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Revenue Recognition
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company categorizes the revenues received from contracts with its customers by revenue source as we believe it best depicts the nature, amount, timing, and uncertainty of our revenue and cash flow. The following table provides the revenues recognized by revenue source for the three and six months ended June 30, 2022 and 2021 (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Passenger revenue
Passenger travel$2,162 $1,322 $3,651 $1,945 
Loyalty revenue - air transportation140 66 253 113 
Other revenue
Loyalty revenue95 81 184 126 
Other revenue48 30 93 48 
Total revenue$2,445 $1,499 $4,181 $2,232 
TrueBlue® is our customer loyalty program designed to reward and recognize our customers. TrueBlue® points earned from ticket purchases are presented as a reduction to Passenger travel within Passenger revenue. Amounts presented in Loyalty revenue - air transportation represent the revenue recognized when TrueBlue® points have been redeemed and the travel has occurred. Loyalty revenue within Other revenue is primarily comprised of the non-air transportation elements of the sales of our TrueBlue® points.
Contract Liabilities
Our contract liabilities primarily consist of ticket sales for which transportation has not yet been provided, unused credits available to customers, and outstanding loyalty points available for redemption (in millions):
June 30, 2022December 31, 2021
Air traffic liability - passenger travel$1,690 $1,323 
Air traffic liability - loyalty program (air transportation)927 891 
Deferred revenue(1)
571 613 
Total3,188 2,827 
(1) Deferred revenue is included within other accrued liabilities and other liabilities on our consolidated balance sheets.
During the six months ended June 30, 2022 and 2021, we recognized passenger revenue of $973 million and $371 million respectively that was included in passenger travel liability at the beginning of the respective periods.
The Company elected the practical expedient that allows entities to not disclose the amount of the remaining transaction price and its expected timing of recognition for passenger tickets if the contract has an original expected duration of one year or less or if certain other conditions are met. We elected to apply this practical expedient to our contract liabilities relating to passenger travel and ancillary services as our tickets or any related passenger credits generally expire one year from the date of issuance.
TrueBlue® points are combined in one homogeneous pool and are not separately identifiable. As such, the revenue is comprised of the points that were part of the air traffic liability balance at the beginning of the period as well as points that were issued during the period.
The table below presents the activity of the current and non-current air traffic liability for our loyalty program, and includes points earned and sold to participating companies for the six months ended June 30, 2022 and 2021 (in millions):
Balance at December 31, 2021$891 
TrueBlue® points redeemed
(253)
TrueBlue® points earned and sold
289 
Balance at June 30, 2022$927 
Balance at December 31, 2020$733 
TrueBlue® points redeemed
(113)
TrueBlue® points earned and sold
186 
Balance at June 30, 2021$806 
The timing of our TrueBlue® point redemptions can vary; however, the majority of our points are redeemed within approximately three years of the date of issuance.