FINANCIAL DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Volume of fuel hedging

	Fuel hedged as of
	March 31, 2012
Period (by year)	(gallons in millions)
Remainder of 2012	313
2013	886
2014	330
2015	336

Schedule of derivative instruments in statement of financial position, fair value

			Asset derivatives				Liability derivatives
	Balance Sheet	Fair value at		Fair value at		Fair value at		Fair value at
(in millions)	location	03/31/12		12/31/11		03/31/12		12/31/11
Derivatives designated as hedges*
Fuel derivative contracts (gross)	Other current assets	$	171	$	17	$	8	$	-
Fuel derivative contracts (gross)	Other assets		361		542		53		107
Fuel derivative contracts (gross)	Accrued liabilities		24		97		-		8
Fuel derivative contracts (gross)	Other noncurrent liabilities		51		93		6		24
Interest rate derivative contracts	Other assets		58		64		-		-
Interest rate derivative contracts	Accrued liabilities		-		2		-		-
Interest rate derivative contracts	Other noncurrent liabilities		-		-		123		132
Total derivatives designated as hedges		$	665	$	815	$	190	$	271
Derivatives not designated as hedges*
Fuel derivative contracts (gross)	Other current assets	$	452	$	124	$	448	$	58
Fuel derivative contracts (gross)	Other assets		400		26		557		272
Fuel derivative contracts (gross)	Accrued liabilities		135		326		284		687
Fuel derivative contracts (gross)	Other noncurrent liabilities		21		9		75		122
Total derivatives not designated as hedges		$	1,008	$	485	$	1,364	$	1,139
Total derivatives		$	1,673	$	1,300	$	1,554	$	1,410
* Represents the position of each trade before consideration of offsetting positions with each counterparty and does not include the impact of cash collateral deposits provided to or received from counterparties. See discussion of credit risk and collateral following in this Note.

Cash collateral deposits, due to/from third parties, and net unrealized gains/losses

		Balance Sheet	March 31,		December 31,
(in millions)		location	2012		2011
Cash collateral deposits provided		Offset against Other
	to counterparties - noncurrent	noncurrent liabilities	$	-	$	41
Cash collateral deposits provided		Offset against Accrued
	to counterparties - current	liabilities		85		185
Due to third parties for fuel contracts		Accrued liabilities		25		21
Receivable from third parties for		Accounts and other
	fuel contracts	receivables		1		3

Derivatives in cash flow hedging relationships

Derivatives in cash flow hedging relationships
		(Gain) loss							(Gain) loss					(Gain) loss
		recognized in AOCI on							reclassified from AOCI					recognized in income
		derivatives (effective							into income (effective					on derivatives
		portion)							portion)(a)						(ineffective portion) (b)
		Three months ended						Three months ended						Three months ended
		March 31,						March 31,						March 31,
(in millions)		2012			2011			2012			2011			2012		2011
Fuel derivative
	contracts	$	(136)	*	$	(315)	*	$	23	*	$	16	*	$	32	$	34
Interest rate
	derivatives		(6)	*		(7)	*		-			-			-		-
Total		$	(142)		$	(322)		$	23		$	16		$	32	$	34
*Net of tax
(a) Amounts related to fuel derivative contracts and interest rate derivatives are included in Fuel and oil and Interest expense, respectively.
(b) Amounts are included in Other (gains) losses, net.

Derivatives not in cash flow hedging relationships

Derivatives not in cash flow hedging relationships
	(Gain) loss
	recognized in income on
	derivatives
	Three months ended				Location of (gain) loss
	March 31,				recognized in income
(in millions)	2012		2011		on derivatives
Fuel derivative contracts	$	(208)	$	(5)	Other (gains) losses, net

Fair values of fuel derivatives, amounts posted as collateral, and collateral posting threshold amounts

		Counterparty (CP)
		A	B	C	D	E	Other(a)	Total
(in millions)
Fair value of fuel derivatives	$	67	$(71)	$(21)	$51	$159	$(1)	$ 184
Cash collateral held from (by) CP		-	(85)	-	-	-	-	(85)
If credit rating is investment
grade, fair value of fuel
derivative level at which:
Cash is provided to CP		(40) to (340)	0 to (125)	>(50)	>(75)	>(50)
		or >(740)	or >(625)
Cash is received from CP		>75	>150	>200(c)	>125(c)	>250
Aircraft or cash can be pledged
to CP as collateral		(340) to	(125) to	N/A	N/A	N/A
		(740)(d)	(625)(d)
If credit rating is non-investment
grade, fair value of fuel derivative
level at which:
Cash is provided to CP		(40) to (340)	0 to (125)	(b)	(b)	(b)
		or >(740)	or >(625)
Cash is received from CP		(b)	(b)	(b)	(b)	(b)
Aircraft can be pledged to CP
as collateral		(340) to	(125) to	N/A	N/A	N/A
		(740)	(625)
(a) Individual counterparties with fair value of fuel derivatives <$15 million.
(b) Cash collateral is provided at 100 percent of fair value of fuel derivative contracts.
(c) Thresholds may vary based on changes in credit ratings within investment grade.
(d) The Company has the option of providing cash or pledging aircraft as collateral. No aircraft were pledged as collateral with such counterparty as of March 31, 2012.