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Risk Management and Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2011
Risk Management and Financial Instruments (Tables) [Abstract]  
Gains (losses) related to fuel hedge contracts


Hedge Gains (Losses)


Gains (losses) recorded on the Condensed Consolidated Financial Statements related to our hedge contracts, including those previously designated as accounting hedges, are as follows:
 
Effective Portion Recognized in Other Comprehensive Income (Loss)
Effective Portion Reclassified from Accumulated Other Comprehensive Loss to Earnings
Ineffective Portion Recognized in Other (Expense) Income
(in millions)
2011
2010
2011
2010
2011
2010
Three Months Ended June 30
 
 
 
 
 
 
Fuel hedge swaps, call options and collars(1)
$
(154
)
$
(285
)
$
74


$
(14
)
$
—


$
(46
)
Interest rate swaps(2)
(11
)
(28
)
—


—


—


—


Foreign currency exchange forwards(3)
(33
)
(10
)
(11
)
(4
)
—


—


Total designated
$
(198
)
$
(323
)
$
63


$
(18
)
$
—


$
(46
)
Six Months Ended June 30
 
 
 
 
 
 
Fuel hedge swaps, call options and collars(1)
$
(66
)
$
(226
)
$
134


$
(26
)
$
(10
)
$
(37
)
Interest rate swaps(2)
7


(39
)
—


—


—


—


Foreign currency exchange forwards(3)
26


(8
)
(22
)
(9
)
—


—


Total designated
$
(33
)
$
(273
)
$
112


$
(35
)
$
(10
)
$
(37
)


(1) 
Gains (losses) on fuel hedge contracts reclassified from accumulated other comprehensive loss are recorded in aircraft fuel and related taxes. For the three and six months ended June 30, 2011, we recorded mark-to-market gains of $33 million and $80 million, respectively, related to contracts that were not designated as hedges in aircraft fuel and related taxes.
(2) 
Gains (losses) on interest rate swaps reclassified from accumulated other comprehensive loss are recorded in interest expense.
(3) 
Gains (losses) on foreign currency exchange contracts reclassified from accumulated other comprehensive loss are recorded in passenger revenue.
Estimated fair value asset (liability) position of hedge contracts
Hedge Position


The following table reflects the fair value asset (liability) positions of our hedge contracts:
  
(in millions, unless otherwise stated)
Notional Balance
Maturity Date
Prepaid Expenses
and Other Assets
Other Noncurrent Assets
Other Accrued Liabilities
Other Noncurrent Liabilities
Hedge Margin Receivable (Payable), net
As of June 30, 2011:
 
 
 
 
 
 
 
Designated as hedges
 
 
 
 
 
 
 
Interest rate swaps
$1,066
August 2011 -

May 2019
$
—


$
—


$
(31
)
$
(37
)
 
Foreign currency exchange forwards
154.9 billion Japanese yen; 333 million Canadian dollars
July 2011 - January 2014
1


3


(53
)
(21
)
 
Total designated
 
 
1


3


(84
)
(58
)
 
Not designated as hedges
 
 
 
 
 
 
 
Fuel hedge three-way collars, swaps, collars and call options
1.4 billion gallons - Heating oil, Brent, WTI and jet fuel
July 2011 -

June 2012
201


—


(66
)
—


 
Total derivative instruments
 
 
$
202


$
3


$
(150
)
$
(58
)
$
9


As of December 31, 2010:
 
 
 
 
 
 
 
Designated as hedges
 
 
 
 
 
 
 
Fuel hedge swaps, collars and call options
1.5 billion gallons - WTI
January 2011 -

February 2012
$
328


$
24


$
—


$
—


 
Interest rate swaps and call options
$1,143
August 2011 -

May 2019
—


—


(35
)
(39
)
 
Foreign currency exchange forwards
141.1 billion Japanese yen; 233 million Canadian dollars
January 2011 -

November 2013
—


—


(60
)
(36
)
 
Total designated
 
 
328


24


(95
)
(75
)
 
Not designated as hedges
 
 
 
 
 
 
 
Fuel hedge swaps
192 million gallons - WTl and crude oil products
January 2011 -

December 2011
27


14


(19
)
(8
)
 
Total derivative instruments
 
 
$
355


$
38


$
(114
)
$
(83
)
$
(119
)
Open fuel hedge position
As of June 30, 2011, our open fuel hedge position is as follows:
(in millions, unless otherwise stated)
Percentage of Projected Fuel Consumption Hedged
Fair Value at June 30, 2011
Six months ending December 31, 2011(1)
57
%
$
94


Year ending December 31, 2012
7


41


Total
 
$
135




(1) 
41% of projected fuel consumption is hedged using three-way collars.