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OPERATING SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2023
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 revenue. Under 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 jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas. •Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S., Canada, and Mexico under a CPA. This segment includes the actual revenue 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 a 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 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 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):
| Year Ended December 31, 2023
| Mainline |  | Regional |  | Horizon |  | Consolidating & Other(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger revenue | $ | 8,097 |  |  | $ | 1,429 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,526 |  |  | $ | — |  |  | $ | 9,526 |
CPA revenue | — |  |  | — |  |  | 374 |  |  | (374) |  |  | — |  |  | — |  |  | — |
Mileage Plan other revenue | 599 |  |  | 49 |  |  | — |  |  | — |  |  | 648 |  |  | — |  |  | 648 |
Cargo and other revenue | 244 |  |  | — |  |  | — |  |  | 8 |  |  | 252 |  |  | — |  |  | 252 |
Total Operating Revenue | 8,940 |  |  | 1,478 |  |  | 374 |  |  | (366) |  |  | 10,426 |  |  | — |  |  | 10,426 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 5,841 |  |  | 1,121 |  |  | 344 |  |  | (358) |  |  | 6,948 |  |  | 443 |  |  | 7,391 |
Fuel expense | 2,264 |  |  | 379 |  |  | — |  |  | — |  |  | 2,643 |  |  | (2) |  |  | 2,641 |
Total Operating Expenses | 8,105 |  |  | 1,500 |  |  | 344 |  |  | (358) |  |  | 9,591 |  |  | 441 |  |  | 10,032 |
Non-operating Income (Expense) | (15) |  |  | — |  |  | (41) |  |  | 3 |  |  | (53) |  |  | (18) |  |  | (71) |
Income (Loss) Before Income Tax | $ | 820 |  |  | $ | (22) |  |  | $ | (11) |  |  | $ | (5) |  |  | $ | 782 |  |  | $ | (459) |  |  | $ | 323 |
Pretax Margin |  |  |  |  |  |  |  |  | 7.5 | % |  |  |  | 3.1 | %
| Year Ended December 31, 2022
| Mainline |  | Regional |  | Horizon |  | Consolidating & Other(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger revenue | $ | 7,454 |  |  | $ | 1,354 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,808 |  |  | $ | — |  |  | $ | 8,808 |
CPA revenue | — |  |  | — |  |  | 359 |  |  | (359) |  |  | — |  |  | — |  |  | — |
Mileage Plan other revenue | 538 |  |  | 52 |  |  | — |  |  | — |  |  | 590 |  |  | — |  |  | 590 |
Cargo and other revenue | 244 |  |  | — |  |  | — |  |  | 4 |  |  | 248 |  |  | — |  |  | 248 |
Total Operating Revenue | 8,236 |  |  | 1,406 |  |  | 359 |  |  | (355) |  |  | 9,646 |  |  | — |  |  | 9,646 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 5,216 |  |  | 1,085 |  |  | 383 |  |  | (356) |  |  | 6,328 |  |  | 580 |  |  | 6,908 |
Fuel expense | 2,195 |  |  | 397 |  |  | — |  |  | — |  |  | 2,592 |  |  | 76 |  |  | 2,668 |
Total Operating Expenses | 7,411 |  |  | 1,482 |  |  | 383 |  |  | (356) |  |  | 8,920 |  |  | 656 |  |  | 9,576 |
Non-operating Income (Expense) | 30 |  |  | — |  |  | (22) |  |  | 1 |  |  | 9 |  |  | — |  |  | 9 |
Income (Loss) Before Income Tax | $ | 855 |  |  | $ | (76) |  |  | $ | (46) |  |  | $ | 2 |  |  | $ | 735 |  |  | $ | (656) |  |  | $ | 79 |
Pretax Margin |  |  |  |  |  |  |  |  | 7.6 | % |  |  |  | 0.8 | %
| Year Ended December 31, 2021
| Mainline |  | Regional |  | Horizon |  | Consolidating & Other(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger revenue | $ | 4,411 |  |  | $ | 1,088 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,499 |  |  | $ | — |  |  | $ | 5,499 |
CPA revenue | — |  |  | — |  |  | 406 |  |  | (406) |  |  | — |  |  | — |  |  | — |
Mileage Plan other revenue | 402 |  |  | 59 |  |  | — |  |  | — |  |  | 461 |  |  | — |  |  | 461 |
Cargo and other revenue | 212 |  |  | — |  |  | — |  |  | 4 |  |  | 216 |  |  | — |  |  | 216 |
Total Operating Revenue | 5,025 |  |  | 1,147 |  |  | 406 |  |  | (402) |  |  | 6,176 |  |  | — |  |  | 6,176 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 4,101 |  |  | 1,096 |  |  | 373 |  |  | (433) |  |  | 5,137 |  |  | (925) |  |  | 4,212 |
Fuel expense | 1,065 |  |  | 261 |  |  | — |  |  | — |  |  | 1,326 |  |  | (47) |  |  | 1,279 |
Total Operating Expenses | 5,166 |  |  | 1,357 |  |  | 373 |  |  | (433) |  |  | 6,463 |  |  | (972) |  |  | 5,491 |
Non-operating Income (Expense) | (38) |  |  | — |  |  | (21) |  |  | 3 |  |  | (56) |  |  | — |  |  | (56) |
Income (Loss) Before Income Tax | $ | (179) |  |  | $ | (210) |  |  | $ | 12 |  |  | $ | 34 |  |  | $ | (343) |  |  | $ | 972 |  |  | $ | 629 |
Pretax Margin |  |  |  |  |  |  |  |  | (5.6) | % |  |  |  | 10.2 | %
(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 allocations and excludes certain charges. (c) Includes special items and mark-to-market fuel-hedge accounting adjustments.
| 2023 |  | 2022 |  | 2021
Depreciation and amortization: |  |  |  |  |
Mainline | $ | 403 |  |  | $ | 351 |  |  | $ | 323 |
Horizon | 48 |  |  | 64 |  |  | 71 |
Consolidated | $ | 451 |  |  | $ | 415 |  |  | $ | 394 |
Capital expenditures: |  |  |  |  |
Mainline | $ | 1,473 |  |  | $ | 1,544 |  |  | $ | 236 |
Horizon(a) | 200 |  |  | 127 |  |  | 56 |
Consolidated | $ | 1,673 |  |  | $ | 1,671 |  |  | $ | 292 |
Total assets at end of period: |  |  |  |  |
Mainline | $ | 19,937 |  |  | $ | 19,733 |  |  |
Horizon | 1,352 |  |  | 1,157 |  |  |
Consolidating & Other | (6,676) |  |  | (6,704) |  |  |
Consolidated | $ | 14,613 |  |  | $ | 14,186 |  |  |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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