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Financial Derivative Instruments and Risk Management (Tables)
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Percentage fuel covered under derivative contracts
The following table illustrates the approximate hedge percentages of our projected fuel usage by quarter as of September 30, 2020, related to our outstanding fuel hedging contracts that were designated as cash flow hedges for accounting purposes.
 
Jet fuel call spread option agreements
Fourth Quarter 2020
25
%
Derivative instrument in statement of financial position and financial performance
The table below reflects quantitative information related to our derivative instruments and where these amounts are recorded in our financial statements (dollar amounts in millions):
 
September 30, 2020
 
December 31, 2019
Fuel derivatives
 
 
 
Asset fair value recorded in prepaid expense and other(1)
$
—

 
$
8

Longest remaining term (months)
3

 
6

Hedged volume (barrels, in thousands)
680

 
2,112

Estimated amount of existing losses (gains) expected to be reclassified into earnings in the next 12 months
$
2

 
$
(2
)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2020
 
2019
 
2020
 
2019
Fuel derivatives
 
 
 
 
 
 
 
Hedge effectiveness losses recognized in aircraft fuel expense
$
2

 
$
—

 
$
5

 
$
4

Losses on derivatives resulting from the discontinuance of hedge accounting recognized in interest income and other
1

 
—

 
6

 
—

Hedge losses (gains) on derivatives recognized in comprehensive income
—

 
2

 
11

 
1

Percentage of actual consumption economically hedged
27
%
 
—
%
 
25
%
 
5
%
(1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to the impact of collateral paid.