OPERATING SEGMENT INFORMATION

In 2025, Air Group operated three airlines, Alaska Airlines, Horizon Air, and, through October 29, 2025, Hawaiian Airlines. On that date, Alaska Airlines' and Hawaiian Airlines' operations were combined under Alaska's FAA operating certificate. Alaska has CPAs for regional capacity with Horizon and SkyWest.

Air Group's Chief Operating Decision Maker (CODM) is its President and CEO. 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. As of December 31, 2025, the CODM reviewed financial information for three reportable operating segments which are described below.

•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 as of December 31, 2025. Air Group's measure of segment profit or loss is pretax profit, which is used by the CODM to evaluate financial results. Reconciliations of the revenue and pretax profit of all reportable segments to Air Group's consolidated revenue and income before income tax are provided through the column titled 'Consolidated & Other.' This column includes activity from operating segments below the quantitative thresholds, special items and other adjustments not assigned to any operating segment, and other immaterial business units, including Air Group parent company activity, Horizon Air operations, McGee Air Services, consolidating entries, and intercompany eliminations. Certain immaterial reclassifications have been made within segment operating expenses between the Alaska Airlines and Regional segments for the years ended December 31, 2024 and 2023. These reclassifications had no impact to consolidated results.

In 2026, the company’s segments disclosure will change to reflect a single reportable segment for Passenger Air Transportation, which includes revenue and expenses associated with the transportation of passengers on Boeing, Airbus, and E175 aircraft. This change is the result of changes in the business, organizational structure, and financial reports that will be provided on a regular basis to the CODM. In the second half of 2025, several integration milestones were completed which resulted in the combination of a significant portion of Alaska and Hawaiian teams, technology, and processes. Additionally, changes were made in the company’s leadership structure to support the integration of the businesses.


	Year Ended December 31, 2025
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional		Consolidating & Other(a)		Consolidated
Operating Revenue
Passenger revenue	$	8,132	$	2,918	$	1,785	$	—	$	12,835
Loyalty program other revenue	653		134		68		—		855
Cargo and other revenue	305		231		—		13		549
Total Operating Revenue	9,090		3,283		1,853		13		14,239

Operating Expenses
Wages and benefits	3,079		1,110		—		574		4,763
Variable incentive pay	182		62		—		24		268
Aircraft fuel	1,777		723		383		(4)		2,879
Aircraft maintenance	504		321		—		87		912
Aircraft rent	83		59		—		108		250
Landing fees and other rentals	661		244		—		204		1,109
Contracted services	572		143		—		(125)		590
Selling expenses	254		118		—		35		407
Depreciation and amortization	501		232		—		62		795
Food and beverage service	244		108		—		31		383
Other(b)	692		243		—		123		1,058
Regional carrier expenses	—		—		1,471		(1,199)		272
Special items - operating(c)	—		—		—		250		250
Total Operating Expenses	8,549		3,363		1,854		170		13,936

Non-operating Income (Expense)
Interest income	176		10		—		(92)		94
Interest expense	(209)		(122)		—		59		(272)
Other(b)	18		3		—		—		21
Total Non-operating Expense	(15)		(109)		—		(33)		(157)

Pretax Income (Loss)	$	526	$	(189)	$	(1)	$	(190)	$	146


	Year Ended December 31, 2024
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional		Consolidating & Other(a)		Consolidated
Operating Revenue
Passenger revenue	$	8,151	$	757	$	1,746	$	—	$	10,654
Loyalty program other revenue	621		53		59		—		733
Cargo and other revenue	279		59		—		10		348
Total Operating Revenue	9,051		869		1,805		10		11,735

Operating Expenses
Wages and benefits	2,781		299		—		508		3,588
Variable incentive pay	318		4		—		36		358
Aircraft fuel	1,962		195		377		(28)		2,506
Aircraft maintenance	475		82		—		63		620
Aircraft rent	81		18		—		108		207
Landing fees and other rentals	555		61		—		165		781
Contracted services	511		39		—		(106)		444
Selling expenses	271		40		—		38		349
Depreciation and amortization	462		64		—		57		583
Food and beverage service	231		28		—		28		287
Other(b)	680		66		—		108		854
Regional carrier expenses	—		—		1,317		(1,074)		243
Special items - operating(c)	—		—		—		345		345
Total Operating Expenses	8,327		896		1,694		248		11,165

Non-operating Income (Expense)
Interest income	113		7		—		(19)		101
Interest expense	(112)		(37)		—		(22)		(171)
Other(b)	19		(1)		—		11		29
Special items - net non-operating(c)	—		—		—		16		16
Total Non-operating Income (Expense)	20		(31)		—		(14)		(25)

Pretax Income (Loss)	$	744	$	(58)	$	111	$	(252)	$	545


	Year Ended December 31, 2023
(in millions)	Alaska Airlines		Hawaiian Airlines		Regional			Consolidating & Other(a)		Consolidated
Operating Revenue
Passenger revenue	$	8,010	$	—	$	1,516		$	—	$	9,526
Loyalty program other revenue	599		—		49			—		648
Cargo and other revenue	244		—		—			8		252
Total Operating Revenue	8,853		—		1,565		—	8		10,426

Operating Expenses
Wages and benefits	2,562		—		—			479		3,041
Variable incentive pay	175		—		—			25		200
Aircraft fuel	2,264		—		379			(2)		2,641
Aircraft maintenance	440		—		—			48		488
Aircraft rent	100		—		—			108		208
Landing fees and other rentals	539		—		—			141		680
Contracted services	492		—		—			(103)		389
Selling expenses	268		—		—			35		303
Depreciation and amortization	402		—		—			49		451
Food and beverage service	218		—		—			23		241
Other(b)	625		—		—			104		729
Regional carrier expenses	—		—		1,141			(923)		218
Special items - operating(c)	—		—		—			443		443
Total Operating Expenses	8,085		—		1,520			427		10,032

Non-operating Income (Expense)
Interest income	95		—		—			(15)		80
Interest expense	(96)		—		—			(25)		(121)
Other(b)	(14)		—		—			2		(12)
Special items - net non-operating(c)	—		—		—			(18)		(18)
Total Non-operating Expense	(15)		—		—			(56)		(71)

Pretax Income (Loss)	$	753	$	—	$	45		$	(475)	$	323

(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.


(in millions)	2025		2024		2023
Capital expenditures:
Alaska Airlines	$	1,098	$	1,226	$	1,473
Hawaiian Airlines	474		33		—
Other(a)	85		90		200
Consolidated	$	1,657	$	1,349	$	1,673

Total assets at end of period(b):
Alaska Airlines	$	24,985	$	24,664
Hawaiian Airlines	4,911		4,423
Consolidating & Other	(9,535)		(9,319)
Consolidated	$	20,361	$	19,768

Goodwill:
Alaska Airlines	$	2,177	$	2,177
Hawaiian Airlines	546		547
Consolidated	$	2,723	$	2,724

(a) Primarily consists of Horizon Air capital expenditures, including non-cash expenditures for debt financing of certain E175 deliveries of $69 million in 2025, $68 million in 2024 and $179 million in 2023.

(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.

Historical Timeline

Fiscal Year	Filed
2025	Feb 12, 2026	Showing above
2017	Feb 15, 2018

2016	Feb 28, 2017

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

ALASKA AIR GROUP, INC. Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures