Annual report [Section 13 and 15(d), not S-K Item 405]

DEBT AND FINANCING ARRANGEMENTS

v3.25.4
DEBT AND FINANCING ARRANGEMENTS
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
DEBT AND FINANCING ARRANGEMENTS
NOTE 9. DEBT AND FINANCING ARRANGEMENTS
The carrying value of our outstanding debt obligations, as of December 31, 2025 and 2024 consists of the following (in millions):
Principal Carrying Value
Amount Maturity 2025 2024
Fixed-Rate senior notes:
3.900% senior notes
 $ —  2025 $ —  $ 1,000 
2.400% senior notes
 500  2026 500  499 
3.050% senior notes
 1,000  2027 998  997 
3.400% senior notes
 750  2029 748  748 
2.500% senior notes
 400  2029 399  398 
4.450% senior notes
 750  2030 747  746 
4.650% senior notes
 500  2030 498  — 
   4.875% senior notes
 900  2033 896  895 
   5.150% senior notes
 900  2034 894  894 
5.250% senior notes
 1,250  2035 1,240  — 
6.200% senior notes
 1,500  2038 1,487  1,486 
5.200% senior notes
 500  2040 495  495 
4.875% senior notes
 500  2040 492  492 
3.625% senior notes
 375  2042 369  369 
3.400% senior notes
 500  2046 493  492 
3.750% senior notes
 1,150  2047 1,138  1,138 
4.250% senior notes
 750  2049 744  743 
3.400% senior notes
 700  2049 689  689 
5.300% senior notes
 1,250  2050 1,232  1,232 
   5.050% senior notes
 1,100  2053 1,083  1,083 
   5.500% senior notes
 1,100  2054 1,087  1,087 
5.950% senior notes
 1,250  2055 1,232  — 
   5.600% senior notes
 600  2064 590  590 
6.050% senior notes
 1,000  2065 985  — 
Floating-rate senior notes:
Floating-rate senior notes 1,884  2049-2075 1,863  1,755 
Debentures:
7.620% debentures
 276  2030 279  279 
Pound Sterling notes:
5.500% notes
 90  2031 89  83 
5.125% notes
 614  2050 585  544 
Euro Senior Notes:
1.625% notes
 —  2025 —  731 
1.000% notes
 588  2028 587  521 
1.500% notes
 588  2032 586  521 
Finance lease obligations (see note 11) 781  2026-2118 781  455 
Facility notes, bonds & other 321  2026-2045 321  322 
Total debt $ 24,367  $ 24,127  $ 21,284 
Less: current maturities of long-term debt and finance leases (608) (1,838)
Long-term debt and finance leases $ 23,519  $ 19,446 
Commercial Paper
We are authorized to borrow up to $10.0 billion under a U.S. commercial paper program and €5.0 billion (in a variety of currencies) under a European commercial paper program. There was no commercial paper outstanding as of December 31, 2025 or 2024. The amount of commercial paper outstanding under these programs in 2026 is expected to fluctuate.
Debt Classification
We have classified certain floating-rate senior notes that are redeemable at the option of the note holder as long-term debt in our consolidated balance sheets, due to our intent and ability to refinance the debt if the put option is exercised.
Debt Repayments
On April 1, 2025, our 3.900% Senior notes with a principal balance of $1.0 billion matured and were repaid in full. On November 15, 2025, our 1.625% Euro senior notes with a principal balance of €700 million ($811 million) matured and were repaid in full.
Debt Issuances
In 2025, we issued four series of notes in the principal amounts of $500 million, $1.3 billion, $1.3 billion and $1.0 billion. These notes bear interest at 4.650%, 5.250%, 5.950% and 6.050%, respectively. Also in 2025, we issued floating rate senior notes with a principal balance of $171 million that matures on June 1, 2075.
Fixed-Rate Senior Notes
Our fixed-rate notes pay interest semi-annually and allow for redemption by us at any time by paying the greater of the principal amount or a "make-whole" amount, plus accrued interest.

Floating-Rate Senior Notes
Our outstanding floating-rate senior notes with principal amounts totaling $1.9 billion bear interest at either thirty-day, ninety-day or compounded Secured Overnight Financing Rate ("SOFR"), less a spread ranging from 4 to 35 basis points. These notes have maturities ranging from 2049 through 2075. Interest is payable monthly for notes maturing through 2053 and quarterly for notes maturing from 2064 through 2075.
The average interest rate on the outstanding floating-rate senior notes for 2025 and 2024 was 4.13% and 4.77%, respectively. These notes are callable at various times after 30 years at a stated percentage of par value, and redeemable at the option of the note holders at various times after one year at a stated percentage of par value. We have classified these floating-rate senior notes as long-term liabilities in our consolidated balance sheets, due to our intent and ability to refinance the debt if the put option is exercised.
7.620% Debentures
The $276 million debentures have a maturity of April 1, 2030. These debentures are redeemable in whole or in part at any time at our option. The redemption price is equal to the greater of the principal amount plus accrued interest, or the present value of remaining scheduled payments of principal and interest thereon discounted to the date of redemption at a benchmark treasury yield plus five basis points, plus accrued interest. Interest is payable semi-annually in April and October, and the debentures are not subject to sinking fund requirements.
Pound Sterling Notes
The Pound Sterling notes consist of two separate tranches, as follows:
•Notes with a principal amount of £66 million accrue interest at a fixed rate of 5.50% and are due in February 2031. Interest is payable semi-annually and these notes are not callable.
•Notes with a principal amount of £455 million accrue interest at a fixed rate of 5.125% and are due in February 2050. Interest is payable semi-annually. These notes are callable at our option at a redemption price equal to the greater of the principal amount plus accrued interest, or the present value of the remaining scheduled payments of principal and interest thereon discounted to the date of redemption at a benchmark U.K. government bond yield plus 15 basis points, plus accrued interest.
Euro Senior Notes
The Euro notes consist of two separate issuances, as follows:
•Notes with a principal amount of €500 million accrue interest at a fixed rate of 1.00% and are due in November 2028. Interest is payable annually. These notes are callable at our option at a redemption price equal to the greater of the principal amount, or the present value of the remaining scheduled payments of principal and interest thereon discounted to the date of redemption at a benchmark comparable German government bond yield plus 15 basis points, plus accrued interest.
•Notes with a principal amount of €500 million accrue interest at a fixed rate of 1.50% and are due in November 2032. Interest is payable annually. The notes are callable at our option at a redemption price equal to the greater of the principal amount, or the present value of the remaining scheduled payments of principal and interest thereon discounted to the date of redemption at a benchmark comparable government bond yield plus 20 basis points, plus accrued interest.
Finance Lease Obligations
We have certain property, plant and equipment subject to finance leases. For additional information on finance lease obligations, see note 11.
Facility Notes and Bonds
We have entered into agreements with certain municipalities or related entities to finance the construction of, or improvements to, facilities that support our operations in the United States. These facilities are located around airport properties in Louisville, Kentucky; Dallas, Texas; and Philadelphia, Pennsylvania. Under these arrangements, we enter into a lease or loan agreement that covers the debt service obligations on the bonds issued by these entities, as follows:
•Bonds with a principal balance of $149 million issued by the Louisville Regional Airport Authority associated with our Worldport facility in Louisville, Kentucky. The bonds are due in January 2029 and bear interest at a variable rate that is payable monthly. The average interest rates for 2025 and 2024 were 2.70% and 3.28%, respectively.
•Bonds with a principal balance of $42 million issued by the Louisville Regional Airport Authority associated with our airfreight facility in Louisville, Kentucky. The bonds are due in November 2036 and bear interest at a variable rate that is payable monthly. The average interest rates for 2025 and 2024 were 2.70% and 3.21%, respectively.
•Bonds with a principal balance of $29 million issued by the Dallas/Fort Worth International Airport Facility Improvement Corporation associated with our Dallas, Texas airport facilities. The bonds are due in May 2032 and bear interest at a variable rate that is payable quarterly. The average interest rates for 2025 and 2024 were 2.65% and 3.26%, respectively.
•Bonds with a principal balance of $100 million issued by the Delaware County, Pennsylvania Industrial Development Authority associated with our Philadelphia, Pennsylvania airport facilities. These bonds are due in September 2045 and bear interest at a variable rate that is payable monthly. The average interest rates for 2025 and 2024 were 2.62% and 3.18%, respectively.
Contractual Commitments
The following table sets forth the aggregate annual principal payments on our long-term debt (in millions):
Year
Debt Principal(1)
2026 $ 500 
2027 1,000 
2028 588 
2029 1,299 
2030 1,526 
After 2030
 18,672 
Total $ 23,585 
(1)     The above table excludes finance leases of $781 million and other debt of $1 million.
Other Arrangements
During 2025, we entered into new aircraft leases. The structure of this arrangement required a parent company guarantee of approximately $1.8 billion. For additional information, see note 11.
During 2025, we entered into a real estate transaction for the development of a facility and recognized a financing obligation included in Other Non-Current Liabilities in our consolidated balance sheets of $132 million. The financing obligation will increase as construction progresses.
Sources of Credit
Letters of Credit
As of December 31, 2025, we had outstanding letters of credit totaling approximately $1.8 billion issued in connection with our self-insurance reserves and other routine business requirements. We also issue surety bonds as an alternative to letters of credit in certain instances and, as of December 31, 2025, we had $1.8 billion of surety bonds written.
Revolving Credit Facilities
We maintain two credit agreements with a consortium of banks. The first of these agreements provides revolving credit facilities of $1.0 billion and expires on November 23, 2026. Amounts outstanding under this agreement bear interest at a periodic fixed rate equal to the term SOFR rate, plus 0.10% per annum and an applicable margin based on our then-current credit rating. The applicable margin from the credit pricing grid as of December 31, 2025 was 0.70%. Alternatively, a fluctuating rate of interest equal to the highest of (1) the rate of interest last quoted by The Wall Street Journal as the prime rate in the United States; (2) the Federal Funds effective rate plus 0.50%; or (3) the Adjusted Term SOFR Rate for a one month interest period plus 1.00%, may be used at our discretion.
The second agreement provides revolving credit facilities of $2.0 billion and expires on November 25, 2029. Amounts outstanding under this facility bear interest at a periodic fixed rate equal to the term SOFR rate plus 0.10% per annum and an applicable margin based on our then-current credit rating. The applicable margin from the credit pricing grid as of December 31, 2025 was 0.70%. Alternatively, a fluctuating rate of interest equal to the highest of (1) the rate of interest last quoted by The Wall Street Journal as the prime rate in the United States; (2) the Federal Funds effective rate plus 0.50%; and (3) the Adjusted Term SOFR Rate for a one-month interest period plus 1.00%, plus an applicable margin, may be used at our discretion.
If the credit ratings established by Standard & Poor's and Moody’s differ, the higher rating will be used, except in cases where the lower rating is two or more levels lower. In these circumstances, the rating one step below the higher rating will be used. We are also able to request advances under these facilities based on competitive bids for the applicable interest rate. There were no amounts outstanding under our revolving credit facilities as of December 31, 2025.
Debt Covenants
Our existing debt instruments and credit facilities subject us to certain financial covenants. These covenants limit the amount of secured indebtedness that we may incur, and limit the amount of attributable debt in sale-leaseback transactions. As of December 31, 2025, and for all prior periods presented, we have satisfied these financial covenants.
Fair Value of Debt
Based on the borrowing rates currently available to us for long-term debt with similar terms and maturities, the fair value of long-term debt, including current maturities and excluding leases, was approximately $22.8 and $19.8 billion as of December 31, 2025 and 2024. As of December 31, 2024, the fair value of long-term and short-term debt, inclusive of finance leases, was $20.3 billion. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of all of our debt instruments.