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Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
Passenger Revenue
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)2021202020212020
Ticket$6,237 $1,634 $13,067 $8,712 
Loyalty travel awards544 143 1,213 731 
Travel-related services410 161 998 742 
Total passenger revenue$7,191 $1,938 $15,278 $10,185 

We recognized approximately $1.8 billion and $3.0 billion in passenger revenue during the nine months ended September 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 31, 2022. Additionally, with the exception of Basic Economy tickets, we eliminated change fees for tickets originating in North America and waived change fees for those originating outside of North America. We also implemented a waiver that allows Basic Economy tickets purchased for travel in 2021, which are normally non-changeable, to be changed without paying a fee regardless of origin or destination.

We estimate the value of tickets that will expire unused (“breakage”) and recognize revenue at the scheduled flight date. Our breakage estimates are primarily based on historical experience, ticket contract terms and customers’ travel behavior. Given the change in ticket validity terms made in 2021 and the uncertainty caused by the COVID-19 pandemic, our estimates of revenue that will be recognized from the air traffic liability for unused tickets may vary in future periods.

Other Revenue
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)2021202020212020
Refinery$872 $417 $2,189 $709 
Loyalty program453 343 1,260 1,086 
Ancillary businesses215 155 586 476 
Miscellaneous161 67 388 263 
Total other revenue$1,701 $982 $4,423 $2,534 

Refinery. This represents refinery sales to third parties, which are at or near cost; accordingly, the margin on these sales is de minimis.

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 nine months ended September 30, 2021 and 2020, total cash sales from marketing agreements related to our loyalty program were $2.9 billion and $2.2 billion, respectively, which are allocated to travel and other performance obligations.

Ancillary Businesses. Ancillary businesses includes aircraft maintenance services we provide to third parties and our vacation wholesale operations.
Current Activity of the Loyalty Program. Miles are combined in one homogeneous pool and are not separately identifiable. Therefore, 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 earned1,541 1,132 
Miles redeemed for air travel(1,213)(731)
Miles redeemed for non-air travel and other(54)(40)
Balance at September 30
$7,456 $7,089 

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 September 30,
Nine Months Ended September 30,
(in millions)2021202020212020
Domestic$5,759 $1,647 $12,517 $7,812 
Atlantic730 132 1,160 1,014 
Latin America564 97 1,313 879 
Pacific138 62 288 480 
Total$7,191 $1,938 $15,278 $10,185 

Operating revenue by geographic region
Operating Revenue
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)2021202020212020
Domestic$7,311 $2,585 $16,572 $10,116 
Atlantic954 240 1,688 1,353 
Latin America653 126 1,620 1,015 
Pacific236 111 549 638 
Total$9,154 $3,062 $20,429 $13,122