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Revenue Recognition (Tables)
9 Months Ended
Sep. 30, 2020
Entity Information [Line Items]  
Disaggregation of Revenue
The following are the significant categories comprising our reported operating revenues (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Passenger revenue:
Passenger travel$2,407 $10,226 $10,491 $29,215 
Loyalty revenue - travel (1)
133 769 837 2,448 
Total passenger revenue2,540 10,995 11,328 31,663 
Cargo207 208 484 647 
Other:
Loyalty revenue - marketing services389 570 1,317 1,742 
Other revenue37 138 180 403 
Total other revenue426 708 1,497 2,145 
Total operating revenues$3,173 $11,911 $13,309 $34,455 
(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.
The following is our total passenger revenue by geographic region (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Domestic$2,296 $7,814 $9,102 $23,048 
Latin America172 1,218 1,386 3,829 
Atlantic
56 1,596 621 3,677 
Pacific16 367 219 1,109 
Total passenger revenue$2,540 $10,995 $11,328 $31,663 
Schedule of Contract Liabilities
September 30, 2020December 31, 2019
(In millions)
Loyalty program liability$9,094 $8,615 
Air traffic liability4,903 4,808 
Total$13,997 $13,423 
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, 2019$8,615 
Deferral of revenue1,456 
Recognition of revenue (1)
(977)
Balance at September 30, 2020 (2)
$9,094 
(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 generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. In response to COVID-19, we suspended the expiration of mileage credits through December 31, 2020. As of September 30, 2020, our current loyalty program liability was $2.1 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter. Given the inherent uncertainty of the current operating environment due to COVID-19, we will continue to monitor redemption patterns and may adjust our estimates in the future.
American Airlines, Inc.  
Entity Information [Line Items]  
Disaggregation of Revenue
The following are the significant categories comprising American's reported operating revenues (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Passenger revenue:
Passenger travel$2,407 $10,226 $10,491 $29,215 
Loyalty revenue - travel (1)
133 769 837 2,448 
Total passenger revenue2,540 10,995 11,328 31,663 
Cargo207 208 484 647 
Other:
Loyalty revenue - marketing services389 570 1,317 1,742 
Other revenue36 137 179 397 
Total other revenue425 707 1,496 2,139 
Total operating revenues$3,172 $11,910 $13,308 $34,449 
(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.
The following is American's total passenger revenue by geographic region (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Domestic$2,296 $7,814 $9,102 $23,048 
Latin America172 1,218 1,386 3,829 
Atlantic
56 1,596 621 3,677 
Pacific16 367 219 1,109 
Total passenger revenue$2,540 $10,995 $11,328 $31,663 
Schedule of Contract Liabilities
September 30, 2020December 31, 2019
(In millions)
Loyalty program liability$9,094 $8,615 
Air traffic liability4,903 4,808 
Total$13,997 $13,423 
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, 2019$8,615 
Deferral of revenue1,456 
Recognition of revenue (1)
(977)
Balance at September 30, 2020 (2)
$9,094 
(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 generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. In response to COVID-19, American suspended the expiration of mileage credits through December 31, 2020. As of September 30, 2020, American's current loyalty program liability was $2.1 billion and represents American's current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter. Given the inherent uncertainty of the current operating environment due to COVID-19, American will continue to monitor redemption patterns and may adjust its estimates in the future.