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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

The following are the significant categories comprising our reported operating revenues (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Passenger revenue:
Passenger travel	$	10,217	$	9,877	$	18,989	$	18,507
Loyalty revenue - travel ⁽¹⁾	794		797		1,680		1,647
Total passenger revenue	11,011		10,674		20,669		20,154
Cargo	221		261		439		488
Other:
Loyalty revenue - marketing services	594		582		1,172		1,152
Other revenue	134		126		264		250
Total other revenue	728		708		1,436		1,402
Total operating revenues	$	11,960	$	11,643	$	22,544	$	22,044


⁽¹⁾	Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions earned through travel and mileage credits sold to co-branded credit card and other partners.

The following is our total passenger revenue by geographic region (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Domestic	$	8,009	$	7,685	$	15,235	$	14,648
Latin America	1,241		1,284		2,612		2,729
Atlantic	1,407		1,298		2,080		1,967
Pacific	354		407		742		810
Total passenger revenue	$	11,011	$	10,674	$	20,669	$	20,154

Schedule of Contract Liabilities



	June 30, 2019		December 31, 2018
	(In millions)
Loyalty program liability	$	8,559	$	8,539
Air traffic liability	5,956		4,339
Total	$	14,515	$	12,878

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):



Balance at December 31, 2018	$	8,539
Deferral of revenue	1,806
Recognition of revenue ⁽¹⁾	(1,786		)
Balance at June 30, 2019 ⁽²⁾	$	8,559

⁽¹⁾

Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, 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.

⁽²⁾

Mileage credits can be redeemed at any time and do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. As of June 30, 2019, our current loyalty program liability was $3.3 billion and represents our current estimate of revenue expected to be recognized in the next twelve months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

American Airlines, Inc. [Member]

Entity Information [Line Items]

Disaggregation of Revenue

The following are the significant categories comprising American's reported operating revenues (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Passenger revenue:
Passenger travel	$	10,217	$	9,877	$	18,989	$	18,507
Loyalty revenue - travel ⁽¹⁾	794		797		1,680		1,647
Total passenger revenue	11,011		10,674		20,669		20,154
Cargo	221		261		439		488
Other:
Loyalty revenue - marketing services	594		582		1,172		1,152
Other revenue	132		123		259		244
Total other revenue	726		705		1,431		1,396
Total operating revenues	$	11,958	$	11,640	$	22,539	$	22,038


⁽¹⁾	Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions earned through travel and mileage credits sold to co-branded credit card and other partners.

The following is American's total passenger revenue by geographic region (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Domestic	$	8,009	$	7,685	$	15,235	$	14,648
Latin America	1,241		1,284		2,612		2,729
Atlantic	1,407		1,298		2,080		1,967
Pacific	354		407		742		810
Total passenger revenue	$	11,011	$	10,674	$	20,669	$	20,154

Schedule of Contract Liabilities



	June 30, 2019		December 31, 2018
	(In millions)
Loyalty program liability	$	8,559	$	8,539
Air traffic liability	5,956		4,339
Total	$	14,515	$	12,878



Balance at December 31, 2018	$	8,539
Deferral of revenue	1,806
Recognition of revenue ⁽¹⁾	(1,786		)
Balance at June 30, 2019 ⁽²⁾	$	8,559

⁽¹⁾

⁽²⁾

Mileage credits can be redeemed at any time and do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. As of June 30, 2019, American's current loyalty program liability was $3.3 billion and represents American's current estimate of revenue expected to be recognized in the next twelve months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.