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Revenue Recognition
 6 Months Ended
Jun. 30, 2023
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, 2023 and 2022 (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Passenger revenue
Passenger travel$2,289 $2,162 $4,315 $3,651 
Loyalty revenue - air transportation171 140 326 253 
Other revenue
Loyalty revenue104 95 204 184 
Other revenue46 48 92 93 
Total revenue$2,610 $2,445 $4,937 $4,181 
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, 2023December 31, 2022
Air traffic liability - passenger travel$1,451 $1,291 
Air traffic liability - loyalty program (air transportation)990 1,000 
Deferred revenue (1)
511 530 
Total$2,952 $2,821 
(1) Deferred revenue is included within other accrued liabilities and other liabilities on our consolidated balance sheets.
During the six months ended June 30, 2023 and 2022, we recognized passenger revenue of $1.1 billion and $973 million, respectively, that was included in passenger travel liability at the beginning of the respective periods.
TrueBlue® points are combined into one homogeneous pool and are not separately identifiable. As such, the revenue is comprised of 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, 2023 and 2022 (in millions):
Balance at December 31, 2022$1,000 
TrueBlue® points redeemed
(327)
TrueBlue® points earned and sold
317 
Balance at June 30, 2023$990 
Balance at December 31, 2021$891 
TrueBlue® points redeemed
(253)
TrueBlue® points earned and sold
289 
Balance at June 30, 2022$927 
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.