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REVENUE RECOGNITION
3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Passenger Revenue
Three Months Ended March 31,
(in millions)20242023
Ticket$9,833 $9,239 
Loyalty travel awards844 743 
Travel-related services454 429 
Passenger revenue$11,131 $10,411 

Ticket

We recognized approximately $3.9 billion in passenger revenue during both the three months ended March 31, 2024 and 2023 that had been recorded in our air traffic liability balance at the beginning of those periods.

Loyalty Travel Awards

Loyalty travel awards revenue is related to the redemption of mileage credits ("miles") for air travel. Our SkyMiles loyalty program allows customers to earn 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, retail, ridesharing, car rental and hotel 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 three months ended March 31, 2024 and 2023, total cash sales from marketing agreements related to our loyalty program were $1.8 billion and $1.7 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, 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 timing of mile redemptions can vary widely; however, the majority of miles have historically been redeemed within two years of being earned.
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)20242023
Balance at January 1$8,420 $7,882 
Miles earned1,021 999 
Miles redeemed for air travel(844)(743)
Miles redeemed for non-air travel and other(56)(40)
Balance at March 31
$8,541 $8,098 

Travel-Related Services

Travel-related services are primarily composed of services performed in conjunction with a passenger’s flight and include baggage fees, administrative fees and on-board sales.

Other Revenue
Three Months Ended March 31,
(in millions)20242023
Refinery$1,185 $916 
Loyalty program795 726 
Ancillary businesses180 231 
Miscellaneous279 266 
Other revenue$2,439 $2,139 

Refinery. This represents refinery sales to third parties. See Note 9, "Segments," for more information on revenue recognition within our refinery segment.

Loyalty Program. This relates to revenues from brand usage by third parties and other performance obligations embedded in miles sold, which are included within the total cash sales from marketing agreements, discussed above. This also includes the redemption of miles for non-air travel and other awards.

Ancillary Businesses. This includes aircraft maintenance services we provide to third parties and our vacation wholesale operations.

Miscellaneous. This is primarily composed of lounge access, including access provided to certain American Express cardholders, and codeshare revenues.
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
Three Months Ended March 31,
(in millions)20242023
Domestic$7,983 $7,594 
Atlantic1,305 1,244 
Latin America1,265 1,132 
Pacific578 441 
Total$11,131 $10,411 

Operating revenue by geographic region
Three Months Ended March 31,
(in millions)20242023
Domestic$10,031 $9,396 
Atlantic1,581 1,548 
Latin America1,442 1,280 
Pacific694 535 
Total$13,748 $12,759