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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of impact of recently adopted accounting standards We recast certain prior period amounts to conform with the adoption of the revenue recognition and retirement benefits standards, as shown in the tables below.
 
Year Ended December 31, 2017
 
Year Ended December 31, 2016

(in millions, except per share data)
As Previously Reported
Adjustments
Current Presentation
 
As Previously Reported
Adjustments
Current Presentation
Income statement:
 
 
 
 
 
 
 
Passenger revenue
$
34,819

$
2,128

$
36,947

 
$
33,777

$
2,037

$
35,814

Cargo revenue
729

15

744

 
668

16

684

Other revenue
5,696

(2,249
)
3,447

 
5,194

(2,242
)
2,952

Total operating revenue
41,244

(106
)
41,138

 
39,639

(189
)
39,450

Operating expense
35,130

42

35,172

 
32,687

(233
)
32,454

Non-operating expense
(413
)
(53
)
(466
)
 
(316
)
(327
)
(643
)
Income tax provision
(2,124
)
(171
)
(2,295
)
 
(2,263
)
105

(2,158
)
Net income
$
3,577

$
(372
)
$
3,205

 
$
4,373

$
(178
)
$
4,195

Diluted earnings per share
$
4.95

$
(0.52
)
$
4.43

 
$
5.79

$
(0.24
)
$
5.55


 
December 31, 2017

(in millions)
As Previously Reported
Adjustments
Current Presentation
Balance sheet:
 
 
 
Deferred income taxes, net
$
935

$
419

$
1,354

Air traffic liability
4,888

(524
)
4,364

Loyalty program deferred revenue (current and noncurrent)
4,118

2,203

6,321

Other accrued and other noncurrent liabilities
3,969

120

4,089

Retained earnings
9,636

(1,380
)
8,256
Schedule of information related to derivative contracts The following table summarizes the risk hedged and the classification of related gains and losses on our income statement, by each type of derivative contract:
Derivative Type
 Hedged Risk
Classification of Gains and Losses
Fuel hedge contracts
Fluctuations in fuel prices
Aircraft fuel and related taxes
Interest rate contracts
Increases in interest rates
Interest expense, net
Foreign currency exchange contracts
Fluctuations in foreign currency exchange rates
Passenger revenue or non-operating expense (See Note 5)

The following table summarizes the accounting treatment of our derivative contracts:
 
Impact of Unrealized Gains and Losses
Accounting Designation
Effective Portion
Ineffective Portion
Not designated as hedges
Change in fair value(1) of hedge is recorded in earnings
Designated as cash flow hedges
Market adjustments are recorded in AOCI
Excess, if any, over effective portion of hedge is recorded in non-operating expense
Designated as fair value hedges
Market adjustments are recorded in long-term debt and finance leases
Excess, if any, over effective portion of hedge is recorded in non-operating expense

(1)
Including settled gains and losses as well as mark-to-market adjustments ("MTM adjustments").
Summary of property and equipment The following table summarizes our property and equipment:
 
 
December 31,
(in millions, except for estimated useful life)
Estimated Useful Life
2018
2017
Flight equipment
20-34 years
$
33,898

$
30,688

Ground property and equipment
3-40 years
8,028

7,665

Flight and ground equipment under finance leases
Shorter of lease term or estimated useful life
1,055

1,147

Advance payments for equipment
 
1,177

1,160

Less: accumulated depreciation and amortization(1)
 
(15,823
)
(14,097
)
Total property and equipment, net
 
$
28,335

$
26,563

(1) 
Includes accumulated amortization for flight and ground equipment under finance leases in the amount of $566 million and $668 million at December 31, 2018 and 2017, respectively.