Question 6 - Comparing Loyalty Programs In this question, we will examine financial information from United Airlines Holdings, Inc. (December 31, 2021) and Delta Air Lines, Inc. (December 31, 2021). Find their most recent financial statements. In the following questions, you will make a rough comparison of the loyalty programs of these two airline companies (along with Southwest's we saw in class). Although all airline companies have similar loyalty programs, it is difficult to directly compare their terms and objectively conclude which one is more generous than others. As an alternative, you can use financial statement information to assess how the airline companies view their loyalty programs themselves. If an airline company defers a larger portion of the ticket price due to loyalty programs, that can be indirect evidence that the company's loyalty program is more generous. Of course, a lower portion of deferral may be due to fewer customers having joined the loyalty program. However, that is also another indirect evidence of the attractiveness of the company's loyalty program. Use Note 1(d) for United and Note 2 for Delta along with their income statements. (1) How much passenger revenue did United and Delta recognize in fiscal 2021? (2) Based on their notes, how much of the passenger revenue you found in (1) is redemption of loyalty mileage (realization of deferred revenue)? (3) From your answers in (1) and (2), how much is passenger revenue immediately recognized at the time of flight (corresponding to $11,377 million for Southwest in 2021)? (4) Based on their notes, how much revenue is deferred at the time of flight due to the loyalty programs (corresponding to $2,523 million for Southwest in 2021)? (5) From your answers in (3) and (4), what are the proportions of revenue United and Delta are deferring at the time of flight due to their loyalty programs (corresponding to 18.2% for Southwest in 2021)? (6) From your answer in (5), which airline company seems to be most generous in its loyalty program? Question 6 - Comparing Loyalty Programs In this question, we will examine financial information from United Airlines Holdings, Inc. (December 31, 2021) and Delta Air Lines, Inc. (December 31, 2021). Find their most recent financial statements. In the following questions, you will make a rough comparison of the loyalty programs of these two airline companies (along with Southwest's we saw in class). Although all airline companies have similar loyalty programs, it is difficult to directly compare their terms and objectively conclude which one is more generous than others. As an alternative, you can use financial statement information to assess how the airline companies view their loyalty programs themselves. If an airline company defers a larger portion of the ticket price due to loyalty programs, that can be indirect evidence that the company's loyalty program is more generous. Of course, a lower portion of deferral may be due to fewer customers having joined the loyalty program. However, that is also another indirect evidence of the attractiveness of the company's loyalty program. Use Note 1(d) for United and Note 2 for Delta along with their income statements. (1) How much passenger revenue did United and Delta recognize in fiscal 2021? (2) Based on their notes, how much of the passenger revenue you found in (1) is redemption of loyalty mileage (realization of deferred revenue)? (3) From your answers in (1) and (2), how much is passenger revenue immediately recognized at the time of flight (corresponding to $11,377 million for Southwest in 2021)? (4) Based on their notes, how much revenue is deferred at the time of flight due to the loyalty programs (corresponding to $2,523 million for Southwest in 2021)? (5) From your answers in (3) and (4), what are the proportions of revenue United and Delta are deferring at the time of flight due to their loyalty programs (corresponding to 18.2% for Southwest in 2021)? (6) From your answer in (5), which airline company seems to be most generous in its loyalty program