FINANCIAL DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements [Abstract]

Volume of fuel hedging

	Fuel hedged as of
	December 31, 2012	Hedged commodity type
Period (by year)	(gallons in millions)(a)	as of December 31, 2012
2013	218	Brent crude oil
2014	1,171	WTI crude and Brent crude oil
2015	735	WTI crude and Brent crude oil
2016	697	Brent crude oil
2017	184	WTI crude oil
(a) The Company determines gallons hedged based on market prices and forward curves as of December 31, 2012. Due to the types of derivatives utilized by the Company, these volumes may vary significantly as market prices fluctuate.

Schedule of derivative instruments in statement of financial position, fair value

			Asset derivatives				Liability derivatives
	Balance Sheet	Fair value at		Fair value at		Fair value at		Fair value at
(in millions)	location	12/31/12		12/31/11		12/31/12		12/31/11
Derivatives designated as hedges*
Fuel derivative contracts (gross)	Other current assets	$	-	$	17	$	-	$	-
Fuel derivative contracts (gross)	Other assets		355		542		16		107
Fuel derivative contracts (gross)	Accrued liabilities		-		97		-		8
Fuel derivative contracts (gross)	Other noncurrent liabilities		-		93		-		24
Interest rate derivative contracts	Other assets		31		64		-		-
Interest rate derivative contracts	Accrued liabilities		-		2		-		-
Interest rate derivative contracts	Other noncurrent liabilities		-		-		126		132
Total derivatives designated as hedges		$	386	$	815	$	142	$	271
Derivatives not designated as hedges*
Fuel derivative contracts (gross)	Other current assets	$	375	$	124	$	327	$	58
Fuel derivative contracts (gross)	Other assets		233		26		351		272
Fuel derivative contracts (gross)	Accrued liabilities		10		326		60		687
Fuel derivative contracts (gross)	Other noncurrent liabilities		-		9		-		122
Total derivatives not designated as hedges		$	618	$	485	$	738	$	1,139
Total derivatives		$	1,004	$	1,300	$	880	$	1,410
* Represents the position of each trade before consideration of offsetting positions with each counterparty and does not include the impact of cash collateral deposits provided to or received from counterparties. See discussion of credit risk and collateral following in this Note.

Cash collateral deposits, due to/from third parties, and net unrealized gains/losses

		Balance Sheet	December 31,		December 31,
(in millions)		location	2012		2011
Cash collateral deposits provided		Offset against Other
	to counterparties - noncurrent	noncurrent liabilities	$	-	$	41
Cash collateral deposits provided		Offset against Accrued
	to counterparties - current	liabilities		-		185
Due to third parties for fuel contracts		Accrued liabilities		-		21
Receivable from third parties for		Accounts and other
	fuel contracts - current	receivables		-		3
Receivable from third parties for
	fuel contracts - noncurrent	Other assets		54		-
Prepaid settlement for
	fuel contracts - current	Prepaid expenses		15		-

Derivatives in cash flow hedging relationships

Derivatives in cash flow hedging relationships
		(Gain) loss							(Gain) loss					(Gain) loss
		recognized in AOCI on							reclassified from AOCI					recognized in income
		derivatives (effective							into income (effective					on derivatives
		portion)							portion)(a)						(ineffective portion)(b)
		Year ended						Year ended						Year ended
		December 31,						December 31,						December 31,
(in millions)		2012			2011			2012			2011			2012		2011
Fuel derivative
	contracts	$	(19)	*	$	44	*	$	101	*	$	111	*	$	43	$	35
Interest rate
	derivatives		1	*		32	*		-			-			-		-
Total		$	(18)		$	76		$	101		$	111		$	43	$	35
*Net of tax
(a) Amounts related to fuel derivative contracts and interest rate derivatives are included in Fuel and oil and Interest expense, respectively.
(b) Amounts are included in Other (gains) losses, net.

Derivatives not in cash flow hedging relationships

Derivatives not in cash flow hedging relationships
	(Gain) loss
	recognized in income on
	derivatives
	Year ended				Location of (gain) loss
	December 31,				recognized in income
(in millions)	2012		2011		on derivatives
Fuel derivative contracts	$	(264)	$	53	Other (gains) losses, net

Fair values of fuel derivatives, amounts posted as collateral, and collateral posting threshold amounts

		Counterparty (CP)
		A	B	C	D	E	Other(a)	Total
(in millions)
Fair value of fuel derivatives	$	16	$ 42	$ (11)	$ 18	$ 115	$ 39	$ 219
Cash collateral held (by) CP		-	-	-	-	-	-	-
Aircraft collateral pledged to CP		-	-	-	-	-	-	-
Letters of credit (LC)		-	-	-	-	-	-	-
Option to substitute LC for aircraft		(340) to	>(125)(d)	N/A	N/A	N/A
		(740)(d)
Option to substitute LC for cash		N/A	N/A	(100) to	N/A	>(50)(e)
				(150)(e)
If credit rating is investment
grade, fair value of fuel
derivative level at which:
Cash is provided to CP		(40) to (340)	0 to (125)	>(50)	>(75)	>(50)
		or >(740)	or >(625)
Cash is received from CP		>75	>150	>175(c)	>125(c)	>200
Aircraft or cash can be pledged
to CP as collateral		(340) to	(125) to	N/A	N/A	N/A
		(740)(d)	(625)(d)
If credit rating is non-investment
grade, fair value of fuel derivative
level at which:
Cash is provided to CP		(40) to (340)	0 to (125)	(b)	(b)	(b)
		or >(740)	or >(625)
Cash is received from CP		(b)	(b)	(b)	(b)	(b)
Aircraft can be pledged to CP
as collateral		(340) to	(125) to	N/A	N/A	N/A
		(740)	(625)
(a) Individual counterparties with fair value of fuel derivatives <$20 million.
(b) Cash collateral is provided at 100 percent of fair value of fuel derivative contracts.
(c) Thresholds may vary based on changes in credit ratings within investment grade.
(d) The Company has the option of providing cash, letters of credit, or pledging aircraft as collateral. No cash, letters of credit, or aircraft were pledged as collateral with such counterparties as of December 31, 2012.
(e) The Company has the option of providing cash or letters of credit as collateral. No cash or letters of credit were pledged as collateral with such counterparties as of December 31, 2012.