Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024, and December 31, 2023:

			Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
Description	March 31, 2024		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	8,119	$	8,119	$	—	$	—
Commercial paper	135		—		135		—
Certificates of deposit	13		—		13		—
Time deposits	100		—		100		—
Short-term investments:
Treasury bills	1,934		1,934		—		—
Certificates of deposit	211		—		211		—
Fuel derivatives:
Option contracts (b)	280		—		—		280
Equity Securities	286		286		—		—
Total assets	$	11,078	$	10,339	$	459	$	280
Liabilities
Fuel derivatives:
Option contracts (b)	$	(23)	$	—	$	—	$	(23)

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

(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, 2023		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	9,032	$	9,032	$	—	$	—
Commercial paper	135		—		135		—
Certificates of deposit	21		—		21		—
Time deposits	100		—		100		—
Short-term investments:
Treasury bills	1,983		1,983		—		—
Certificates of deposit	203		—		203		—
Fuel derivatives:
Option contracts (b)	223		—		—		223
Equity Securities	280		280		—		—
Total assets	$	11,977	$	11,295	$	459	$	223

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

(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 table presents the

Company’s activity for items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2024:

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)	Fuel derivatives
Balance as of December 31, 2023	$	223
Total gains (losses) for the period
Included in other comprehensive loss	1
Purchases	51		(b)
Settlements	(18)
Balance as of March 31, 2024	$	257
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 as of March 31, 2024	$	1	(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 as of March 31, 2024	$	4

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

(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 March 31, 2024:

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	Second quarter 2024	14-33%	24	%
			Third quarter 2024	21-31%	25	%
			Fourth quarter 2024	22-30%	25	%
			2025	21-23%	22	%
			2026	21-22%	21	%

(a) Implied volatility weighted by the notional amount (barrels of underlying commodity) 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 March 31, 2024, 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
5.25% Notes due 2025	1,302	1,298	Level 2
1.25% Convertible Notes due 2025	1,611	1,630	Level 2
3.00% Notes due 2026	300	283	Level 2
7.375% Debentures due 2027	110	114	Level 2
3.45% Notes due 2027	300	283	Level 2
5.125% Notes due 2027	1,727	1,725	Level 2
2.625% due 2030	500	435	Level 2
1.000% Payroll Support Program Loan due 2030 (a)	976	953	Level 3
1.000% Payroll Support Program Loan due 2031 (a)	566	532	Level 3
1.000% Payroll Support Program Loan due 2031 (a)	526	489	Level 3

(a) The interest rate will change to Secured Overnight Financing Rate plus two percent on the fifth anniversary of the loans.