v3.25.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company categorizes revenue recognized 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 revenue recognized by revenue source for the three and six months ended June 30, 2025 and 2024 (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Passenger revenue
Passenger travel$1,998 $2,085 $3,792 $3,972 
Loyalty revenue - air transportation181 180 357 347 
Other revenue
Loyalty revenue128 114 249 221 
Other revenue49 49 98 97 
Total operating revenue$2,356 $2,428 $4,496 $4,637 
TrueBlue® is our customer loyalty program designed to reward and recognize our customers. TrueBlue® points earned from ticket purchases are recorded as a reduction to Passenger travel within passenger revenue. Amounts presented in Loyalty revenue - air transportation represent revenue recognized when TrueBlue® points have been redeemed and travel has occurred. Loyalty revenue within other revenue primarily consists of the non-air transportation elements from the sale of 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, 2025December 31, 2024
Air traffic liability - passenger travel$1,180 $1,073 
Air traffic liability - loyalty program (air transportation)1,131 1,125 
Deferred revenue - passenger travel and loyalty program travel (1)
364 389 
Deferred revenue - other (2)
28 27 
Total$2,703 $2,614 
    
(1) Included within other accrued liabilities and other liabilities on our consolidated balance sheets.
(2) Included within air traffic liability on our consolidated balance sheets.
During the six months ended June 30, 2025 and 2024, we recognized passenger revenue of $1.0 billion and $1.1 billion, respectively, which was included in passenger travel liability at the beginning of the respective periods.
The Company elected the practical expedient that allows entities to not disclose the amount of the remaining transaction price and its expected timing of recognition for passenger tickets if the contract has an original expected duration of one year or less or if certain other conditions are met. We elected to apply this practical expedient to our contract liabilities relating to passenger travel and ancillary services as our tickets or any related passenger credits expire generally one year from the date of booking.
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, 2025 and 2024 (in millions):
Balance at December 31, 2024$1,125 
TrueBlue® points redeemed passenger
(357)
TrueBlue® points redeemed other
(18)
TrueBlue® points earned and sold
381 
Balance at June 30, 2025$1,131 
Balance at December 31, 2023$1,072 
TrueBlue® points redeemed passenger
(347)
TrueBlue® points redeemed other
(14)
TrueBlue® points earned and sold
361 
Balance at June 30, 2024$1,072 
The timing of our TrueBlue® point redemptions can vary; however, the majority of points are redeemed within approximately two years of the date of issuance.