Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

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 as of June 30, 2023, and December 31, 2022:

			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, 2023		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	8,702	$	8,702	$	—	$	—
Commercial paper	134		—		134		—
Certificates of deposit	22		—		22		—
Time deposits	300		—		300		—
Short-term investments:
Treasury bills	2,827		2,827		—		—
Certificates of deposit	194		—		194		—
Fuel derivatives:
Option contracts (b)	339		—		—		339
Interest rate derivatives (see Note 3)	14		—		14		—
Equity Securities	255		255		—		—
Total assets	$	12,787	$	11,784	$	664	$	339
Liabilities
Fuel derivatives:
Option contracts (b)	$	(23)	$	—	$	—	$	(23)

(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 3.

			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, 2022		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	9,040	$	9,040	$	—	$	—
Commercial paper	179		—		179		—
Certificates of deposit	23		—		23		—
Time deposits	250		—		250		—
Short-term investments:
Treasury bills	2,226		2,226		—		—
Certificates of deposit	124		—		124		—
Time deposits	450		—		450		—
Fuel derivatives:
Option contracts (b)	512		—		—		512
Interest rate derivatives (see Note 3)	14		—		14		—
Equity Securities	235		235		—		—
Total assets	$	13,053	$	11,501	$	1,040	$	512

(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 3.

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 six months ended June 30, 2023:

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)	Fuel derivatives
Balance at March 31, 2023	$	395
Total gains (losses) for the period
Included in earnings	(6)		(a)
Included in other comprehensive income	(165)
Purchases	137		(b)
Settlements	(45)
Balance at June 30, 2023	$	316
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, 2023	$	(6)	(a)
The amount of total losses for the period   included in other comprehensive income attributable to the   change in unrealized gains or losses relating   to assets still held at June 30, 2023	$	(152)

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

(b) The purchase of fuel derivatives is recorded on a gross basis 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, 2022	$	512
Total gains (losses) for the period
Included in earnings	(6)		(a)
Included in other comprehensive income	(328)
Purchases	241		(b)
Settlements	(103)
Balance at June 30, 2023	$	316
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, 2023	$	(6)	(a)
The amount of total losses for the period   included in other comprehensive income attributable to the   change in unrealized gains or losses relating   to assets still held at June 30, 2023	$	(265)

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

(b) The purchase of fuel derivatives is recorded on a gross basis 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 as of June 30, 2023:

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	Third quarter 2023	20-37%	30	%
			Fourth quarter 2023	29-35%	32	%
			2024	27-36%	29	%
			2025	28-29%	28	%
			2026	26-29%	28	%

(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, as of June 30, 2023, 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. All privately held debt agreements are categorized as Level 3. 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
1.25% Convertible Notes due 2025	1,611	1,861	Level 2
5.25% Notes due 2025	1,302	1,291	Level 2
3.00% Notes due 2026	300	276	Level 2
3.45% Notes due 2027	300	276	Level 2
5.125% Notes due 2027	1,727	1,715	Level 2
7.375% Debentures due 2027	112	118	Level 2
2.625% Notes due 2030	500	426	Level 2
1.000% PSP1 Loan due 2030	976	866	Level 3
1.000% PSP2 Loan due 2031	566	496	Level 3
1.000% PSP3 Loan due 2031	526	456	Level 3