FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements [Abstract]

Assets and liabilities measured at fair value on a recurring basis

				Fair value measurements at reporting date using:
				Quoted prices in		Significant		Significant
				active markets		other observable		unobservable
				for identical assets		inputs		inputs
Description		June 30, 2012		(Level 1)		(Level 2)		(Level 3)
Assets		(in millions)
Cash equivalents
	Cash equivalents (a)	$	909	$	909	$	-	$	-
	Commercial paper		150		-		150		-
	Certificates of deposit		24		-		24		-
Short-term investments:
	Treasury bills		1,954		1,954		-		-
	Certificates of deposit		219		-		219		-
Noncurrent investments (b)
	Auction rate securities		54		-		-		54
Interest rate derivatives (see Note 5)			69		-		69		-
Fuel derivatives:
	Swap contracts (c)		13		-		13		-
	Option contracts (c)		199		-		-		199
	Swap contracts (d)		173		-		173		-
	Option contracts (d)		447		-		-		447
Other available-for-sale securities			47		42		-		5
Total assets		$	4,258	$	2,905	$	648	$	705

Liabilities
Fuel derivatives:
	Swap contracts (c)	$	(16)	$	-	$	(16)	$	-
	Option contracts (c)		(128)		-		-		(128)
	Swap contracts (d)		(374)		-		(374)		-
	Option contracts (d)		(454)		-		-		(454)
Interest rate derivatives (see Note 5)			(128)		-		(128)		-
Deferred compensation			(126)		(126)		-		-
Total liabilities		$	(1,226)	$	(126)	$	(518)	$	(582)


(a) Cash equivalents is primarily composed of money market investments.
(b) Noncurrent investments are included in Other assets in the unaudited Condensed Consolidated Balance Sheet.
(c) In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net asset, and are also net of cash collateral received from counterparties. See Note 5.
(d) In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net liability, and are also net of cash collateral provided to counterparties. See Note 5.

				Fair value measurements at reporting date using:
				Quoted prices in		Significant		Significant
				active markets		other observable		unobservable
				for identical assets		inputs		inputs
Description		December 31, 2011		(Level 1)		(Level 2)		(Level 3)
Assets		(in millions)
Cash equivalents
	Cash equivalents (a)	$	774	$	774	$	-	$	-
	Commercial paper		48		-		48		-
	Certificates of deposit		7		-		7		-
Short-term investments:
	Treasury bills		2,014		2,014		-		-
	Certificates of deposit		221		-		221		-
	Commercial paper		80		-		80		-
Noncurrent investments (b)
	Auction rate securities		67		-		-		67
	Certificates of deposit		25		-		25		-
Interest rate derivatives (see Note 5)			66		-		66		-
Fuel derivatives:
	Option contracts (c)		709		-		-		709
	Swap contracts (d)		180		-		180		-
	Option contracts (d)		345		-		-		345
Other available-for-sale securities			43		38		-		5
Total assets		$	4,579	$	2,826	$	627	$	1,126

Liabilities
Fuel derivatives:
	Swap contracts (c)	$	(65)	$	-	$	(65)	$	-
	Option contracts (c)		(371)		-		-		(371)
	Swap contracts (d)		(576)		-		(576)		-
	Option contracts (d)		(266)		-		-		(266)
Interest rate derivatives (see Note 5)			(132)		-		(132)		-
Deferred Compensation			(121)		(121)		-		-
Total liabilities		$	(1,531)	$	(121)	$	(773)	$	(637)


(a) Cash equivalents is primarily composed of money market investments.
(b) Noncurrent investments are included in Other assets in the unaudited Condensed Consolidated Balance Sheet.
(c) In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net asset, and are also net of cash collateral received from counterparties. See Note 5.
(d) In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net liability, and are also net of cash collateral provided to counterparties. See Note 5.

Fair Value Measurements Using Significant Unobservable Inputs

		Fair value measurements using significant
		unobservable inputs (Level 3)
		Fuel		Auction rate			Other
(in millions)		derivatives		securities			securities		Total
Balance at March 31, 2012		$	562	$	68		$	5	$	635
Total gains (realized or unrealized)
	Included in earnings		(183)		-			-		(183)
	Included in other comprehensive income		(432)		(6)			-		(438)
Purchases			157		-			-		157
Sales			-		(8)			-		(8)
Settlements			(40)		-			-		(40)
Balance at June 30, 2012		$	64	$	54	(a)	$	5	$	123

The amount of total gains or (losses) for the
	period included in earnings attributable to the
	change in unrealized gains or losses relating to
	assets still held at June 30, 2012	$	(177)	$	-		$	-	$	(177)

(a) Included in Other assets in the unaudited Condensed Consolidated Balance Sheet.

		Fair value measurements using significant
		unobservable inputs (Level 3)
		Fuel		Auction rate			Other
(in millions)		derivatives		securities			securities		Total
Balance at December 31, 2011		$	417	$	67		$	5	$	489
Total gains or (losses) (realized or unrealized)
	Included in earnings		(4)		-			-		(4)
	Included in other comprehensive income		(228)		(5)			-		(233)
Purchases			329		-			-		329
Sales			(396)		(8)			-		(404)
Settlements			(54)		-			-		(54)
Balance at June 30, 2012		$	64	$	54	(a)	$	5	$	123

The amount of total gains or (losses) for the
	period included in earnings attributable to the
	change in unrealized gains or losses relating to
	assets still held at June 30, 2012	$	1	$	-		$	-	$	1

(a) Included in Other assets in the unaudited Condensed Consolidated Balance Sheet.

Fair Value Valuation Techniques

Quantitative information about Level 3 fair value measurements

	Valuation technique	Unobservable input	Period (by year)	Range
Fuel derivatives	Option model	Implied volatility	Third quarter 2012	14%-39%
			Fourth quarter 2012	22%-41%
			2013	23%-38%
			2014	22%-32%
			2015	22%-26%
			2016	20%-25%
Auction rate securities	Discounted cash flow	Time to principal recovery		6yrs-8yrs
		Illiquidity premium		2%-5%
		Counterparty credit spread		1%-3%

Fair value, by Balance Sheet Grouping

	Carrying		Estimated fair		Fair value level
(in millions)	value		value		hierarchy
French Credit Agreements due 2012	$	3	$	3		Level 3
5.25% Notes due 2014		371		393		Level 2
5.75% Notes due 2016		331		372		Level 2
5.25% Convertible Senior Notes due 2016		118		121		Level 2
5.125% Notes due 2017		333		363		Level 2
Fixed-rate 717 Aircraft Notes payable through 2017 - 10.39%		65		64		Level 2
French Credit Agreements due 2018		60		60		Level 3
Fixed-rate 737 Aircraft Notes payable through 2018 - 7.02%		39		40		Level 3
Term Loan Agreement due 2019 - 6.315%		255		255		Level 3
Term Loan Agreement due 2019 - 6.84%		100		108		Level 3
Term Loan Agreement due 2020 - 5.223%		469		418		Level 3
Floating-rate 737 Aircraft Notes payable through 2020 - 3.99%		577		551		Level 3
Pass Through Certificates due 2022		402		446		Level 2
7.375% Debentures due 2027		138		150		Level 2

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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