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Revenue | 6 Months Ended
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Jun. 30, 2023
Revenue from Contract with Customer [Abstract] |
REVENUE | REVENUE Passenger Revenues The Company’s contracts with its Customers primarily consist of its tickets sold, which are initially deferred as Air traffic liability. Passenger revenue associated with tickets is recognized when the performance obligation to the Customer is satisfied, which is primarily when travel is provided. Revenue is categorized by revenue source as the Company believes it best depicts the nature, amount, timing, and uncertainty of revenue and cash flow. The following table provides the components of Passenger revenue recognized for the three and six months ended June 30, 2023 and 2022:
| Three months ended June 30, |  | Six months ended June 30,
(in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Passenger non-loyalty | $ | 5,183 |  |  | $ | 5,118 |  |  | $ | 9,265 |  |  | $ | 8,482 |
Passenger loyalty - air transportation | 989 |  |  | 821 |  |  | 1,814 |  |  | 1,445 |
Passenger ancillary sold separately | 237 |  |  | 180 |  |  | 435 |  |  | 327 |
Total passenger revenues | $ | 6,409 |  |  | $ | 6,119 |  |  | $ | 11,514 |  |  | $ | 10,254 |
As of June 30, 2023, and December 31, 2022, the components of Air traffic liability, including contract liabilities based on tickets sold and unused flight credits available to the Customer, both of which are net of recorded breakage, and loyalty points available for redemption, within the unaudited Condensed Consolidated Balance Sheet were as follows:
| Balance as of
(in millions) | June 30, 2023 |  | December 31, 2022
Air traffic liability - passenger travel and ancillary passenger services | $ | 3,980 |  |  | $ | 3,061 |
Air traffic liability - loyalty program | 5,079 |  |  | 5,189 |
Total Air traffic liability | $ | 9,059 |  |  | $ | 8,250 |
The balance in "Air traffic liability - passenger travel and ancillary passenger services" also includes flight credits not currently associated with a ticket that can be applied by Customers towards the purchase of future travel. These flight credits are typically created as a result of a prior ticket cancellation or exchange, and are reflected net of associated breakage. Rollforwards of the Company's "Air traffic liability - loyalty program" for the three and six months ended June 30, 2023 and 2022 were as follows (in millions):
| Three months ended June 30, |  | Six months ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Air traffic liability - loyalty program - beginning balance | $ | 5,190 |  |  | $ | 4,884 |  |  | $ | 5,189 |  |  | $ | 4,789 |
Amounts deferred associated with points awarded | 903 |  |  | 842 |  |  | 1,750 |  |  | 1,579 |
Revenue recognized from points redeemed - Passenger | (989) |  |  | (821) |  |  | (1,814) |  |  | (1,445) |
Revenue recognized from points redeemed - Other | (25) |  |  | (21) |  |  | (46) |  |  | (39) |
Air traffic liability - loyalty program - ending balance | $ | 5,079 |  |  | $ | 4,884 |  |  | $ | 5,079 |  |  | $ | 4,884 |
Air traffic liability includes consideration received for ticket and loyalty related performance obligations which have not been satisfied as of a given date. Rollforwards of the amounts included in Air traffic liability as of June 30, 2023 and 2022 were as follows (in millions):
| Air traffic liability
Balance at December 31, 2022 | $ | 8,250 |
Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty) | 12,369 |
Revenue from amounts included in contract liability opening balances | (4,170) |
Revenue from current period sales | (7,390) |
Balance at June 30, 2023 | $ | 9,059 |
| Air traffic liability
Balance at December 31, 2021 | $ | 7,725 |
Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty) | 11,086 |
Revenue from amounts included in contract liability opening balances | (3,029) |
Revenue from current period sales | (7,264) |
Balance at June 30, 2022 | $ | 8,518 |
On July 28, 2022, the Company announced that all existing Customer flight credits as of that date, as well as any future flight credits issued, will no longer expire and will thus remain redeemable by Customers. Flight credits for non-refundable fares will be issued as long as the flight is cancelled more than 10 minutes prior to the scheduled departure. As the Company continues to believe that a portion of Customer flight credits issued after July 28, 2022, will not be redeemed, it continues to estimate and record breakage associated with such amounts. The amount of Customer flight credits represents approximately 7 percent and 9 percent of the total Air traffic liability balance as of June 30, 2023, and December 31, 2022, respectively. The Company recognized revenue related to the marketing, advertising, and other travel-related benefits of the revenue associated with various loyalty partner agreements including, but not limited to, the Agreement with Chase Bank USA, N.A, within Other operating revenues. For the three months ended June 30, 2023 and 2022, the Company recognized $540 million and $522 million, respectively. For the six months ended June 30, 2023 and 2022, the Company recognized $1.1 billion and $1.0 billion, respectively.

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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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