REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Mar. 31, 2024

Revenue Recognition [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

Ticket revenue is recorded as Passenger revenue, and represents the primary source of the Company's revenue. Also included in Passenger revenue is passenger ancillary revenue such as bag fees, on-board food and beverage, and certain revenue from the

frequent flyer program. Mileage Plan other revenue includes brand and marketing revenue from the co-branded credit card and other partners, and certain interline frequent flyer revenue, net of commissions. Cargo and other revenue includes freight and mail revenue, and to a lesser extent, other ancillary revenue products such as lounge membership and certain commissions.

The level of detail within the Company’s condensed consolidated statements of operations and in this footnote depict the nature, amount, timing, and uncertainty of revenue and how cash flows are affected by economic and other factors.

Passenger Ticket and Ancillary Services Revenue

Passenger revenue recognized in the condensed consolidated statements of operations (in millions):

	Three Months Ended March 31,
	2024		2023
Passenger ticket revenue, net of taxes and fees	$	1,648	$	1,648
Passenger ancillary revenue	108		104
Mileage Plan passenger revenue	248		232
Total Passenger revenue	$	2,004	$	1,984

Mileage Plan Loyalty Program

Mileage Plan revenue included in the condensed consolidated statements of operations (in millions):

	Three Months Ended March 31,
	2024		2023
Mileage Plan passenger revenue	$	248	$	232
Mileage Plan other revenue	164		154
Total Mileage Plan revenue	$	412	$	386

Cargo and Other Revenue

Cargo and other revenue included in the condensed consolidated statements of operations (in millions):

	Three Months Ended March 31,
	2024		2023
Cargo revenue	$	28	$	29
Other revenue	36		29
Total Cargo and other revenue	$	64	$	58

Air Traffic Liability and Deferred Revenue

Passenger ticket and ancillary services liabilities

The Company recognized Passenger revenue of $584 million and $485 million from the prior year-end air traffic liability balance for the three months ended March 31, 2024 and 2023.

Mileage Plan assets and liabilities

The Company records a receivable for amounts due from the affinity card partner and from other partners as mileage credits are sold until the payments are collected. The Company had $104 million of such receivables as of March 31, 2024 and $102 million as of December 31, 2023.

The table below presents a roll forward of the total frequent flyer liability (in millions):

	Three Months Ended March 31,
	2024		2023
Total Deferred Revenue balance at January 1	$	2,603	$	2,497
Travel miles and companion certificate redemption - Passenger revenue	(234)		(218)
Miles redeemed on partner airlines - Other revenue	(28)		(21)
Increase in liability for mileage credits issued	292		285
Total Deferred Revenue balance at March 31	$	2,633	$	2,543