Leases, Codification Topic 842 (Tables)

12 Months Ended

Dec. 31, 2023

Operating lease assets balance by asset class was as follows (in millions):


	December 31, 2023		December 31, 2022
Aircraft	$	468	$	701
CPA Aircraft	622		683
Airport and terminal facilities	29		21
Corporate real estate and other	76		66
Total Operating Lease Assets	$	1,195	$	1,471

Lease, Cost

The impact of leases, including variable lease cost, was as follows (in millions):


	Classification	2023		2022		2021
Expense
Aircraft(a)	Aircraft rent	$	100	$	191	$	174
CPA Aircraft	Aircraft rent	108		100		80
Airport and terminal facilities	Landing fees and other rentals	451		384		379
Corporate real estate and other	Landing fees and other rentals	31		33		21
Total lease expense		$	690	$	708	$	654
Revenue
Lease revenue	Cargo and other revenue	(15)		(15)		(16)
Net lease impact		$	675	$	693	$	638

(a) Aircraft lease expense excludes the portion of aircraft rent that was accelerated due to the fleet transition and recorded to Special items - fleet transition and other, as well as interest expense associated with certain A321neo finance leases recorded to Special items - net non-operating within the consolidated statements of operations. Refer to Note 2 to the consolidated financial statements for additional information.

Lessee, Operating Lease, Liability, Maturity

Future minimum lease payments under non-cancellable leases as of December 31, 2023 (in millions):


	Aircraft(a)		CPA Aircraft		Airport and Terminal Facilities		Corporate Real Estate and Other
2024	$	162	$	112	$	5	$	10
2025	72		112		6		9
2026	75		112		6		9
2027	71		112		5		8
2028	64		110		5		7
Thereafter	306		276		9		112
Total Lease Payments(b)	$	750	$	834	$	36	$	155
Less: Imputed interest	(145)		(191)		(6)		(74)
Total	$	605	$	643	$	30	$	81

(a) Future minimum lease payments include payments for aircraft operated under operating leases and aircraft removed from operating service which remain under operating and finance leases, as we have remaining cash obligations under existing terms.

(b) Future minimum lease payments in the table reflect incentive credits related to leased B737-9 aircraft. As a result, the operating lease liabilities presented on the consolidated balance sheet will not agree to this table.

Weighted Average Lease Assumptions

The weighted average IBR and weighted average remaining lease term (in years) for all asset classes were as follows at December 31, 2023.


	Weighted Average IBR		Weighted Average Remaining Lease Term
Aircraft	5.5	%	9.3
CPA Aircraft	7.0	%	7.8
Airport and terminal facilities	5.3	%	6.7
Corporate real estate and other	5.4	%	26.6