Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2013, and December 31, 2012:

				Fair value measurements at reporting date using:
				Quoted prices in active markets for identical assets			Significant other observable inputs			Significant unobservable inputs
Description	June 30, 2013			(Level 1)			(Level 2)			(Level 3)
Assets	(in millions)
Cash equivalents
Cash equivalents (a)	$	1,214		$	1,214		$	—		$	—
Commercial paper	260			—			260			—
Certificates of deposit	15			—			15			—
Short-term investments:
Treasury bills	1,660			1,660			—			—
Certificates of deposit	244			—			244			—
Noncurrent investments (b)
Auction rate securities	36			—			—			36
Interest rate derivatives (see Note 5)	22			—			22			—
Fuel derivatives:
Swap contracts (c)	60			—			60			—
Option contracts (c)	119			—			—			119
Swap contracts (d)	3			—			3			—
Option contracts (d)	220			—			—			220
Other available-for-sale securities	55			50			—			5
Total assets	$	3,908		$	2,924		$	604		$	380
Liabilities
Fuel derivatives:
Swap contracts (c)	$	(7	)	$	—		$	(7	)	$	—
Option contracts (c)	(119		)	—			—			(119		)
Swap contracts (d)	(72		)	—			(72		)	—
Option contracts (d)	(296		)	—			—			(296		)
Interest rate derivatives (see Note 5)	(90		)	—			(90		)	—
Deferred compensation	(143		)	(143		)	—			—
Total liabilities	$	(727	)	$	(143	)	$	(169	)	$	(415	)

(a) Cash equivalents are 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 provided to 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 active markets for identical assets			Significant other observable inputs			Significant unobservable inputs
Description	December 31, 2012			(Level 1)			(Level 2)			(Level 3)
Assets	(in millions)
Cash equivalents
Cash equivalents (a)	$	829		$	829		$	—		$	—
Commercial paper	170			—			170			—
Certificates of deposit	34			—			34			—
Eurodollar Time Deposits	80			—			80			—
Short-term investments:
Treasury bills	1,624			1,624			—			—
Certificates of deposit	233			—			233			—
Noncurrent investments (b)
Auction rate securities	36			—			—			36
Interest rate derivatives (see Note 5)	31			—			31			—
Fuel derivatives:
Swap contracts (c)	113			—			113			—
Option contracts (c)	850			—			—			850
Option contracts (d)	10			—			—			10
Other available-for-sale securities	49			44			—			5
Total assets	$	4,059		$	2,497		$	661		$	901
Liabilities
Fuel derivatives:
Swap contracts (c)	$	(57	)	$	—		$	(57	)	$	—
Option contracts (c)	(637		)	—			—			(637		)
Swap contracts (d)	(56		)	—			(56		)	—
Option contracts (d)	(4		)	—			—			(4		)
Interest rate derivatives (see Note 5)	(126		)	—			(126		)	—
Deferred Compensation	(137		)	(137		)	—			—
Total liabilities	$	(1,017	)	$	(137	)	$	(239	)	$	(641	)

(a) Cash equivalents are 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.  See Note 5.

(d) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as a net liability.  See Note 5.

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation

 The following tables present the Company’s activity for items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months endedJune 30, 2013:

	Fair value measurements using significant unobservable inputs (Level 3)
	Fuel				Auction rate				Other
(in millions)	derivatives				securities				securities		Total
Balance at March 31, 2013	$	199			$	38			$	5	$	242
Total gains or (losses) (realized or unrealized)
Included in earnings	(16		)		—				—		(16		)
Included in other comprehensive income	(299		)		(2		)		—		(301		)
Purchases	86			(a)	—				—		86
Sales	(70		)	(a)	—				—		(70		)
Settlements	24				—				—		24
Balance at June 30, 2013	$	(76	)		$	36		(b)	$	5	$	(35	)
The amount of total losses for the period   included in earnings attributable to the   change in unrealized gains or losses relating   to assets still held at June 30, 2013	$	(27	)		$	—			$	—	$	(27	)

(a) The purchase and sale of fuel derivatives are recorded gross based on the structure of the derivative instrument and

whether a contract with multiple derivatives is purchased as a single instrument or separate instruments.

(b) 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, 2012	$	219			$	36		$	5	$	260
Total gains or (losses) (realized or unrealized)
Included in earnings	11				—			—		11
Included in other comprehensive income	(345		)		—			—		(345		)
Purchases	275			(a)	—			—		275
Sales	(283		)	(a)	—			—		(283		)
Settlements	47				—			—		47
Balance at June 30, 2013	$	(76	)		$	36	(b)	$	5	$	(35	)
The amount of total losses for the period   included in earnings attributable to the   change in unrealized gains or losses relating   to assets still held at June 30, 2013	$	(74	)		$	—		$	—	$	(74	)

(a) The purchase and sale of fuel derivatives are recorded gross based on the structure of the derivative instrument and

whether a contract with multiple derivatives is purchased as a single instrument or separate instruments.

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

Fair Value Valuation Techniques

The following table presents a range of the unobservable inputs utilized in the fair value measurements of the Company’s assets and liabilities classified as Level 3 at June 30, 2013:

Quantitative information about Level 3 fair value measurements
	Valuation technique	Unobservable input	Period (by year)	Range
Fuel derivatives	Option model	Implied volatility	Third quarter 2013	12-26%
			Fourth quarter 2013	17-28%
			2014	16-28%
			2015	15-22%
			2016	16-21%
			2017	16-19%
Auction rate securities	Discounted cash flow	Time to principal recovery		5-8 years
		Illiquidity premium		3-4%
		Counterparty credit spread		1-3%

Fair value, by Balance Sheet Grouping

(in millions)	Carrying value	Estimated fair value	Fair value level hierarchy
5.25% Notes due 2014	362	376	Level 2
5.75% Notes due 2016	322	355	Level 2
5.25% Convertible Senior Notes due 2016	116	143	Level 2
5.125% Notes due 2017	326	347	Level 2
Fixed-rate 717 Aircraft Notes payable through 2017 - 10.38%	56	54	Level 2
French Credit Agreements due 2018 - 1.12%	51	51	Level 3
Fixed-rate 737 Aircraft Notes payable through 2018 - 7.02%	33	34	Level 3
Term Loan Agreement due 2019 - 6.315%	226	228	Level 3
Term Loan Agreement due 2019 - 6.84%	90	96	Level 3
Term Loan Agreement due 2020 - 5.223%	432	402	Level 3
Floating-rate 737 Aircraft Notes payable through 2020	359	352	Level 3
Pass Through Certificates due 2022 - 6.24%	385	440	Level 2
7.375% Debentures due 2027	137	145	Level 2