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REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended
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Mar. 31, 2020
Revenue Recognition [Abstract] |
REVENUE FROM CONTRACTS WITH CUSTOMERS | Ticket revenue is recorded as Passenger revenue, and represents the primary source of the Company's revenue. Also included in Passenger revenue are passenger ancillary revenues, such as bag fees, on-board food and beverage, ticket change fees, and certain revenue from the frequent flyer program. Mileage Plan other revenue includes brand and marketing revenue from the Company's co-branded credit card and other partners and certain interline frequent flyer revenue, net of commissions. Cargo and other revenue includes freight and mail revenue, and to a lesser extent, other ancillary revenue products such as lounge membership and certain commissions. The Company disaggregates revenue by segment in Note 9. The details within the Company’s statements of operations, segment disclosures, and in this footnote depict the nature, amount, timing and uncertainty of revenue and how cash flows are affected by economic and other factors. Passenger Ticket and Ancillary Services Revenue Passenger revenue recognized in the condensed consolidated statements of operations (in millions):
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Passenger ticket revenue, including ticket breakage and net of taxes and fees | $ | 1,213 |  |  | $ | 1,439 |  |  |  |  |
Passenger ancillary revenue | 116 |  |  | 124 |  |  |  |  |
Mileage Plan passenger revenue | 152 |  |  | 153 |  |  |  |  |
Total Passenger revenue | $ | 1,481 |  |  | $ | 1,716 |  |  |  |  |
Mileage Plan™ Loyalty Program Mileage Plan™ revenue included in the condensed consolidated statements of operations (in millions):
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Passenger revenue | $ | 152 |  |  | $ | 153 |  |  |  |  |
Mileage Plan other revenue | 109 |  |  | 110 |  |  |  |  |
Total Mileage Plan revenue | $ | 261 |  |  | $ | 263 |  |  |  |  |
Cargo and Other Cargo and other revenue included in the condensed consolidated statements of operations (in millions):
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Cargo revenue | $ | 24 |  |  | $ | 30 |  |  |  |  |
Other revenue | 22 |  |  | 20 |  |  |  |  |
Total Cargo and other revenue | $ | 46 |  |  | $ | 50 |  |  |  |  |
Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $489 million and $474 million from the prior year-end air traffic liability balance for the three months ended March 31, 2020 and 2019. Given the ongoing reduction in demand for air travel stemming from the COVID-19 pandemic, the Company has observed unprecedented declines in advance bookings and associated cash receipts. The Company also saw significant cancellations beginning in March 2020, which has led to cash refunds or the issuance of credits for future travel. At March 31, 2020, such credits, which are included in the air traffic liability balance totaled $402 million, net of breakage. In April 2020, the Company announced updated expiration terms for these credits, extending to July 2021. At this time, the Company is unable to estimate how and when the air traffic liability will be recognized in earnings given ongoing uncertainty around the return in demand for air travel. Mileage PlanTM assets and liabilities The Company records a receivable for amounts due from the bank partner and from other partners as mileage credits are sold until the payments are collected. Consistent with the significant cancellation activity outlined above, the Company saw a substantial number of redeposits in March. Given the uncertainty around the return in demand for air travel, the Company is unable to determine how and when mileage credits will be recognized in earnings. The Company had $88 million of such receivables as of March 31, 2020 and $105 million as of December 31, 2019. The table below presents a roll forward of the total frequent flyer liability (in millions):
|  |  |  |  | Three Months Ended March 31, |  |
|  |  |  |  | 2020 |  | 2019
Total Deferred Revenue balance at January 1 |  |  |  |  | $ | 1,990 |  |  | $ | 1,874 |
Travel miles and companion certificate redemption - Passenger revenue |  |  |  |  | (152) |  |  | (153) |
Miles redeemed on partner airlines - Other revenue |  |  |  |  | (22) |  |  | (28) |
Increase in liability for mileage credits issued |  |  |  |  | 207 |  |  | 222 |
Total Deferred Revenue balance at March 31 |  |  |  |  | $ | 2,023 |  |  | $ | 1,915 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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