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Segment Reporting | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
OPERATING SEGMENT INFORMATION | OPERATING SEGMENT INFORMATION Alaska Air Group has three operating airlines – Alaska, Hawaiian, 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. Air Group's Chief Operating Decision Maker (CODM) is its President and CEO. In the third quarter of 2024, the CODM began to review financial results for Hawaiian to assess performance and make resource allocation decisions for Air Group. As a result, the Company determined Hawaiian was an operating and reportable segment. Air Group's network and schedules are centrally managed for all its operating airlines and CPA flying. Managing the business in an integrated manner enables the Company to leverage its comprehensive network, route scheduling system, and fleet as a single business. The CODM makes resource allocation decisions to deliver optimized consolidated financial results, regardless of the profitability of an individual segment. Air Group intends to combine Alaska and Hawaiian under a single operating certificate in the near term. At that time, management anticipates the discrete information provided to the CODM will similarly be combined. Management is considering other changes to internal reporting that may impact the discrete information provided to the CODM to better align with the way the business is managed. These changes may have an impact on the Company's reportable segments once finalized. The CODM reviews financial performance information as part of three reportable operating segments which are described above: •Alaska Airlines - includes scheduled air transportation on Alaska's Boeing aircraft for passengers and cargo. •Hawaiian Airlines - includes scheduled air transportation on Hawaiian's Boeing and Airbus aircraft for passengers and cargo. •Regional - includes Horizon's and other third-party carriers’ scheduled air transportation on E175 aircraft for passengers under CPAs. 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. The below tables present segment revenue and expenses for Air Group's reportable segments. Air Group's measure of segment profit or loss is pretax profit, which is used by the CODM to evaluate financial results. Additionally, reconciliations of the pretax profit of all reportable segments to Air Group's consolidated income before income tax are provided.
| Three Months Ended March 31, 2025
(in millions) | Alaska Airlines |  | Hawaiian Airlines |  | Regional |  | Reportable Segment Total
Segment operating revenue |  |  |  |  |  |  |
Passenger revenue | $ | 1,757 |  |  | $ | 653 |  |  | $ | 398 |  |  | $ | 2,808 |
Loyalty program other revenue | 152 |  |  | 39 |  |  | 16 |  |  | 207 |
Cargo and other revenue | 65 |  |  | 55 |  |  | — |  |  | 120 |
Total segment operating revenue | 1,974 |  |  | 747 |  |  | 414 |  |  | 3,135 |
Reconciliation to Consolidated Operating Revenue: |  |  |  |  |  |  |
Other revenue(a) |  |  |  |  |  |  | 2 |
Consolidated Operating Revenue |  |  |  |  |  |  | $ | 3,137 |
Segment operating expenses |  |  |  |  |  |  |
Wages and benefits | 721 |  |  | 277 |  |  | — |  |  | 998 |
Variable incentive pay | 43 |  |  | 13 |  |  | — |  |  | 56 |
Economic fuel | 419 |  |  | 174 |  |  | 91 |  |  | 684 |
Aircraft maintenance | 124 |  |  | 75 |  |  | — |  |  | 199 |
Aircraft rent | 21 |  |  | 15 |  |  | — |  |  | 36 |
Landing fees and other rentals | 154 |  |  | 54 |  |  | — |  |  | 208 |
Contracted services | 134 |  |  | 36 |  |  | — |  |  | 170 |
Selling expenses | 62 |  |  | 30 |  |  | — |  |  | 92 |
Depreciation and amortization | 121 |  |  | 58 |  |  | — |  |  | 179 |
Food and beverage service | 55 |  |  | 24 |  |  | — |  |  | 79 |
Other(b) | 173 |  |  | 58 |  |  | — |  |  | 231 |
Regional carrier expenses | — |  |  | — |  |  | 333 |  |  | 333 |
Total segment operating expenses | 2,027 |  |  | 814 |  |  | 424 |  |  | 3,265 |
Segment non-operating income (expense) |  |  |  |  |  |  |
Interest income | 43 |  |  | 3 |  |  | — |  |  | 46 |
Interest expense | (52) |  |  | (26) |  |  | — |  |  | (78) |
Other(b) | 7 |  |  | 2 |  |  | — |  |  | 9 |
Total segment non-operating income (expense) | (2) |  |  | (21) |  |  | — |  |  | (23) |
Segment pretax loss | $ | (55) |  |  | $ | (88) |  |  | $ | (10) |  |  | $ | (153) |
Reconciliation to Consolidated Loss Before Income Tax: |  |  |  |  |  |  |
Other profit (loss)(a) |  |  |  |  |  |  | 13 |
Aircraft fuel mark-to-market adjustment |  |  |  |  |  |  | 3 |
Losses on foreign debt |  |  |  |  |  |  | (5) |
Special items - operating |  |  |  |  |  |  | (91) |
Consolidated Loss Before Income Tax |  |  |  |  |  |  | $ | (233) |
| Three Months Ended March 31, 2024
(in millions) | Alaska Airlines |  | Hawaiian Airlines |  | Regional |  | Reportable Segment Total
Segment operating revenue |  |  |  |  |  |  |
Passenger revenue | $ | 1,629 |  |  | $ | — |  |  | $ | 375 |  |  | $ | 2,004 |
Loyalty program other revenue | 149 |  |  | — |  |  | 15 |  |  | $ | 164 |
Cargo and other revenue | 62 |  |  | — |  |  | — |  |  | $ | 62 |
Total segment operating revenue | 1,840 |  |  | — |  |  | 390 |  |  | 2,230 |
Reconciliation to Consolidated Operating Revenue: |  |  |  |  |  |  |
Other revenue(a) |  |  |  |  |  |  | 2 |
Consolidated Operating Revenue |  |  |  |  |  |  | $ | 2,232 |
Segment operating expenses |  |  |  |  |  |  |
Wages and benefits | 683 |  |  | — |  |  | — |  |  | 683 |
Variable incentive pay | 39 |  |  | — |  |  | — |  |  | 39 |
Economic fuel | 485 |  |  | — |  |  | 93 |  |  | 578 |
Aircraft maintenance | 107 |  |  | — |  |  | — |  |  | 107 |
Aircraft rent | 20 |  |  | — |  |  | — |  |  | 20 |
Landing fees and other rentals | 137 |  |  | — |  |  | — |  |  | 137 |
Contracted services | 120 |  |  | — |  |  | — |  |  | 120 |
Selling expenses | 67 |  |  | — |  |  | — |  |  | 67 |
Depreciation and amortization | 112 |  |  | — |  |  | — |  |  | 112 |
Food and beverage service | 52 |  |  | — |  |  | — |  |  | 52 |
Other(b) | 177 |  |  | — |  |  | — |  |  | 177 |
Regional carrier expenses | — |  |  | — |  |  | 299 |  |  | 299 |
Total segment operating expenses | 1,999 |  |  | — |  |  | 392 |  |  | 2,391 |
Segment non-operating income (expense) |  |  |  |  |  |  |
Interest income | 18 |  |  | — |  |  | — |  |  | 18 |
Interest expense | (25) |  |  | — |  |  | — |  |  | (25) |
Other(b) | 4 |  |  | — |  |  | — |  |  | 4 |
Total segment non-operating income (expense) | (3) |  |  | — |  |  | — |  |  | (3) |
Segment pretax loss | $ | (162) |  |  | $ | — |  |  | $ | (2) |  |  | $ | (164) |
Reconciliation to Consolidated Loss Before Income Tax: |  |  |  |  |  |  |
Other profit (loss)(a) |  |  |  |  |  |  | 7 |
Aircraft fuel mark-to-market adjustment |  |  |  |  |  |  | 13 |
Special items - operating |  |  |  |  |  |  | (34) |
Consolidated Loss Before Income Tax |  |  |  |  |  |  | $ | (178) |
(a) Revenue and profit or loss from segments below the quantitative thresholds as well as other immaterial business units, including Air Group parent company activity, Horizon Air operations, McGee Air Services, consolidating entries and intercompany eliminations. (b) Includes miscellaneous personnel, software, and services costs, as well as other non-operating activity.
Total capital expenditures were as follows:
| Three Months Ended March 31,
(in millions) | 2025 |  | 2024
Alaska Airlines | $ | 92 |  |  | $ | 52 |
Hawaiian Airlines | 144 |  |  | — |
Other(a) | 25 |  |  | 50 |
Consolidated | $ | 261 |  |  | $ | 102 |
Total assets were as follows(b):
(in millions) | March 31, 2025 |  | December 31, 2024
Alaska Airlines | $ | 24,404 |  |  | $ | 24,664 |
Hawaiian Airlines | 4,549 |  |  | 4,423 |
Consolidating & Other | (9,135) |  |  | (9,319) |
Consolidated | $ | 19,818 |  |  | $ | 19,768 |
(a) Primarily consists of Horizon Air capital expenditures, including non-cash expenditures for debt financing of certain E175 deliveries of $23 million in 2025 and $45 million in 2024. (b) No assets are allocated to the Regional segment as it represents only revenue and expenses associated with regional flying. The related assets associated with regional flying are allocated to other segments.

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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 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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