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Revenue Recognition
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
As of December 31, 2023 and 2022, the Company’s air traffic liability balance was $259 million and $328 million, respectively, which includes amounts classified as other long-term liabilities. During the year ended December 31, 2023, substantially all of the air traffic liability as of December 31, 2022 was recognized as passenger revenue within the Company’s consolidated statements of operations. Of the air traffic liability balances as of both December 31, 2023 and 2022, $60 million was related to unearned membership fees.
During the years ended December 31, 2023, 2022 and 2021, the Company recognized $44 million, $82 million and $58 million of revenue related to expected and actual expiration of customer rights to book future travel, respectively, in passenger revenues within the Company’s consolidated statements of operations.
Operating revenues are comprised of passenger revenues, which includes fare and non-fare passenger revenues, and other revenues. Disaggregated operating revenues are as follows (in millions):
Year Ended December 31,
202320222021
Passenger revenues:
Fare$1,277 $1,382 $806 
Non-fare passenger revenues:
Service fees943 817 521 
Baggage880 741 457 
Seat selection281 251 170 
Other128 57 46 
Total non-fare passenger revenue2,232 1,866 1,194 
Total passenger revenues3,509 3,248 2,000 
Other revenues80 78 60 
Total operating revenues$3,589 $3,326 $2,060 
The Company is managed as a single business unit that provides air transportation for passengers. Operating revenues by principal geographic region, as defined by the U.S. Department of Transportation (the “DOT”), are as follows (in millions):
Year Ended December 31,
202320222021
Domestic$3,315 $3,051 $1,950 
Latin America274 275 110 
Total operating revenues$3,589 $3,326 $2,060 
The Company attributes operating revenues by geographic region based upon the origin and destination of each passenger flight segment. The Company’s tangible assets consist primarily of flight equipment, which are mobile across geographic markets. Accordingly, assets are not allocated to specific geographic regions.