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Long-term Debt, Short-term Borrowings and Finance Lease Obligations (Tables)
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Schedule of long term debt
The carrying amounts and estimated fair values of our long-term debt, net of debt acquisition costs, at March 31, 2023 and December 31, 2022 were as follows (in millions):
March 31, 2023December 31, 2022
Carrying Value
Estimated Fair Value(2)
Carrying Value
Estimated Fair Value(2)
Public Debt
Fixed rate special facility bonds, due through 2036$42 $43 $42 $43 
Fixed rate enhanced equipment notes:
  2019-1 Series AA, due through 2032505 360 504 345 
  2019-1 Series A, due through 2028157 128 157 124 
2019-1 Series B, due through 202782 88 82 87 
2020-1 Series A, due through 2032547 473 546 457 
2020-1 Series B, due through 2028135 144 135 142 
Non-Public Debt
Fixed rate enhanced equipment notes, due through 2023— — 61 60 
Fixed rate equipment notes, due through 2028409 343 447 422 
Floating rate equipment notes, due through 202848 43 56 49 
Sale-leaseback transactions, due through 2034378 295 341 329 
Unsecured CARES Act Payroll Support Program loan, due through 2030259 130 259 126 
Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031144 70 144 68 
Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031132 65 132 62 
Convertible senior notes due 2026740 551 739 534 
Total(1)
$3,578 $2,733 $3,645 $2,848 
(1) Total excludes finance lease obligations of $1 million and $2 million at March 31, 2023 and December 31, 2022, respectively.
(2) The estimated fair values of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair value of our non-public debt are estimated using a discounted cash flow analysis based on our borrowing rates for instruments with similar terms and therefore classified as Level 3 in the fair value hierarchy. Refer to Note 7 for an explanation of the fair value hierarchy structure.
We have financed certain aircraft with Enhanced Equipment Trust Certificates ("EETCs"). One of the benefits of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes, which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity ("VIE"), as defined in Topic 810, Consolidation of the FASB Codification, and must be considered for consolidation in our financial statements. Our assessment of our EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust structure is to enhance the credit worthiness of our debt obligation through certain bankruptcy protection provisions and liquidity facilities, and also to lower our total borrowing cost. We concluded that we are not the primary beneficiary in these trusts because our involvement in them is limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us, and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our financial statements.
Schedule of Maturities of Long-Term Debt At March 31, 2023, scheduled maturities of our long-term debt and finance lease obligations were as follows (in millions):
YearTotal
Remainder of 2023$216 
2024237 
2025204 
2026943 
2027189 
2028 and thereafter1,790 
Total$3,579