Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

The following are the significant categories comprising our reported operating revenues (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Passenger revenue:
Passenger travel	$	9,877	$	9,600	$	18,507	$	17,795
Loyalty revenue - travel ⁽¹⁾	797		753		1,647		1,555
Total passenger revenue	10,674		10,353		20,154		19,350
Cargo	261		219		488		410
Other:
Loyalty revenue - marketing services	582		533		1,152		1,047
Other revenue	126		122		250		240
Total other revenue	708		655		1,402		1,287
Total operating revenues	$	11,643	$	11,227	$	22,044	$	21,047


⁽¹⁾	Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions for air travel awards from mileage credits earned through travel and mileage credits sold to co-branded card and other partners. See discussion of Loyalty Revenue below.

The following is our total passenger revenue by geographic region (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Domestic	$	7,685	$	7,578	$	14,648	$	14,359
Latin America	1,284		1,209		2,729		2,440
Atlantic	1,298		1,182		1,967		1,806
Pacific	407		384		810		745
Total passenger revenue	$	10,674	$	10,353	$	20,154	$	19,350

Schedule of Contract Liabilities



	June 30, 2018		December 31, 2017
	(In millions)
Loyalty program liability	$	8,675	$	8,822
Air traffic liability	5,512		4,042
Total	$	14,187	$	12,864

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):



Balance at December 31, 2017	$	8,822
Deferral of revenue	1,586
Recognition of revenue ⁽¹⁾	(1,733		)
Balance at June 30, 2018 ⁽²⁾	$	8,675


⁽¹⁾	Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period as well as miles that were issued during the period.

⁽²⁾

Mileage credits can be redeemed at any time and do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. As of June 30, 2018, our current loyalty program liability was $3.2 billion and represents our current estimate of revenue expected to be recognized in the next twelve months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

American Airlines, Inc. [Member]

Entity Information [Line Items]

Schedule of Passenger Revenue

The following are the significant categories comprising American's reported operating revenues (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Passenger revenue:
Passenger travel	$	9,877	$	9,600	$	18,507	$	17,795
Loyalty revenue - travel ⁽¹⁾	797		753		1,647		1,555
Total passenger revenue	10,674		10,353		20,154		19,350
Cargo	261		219		488		410
Other:
Loyalty revenue - marketing services	582		533		1,152		1,047
Other revenue	123		119		244		233
Total other revenue	705		652		1,396		1,280
Total operating revenues	$	11,640	$	11,224	$	22,038	$	21,040


⁽¹⁾	Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions for air travel awards from mileage credits earned through travel and mileage credits sold to co-branded card and other partners. See discussion of Loyalty Revenue below.

The following is American's total passenger revenue by geographic region (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Domestic	$	7,685	$	7,578	$	14,648	$	14,359
Latin America	1,284		1,209		2,729		2,440
Atlantic	1,298		1,182		1,967		1,806
Pacific	407		384		810		745
Total passenger revenue	$	10,674	$	10,353	$	20,154	$	19,350

Schedule of Contract Liabilities



	June 30, 2018		December 31, 2017
	(In millions)
Loyalty program liability	$	8,675	$	8,822
Air traffic liability	5,512		4,042
Total	$	14,187	$	12,864



Balance at December 31, 2017	$	8,822
Deferral of revenue	1,586
Recognition of revenue ⁽¹⁾	(1,733		)
Balance at June 30, 2018 ⁽²⁾	$	8,675


⁽¹⁾	Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period as well as miles that were issued during the period.

⁽²⁾

Mileage credits can be redeemed at any time and do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. As of June 30, 2018, American's current loyalty program liability was $3.2 billion and represents American's current estimate of revenue expected to be recognized in the next twelve months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.