v3.26.3
SEGMENTS
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
Refinery Operations

The refinery operated by Monroe typically produces approximately 200,000 barrels of refined products (primarily gasoline, diesel and jet fuel) per day and operates for the benefit of the airline segment by providing jet fuel to the airline. Non-jet fuel production is sold to or exchanged with third parties, which enables us to procure additional jet fuel for consumption in our airline operations. The exchange agreements for non-jet fuel products ended during the second half of 2025.

Segment Reporting

Segment results are prepared based on our internal accounting methods described below, with reconciliations to consolidated amounts in accordance with GAAP. Our segments are not designed to measure operating income or loss directly related to the products and services included in each segment on a stand-alone basis.

Financial information by segment
(in millions)AirlineRefineryIntersegment Sales/OtherConsolidated
Three Months Ended September 30, 2026
Operating revenue$17,585 $2,967 $(366)
(1)
$20,186 
Airline salaries and related costs4,822 
Aircraft fuel and related costs4,351 
Refinery cost of goods sold(2)
2,842 
Depreciation and amortization673 28 
Other segment items(3)
6,252 130 
Operating income/(loss)(4)
1,487 (33)1,454 
Interest expense, net146 — — 146 
Other non-operating expense234 234 
Income/(loss) before income taxes1,107 (33)— 1,074 
Total assets, end of period82,741 3,347 (40)86,048 
Capital expenditures1,390 23 1,413 
Three Months Ended September 30, 2025
Operating revenue$15,197 $1,795 $(319)
(1)
$16,673 
Airline salaries and related costs4,443 
Aircraft fuel and related costs2,570 
Refinery cost of goods sold(2)
1,611 
Depreciation and amortization614 28 
Other segment items(3)
5,939 103 
Operating income(4)
1,631 53 1,684 
Interest expense, net171 1 (1)171 
Other non-operating income(264)(264)
Income before income taxes1,724 52 1 1,777 
Total assets, end of period76,961 2,680 (18)79,623 
Capital expenditures1,151 9 1,160 
(1)Represents sales to the airline segment and products delivered under our exchange agreements as discussed above. During the three months ended September 30, 2026 and 2025, sales to the airline segment were $366 million and $260 million, respectively. Sales to the airline segment represent transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price for jet fuel from the refinery by reference to the market index for the primary delivery location, which is New York Harbor.
(2)Refinery cost of goods sold is included within aircraft fuel and related taxes and refinery expense in our income statement.
(3)The nature of other segment items for the airline segment is shown on our income statement, and the refinery segment includes salaries and related costs, maintenance, utilities and other expenses.
(4)Refinery segment operating results are included within aircraft fuel and related taxes in our income statement.
Financial information by segment
(in millions)AirlineRefineryIntersegment Sales/OtherConsolidated
Nine Months Ended September 30, 2026
Operating revenue$49,451 $7,616 $(1,270)
(1)
$55,797 
Airline salaries and related costs14,124 
Aircraft fuel and related costs11,202 
Refinery cost of goods sold(2)
6,864 
Depreciation and amortization1,964 85 
Other segment items(3)
18,620 389 
Operating income(4)
3,541 278 3,819 
Interest expense/(income), net442 (5)5 442 
Other non-operating expense509 509 
Income before income taxes2,590 283 (5)2,868 
Capital expenditures4,014 57 4,071 
Nine Months Ended September 30, 2025
Operating revenue$43,681 $5,213 $(1,533)
(1)
$47,361 
Airline salaries and related costs12,928 
Aircraft fuel and related costs7,439 
Refinery cost of goods sold(2)
4,772 
Depreciation and amortization1,823 84 
Other segment items(3)
17,178 315 
Operating income(4)
4,313 42 4,355 
Interest expense, net521 3 (3)521 
Other non-operating income(838)(838)
Income before income taxes4,630 39 3 4,672 
Capital expenditures3,537 55 3,592 
(1)Represents sales to the airline segment and products delivered under our exchange agreements as discussed above. During the nine months ended September 30, 2026 and 2025, sales to the airline segment were $1.3 billion and $852 million, respectively. Sales to the airline segment represent transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price for jet fuel from the refinery by reference to the market index for the primary delivery location, which is New York Harbor.
(2)Refinery cost of goods sold is included within aircraft fuel and related taxes and refinery expense in our income statement.
(3)The nature of other segment items for the airline segment is shown on our income statement, and the refinery segment includes salaries and related costs, maintenance, utilities and other expenses.
(4)Refinery segment operating results are included within aircraft fuel and related taxes in our income statement.