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Revenue Recognition
 3 Months Ended
Mar. 31, 2021
Revenue Recognition [Abstract]  
Revenue from Contract with Customer [Text Block] Revenue Recognition
Passenger Revenue

Passenger revenue is the most significant category in our reported operating revenues, as outlined below:
Three Months Ended March 31,
(in thousands)20212020
Scheduled service$131,929 $197,261 
Ancillary air-related charges121,072 176,964 
Co-brand redemptions3,694 4,686 
Total passenger revenue$256,695 $378,911 

Sales of passenger tickets not yet flown are recorded in air traffic liability. Passenger revenue is recognized when transportation is provided or when ticket voucher breakage occurs, to the extent different from estimated breakage. As of March 31, 2021, approximately 55.5 percent of the air traffic liability balance was related to forward bookings, with the remaining 44.5 percent related to credit vouchers for future travel.

The normal contract term of passenger tickets is 12 months and revenue associated with future travel will principally be recognized within this time frame. $70.2 million of the $307.5 million that was recorded in the air traffic liability balance as of December 31, 2020 was recognized into passenger revenue during the three months ended March 31, 2021.

In 2020, the Company announced that credits issued for canceled travel beginning in January 2020 would have an extended
expiration date of two years from the original booking date. This policy continues in effect at the current time. This change
has been considered in estimating the future breakage rate, which represents the value of credit vouchers that are not
expected to be redeemed prior to their contractual expiration date.


Co-brand redemptions

In relation to the travel component of the co-branded credit card contract with Bank of America, the Company has a performance obligation to provide cardholders with points to be used for future travel award redemptions. Therefore, consideration received from Bank of America related to the travel component is deferred based on its relative selling price and is recognized into passenger revenue when the points are redeemed and the transportation is provided.

The following table presents the activity of the co-brand point liability for the periods indicated:
Three Months Ended March 31,
(in thousands)20212020
Balance at January 1$21,841 $15,613 
Points awarded (deferral of revenue)4,571 6,354 
Points redeemed (recognition of revenue)(3,694)(4,686)
Balance at March 31$22,718 $17,281 
As of March 31, 2021 and 2020, $10.3 million and $12.5 million, respectively, of the current points liability is reflected in accrued liabilities and represents the current estimate of revenue to be recognized in the next 12 months based on historical trends, with the remaining balance reflected in other noncurrent liabilities expected to be recognized into revenue in periods thereafter.