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ALASKA AIR GROUP, INC.

CIK:0000766421|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating Revenue
Total Operating Revenue	$ 4,065	$ 3,704	$ 7,365	$ 6,841
Operating Expenses
Wages and benefits	1,239	1,165	2,481	2,292
Variable incentive pay	65	61	95	123
Aircraft fuel	1,305	700	2,101	1,381
Aircraft maintenance	256	240	472	460
Aircraft rent	64	64	125	126
Landing fees and other rentals	305	278	596	520
Contracted services	158	146	309	291
Selling expenses	115	105	214	205
Depreciation and amortization	207	199	411	393
Food and beverage service	107	97	202	182
Third-party regional carrier expense	68	69	124	133
Other	302	247	605	508
Special items - operating	42	56	77	147
Total Operating Expenses	4,233	3,427	7,812	6,761
Operating Income (Loss)	(168)	277	(447)	80
Non-operating Income (Expense)
Interest income	21	22	40	48
Interest expense	(86)	(66)	(162)	(132)
Interest capitalized	13	9	23	21
Other - net	6	(4)	15	(12)
Total Non-operating Expense	(46)	(39)	(84)	(75)
Income (Loss) Before Income Tax	(214)	238	(531)	5
Income tax expense (benefit)	(138)	66	(262)	(1)
Net Income (Loss)	$ (76)	$ 172	$ (269)	$ 6
Basic Earnings (Loss) Per Share (in dollars per share)	$ (0.68)	$ 1.45	$ (2.39)	$ 0.05
Diluted Earnings (Loss) Per Share (in dollars per share)	$ (0.68)	$ 1.42	$ (2.39)	$ 0.05
Weighted Average Shares Outstanding used for computation:
Basic	111,127,000	118,847,000	112,702,000	120,979,000
Diluted	111,127,000	120,930,000	112,702,000	123,183,000
Passenger revenue
Operating Revenue
Total Operating Revenue	$ 3,644	$ 3,355	$ 6,564	$ 6,163
Passenger revenue \| Passenger
Operating Revenue
Total Operating Revenue	3,644	3,355	6,564	6,163
Loyalty Plan Revenue
Operating Revenue
Total Operating Revenue	646	571	1,220	1,094
Loyalty Plan Revenue \| Passenger
Operating Revenue
Total Operating Revenue	388	361	735	677
Loyalty Plan Revenue \| Loyalty program other
Operating Revenue
Total Operating Revenue	258	210	485	417
Cargo and other revenue
Operating Revenue
Total Operating Revenue	163	139	316	261
Cargo and other revenue \| Cargo and Freight
Operating Revenue
Total Operating Revenue	$ 163	$ 139	$ 316	$ 261

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net Income (Loss)	$ (76)	$ 172	$ (269)	$ 6
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	207	199	411	393
Stock-based compensation and other			42	10
Non-cash special items			0	52
Changes in certain assets and liabilities:
Changes in deferred income taxes			(262)	1
Increase in accounts receivable			(119)	(171)
Increase in air traffic liability			709	415
Increase in deferred revenue			97	216
Other - net			(3)	(87)
Net cash provided by operating activities			606	835
Property and equipment additions
Aircraft, aircraft purchase deposits, and other flight equipment			(415)	(613)
Other property and equipment			(108)	(128)
Purchases of marketable securities			(872)	(844)
Sales and maturities of marketable securities			761	765
Other investing activities			(1)	73
Net cash used in investing activities			(635)	(747)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt, net of issuance costs			1,099	168
Long-term debt payments			(405)	(236)
Common stock repurchases			(250)	(535)
Other financing activities			28	59
Net cash provided by (used in) financing activities			472	(544)
Net increase (decrease) in cash and cash equivalents			443	(456)
Cash, cash equivalents, and restricted cash at beginning of period			684	1,257
Cash, cash equivalents, and restricted cash at end of period	1,127	801	1,127	801
Cash paid during the period for:
Interest, net of amount capitalized			114	108
Non-cash transactions:
Right-of-use assets acquired through operating leases			174	74
Property and equipment acquired through the issuance of debt			48	69
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	1,064	750	1,064	750
Restricted cash	33	28	33	28
Restricted cash included in Other noncurrent assets	30	23	30	23
Total cash, cash equivalents, and restricted cash at end of period	$ 1,127	$ 801	$ 1,127	$ 801

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and cash equivalents	$ 1,064	$ 627
Restricted cash	33	28
Marketable securities	1,598	1,496
Receivables - net	681	565
Inventories and supplies - net	253	203
Prepaid expenses	261	278
Other current assets	46	69
Total Current Assets	3,936	3,266
Property and equipment - net of accumulated depreciation and amortization of $5,205 and $4,945	12,009	11,857
Operating lease assets	1,345	1,268
Goodwill	2,723	2,723
Intangible assets - net of accumulated amortization of $102 and $74	787	815
Other noncurrent assets	446	432
Total Noncurrent Assets	17,310	17,095
Total Assets	21,246	20,361
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	403	324
Accrued wages, vacation and payroll taxes	727	881
Other accrued liabilities	1,217	1,055
Current portion of long-term debt and finance leases	452	721
Current portion of operating lease liabilities	217	197
Total Current Liabilities	7,192	6,589
Long-term debt and finance leases, net of current portion	5,783	4,834
Operating lease liabilities, net of current portion	1,164	1,141
Deferred income taxes	739	1,004
Deferred revenue	1,752	1,711
Obligation for pension and post-retirement medical benefits	349	369
Other liabilities	597	595
Total Noncurrent Liabilities	10,384	9,654
Commitments and Contingencies (Note 6)
Shareholders' Equity
Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding	0	0
Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2026 - 147,087,872 shares; 2025 - 145,115,659 shares, Outstanding: 2026 - 111,566,970 shares; 2025 - 115,530,889 shares	1	1
Capital in excess of par value	1,034	961
Treasury stock (common), at cost: 2026 - 35,520,902 shares; 2025 - 29,584,770 shares	(1,951)	(1,701)
Accumulated other comprehensive loss	(175)	(173)
Retained earnings	4,761	5,030
Total Shareholders' Equity	3,670	4,118
Total Liabilities and Shareholders' Equity	21,246	20,361
Air traffic liability
LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred revenue	2,398	1,689
Loyalty Plan Revenue
LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred revenue	$ 1,778	$ 1,722