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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2021, and December 31, 2020:

												Fair value measurements at reporting date using:
												Quoted prices in active markets for identical assets						Significant other observable inputs						Significant unobservable inputs
Description						March 31, 2021						(Level 1)						(Level 2)						(Level 3)
Assets						(in millions)
Cash equivalents:
Cash equivalents (a)						$	11,600					$	11,600					$	—					$	—
Commercial paper						90						—						90						—
Certificates of deposit						6						—						6						—
Time deposits						275						—						275						—
Short-term investments:
Treasury bills						1,800						1,800						—						—
Certificates of deposit						27						—						27						—
Time deposits						550						—						550						—
Fuel derivatives:
Option contracts (b)						249						—						—						249
Interest rate derivatives (see Note 4)						6						—						6						—
Other available-for-sale securities						240						240						—						—
Total assets						$	14,843					$	13,640					$	954					$	249

(a) Cash equivalents are primarily composed of money market investments.

(b) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as an asset. See Note 4.

												Fair value measurements at reporting date using:
												Quoted prices in active markets for identical assets						Significant other observable inputs						Significant unobservable inputs
Description						December 31, 2020						(Level 1)						(Level 2)						(Level 3)
Assets						(in millions)
Cash equivalents:
Cash equivalents (a)						$	10,663					$	10,663					$	—					$	—
Commercial paper						90						—						90						—
Certificates of deposit						10						—						10						—
Time deposits						300						—						300						—
Short-term investments:
Treasury bills						1,800						1,800						—						—
Certificates of deposit						46						—						46						—
Time deposits						425						—						425						—
Fuel derivatives:
Option contracts (b)						134						—						—						134
Other available-for-sale securities						259						259						—						—
Total assets						$	13,727					$	12,722					$	871					$	134
Liabilities
Interest rate derivatives (see Note 4)						$	(6)					$	—					$	(6)					$	—

(a) Cash equivalents are primarily composed of money market investments.

(b) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as an asset. See Note 4.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the Company’s activity for items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2021:

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)			Fuel derivatives
Balance at December 31, 2020			$	134
Total gains (losses) for the period
Included in earnings			(1)			(a)
Included in other comprehensive income			117
Settlements			(1)
Balance at March 31, 2021			$	249
The amount of total losses for the period   included in earnings attributable to the   change in unrealized gains or losses relating   to assets still held at March 31, 2021			$	(2)		(a)
The amount of total gains for the period   included in other comprehensive income attributable to the   change in unrealized gains or losses relating   to assets still held at March 31, 2021			$	116

(a) Included in Other (gains) losses, net, within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss).

Fair Value Valuation Techniques

The following table presents a range and weighted average of the unobservable inputs utilized in the fair value measurements of the Company’s fuel derivatives classified as Level 3 at March 31, 2021:

Quantitative information about Level 3 fair value measurements
						Valuation technique						Unobservable input						Period (by year)						Range						Weighted Average (a)
Fuel derivatives						Option model						Implied volatility						Second quarter 2021						22-46%						32		%
																		Third quarter 2021						30-40%						33		%
																		Fourth quarter 2021						29-36%						31		%
																		2022						25-34%						29		%
																		2023						23-26%						25		%
																		Beyond 2023						23-25%						24		%

(a) Implied volatility weighted by the notional amount (barrels of fuel) that will settle in respective period.

Fair value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of the Company’s short-term and long-term debt (including current maturities), as well as the applicable fair value hierarchy tier, at March 31, 2021, are presented in the table below. The fair values of the Company’s publicly held long-term debt are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company has categorized these agreements as Level 2. Debt under five of the Company’s debt agreements is not publicly held. The Company has determined the estimated fair value of this debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes indicative pricing from counterparties and a discounted cash flow method to estimate the fair value of the Level 3 items.

(in millions)			Carrying value						Estimated fair value						Fair value level hierarchy
2.75% Notes due 2022			$	300					$	309					Level 2
Pass Through Certificates due 2022 - 6.24%			105						107						Level 2
4.75% Notes due 2023			1,250						1,350						Level 2
1.25% Convertible Notes due 2025			1,963						3,968						Level 2
5.25% Notes due 2025			1,550						1,765						Level 2
Term Loan Agreement payable through 2025 - 1.59%			112						112						Level 3
3.00% Notes due 2026			300						317						Level 2
Term Loan Agreement payable through 2026 - 1.34%			159						157						Level 3
3.45% Notes due 2027			300						318						Level 2
5.125% Notes due 2027			2,000						2,301						Level 2
7.375% Debentures due 2027			119						145						Level 2
Term Loan Agreement payable through 2028 - 1.60%			178						177						Level 3
2.625% Notes due 2030			500						492						Level 2
1.000% Payroll Support Program Loan due 2030			976						941						Level 3
1.000% Payroll Support Program Loan due 2031			488						460						Level 3

Schedule of Debt

The following table details the liability component recognized related to the Convertible Notes as of March 31, 2021, and December 31, 2020:

(in millions)			March 31, 2021						December 31, 2020
Liability component:
Principal amount			$	2,300					$	2,300
Unamortized debt discount			(337)						(355)
Net carrying amount			$	1,963					$	1,945

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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