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REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended
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Mar. 31, 2021
Revenue Recognition [Abstract] |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE 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. In 2020, the Company eliminated ticket change fees indefinitely from its main cabin and first class fares. Mileage Plan other revenue includes brand and marketing revenue from our 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 level of detail within the Company’s condensed consolidated 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, |  |
| 2021 |  | 2020 |  |  |  |
Passenger ticket revenue, including ticket breakage and net of taxes and fees | $ | 525 |  |  | $ | 1,213 |  |  |  |  |
Passenger ancillary revenue | 50 |  |  | 116 |  |  |  |  |
Mileage Plan passenger revenue | 84 |  |  | 152 |  |  |  |  |
Total Passenger revenue | $ | 659 |  |  | $ | 1,481 |  |  |  |  |
Mileage Plan™ Loyalty Program Mileage Plan™ revenue included in the condensed consolidated statements of operations (in millions):
| Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |
Passenger revenue | $ | 84 |  |  | $ | 152 |  |  |  |  |
Mileage Plan other revenue | 94 |  |  | 109 |  |  |  |  |
Total Mileage Plan revenue | $ | 178 |  |  | $ | 261 |  |  |  |  |
Cargo and Other Cargo and other revenue included in the condensed consolidated statements of operations (in millions):
| Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |
Cargo revenue | $ | 27 |  |  | $ | 24 |  |  |  |  |
Other revenue | 17 |  |  | 22 |  |  |  |  |
Total Cargo and other revenue | $ | 44 |  |  | $ | 46 |  |  |  |  |
Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $136 million and $489 million from the prior year-end air traffic liability balance for the three months ended March 31, 2021 and 2020. Given the reduction in demand for air travel stemming from the COVID-19 pandemic, advance bookings and associated cash receipts have been significantly depressed. The Company also experienced elevated cancellations beginning in March 2020 which led to cash refunds or the issuance of credits for future travel. At March 31, 2021, such credits, which are included in the air traffic liability balance, totaled $484 million, net of breakage. In April 2021, the Company announced updated expiration terms for these credits, extending to December 31, 2021 for possible travel through November 30, 2022. Given the ongoing uncertainty in the return of demand for air travel, assumptions about breakage of these credits could change in future periods. Mileage Plan TM 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. The Company had $52 million of such receivables as of March 31, 2021 and $48 million as of December 31, 2020. Given the ongoing uncertainty around the return in demand for air travel, the timing of recognition of mileage credits may differ from current assumptions. The table below presents a roll forward of the total frequent flyer liability (in millions):
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Total Deferred Revenue balance at January 1 |  |  |  |  | $ | 2,277 |  |  | $ | 1,990 |
Travel miles and companion certificate redemption - Passenger revenue |  |  |  |  | (84) |  |  | (152) |
Miles redeemed on partner airlines - Other revenue |  |  |  |  | (4) |  |  | (22) |
Increase in liability for mileage credits issued |  |  |  |  | 136 |  |  | 207 |
Total Deferred Revenue balance at March 31 |  |  |  |  | $ | 2,325 |  |  | $ | 2,023 |

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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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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