Southwest Airlines (LUV) 10-Q 28 Apr 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	Apr. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	1-7259
Entity Registrant Name	SOUTHWEST AIRLINES CO.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-1563240
Entity Address, Address Line One	P.O. Box 36611
Entity Address, City or Town	Dallas,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75235-1611
City Area Code	214
Local Phone Number	792-4000
Title of 12(b) Security	Common Stock ($1.00 par value)
Trading Symbol	LUV
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		595,073,046
Entity Central Index Key	0000092380
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 8,359	$ 9,492
Short-term investments	3,315	2,800
Accounts and other receivables	1,250	1,040
Inventories of parts and supplies, at cost	736	790
Prepaid expenses and other current assets	614	686
Total current assets	14,274	14,808
Property and equipment, at cost:
Flight equipment	24,577	23,725
Ground property and equipment	7,008	6,855
Deposits on flight equipment purchase contracts	283	376
Assets constructed for others	34	28
Property and equipment, at cost	31,902	30,984
Less allowance for depreciation and amortization	13,878	13,642
Property and equipment, net	18,024	17,342
Goodwill	970	970
Operating lease right-of-use assets	1,380	1,394
Other assets	898	855
Total assets	35,546	35,369
Current liabilities:
Accounts payable	1,729	2,004
Accrued liabilities	2,118	2,043
Current operating lease liabilities	233	225
Air traffic liability	7,217	6,064
Current maturities of long-term debt	32	42
Total current liabilities	11,329	10,378
Long-term debt less current maturities	7,999	8,046
Air traffic liability - noncurrent	1,980	2,186
Deferred income taxes	1,888	1,985
Noncurrent operating lease liabilities	1,112	1,118
Other noncurrent liabilities	936	969
Stockholders' equity:
Common stock	888	888
Capital in excess of par value	4,058	4,037
Retained earnings	15,995	16,261
Accumulated other comprehensive income	197	344
Treasury stock, at cost	(10,836)	(10,843)
Total stockholders' equity	10,302	10,687
Total liabilities and stockholders' equity	$ 35,546	$ 35,369

Condensed Consolidated Statemen

Condensed Consolidated Statement of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
OPERATING REVENUES:
Total operating revenues	$ 5,706	$ 4,694
OPERATING EXPENSES, NET:
Salaries, wages, and benefits	2,478	2,229
Fuel and oil	1,547	1,004
Maintenance materials and repairs	240	211
Landing fees and airport rentals	408	346
Depreciation and amortization	365	324
Other operating expenses	952	731
Total operating expenses, net	5,990	4,845
OPERATING LOSS	(284)	(151)
OTHER EXPENSES (INCOME):
Interest expense	66	93
Capitalized interest	(6)	(9)
Interest income	(125)	(3)
Loss on extinguishment of debt	0	72
Other (gains) losses, net	(14)	72
Total other expenses (income)	(79)	225
LOSS BEFORE INCOME TAXES	(205)	(376)
BENEFIT FOR INCOME TAXES	(46)	(98)
NET LOSS	$ (159)	$ (278)
Net income per share, basic (in USD per share)	$ (0.27)	$ (0.47)
Net income per share, diluted (in USD per share)	$ (0.27)	$ (0.47)
COMPREHENSIVE INCOME (LOSS)	$ (306)	$ 225
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	594	592
Diluted (in shares)	594	592
Passenger
OPERATING REVENUES:
Total operating revenues	$ 5,105	$ 4,135
Freight
OPERATING REVENUES:
Total operating revenues	41	42
Other
OPERATING REVENUES:
Total operating revenues	$ 560	$ 517

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Capital in excess of par value	Capital in excess of par value Cumulative Effect, Period of Adoption, Adjustment	Retained earnings	Retained earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated other comprehensive income	Treasury stock
Balance at beginning of period at Dec. 31, 2021	$ 10,414	$ (245)	$ 888	$ 4,224	$ (300)	$ 15,774	$ 55	$ 388	$ (10,860)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common and treasury stock pursuant to Employee stock plans	7								7
Share-based compensation	16			16
Comprehensive income (loss)	225					(278)		503
Balance at end of period at Mar. 31, 2022	10,417		888	3,940		15,551		891	(10,853)
Balance at beginning of period at Dec. 31, 2022	10,687		888	4,037		16,261		344	(10,843)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common and treasury stock pursuant to Employee stock plans	8			1					7
Share-based compensation	20			20
Cash dividends, $0.18 per share	(107)					(107)
Comprehensive income (loss)	(306)					(159)		(147)
Balance at end of period at Mar. 31, 2023	$ 10,302		$ 888	$ 4,058		$ 15,995		$ 197	$ (10,836)

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Stockholders' Equity (Parenthetical)	3 Months Ended
	Mar. 31, 2023 $ / shares
Statement of Stockholders' Equity [Abstract]
Cash dividends, per share (in dollars per share)	$ 0.18

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (159)	$ (278)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	365	324
Impairment of long-lived assets	0	16
Unrealized mark-to-market adjustment on available for sale securities	(4)	5
Unrealized/realized (gain) loss on fuel derivative instruments	0	34
Deferred income taxes	(52)	(97)
Loss on extinguishment of debt	0	72
Changes in certain assets and liabilities:
Accounts and other receivables	(232)	(334)
Other assets	50	(44)
Accounts payable and accrued liabilities	(72)	177
Air traffic liability	947	885
Other liabilities	(47)	(105)
Cash collateral received from (provided to) derivative counterparties	(30)	385
Other, net	(60)	31
Net cash provided by operating activities	706	1,071
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(1,046)	(510)
Assets constructed for others	(6)	(4)
Purchases of short-term investments	(2,204)	(925)
Proceeds from sales of short-term and other investments	1,679	1,300
Net cash used in investing activities	(1,577)	(139)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Employee stock plans	9	6
Payments of long-term debt and finance lease obligations	(59)	(93)
Payments of cash dividends	(214)	0
Payments for repurchases and conversions of convertible debt	0	(230)
Other, net	2	3
Net cash used in financing activities	(262)	(314)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(1,133)	618
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	9,492	12,480
CASH AND CASH EQUIVALENTS AT END OF PERIOD	8,359	13,098
CASH PAYMENTS FOR:
Interest, net of amount capitalized	19	20
Income taxes	2	4
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS:
Adoption of Accounting Standards Update 2020-06, Debt	0	245
Right-of-use assets acquired under operating leases	$ 47	$ 24

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Southwest Airlines Co. (the "Company" or "Southwest") operates Southwest Airlines, a major passenger airline that provides scheduled air transportation in the United States and near-international markets. The unaudited Condensed Consolidated Financial Statements include accounts of the Company and its wholly owned subsidiaries. In late December 2022, the Company experienced a wide-scale operational disruption as historically extreme winter weather across a significant portion of the United States impacted its operational plan and flight schedules. Subsequent to Winter Storm Elliott, the Company was challenged to realign flight crews, flight schedules, and aircraft for a period of several days during this peak demand travel period. The Company returned to a normal operating schedule on December 30, 2022. This disruption and subsequent recovery efforts resulted in the cancellation of more than 16,700 flights during the period from December 21 through December 31, 2022. For first quarter 2023, these events also created a deceleration in bookings, primarily isolated to January and February 2023, as well as increased expenses of approximately $55 million, which are included in the accompanying unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2023. These expenses included reimbursements to Customers impacted by the cancellations for costs they incurred in excess of the amounts accrued as of December 31, 2022, adjustments to the estimated value of Rapid Rewards points offered as a gesture of goodwill to Customers as a result of changes in the estimates of the points expected to be redeemed, and additional premium pay and additional compensation for Employees directly or indirectly impacted by the cancellations and recovery efforts. The financial impacts of the event to the Company also included the elimination of profitsharing expenses for the quarter. The continuing effects of this event significantly contributed to the Company recording a net loss for first quarter 2023 in the amount of $159 million. The accompanying unaudited Condensed Consolidated Financial Statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States ("GAAP") for complete financial statements. The unaudited Condensed Consolidated Financial Statements for the interim periods ended March 31, 2023 and 2022 include all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. This includes all normal and recurring adjustments and elimination of significant intercompany transactions. Financial results for the Company and airlines in general can be seasonal in nature. In many years, the Company's revenues, as well as its Operating income and Net income, have been better in its second and third fiscal quarters than in its first and fourth fiscal quarters. Air travel is also significantly impacted by general economic conditions, the amount of disposable income available to consumers and changes in consumer behavior, unemployment levels, corporate travel budgets, global pandemics such as COVID-19, extreme or severe weather and natural disasters, fears of terrorism or war, governmental actions, and other factors beyond the Company's control. These and other factors, such as the price of jet fuel in some periods, the nature of the Company's fuel hedging program, and the periodic volatility of commodities used by the Company for hedging jet fuel, have created, and may continue to create, significant volatility in the Company's financial results. See Note 3 for further information on fuel and the Company's hedging program. Operating results for the three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for future quarters or for the year ended December 31, 2023. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NEW ACCOUNTING PRONOUNCEMENTS On January 7, 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848). This new standard provides optional temporary guidance for entities transitioning away from London Interbank Offered Rate ("LIBOR") to new reference interest rates so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions with Topic 848. These amendments do not apply to any contract modifications made after December 31, 2024, any new hedging relationships entered into after December 31, 2024, or to existing hedging relationships evaluated for effectiveness existing as of December 31, 2024, that apply certain optional practical expedients. This standard was effective immediately and may be applied (i) on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or (ii) on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The Company had no material LIBOR-related contract modifications during the three months ended March 31, 2023.

Financial Derivative Instrument

Financial Derivative Instruments	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
FINANCIAL DERIVATIVE INSTRUMENTS	(100) >(50) >(75) >(125) >(40) >(65) >(100) Cash is received from CP >0(c) >150(c) >250(c) >125(c) >100(c) >70(c) >100(c) If credit rating is non-investment Cash is received from CP (d) (d) (d) (d) (d) (d) (d) (a) Individual counterparties with fair value of fuel derivatives < $16 million. (b) The Company has the option to substitute letters of credit for 100 percent of cash collateral requirement. (c) Thresholds may vary based on changes in credit ratings within investment grade. (d) Cash collateral is provided at 100 percent of fair value of fuel derivative contracts." id="sjs-B4">FINANCIAL DERIVATIVE INSTRUMENTS Fuel Contracts Airline operators are inherently dependent upon energy to operate and, therefore, are impacted by changes in jet fuel prices. Furthermore, jet fuel and oil typically represents one of the largest operating expenses for airlines. The Company endeavors to acquire jet fuel at the lowest possible cost and to reduce volatility in operating expenses through its fuel hedging program. The Company has used financial derivative instruments for both short-term and long-term timeframes, and primarily uses a mixture of purchased call options, collar structures (which include both a purchased call option and a sold put option), call spreads (which include a purchased call option and a sold call option), put spreads (which include a purchased put option and a sold put option), and fixed price swap agreements in its portfolio. The Company does not purchase or hold any financial derivative instruments for trading or speculative purposes. For the purpose of evaluating its net cash spend for jet fuel and for forecasting its future estimated jet fuel expense, the Company evaluates its hedge volumes strictly from an "economic" standpoint and thus does not consider whether the hedges have qualified or will qualify for hedge accounting. The Company defines its "economic" hedge as the net volume of fuel derivative contracts held, including the impact of positions that have been offset through sold positions, regardless of whether those contracts qualify for hedge accounting. The level at which the Company is economically hedged for a particular period is also dependent on current market prices for that period, as well as the types of derivative instruments held and the strike prices of those instruments. For example, the Company may enter into "out-of-the-money" option contracts (including "catastrophic" protection), which may not generate intrinsic gains at settlement if market prices do not rise above the option strike price. Therefore, even though the Company may have an economic hedge in place for a particular period, that hedge may not produce any hedging gains at settlement and may even produce hedging losses depending on market prices, the types of instruments held, and the strike prices of those instruments. As of March 31, 2023, the Company had fuel derivative instruments in place to provide coverage at varying price levels. The following table provides information about the Company’s volume of fuel hedging on an economic basis: Maximum fuel hedged as of March 31, 2023 Derivative underlying commodity type as of Period (by year) (gallons in millions) (a) March 31, 2023 Remainder of 2023 813 West Texas Intermediate ("WTI") crude oil and Brent crude oil 2024 1,265 WTI crude oil and Brent crude oil 2025 227 Brent crude oil (a) Due to the types of derivatives utilized by the Company and different price levels of those contracts, these volumes represent the maximum economic hedge in place and may vary significantly as market prices and the Company's flight schedule fluctuate. Upon proper qualification, the Company accounts for its fuel derivative instruments as cash flow hedges. Qualification is re-evaluated quarterly, and all periodic changes in fair value of the derivatives designated as hedges are recorded in Accumulated other comprehensive income ("AOCI") until the underlying jet fuel is consumed. See Note 4. When the Company has sold derivative positions in order to effectively "close" or offset a derivative already held as part of its fuel derivative instrument portfolio, any subsequent changes in fair value of those positions are marked to market through earnings. Likewise, any changes in fair value of those positions that were offset by entering into the sold positions and were de-designated as hedges are concurrently marked to market through earnings. However, any changes in value related to hedges that were deferred as part of AOCI while designated as a hedge would remain until the originally forecasted transaction occurs. In a situation where it becomes probable that a fuel hedged forecasted transaction will not occur, any gains and/or losses that have been recorded to AOCI would be required to be immediately reclassified into earnings. The Company did not have any such situations where a derivative ceased to qualify for hedge accounting during 2022, or during the three months ended March 31, 2023. All cash flows associated with purchasing and selling fuel derivatives are classified as Other operating cash flows in the unaudited Condensed Consolidated Statement of Cash Flows. The following table presents the location of all assets and liabilities associated with the Company’s derivative instruments within the unaudited Condensed Consolidated Balance Sheet: Asset derivatives Balance Sheet Fair value at Fair value at (in millions) location 3/31/2023 12/31/2022 Derivatives designated as hedges (a) Fuel derivative contracts (gross) Prepaid expenses and other current assets $ 228 $ 352 Fuel derivative contracts (gross) Other assets 167 160 Interest rate derivative contracts Other assets 13 14 Total derivatives designated as hedges $ 408 $ 526 (a) 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. In addition, the Company had the following amounts associated with fuel derivative instruments and hedging activities in its unaudited Condensed Consolidated Balance Sheet: Balance Sheet March 31, December 31, (in millions) location 2023 2022 Cash collateral deposits held from counterparties for fuel contracts - current Offset against Prepaid expenses and other current assets $ 65 $ 106 Cash collateral deposits held from counterparties for fuel contracts - noncurrent Offset against Other assets 11 — Receivable from third parties for fuel contracts Accounts and other receivables 15 34 All of the Company's fuel derivative instruments and interest rate swaps are subject to agreements that follow the netting guidance in the applicable accounting standards for derivatives and hedging. The types of derivative instruments the Company has determined are subject to netting requirements in the accompanying unaudited Condensed Consolidated Balance Sheet are those in which the Company pays or receives cash for transactions with the same counterparty and in the same currency via one net payment or receipt. For cash collateral held by the Company or provided to counterparties, the Company nets such amounts against the fair value of the Company's derivative portfolio by each counterparty. The Company has elected to utilize netting for both its fuel derivative instruments and interest rate swap agreements and also classifies such amounts as either current or noncurrent, based on the net fair value position with each of the Company's counterparties in the unaudited Condensed Consolidated Balance Sheet. If its fuel derivative instruments are in a net asset position with a counterparty, cash collateral amounts held are first netted against current outstanding derivative asset amounts associated with that counterparty until that balance is zero, and then any remainder is applied against the fair value of noncurrent outstanding derivative instruments. As of March 31, 2023, no cash collateral deposits were provided by or held by the Company based on its outstanding interest rate swap agreements. The Company has the following recognized financial assets and financial liabilities resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting: Offsetting of derivative assets (in millions) (i) (ii) (iii) = (i) + (ii) (i) (ii) (iii) = (i) + (ii) March 31, 2023 December 31, 2022 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Fuel derivative contracts Prepaid expenses and other current assets $ 228 $ (65) $ 163 $ 352 $ (106) $ 246 Fuel derivative contracts Other assets $ 167 $ (11) $ 156 (a) $ 160 $ — $ 160 (a) Interest rate derivative contracts Other assets $ 13 $ — $ 13 (a) $ 14 $ — $ 14 (a) (a) The net amounts of derivative assets and liabilities are reconciled to the individual line item amounts presented in the unaudited Condensed Consolidated Balance Sheet in Note 8. Offsetting of derivative liabilities (in millions) (i) (ii) (iii) = (i) + (ii) (i) (ii) (iii) = (i) + (ii) March 31, 2023 December 31, 2022 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Fuel derivative contracts Prepaid expenses and other current assets $ 65 $ (65) $ — $ 106 $ (106) $ — Fuel derivative contracts Other assets $ 11 $ (11) $ — $ — $ — $ — The following tables present the impact of derivative instruments and their location within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022: Location and amount recognized in income on cash flow and fair value hedging relationships Three months ended March 31, 2023 Three months ended March 31, 2022 (in millions) Fuel and oil Other operating expenses Fuel and oil Other operating expenses Total $ (28) $ 2 $ (203) $ 2 (Gain) loss on cash flow hedging relationships: Commodity contracts: Amount of (gain) reclassified from AOCI into income (28) — (203) — Interest contracts: Amount of loss reclassified from AOCI into income — 2 — 2 Derivatives designated and qualified in cash flow hedging relationships (Gain) loss recognized in AOCI on derivatives, net of tax Three months ended March 31, (in millions) 2023 2022 Fuel derivative contracts $ 125 $ (654) Interest rate derivatives 2 (4) Total $ 127 $ (658) Derivatives not designated as hedges (Gain) loss recognized in income on derivatives Three months ended Location of (gain) loss recognized in income on derivatives March 31, (in millions) 2023 2022 Fuel derivative contracts $ — $ 34 Other (gains) losses, net The Company also recorded expense associated with premiums paid for fuel derivative contracts that settled/expired during the three months ended March 31, 2023 and 2022. Gains and/or losses associated with fuel derivatives that qualify for hedge accounting are ultimately recorded to Fuel and oil expense. Gains and/or losses associated with fuel derivatives that do not qualify for hedge accounting are recorded to Other (gains) and losses, net. The following table presents the impact of premiums paid for fuel derivative contracts and their location within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) during the period the contract settles: Premium expense recognized in income on derivatives Three months ended Location of premium expense recognized in income on derivatives March 31, (in millions) 2023 2022 Fuel derivative contracts designated as hedges $ 30 $ 26 Fuel and oil The fair values of the derivative instruments, depending on the type of instrument, were determined by the use of present value methods or option value models with assumptions about commodity prices based on those observed in underlying markets or provided by third parties. Included in the Company’s cumulative unrealized gains from fuel hedges as of March 31, 2023, recorded in AOCI, were approximately $75 million in unrealized gains, net of taxes, which are expected to be realized in earnings during the twelve months subsequent to March 31, 2023. Interest Rate Swaps The Company is party to certain interest rate swap agreements that are accounted for as cash flow hedges. The Company did not have any interest rate swap agreements designated as fair value hedges, as defined, during the periods presented. All of the Company's interest rate swap agreements qualify for the "shortcut" or "critical terms match" methods of accounting for hedges, which dictate that the hedges were assumed to be perfectly effective at origination, and, thus, there was no ineffectiveness to be recorded in earnings. Credit Risk and Collateral Credit exposure related to fuel derivative instruments is represented by the fair value of contracts that are an asset to the Company at the reporting date. At such times, these outstanding instruments expose the Company to credit loss in the event of nonperformance by the counterparties to the agreements. However, the Company has not experienced any significant credit loss as a result of counterparty nonperformance in the past. To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings, limits its exposure with respect to each counterparty, and monitors the market position of the fuel hedging program and its relative market position with each counterparty. At March 31, 2023, the Company had agreements with all of its active counterparties containing early termination rights and/or bilateral collateral provisions whereby security is required if market risk exposure exceeds a specified threshold amount based on the counterparty's credit rating. The Company also had agreements with counterparties in which cash deposits and letters of credit were required to be posted as collateral whenever the net fair value of derivatives associated with those counterparties exceeds specific thresholds. In certain cases, the Company has the ability to substitute among these different forms of collateral at its discretion. The following table provides the fair values of fuel derivatives, amounts posted as collateral, and applicable collateral posting threshold amounts as of March 31, 2023, at which such postings are triggered: Counterparty (CP) (in millions) A B C D E F G Other (a) Total Fair value of fuel derivatives $ 96 $ 51 $ 78 $ 23 $ 55 $ 29 $ 48 $ 15 $ 395 Cash collateral held from CP 76 — — — — — — — 76 Option to substitute LC for cash N/A N/A (b) (b) (b) N/A (b) If credit rating is investment Cash is provided to CP >(100) >(50) >(75) >(125) >(40) >(65) >(100) Cash is received from CP >0(c) >150(c) >250(c) >125(c) >100(c) >70(c) >100(c) If credit rating is non-investment Cash is received from CP (d) (d) (d) (d) (d) (d) (d) (a) Individual counterparties with fair value of fuel derivatives < $16 million. (b) The Company has the option to substitute letters of credit for 100 percent of cash collateral requirement. (c) Thresholds may vary based on changes in credit ratings within investment grade. (d) Cash collateral is provided at 100 percent of fair value of fuel derivative contracts.

Comprehensive Income (Loss)

Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2023
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 and actuarial gains/losses arising from the Company’s postretirement benefit obligation. The differences between Net loss and Comprehensive income (loss) for the three months ended March 31, 2023 and 2022 were as follows: Three months ended March 31, (in millions) 2023 2022 NET LOSS $ (159) $ (278) Unrealized gain (loss) on fuel derivative instruments, net of deferred taxes of ($44) and $151 (147) 498 Unrealized gain on interest rate derivative instruments, net of deferred taxes of $0 and $2 — 5 Total other comprehensive income (loss) $ (147) $ 503 COMPREHENSIVE INCOME (LOSS) $ (306) $ 225 A rollforward of the amounts included in AOCI, net of taxes, is shown below for the three months ended March 31, 2023: (in millions) Fuel derivatives Interest rate derivatives Defined benefit plan items Deferred tax impact Accumulated other comprehensive income Balance at December 31, 2022 $ 305 $ (32) $ 170 $ (99) $ 344 Changes in fair value (163) (2) — 38 (127) Reclassification to earnings (28) 2 — (a) 6 (20) Balance at March 31, 2023 $ 114 $ (32) $ 170 $ (55) $ 197 The following table illustrates the significant amounts reclassified out of each component of AOCI for the three months ended March 31, 2023: Three months ended March 31, 2023 (in millions) Amounts reclassified from AOCI Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) AOCI components Unrealized (gain) on fuel derivative instruments $ (28) Fuel and oil expense (6) Less: Tax expense $ (22) Net of tax Unrealized loss on interest rate derivative instruments $ 2 Other operating expenses — Less: Tax expense $ 2 Net of tax Total reclassifications for the period $ (20) Net of tax

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Passenger Revenues The Company’s contracts with its Customers primarily consist of its tickets sold, which are initially deferred as Air traffic liability. Passenger revenue associated with tickets is recognized when the performance obligation to the Customer is satisfied, which is primarily when travel is provided. Revenue is categorized by revenue source as the Company believes it best depicts the nature, amount, timing, and uncertainty of revenue and cash flow. The following table provides the components of Passenger revenue recognized for the three months ended March 31, 2023 and 2022: Three months ended March 31, (in millions) 2023 2022 Passenger non-loyalty $ 4,082 $ 3,364 Passenger loyalty - air transportation 825 624 Passenger ancillary sold separately 198 147 Total passenger revenues $ 5,105 $ 4,135 As of March 31, 2023, and December 31, 2022, the components of Air traffic liability, including contract liabilities based on tickets sold and unused flight credits available to the Customer, both of which are net of recorded breakage, and loyalty points available for redemption, within the unaudited Condensed Consolidated Balance Sheet were as follows: Balance as of (in millions) March 31, 2023 December 31, 2022 Air traffic liability - passenger travel and ancillary passenger services $ 4,007 $ 3,061 Air traffic liability - loyalty program 5,190 5,189 Total Air traffic liability $ 9,197 $ 8,250 The balance in Air traffic liability - passenger travel and ancillary passenger services also includes flight credits not currently associated with a ticket that can be applied by Customers towards the purchase of future travel. These flight credits are typically created as a result of a prior ticket cancellation or exchange, and are reflected net of associated breakage. Rollforwards of the Company's Air traffic liability - loyalty program for the three months ended March 31, 2023 and 2022 were as follows (in millions): Three months ended March 31, 2023 2022 Air traffic liability - loyalty program - beginning balance $ 5,189 $ 4,789 Amounts deferred associated with points awarded 846 736 Revenue recognized from points redeemed - Passenger (825) (624) Revenue recognized from points redeemed - Other (20) (17) Air traffic liability - loyalty program - ending balance $ 5,190 $ 4,884 Air traffic liability includes consideration received for ticket and loyalty related performance obligations which have not been satisfied as of a given date. Rollforwards of the amounts included in Air traffic liability as of March 31, 2023 and 2022 were as follows (in millions): Air traffic liability Balance at December 31, 2022 $ 8,250 Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty) 6,072 Revenue from amounts included in contract liability opening balances (2,568) Revenue from current period sales (2,557) Balance at March 31, 2023 $ 9,197 Air traffic liability Balance at December 31, 2021 $ 7,725 Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty) 5,038 Revenue from amounts included in contract liability opening balances (1,881) Revenue from current period sales (2,272) Balance at March 31, 2022 $ 8,610 On July 28, 2022, the Company announced that all existing Customer flight credits as of that date, as well as any future flight credits issued, will no longer expire and will thus remain redeemable by Customers. Flight credits for non-refundable fares will be issued as long as the flight is cancelled more than 10 minutes prior to the scheduled departure. As the Company continues to believe that a portion of Customer flight credits issued after July 28, 2022, will not be redeemed, it continues to estimate and record breakage associated with such amounts. The amount of

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per share (in millions except per share amounts). Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average of shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Three months ended March 31, 2023 2022 NUMERATOR: Net loss $ (159) $ (278) Add: Interest expense — — Net loss attributable to common stockholders (159) (278) DENOMINATOR: Weighted-average shares outstanding, basic and diluted 594 592 NET LOSS PER SHARE: Basic $ (0.27) $ (0.47) Diluted $ (0.27) $ (0.47) Antidilutive amounts excluded from calculations: Convertible debt 42 47 Restricted stock units 3 — Stock warrants 1 —

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of March 31, 2023, the Company held certain items that are required to be measured at fair value on a recurring basis. These included cash equivalents, short-term investments (primarily treasury bills), interest rate derivative contracts, fuel derivative contracts, and available-for-sale securities. The majority of the Company’s cash equivalents and short-term investments consist of instruments classified as Level 1. However, the Company has certificates of deposit, commercial paper, and time deposits that are classified as Level 2, due to the fact that the fair value for these instruments is determined utilizing observable inputs in non-active markets. Equity securities primarily consist of investments with readily determinable market values associated with the Company’s excess benefit plan. The Company’s fuel and interest rate derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange. Fuel derivative instruments currently consist solely of option contracts, whereas interest rate derivatives consist solely of swap agreements. See Note 3 for further information on the Company’s derivative instruments and hedging activities. The fair values of swap contracts 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 swap contracts as Level 2. The Company’s Treasury Department, which reports to the Chief Financial Officer, determines the value of option contracts utilizing an option pricing model based on inputs that are either readily available in public markets, can be derived from information available in publicly quoted markets, or are provided by financial institutions that trade these contracts. The option pricing model used by the Company is an industry standard model for valuing options and is a similar model used by the broker/dealer community (i.e., the Company’s counterparties). The inputs to this option pricing model are the option strike price, underlying price, risk free rate of interest, time to expiration, and volatility. Because certain inputs used to determine the fair value of option contracts are unobservable (principally implied volatility), the Company has categorized these option contracts as Level 3. Volatility information is obtained from external sources, but is analyzed by the Company for reasonableness and compared to similar information received from other external sources. The fair value of option contracts considers both the intrinsic value and any remaining time value associated with those derivatives that have not yet settled. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. To validate the reasonableness of the Company’s option pricing model, on a monthly basis, the Company compares its option valuations to third party valuations. If any significant differences were to be noted, they would be researched in order to determine the reason. However, historically, no significant differences have been noted. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of derivative contracts it holds. Included in Other available-for-sale securities are the Company’s investments associated with its deferred compensation plans, which consist of mutual funds that are publicly traded and for which market prices are readily available. These plans are non-qualified deferred compensation plans designed to hold contributions in excess of limits established by the Internal Revenue Code of 1986, as amended. The distribution timing and payment amounts under these plans are made based on the participant’s distribution election and plan balance. Assets related to the funded portions of the deferred compensation plans are held in a rabbi trust, and the Company remains liable to these participants for the unfunded portion of the plans. The Company records changes in the fair value of plan obligations and plan assets, which net to zero, within the Salaries, wages, and benefits line and Other (gains) losses line, respectively, of the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss). The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 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 March 31, 2023 (Level 1) (Level 2) (Level 3) Assets (in millions) Cash equivalents: Cash equivalents (a) $ 7,497 $ 7,497 $ — $ — Commercial paper 224 — 224 — Certificates of deposit 13 — 13 — Time deposits 625 — 625 — Short-term investments: Treasury bills 3,116 3,116 — — Certificates of deposit 150 — 150 — Time deposits 49 — 49 — Fuel derivatives: Option contracts (b) 395 — — 395 Interest rate derivatives (see Note 3) 13 — 13 — Equity Securities 236 236 — — Total assets $ 12,318 $ 10,849 $ 1,074 $ 395 (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. The Company did not have any material assets or liabilities measured at fair value on a nonrecurring basis during the three months ended March 31, 2023, or the year ended December 31, 2022. 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, 2023: 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 other comprehensive income (163) Purchases 104 (a) Settlements (58) Balance at March 31, 2023 $ 395 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 March 31, 2023 $ (145) (a) 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. The significant unobservable input used in the fair value measurement of the Company’s derivative option contracts is implied volatility. Holding other inputs constant, an increase (decrease) in implied volatility would have resulted in a higher (lower) fair value measurement, respectively, for the Company’s derivative option contracts. 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 March 31, 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 Second quarter 2023 26-42% 35 % Third quarter 2023 32-43% 38 % Fourth quarter 2023 34-42% 38 % 2024 31-42% 33 % 2025 30-31% 30 % (a) Implied volatility weighted by the notional amount (barrels of fuel) that will settle in respective period. 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 March 31, 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 1,831 Level 2 5.25% Notes due 2025 1,302 1,308 Level 2 3.00% Notes due 2026 300 281 Level 2 3.45% Notes due 2027 300 281 Level 2 5.125% Notes due 2027 1,727 1,727 Level 2 7.375% Debentures due 2027 113 121 Level 2 2.625% Notes due 2030 500 427 Level 2 1.000% PSP1 Loan due 2030 976 866 Level 3 1.000% PSP2 Loan due 2031 566 487 Level 3 1.000% PSP3 Loan due 2031 526 448 Level 3

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUPPLEMENTAL FINANCIAL INFORMATION	SUPPLEMENTAL FINANCIAL INFORMATION (in millions) March 31, 2023 December 31, 2022 Trade receivables $ 64 $ 117 Credit card receivables 185 85 Business partners and other suppliers 545 478 Taxes receivable 129 133 Fuel hedging and receivables 15 34 Other 312 193 Accounts and other receivables $ 1,250 $ 1,040 (in millions) March 31, 2023 December 31, 2022 Derivative contracts $ 169 $ 174 Intangible assets, net 295 296 Equity securities 236 261 Other 198 124 Other assets $ 898 $ 855 (in millions) March 31, 2023 December 31, 2022 Accounts payable trade $ 272 $ 277 Salaries, withholdings and payroll taxes 368 456 Ticket taxes and fees 434 242 Aircraft maintenance payable 91 65 Fuel payable 113 188 Dividends payable — 107 Customer reimbursements and refunds (a) 17 311 Accrued third party services 240 196 Other payable 194 162 Accounts payable $ 1,729 $ 2,004 (in millions) March 31, 2023 December 31, 2022 Voluntary Separation Program $ 69 $ 72 Profitsharing and savings plans 32 167 Vacation pay 495 484 Health 289 261 Workers compensation 166 164 Property and income taxes 53 37 Interest 164 45 Bonus and incentive pay (b) 626 563 Other 224 250 Accrued liabilities $ 2,118 $ 2,043 (in millions) March 31, 2023 December 31, 2022 Voluntary Separation Program $ 125 $ 147 Postretirement obligation 242 241 Other deferred compensation 326 331 Other 243 250 Other noncurrent liabilities $ 936 $ 969 (a) This amount includes customer reimbursement expenses due to the Company's December 2022 operational disruption and refund submissions that had yet to be processed. (b) Primarily consists of anticipated contract labor ratification bonuses and/or accruals. Also includes non-contract incentive pay. For further information on fuel derivative and interest rate derivative contracts, see Note 3. Other Operating Expenses Other operating expenses consist of aircraft rentals, distribution costs, advertising expenses, personnel expenses, professional fees, and other operating costs, none of which individually exceeded 10 percent of Total operating expenses, net.

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES William P. Hobby Airport In March 2022, the Company executed a Memorandum of Agreement ("MOA") with the City of Houston, Texas (the "City") which owns William P. Hobby Airport ("Hobby") that is managed and operated by the City's Houston Airport System. Under the MOA, the Company will manage the development, design, and construction of seven new gates in Hobby's West Concourse. The project is currently estimated to be completed in 2025 or 2026 at a cost of at least $250 million, based on initial projections. The Company will provide initial funding for the majority of the project, but is expected to be reimbursed for such funding from the City on a monthly basis and therefore should not significantly impact the Company’s liquidity. The City plans to fund these reimbursements utilizing rates and charges collected from current and future Hobby occupants, including the Company. Based on the MOA, as well as a terminal lease amendment expected to be finalized prior to the beginning of significant construction, the Company has determined that it does not control the assets during the construction period for accounting purposes, and thus will record the amounts funded for the project as a receivable until reimbursed by the City, and the balance is derecognized. Contractual Obligations and Contingent Liabilities and Commitments During 2022, the Company entered into supplemental agreements with The Boeing Company ("Boeing") to replace the majority of its 2023 Boeing 737 MAX 7 ("-7") firm orders with Boeing 737 MAX 8 ("-8") firm orders, among other adjustments to its near-term order book. During first quarter 2023, the Company exercised 15 -7 options for delivery in 2024 and converted 11 2024 -7 firm orders to -8 firm orders. The delivery schedule below reflects commitments, although the timing of future deliveries is uncertain. For purposes of the delivery schedule below, the Company has included the remaining 46 of its 2022 contractual undelivered aircraft within its 2023 commitments, and has not made any further adjustments to this schedule based on current estimations. The Company now expects it will receive approximately 70 -8 aircraft deliveries in 2023. The Company retains significant flexibility to manage its fleet size, including opportunities to accelerate fleet modernization efforts if growth opportunities do not materialize. Given the current supply chain and aircraft delivery delays, the Company will continue working with Boeing to solidify future delivery dates. Additional information regarding the Company's order book is included in the following table as of March 31, 2023: The Boeing Company -7 Firm Orders -8 Firm Orders -7 or -8 Options Total 2023 31 105 — 136 (c) 2024 45 11 30 86 2025 30 — 56 86 2026 30 15 40 85 2027 15 15 6 36 2028 15 15 — 30 2029 20 30 — 50 2030 — 55 — 55 2031 — — — — 186 (a) 246 (b) 132 564 (a) The delivery timing for the -7 is dependent on the Federal Aviation Administration ("FAA") issuing required certifications and approvals to Boeing and the Company. The FAA will ultimately determine the timing of the -7 certification and entry into service, and the Company therefore offers no assurances that current estimations and timelines are correct. (b) The Company has flexibility to designate firm orders or options as -7s or -8s, upon written advance notification as stated in the contract. (c) Includes 30 -8 deliveries received through March 31, 2023. In addition, the Company has included the remaining 46 of its 2022 contractual undelivered aircraft (14 -7s and 32 -8s) within its 2023 commitments. Due to Boeing's supply chain challenges and the current status of the -7 certification, the Company currently estimates approximately 70 -8 aircraft deliveries in 2023. The 2023 detail is as follows: The Boeing Company -7 -8 Total 2022 Contractual Deliveries Remaining 14 32 46 2023 Contractual Deliveries 17 73 90 2023 Total 31 105 136 Boeing continues to experience delays in fulfilling its commitments with regards to delivery of MAX aircraft to the Company, as a result of both supply chain constraints as well as awaiting achievement of the FAA's certification of the -7, for which Southwest expects to be the launch customer. Therefore, for purposes of the Company’s aircraft order commitments with Boeing, the Company has assumed that any aircraft that were contractually due but remain undelivered as of December 31, 2022, have been rolled into the Company’s 2023 commitments, until such time as the Company and Boeing revise the aircraft order book. Based on the Company's existing agreement with Boeing, capital commitments associated with its firm orders as of March 31, 2023, were: $1.6 billion in 2023 (of which approximately $956 million relates to 46 MAX aircraft that were contractually committed for 2022 but were not received), $1.5 billion in 2024, $993 million in 2025, $1.4 billion in 2026, $1.1 billion in 2027, $1.3 billion in 2028, and $4.5 billion thereafter. Subsequent to March 31, 2023 and through April 27, 2023, the Company has exercised 11 -7 options for delivery in 2024, and converted eight 2024 -7 firm orders to -8 firm orders, resulting in the Company's 2024 capital commitments increasing to $1.7 billion. Contingencies The Company is from time to time subject to various legal proceedings and claims arising in the ordinary course of business and records a liability for such claims when it is probable that a loss will be incurred and the amount is reasonably estimable. Based on the wide-scale operational disruption for the Company, which led to the cancelation of a significant number of flights between December 21 and December 29, 2022, the Company could be subject to fines and/or penalties resulting from investigations by the Department of Transportation or other government agencies. The Company could also face monetary damages or other costs resulting from litigation initiated by Customers and/or Shareholders. The Company is currently not able to estimate a range of possible loss for such items. The Company is a defendant in class action litigation asserting it has not provided paid short-term military leave to certain employees, in violation of the federal Uniformed Services Employment and Reemployment Rights Act (“USERRA”). The United States District Court for the Northern District of California previously issued an order to effectively stay the action, pending an appeal from an order by the United States District Court for the Eastern District of Washington granting summary judgment in favor of an airline in a separate case involving substantially the same claims at issue in this action. On February 1, 2023, the Ninth Circuit reversed the district court’s grant of summary judgment and remanded the separate airline case to the District Court. The Ninth Circuit’s decision may adversely affect the Company’s defenses in the USERRA proceeding and may give rise to additional litigation in this or other areas. The Company is currently not able to estimate a range of possible loss with regards to the litigation to which it is a defendant.

Financing Activities

Financing Activities	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
FINANCING ACTIVITIES	FINANCING ACTIVITIES On May 1, 2020, the Company completed the public offering of $2.3 billion aggregate principal amount of Convertible Senior Notes (the "Convertible Notes"). The Convertible Notes bear interest at a rate of 1.25% and will mature on May 1, 2025. Interest on the notes is payable semi-annually in arrears. Holders may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding February 1, 2025, in the event certain conditions are met, as stated in the offering documents. The Convertible Notes did not meet the criteria to be converted as of the date of the financial statements, and thus are classified as Long-term debt in the accompanying unaudited Condensed Consolidated Balance Sheet as of March 31, 2023. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the Company’s election. The Company intends to settle conversions by paying cash up to the principal amount of the Convertible Notes, with any excess conversion value settled in cash or shares of common stock. The initial conversion rate was 25.9909 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $38.48 per share of common stock). However, based on the Company's cash dividends paid in January 2023 and March 2023, the bond conversion rate changed to 26.1250 on January 9, 2023, and changed to 26.2650 on March 7, 2023. The net carrying amount and principal amount of the Convertible Notes was $1.6 billion as of March 31, 2023 and December 31, 2022. The Company recognized interest expense associated with the Convertible Notes as follows: Three months ended March 31, (in millions) 2023 2022 Non-cash amortization of debt issuance costs 3 3 Contractual coupon interest 5 6 Total interest expense $ 8 $ 9 The unamortized debt issuance costs are being recognized as non-cash interest expense based on the 5-year term of the notes, through May 1, 2025, less amounts that were or will be required to be accelerated immediately upon conversion or repurchases. The Company had no changes to contingencies during the three months ended March 31, 2023. The effective interest rate associated with the Convertible Notes was approximately 1.9 percent for the three months ended March 31, 2023. The following table presents the impact of the partial extinguishment of the Company's Convertible Notes and early prepayment of debt (excluding payments on finance leases) for the three months ended March 31, 2022. No such instances of partial extinguishment or early prepayment of debt occurred for the three months ended March 31, 2023. Three months ended March 31, 2022 (in millions) Cash paid for debt and interest Principal repayment Loss on extinguishment Non-cash amortization of debt discount and (issuance) costs Accrued Interest 1.25% Convertible Notes due 2025 $ 230 $ 164 $ 69 $ (3) $ — 5.125% Notes due 2027 34 30 3 — 1 Total $ 264 $ 194 $ 72 $ (3) $ 1 The Company has access to $1.0 billion under its amended and restated revolving credit facility (the "Amended A&R Credit Agreement"). In July 2022, this facility was amended to extend the expiration date to August 2025 and to change the benchmark rate from LIBOR to the Secured Overnight Financing Rate ("SOFR"). For the three months ended March 31, 2023 and 2022, there were no amounts outstanding under the Amended A&R Credit Agreement. On December 5, 2022, the Company signed an aircraft sale agreement with AerCap Ireland Limited (“AerCap”) to purchase 39 -700 aircraft, all of which were already in the Company's fleet under finance lease terms. As each aircraft was purchased, the Company relieved its related lease liability but continues to recognize the cost of the aircraft within Property and equipment in the unaudited Condensed Consolidated Balance Sheet. As of March 31, 2023, the Company had completed the purchase of all 39 aircraft, including the 31 aircraft purchased in 2022. The Company paid the lessor $88 million as part of this transaction for the remaining eight aircraft in first quarter 2023, of which $50 million was recorded as the elimination of the Company’s remaining finance lease obligation for the aircraft, and which was also reflected within Payments of long-term debt and finance lease obligations in the accompanying unaudited Condensed Consolidated Statement of Cash Flows. The remaining $38 million was the net purchase price of the aircraft and is included as part of the Company’s Capital expenditures for the three months ended March 31, 2023. The Company has 28 finance leased aircraft remaining. There was no gain or loss recorded as a result of these transactions.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
Basis of Presentation	The accompanying unaudited Condensed Consolidated Financial Statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States ("GAAP") for complete financial statements. The unaudited Condensed Consolidated Financial Statements for the interim periods ended March 31, 2023 and 2022 include all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. This includes all normal and recurring adjustments and elimination of significant intercompany transactions. Financial results for the Company and airlines in general can be seasonal in nature. In many years, the Company's revenues, as well as its Operating income and Net income, have been better in its second and third fiscal quarters than in its first and fourth fiscal quarters. Air travel is also significantly impacted by general economic conditions, the amount of disposable income available to consumers and changes in consumer behavior, unemployment levels, corporate travel budgets, global pandemics such as COVID-19, extreme or severe weather and natural disasters, fears of terrorism or war, governmental actions, and other factors beyond the Company's control. These and other factors, such as the price of jet fuel in some periods, the nature of the Company's fuel hedging program, and the periodic volatility of commodities used by the Company for hedging jet fuel, have created, and may continue to create, significant volatility in the Company's financial results. See Note 3 for further information on fuel and the Company's hedging program. Operating results for the three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for future quarters or for the year ended December 31, 2023. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.
New Accounting Pronouncements	On January 7, 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848). This new standard provides optional temporary guidance for entities transitioning away from London Interbank Offered Rate ("LIBOR") to new reference interest rates so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions with Topic 848. These amendments do not apply to any contract modifications made after December 31, 2024, any new hedging relationships entered into after December 31, 2024, or to existing hedging relationships evaluated for effectiveness existing as of December 31, 2024, that apply certain optional practical expedients. This standard was effective immediately and may be applied (i) on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or (ii) on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The Company had no material LIBOR-related contract modifications during the three months ended March 31, 2023.
Derivatives	The Company has used financial derivative instruments for both short-term and long-term timeframes, and primarily uses a mixture of purchased call options, collar structures (which include both a purchased call option and a sold put option), call spreads (which include a purchased call option and a sold call option), put spreads (which include a purchased put option and a sold put option), and fixed price swap agreements in its portfolio. The Company does not purchase or hold any financial derivative instruments for trading or speculative purposes. For the purpose of evaluating its net cash spend for jet fuel and for forecasting its future estimated jet fuel expense, the Company evaluates its hedge volumes strictly from an "economic" standpoint and thus does not consider whether the hedges have qualified or will qualify for hedge accounting. The Company defines its "economic" hedge as the net volume of fuel derivative contracts held, including the impact of positions that have been offset through sold positions, regardless of whether those contracts qualify for hedge accounting. The level at which the Company is economically hedged for a particular period is also dependent on current market prices for that period, as well as the types of derivative instruments held and the strike prices of those instruments. For example, the Company may enter into "out-of-the-money" option contracts (including "catastrophic" protection), which may not generate intrinsic gains at settlement if market prices do not rise above the option strike price. Therefore, even though the Company may have an economic hedge in place for a particular period, that hedge may not produce any hedging gains at settlement and may even produce hedging losses depending on market prices, the types of instruments held, and the strike prices of those instruments.
Fair Value Measurements	Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of March 31, 2023, the Company held certain items that are required to be measured at fair value on a recurring basis. These included cash equivalents, short-term investments (primarily treasury bills), interest rate derivative contracts, fuel derivative contracts, and available-for-sale securities. The majority of the Company’s cash equivalents and short-term investments consist of instruments classified as Level 1. However, the Company has certificates of deposit, commercial paper, and time deposits that are classified as Level 2, due to the fact that the fair value for these instruments is determined utilizing observable inputs in non-active markets. Equity securities primarily consist of investments with readily determinable market values associated with the Company’s excess benefit plan. The Company’s fuel and interest rate derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange. Fuel derivative instruments currently consist solely of option contracts, whereas interest rate derivatives consist solely of swap agreements. See Note 3 for further information on the Company’s derivative instruments and hedging activities. The fair values of swap contracts 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 swap contracts as Level 2. The Company’s Treasury Department, which reports to the Chief Financial Officer, determines the value of option contracts utilizing an option pricing model based on inputs that are either readily available in public markets, can be derived from information available in publicly quoted markets, or are provided by financial institutions that trade these contracts. The option pricing model used by the Company is an industry standard model for valuing options and is a similar model used by the broker/dealer community (i.e., the Company’s counterparties). The inputs to this option pricing model are the option strike price, underlying price, risk free rate of interest, time to expiration, and volatility. Because certain inputs used to determine the fair value of option contracts are unobservable (principally implied volatility), the Company has categorized these option contracts as Level 3. Volatility information is obtained from external sources, but is analyzed by the Company for reasonableness and compared to similar information received from other external sources. The fair value of option contracts considers both the intrinsic value and any remaining time value associated with those derivatives that have not yet settled. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. To validate the reasonableness of the Company’s option pricing model, on a monthly basis, the Company compares its option valuations to third party valuations. If any significant differences were to be noted, they would be researched in order to determine the reason. However, historically, no significant differences have been noted. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of derivative contracts it holds. Included in Other available-for-sale securities are the Company’s investments associated with its deferred compensation plans, which consist of mutual funds that are publicly traded and for which market prices are readily available. These plans are non-qualified deferred compensation plans designed to hold contributions in excess of limits established by the Internal Revenue Code of 1986, as amended. The distribution timing and payment amounts under these plans are made based on the participant’s distribution election and plan balance. Assets related to the funded portions of the deferred compensation plans are held in a rabbi trust, and the Company remains liable to these participants for the unfunded portion of the plans. The Company records changes in the fair value of plan obligations and plan assets, which net to zero, within the Salaries, wages, and benefits line and Other (gains) losses line, respectively, of the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss).
Revenue Recognition	The Company recognized revenue related to the marketing, advertising, and other travel-related benefits of the revenue associated with various loyalty partner agreements including, but not limited to, the Agreement with Chase, within Other operating revenues.

Financial Derivative Instrume_2

Financial Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Volume of Fuel Hedging	The following table provides information about the Company’s volume of fuel hedging on an economic basis: Maximum fuel hedged as of March 31, 2023 Derivative underlying commodity type as of Period (by year) (gallons in millions) (a) March 31, 2023 Remainder of 2023 813 West Texas Intermediate ("WTI") crude oil and Brent crude oil 2024 1,265 WTI crude oil and Brent crude oil 2025 227 Brent crude oil (a) Due to the types of derivatives utilized by the Company and different price levels of those contracts, these volumes represent the maximum economic hedge in place and may vary significantly as market prices and the Company's flight schedule fluctuate.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The following table presents the location of all assets and liabilities associated with the Company’s derivative instruments within the unaudited Condensed Consolidated Balance Sheet: Asset derivatives Balance Sheet Fair value at Fair value at (in millions) location 3/31/2023 12/31/2022 Derivatives designated as hedges (a) Fuel derivative contracts (gross) Prepaid expenses and other current assets $ 228 $ 352 Fuel derivative contracts (gross) Other assets 167 160 Interest rate derivative contracts Other assets 13 14 Total derivatives designated as hedges $ 408 $ 526 (a) 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.
Offsetting Assets	In addition, the Company had the following amounts associated with fuel derivative instruments and hedging activities in its unaudited Condensed Consolidated Balance Sheet: Balance Sheet March 31, December 31, (in millions) location 2023 2022 Cash collateral deposits held from counterparties for fuel contracts - current Offset against Prepaid expenses and other current assets $ 65 $ 106 Cash collateral deposits held from counterparties for fuel contracts - noncurrent Offset against Other assets 11 — Receivable from third parties for fuel contracts Accounts and other receivables 15 34 The Company has the following recognized financial assets and financial liabilities resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting: Offsetting of derivative assets (in millions) (i) (ii) (iii) = (i) + (ii) (i) (ii) (iii) = (i) + (ii) March 31, 2023 December 31, 2022 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Fuel derivative contracts Prepaid expenses and other current assets $ 228 $ (65) $ 163 $ 352 $ (106) $ 246 Fuel derivative contracts Other assets $ 167 $ (11) $ 156 (a) $ 160 $ — $ 160 (a) Interest rate derivative contracts Other assets $ 13 $ — $ 13 (a) $ 14 $ — $ 14 (a) (a) The net amounts of derivative assets and liabilities are reconciled to the individual line item amounts presented in the unaudited Condensed Consolidated Balance Sheet in Note 8.
Offsetting Liabilities	Offsetting of derivative liabilities (in millions) (i) (ii) (iii) = (i) + (ii) (i) (ii) (iii) = (i) + (ii) March 31, 2023 December 31, 2022 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Fuel derivative contracts Prepaid expenses and other current assets $ 65 $ (65) $ — $ 106 $ (106) $ — Fuel derivative contracts Other assets $ 11 $ (11) $ — $ — $ — $ —
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)	The following tables present the impact of derivative instruments and their location within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022: Location and amount recognized in income on cash flow and fair value hedging relationships Three months ended March 31, 2023 Three months ended March 31, 2022 (in millions) Fuel and oil Other operating expenses Fuel and oil Other operating expenses Total $ (28) $ 2 $ (203) $ 2 (Gain) loss on cash flow hedging relationships: Commodity contracts: Amount of (gain) reclassified from AOCI into income (28) — (203) — Interest contracts: Amount of loss reclassified from AOCI into income — 2 — 2 Derivatives designated and qualified in cash flow hedging relationships (Gain) loss recognized in AOCI on derivatives, net of tax Three months ended March 31, (in millions) 2023 2022 Fuel derivative contracts $ 125 $ (654) Interest rate derivatives 2 (4) Total $ 127 $ (658)
Derivative Instruments, Gain (Loss)	Derivatives not designated as hedges (Gain) loss recognized in income on derivatives Three months ended Location of (gain) loss recognized in income on derivatives March 31, (in millions) 2023 2022 Fuel derivative contracts $ — $ 34 Other (gains) losses, net
Premiums Paid for Fuel Derivative Contracts	The following table presents the impact of premiums paid for fuel derivative contracts and their location within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) during the period the contract settles: Premium expense recognized in income on derivatives Three months ended Location of premium expense recognized in income on derivatives March 31, (in millions) 2023 2022 Fuel derivative contracts designated as hedges $ 30 $ 26 Fuel and oil
Fair Values of Fuel Derivatives, Amounts Posted as Collateral, and Collateral Posting Threshold Amounts	The following table provides the fair values of fuel derivatives, amounts posted as collateral, and applicable collateral posting threshold amounts as of March 31, 2023, at which such postings are triggered: Counterparty (CP) (in millions) A B C D E F G Other (a) Total Fair value of fuel derivatives $ 96 $ 51 $ 78 $ 23 $ 55 $ 29 $ 48 $ 15 $ 395 Cash collateral held from CP 76 — — — — — — — 76 Option to substitute LC for cash N/A N/A (b) (b) (b) N/A (b) If credit rating is investment Cash is provided to CP >(100) >(50) >(75) >(125) >(40) >(65) >(100) Cash is received from CP >0(c) >150(c) >250(c) >125(c) >100(c) >70(c) >100(c) If credit rating is non-investment Cash is received from CP (d) (d) (d) (d) (d) (d) (d) (a) Individual counterparties with fair value of fuel derivatives < $16 million. (b) The Company has the option to substitute letters of credit for 100 percent of cash collateral requirement. (c) Thresholds may vary based on changes in credit ratings within investment grade. (d) Cash collateral is provided at 100 percent of fair value of fuel derivative contracts.

Comprehensive Income (Loss) (Ta

Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2023
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Components of Comprehensive Income (Loss)	The differences between Net loss and Comprehensive income (loss) for the three months ended March 31, 2023 and 2022 were as follows: Three months ended March 31, (in millions) 2023 2022 NET LOSS $ (159) $ (278) Unrealized gain (loss) on fuel derivative instruments, net of deferred taxes of ($44) and $151 (147) 498 Unrealized gain on interest rate derivative instruments, net of deferred taxes of $0 and $2 — 5 Total other comprehensive income (loss) $ (147) $ 503 COMPREHENSIVE INCOME (LOSS) $ (306) $ 225
Rollforward of the Amounts Included in AOCI, Net of Taxes	A rollforward of the amounts included in AOCI, net of taxes, is shown below for the three months ended March 31, 2023: (in millions) Fuel derivatives Interest rate derivatives Defined benefit plan items Deferred tax impact Accumulated other comprehensive income Balance at December 31, 2022 $ 305 $ (32) $ 170 $ (99) $ 344 Changes in fair value (163) (2) — 38 (127) Reclassification to earnings (28) 2 — (a) 6 (20) Balance at March 31, 2023 $ 114 $ (32) $ 170 $ (55) $ 197
Reclassification out of Accumulated Other Comprehensive Income (Loss)	The following table illustrates the significant amounts reclassified out of each component of AOCI for the three months ended March 31, 2023: Three months ended March 31, 2023 (in millions) Amounts reclassified from AOCI Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) AOCI components Unrealized (gain) on fuel derivative instruments $ (28) Fuel and oil expense (6) Less: Tax expense $ (22) Net of tax Unrealized loss on interest rate derivative instruments $ 2 Other operating expenses — Less: Tax expense $ 2 Net of tax Total reclassifications for the period $ (20) Net of tax

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Passenger Revenue	The following table provides the components of Passenger revenue recognized for the three months ended March 31, 2023 and 2022: Three months ended March 31, (in millions) 2023 2022 Passenger non-loyalty $ 4,082 $ 3,364 Passenger loyalty - air transportation 825 624 Passenger ancillary sold separately 198 147 Total passenger revenues $ 5,105 $ 4,135
Rollforward of Air Traffic Liability	As of March 31, 2023, and December 31, 2022, the components of Air traffic liability, including contract liabilities based on tickets sold and unused flight credits available to the Customer, both of which are net of recorded breakage, and loyalty points available for redemption, within the unaudited Condensed Consolidated Balance Sheet were as follows: Balance as of (in millions) March 31, 2023 December 31, 2022 Air traffic liability - passenger travel and ancillary passenger services $ 4,007 $ 3,061 Air traffic liability - loyalty program 5,190 5,189 Total Air traffic liability $ 9,197 $ 8,250 Three months ended March 31, 2023 2022 Air traffic liability - loyalty program - beginning balance $ 5,189 $ 4,789 Amounts deferred associated with points awarded 846 736 Revenue recognized from points redeemed - Passenger (825) (624) Revenue recognized from points redeemed - Other (20) (17) Air traffic liability - loyalty program - ending balance $ 5,190 $ 4,884 Air traffic liability Balance at December 31, 2022 $ 8,250 Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty) 6,072 Revenue from amounts included in contract liability opening balances (2,568) Revenue from current period sales (2,557) Balance at March 31, 2023 $ 9,197 Air traffic liability Balance at December 31, 2021 $ 7,725 Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty) 5,038 Revenue from amounts included in contract liability opening balances (1,881) Revenue from current period sales (2,272) Balance at March 31, 2022 $ 8,610

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Earnings per Share Basic and Diluted	Three months ended March 31, 2023 2022 NUMERATOR: Net loss $ (159) $ (278) Add: Interest expense — — Net loss attributable to common stockholders (159) (278) DENOMINATOR: Weighted-average shares outstanding, basic and diluted 594 592 NET LOSS PER SHARE: Basic $ (0.27) $ (0.47) Diluted $ (0.27) $ (0.47) Antidilutive amounts excluded from calculations: Convertible debt 42 47 Restricted stock units 3 — Stock warrants 1 —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 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 at March 31, 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 March 31, 2023 (Level 1) (Level 2) (Level 3) Assets (in millions) Cash equivalents: Cash equivalents (a) $ 7,497 $ 7,497 $ — $ — Commercial paper 224 — 224 — Certificates of deposit 13 — 13 — Time deposits 625 — 625 — Short-term investments: Treasury bills 3,116 3,116 — — Certificates of deposit 150 — 150 — Time deposits 49 — 49 — Fuel derivatives: Option contracts (b) 395 — — 395 Interest rate derivatives (see Note 3) 13 — 13 — Equity Securities 236 236 — — Total assets $ 12,318 $ 10,849 $ 1,074 $ 395 (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 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, 2023: 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 other comprehensive income (163) Purchases 104 (a) Settlements (58) Balance at March 31, 2023 $ 395 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 March 31, 2023 $ (145) (a) 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 March 31, 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 Second quarter 2023 26-42% 35 % Third quarter 2023 32-43% 38 % Fourth quarter 2023 34-42% 38 % 2024 31-42% 33 % 2025 30-31% 30 % (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 March 31, 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 1,831 Level 2 5.25% Notes due 2025 1,302 1,308 Level 2 3.00% Notes due 2026 300 281 Level 2 3.45% Notes due 2027 300 281 Level 2 5.125% Notes due 2027 1,727 1,727 Level 2 7.375% Debentures due 2027 113 121 Level 2 2.625% Notes due 2030 500 427 Level 2 1.000% PSP1 Loan due 2030 976 866 Level 3 1.000% PSP2 Loan due 2031 566 487 Level 3 1.000% PSP3 Loan due 2031 526 448 Level 3

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts and Other Receivables	(in millions) March 31, 2023 December 31, 2022 Trade receivables $ 64 $ 117 Credit card receivables 185 85 Business partners and other suppliers 545 478 Taxes receivable 129 133 Fuel hedging and receivables 15 34 Other 312 193 Accounts and other receivables $ 1,250 $ 1,040
Other Assets	(in millions) March 31, 2023 December 31, 2022 Derivative contracts $ 169 $ 174 Intangible assets, net 295 296 Equity securities 236 261 Other 198 124 Other assets $ 898 $ 855
Schedule of Accounts Payable	(in millions) March 31, 2023 December 31, 2022 Accounts payable trade $ 272 $ 277 Salaries, withholdings and payroll taxes 368 456 Ticket taxes and fees 434 242 Aircraft maintenance payable 91 65 Fuel payable 113 188 Dividends payable — 107 Customer reimbursements and refunds (a) 17 311 Accrued third party services 240 196 Other payable 194 162 Accounts payable $ 1,729 $ 2,004
Accrued Liabilities	(in millions) March 31, 2023 December 31, 2022 Voluntary Separation Program $ 69 $ 72 Profitsharing and savings plans 32 167 Vacation pay 495 484 Health 289 261 Workers compensation 166 164 Property and income taxes 53 37 Interest 164 45 Bonus and incentive pay (b) 626 563 Other 224 250 Accrued liabilities $ 2,118 $ 2,043
Other Noncurrent Liabilities	(in millions) March 31, 2023 December 31, 2022 Voluntary Separation Program $ 125 $ 147 Postretirement obligation 242 241 Other deferred compensation 326 331 Other 243 250 Other noncurrent liabilities $ 936 $ 969 (a) This amount includes customer reimbursement expenses due to the Company's December 2022 operational disruption and refund submissions that had yet to be processed. (b) Primarily consists of anticipated contract labor ratification bonuses and/or accruals. Also includes non-contract incentive pay.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Other Commitments	Additional information regarding the Company's order book is included in the following table as of March 31, 2023: The Boeing Company -7 Firm Orders -8 Firm Orders -7 or -8 Options Total 2023 31 105 — 136 (c) 2024 45 11 30 86 2025 30 — 56 86 2026 30 15 40 85 2027 15 15 6 36 2028 15 15 — 30 2029 20 30 — 50 2030 — 55 — 55 2031 — — — — 186 (a) 246 (b) 132 564 (a) The delivery timing for the -7 is dependent on the Federal Aviation Administration ("FAA") issuing required certifications and approvals to Boeing and the Company. The FAA will ultimately determine the timing of the -7 certification and entry into service, and the Company therefore offers no assurances that current estimations and timelines are correct. (b) The Company has flexibility to designate firm orders or options as -7s or -8s, upon written advance notification as stated in the contract. (c) Includes 30 -8 deliveries received through March 31, 2023. In addition, the Company has included the remaining 46 of its 2022 contractual undelivered aircraft (14 -7s and 32 -8s) within its 2023 commitments. Due to Boeing's supply chain challenges and the current status of the -7 certification, the Company currently estimates approximately 70 -8 aircraft deliveries in 2023. The 2023 detail is as follows: The Boeing Company -7 -8 Total 2022 Contractual Deliveries Remaining 14 32 46 2023 Contractual Deliveries 17 73 90 2023 Total 31 105 136

Financing Activities (Tables)

Financing Activities (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Interest Income and Interest Expense Disclosure	The Company recognized interest expense associated with the Convertible Notes as follows: Three months ended March 31, (in millions) 2023 2022 Non-cash amortization of debt issuance costs 3 3 Contractual coupon interest 5 6 Total interest expense $ 8 $ 9
Schedule of Extinguishment of Debt	The following table presents the impact of the partial extinguishment of the Company's Convertible Notes and early prepayment of debt (excluding payments on finance leases) for the three months ended March 31, 2022. No such instances of partial extinguishment or early prepayment of debt occurred for the three months ended March 31, 2023. Three months ended March 31, 2022 (in millions) Cash paid for debt and interest Principal repayment Loss on extinguishment Non-cash amortization of debt discount and (issuance) costs Accrued Interest 1.25% Convertible Notes due 2025 $ 230 $ 164 $ 69 $ (3) $ — 5.125% Notes due 2027 34 30 3 — 1 Total $ 264 $ 194 $ 72 $ (3) $ 1

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification [Line Items]
Customer reimbursements other expenses	$ 55
Net loss	(159)	$ (278)
Loss on extinguishment of debt	0	72
Reclassification from Other (gains) losses, net	$ (14)	72
Revision of Prior Period, Reclassification, Adjustment
Reclassification [Line Items]
Loss on extinguishment of debt		72
Reclassification from Other (gains) losses, net		$ 72

Financial Derivative Instrume_3

Financial Derivative Instruments - Fuel Hedging (Details) gal in Millions	3 Months Ended
	Mar. 31, 2023 gal
Remainder of 2023
Volume of Fuel Hedging
Fuel Hedged (in gallons)	813
2024
Volume of Fuel Hedging
Fuel Hedged (in gallons)	1,265
2025
Volume of Fuel Hedging
Fuel Hedged (in gallons)	227

Financial Derivative Instrume_4

Financial Derivative Instruments - Fair Values by Balance Sheet Location (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fuel derivative contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Gross amounts of recognized assets	$ 228	$ 352
Gross amounts of recognized liabilities	65	106
Fuel derivative contracts | Other assets
Derivatives, Fair Value [Line Items]
Gross amounts of recognized assets	167	160
Gross amounts of recognized liabilities	11	0
Cash collateral deposits held from counterparties for fuel contracts - current	11	0
Fuel derivative contracts | Other Current Assets
Derivatives, Fair Value [Line Items]
Cash collateral deposits held from counterparties for fuel contracts - current	65	106
Fuel derivative contracts | Accounts and other receivables
Derivatives, Fair Value [Line Items]
Receivable from third parties for fuel contracts	15	34
Interest rate derivative contracts | Other assets
Derivatives, Fair Value [Line Items]
Gross amounts of recognized assets	13	14
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Gross amounts of recognized assets	408	526
Designated as Hedging Instrument | Fuel derivative contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Gross amounts of recognized assets	228	352
Designated as Hedging Instrument | Fuel derivative contracts | Other assets
Derivatives, Fair Value [Line Items]
Gross amounts of recognized assets	167	160
Designated as Hedging Instrument | Interest rate derivative contracts | Other assets
Derivatives, Fair Value [Line Items]
Gross amounts of recognized assets	$ 13	$ 14

Financial Derivative Instrume_5

Financial Derivative Instruments - Narrative (Details) $ in Millions	Mar. 31, 2023 USD ($)
Derivative [Line Items]
Net unrealized losses, net of taxes	$ 75
Interest rate derivative contracts
Derivative [Line Items]
Cash collateral held (from) by CP	$ 0

Financial Derivative Instrume_6

Financial Derivative Instruments - Offsetting of Derivative Assets (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fuel derivative contracts | Prepaid expenses and other current assets
Offsetting Assets [Line Items]
Gross amounts of recognized assets	$ 228	$ 352
Gross amounts offset in the Balance Sheet	(65)	(106)
Net amounts of assets presented in the Balance Sheet	$ 163	$ 246
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other current assets	Prepaid expenses and other current assets
Fuel derivative contracts | Other assets
Offsetting Assets [Line Items]
Gross amounts of recognized assets	$ 167	$ 160
Gross amounts offset in the Balance Sheet	(11)	0
Net amounts of assets presented in the Balance Sheet	$ 156	$ 160
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Interest rate derivative contracts
Offsetting Assets [Line Items]
Net amounts of assets presented in the Balance Sheet	$ 13	$ 14
Interest rate derivative contracts | Other assets
Offsetting Assets [Line Items]
Gross amounts of recognized assets	13	14
Gross amounts offset in the Balance Sheet	$ 0	$ 0
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets

Financial Derivative Instrume_7

Financial Derivative Instruments - Offsetting Derivative Liabilities (Details) - Fuel derivative contracts - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Prepaid expenses and other current assets
Offsetting Liabilities [Line Items]
Gross amounts of recognized liabilities	$ 65	$ 106
Gross amounts offset in the Balance Sheet	(65)	(106)
Net amounts of liabilities presented in the Balance Sheet	$ 0	$ 0
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other current assets	Prepaid expenses and other current assets
Other assets
Offsetting Liabilities [Line Items]
Gross amounts of recognized liabilities	$ 11	$ 0
Gross amounts offset in the Balance Sheet	(11)	0
Net amounts of liabilities presented in the Balance Sheet	$ 0	$ 0
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets

Financial Derivative Instrume_8

Financial Derivative Instruments - Location and Amount Recognized in Income by Hedging Relationship (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flow Hedging
Derivative [Line Items]
Amount of (gain) reclassified from AOCI into income	$ 127	$ (658)
Cash Flow Hedging | Fuel derivative contracts
Derivative [Line Items]
Amount of (gain) reclassified from AOCI into income	125	(654)
Cash Flow Hedging | Interest rate derivative contracts
Derivative [Line Items]
Amount of (gain) reclassified from AOCI into income	2	(4)
Fuel and oil
Derivative [Line Items]
Derivatives designated as hedging instruments	(28)	(203)
Fuel and oil | Cash Flow Hedging | Fuel derivative contracts
Derivative [Line Items]
Amount of (gain) reclassified from AOCI into income	(28)	(203)
Fuel and oil | Cash Flow Hedging | Interest rate derivative contracts
Derivative [Line Items]
Amount of (gain) reclassified from AOCI into income	0	0
Other operating expenses
Derivative [Line Items]
Derivatives designated as hedging instruments	2	2
Other operating expenses | Cash Flow Hedging | Fuel derivative contracts
Derivative [Line Items]
Amount of (gain) reclassified from AOCI into income	0	0
Other operating expenses | Cash Flow Hedging | Interest rate derivative contracts
Derivative [Line Items]
Amount of (gain) reclassified from AOCI into income	$ 2	$ 2

Financial Derivative Instrume_9

Financial Derivative Instruments - (Gain) Loss by Hedging Relationship (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fuel derivative contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
(Gain) loss recognized in AOCI on derivatives, net of tax	$ 127	$ (658)
Cash Flow Hedging | Fuel derivative contracts
Derivative Instruments, Gain (Loss) [Line Items]
(Gain) loss recognized in AOCI on derivatives, net of tax	125	(654)
Cash Flow Hedging | Interest rate derivative contracts
Derivative Instruments, Gain (Loss) [Line Items]
(Gain) loss recognized in AOCI on derivatives, net of tax	2	(4)
Not Designated as Hedging Instrument | Fuel derivative contracts
Derivative Instruments, Gain (Loss) [Line Items]
(Gain) loss recognized in income on derivatives	$ 0	$ 34

Financial Derivative Instrum_10

Financial Derivative Instruments - Premiums for Fuel Derivative Contracts (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fuel derivative contracts | Designated as Hedging Instrument | Fuel and oil
Derivative [Line Items]
Premium expense recognized in income on derivatives	$ 30	$ 26

Financial Derivative Instrum_11

Financial Derivative Instruments - Fair Values of Fuel Derivatives Amounts Posted as Collateral (Details) $ in Millions	Mar. 31, 2023 USD ($)
If credit rating is non-investment grade, fair value of fuel derivative level at which:
Maximum sum of derivatives of counterparty to be included in other	$ 16
Letter of credit substitution percentage	100%
Cash collateral percentage	100%
Fuel derivative contracts
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	$ 395
Cash collateral held from CP	76
Fuel derivative contracts | Counterparty A
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	96
Cash collateral held from CP	76
Fuel derivative contracts | Counterparty A | Minimum
If credit rating is investment grade, fair value of fuel derivative level at which:
Cash is provided to CP	(100)
Cash is received from CP	0
Fuel derivative contracts | Counterparty B
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	51
Cash collateral held from CP	0
Fuel derivative contracts | Counterparty B | Minimum
If credit rating is investment grade, fair value of fuel derivative level at which:
Cash is provided to CP	(50)
Cash is received from CP	150
Fuel derivative contracts | Counterparty C
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	78
Cash collateral held from CP	0
Fuel derivative contracts | Counterparty C | Minimum
If credit rating is investment grade, fair value of fuel derivative level at which:
Cash is provided to CP	(75)
Cash is received from CP	250
Fuel derivative contracts | Counterparty D
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	23
Cash collateral held from CP	0
Fuel derivative contracts | Counterparty D | Minimum
If credit rating is investment grade, fair value of fuel derivative level at which:
Cash is provided to CP	(125)
Cash is received from CP	125
Fuel derivative contracts | Counterparty E
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	55
Cash collateral held from CP	0
Fuel derivative contracts | Counterparty E | Minimum
If credit rating is investment grade, fair value of fuel derivative level at which:
Cash is provided to CP	(40)
Cash is received from CP	100
Fuel derivative contracts | Counterparty F
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	29
Cash collateral held from CP	0
Fuel derivative contracts | Counterparty F | Minimum
If credit rating is investment grade, fair value of fuel derivative level at which:
Cash is provided to CP	(65)
Cash is received from CP	70
Fuel derivative contracts | Counterparty G
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	48
Cash collateral held from CP	0
Fuel derivative contracts | Counterparty G | Minimum
If credit rating is investment grade, fair value of fuel derivative level at which:
Cash is provided to CP	(100)
Cash is received from CP	100
Fuel derivative contracts | Counterparty Other
Schedule Of Fair Values Of Fuel Derivatives Amounts Posted As Collateral And Collateral Posting Thresholds [Line Items]
Fair value of fuel derivatives	15
Cash collateral held from CP	$ 0

Comprehensive Income (Loss) - D

Comprehensive Income (Loss) - Differences between Net Income and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Condensed Statement of Income Captions [Line Items]
NET LOSS	$ (159)	$ (278)
Total other comprehensive income (loss)	(147)	503
COMPREHENSIVE INCOME (LOSS)	(306)	225
Fuel derivative contracts
Condensed Statement of Income Captions [Line Items]
Unrealized gain (loss) on derivative instruments, net of deferred taxes	(147)	498
Derivative deferred taxes	(44)	151
Interest rate derivatives
Condensed Statement of Income Captions [Line Items]
Unrealized gain (loss) on derivative instruments, net of deferred taxes	0	5
Derivative deferred taxes	$ 0	$ 2

Comprehensive Income (Loss) - S

Comprehensive Income (Loss) - Schedule of AOCI Components (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 10,687
Changes in fair value	(127)
Reclassification to earnings	(20)
Balance at end of period	10,302
Accumulated other comprehensive income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	344
Balance at end of period	197
Fuel and Interest Rate Derivatives | Fuel derivative contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	305
Changes in fair value	(163)
Reclassification to earnings	(28)
Balance at end of period	114
Fuel and Interest Rate Derivatives | Interest rate derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(32)
Changes in fair value	(2)
Reclassification to earnings	2
Balance at end of period	(32)
Defined benefit plan items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	170
Balance at end of period	170
Deferred tax impact
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(99)
Changes in fair value	38
Reclassification to earnings	6
Balance at end of period	$ (55)

Comprehensive Income (Loss) - R

Comprehensive Income (Loss) - Reclassifications (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Fuel and oil	$ 1,547	$ 1,004
Less: Tax expense	(46)	(98)
Interest expense	66	93
Net loss	(159)	$ (278)
Reclassification to earnings
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Net loss	(20)
Fuel derivative contracts | Fuel and Interest Rate Derivatives | Reclassification to earnings
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Fuel and oil	(28)
Less: Tax expense	(6)
Net loss	(22)
Interest rate derivatives | Fuel and Interest Rate Derivatives | Reclassification to earnings
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: Tax expense	0
Interest expense	2
Net loss	$ 2

Revenue - Passenger Revenue Bre

Revenue - Passenger Revenue Breakout (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Operating revenue	$ 5,706	$ 4,694
Passenger
Disaggregation of Revenue [Line Items]
Operating revenue	5,105	4,135
Passenger non-loyalty
Disaggregation of Revenue [Line Items]
Operating revenue	4,082	3,364
Passenger loyalty - air transportation
Disaggregation of Revenue [Line Items]
Operating revenue	825	624
Passenger ancillary sold separately
Disaggregation of Revenue [Line Items]
Operating revenue	$ 198	$ 147

Revenue - Air Traffic Liability

Revenue - Air Traffic Liability Breakout (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Air traffic liability - passenger travel and ancillary passenger services	$ 4,007	$ 3,061
Air traffic liability - loyalty program	5,190	5,189	$ 4,884	$ 4,789
Total Air traffic liability	$ 9,197	$ 8,250	$ 8,610	$ 7,725

Revenue - Air Traffic Liabili_2

Revenue - Air Traffic Liability - Loyalty Program Rollforward (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Change in Contract With Customer, Liability [Roll Forward]
Beginning balance	$ 5,189	$ 4,789
Amounts deferred associated with points awarded	846	736
Ending balance	5,190	4,884
Passenger Customer
Change in Contract With Customer, Liability [Roll Forward]
Revenue recognized from points redeemed	(825)	(624)
Other
Change in Contract With Customer, Liability [Roll Forward]
Revenue recognized from points redeemed	$ (20)	$ (17)

Revenue - Air Traffic Liabili_3

Revenue - Air Traffic Liability Rollforward (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Change in Contract With Customer, Liability [Roll Forward]
Beginning balance	$ 8,250	$ 7,725
Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty)	6,072	5,038
Revenue from amounts included in contract liability opening balances	(2,568)	(1,881)
Revenue from current period sales	(2,557)	(2,272)
Ending balance	$ 9,197	$ 8,610

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Residual travel funds (as a percent)	700%		900%
Total operating revenues	$ 5,706	$ 4,694
Chase Bank USA Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total operating revenues	$ 521	$ 486

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
NUMERATOR:
Net loss	$ (159)	$ (278)
Add: Interest expense	0	0
Net loss attributable to common stockholders	$ (159)	$ (278)
DENOMINATOR:
Weighted-average shares outstanding, Basic (in shares)	594	592
Diluted (in shares)	594	592
NET LOSS PER SHARE:
BASIC (in USD per share)	$ (0.27)	$ (0.47)
Diluted (in USD per share)	$ (0.27)	$ (0.47)
Convertible Debt Securities
Antidilutive Securities Excluded from Computation of Earnings Per Share
Potentially dilutive amounts excluded from calculations (in shares)	42	47
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share
Potentially dilutive amounts excluded from calculations (in shares)	3	0
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share
Potentially dilutive amounts excluded from calculations (in shares)	1	0

Fair Value Measurements - Measu

Fair Value Measurements - Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Assets
Treasury bills	$ 3,116	$ 2,226
Fuel derivatives:
Interest rate derivatives (see Note 3)	13	14
Equity Securities	236	235
Total assets	12,318	13,053
Options Contracts
Fuel derivatives:
Option contracts	395	512
Certificates of deposit
Assets
Investments	150	124
Time deposits
Assets
Investments	49	450
Cash Equivalents
Assets
Cash equivalents	7,497	9,040
Commercial paper
Assets
Cash equivalents	224	179
Certificates of deposit
Assets
Cash equivalents	13	23
Time deposits
Assets
Cash equivalents	625	250
Quoted prices in active markets for identical assets (Level 1)
Assets
Treasury bills	3,116	2,226
Fuel derivatives:
Interest rate derivatives (see Note 3)	0	0
Equity Securities	236	235
Total assets	10,849	11,501
Quoted prices in active markets for identical assets (Level 1) | Options Contracts
Fuel derivatives:
Option contracts	0	0
Quoted prices in active markets for identical assets (Level 1) | Certificates of deposit
Assets
Investments	0	0
Quoted prices in active markets for identical assets (Level 1) | Time deposits
Assets
Investments	0	0
Quoted prices in active markets for identical assets (Level 1) | Cash Equivalents
Assets
Cash equivalents	7,497	9,040
Quoted prices in active markets for identical assets (Level 1) | Commercial paper
Assets
Cash equivalents	0	0
Quoted prices in active markets for identical assets (Level 1) | Certificates of deposit
Assets
Cash equivalents	0	0
Quoted prices in active markets for identical assets (Level 1) | Time deposits
Assets
Cash equivalents	0	0
Significant other observable inputs (Level 2)
Assets
Treasury bills	0	0
Fuel derivatives:
Interest rate derivatives (see Note 3)	13	14
Equity Securities	0	0
Total assets	1,074	1,040
Significant other observable inputs (Level 2) | Options Contracts
Fuel derivatives:
Option contracts	0	0
Significant other observable inputs (Level 2) | Certificates of deposit
Assets
Investments	150	124
Significant other observable inputs (Level 2) | Time deposits
Assets
Investments	49	450
Significant other observable inputs (Level 2) | Cash Equivalents
Assets
Cash equivalents	0	0
Significant other observable inputs (Level 2) | Commercial paper
Assets
Cash equivalents	224	179
Significant other observable inputs (Level 2) | Certificates of deposit
Assets
Cash equivalents	13	23
Significant other observable inputs (Level 2) | Time deposits
Assets
Cash equivalents	625	250
Significant unobservable inputs (Level 3)
Assets
Treasury bills	0	0
Fuel derivatives:
Interest rate derivatives (see Note 3)	0	0
Equity Securities	0	0
Total assets	395	512
Significant unobservable inputs (Level 3) | Options Contracts
Fuel derivatives:
Option contracts	395	512
Significant unobservable inputs (Level 3) | Certificates of deposit
Assets
Investments	0	0
Significant unobservable inputs (Level 3) | Time deposits
Assets
Investments	0	0
Significant unobservable inputs (Level 3) | Cash Equivalents
Assets
Cash equivalents	0	0
Significant unobservable inputs (Level 3) | Commercial paper
Assets
Cash equivalents	0	0
Significant unobservable inputs (Level 3) | Certificates of deposit
Assets
Cash equivalents	0	0
Significant unobservable inputs (Level 3) | Time deposits
Assets
Cash equivalents	$ 0	$ 0

Fair Value Measurement - Fair V

Fair Value Measurement - Fair Value Assets and Liabilities Measured on Recurring Basis with Unobservable Inputs (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Fuel derivative contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Purchases	$ 104
Fuel derivative contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	512
Included in other comprehensive income	(163)
Settlements	(58)
Ending Balance	395
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 March 31, 2023	$ (145)

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative Information about Level 3 Fair Value (Details) - Significant unobservable inputs (Level 3) - Measurement Input, Option Volatility	Mar. 31, 2023
Second quarter 2023 | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.26
Second quarter 2023 | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.42
Second quarter 2023 | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.35
Fourth quarter 2023 | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.34
Fourth quarter 2023 | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.42
Fourth quarter 2023 | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.38
2024 | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.31
2024 | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.42
2024 | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.33
2025 | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.30
2025 | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.31
2025 | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.30
Third quarter 2023 | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.32
Third quarter 2023 | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.43
Third quarter 2023 | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (in years)	0.38

Fair Value Measurements - Carry

Fair Value Measurements - Carrying and Estimated Fair Value of Debt (Details) - USD ($) $ in Millions	Mar. 31, 2023	May 01, 2020
Convertible Debt
Debt Instrument [Line Items]
Stated interest rate		1.25%
Convertible Debt | 1.25% Convertible Notes due 2025
Debt Instrument [Line Items]
Stated interest rate	1.25%
Carrying value	$ 1,611
Unsecured Debt | 5.25% Notes due 2025
Debt Instrument [Line Items]
Stated interest rate	5.25%
Carrying value	$ 1,302
Unsecured Debt | 3.00% Notes due 2026
Debt Instrument [Line Items]
Stated interest rate	3%
Carrying value	$ 300
Unsecured Debt | 3.45% Notes due 2027
Debt Instrument [Line Items]
Stated interest rate	3.45%
Carrying value	$ 300
Unsecured Debt | 5.125% Notes due 2027
Debt Instrument [Line Items]
Stated interest rate	5.125%
Carrying value	$ 1,727
Unsecured Debt | 7.375% Debentures due 2027
Debt Instrument [Line Items]
Stated interest rate	7.375%
Carrying value	$ 113
Unsecured Debt | 2.625% Notes due 2030
Debt Instrument [Line Items]
Stated interest rate	2.625%
Carrying value	$ 500
Unsecured Debt | 1.000% PSP1 Loan due 2030
Debt Instrument [Line Items]
Stated interest rate	1%
Carrying value	$ 976
Unsecured Debt | 1.000% PSP2 Loan due 2031
Debt Instrument [Line Items]
Stated interest rate	1%
Carrying value	$ 566
Unsecured Debt | 1.000% PSP3 Loan due 2031
Debt Instrument [Line Items]
Stated interest rate	1%
Carrying value	$ 526
Level 2 | Convertible Debt | 1.25% Convertible Notes due 2025
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	1,831
Level 2 | Unsecured Debt | 5.25% Notes due 2025
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	1,308
Level 2 | Unsecured Debt | 3.00% Notes due 2026
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	281
Level 2 | Unsecured Debt | 3.45% Notes due 2027
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	281
Level 2 | Unsecured Debt | 5.125% Notes due 2027
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	1,727
Level 2 | Unsecured Debt | 7.375% Debentures due 2027
Debt Instrument [Line Items]
Loans payable, Estimated Fair Value	121
Level 2 | Unsecured Debt | 2.625% Notes due 2030
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	427
Level 3 | Unsecured Debt | 1.000% PSP1 Loan due 2030
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	866
Level 3 | Unsecured Debt | 1.000% PSP2 Loan due 2031
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	487
Level 3 | Unsecured Debt | 1.000% PSP3 Loan due 2031
Debt Instrument [Line Items]
Notes payable, Estimated Fair Value	$ 448

Supplemental Financial Inform_3

Supplemental Financial Information - Accounts and Other Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Trade receivables	$ 64	$ 117
Credit card receivables	185	85
Business partners and other suppliers	545	478
Taxes receivable	129	133
Fuel hedging and receivables	15	34
Other	312	193
Accounts and other receivables	$ 1,250	$ 1,040

Supplemental Financial Inform_4

Supplemental Financial Information - Other Assets (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Derivative contracts	$ 169	$ 174
Intangible assets, net	295	296
Equity securities	236	261
Other	198	124
Other assets	$ 898	$ 855

Supplemental Financial Inform_5

Supplemental Financial Information - Accounts Payable (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable trade	$ 272	$ 277
Salaries, withholdings and payroll taxes	368	456
Ticket taxes and fees	434	242
Aircraft maintenance payable	91	65
Fuel payable	113	188
Dividends payable	0	107
Customer reimbursements and refunds	17	311
Accrued third party services	240	196
Other payable	194	162
Accounts payable	$ 1,729	$ 2,004

Supplemental Financial Inform_6

Supplemental Financial Information - Accrued Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Voluntary Separation Program	$ 69	$ 72
Profitsharing and savings plans	32	167
Vacation pay	495	484
Health	289	261
Workers compensation	166	164
Property and income taxes	53	37
Interest	164	45
Bonus and incentive pay	626	563
Other	224	250
Accrued liabilities	$ 2,118	$ 2,043

Supplemental Financial Inform_7

Supplemental Financial Information - Other Non-Current Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Voluntary Separation Program	$ 125	$ 147
Postretirement obligation	242	241
Other deferred compensation	326	331
Other	243	250
Other noncurrent liabilities	$ 936	$ 969

Commitments and contingencies -

Commitments and contingencies - Narrative (Details) $ in Millions	1 Months Ended	3 Months Ended
	Apr. 27, 2023 USD ($) aircraft	Mar. 31, 2023 USD ($) aircraft	Mar. 31, 2022 gate
Subsequent Event
Other Commitments [Line Items]
Construction obligation	$ 1,700
Convertible Debt
Other Commitments [Line Items]
Initial conversion ratio		0.0259909
Aircraft
Other Commitments [Line Items]
2023		$ 1,500
2022		1,600
2025		993
2026		1,400
2027		1,100
2028		1,300
Thereafter		$ 4,500
-7 Firm Orders
Other Commitments [Line Items]
Exercised | aircraft		15
-7 Firm Orders | Subsequent Event
Other Commitments [Line Items]
Exercised | aircraft	11
-8 Firm Orders
Other Commitments [Line Items]
MAX aircrafts to be delivered this year | aircraft		70
-8 Firm Orders | Subsequent Event
Other Commitments [Line Items]
Exercised | aircraft	8
B737-7Max | Aircraft
Other Commitments [Line Items]
2022		$ 956
Long-term Purchase Commitment | aircraft		46
William P. Hobby Airport
Other Commitments [Line Items]
New airport gates | gate			7
Projected airport improvement costs		$ 250

Commitment and Contingencies -

Commitment and Contingencies - Long Term Purchase Commitments (Details)	Mar. 31, 2023 aircraft
Long-term Purchase Commitment [Line Items]
2023	136
2024	86
2025	86
2026	85
2027	36
2028	30
2029	50
2030	55
2031	0
Total	564
2022 Contractual Deliveries
Long-term Purchase Commitment [Line Items]
2023	46
2023 Contractual Deliveries
Long-term Purchase Commitment [Line Items]
2023	90
-7 Firm Orders
Long-term Purchase Commitment [Line Items]
2023	31
2024	45
2025	30
2026	30
2027	15
2028	15
2029	20
2030	0
2031	0
Total	186
-7 Firm Orders | 2022 Contractual Deliveries
Long-term Purchase Commitment [Line Items]
2023	14
Number of aircrafts to be delivered	14
-7 Firm Orders | 2023 Contractual Deliveries
Long-term Purchase Commitment [Line Items]
2023	17
-8 Firm Orders
Long-term Purchase Commitment [Line Items]
2023	105
2024	11
2025	0
2026	15
2027	15
2028	15
2029	30
2030	55
2031	0
Total	246
-8 Firm Orders | 2022 Contractual Deliveries
Long-term Purchase Commitment [Line Items]
2023	32
Number of aircrafts to be delivered	32
-8 Firm Orders | 2023 Contractual Deliveries
Long-term Purchase Commitment [Line Items]
2023	73
Number of aircrafts to be delivered	30
-7 or -8 Options
Long-term Purchase Commitment [Line Items]
2023	0
2024	30
2025	56
2026	40
2027	6
2028	0
2029	0
2030	0
2031	0
Total	132
-7 or -8 Options | 2022 Contractual Deliveries
Long-term Purchase Commitment [Line Items]
Number of aircrafts to be delivered	46
-7 or -8 Options | 2023 Contractual Deliveries
Long-term Purchase Commitment [Line Items]
Number of aircrafts to be delivered	70

Financing Activities - Narrativ

Financing Activities - Narrative (Details)		3 Months Ended
	Dec. 05, 2022 USD ($) aircraft	Mar. 31, 2023 USD ($) aircraft	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) aircraft	May 01, 2020 USD ($) $ / shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Capital expenditures		$ 1,046,000,000	$ 510,000,000
Payments of long-term debt and finance lease obligations		$ 59,000,000	$ 93,000,000
Boeing 737-700 | Air Transportation Equipment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aircrafts to be purchased | aircraft	39	8
Aircrafts to be purchased | aircraft		39		31
Capital expenditures	$ 88,000,000
Payments of long-term debt and finance lease obligations		$ 50,000,000
Total lease obligations		$ 38,000,000
Number of leased aircrafts | aircraft		28
Gain (loss) on sale of leased aircraft		$ 0
Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount		$ 1,600,000,000		$ 1,600,000,000	$ 2,300,000,000
Stated interest rate					1.25%
Initial conversion price (in USD per share) | $ / shares					$ 38.48
Amortization period (in years)		5 years
Convertible Debt | 1.25% Convertible Notes due 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate		1.25%
Amounts outstanding		$ 1,611,000,000
Notes Due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Effective interest rate		1.90%
Line of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Borrowing capacity		$ 1,000,000,000
Amounts outstanding		$ 0

Financing Activities - Interest

Financing Activities - Interest Expense (Details) - Convertible Debt - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Non-cash amortization of debt issuance costs	$ 3	$ 3
Contractual coupon interest	5	6
Total interest expense	$ 8	$ 9

Financing Activities - Schedule

Financing Activities - Schedule of Debt Extinguishment (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	May 01, 2020
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ 0	$ 72
Convertible Debt And Unsecured Debt
Debt Instrument [Line Items]
Cash paid for debt and interest		264
Principal repayment		194
Loss on extinguishment of debt		72
Non-cash amortization of debt discount and (issuance) costs		(3)
Hedged items		1
Convertible Debt
Debt Instrument [Line Items]
Stated interest rate			1.25%
Hedged items	$ 8	9
1.25% Convertible Notes due 2025 | Convertible Debt
Debt Instrument [Line Items]
Stated interest rate	1.25%
Cash paid for debt and interest		230
Principal repayment		164
Loss on extinguishment of debt		69
Non-cash amortization of debt discount and (issuance) costs		(3)
Hedged items		0
5.125% Notes due 2027 | Unsecured Debt
Debt Instrument [Line Items]
Stated interest rate	5.125%
Cash paid for debt and interest		34
Principal repayment		30
Loss on extinguishment of debt		3
Non-cash amortization of debt discount and (issuance) costs		0
Hedged items		$ 1

Uncategorized Items - luv-20230

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2020-06 [Member]