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Revenue Recognition
 9 Months Ended
Sep. 30, 2025
Revenue Recognition [Abstract]  
Revenue Recognition Revenue Recognition
Passenger Revenue

Passenger revenue is the most significant category in the Company's reported operating revenues, as outlined below:
Three Months Ended September 30,
Nine Months Ended September 30,
(in thousands)2025202420252024
Scheduled service$177,194 $206,447 $707,771 $769,041 
Ancillary air-related charges295,548 271,150 963,700 853,333 
Loyalty redemptions21,402 11,392 57,331 41,049 
Total passenger revenue$494,144 $488,989 $1,728,802 $1,663,423 

Sales of passenger tickets not yet flown are recorded in air traffic liability. Passenger revenue is recognized when transportation is provided. As of September 30, 2025, the air traffic liability balance was $388.3 million, of which approximately $347.1 million was related to forward bookings, with the remaining $41.2 million related to credit vouchers for future travel.

The normal contract term of passenger tickets is 12 months and passenger revenue associated with future travel will principally be recognized within this time frame. Of the $370.9 million that was recorded in the air traffic liability balance as of December 31, 2024, substantially all was recognized into passenger revenue during the nine months ended September 30, 2025.

The Company periodically evaluates the estimated amount of credit vouchers expected to expire unused and any adjustment is removed from air traffic liability and included primarily in passenger revenue in the period in which the evaluation is complete.

Loyalty redemptions

In relation to the travel component of the Allways Rewards® co-brand credit card contract, the Company has a performance obligation to cardholders with future travel award redemptions at the airline. Therefore, consideration received 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 underlying service is provided. Similarly, in relation to the Allways Rewards loyalty program, points earned through the program are deferred based on the stand-alone selling price and recognized into passenger revenue when the points are redeemed and the underlying service is provided.

The following table presents the activity of the co-branded credit card and the loyalty program as of the dates indicated:
Nine Months Ended September 30,
(in thousands)20252024
Balance at January 1$80,711 $70,813 
Points awarded (deferral of revenue)58,560 50,704 
Points redeemed (recognition of revenue)(1)
(57,280)(41,074)
Balance at September 30(2)
$81,991 $80,443 
(1) Points are combined in one homogenous pool and are not separately identifiable. Revenue from points redeemed includes both points that were part of the loyalty program liability at the beginning of the period, as well as points that were issued during the period.
(2) The current portion of the loyalty program liability represents the estimate of revenue to be recognized in the next 12 months based on historical trends, with the remaining balance reflected in noncurrent liabilities expected to be recognized into revenue in periods thereafter.

Resort Revenue

The Company's resort revenues for the three and nine months ended September 30, 2025 are set forth in the table below:

Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
Rooms$4,009 $5,190 $28,172 $21,800 
Food and beverage3,553 5,929 21,280 24,344 
Other1,796 1,950 11,228 7,624 
Total resort revenue$9,358 $13,069 $60,680 $53,768 

Revenue from banquets, golf, retail, and spa services is included in other resort revenue. Resort revenue is recognized as the underlying services or goods are provided, with minimal timing differences between service delivery and payment. Following the September 4, 2025 sale of Sunseeker Resort, there are no advanced deposit liabilities or guest receivables in the Company’s September 30, 2025 balance sheet.