 130 |
Total Operating Revenues | 2,207 |  |  | 549 |  |  | 281 |  |  | (279) |  |  | 2,758 |  |  | — |  |  | 2,758 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 2,777 |  |  | 727 |  |  | 238 |  |  | (289) |  |  | 3,453 |  |  | (83) |  |  | 3,370 |
Economic fuel | 448 |  |  | 120 |  |  | — |  |  | — |  |  | 568 |  |  | — |  |  | 568 |
Total Operating Expenses | 3,225 |  |  | 847 |  |  | 238 |  |  | (289) |  |  | 4,021 |  |  | (83) |  |  | 3,938 |
Nonoperating Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | 33 |  |  | — |  |  | — |  |  | (10) |  |  | 23 |  |  | — |  |  | 23 |
Interest expense | (58) |  |  | — |  |  | (16) |  |  | 10 |  |  | (64) |  |  | — |  |  | (64) |
Interest capitalized | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | — |  |  | 8 |
Other - net | 16 |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | — |  |  | 16 |
Total Nonoperating Income (Expense) | (1) |  |  | — |  |  | (16) |  |  | — |  |  | (17) |  |  | — |  |  | (17) |
Income (Loss) Before Income Tax | $ | (1,019) |  |  | $ | (298) |  |  | $ | 27 |  |  | $ | 10 |  |  | $ | (1,280) |  |  | $ | 83 |  |  | $ | (1,197) |
(a)Includes consolidating entries, Air Group parent company, McGee Air Services, and other immaterial business units. (b)The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocation and excludes certain charges. See Note A in the accompanying pages for further information. (c)Includes Payroll Support Program wage offsets, special items and mark-to-market fuel hedge accounting adjustments.
Total assets were as follows (in millions):
| September 30, 2021 |  | December 31, 2020
Mainline | $ | 19,161 |  |  | $ | 19,754 |
Horizon | 1,251 |  |  | 1,170 |
Consolidating & Other | (6,530) |  |  | (6,878) |
Consolidated | $ | 13,882 |  |  | $ | 14,046 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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