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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30, 2022, and December 31, 2021:

												Fair value measurements at reporting date using:
												Quoted prices in active markets for identical assets						Significant other observable inputs						Significant unobservable inputs
Description						June 30, 2022						(Level 1)						(Level 2)						(Level 3)
Assets						(in millions)
Cash equivalents:
Cash equivalents (a)						$	12,964					$	12,964					$	—					$	—
Commercial paper						270						—						270						—
Short-term investments:
Treasury bills						2,432						2,432						—						—
Certificates of deposit						90						—						90						—
Time deposits						675						—						675						—
Fuel derivatives:
Option contracts (b)						1,294						—						—						1,294
Interest rate derivatives (see Note 4)						11						—						11						—
Equity Securities						225						225						—						—
Total assets						$	17,961					$	15,621					$	1,046					$	1,294
Liabilities
Fuel derivatives:
Option contracts (b)						$	(167)					$	—					$	—					$	(167)

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

(b) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as a net 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, 2021						(Level 1)						(Level 2)						(Level 3)
Assets						(in millions)
Cash equivalents:
Cash equivalents (a)						$	12,340					$	12,340					$	—					$	—
Commercial paper						90						—						90						—
Time deposits						50						—						50						—
Short-term investments:
Treasury bills						2,399						2,399						—						—
Time deposits						625						—						625						—
Fuel derivatives:
Option contracts (b)						696						—						—						696
Equity Securities						288						288						—						—
Total assets						$	16,488					$	15,027					$	765					$	696
Liabilities
Interest rate derivatives (see Note 4)						$	(4)					$	—					$	(4)					$	—

(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 tables present the Company’s activity for items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2022:

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)			Fuel derivatives
Balance at March 31, 2022			$	1,273
Total gains for the period
Included in earnings			20			(a)
Included in other comprehensive income			182
Sales			(16)			(b)
Settlements			(332)
Balance at June 30, 2022			$	1,127
The amount of total gains for the period   included in earnings attributable to the   change in unrealized gains or losses relating   to assets still held at June 30, 2022			$	20		(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 June 30, 2022			$	115

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

(b) The sale of fuel derivatives is recorded gross based on the structure of the derivative instrument and whether a contract with multiple derivatives was purchased as a single instrument or separate instruments.

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)			Fuel derivatives
Balance at December 31, 2021			$	696
Total gains (losses) for the period
Included in earnings			(15)			(a)
Included in other comprehensive income			1,033
Sales			(26)			(b)
Settlements			(561)
Balance at June 30, 2022			$	1,127
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 June 30, 2022			$	(15)		(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 June 30, 2022			$	672

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

(b) The sale of fuel derivatives is recorded gross based on the structure of the derivative instrument and whether a contract with multiple derivatives was purchased as a single instrument or separate instruments.

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 June 30, 2022:

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						Third quarter 2022						28-68%						48		%
																		Fourth quarter 2022						44-65%						53		%
																		2023						38-58%						50		%
																		2024						34-48%						39		%

(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 June 30, 2022, 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. All privately held debt agreements are categorized as Level 3. 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 November 2022			$	300					$	300					Level 2
Pass Through Certificates due August 2022 - 6.19%			33						33						Level 2
4.75% Notes due 2023			1,247						1,259						Level 2
1.25% Convertible Notes due 2025			1,795						2,121						Level 2
5.25% Notes due 2025			1,549						1,582						Level 2
3.00% Notes due 2026			300						281						Level 2
3.45% Notes due 2027			300						282						Level 2
5.125% Notes due 2027			1,944						1,963						Level 2
7.375% Debentures due 2027			115						126						Level 2
2.625% Notes due 2030			500						423						Level 2
1.000% PSP1 due 2030			976						900						Level 3
1.000% PSP2 due 2031			566						510						Level 3
1.000% PSP3 due 2031			526						470						Level 3

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- Definition

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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Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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