Revenue Recognition

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

As of December 31, 2024 and 2023, the Company’s air traffic liability balance was $303 million and $259 million, respectively, which includes amounts classified as other long-term liabilities on the Company’s consolidated balance sheets. During the year ended December 31, 2024, substantially all of the air traffic liability as of December 31, 2023 was recognized as passenger revenue within the Company’s consolidated statements of operations. Of the air traffic liability balances as of December 31, 2024 and 2023, $56 million and $60 million, respectively, was related to unearned membership fees.

During the years ended December 31, 2024, 2023 and 2022, the Company recognized $37 million, $44 million and $82 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,
	2024		2023		2022
Passenger revenues:
Fare	$	1,435	$	1,277	$	1,382
Non-fare passenger revenues:
Service fees	1,005		943		817
Baggage	862		880		741
Seat selection	264		281		251
Other	117		128		57
Total non-fare passenger revenue	2,248		2,232		1,866
Total passenger revenues	3,683		3,509		3,248
Other revenues	92		80		78
Total operating revenues	$	3,775	$	3,589	$	3,326

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,
	2024		2023		2022
Domestic	$	3,565	$	3,315	$	3,051
Latin America	210		274		275
Total operating revenues	$	3,775	$	3,589	$	3,326

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.