Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020, and December 31, 2019:

			Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
Description	September 30, 2020		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	11,837	$	11,837	$	—	$	—
Commercial paper	135		—		135		—
Certificates of deposit	12		—		12		—
Time deposits	125		—		125		—
Short-term investments:
Treasury bills	1,800		1,800		—		—
Certificates of deposit	103		—		103		—
Time deposits	550		—		550		—
Fuel derivatives:
Option contracts (b)	109		—		—		109
Other available-for-sale securities	228		228		—		—
Total assets	$	14,899	$	13,865	$	925	$	109
Liabilities
Interest rate derivatives (see Note 4)	$	(39)	$	—	$	(39)	$	—

(a) Cash equivalents are primarily composed of money market investments.

(b) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as an asset. See Note 4.

			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, 2019		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	1,999	$	1,999	$	—	$	—
Commercial paper	535		—		535		—
Certificates of deposit	14		—		14		—
Short-term investments:
Treasury bills	1,196		1,196		—		—
Certificates of deposit	268		—		268		—
Time deposits	60		—		60		—
Interest rate derivatives (see Note 4)	2		—		2		—
Fuel derivatives:
Option contracts (b)	110		—		—		110
Other available-for-sale securities	197		197		—		—
Total assets	$	4,381	$	3,392	$	879	$	110
Liabilities
Interest rate derivatives (see Note 4)	$	(6)	$	—	$	(6)	$	—

(a) Cash equivalents are primarily composed of money market investments.

(b) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as a net asset. See Note 4.

Fair Value, Assets 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 nine months ended September 30, 2020:

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)	Fuel derivatives
Balance at June 30, 2020	$	107
Total gains (losses) for the period
Included in earnings	(23)		(a)
Included in other comprehensive income	1
Purchases	24		(b)
Balance at September 30, 2020	$	109
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 September 30, 2020	$	(21)	(a)
The amount of total losses for the period   included in other comprehensive loss attributable to the   change in unrealized gains or losses relating   to assets still held at September 30, 2020	$	(1)

(a) Included in Other (gains) losses, net, within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss).

(b) The purchase of fuel derivatives is recorded gross based on the structure of the derivative instrument and whether a contract with multiple derivatives was purchased as a single instrument or separate instruments.

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)	Fuel derivatives
Balance at December 31, 2019	$	110
Total losses for the period
Included in earnings	(40)		(a)
Included in other comprehensive income	(79)
Purchases	118		(b)
Balance at September 30, 2020	$	109
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 September 30, 2020	$	(29)	(a)
The amount of total losses for the period   included in other comprehensive loss attributable to the   change in unrealized gains or losses relating   to assets still held at September 30, 2020	$	(73)

(a) Included in Other (gains) losses, net, within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss).

(b) The purchase of fuel derivatives is recorded gross based on the structure of the derivative instrument and whether a contract with multiple derivatives was purchased as a single instrument or separate instruments.

Fair Value Valuation Techniques

The following table presents a range and weighted average of the unobservable inputs utilized in the fair value measurements of the Company’s fuel derivatives classified as Level 3 at September 30, 2020:

Quantitative information about Level 3 fair value measurements
	Valuation technique	Unobservable input	Period (by year)	Range	Weighted Average (a)
Fuel derivatives	Option model	Implied volatility	Fourth quarter 2020	27-47%	41	%
			2021	29-44%	33	%
			2022	26-30%	27	%
			Beyond 2022	23-26%	25	%

(a) Implied volatility weighted by the notional amount (barrels of fuel) that will settle in respective period.

Fair value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of the Company’s short-term and long-term debt (including current maturities), as well as the applicable fair value hierarchy tier, at September 30, 2020, are presented in the table below. The fair values of the Company’s publicly held long-term debt are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company has categorized these agreements as Level 2. Debt under four of the Company’s debt agreements is not publicly held. The Company has determined the estimated fair value of this debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes indicative pricing from counterparties and a discounted cash flow method to estimate the fair value of the Level 3 items.

(in millions)	Carrying value		Estimated fair value		Fair value level hierarchy
2.65% Notes due 2020	$	500	$	500	Level 2
2.75% Notes due 2022	300		308		Level 2
Pass Through Certificates due 2022 - 6.24%	137		140		Level 2
4.75% Notes due 2023	1,250		1,337		Level 2
1.25% Convertible Notes due 2025	1,927		3,013		Level 2
5.25% Notes due 2025	1,550		1,710		Level 2
Term Loan Agreement payable through 2025 - 1.62%	125		122		Level 3
3.00% Notes due 2026	300		301		Level 2
Term Loan Agreement payable through 2026 - 1.99%	169		162		Level 3
3.45% Notes due 2027	300		305		Level 2
5.125% Notes due 2027	2,000		2,183		Level 2
7.375% Debentures due 2027	120		142		Level 2
Term Loan Agreement payable through 2028 - 1.62%	190		179		Level 3
2.625% Notes due 2030	500		473		Level 2
1.000% Payroll Support Program Loan due 2030	976		811		Level 3