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Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
As of December 31, 2025 and 2024, the Company’s air traffic liability balance was $361 million and $303 million, respectively, which includes amounts classified as other long-term liabilities on the Company’s consolidated balance sheets. During the year ended December 31, 2025, substantially all of the air traffic liability as of December 31, 2024 was recognized as passenger revenue within the Company’s consolidated statements of operations. Of the air traffic liability balances as of December 31, 2025 and 2024, $75 million and $56 million, respectively, was related to unearned membership fees.
During the years ended December 31, 2025, 2024 and 2023, the Company recognized $79 million, $37 million and $44 million of revenue related to expected and actual expiration of customer rights to book future travel, respectively, in passenger revenues within the Company’s consolidated statements of operations.
Operating revenues are comprised of passenger revenues, which includes fare and non-fare passenger revenues, and other revenues. Disaggregated operating revenues are as follows (in millions):
Year Ended December 31,
202520242023
Passenger revenues:
Fare$1,481 $1,435 $1,277 
Non-fare passenger revenues:
Service fees947 1,005 943 
Baggage746 862 880 
Seat selection297 264 281 
Other127 117 128 
Total non-fare passenger revenue2,117 2,248 2,232 
Total passenger revenues3,598 3,683 3,509 
Other revenues126 92 80 
Total operating revenues$3,724 $3,775 $3,589 
The Company is managed as a single business unit that provides air transportation for passengers. Operating revenues by principal geographic region, as defined by the U.S. Department of Transportation (the “DOT”), are as follows (in millions):
Year Ended December 31,
202520242023
Domestic$3,547 $3,565 $3,315 
Latin America177 210 274 
Total operating revenues$3,724 $3,775 $3,589 
The Company attributes operating revenues by geographic region based upon the origin and destination of each passenger flight segment. The Company’s tangible assets consist primarily of flight equipment, which are mobile across geographic markets. Accordingly, assets are not allocated to specific geographic regions.