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DEBT | 6 Months Ended
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Jun. 30, 2025
Debt Disclosure [Abstract] |
DEBT | DEBT Debt obligations on the unaudited condensed consolidated balance sheets:
(in millions) | June 30, 2025 |  | December 31, 2024
Fixed-rate notes payable due through 2037 | $ | 127 |  |  | $ | 56 |
Fixed-rate PSP notes payable due through 2031 | 629 |  |  | 688 |
Fixed-rate EETCs payable due through 2027 | 801 |  |  | 864 |
Fixed-rate Japanese Yen denominated notes payable due through 2031 | 61 |  |  | 88 |
Variable-rate PSP notes payable due through 2030 | 61 |  |  | — |
Variable-rate notes payable due through 2037 | 1,316 |  |  | 1,283 |
Loyalty financing, variable-rate term loan facility due through 2031 | 746 |  |  | 750 |
Loyalty financing, fixed-rate notes due through 2031 | 1,250 |  |  | 1,250 |
Less debt issuance costs | (43) |  |  | (46) |
Total debt | 4,948 |  |  | 4,933 |
Less current portion | 500 |  |  | 442 |
Long-term debt, less current portion | $ | 4,448 |  |  | $ | 4,491 |
Weighted-average fixed-interest rate | 4.0 | % |  | 3.9 | %
Weighted-average variable-interest rate | 6.0 | % |  | 6.3 | %
In the second quarter, interest rates on certain PSP debt were adjusted from a fixed-rate to a variable-rate, in accordance with the terms of the loan agreement. Approximately $535 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at June 30, 2025, resulting in an effective weighted-average interest rate for the full debt portfolio of 4.8%. During the six months ended June 30, 2025, the Company incurred debt of $237 million from multiple lenders and sources. New debt includes proceeds of $168 million, secured by aircraft. Additionally, $69 million 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. During the six months ended June 30, 2025, the Company made debt payments of $236 million. Subsequent to quarter end, the Company incurred additional debt of $154 million, secured by aircraft. Additionally, the Company, through a wholly-owned subsidiary, amended its variable rate term loan facility, secured by assets associated with Alaska's Mileage Plan program. The amendment provides for a repricing of the loans under the facility. Debt maturity At June 30, 2025, debt principal payments for the next five years and thereafter are as follows:
(in millions) | Total
Remainder of 2025 | $ | 217 |
2026 | 520 |
2027 | 719 |
2028 | 241 |
2029 | 795 |
Thereafter | 2,525 |
Total Principal Payments(a) | $ | 5,017 |
(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 unaudited condensed consolidated balance sheets will not equal the total balance of remaining principal payments presented in this table. Bank lines of credit Alaska and Hawaiian have a combined revolving credit facility for $850 million, expiring in September 2029, which is secured by a combination of aircraft, slots, gates, routes, and other eligible assets. The facility has a variable interest rate based on SOFR plus a specified margin. As of June 30, 2025, the Company had no outstanding borrowing under this facility. In June 2025, Alaska and Hawaiian entered into an agreement to renew and upsize a second credit facility with multiple lenders. This facility is for $106 million, expires in June 2027, and is secured by aircraft. Letters of credit have been secured 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 June 30, 2025.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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