# ASC Topic 908: Airlines Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/908/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:08:49.576Z to 2026-09-10T02:08:57.617Z Record version: sha256:81c6ff6652873828d0b0b85a0bafcf66ee8cce27c7a4358e58a770cb552570e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 908 supplies only incremental, industry-specific guidance for airline entities; those entities must otherwise follow all applicable GAAP outside the Topic (908-10-15-1), and the guidance reaches passenger and cargo carriers, joint operations, and carriers providing ancillary services (maintenance, food service) to others (908-10-15-2; 908-10-05-2). The Overall subtopic (908-10) is essentially scope plus background, then routes the reader to subtopics on Segment Reporting, Inventory, Intangibles—Takeoff and Landing Slots, Property, Plant, and Equipment, Compensation—General, Other Expenses, and Nonmonetary Transactions (the revenue subparagraph 908-10-05-1(f) was superseded by ASU 2014-09, so airline revenue now follows Topic 606). The background explains why airlines are distinctive: an unusual revenue cycle of advance and third-party ticket sales where the sale date rarely matches the service date and tickets may be refundable, exchangeable, or usable on other carriers (908-10-05-3); mobile flight equipment that complicates custody and control (908-10-05-5); carrier-designed, FAA-demonstrated maintenance programs (908-10-05-6); and flight-crew compensation that varies with flying status, equipment, hours, time of day, and seniority (908-10-05-7). The single most important idea: Topic 908 is a supplement, not a substitute, for general GAAP. Source downloaded (UTC): 2026-09-10T02:08:49.576Z to 2026-09-10T02:08:57.617Z Record version: sha256:81029a3b6320955295923ad44cb907169ade4c5030b737d46a243dff58a2bf00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 908-10: Airlines — Overall ### Machine-generated study aids ```json { "summary": "ASC 908-10 is the Overall subtopic of the Airlines industry Topic; it lists the industry Subtopics (segment reporting, inventory, takeoff and landing slots, PP&E, compensation, other expenses, nonmonetary transactions) and describes the operating and accounting characteristics that make airlines distinctive. Its only substantive rule is scope: Topic 908 supplies incremental industry-specific guidance for airline entities, which must still comply with all other applicable GAAP (908-10-15-1). Background paragraphs highlight the complex revenue cycle (advance ticket sales, third-party sellers, refundable/exchangeable tickets), mobile flight equipment, maintenance programs, and flight-crew compensation.", "key_points": [ "Topic 908 contains only incremental industry-specific guidance for airline entities; those entities must also comply with all applicable standards outside the Topic (908-10-15-1).", "The Topic applies to all entities in the airline industry—providers of passenger and cargo carrier services, often as joint operations, plus ancillary services such as maintenance or food service for other carriers (908-10-15-2; 908-10-05-2).", "The Airlines Topic comprises Subtopics on Overall, Segment Reporting, Inventory, Intangibles—Takeoff and Landing Slots, Property, Plant, and Equipment, Compensation—General, Other Expenses, and Nonmonetary Transactions; the revenue subparagraph 908-10-05-1(f) was superseded by ASU 2014-09.", "The airline revenue cycle is the industry's most unusual feature: tickets are sold in advance and often through third parties, the sale date rarely coincides with the service date, tickets may be used on other carriers, and terms range from refundable to nonrefundable and nonexchangeable (908-10-05-3).", "Because aircraft and other flight equipment constantly change locations, custody and control responsibilities differ substantially from those for nonmobile fixed assets (908-10-05-5).", "Maintenance timing and extent are set by each carrier through experience-based studies demonstrating airworthiness to the FAA, and may be performed in-house at specially equipped facilities (908-10-05-6).", "Flight personnel compensation is a significant operating expense and varies with flying status, equipment type, hours flown, day versus night flights, and seniority (908-10-05-7)." ], "categories": [ "Industry-specific", "Revenue", "Inventory and PP&E", "Compensation and benefits" ], "audience_level": "introductory", "student_note": "Remember that industry Topics like 908 layer on top of, not in place of, general GAAP—the common mistake is assuming an airline-specific rule overrides a general standard when none exists. Also note the old airline revenue recognition guidance was superseded by ASU 2014-09, so ticket sales, breakage, and frequent flyer programs are now analyzed under ASC 606.", "related_topics": [ "606", "908-330", "908-350", "908-360", "908-715", "845" ], "key_concepts": [ "airline industry scope", "incremental industry-specific guidance", "advance ticket sales", "revenue cycle", "flight equipment", "takeoff and landing slots", "maintenance programs", "flight crew compensation" ] } ``` Source downloaded (UTC): 2026-09-10T02:08:49.576Z to 2026-09-10T02:08:49.576Z Record version: sha256:a2e682abe31f9f738dffd13c770a83c4ff06e3e9c23157c4f6a5c13327bd0da9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 908-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/908/10/#00-status) SEC content: no ##### [908-10-00-1](https://asc.understandingaccounting.org/asc/908/10/#908-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:49.576Z to 2026-09-10T02:08:49.576Z Record version: sha256:0494d3cef1035d1fb6942303a89ddfc32b2bd29c1bb5dafb91ed449c4ceb79e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
908-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
908-10-05-3AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T02:08:51.822Z to 2026-09-10T02:08:51.822Z Record version: sha256:dbd80c044981fcf28b87a327985d2aff6463f997a251b070ce1a9ac2d119ebf8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 908-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/908/10/#05-overview-and-background) SEC content: no ##### [908-10-05-1](https://asc.understandingaccounting.org/asc/908/10/#908-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:51.822Z to 2026-09-10T02:08:51.822Z Record version: sha256:0b1f890061dfa65d44f00a9cb81f33642e3ef1f800226c0316a8a6c2c1b61e71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Airlines Topic includes the following Subtopics relating specifically to entities in the airline industry: 1. a Overall 2. b Segment Reporting 3. c Inventory 4. d Intangibles—Takeoff and Landing Slots 5. e Property, Plant, and Equipment 6. f [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 7. g Compensation—General 8. h Other Expenses 9. i Nonmonetary Transactions. Each Subtopic provides background on the guidance provided. ##### [908-10-05-2](https://asc.understandingaccounting.org/asc/908/10/#908-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:51.822Z to 2026-09-10T02:08:51.822Z Record version: sha256:7f934c183231aeb3009d205777c146513bd8833aad326a851cd83aeb71bc5a55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities in the airline industry primarily provide carrier services for passengers and cargo, frequently as joint operations. Other services, such as maintenance or food service for other carriers, may also be provided. ##### [908-10-05-3](https://asc.understandingaccounting.org/asc/908/10/#908-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:51.822Z to 2026-09-10T02:08:51.822Z Record version: sha256:be9f4a70d8db9e45ee926459ee6db63911e737dbb7e005d8d0e7c82cdb0d4639 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The most unusual characteristic of the airline industry is its revenue cycle. Sales may be made at numerous locations by either the carrier or third parties (travel agents or other carriers); for some carriers, third parties handle a substantial portion of the ticket transactions. [Paper tickets](https://asc.understandingaccounting.org/glossary/p/#paper-ticket "A printed document that serves as evidence of payment of the fare for air transportation. It authorizes carriage between the points and via the routing indicated and also shows the passenger's name, class of service, carrier(s), flight number(s), dates of travel, and all conditions of the contract of carriage. Generally, this takes the form of the standard Air Traffic Conference ticket, which is composed of an auditor's coupon, agent's coupon, flight coupon(s), and passenger's coupon. The auditor's coupon is the initial document used to record a sale. Flight coupons represent each flight segment (leg) of the passenger's itinerary. Flight coupons are lifted (detached from the ticket booklet) by the carrier providing the transportation service at the boarding point as evidence of the service rendered, although today this process is entirely electronic for the vast majority of ticket sales and boarding transactions.") and [electronic tickets](https://asc.understandingaccounting.org/glossary/e/#electronic-ticket "An electronic (or e-ticket) reflects the passenger's itinerary in electronic form. Like paper tickets, e-tickets contain information for each flight segment of a passenger's itinerary. However, while a paper ticket consists of multiple coupons that are used to record a sale and to document the service rendered, e-tickets exist only as a digital record in the airline computer system and contain no paper coupons. Instead, the airline's host reservation system or global distribution system (GDS) produces an e-ticket sales record for each sale transaction, which is used to record a sale of e-ticket. Boarding documents are issued for e-tickets at check-in, and the carrier documents transportation service at the boarding point by either collecting boarding documents or scanning them as evidence of the service rendered.") usually are sold in advance of the transportation date, and the ticket sales date usually does not coincide with the revenue recognition date (the date that service is provided). Tickets sold are not necessarily used, in whole or in part, on the carrier making the sale, and some tickets are refundable if not used by the customer for up to one year after the sales date. Other tickets are nonrefundable but exchangeable with payment of a fee, and other tickets are nonrefundable and nonexchangeable. The determination of revenue recognized may be complex. ##### [908-10-05-4](https://asc.understandingaccounting.org/asc/908/10/#908-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:51.822Z to 2026-09-10T02:08:51.822Z Record version: sha256:4820be8d6ffb143df5d881fcb5a1e82fca42d7350a7220f7f2293864ac2becc9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [908-10-05-5](https://asc.understandingaccounting.org/asc/908/10/#908-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:51.822Z to 2026-09-10T02:08:51.822Z Record version: sha256:6c40dde2c140a115eceb4c635bacb0190ae1ee9fff8caaa9bf3bf541f080890c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A major portion of an airline's fixed assets comprises aircraft and other flight equipment. Because such assets are constantly changing locations, the responsibility for physical custody and control of aircraft is substantially different from that of nonmobile fixed assets. ##### [908-10-05-6](https://asc.understandingaccounting.org/asc/908/10/#908-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:51.822Z to 2026-09-10T02:08:51.822Z Record version: sha256:0879c47ede5b8088c0c8f60c17f1e7eef1e16753e3ea18481c3fdd26af91b16d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Maintenance requirements are dictated by the highly sophisticated nature of the industry's equipment. The timing and extent of maintenance procedures are determined by individual carriers using studies based on actual experience that demonstrate [airworthiness](https://asc.understandingaccounting.org/glossary/a/#airworthiness "The ability of a particular aircraft or component part to perform its function satisfactorily through a range of operations determined by the Federal Aviation Administration.") to the Federal Aviation Administration. Maintenance may be provided in-house, which requires maintenance facilities outfitted with specifically designed equipment. ##### [908-10-05-7](https://asc.understandingaccounting.org/asc/908/10/#908-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:51.822Z to 2026-09-10T02:08:51.822Z Record version: sha256:6ea890a4cd73f1729fac09c8d26272d3dbf73c05462b5d4d91cd228107b166e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Compensation of flight personnel usually represents a significant portion of an airline's operating expenses. The amount of compensation is generally dependent on a number of variables, including, among others, flying status, type of equipment flown, hours flown, whether flights are made during the day or at night, and employee seniority. Source downloaded (UTC): 2026-09-10T02:08:54.330Z to 2026-09-10T02:08:54.330Z Record version: sha256:10e809193117e953ad79ec66e23423f60ce306fc6e908cec2e34fd1a9c92ec25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 908-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/908/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [908-10-15-1](https://asc.understandingaccounting.org/asc/908/10/#908-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:54.330Z to 2026-09-10T02:08:54.330Z Record version: sha256:3546447035578546f994bf82a64b9288860b6c273382a1a986bafcd718cfdc37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Airlines Topic only provide incremental industry-specific guidance for the entities defined in the Scope Sections of the individual Subtopics. Entities within the scope of this Topic shall also comply with the applicable standards not included in this Topic. #### Entities ##### [908-10-15-2](https://asc.understandingaccounting.org/asc/908/10/#908-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:54.330Z to 2026-09-10T02:08:54.330Z Record version: sha256:79c932c76b24a94f300a040f26e98dff78f4abba9139022aab5bca5f2fc500c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic provides guidance for all entities in the airline industry. See Section 908-10-05 for a description of such entities and their operations.