Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Entity Information [Line Items]

Disaggregation of Revenue

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

	Three Months Ended March 31,
	2023		2022
Passenger revenue:
Passenger travel	$	10,291	$	7,213
Loyalty revenue - travel (1)	812		605
Total passenger revenue	11,103		7,818
Cargo	223		364
Other:
Loyalty revenue - marketing services	722		596
Other revenue	141		121
Total other revenue	863		717
Total operating revenues	$	12,189	$	8,899

(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 March 31,
	2023		2022
Domestic	$	8,037	$	6,060
Latin America	1,915		1,227
Atlantic	931		466
Pacific	220		65
Total passenger revenue	$	11,103	$	7,818

Schedule of Contract Liabilities

	March 31, 2023		December 31, 2022
	(In millions)
Loyalty program liability	$	9,367	$	9,145
Air traffic liability	9,053		6,745
Total	$	18,420	$	15,890

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, 2022	$	9,145
Deferral of revenue	1,057
Recognition of revenue (1)	(835)
Balance at March 31, 2023 (2)	$	9,367

(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 mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits 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 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of March 31, 2023, our current loyalty program liability was $3.5 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.

American Airlines, Inc.

Entity Information [Line Items]

Disaggregation of Revenue

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

	Three Months Ended March 31,
	2023		2022
Passenger revenue:
Passenger travel	$	10,291	$	7,213
Loyalty revenue - travel (1)	812		605
Total passenger revenue	11,103		7,818
Cargo	223		364
Other:
Loyalty revenue - marketing services	722		596
Other revenue	140		118
Total other revenue	862		714
Total operating revenues	$	12,188	$	8,896

(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 March 31,
	2023		2022
Domestic	$	8,037	$	6,060
Latin America	1,915		1,227
Atlantic	931		466
Pacific	220		65
Total passenger revenue	$	11,103	$	7,818

Schedule of Contract Liabilities

	March 31, 2023		December 31, 2022
	(In millions)
Loyalty program liability	$	9,367	$	9,145
Air traffic liability	9,053		6,745
Total	$	18,420	$	15,890

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, 2022	$	9,145
Deferral of revenue	1,057
Recognition of revenue (1)	(835)
Balance at March 31, 2023 (2)	$	9,367

(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 mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits 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 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of March 31, 2023, American’s current loyalty program liability was $3.5 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.