Financial Derivative Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instrument in statement of financial position and financial performance

The following table illustrates the approximate hedged percentages of our projected fuel usage by quarter related to our outstanding fuel hedging contracts that were designated as cash flow hedges for accounting purposes as of December 31, 2022. We did not have any fuel hedging contracts outstanding at December 31, 2021.


	Aircraft fuel call option spread agreements		Total
First Quarter 2023	8.8	%	8.8	%

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):


	Year Ended December 31,
	2022		2021
Fuel derivatives
Asset fair value recorded in prepaid expenses and other current assets(1)	$	3	$	—
Longest remaining term (months)	3		—
Hedged volume (barrels, in thousands)	450		—
Estimated amount of existing gains expected to be reclassified into earnings in the next 12 months	2		—


	Year Ended December 31,
	2022			2021			2020
Fuel derivatives
Hedge effectiveness losses recognized in aircraft fuel expense	$	7		$	—		$	7
Losses on derivatives resulting from the discontinuance of hedge accounting recognized in interest income and other	$	—		$	—		$	8
Hedge losses on derivatives recognized in comprehensive income	$	3		$	—		$	11
Percentage of actual consumption economically hedged	7		%	—		%	25		%

(1) Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid.