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REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended
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Sep. 30, 2024
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 is passenger ancillary revenue such as bag fees, on-board food and beverage, and certain revenue from Alaska's Mileage Plan program and Hawaiian's HawaiianMiles program. Loyalty program other revenue includes brand and marketing revenue from the Alaska Airlines Visa Signature and Hawaiian Airlines World Elite Mastercard co-branded credit cards and other partners, and certain interline frequent flyer revenue, net of commissions. Cargo and other revenue comprises freight and mail revenue, including services provided to Amazon under the Air Transportation Services Agreement (the ATSA), and to a lesser extent, other ancillary revenue products such as lounge membership and certain commissions. The level of detail within the Company’s unaudited Condensed Consolidated Statements of Operations 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 Revenue Passenger ticket and ancillary services revenue Passenger revenue recognized in the unaudited Condensed Consolidated Statements of Operations:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Passenger ticket revenue, net of taxes and fees | $ | 2,380 |  |  | $ | 2,226 |  |  | $ | 6,254 |  |  | $ | 6,081 |
Passenger ancillary revenue | 152 |  |  | 135 |  |  | 395 |  |  | 362 |
Loyalty program passenger revenue | 289 |  |  | 257 |  |  | 827 |  |  | 757 |
Total Passenger revenue | $ | 2,821 |  |  | $ | 2,618 |  |  | $ | 7,476 |  |  | $ | 7,200 |
Loyalty Program Revenue Loyalty program revenue included in the unaudited Condensed Consolidated Statements of Operations:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Loyalty program passenger revenue | $ | 289 |  |  | $ | 257 |  |  | $ | 827 |  |  | $ | 757 |
Loyalty program other revenue | 171 |  |  | 159 |  |  | 509 |  |  | 483 |
Total Loyalty program revenue | $ | 460 |  |  | $ | 416 |  |  | $ | 1,336 |  |  | $ | 1,240 |
Cargo and Other Revenue Cargo and other revenue included in the unaudited Condensed Consolidated Statements of Operations:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Cargo revenue | $ | 43 |  |  | $ | 29 |  |  | $ | 107 |  |  | $ | 97 |
Other revenue | 37 |  |  | 33 |  |  | 109 |  |  | 93 |
Total Cargo and other revenue | $ | 80 |  |  | $ | 62 |  |  | $ | 216 |  |  | $ | 190 |
Air Traffic Liability and Deferred Revenue Passenger ticket and ancillary services liabilities The Company recognized Passenger revenue of $46 million and $33 million from the prior year-end air traffic liability balance for the three months ended September 30, 2024 and 2023, and $763 million and $621 million from the prior year-end air traffic liability balance for the nine months ended September 30, 2024 and 2023. The amounts recognized in 2024 from the prior year-end air traffic liability balance do not include Hawaiian passenger revenue as air traffic liability attributable to Hawaiian was not included within the Company's prior year-end balance. Loyalty program assets and liabilities The Company records a receivable for amounts due from affinity card partners and from other partners as mileage credits are sold until the payments are collected. The Company had $105 million of such receivables as of September 30, 2024 and $102 million as of December 31, 2023. The table below presents a roll forward of the total frequent flyer liability:
| Nine Months Ended September 30,
(in millions) | 2024 |  | 2023
Total Deferred Revenue balance at January 1 | $ | 2,603 |  |  | $ | 2,497 |
Deferred revenue acquired from Hawaiian as of September 18 | 537 |  |  | — |
Travel miles and companion certificate redemption - Passenger revenue | (782) |  |  | (712) |
Miles redeemed on partner airlines - Other revenue | (113) |  |  | (86) |
Increase in liability for mileage credits issued | 947 |  |  | 900 |
Total Deferred Revenue balance at September 30 | $ | 3,192 |  |  | $ | 2,599 |

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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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