v3.26.3
Long-term Debt, Short-term Borrowings and Finance Lease Obligations
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Long-term Debt, Short-term Borrowings and Finance Lease Obligations Long-term Debt, Short-term Borrowings, and Finance Lease Obligations
During the nine months ended September 30, 2026, we made principal payments of $658 million on our outstanding debt and finance lease obligations.
At September 30, 2026, we had pledged aircraft, engines, other equipment, and facilities assets with a net book value of $8.0 billion as security under various financing arrangements. In addition, certain TrueBlue® program assets have been pledged as part of the financing of the TrueBlue® program.
At September 30, 2026, scheduled maturities of our long-term debt and finance lease obligations, net of debt issuance costs, for the next five years were as follows (in millions):
YearTotal
Remainder of 2026$152 
2027477 
2028582 
20291,835 
2030656 
Thereafter4,691 
Total$8,393 
Long-term debt and finance lease obligations at September 30, 2026 and December 31, 2025 consisted of the following (in millions):
September 30, 2026
December 31, 2025
Secured Debt
Fixed rate special facility bonds, due through 2036$43 $43 
Fixed rate enhanced equipment notes:
2019-1 Series AA, due through 2032409 424 
2019-1 Series A, due through 2028128 132 
2019-1 Series B, due through 202738 45 
2020-1 Series A, due through 2032407 428 
2020-1 Series B, due through 202873 82 
Fixed rate equipment notes, due through 2036573 127 
Floating rate equipment notes, due through 2036 (1)
619 673 
Aircraft failed sale-leaseback transactions, due through 2036 (1)
2,011 2,103 
TrueBlue® senior secured notes, due through 2031
1,991 1,990 
TrueBlue® senior secured term loan facility, due through 2029 (1)
742 744 
Finance leases421 449 
Unsecured Debt
Unsecured CARES Act Payroll Support Program loan, due through 2030259 259 
Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031144 144 
Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031132 132 
0.50% convertible senior notes, due through 2026
— 325 
2.50% convertible senior notes, due through 2029
460 460 
Total debt and finance lease obligations$8,450 $8,560 
Less: Debt issuance costs(57)(62)
Less: Current maturities(482)(769)
Long-term debt and finance lease obligations$7,911 $7,729 
(1) Certain debt bears interest at a floating rate equal to Secured Overnight Financing Rate ("SOFR"), plus a margin.
The carrying amounts and estimated fair values of our long-term debt and finance lease obligations, net of debt issuance costs, at September 30, 2026 and December 31, 2025 were as follows (in millions):
September 30, 2026December 31, 2025
Carrying Value
Estimated Fair Value (1)
Carrying Value
Estimated Fair Value (1)
Total Debt$8,393 $7,620 $8,498 $7,829 
(1) The estimated fair values of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair values of our non-public debt are estimated using a discounted cash flow analysis based on our borrowing rates for instruments with similar terms and therefore classified as Level 3 in the fair value hierarchy. The fair values of our other financial instruments approximate their carrying values. Refer to Note 8 for an explanation of the fair value hierarchy structure.
We have financed certain aircraft with Enhanced Equipment Trust Certificates ("EETCs"). One of the benefits of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity ("VIE"), as defined in Topic 810, Consolidation of the Financial Accounting Standards Board ("FASB") Codification, and must be considered for consolidation in our financial statements. Our assessment of our EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust structure is to enhance the creditworthiness of our debt obligation through certain bankruptcy protection provisions and liquidity facilities, and also to lower our total borrowing cost. We concluded that we are not the primary beneficiary in these trusts because our involvement in them is limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us, and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our financial statements.
0.50% Convertible Senior Notes, Due Through 2026
On April 1, 2026, the Company paid in full its 0.50% convertible senior notes due 2026, including $325 million of principal and $1 million of interest. A portion of this payment was funded using amounts previously held in escrow pursuant to the Company's revolving credit facility agreement with Citibank. Following this repayment, the Company has no remaining obligations under these notes.
Fixed Rate Equipment Notes
On April 14, 2026, the Company entered into an agreement providing for up to $500 million in debt financing, secured by certain owned A321, A320, and A220 aircraft. As of September 30, 2026, the Company had borrowed an aggregate of $500 million under the agreement. The borrowings have maturities ranging from 2033 through 2036 and interest rates based on U.S. Treasury rates plus an applicable margin. In addition, the agreement provides for $250 million in incremental aircraft-secured financing beyond the initial $500 million commitment. During the third quarter of 2026, the Company satisfied the applicable requirements to access this additional financing, including delivery of the required advance notice. Funding is expected in the fourth quarter of 2026, subject to the completion of customary funding mechanics.
Short-term Borrowings
Citibank Line of Credit
We have a revolving credit facility with Citibank for $600 million. This facility bears interest at a rate equal to the Alternate Base Rate ("ABR") plus a margin or SOFR plus a margin. The facility has a maturity of October 21, 2029.
On October 27, 2025, we entered into an agreement with Citibank, N.A. to hold funds required to meet the specified minimum outstanding principal amount in escrow in order to maintain the facility expiration date of October 21, 2029. The escrow account was funded with the required amount of $100 million prior to December 31, 2025, satisfying the requirements under the amended facility.
On April 1, 2026, the amounts held in escrow were used to pay a portion of the 0.50% convertible senior notes due 2026.
As of and for the periods ended September 30, 2026 and December 31, 2025, we did not have a balance outstanding or any borrowings under the facility.
Morgan Stanley Line of Credit
We have a revolving line of credit with Morgan Stanley for up to approximately $200 million. This line of credit is secured by a portion of our investment securities held by Morgan Stanley and the amount available to us under this line of credit may vary accordingly. This line of credit bears interest at a floating rate based upon SOFR (or such replacement index as the bank shall determine from time to time in accordance with the terms of the agreement), plus a margin. As of and for the periods ended September 30, 2026 and December 31, 2025, we did not have a balance outstanding or any borrowings under this line of credit.