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REVENUE RECOGNITION | 9 Months Ended
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Sep. 30, 2023
Revenue from Contract with Customer [Abstract] |
REVENUE RECOGNITION | REVENUE RECOGNITION Passenger Revenue
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |  |  |
(in millions) | 2023 | 2022 |  | 2023 | 2022 |  |  |  |  |  |
Ticket | $ | 11,733 |  | $ | 10,247 |  |  | $ | 32,801 |  | $ | 26,005 |  |  |  |  |  |  |
Loyalty travel awards | 902 |  | 786 |  |  | 2,547 |  | 2,073 |  |  |  |  |  |  |
Travel-related services | 484 |  | 431 |  |  | 1,387 |  | 1,251 |  |  |  |  |  |  |
Passenger revenue | $ | 13,119 |  | $ | 11,464 |  |  | $ | 36,735 |  | $ | 29,329 |  |  |  |  |  |  |
Ticket We recognized approximately $6.7 billion and $3.9 billion in passenger revenue during the nine months ended September 30, 2023 and 2022, respectively, that had been recorded in our air traffic liability balance at the beginning of those periods. As of September 30, 2023, all of our air traffic liability was recorded as a current liability. As of December 31, 2022, our air traffic liability was $8.3 billion, of which $100 million was included in other noncurrent liabilities on our Consolidated Balance Sheet ("balance sheet"). Loyalty Travel Awards Our SkyMiles loyalty program allows customers to earn mileage credits ("miles") by flying on Delta, Delta Connection and other airlines that participate in the loyalty program. Loyalty travel awards revenue is related to the redemption of miles for air travel. Customers can also earn miles through participating companies, such as credit card companies, hotels, car rental agencies and ridesharing companies, who purchase miles from us. Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. During the nine months ended September 30, 2023 and 2022, total cash sales from marketing agreements related to our loyalty program were $5.2 billion and $4.1 billion, respectively, which are allocated to travel and other performance obligations. Current Activity of the Loyalty Program. Miles are combined in one homogeneous pool and are not separately identifiable. Therefore, revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period as well as miles that were issued during the period. The timing of mile redemptions can vary widely; however, the majority of miles have historically been redeemed within two years of being earned. The table below presents the activity of the current and noncurrent loyalty program deferred revenue and includes miles earned through travel and miles sold to participating companies, which are primarily through marketing agreements.
Loyalty program activity
(in millions) |  | 2023 | 2022
Balance at January 1 |  | $ | 7,882 |  | $ | 7,559 |
Miles earned |  | 3,164 |  | 2,496 |
Miles redeemed for air travel |  | (2,547) |  | (2,073) |
Miles redeemed for non-air travel and other |  | (126) |  | (122) |
Balance at September 30 |  | $ | 8,373 |  | $ | 7,860 |
Travel-Related Services Travel-related services are primarily composed of services performed in conjunction with a passenger’s flight and include baggage fees, administrative fees, and on-board sales. Other Revenue
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |  |  |
(in millions) | 2023 | 2022 |  | 2023 | 2022 |  |  |  |  |  |
Refinery | $ | 935 |  | $ | 1,134 |  |  | $ | 2,817 |  | $ | 3,835 |  |  |  |  |  |  |
Loyalty program | 791 |  | 655 |  |  | 2,291 |  | 1,877 |  |  |  |  |  |  |
Ancillary businesses | 212 |  | 249 |  |  | 657 |  | 665 |  |  |  |  |  |  |
Miscellaneous | 277 |  | 233 |  |  | 790 |  | 640 |  |  |  |  |  |  |
Other revenue | $ | 2,215 |  | $ | 2,271 |  |  | $ | 6,555 |  | $ | 7,017 |  |  |  |  |  |  |
Refinery. This represents refinery sales to third parties. See Note 9, "Segments," for more information on revenue recognition within our refinery segment. Loyalty Program. Loyalty program revenue relates to brand usage by third parties and other performance obligations embedded in miles sold, including redemption of miles for non-air travel and other awards. These revenues are mainly derived from the total cash sales from marketing agreements, discussed above. Ancillary Businesses. Ancillary businesses revenue represents revenues from aircraft maintenance services we provide to third parties and our vacation wholesale operations. Miscellaneous. Miscellaneous is primarily composed of revenues related to Delta Sky Club lounge access, including access provided to certain American Express cardholders, and codeshare agreements. Revenue by Geographic Region Operating revenue for the airline segment is recognized in a specific geographic region based on the origin, flight path and destination of each flight segment. A significant portion of the refinery segment's revenues typically consists of fuel sales to support the airline, which is eliminated in the Condensed Consolidated Financial Statements. The remaining operating revenue for the refinery segment is included in the domestic region. Our passenger and operating revenue by geographic region is summarized in the following tables:
Passenger revenue by geographic region
| Passenger Revenue |  |  |
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |  |  |
(in millions) | 2023 | 2022 |  | 2023 | 2022 |  |  |  |  |  |
Domestic | $ | 8,662 |  | $ | 8,154 |  |  | $ | 25,200 |  | $ | 22,035 |  |  |  |  |  |  |
Atlantic | 3,110 |  | 2,313 |  |  | 7,157 |  | 4,553 |  |  |  |  |  |  |
Latin America | 788 |  | 659 |  |  | 2,846 |  | 2,084 |  |  |  |  |  |  |
Pacific | 559 |  | 338 |  |  | 1,532 |  | 657 |  |  |  |  |  |  |
Total | $ | 13,119 |  | $ | 11,464 |  |  | $ | 36,735 |  | $ | 29,329 |  |  |  |  |  |  |
Operating revenue by geographic region
| Operating Revenue |  |  |
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |  |  |
(in millions) | 2023 | 2022 |  | 2023 | 2022 |  |  |  |  |  |
Domestic | $ | 10,461 |  | $ | 10,118 |  |  | $ | 30,607 |  | $ | 28,322 |  |  |  |  |  |  |
Atlantic | 3,497 |  | 2,705 |  |  | 8,223 |  | 5,538 |  |  |  |  |  |  |
Latin America | 891 |  | 752 |  |  | 3,208 |  | 2,417 |  |  |  |  |  |  |
Pacific | 639 |  | 400 |  |  | 1,787 |  | 870 |  |  |  |  |  |  |
Total | $ | 15,488 |  | $ | 13,975 |  |  | $ | 43,825 |  | $ | 37,147 |  |  |  |  |  |  |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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