COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jun. 30, 2021

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) includes changes in the fair value of certain financial derivative instruments that qualify for hedge accounting, unrealized gains and losses on certain investments, and actuarial gains/losses arising from the Company’s postretirement benefit obligation. The differences between Net income (loss) and Comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020 were as follows:

	Three months ended June 30,
(in millions)	2021		2020
NET INCOME (LOSS)	$	348	$	(915)
Unrealized gain on fuel derivative instruments, net of   deferred taxes of $61 and $9	201		30
Unrealized gain (loss) on interest rate derivative instruments, net of   deferred taxes of ($1) and $—	(5)		1
Other, net of deferred taxes of $— and $8	—		25
Total other comprehensive income	$	196	$	56
COMPREHENSIVE INCOME (LOSS)	$	544	$	(859)

	Six months ended June 30,
(in millions)	2021		2020
NET INCOME (LOSS)	$	463	$	(1,009)
Unrealized gain (loss) on fuel derivative instruments, net of   deferred taxes of $92 and ($10)	301		(35)
Unrealized gain (loss) on interest rate derivative instruments, net of   deferred taxes of $1 and ($10)	6		(31)
Other, net of deferred taxes of ($13) and ($1)	(47)		(3)
Total other comprehensive income (loss)	$	260	$	(69)
COMPREHENSIVE INCOME (LOSS)	$	723	$	(1,078)

A rollforward of the amounts included in AOCI, net of taxes, is shown below for the three and six months ended June 30, 2021:

(in millions)	Fuel derivatives		Interest rate derivatives		Defined benefit plan items		Deferred tax		Accumulated other comprehensive income (loss)
Balance at March 31, 2021	$	12	$	(53)	$	(43)	$	24	$	(60)
Changes in fair value	250		(7)		—		(57)		186
Reclassification to earnings	12		1		—		(3)		10
Balance at June 30, 2021	$	274	$	(59)	$	(43)	$	(36)	$	136

(in millions)	Fuel derivatives		Interest rate derivatives		Defined benefit plan items		Other			Deferred tax		Accumulated other comprehensive income (loss)
Balance at December 31, 2020	$	(119)	$	(66)	$	(43)	$	91		$	32	$	(105)
Cumulative effect of adopting ASU 2016-01 as of January 1, 2018 (See Note 1)	—		—		—		(31)			12		(19)
Changes in fair value	359		5		—		—			(85)		279
Reclassification to earnings	34		2		—		(60)		(a)	5		(19)
Balance at June 30, 2021	$	274	$	(59)	$	(43)	$	—		$	(36)	$	136

(a) Investment gains related to prior periods that were reclassified from AOCI into Other (gains) losses, net. See Note 1.

The following tables illustrate the significant amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2021:

Three months ended June 30, 2021
(in millions)	Amounts reclassified from AOCI		Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss)
AOCI components
Unrealized loss on fuel derivative instruments	$	12	Fuel and oil expense
	3		Less: Tax expense
	$	9	Net of tax
Unrealized loss on interest rate derivative instruments	$	1	Other operating expenses
	—		Less: Tax expense
	$	1	Net of tax
Total reclassifications for the period	$	10	Net of tax

Six months ended June 30, 2021
(in millions)	Amounts reclassified from AOCI		Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss)
AOCI components
Unrealized loss on fuel derivative instruments	$	28	Fuel and oil expense
	6		Other (gains) losses, net
	8		Less: Tax expense
	$	26	Net of tax
Unrealized loss on interest rate derivative instruments	$	2	Interest expense
	—		Less: Tax expense
	$	2	Net of tax
Unrealized gain on deferred compensation plan investment (See Note 1)	$	(60)	Other (gains) losses, net
	(13)		Less: Tax expense
	$	(47)	Net of tax
Total reclassifications for the period	$	(19)	Net of tax