Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2019

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



	Three Months Ended March 31,
	2019		2018
Passenger revenue:
Passenger travel	$	8,772	$	8,630
Loyalty revenue - travel ⁽¹⁾	886		850
Total passenger revenue	9,658		9,480
Cargo	218		227
Other:
Loyalty revenue - marketing services	578		570
Other revenue	130		124
Total other revenue	708		694
Total operating revenues	$	10,584	$	10,401


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

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



	Three Months Ended March 31,
	2019		2018
Domestic	$	7,226	$	6,963
Latin America	1,371		1,445
Atlantic	673		669
Pacific	388		403
Total passenger revenue	$	9,658	$	9,480

Schedule of Contract Liabilities



	March 31, 2019		December 31, 2018
	(In millions)
Loyalty program liability	$	8,568	$	8,539
Air traffic liability	5,930		4,339
Total	$	14,498	$	12,878

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 credit 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, 2018	$	8,539
Deferral of revenue	963
Recognition of revenue ⁽¹⁾	(934		)
Balance at March 31, 2019 ⁽²⁾	$	8,568


⁽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 March 31, 2019, our current loyalty program liability was $3.4 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]

Disaggregation of Revenue

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



	Three Months Ended March 31,
	2019		2018
Passenger revenue:
Passenger travel	$	8,772	$	8,630
Loyalty revenue - travel ⁽¹⁾	886		850
Total passenger revenue	9,658		9,480
Cargo	218		227
Other:
Loyalty revenue - marketing services	578		570
Other revenue	127		121
Total other revenue	705		691
Total operating revenues	$	10,581	$	10,398


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

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



	Three Months Ended March 31,
	2019		2018
Domestic	$	7,226	$	6,963
Latin America	1,371		1,445
Atlantic	673		669
Pacific	388		403
Total passenger revenue	$	9,658	$	9,480

Schedule of Contract Liabilities



	March 31, 2019		December 31, 2018
	(In millions)
Loyalty program liability	$	8,568	$	8,539
Air traffic liability	5,930		4,339
Total	$	14,498	$	12,878



Balance at December 31, 2018	$	8,539
Deferral of revenue	963
Recognition of revenue ⁽¹⁾	(934		)
Balance at March 31, 2019 ⁽²⁾	$	8,568

⁽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 March 31, 2019, American's current loyalty program liability was $3.4 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.