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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 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 Alaska's Mileage Plan program and Hawaiian's HawaiianMiles program. Loyalty program other revenue includes brand and marketing revenue from the Alaska Airlines Visa Signature and Hawaiian Airlines World Elite Mastercard co-branded credit cards and other partners, and certain interline frequent flyer revenue, net of commissions. Cargo and other revenue comprises freight and mail revenue, including services provided to Amazon under the Air Transportation Services Agreement (the ATSA), 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 Revenue

Passenger ticket and ancillary services revenue

Passenger revenue recognized in the unaudited Condensed Consolidated Statements of Operations:
Three Months Ended September 30,Nine Months Ended September 30,
 (in millions)2024202320242023
Passenger ticket revenue, net of taxes and fees$2,380 $2,226 $6,254 $6,081 
Passenger ancillary revenue152 135 395 362 
Loyalty program passenger revenue289 257 827 757 
Total Passenger revenue$2,821 $2,618 $7,476 $7,200 

Loyalty Program Revenue

Loyalty program revenue included in the unaudited Condensed Consolidated Statements of Operations:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2024202320242023
Loyalty program passenger revenue$289 $257 $827 $757 
Loyalty program other revenue171 159 509 483 
Total Loyalty program revenue$460 $416 $1,336 $1,240 

Cargo and Other Revenue

Cargo and other revenue included in the unaudited Condensed Consolidated Statements of Operations:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2024202320242023
Cargo revenue$43 $29 $107 $97 
Other revenue37 33 109 93 
Total Cargo and other revenue$80 $62 $216 $190 

Air Traffic Liability and Deferred Revenue

Passenger ticket and ancillary services liabilities

The Company recognized Passenger revenue of $46 million and $33 million from the prior year-end air traffic liability balance for the three months ended September 30, 2024 and 2023, and $763 million and $621 million from the prior year-end air traffic liability balance for the nine months ended September 30, 2024 and 2023. The amounts recognized in 2024 from the prior year-end air traffic liability balance do not include Hawaiian passenger revenue as air traffic liability attributable to Hawaiian was not included within the Company's prior year-end balance.

Loyalty program assets and liabilities

The Company records a receivable for amounts due from affinity card partners and from other partners as mileage credits are sold until the payments are collected. The Company had $105 million of such receivables as of September 30, 2024 and $102 million as of December 31, 2023.
The table below presents a roll forward of the total frequent flyer liability:
Nine Months Ended September 30,
(in millions)20242023
Total Deferred Revenue balance at January 1$2,603 $2,497 
Deferred revenue acquired from Hawaiian as of September 18537 — 
Travel miles and companion certificate redemption - Passenger revenue(782)(712)
Miles redeemed on partner airlines - Other revenue(113)(86)
Increase in liability for mileage credits issued947 900 
Total Deferred Revenue balance at September 30$3,192 $2,599