Alaska Air Group (NYSE: ALK) raised $1 billion through two separate financing transactions on May 12, 2026, according to a company statement.

Alaska Airlines issued $500 million in senior notes due 2031 with a 6.500% interest rate. The notes will mature on June 1, 2031, with interest paid semiannually on June 1 and December 1 each year, beginning December 1, 2026. Alaska Air Group provides a full guarantee on the notes.

The notes rank equally with Alaska's existing and future senior debt but are subordinated to secured debt and obligations of other subsidiaries. Alaska can redeem the notes before December 1, 2030, at specified redemption prices. If Alaska Air Group undergoes certain control changes, the company must offer to repurchase the notes at 101% of principal plus accrued interest.

Separately, AS Mileage Plan IP Ltd., a subsidiary of Alaska Air Group, secured a $500 million incremental term loan facility. The facility amended an existing term loan agreement from October 15, 2024. The new loans bear interest at Term SOFR plus a 2.00% margin.

The incremental facility is secured by collateral from Alaska's Atmos Rewards loyalty program, the same collateral securing the subsidiary's existing $1.25 billion in loyalty notes and $750 million in existing term loans. The new facility ranks equally with these existing obligations.

The incremental term loan facility joins existing secured debt totaling $2 billion that is backed by the airline's customer loyalty program assets.