Exhibit 99.1
alaskaairgrouplogoa922.jpg

January 28, 2020
Media contact:Investor/analyst contact:
Media RelationsEmily Halverson
(206) 304-0008Director, Investor Relations
(206) 392-5908

Alaska Air Group Reports Fourth Quarter 2019 and Full-Year Results; Raises Dividend 7%

Dividend Increase:
Announced today a 7% increase in the quarterly dividend, from $0.35 per share to $0.375 per share. This is the seventh time the company has raised the dividend since initiating the quarterly dividend in July 2013, with a cumulative increase of 275% since that time. The dividend will be paid on March 5, 2020, to all shareholders of record as of February 18, 2020. Dividends are financed from operating cash flow and cash on hand.

Financial Highlights:
Reported net income for the fourth quarter and full year 2019 under Generally Accepted Accounting Principles (GAAP) of $181 million, or $1.46 per diluted share, and $769 million, or $6.19 per diluted share. These results compare to fourth quarter 2018 net income of $23 million, or $0.19 per diluted share, and full year 2018 net income of $437 million, or $3.52 per diluted share.
Reported adjusted net income, excluding merger-related costs and mark-to-market fuel hedging adjustments for the fourth quarter and full year 2019 of $181 million, or $1.46 per diluted share, and $798 million, or $6.42 per diluted share. These results compare to fourth quarter 2018 adjusted net income of $93 million, or $0.75 per diluted share, and full year 2018 adjusted net income of $554 million, or $4.46 per diluted share. This quarter's adjusted results compare to the First Call analyst consensus estimate of $1.41 per share.
Paid a $0.35 per share quarterly cash dividend in the fourth quarter, bringing total dividends paid in 2019 to $173 million.
Repurchased a total of 1,192,820 shares of common stock for approximately $75 million in 2019.
Generated approximately $1.7 billion of operating cash flow, and used approximately $696 million for capital expenditures, resulting in approximately $1 billion of free cash flow in 2019, representing free cash flow conversion of 133%.
Grew passenger revenues by 8% compared to the fourth quarter of 2018, and by 6% compared to full-year 2018.
Generated full-year adjusted pretax margin of 12% in 2019, 3.1 points higher than the 8.9% in 2018.
Held $1.5 billion in unrestricted cash and marketable securities as of December 31, 2019.
Achieved the goal of 75% repayment on the $2 billion debt borrowed to fund the acquisition of Virgin America, driving our debt-to-capitalization ratio to 41% as of December 31, 2019, from 47% as of December 31, 2018 and 51% as of December 31, 2016.
Reduced net adjusted debt to EBITDAR to 0.9x as of December 31, 2019 from 1.7x as of December 31, 2018.
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2019 Accomplishments and Highlights:

Recognition and Awards
Ranked "Highest in Customer Satisfaction Among Traditional Carriers" in 2019 by J.D. Power for the 12th year in a row.
Named "Best U.S. Airline" by Condé Nast Traveler in their 2019 Readers Choice Awards for the second consecutive year, a continuation of the ten consecutive years that Virgin America received the recognition.
Mileage Plan™ ranked first in U.S. News & World Report's list of Best Travel Rewards Programs for the fifth time.
Ranked as top U.S. airline in Newsweek's 2020 Best Customer Service awards.
Named "Best Mid-Size Airline" by TripAdvisor in their 2019 Travelers Choice awards.
Earned top spot for customer satisfaction on the American Customer Satisfaction Index Travel Report for 2018-2019. 
Named "Best Airline" by Kayak in their 2019 Travel Hacker Awards.
Ranked the best U.S. airline in Money Magazine for the second year in a row.
Rated as one of only two U.S. airlines in the Top 20 safest airlines in the world for 2019 by AirlineRatings.com.
Ranked as the top U.S. airline in the Dow Jones Sustainability Index (DJSI) for the third consecutive year.

Our People
Ranked among Forbes' 2019 global list for "World's Best Employers" for the fifth year in a row.
Completed Flight Path, our leader-led program aimed at informing and engaging our employees, bringing over 95% of Air Group employees together to discuss our culture and future.
Awarded $163 million in incentive pay for 2019, an 11% increase over 2018.
Alaska technicians, represented by the Aircraft Mechanics Fraternal Association, ratified an integrated seniority list and a transition agreement, including a two-year contract extension, in July 2019. This completes a major integration milestone, in that all of our workgroups are under joint agreements, less than three years from our acquisition of Virgin America.
Alaska's clerical, office, and passenger service, and Alaska's ramp and stores employees, both represented by the International Association of Machinists, each ratified new five-year agreements in August 2019.

Our Guests and Product
Launched commercial service from Paine Field in Everett, Washington, to 10 West Coast destinations.
Finished painting the Alaska Airlines livery on all Airbus aircraft.
Completed cabin interior renovations on the 42nd Airbus aircraft, or approximately 60% of the Airbus fleet.
Installed high-speed satellite Wi-Fi on the 104th mainline aircraft, or approximately 45% of the mainline fleet.
Opened a new 15,000+ square foot flagship lounge in the North Satellite at Sea-Tac International Airport and announced plans to build a new lounge in Terminal 2 at San Francisco International Airport.
Added EL AL Israel Airlines as a new global Mileage Plan partner.
Added four Boeing 737-900ER aircraft and two Airbus A321neo aircraft in 2019.
Added four Embraer 175 (E175) aircraft to the Regional operating fleet in 2019.

Our Communities
Launched LIFT, Alaska's newly renamed social and environmental impact program, complete with a week of employee volunteer events in eight cities across our network.
Donated over $15 million and contributed more than 41,000 volunteer hours to support nonprofits in our local communities, focusing on youth and education, medical (research/transportation) and community outreach.
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SEATTLE — Alaska Air Group Inc. (NYSE: ALK) today reported fourth quarter 2019 GAAP net income of $181 million, or $1.46 per diluted share, compared to $23 million, or $0.19 per diluted share in 2018. Excluding the impact of merger-related costs and mark-to-market fuel hedge adjustments, the company reported fourth quarter adjusted net income of $181 million, or $1.46 per diluted share, compared to adjusted net income of $93 million, or $0.75 per diluted share in the fourth quarter of 2018.
The company reported full-year 2019 GAAP net income of $769 million, compared to $437 million in the prior year. Excluding the impact of merger-related costs and mark-to-market fuel hedge adjustments, the company reported adjusted net income of $798 million, or $6.42 per diluted share for 2019, compared to adjusted net income of $554 million, or $4.46 per diluted share in 2018.
"When we announced our intention to purchase Virgin America in the spring of 2016, we launched a body of work that was designed to make Alaska the 'Go To' airline for people living up and down the West Coast," said Brad Tilden, Alaska's CEO. "2019 was a fantastic year as we completed the majority of that work and began to see significant returns from our investment. We're grateful to our people for pulling together to produce this strong financial performance, and proud that they are sharing in this financial success through our incentive pay program."
The following tables reconcile the company's adjusted net income and earnings per diluted share (EPS) during the full year and fourth quarters of 2019 and 2018 to amounts as reported in accordance with GAAP:
  Three Months Ended December 31,
  2019 2018
(in millions, except per share amounts)Dollars Diluted EPS Dollars Diluted EPS
Reported GAAP net income and diluted EPS$181   $1.46   $23   $0.19  
Mark-to-market fuel hedge adjustments(5) (0.04)  52   0.42  
Special items - merger-related costs 0.04  20  0.16  
Special items - other (a)
—  —  20  0.16  
Income tax effect on special items and fuel hedge adjustments—  —  (22) (0.18) 
Non-GAAP adjusted net income and diluted EPS$181  $1.46   $93   $0.75  

 Twelve Months Ended December 31,
 2019 2018
(in millions, except per share amounts)Dollars Diluted EPS Dollars Diluted EPS
Reported GAAP net income and diluted EPS$769   $6.19   $437   $3.52  
Mark-to-market fuel hedge adjustments(6) (0.05) 22  0.18  
Special items - merger-related costs44  0.35  87  0.70  
Special items - other (a)
—  —  45  0.36  
Income tax effect on special items and fuel hedge adjustments(9) (0.07) (37) (0.30) 
Non-GAAP adjusted net income and diluted EPS$798  $6.42   $554  $4.46  
(a)Special items - other includes special charges associated with the employee tax reform bonus paid in Q1 2018, and a $20 million contract termination fee incurred in Q4 2018.

Statistical data, as well as a reconciliation of other reported non-GAAP financial measures, can be found in the accompanying tables. A glossary of financial terms can be found on the last page of this release.
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A conference call regarding the fourth quarter and full year results will be simulcast online at 1:30 p.m. Pacific time on January 28, 2020. It can be accessed through the company's website at alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.

References in this news release to “Air Group,” “company,” “we,” “us” and “our” refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified. Alaska Airlines, Inc., Horizon Air Industries, Inc., and Virgin America Inc. (through July 20, 2018, at which point it was legally merged into Alaska Airlines, Inc.) are referred to as “Alaska,” “Horizon,” and "Virgin America" respectively, and together as our “airlines.”

This news release may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by any forward-looking statements. For a comprehensive discussion of potential risk factors, see Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2018, as well as in other documents filed by the Company with the SEC after the date thereof. Some of these risks include general economic conditions, increases in operating costs including fuel, competition, labor costs and relations, our indebtedness, inability to meet cost reduction goals, seasonal fluctuations in our financial results, an aircraft accident, changes in laws and regulations and risks inherent in the achievement of anticipated synergies and the timing thereof in connection with the acquisition of Virgin America. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results. Over time, our actual results, performance or achievements will likely differ from the anticipated results, performance, or achievements that are expressed or implied by our forward-looking statements, and such differences might be significant and materially adverse.

Alaska Airlines and its regional partners fly 47 million guests a year to 115 destinations with an average of 1,300 daily flights across the United States and to Mexico, Canada, and Costa Rica. With Alaska and Alaska Global Partners, guests can earn and redeem miles on flights to more than 800 destinations worldwide. Alaska Airlines ranked “Highest in Customer Satisfaction Among Traditional Carriers in North America” in the J.D. Power North America Satisfaction Study for 12 consecutive years from 2008 to 2019. Learn more about Alaska’s award-winning service at newsroom.alaskaair.com and blog.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Alaska Air Group, Inc.  
  Three Months Ended December 31,Twelve Months Ended December 31,
(in millions, except per share amounts)2019 2018Change2019 2018Change
Operating Revenues:  
Passenger revenue2,057  1,907  %8,095  7,631  %
Mileage Plan other revenue119     105  13 %465  434  %
Cargo and other52     52  — %221  199  11 %
Total Operating Revenues2,228     2,064  %8,781  8,264  %
     
Operating Expenses:   
Wages and benefits638     561  14 %2,370  2,190  %
Variable incentive pay38     43  (12)%163  147  11 %
Aircraft fuel, including hedging gains and losses470     539  (13)%1,878  1,936  (3)%
Aircraft maintenance96     115  (17)%437  435  — %
Aircraft rent84     82  %331  315  %
Landing fees and other rentals143     128  12 %531  499  %
Contracted services75     79  (5)%289  306  (6)%
Selling expenses77     81  (5)%313  326  (4)%
Depreciation and amortization106     108  (2)%423  398  %
Food and beverage service55     53  %214  211  %
Third-party regional carrier expense41  40  %166  154  %
Other148     149  (1)%559  572  (2)%
Special items - merger-related costs 20  (75)%44  87  (49)%
Special items - other—  20  NM  —  45  NM  
Total Operating Expenses1,976     2,018  (2)%7,718  7,621  %
Operating Income252     46  NM  1,063  643  65 %
     
Non-operating Income (Expense):   
Interest income11      22 %42  38  11 %
Interest expense(18)    (20) (10)%(78) (91) (14)%
Interest capitalized     — %15  18  (17)%
Other - net(6)    (3) NM  (26) (23) 13 %
Total Non-operating Expense(9)    (10) (10)%(47) (58) (19)%
Income Before Income Tax243     36  1,016  585  
Income tax expense62     13  247  148  
Net Income$181     $23  $769  $437  
   
Basic Earnings Per Share:$1.47     $0.19  $6.24  $3.55  
Diluted Earnings Per Share:$1.46     $0.19  $6.19  $3.52  
Shares Used for Computation: 
Basic123.129   123.271  123.279  123.230  
Diluted124.245   124.095  124.289  123.975  
Cash dividend declared per share$0.35  $0.32  $1.40  $1.28  


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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) 
Alaska Air Group, Inc. 
  
(in millions)December 31, 2019 December 31, 2018
Cash and marketable securities$1,521  $1,236  
Other current assets516     551  
Current assets2,037  1,787  
Property and equipment-net6,902  6,781  
Operating lease asset1,711  —  
Goodwill1,943  1,943  
Intangible assets-net122  127  
Other assets278  274  
Total assets$12,993  $10,912  
           
Air traffic liability900  788  
Current portion of long-term debt235  486  
Current portion of operating lease liabilities269  —  
Other current liabilities1,797  1,668  
Current liabilities$3,201  $2,942  
Long-term debt 1,264  1,617  
Long-term operating lease liabilities1,439  —  
Other liabilities and credits2,758  2,602  
Shareholders' equity4,331  3,751  
Total liabilities and shareholders' equity$12,993  $10,912  
     
Debt-to-capitalization ratio, including operating leases(a)
41%   47%
Number of common shares outstanding123.000  123.194  
(a)Following the adoption of the new lease accounting standard on January 1, 2019, the ratio is calculated using the total capitalized Operating lease liability, whereas prior year periods were calculated utilizing the present value of aircraft lease payments. This change had no impact to the ratio.



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OPERATING STATISTICS SUMMARY (unaudited)
Alaska Air Group, Inc.
Three Months Ended December 31,Twelve Months Ended December 31,
2019 2018 Change2019 2018 Change
Consolidated Operating Statistics:(a)
Revenue passengers (000)11,715     11,117   5.4%  46,733     45,802   2.0%  
RPMs (000,000) "traffic"13,928     13,401   3.9%  56,040     54,673   2.5%  
ASMs (000,000) "capacity"16,648     16,079   3.5%  66,654     65,335   2.0%  
Load factor83.7%  83.3%  0.4 pts  84.1%  83.7%  0.4 pts  
Yield14.77¢  14.24¢  3.7%  14.45¢  13.96¢  3.5%  
RASM13.38¢  12.84¢  4.2%  13.17¢  12.65¢  4.2%  
CASMex(b)
9.01¢  8.95¢  0.7%  8.70¢  8.50¢  2.3%  
Economic fuel cost per gallon(b)
$2.21  $2.35  (6.0)% $2.19  $2.28  (3.9)% 
Fuel gallons (000,000)216  208  3.8%  862  839  2.7%  
ASM's per gallon77.2  77.5  (0.4)% 77.3  77.9  (0.8)% 
Average full-time equivalent employees (FTEs)22,506     21,838   3.1%  22,126     21,641   2.2%  
Employee productivity (PAX/FTEs/months)173.5  169.7  2.2%  176.0  176.4  (0.2)% 
Mainline Operating Statistics:
Revenue passengers (000)8,805     8,496   3.6%  35,530     35,603   (0.2)% 
RPMs (000,000) "traffic"12,496  12,104   3.2%  50,413     49,781   1.3%  
ASMs (000,000) "capacity"14,895     14,457   3.0%  59,711     59,187   0.9%  
Load factor83.9%  83.7%  0.2 pts  84.4%  84.1%  0.3 pts  
Yield13.69¢  13.18¢  3.9%  13.39¢  13.01¢  2.9%  
RASM12.53¢  12.04¢  4.1%  12.36¢  11.93¢  3.6%  
CASMex(b)
8.27¢  8.20¢  0.9%  8.00¢  7.73¢  3.5%  
Economic fuel cost per gallon(b)
$2.19  $2.34  (6.4)% $2.17  $2.27  (4.4)% 
Fuel gallons (000,000)182  177  2.8%  731  727  0.6%  
ASM's per gallon81.8  81.7  0.1%  81.7  81.4  0.4%  
Average number of FTEs16,771     16,445   2.0%  16,642     16,353   1.8%  
Aircraft utilization10.8     10.7   0.9%  10.9     11.2   (2.7)% 
Average aircraft stage length1,303     1,313   (0.8)% 1,299     1,298   0.1%  
Operating fleet237  233  4 a/c  237  233  4 a/c  
Regional Operating Statistics:(c)
Revenue passengers (000)2,910  2,621  11.0%  11,203  10,199  9.8%  
RPMs (000,000) "traffic"1,432  1,298   10.3%  5,627  4,892   15.0%  
ASMs (000,000) "capacity"1,753  1,623  8.0%  6,943  6,148  12.9%  
Load factor81.7%  80.0%  1.7 pts  81.0%  79.6%  1.4 pts  
Yield24.22¢  24.13¢  0.4%  23.90¢  23.66¢  1.0%  
Operating Fleet95  97  (2) a/c 95  97  (2) a/c 
(a)Except for FTEs, data includes information related to third-party regional capacity purchase flying arrangements.
(b)See a reconciliation of this non-GAAP measure and Note A for a discussion of potential importance of this measure to investors in the accompanying pages.
(c)Data presented includes information related to flights operated by Horizon and third-party carriers.


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OPERATING SEGMENTS (unaudited)
Alaska Air Group, Inc.
Three Months Ended December 31, 2019
(in millions)MainlineRegionalHorizonConsolidating & Other
Air Group Adjusted(a)
Special Items(b)
Consolidated
Operating revenues   
Passenger revenue1,711  346  —  —  2,057  —  2,057  
CPA revenue—  —  110  (110) —  —  —  
Mileage Plan other revenue107  12  —  —  119  —  119  
Cargo and other49   —   52  —  52  
Total Operating Revenues1,867  359  110  (108) 2,228  —  2,228  
Operating Expenses
Non-fuel operating expenses1,233  280  99  (111) 1,501   1,506  
Fuel expense398  77  —  —  475  (5) 470  
Total Operating Expenses1,631  357  99  (111) 1,976  —  1,976  
Non-operating income (expense)
Interest income16  —  —  (5) 11  —  11  
Interest expense(18) (6)  (18) —  (18) 
Interest capitalized —  —  —   —   
Other(6) —  —  —  (6) —  (6) 
Total Non-operating Income (Expense)(4) —  (6)  (9) —  (9) 
Income (loss) Before Income Tax$232  $ $ $ $243  $—  $243  
Three Months Ended December 31, 2018
(in millions)MainlineRegionalHorizonConsolidating & Other
Air Group Adjusted(a)
Special Items(b)
Consolidated
Operating revenues   
Passenger revenue1,595  312  —  —  1,907  —  1,907  
CPA revenues—  —  133  (133) —  —  —  
Mileage Plan other revenue96   —  —  105  —  105  
Cargo and other50   —  —  52  —  52  
Total Operating Revenues1,741  323  133  (133) 2,064  —  2,064  
Operating Expenses
Non-fuel operating expenses 1,185  269  120  (135) 1,439  40  1,479  
Fuel expense415  72  —  —  487  52  539  
Total Operating Expenses1,600  341  120  (135) 1,926  92  2,018  
Non-operating income (expense)
Interest income14  —  —  (5)  —   
Interest expense(18) —  (6)  (20) —  (20) 
Interest capitalized —  —  —   —   
Other(3) —  —  —  (3) —  (3) 
Total Non-operating Income (Expense)(3) —  (6) (1) (10) —  (10) 
Income (loss) Before Income Tax$138  $(18) $ $ $128  $(92) $36  
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OPERATING SEGMENTS (unaudited)
Alaska Air Group, Inc.
Twelve Months Ended December 31, 2019
(in millions)MainlineRegionalHorizonConsolidating & Other
Air Group Adjusted(a)
Special Items(b)
Consolidated
Operating revenues   
Passenger revenue6,750  1,345  —  —  8,095  —  8,095  
CPA revenue—  —  450  (450) —  —  —  
Mileage Plan other revenue419  46  —  —  465  —  465  
Cargo and other212     221  —  221  
Total Operating Revenues7,381  1,394  451  (445) 8,781  —  8,781  
Operating Expenses
Non-fuel operating expenses4,778  1,097  385  (464) 5,796  44  5,840  
Fuel expense1,589  295  —  —  1,884  (6) 1,878  
Total Operating Expenses6,367  1,392  385  (464) 7,680  38  7,718  
Non-operating income (expense)
Interest income66  —  —  (24) 42  —  42  
Interest expense(76) —  (28) 26  (78) —  (78) 
Interest capitalized15  —  —  —  15  —  15  
Other(26) —  —  —  (26) —  (26) 
Total Non-operating Income (Expense)(21) —  (28)  (47) —  (47) 
Income (loss) Before Income Tax$993  $ $38  $21  $1,054  $(38) $1,016  
Twelve Months Ended December 31, 2018
(in millions)MainlineRegionalHorizonConsolidating & Other
Air Group Adjusted(a)
Special Items(b)
Consolidated
Operating revenues   
Passenger revenue6,474  1,157  —  —  7,631  —  7,631  
CPA revenue—  —  508  (508) —  —  —  
Mileage Plan other revenue397  37  —  —  434  —  434  
Cargo and other192    —  199  —  199  
Total Operating Revenues7,063  1,197  512  (508) 8,264  —  8,264  
Operating Expenses
Non-fuel operating expenses4,577  1,024  465  (513) 5,553  132  5,685  
Fuel expense1,652  262  —  —  1,914  22  1,936  
Total Operating Expenses6,229  1,286  465  (513) 7,467  154  7,621  
Non-operating income (expense)
Interest income53  —  —  (15) 38  —  38  
Interest expense(82) —  (22) 13  (91) —  (91) 
Interest capitalized16  —   —  18  —  18  
Other(12) (11) —  —  (23) —  (23) 
Total Non-operating Income (Expense)(25) (11) (20) (2) (58) —  (58) 
Income (loss) Before Income Tax$809  $(100) $27  $ $739  $(154) $585  
(a)The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocation and does not include certain charges. See Note A in the accompanying pages for further information.
(b)Includes merger-related costs, mark-to-market fuel-hedge accounting charges, special charges associated with the employee tax reform bonus paid in Q1 2018, and a $20 million contract termination fee incurred in Q4 2018.
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GAAP TO NON-GAAP RECONCILIATIONS (unaudited)
Alaska Air Group, Inc.  
CASM Excluding Fuel and Special Items Reconciliation (unaudited)
 Three Months Ended December 31,Twelve Months Ended December 31,
(in cents)2019201820192018
Consolidated:
Total operating expenses per ASM (CASM)11.86 ¢12.55 ¢11.58 ¢11.66 ¢
Less the following components:      
Aircraft fuel, including hedging gains and losses2.82  3.35  2.82  2.96  
Special items - merger-related costs0.03  0.13  0.06  0.13  
Special items - other—  0.12  —  0.07  
CASM, excluding fuel and special items9.01 ¢8.95 ¢8.70 ¢8.50 ¢
Mainline:
Total operating expenses per ASM (CASM)10.95 ¢11.70 ¢10.73 ¢10.78 ¢
Less the following components:      
Aircraft fuel, including hedging gains and losses2.64  3.23  2.65  2.83  
Special items - merger-related costs0.04  0.14  0.08  0.14  
Special items - other—  0.13  —  0.08  
CASM, excluding fuel and special items8.27 ¢8.20 ¢8.00 ¢7.73 ¢
Fuel Reconciliations (unaudited)
Three Months Ended December 31,
2019 2018
(in millions, except for per gallon amounts)Dollars Cost/Gal Dollars Cost/Gal
Raw or "into-plane" fuel cost$471  $2.19   $488  $2.35  
Losses (gains) on settled hedges 0.02   (1) —  
Consolidated economic fuel expense$475  $2.21   $487  $2.35  
Mark-to-market fuel hedge adjustments(5) (0.03)  52  0.25  
GAAP fuel expense$470  $2.18   $539  $2.60  
Fuel gallons216    208   
        
Twelve Months Ended December 31,
2019 2018
(in millions, except for per gallon amounts)Dollars Cost/Gal Dollars Cost/Gal
Raw or "into-plane" fuel cost$1,868  $2.17   $1,938  $2.31  
Losses (gains) on settled hedges16  0.02   (24) (0.03) 
Consolidated economic fuel expense$1,884  $2.19   $1,914  $2.28  
Mark-to-market fuel hedge adjustments(6) (0.01)  22  0.03