REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 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 unaudited 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 unaudited Condensed Consolidated Statements of Operations (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Passenger ticket revenue, net of taxes and fees	$	2,226	$	2,207	$	3,874	$	3,855
Passenger ancillary revenue	135		123		243		227
Mileage Plan passenger revenue	290		268		538		500
Total Passenger revenue	$	2,651	$	2,598	$	4,655	$	4,582

Mileage Plan Loyalty Program

Mileage Plan revenue included in the unaudited Condensed Consolidated Statements of Operations (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Mileage Plan passenger revenue	$	290	$	268	$	538	$	500
Mileage Plan other revenue	174		170		338		324
Total Mileage Plan revenue	$	464	$	438	$	876	$	824

Cargo and Other Revenue

Cargo and other revenue included in the unaudited Condensed Consolidated Statements of Operations (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cargo revenue	$	36	$	39	$	64	$	68
Other revenue	36		31		72		60
Total Cargo and other revenue	$	72	$	70	$	136	$	128

Air Traffic Liability and Deferred Revenue

Passenger ticket and ancillary services liabilities

The Company recognized Passenger revenue of $150 million and $103 million from the prior year-end air traffic liability balance for the three months ended June 30, 2024 and 2023, and $717 million and $588 million from the prior year-end air traffic liability balance for the six months ended June 30, 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 $87 million of such receivables as of June 30, 2024 and $102 million as of December 31, 2023.

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

	Six Months Ended June 30,
	2024		2023
Total Deferred Revenue balance at January 1	$	2,603	$	2,497
Travel miles and companion certificate redemption - Passenger revenue	(508)		(470)
Miles redeemed on partner airlines - Other revenue	(67)		(52)
Increase in liability for mileage credits issued	613		602
Total Deferred Revenue balance at June 30	$	2,641	$	2,577