FINANCIAL DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2012

Jun. 30, 2012

Notes to Financial Statements [Abstract]

Volume of fuel hedging

	Fuel hedged as of
	June 30, 2012	Hedged commodity type
Period (by year)	(gallons in millions)(a)	as of June 30, 2012
Remainder of 2012	427	WTI crude oil
2013	1,119	WTI crude and Brent crude oil
2014	1,171	WTI crude and Brent crude oil
2015	609	WTI crude and Brent crude oil
2016	277	Brent crude oil
(a) The Company determines gallons hedged based on market prices and forward curves as of June 30, 2012. Due to the types of derivatives utilized by the Company, these volumes may vary significantly as market prices fluctuate.

Schedule of derivative instruments in statement of financial position, fair value

			Asset derivatives				Liability derivatives
	Balance Sheet	Fair value at		Fair value at		Fair value at		Fair value at
(in millions)	location	06/30/12		12/31/11		06/30/12		12/31/11
Derivatives designated as hedges*
Fuel derivative contracts (gross)	Other current assets	$	20	$	17	$	7	$	-
Fuel derivative contracts (gross)	Other assets		47		542		8		107
Fuel derivative contracts (gross)	Accrued liabilities		72		97		26		8
Fuel derivative contracts (gross)	Other noncurrent liabilities		154		93		49		24
Interest rate derivative contracts	Other assets		69		64		-		-
Interest rate derivative contracts	Accrued liabilities		-		2		-		-
Interest rate derivative contracts	Other noncurrent liabilities		-		-		128		132
Total derivatives designated as hedges		$	362	$	815	$	218	$	271
Derivatives not designated as hedges*
Fuel derivative contracts (gross)	Other current assets	$	53	$	124	$	30	$	58
Fuel derivative contracts (gross)	Other assets		93		26		100		272
Fuel derivative contracts (gross)	Accrued liabilities		229		326		442		687
Fuel derivative contracts (gross)	Other noncurrent liabilities		164		9		310		122
Total derivatives not designated as hedges		$	539	$	485	$	882	$	1,139
Total derivatives		$	901	$	1,300	$	1,100	$	1,410
* Represents the position of each trade before consideration of offsetting positions with each counterparty and does not include the impact of cash collateral deposits provided to or received from counterparties. See discussion of credit risk and collateral following in this Note.

Cash collateral deposits, due to/from third parties, and net unrealized gains/losses

		Balance Sheet	June 30,		December 31,
(in millions)		location	2012		2011
Cash collateral deposits provided		Offset against Other
	to counterparties - noncurrent	noncurrent liabilities	$	32	$	41
Cash collateral deposits provided		Offset against Accrued
	to counterparties - current	liabilities		135		185
Cash collateral deposits provided		Accounts and other
	to counterparties - current	receivables		98		-
Due to third parties for fuel contracts		Accrued liabilities		8		21
Receivable from third parties for		Accounts and other
	fuel contracts - current	receivables		-		3
Receivable from third parties for
	fuel contracts - noncurrent	Other assets		54		-

Derivatives in cash flow hedging relationships

Derivatives in cash flow hedging relationships
		(Gain) loss							(Gain) loss					(Gain) loss
		recognized in AOCI on							reclassified from AOCI					recognized in income
		derivatives (effective							into income (effective					on derivatives
		portion)							portion)(a)						(ineffective portion)(b)
		Three months ended						Three months ended						Three months ended
		June 30,						June 30,						June 30,
(in millions)		2012			2011			2012			2011			2012		2011
Fuel derivative
	contracts	$	279	*	$	196	*	$	28	*	$	18	*	$	8	$	8
Interest rate
	derivatives		8	*		11	*		-			-			-		-
Total		$	287		$	207		$	28		$	18		$	8	$	8
*Net of tax
(a) Amounts related to fuel derivative contracts and interest rate derivatives are included in Fuel and oil and Interest expense, respectively.
(b) Amounts are included in Other (gains) losses, net.

Derivatives in cash flow hedging relationships
		(Gain) loss							(Gain) loss					(Gain) loss
		recognized in AOCI on							reclassified from AOCI					recognized in income
		derivatives (effective							into income (effective					on derivatives
		portion)							portion)(a)						(ineffective portion)(b)
		Six months ended						Six months ended						Six months ended
		June 30,						June 30,						June 30,
(in millions)		2012			2011			2012			2011			2012		2011
Fuel derivative
	contracts	$	143	*	$	(119)	*	$	51	*	$	34	*	$	40	$	42
Interest rate
	derivatives		2	*		4	*		-			-			-		-
Total		$	145		$	(115)		$	51		$	34		$	40	$	42
*Net of tax
(a) Amounts related to fuel derivative contracts and interest rate derivatives are included in Fuel and oil and Interest expense, respectively.
(b) Amounts are included in Other (gains) losses, net.

Derivatives not in cash flow hedging relationships

Derivatives not in cash flow hedging relationships
	(Gain) loss
	recognized in income on
	derivatives
	Three months ended				Location of (gain) loss
	June 30,				recognized in income
(in millions)	2012		2011		on derivatives
Fuel derivative contracts	$	40	$	(150)	Other (gains) losses, net

Derivatives not in cash flow hedging relationships
	(Gain) loss
	recognized in income on
	derivatives
	Six months ended				Location of (gain) loss
	June 30,				recognized in income
(in millions)	2012		2011		on derivatives
Fuel derivative contracts	$	(169)	$	(155)	Other (gains) losses, net

Fair values of fuel derivatives, amounts posted as collateral, and collateral posting threshold amounts

		Counterparty (CP)
		A	B	C	D	E	Other(a)	Total
(in millions)
Fair value of fuel derivatives	$	(59)	$(72)	$(65)	$(11)	$64	$3	$ (140)
Cash collateral held from (by) CP		(100)	(129)	(36)	-	-	-	(265)
Aircraft collateral pledged to CP
Letters of credit (LC)
Option to substitute LC for aircraft		(340) to	>(125)(d)	N/A	N/A	N/A
		(740)(d)
Option to substitute LC for cash		N/A	N/A	(100) to	N/A	>(50)(e)
				(150)(e)
If credit rating is investment
grade, fair value of fuel
derivative level at which:
Cash is provided to CP		(40) to (340)	0 to (125)	>(50)	>(75)	>(50)
		or >(740)	or >(625)
Cash is received from CP		>75	>150	>200(c)	>125(c)	>250
Aircraft or cash can be pledged
to CP as collateral		(340) to	(125) to	N/A	N/A	N/A
		(740)(d)	(625)(d)
If credit rating is non-investment
grade, fair value of fuel derivative
level at which:
Cash is provided to CP		(40) to (340)	0 to (125)	(b)	(b)	(b)
		or >(740)	or >(625)
Cash is received from CP		(b)	(b)	(b)	(b)	(b)
Aircraft can be pledged to CP
as collateral		(340) to	(125) to	N/A	N/A	N/A
		(740)	(625)
(a) Individual counterparties with fair value of fuel derivatives <$15 million.
(b) Cash collateral is provided at 100 percent of fair value of fuel derivative contracts.
(c) Thresholds may vary based on changes in credit ratings within investment grade.
(d) The Company has the option of providing cash, letters of credit, or pledging aircraft as collateral. No letters of credit or aircraft were pledged as collateral with such counterparties as of June 30, 2012.
(e) The Company has the option of providing cash or letters of credit as collateral. No letters of credit were pledged as collateral with such counterparties as of June 30, 2012.