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Revenue Recognition
6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
Passenger Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)2021202020212020
Ticket$4,553 $568 $6,830 $7,078 
Loyalty travel awards428 45 669 588 
Travel-related services358 65 588 581 
Total passenger revenue$5,339 $678 $8,087 $8,247 

We recognized approximately $1.4 billion and $2.9 billion in passenger revenue during the six months ended June 30, 2021 and 2020, respectively, that had been recorded in our air traffic liability balance at the beginning of those periods.

In the March 2021 quarter, we announced the extension of the validity of all passenger tickets and travel credits purchased or expiring in 2021 to December 2022. In addition, we waived change fees for all tickets purchased through April 30, 2021, as well as eliminated change fees for domestic and international tickets originating from North America with the exception of Basic Economy tickets.

Other Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)2021202020212020
Ancillary businesses and refinery$962 $390 $1,688 $613 
Loyalty program439 269 807 743 
Miscellaneous135 23 228 196 
Total other revenue$1,536 $682 $2,723 $1,552 

Ancillary Businesses and Refinery. Ancillary businesses and refinery includes refinery sales to third parties, aircraft maintenance services we provide to third parties and our vacation wholesale operations.

Loyalty Program. Our SkyMiles loyalty program allows customers to earn mileage credits ("miles") by flying on Delta, Delta Connection and other airlines that participate in the loyalty program. Customers can also earn miles through participating companies, such as credit card companies, hotels, car rental agencies and ridesharing companies, who purchase miles from us. Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. During the six months ended June 30, 2021 and 2020, total cash sales from marketing agreements related to our loyalty program were $1.8 billion and $1.5 billion, respectively, which are allocated to travel and other performance obligations.

Current Activity of the Loyalty Program. Miles are combined in one homogeneous pool and are not separately identifiable. Therefore, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period as well as miles that were issued during the period.

The table below presents the activity of the current and noncurrent loyalty program deferred revenue and includes miles earned through travel and miles sold to participating companies, which are primarily through marketing agreements.

Loyalty program activity
(in millions)20212020
Balance at January 1$7,182 $6,728 
Miles earned915 872 
Travel miles redeemed(669)(588)
Non-travel miles redeemed(27)(31)
Balance at June 30
$7,401 $6,981 

The timing of mile redemptions can vary widely; however, the majority of miles have historically been redeemed within two years of being earned.
Revenue by Geographic Region

Operating revenue for the airline segment is recognized in a specific geographic region based on the origin, flight path and destination of each flight segment. A significant portion of the refinery segment's revenues typically consists of fuel sales to support the airline, which is eliminated in the Condensed Consolidated Financial Statements. The remaining operating revenue for the refinery segment is included in the domestic region. Our passenger and operating revenue by geographic region is summarized in the following tables:

Passenger revenue by geographic region
Passenger Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)2021202020212020
Domestic$4,478 $564 $6,758 $6,165 
Atlantic288 64 430 882 
Latin America485 18 749 783 
Pacific88 32 150 417 
Total$5,339 $678 $8,087 $8,247 

Operating revenue by geographic region
Operating Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)2021202020212020
Domestic$5,894 $1,264 $9,262 $7,531 
Atlantic467 119 734 1,113 
Latin America586 26 967 889 
Pacific179 59 313 527 
Total$7,126 $1,468 $11,276 $10,060