Delivered industry-leading operational
performance, underpinning trusted brand and customer
loyalty
Record June quarter revenue with mid-teens
operating margin and strong cash generation
Continued debt repayment, progressing
balance sheet toward investment grade metrics
Announced a 50 percent increase to dividend
payment beginning in September quarter
Reiterating full year guide for EPS of
$6 to $7 and free cash flow of $3 to $4
billion
ATLANTA, July 11,
2024 /PRNewswire/ -- Delta Air Lines (NYSE: DAL)
today reported financial results for the June quarter and provided
its outlook for the September quarter. Highlights of the June
quarter, including both GAAP and adjusted metrics, are on page five
and incorporated here.
"Thanks to the incredible work of our 100,000 people, Delta is
delivering industry-leading operational performance and
best-in-class service for our customers. We delivered record
June quarter revenue and pre-tax income of $2 billion with a 15 percent operating
margin. Our people are the best in the industry, and we are
pleased to recognize their efforts with more than $640 million accrued in the first half toward
next year's profit sharing," said Ed
Bastian, Delta's chief executive officer.
"For the September quarter, we expect a double-digit operating
margin and a pre-tax profit of approximately $1.5 billion. With strong first half
results and visibility into the second half, we remain confident in
our full-year guidance."
June Quarter 2024 GAAP Financial
Results
- Operating revenue of $16.7
billion
- Operating income of $2.3 billion
with an operating margin of 13.6 percent
- Pre-tax income of $1.8 billion
with a pre-tax margin of 10.6 percent
- Earnings per share of $2.01
- Operating cash flow of $2.5
billion
- Payments on debt and finance lease obligations of $1.4 billion
- Total debt and finance lease obligations of $18.0 billion at quarter end
June Quarter 2024 Adjusted Financial
Results
- Operating revenue of $15.4
billion, 5.4 percent higher than the June quarter 2023
- Operating income of $2.3 billion
with an operating margin of 14.7 percent
- Pre-tax income of $2.0 billion
with a pre-tax margin of 13.0 percent
- Earnings per share of $2.36
- Operating cash flow of $2.5
billion
- Free cash flow of $1.3
billion
- Adjusted debt to EBITDAR of 2.8x, down from 3.0x at the end of
2023
- Return on invested capital of 13.1 percent
Financial Guidance1
|
FY 2024
Forecast
|
Earnings Per
Share
|
$6 - $7
|
Free Cash Flow
($B)
|
$3 - $4
|
Adjusted Debt to
EBITDAR
|
2x - 3x
|
|
|
3Q24
Forecast
|
Total Revenue
YoY
|
Up 2% - 4%
|
Operating
Margin
|
11% - 13%
|
Earnings Per
Share
|
$1.70 -
$2.00
|
1Non-GAAP measures; Refer to
Non-GAAP reconciliations for historical comparison figures
|
Additional metrics for financial modeling can be found in the
Supplemental Information section under Quarterly Results on
ir.delta.com.
Revenue Environment and Outlook
"Peak summer travel demand remains strong and Delta is
delivering elevated experiences for our customers. Consistent
with our guidance, we generated record June quarter revenue 5.4
percent higher than the prior year. Diverse revenue streams,
including premium and loyalty, contributed higher growth and
margins, underpinning Delta's industry-leading financial
performance and increasing our financial durability," said
Glen Hauenstein, Delta's
president.
"As our international network and core hubs approach full
restoration and we return to a normal cadence of retiring aircraft,
Delta's capacity growth is decelerating into the second half.
We expect September quarter capacity growth of 5 to 6 percent and
revenue growth of 2 to 4 percent, with sequential improvement in
unit revenue trends through the quarter."
- Record June quarter revenue with leading operational
performance: Delta delivered June quarter revenue that was 5.4
percent higher than 2023, driven by strong demand and best-in-class
operations. Year to date, Delta has led the industry in completion
factor and on-time performance, and operated 39 cancel-free,
brand-perfect days. Adjusted total unit revenue (TRASM) was down
2.6 percent from the prior year.
- Revenue diversification driving Delta's differentiation:
Premium, loyalty and other diversified revenue streams comprised 56
percent of total revenue. Premium revenue grew 10 percent versus
the June quarter 2023, with premium unit revenues positive
year-over-year. Loyalty revenue was up 8 percent, driven by
co-brand spend growth and increasing premium card mix. Remuneration
from American Express for the June quarter was $1.9 billion, approximately 9 percent higher than
2023. Cargo revenue grew 16 percent year-over-year, a significant
improvement from prior trends.
- Corporate travel demand grew at double-digit levels:
Managed corporate travel volumes* have grown double-digits for six
consecutive months, with broad-based demand as all sectors
increased year-over-year. Recent corporate survey results indicate
that 90 percent of companies expect their travel volumes to
increase or stay the same in the September quarter and beyond.
- International performance built on record 2023:
International passenger revenue was 4 percent higher than June
quarter of 2023. Demand across the Transatlantic remains very
strong, with unit revenue in line with last year's record
performance excluding the impact from the summer Olympics in
Paris. Pacific and Latin America accounted for the majority of
international capacity growth on continued network restoration and
improving connectivity with our JV partners.
*Corporate travel
volumes represent the number of tickets sold to corporate
contracted customers, including tickets for travel during and
beyond the referenced time period
|
Cost Performance and Outlook
"For the June quarter, we came in at the midpoint of our
guidance with earnings of $2.36 per
share. Delta's operational excellence drove an incremental
point of capacity growth and unit cost favorability, with non-fuel
unit costs 0.6 percent higher than last year," said Dan Janki, Delta's chief financial
officer. "Growth continues to normalize and our teams are
consistently running a great operation, enabling us to deliver
efficiency. In the September quarter, we expect non-fuel unit
costs to increase 1 to 2 percent year-over-year as capacity growth
moderates."
June Quarter 2024 Cost
Performance
- Operating expense of $14.4
billion and adjusted operating expense of $13.1 billion
- Adjusted non-fuel costs of $9.8
billion
- Non-fuel CASM was 13.14¢, an increase of 0.6 percent
year-over-year
- Adjusted fuel expense of $2.8
billion was up 12 percent year-over-year
- Adjusted fuel price of $2.64 per
gallon increased 5 percent year-over-year with a refinery benefit
of 6¢ per gallon
- Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.3, a
1.1 percent improvement year-over-year
Balance Sheet, Cash and Liquidity
"Through the first half of the year, Delta delivered
$2.7 billion in free cash flow,
enabling $2.1 billion in debt
repayment and a 50 percent increase in our quarterly dividend
beginning in the September quarter," Janki said. "Debt
reduction remains our top financial priority and we are progressing
toward investment grade ratings, with gross leverage improving to
2.8x at the end of the first half."
- Adjusted net debt of $19.2
billion at June quarter end, a reduction of $2.3 billion from the end of 2023
- Payments on debt and finance lease obligations for the June
quarter of $1.4 billion
- Weighted average interest rate of 4.3 percent with 94 percent
fixed rate debt and 6 percent variable rate debt
- Adjusted operating cash flow in the June quarter of
$2.5 billion, and with gross capital
expenditures of $1.2 billion, free
cash flow was $1.3 billion
- Air Traffic Liability ended the quarter at $9.4 billion, up $2.4
billion compared to the end of 2023
June Quarter 2024 Highlights
Operations, Network and Fleet
- Named best U.S. airline by The Points Guy for the sixth
consecutive year based on operational reliability, customer
experience, network, cost and loyalty offerings
- Accepted the 2024 Airline of the Year award from aviation
publication Air Transport World for Delta's outstanding operational
performance, commitment to safety and premium customer service
- Operated the most reliable airline among our competitors,
leading on all key metrics, including completion factor, and
on-time departures and arrivals1
- Took delivery of 11 aircraft in the June quarter, bringing the
total year-to-date to 18, including the A321neo, A220-300 and
A350-900
- Announced an agreement with Riyadh Air to build a partnership
that will expand connectivity and premium travel options across
North America, the Kingdom of Saudi Arabia and beyond, including
future Delta service between the U.S. and King Khalid International
Airport in Riyadh
- Implemented the largest ever international summer schedule in
Delta's history with more than 1,700 weekly flights to 80
international destinations
- Announced the offering of Delta Premium Select on select
JFK-LAX flights beginning in September
- Launched a new route from Seattle to Taipei in June, further expanding Delta's
network in Asia
- Announced two new routes between Florida and Europe with the October launch of Tampa to Amsterdam and Orlando to London, and resumed daily nonstop service to
Tel Aviv from JFK in June
- Delta TechOps was named Best Total Solutions Provider by The145
in their 2024 Top Shop Awards, and honored with a 2024 Grand
Laureate Award by Aviation Week Network
Culture and People
- Accrued $519 million in profit
sharing in the June quarter, resulting in $644 million accrued year-to-date
- Provided a 5 percent base pay increase for eligible employees
worldwide, effective June 1, 2024,
maintaining our philosophy of industry-leading pay for
industry-leading performance
- Named No. 4 in the Fortune ReturnOnLeadership® ranking of the
top 100 companies in the Fortune 500 based on strategic clarity,
leadership alignment, connection to purpose and focused action, the
only airline included in the top 5 rankings
- Named to Glassdoor's Best Led Companies list, the only airline
to make the list
- Delta was honored to partner with the Best Defense Foundation
to charter a flight for 48 WWII veterans back to Normandy,
France to commemorate the 80th
anniversary of D-Day
- Recognized as the No. 1 corporate blood drive sponsor with the
American Red Cross for the seventh consecutive year with a record
15,585 units of blood collected at 373 blood drives in the last 12
months
Customer Experience and Loyalty
- Top-ranked airline by J.D. Power for First Class/Business and
Premium Economy passenger satisfaction
- Named Best Airline in North
America for a fourth consecutive year and ranked No. 1 for
Best Airline Staff for a third consecutive year at the Skytrax
World Airline Awards
- Unveiled the new Delta One Lounge in JFK, the first of its
kind, and spanning 40,000 square feet. The club is the largest and
most premium club in Delta's network, offering customers a variety
of experiences and amenities from fine dining to spa-like wellness
treatments and valet services
- Announced a partnership with Italian luxury brand Missoni to
bring new amenity kits to Delta One passengers, available mid-July
on select flights to Italy and
Paris before launching worldwide in September
- Enhanced Delta Sky Clubs across
the system with expansions at Miami and LaGuardia airports
- Continued to roll out fast, free Wi-Fi for SkyMiles members
across the fleet, bringing the total number of aircraft equipped to
more than 690
- Introduced refreshed menus onboard across all cabins for the
summer, including recipes from award-winning chefs around the
world
- Launched the limited edition Boeing 747 Delta SkyMiles Reserve
Card, made from retired Delta aircraft
Environmental, Social and Governance
- Issued Delta's 2023 ESG Report, which shows how Delta is
prioritizing safety and investing in its people and local
communities, all while advancing a more sustainable future of
travel
- Hosted "Rising with Resilience," the inaugural convening of
cross-divisional diversity, equity and inclusion (DEI) leaders,
influencers and allies
- Recognized by the Port of Seattle through its Sustainable Century Awards
program as having the highest percentage of fuel-efficient aircraft
in use at Seattle-Tacoma International Airport
- Joined a collaborative project between Hartsfield-Jackson
Atlanta International Airport, Airbus and Plug Power to assess the
feasibility of hydrogen fueling at the world's busiest airport
1FlightStats preliminary data for
Delta flights mainline system and for Delta's competitive set (AA,
UA, B6, AS, WN, and DL), from Apr 1 - June 30, 2024. On-time is
defined as A0.
|
June Quarter 2024 Results
June quarter results have been adjusted primarily for
the third-party refinery sales, unrealized gains/losses on
investments and loss on extinguishment of debt as described in the
reconciliations in Note A.
|
GAAP
|
$
Change
|
%
Change
|
($ in millions except
per share and unit costs)
|
2Q24
|
2Q23
|
Operating
income
|
2,267
|
2,491
|
(224)
|
(9) %
|
Operating
margin
|
13.6 %
|
16.0 %
|
(2.4) pts
|
(15) %
|
Pre-tax
income
|
1,773
|
2,317
|
(544)
|
(23) %
|
Pre-tax
margin
|
10.6 %
|
14.9 %
|
(4.3) pts
|
(29) %
|
Net income
|
1,305
|
1,827
|
(522)
|
(29) %
|
Diluted earnings per
share
|
2.01
|
2.84
|
(0.83)
|
(29) %
|
Operating
revenue
|
16,658
|
15,578
|
1,080
|
7 %
|
Total revenue per
available seat mile (TRASM) (cents)
|
22.31
|
22.58
|
(0.27)
|
(1) %
|
Operating
expense
|
14,391
|
13,087
|
1,304
|
10 %
|
Cost per available seat
mile (CASM) (cents)
|
19.28
|
18.97
|
0.31
|
2 %
|
Fuel expense
|
2,813
|
2,516
|
297
|
12 %
|
Average fuel price per
gallon
|
2.64
|
2.52
|
0.12
|
5 %
|
Operating cash
flow
|
2,450
|
2,609
|
(159)
|
(6) %
|
Capital
expenditures
|
1,308
|
1,452
|
(144)
|
(10) %
|
Total debt and finance
lease obligations
|
17,983
|
20,205
|
(2,222)
|
(11) %
|
|
Adjusted
|
$
Change
|
%
Change
|
($ in millions except
per share and unit costs)
|
2Q24
|
2Q23
|
Operating
income
|
2,269
|
2,494
|
(225)
|
(9) %
|
Operating
margin
|
14.7 %
|
17.1 %
|
(2.3) pts
|
(14) %
|
Pre-tax
income
|
2,002
|
2,220
|
(218)
|
(10) %
|
Pre-tax
margin
|
13.0 %
|
15.2 %
|
(2.2) pts
|
(14) %
|
Net income
|
1,528
|
1,723
|
(195)
|
(11) %
|
Diluted earnings per
share
|
2.36
|
2.68
|
(0.32)
|
(12) %
|
Operating
revenue
|
15,407
|
14,613
|
794
|
5.4 %
|
TRASM
(cents)
|
20.64
|
21.18
|
(0.54)
|
(2.6) %
|
Operating
expense
|
13,138
|
12,119
|
1,019
|
8 %
|
Non-fuel
cost
|
9,808
|
9,011
|
797
|
9 %
|
Non-fuel unit cost
(CASM-Ex) (cents)
|
13.14
|
13.06
|
0.08
|
0.6 %
|
Fuel expense
|
2,811
|
2,513
|
298
|
12 %
|
Average fuel price per
gallon
|
2.64
|
2.52
|
0.11
|
5 %
|
Operating cash
flow
|
2,458
|
2,648
|
(190)
|
(7) %
|
Free cash
flow
|
1,274
|
1,094
|
180
|
16 %
|
Gross capital
expenditures
|
1,216
|
1,572
|
(356)
|
(23) %
|
Adjusted net
debt
|
19,170
|
19,841
|
(671)
|
(3) %
|
About Delta Air Lines Through exceptional
service and the power of innovation, Delta Air Lines (NYSE: DAL)
never stops looking for ways to make every trip feel tailored to
every customer.
There are 100,000 Delta people leading the way to deliver a
world-class customer experience on over 4,000 daily flights to more
than 290 destinations on six continents, connecting people to
places and to each other.
Delta served more than 190 million customers in 2023 --
safely, reliably and with industry-leading customer service
innovation – and was recognized by J.D. Power this year for being
No. 1 in First/Business and Premium Economy Passenger Satisfaction.
The airline also was again recognized as North America's most on-time airline by
Cirium.
We remain committed to ensuring that the future of travel is
connected, personalized and enjoyable. Our people's genuine and
enduring motivation is to make every customer feel welcomed and
cared for across every point of their journey with us.
Headquartered in Atlanta,
Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los
Angeles, Mexico City,
Minneapolis-St. Paul, New York-JFK
and LaGuardia, Paris-Charles de
Gaulle, Salt Lake City,
Santiago (Chile), Sao
Paulo, Seattle,
Seoul-Incheon and Tokyo.
As the leading global airline, Delta's mission to connect the
world creates opportunities, fosters understanding and expands
horizons by connecting people and communities to each other and to
their own potential.
Powered by innovative and strategic partnerships with
Aeromexico, Air France-KLM, China
Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet,
Delta brings more choice and competition to customers worldwide.
Delta's premium product line is elevated by its unique partnership
with Wheels Up Experience.
Delta is America's most-awarded airline thanks to the
dedication, passion and professionalism of its people. In addition
to the awards from J.D. Power and Cirium, Delta has been recognized
as the top U.S. airline by the Wall Street Journal; among Fast
Company's Most Innovative Companies; the World's Most Admired
Airline and one of the Best 100 Companies to Work For according to
Fortune; and as one of Glassdoor's Best Places to Work. In
addition, Delta has been named to the Civic 50 by Points of Light
for the past seven years as one of the most community minded
companies in the U.S.
Forward Looking Statements
Statements made in
this press release that are not historical facts, including
statements regarding our estimates, expectations, beliefs,
intentions, projections, goals, aspirations, commitments or
strategies for the future, should be considered "forward-looking
statements" under the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995. Such statements are not
guarantees or promised outcomes and should not be construed as
such. All forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from the estimates, expectations, beliefs, intentions, projections,
goals, aspirations, commitments and strategies reflected in or
suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to, the possible effects
of serious accidents involving our aircraft or aircraft of our
airline partners; breaches or lapses in the security of technology
systems we use and rely on, which could compromise the data stored
within them, as well as failure to comply with evolving global
privacy and security regulatory obligations or adequately address
increasing customer focus on privacy issues and data security;
disruptions in our information technology infrastructure; our
dependence on technology in our operations; increases in the cost
of aircraft fuel; extended disruptions in the supply of aircraft
fuel, including from Monroe Energy, LLC ("Monroe"), a wholly-owned subsidiary of Delta
that operates the Trainer refinery; failure to receive the expected
results or returns from our commercial relationships with airlines
in other parts of the world and the investments we have in certain
of those airlines; the effects of a significant disruption in the
operations or performance of third parties on which we rely;
failure to comply with the financial and other covenants in our
financing agreements; labor issues; the effects on our business of
seasonality and other factors beyond our control, such as changes
in value in our equity investments, severe weather conditions,
natural disasters or other environmental events, including from the
impact of climate change; failure or inability of insurance to
cover a significant liability at Monroe's refinery; failure to comply with
existing and future environmental regulations to which Monroe's refinery operations are subject,
including costs related to compliance with renewable fuel standard
regulations; significant damage to our reputation and brand,
including from exposure to significant adverse publicity or
inability to achieve certain sustainability goals; our ability to
retain senior management and other key employees, and to maintain
our company culture; disease outbreaks, such as the COVID-19
pandemic or similar public health threats, and measures implemented
to combat them; the effects of terrorist attacks, geopolitical
conflict or security events; competitive conditions in the airline
industry; extended interruptions or disruptions in service at major
airports at which we operate or significant problems associated
with types of aircraft or engines we operate; the effects of
extensive government regulation we are subject to; the impact of
environmental regulation, including but not limited to regulation
of hazardous substances, increased regulation to reduce emissions
and other risks associated with climate change, and the cost of
compliance with more stringent environmental regulations; and
unfavorable economic or political conditions in the markets in
which we operate or volatility in currency exchange rates.
Additional information concerning risks and uncertainties that
could cause differences between actual results and forward-looking
statements is contained in our Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the fiscal
year ended December 31, 2023. Caution
should be taken not to place undue reliance on our forward-looking
statements, which represent our views only as of the date of this
press release, and which we undertake no obligation to update
except to the extent required by law.
DELTA AIR LINES,
INC.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
(in millions, except
per share data)
|
2024
|
2023
|
$
Change
|
%
Change
|
|
2024
|
2023
|
$
Change
|
%
Change
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$ 13,841
|
$ 13,205
|
$
636
|
5 %
|
|
$ 24,972
|
$ 23,616
|
$
1,356
|
6 %
|
Cargo
|
199
|
172
|
27
|
16 %
|
|
377
|
381
|
(4)
|
(1) %
|
Other
|
2,618
|
2,201
|
417
|
19 %
|
|
5,057
|
4,340
|
717
|
17 %
|
Total operating
revenue
|
16,658
|
15,578
|
1,080
|
7 %
|
|
30,406
|
28,337
|
2,069
|
7 %
|
|
|
|
|
|
|
|
|
|
|
Operating
Expense:
|
|
|
|
|
|
|
|
|
|
Salaries and related
costs
|
4,012
|
3,692
|
320
|
9 %
|
|
7,803
|
7,078
|
725
|
10 %
|
Aircraft fuel and
related taxes
|
2,813
|
2,516
|
297
|
12 %
|
|
5,410
|
5,192
|
218
|
4 %
|
Ancillary businesses
and refinery
|
1,463
|
1,173
|
290
|
25 %
|
|
2,833
|
2,298
|
535
|
23 %
|
Contracted
services
|
1,041
|
994
|
47
|
5 %
|
|
2,065
|
2,004
|
61
|
3 %
|
Landing fees and other
rents
|
766
|
617
|
149
|
24 %
|
|
1,515
|
1,201
|
314
|
26 %
|
Aircraft maintenance
materials and outside repairs
|
684
|
614
|
70
|
11 %
|
|
1,363
|
1,199
|
164
|
14 %
|
Depreciation and
amortization
|
620
|
573
|
47
|
8 %
|
|
1,235
|
1,137
|
98
|
9 %
|
Passenger commissions
and other selling expenses
|
672
|
651
|
21
|
3 %
|
|
1,222
|
1,152
|
70
|
6 %
|
Regional carrier
expense
|
580
|
559
|
21
|
4 %
|
|
1,130
|
1,117
|
13
|
1 %
|
Passenger
service
|
463
|
442
|
21
|
5 %
|
|
876
|
859
|
17
|
2 %
|
Profit
sharing
|
519
|
595
|
(76)
|
(13) %
|
|
644
|
667
|
(23)
|
(3) %
|
Aircraft
rent
|
138
|
132
|
6
|
5 %
|
|
274
|
264
|
10
|
4 %
|
Pilot agreement and
related expenses
|
—
|
—
|
—
|
— %
|
|
—
|
864
|
(864)
|
(100) %
|
Other
|
620
|
529
|
91
|
17 %
|
|
1,155
|
1,090
|
65
|
6 %
|
Total operating
expense
|
14,391
|
13,087
|
1,304
|
10 %
|
|
27,525
|
26,122
|
1,403
|
5 %
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
2,267
|
2,491
|
(224)
|
(9) %
|
|
2,881
|
2,215
|
666
|
30 %
|
|
|
|
|
|
|
|
|
|
|
Non-Operating
Expense:
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(188)
|
(203)
|
15
|
(7) %
|
|
(394)
|
(430)
|
36
|
(8) %
|
Gain/(loss) on
investments, net
|
(196)
|
128
|
(324)
|
NM
|
|
(423)
|
251
|
(674)
|
NM
|
Loss on extinguishment
of debt
|
(32)
|
(29)
|
(3)
|
10 %
|
|
(36)
|
(50)
|
14
|
(28) %
|
Miscellaneous,
net
|
(78)
|
(70)
|
(8)
|
11 %
|
|
(133)
|
(174)
|
41
|
(24) %
|
Total non-operating
expense, net
|
(494)
|
(174)
|
(320)
|
NM
|
|
(986)
|
(403)
|
(583)
|
NM
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
1,773
|
2,317
|
(544)
|
(23) %
|
|
1,895
|
1,812
|
83
|
5 %
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Provision
|
(468)
|
(490)
|
22
|
(4) %
|
|
(553)
|
(348)
|
(205)
|
59 %
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
1,305
|
$
1,827
|
$
(522)
|
(29) %
|
|
$
1,342
|
$
1,464
|
$
(122)
|
(8) %
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
$
2.04
|
$
2.86
|
|
|
|
$
2.10
|
$
2.29
|
|
|
Diluted Earnings Per
Share
|
$
2.01
|
$
2.84
|
|
|
|
$
2.08
|
$
2.28
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Shares Outstanding
|
641
|
639
|
|
|
|
640
|
639
|
|
|
Diluted Weighted
Average Shares Outstanding
|
648
|
642
|
|
|
|
647
|
642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Passenger
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
(in
millions)
|
2024
|
2023
|
$
Change
|
%
Change
|
|
2024
|
2023
|
$
Change
|
%
Change
|
Ticket - Main
cabin
|
$
6,716
|
$
6,694
|
$
22
|
— %
|
|
$ 12,141
|
$ 11,917
|
$
224
|
2 %
|
Ticket - Premium
products
|
5,633
|
5,135
|
498
|
10 %
|
|
10,041
|
9,151
|
890
|
10 %
|
Loyalty travel
awards
|
975
|
902
|
73
|
8 %
|
|
1,820
|
1,645
|
175
|
11 %
|
Travel-related
services
|
517
|
474
|
43
|
9 %
|
|
970
|
903
|
67
|
7 %
|
Passenger
revenue
|
$ 13,841
|
$ 13,205
|
$
636
|
5 %
|
|
$ 24,972
|
$ 23,616
|
$
1,356
|
6 %
|
DELTA AIR LINES,
INC.
|
Other
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
(in
millions)
|
2024
|
2023
|
$
Change
|
%
Change
|
|
2024
|
2023
|
$
Change
|
%
Change
|
Refinery
|
$
1,251
|
$
965
|
$
286
|
30 %
|
|
$
2,436
|
$
1,882
|
$
554
|
29 %
|
Loyalty
program
|
836
|
774
|
62
|
8 %
|
|
1,631
|
1,500
|
131
|
9 %
|
Ancillary
businesses
|
213
|
214
|
(1)
|
— %
|
|
393
|
445
|
(52)
|
(12) %
|
Miscellaneous
|
318
|
248
|
70
|
28 %
|
|
597
|
513
|
84
|
16 %
|
Other
revenue
|
$
2,618
|
$
2,201
|
$
417
|
19 %
|
|
$
5,057
|
$
4,340
|
$
717
|
17 %
|
DELTA AIR LINES,
INC.
|
Total
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(Decrease)
|
|
|
|
|
2Q24 vs
2Q23
|
Revenue
|
|
2Q24 ($M)
|
|
Change
|
Unit
Revenue
|
Yield
|
Capacity
|
Domestic
|
$
|
9,398
|
|
5 %
|
(2) %
|
(2) %
|
8 %
|
Atlantic
|
|
2,825
|
|
1 %
|
(1) %
|
1 %
|
2 %
|
Latin
America
|
|
964
|
|
4 %
|
(12) %
|
(12) %
|
19 %
|
Pacific
|
|
654
|
|
23 %
|
(5) %
|
(4) %
|
30 %
|
Passenger
Revenue
|
$
|
13,841
|
|
5 %
|
(3) %
|
(2) %
|
8 %
|
Cargo
Revenue
|
|
199
|
|
16 %
|
|
|
|
Other
Revenue
|
|
2,618
|
|
19 %
|
|
|
|
Total
Revenue
|
$
|
16,658
|
|
7 %
|
(1) %
|
|
|
Third Party
Refinery Sales
|
|
(1,251)
|
|
|
|
|
|
Total Revenue,
adjusted
|
$
|
15,407
|
|
5.4 %
|
(2.6) %
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
Statistical
Summary
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
|
2024
|
2023
|
Change
|
|
2024
|
2023
|
Change
|
Revenue passenger miles
(millions)
|
65,241
|
60,804
|
7
|
%
|
|
119,448
|
110,491
|
8
|
%
|
Available seat miles
(millions)
|
74,656
|
68,993
|
8
|
%
|
|
140,198
|
130,345
|
8
|
%
|
Passenger mile yield
(cents)
|
21.22
|
21.72
|
(2)
|
%
|
|
20.91
|
21.37
|
(2)
|
%
|
Passenger revenue per
available seat mile (cents)
|
18.54
|
19.14
|
(3)
|
%
|
|
17.81
|
18.12
|
(2)
|
%
|
Total revenue per
available seat mile (cents)
|
22.31
|
22.58
|
(1)
|
%
|
|
21.69
|
21.74
|
—
|
%
|
TRASM, adjusted - see
Note A (cents)
|
20.64
|
21.18
|
(2.6)
|
%
|
|
19.95
|
20.30
|
(2)
|
%
|
Cost per available seat
mile (cents)
|
19.28
|
18.97
|
2
|
%
|
|
19.63
|
20.04
|
(2)
|
%
|
CASM-Ex - see
Note A (cents)
|
13.14
|
13.06
|
0.6
|
%
|
|
13.58
|
13.44
|
1
|
%
|
Passenger load
factor
|
87 %
|
88 %
|
(1)
|
pt
|
|
85 %
|
85 %
|
—
|
pt
|
Fuel gallons consumed
(millions)
|
1,066
|
997
|
7
|
%
|
|
1,998
|
1,885
|
6
|
%
|
Average price per fuel
gallon
|
$
2.64
|
$
2.52
|
5
|
%
|
|
$
2.71
|
$
2.75
|
(1)
|
%
|
Average price per fuel
gallon, adjusted - see Note A
|
$
2.64
|
$
2.52
|
5
|
%
|
|
$
2.69
|
$
2.77
|
(3)
|
%
|
DELTA AIR LINES,
INC.
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
(in
millions)
|
2024
|
2023
|
|
Cash Flows From
Operating Activities:
|
|
|
|
Net Income
|
$
1,305
|
$
1,827
|
|
Depreciation and
amortization
|
620
|
573
|
|
Changes in air traffic
liability
|
(756)
|
(766)
|
|
Changes in profit
sharing
|
519
|
595
|
|
Changes in balance
sheet and other, net
|
762
|
380
|
|
Net cash provided by
operating activities
|
2,450
|
2,609
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Property and equipment
additions:
|
|
|
|
Flight equipment,
including advance payments
|
(1,007)
|
(1,074)
|
|
Ground property and
equipment, including technology
|
(301)
|
(378)
|
|
Purchase of short-term
investments
|
—
|
(1,013)
|
|
Redemption of
short-term investments
|
467
|
1,064
|
|
Other, net
|
32
|
19
|
|
Net cash used in
investing activities
|
(809)
|
(1,382)
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Payments on debt and
finance lease obligations
|
(1,436)
|
(1,820)
|
|
Cash
dividends
|
(64)
|
—
|
|
Other, net
|
(12)
|
(12)
|
|
Net cash used in
financing activities
|
(1,512)
|
(1,832)
|
|
|
|
|
|
Net
Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash
Equivalents
|
129
|
(605)
|
|
Cash, cash equivalents
and restricted cash equivalents at beginning of period
|
4,379
|
3,429
|
|
Cash, cash equivalents
and restricted cash equivalents at end of period
|
$
4,507
|
$
2,824
|
|
|
|
|
|
The following table
provides a reconciliation of cash, cash equivalents and restricted
cash reported within the Consolidated Balance Sheets to the total
of the same such amounts shown above:
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
4,110
|
$
2,668
|
|
Restricted cash included in
prepaid expenses and other
|
114
|
156
|
|
Other
assets:
|
|
|
|
Restricted cash included in
other noncurrent assets
|
283
|
—
|
|
Total cash, cash
equivalents and restricted cash equivalents
|
$
4,507
|
$
2,824
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Consolidated Balance
Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
(in
millions)
|
2024
|
|
2023
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
4,110
|
|
$
2,741
|
|
Short-term
investments
|
124
|
|
1,127
|
|
Accounts receivable,
net
|
3,812
|
|
3,130
|
|
Fuel inventory,
expendable parts and supplies inventories, net
|
1,486
|
|
1,314
|
|
Prepaid expenses and
other
|
2,056
|
|
1,957
|
|
Total current
assets
|
11,588
|
|
10,269
|
|
|
|
|
|
Property and
Equipment, Net:
|
|
|
|
|
Property and equipment,
net
|
36,339
|
|
35,486
|
|
|
|
|
|
Other
Assets:
|
|
|
|
|
Operating lease
right-of-use assets
|
6,808
|
|
7,004
|
|
Goodwill
|
9,753
|
|
9,753
|
|
Identifiable
intangibles, net
|
5,979
|
|
5,983
|
|
Equity
investments
|
3,022
|
|
3,457
|
|
Other noncurrent
assets
|
1,708
|
|
1,692
|
|
Total other
assets
|
27,270
|
|
27,889
|
Total assets
|
$
75,197
|
|
$
73,644
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Current maturities of
debt and finance leases
|
$
2,950
|
|
$
2,983
|
|
Current maturities of
operating leases
|
775
|
|
759
|
|
Air traffic
liability
|
9,437
|
|
7,044
|
|
Accounts
payable
|
4,876
|
|
4,446
|
|
Accrued salaries and
related benefits
|
3,655
|
|
4,561
|
|
Loyalty program
deferred revenue
|
4,038
|
|
3,908
|
|
Fuel card
obligation
|
1,100
|
|
1,100
|
|
Other accrued
liabilities
|
1,928
|
|
1,617
|
|
Total current
liabilities
|
28,759
|
|
26,418
|
|
|
|
|
|
Noncurrent
Liabilities:
|
|
|
|
|
Debt and finance
leases
|
15,033
|
|
17,071
|
|
Pension, postretirement
and related benefits
|
3,453
|
|
3,601
|
|
Loyalty program
deferred revenue
|
4,596
|
|
4,512
|
|
Noncurrent operating
leases
|
6,053
|
|
6,468
|
|
Deferred income taxes,
net
|
1,410
|
|
908
|
|
Other noncurrent
liabilities
|
3,507
|
|
3,561
|
|
Total noncurrent
liabilities
|
34,052
|
|
36,121
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
12,386
|
|
11,105
|
Total liabilities and
stockholders' equity
|
$
75,197
|
|
$
73,644
|
Note A: The following tables show reconciliations of non-GAAP
financial measures. The reasons Delta uses these measures are
described below. Reconciliations may not calculate due to
rounding.
Delta sometimes uses information ("non-GAAP financial measures")
that is derived from the Consolidated Financial Statements, but
that is not presented in accordance with accounting principles
generally accepted in the U.S. ("GAAP"). Under the Securities and
Exchange Commission rules, non-GAAP financial measures may be
considered in addition to results prepared in accordance with GAAP,
but should not be considered a substitute for or superior to GAAP
results. The tables below show reconciliations of non-GAAP
financial measures used in this release to the most directly
comparable GAAP financial measures.
Forward Looking Projections. Delta is not able to
reconcile forward looking non-GAAP financial measures without
unreasonable effort because the adjusting items such as those used
in the reconciliations below will not be known until the end of the
period and could be significant.
Adjustments. These reconciliations include certain
adjustments to GAAP measures that are made to provide comparability
between the reported periods, if applicable, and for the reasons
indicated below:
MTM adjustments on
investments. Mark-to-market ("MTM")
unrealized gains/losses result from our equity investments that are
accounted for at fair value in non-operating expense. The
gains/losses are driven by changes in stock prices, foreign
currency fluctuations and other valuation techniques for
investments in certain companies, particularly those without
publicly-traded shares. Adjusting for these gains/losses allows
investors to better understand and analyze our core operational
performance in the periods shown.
MTM adjustments and settlements on
hedges. MTM adjustments are defined as fair value changes
recorded in periods other than the settlement period. Such fair
value changes are not necessarily indicative of the actual
settlement value of the underlying hedge in the contract settlement
period, and therefore we remove this impact to allow investors to
better understand and analyze our core performance. Settlements
represent cash received or paid on hedge contracts settled during
the applicable period.
Loss on extinguishment of debt. This
adjustment relates to early termination of a portion of our debt.
Adjusting for these losses allows investors to better understand
and analyze our core operational performance in the periods
shown.
Third-party refinery sales. Refinery
sales to third parties, and related expenses, are not related to
our airline segment. Excluding these sales therefore provides a
more meaningful comparison of our airline operations to the rest of
the airline industry.
One-time pilot agreement expenses.
In the March 2023 quarter, Delta
pilots ratified a new four-year Pilot Working Agreement effective
January 1, 2023. The agreement
included a provision for a one-time payment made upon ratification
in the March 2023 quarter of
$735 million. Additionally, we
recorded adjustments to other benefit-related items of
approximately $130 million. Adjusting
for these expenses allows investors to better understand and
analyze our core cost performance.
Pre-Tax Income, Net Income, and Diluted Earnings per Share,
adjusted
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2024
|
|
June 30,
2024
|
|
Pre-Tax
|
Income
|
Net
|
|
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
1,773
|
$
(468)
|
$
1,305
|
|
$
2.01
|
Adjusted
for:
|
|
|
|
|
|
MTM adjustments on
investments
|
196
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
1
|
|
|
|
|
Loss on extinguishment
of debt
|
32
|
|
|
|
|
Non-GAAP
|
$
2,002
|
$
(475)
|
$
1,528
|
|
$
2.36
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2023
|
|
June 30,
2023
|
|
Pre-Tax
|
Income
|
Net
|
|
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
2,317
|
$
(490)
|
$
1,827
|
|
$
2.84
|
Adjusted
for:
|
|
|
|
|
|
MTM adjustments on
investments
|
(128)
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
3
|
|
|
|
|
Loss on extinguishment
of debt
|
29
|
|
|
|
|
Non-GAAP
|
$
2,220
|
$
(498)
|
$
1,723
|
|
$
2.68
|
Operating Margin, adjusted
|
Three Months
Ended
|
|
June 30,
2024
|
June 30,
2023
|
Operating
margin
|
13.6 %
|
16.0 %
|
Adjusted
for:
|
|
|
Third-party refinery
sales
|
1.1
|
1.1
|
Operating margin,
adjusted
|
14.7 %
|
17.1 %
|
Operating Revenue, adjusted and Total Revenue Per Available
Seat Mile ("TRASM"), adjusted
|
Three Months
Ended
|
|
2Q24 vs 2Q23
% Change
|
(in
millions)
|
June 30,
2024
|
September 30,
2023
|
June 30,
2023
|
|
Operating
revenue
|
$
16,658
|
$
15,488
|
$
15,578
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(1,251)
|
(935)
|
(965)
|
|
|
Operating revenue,
adjusted
|
$
15,407
|
$
14,553
|
$
14,613
|
|
5.4 %
|
|
Three Months
Ended
|
|
%
Change
|
|
June 30,
2024
|
June 30,
2023
|
|
TRASM
(cents)
|
22.31
|
22.58
|
|
|
Adjusted
for:
|
|
|
|
|
Third-party refinery
sales
|
(1.68)
|
(1.40)
|
|
|
TRASM,
adjusted
|
20.64
|
21.18
|
|
(2.6) %
|
|
Six Months
Ended
|
|
June 30,
2024
|
June 30,
2023
|
TRASM
(cents)
|
21.69
|
21.74
|
Adjusted
for:
|
|
|
Third-party refinery
sales
|
(1.74)
|
(1.44)
|
TRASM,
adjusted
|
19.95
|
20.30
|
Operating Income, adjusted
|
Three Months
Ended
|
(in
millions)
|
June 30,
2024
|
June 30,
2023
|
Operating
income
|
$
2,267
|
$
2,491
|
Adjusted
for:
|
|
|
MTM adjustments and
settlements on hedges
|
1
|
3
|
Operating income,
adjusted
|
$
2,269
|
$
2,494
|
Pre-Tax Margin, adjusted
|
Three Months
Ended
|
|
June 30,
2024
|
June 30,
2023
|
Pre-tax
margin
|
10.6 %
|
14.9 %
|
Adjusted
for:
|
|
|
MTM adjustments on
investments
|
1.2
|
(0.8)
|
Third-party refinery
sales
|
1.0
|
0.9
|
Loss on extinguishment
of debt
|
0.2
|
0.2
|
Pre-tax margin,
adjusted
|
13.0 %
|
15.2 %
|
Operating Cash Flow, adjusted. We present operating
cash flow, adjusted because management believes adjusting for the
following item provides a more meaningful measure for
investors:
Net cash flows related to certain airport
construction projects and other. Cash flows related to certain
airport construction projects are included in our GAAP operating
activities. We have adjusted for these items, which were primarily
funded by cash restricted for airport construction, to provide
investors a better understanding of the company's operating cash
flow that is core to our operations in the periods shown.
|
Three Months
Ended
|
(in
millions)
|
June 30,
2024
|
June 30,
2023
|
Net cash provided by
operating activities
|
$
2,450
|
$
2,609
|
Adjusted
for:
|
|
|
Net cash flows related
to certain airport construction projects and other
|
8
|
38
|
Net cash provided by
operating activities, adjusted
|
$
2,458
|
$
2,648
|
Free Cash Flow. We present free cash flow because
management believes this metric is helpful to investors to evaluate
the company's ability to generate cash that is available for use
for debt service or general corporate initiatives. Free cash flow
is also used internally as a component of our incentive
compensation programs. Free cash flow is defined as net cash from
operating activities and net cash from investing activities,
adjusted for (i) net redemptions of short-term investments, (ii)
net cash flows related to certain airport construction projects and
other, and (iii) financed aircraft acquisitions. These adjustments
are made for the following reasons:
Net redemptions of short-term
investments. Net redemptions of short-term investments
represent the net purchase and sale activity of investments and
marketable securities in the period, including gains and losses. We
adjust for this activity to provide investors a better
understanding of the company's free cash flow generated by our
operations.
Net cash flows related to certain airport
construction projects and other. Cash flows related to certain
airport construction projects are included in our GAAP operating
activities and capital expenditures. We have adjusted for these
items, which were primarily funded by cash restricted for airport
construction, to provide investors a better understanding of the
company's free cash flow and capital expenditures that are core to
our operations in the periods shown.
Financed aircraft acquisitions. This
adjustment reflects aircraft deliveries that are leased as capital
expenditures. The adjustment is based on their original contractual
purchase price or an estimate of the aircraft's fair value and
provides a more meaningful view of our investing activities.
|
Three Months
Ended
|
(in
millions)
|
June 30,
2024
|
June 30,
2023
|
Net cash provided by
operating activities
|
$
2,450
|
$
2,609
|
Net cash used in
investing activities
|
(809)
|
(1,382)
|
Adjusted
for:
|
|
|
Net redemptions of
short-term investments
|
(467)
|
(51)
|
Net cash flows related
to certain airport construction projects and other
|
99
|
81
|
Financed aircraft
acquisitions
|
—
|
(162)
|
Free cash
flow
|
$
1,274
|
$
1,094
|
|
Six Months
Ended
|
(in
millions)
|
June 30,
2024
|
Net cash provided by
operating activities
|
$
4,857
|
Net cash used in
investing activities
|
(1,446)
|
Adjusted
for:
|
|
Net redemptions of
short-term investments
|
(1,013)
|
Net cash flows related
to certain airport construction projects and other
|
253
|
Free cash
flow
|
$
2,652
|
Adjusted Debt to Earnings Before Interest, Taxes,
Depreciation, Amortization and Rent ("EBITDAR"). We
present adjusted debt to EBITDAR because management believes this
metric is helpful to investors in assessing the company's overall
debt profile. Adjusted debt includes operating lease liabilities
and sale leaseback liabilities. We calculate EBITDAR by adding
depreciation and amortization to GAAP operating income and
adjusting for the fixed portion of operating lease expense.
(in
billions)
|
June 30,
2024
|
|
December 31,
2023
|
Debt and finance lease
obligations
|
$
18.0
|
|
$
20.1
|
Plus: Operating lease
liability
|
6.8
|
|
7.2
|
Plus: Sale leaseback
liability
|
1.9
|
|
1.9
|
Adjusted
Debt
|
$
26.7
|
|
$
29.3
|
|
Twelve Months
Ended
|
(in
billions)
|
June 30,
2024
|
|
December 31,
2023
|
GAAP operating
income
|
$
6.2
|
|
$
5.5
|
Adjusted
for:
|
|
|
|
One-time pilot
agreement expenses
|
—
|
|
0.9
|
Operating income,
adjusted
|
6.2
|
|
6.3
|
Adjusted
for:
|
|
|
|
Depreciation and
amortization
|
2.4
|
|
2.3
|
Fixed portion of
operating lease expense
|
1.0
|
|
1.0
|
EBITDAR
|
$
9.6
|
|
$
9.6
|
|
|
|
|
Adjusted Debt to
EBITDAR
|
2.8x
|
|
3.0x
|
After-tax Return on Invested Capital ("ROIC"). We present
after-tax return on invested capital as management believes this
metric is helpful to investors in assessing the company's ability
to generate returns using its invested capital as a measure against
the industry. Return on invested capital is tax-effected adjusted
total pre-tax income divided by average adjusted invested capital.
Average adjusted invested capital represents the sum of the
adjusted book value of equity at the end of the last five quarters,
adjusted for pension impacts within other comprehensive income.
Average adjusted gross debt is calculated using amounts as of the
end of the last five quarters. All adjustments to calculate ROIC
are intended to provide a more meaningful comparison of our results
to the airline industry.
Amortization of retirement actuarial
loss. This adjustment relates to actuarial gains/losses on our
benefit plans. Adjusting for these results allows investors
to better understand our core operational performance in the
periods shown as it removes prior period differences in assumptions
and actual experience within our benefit plans.
Interest expense, net and interest expense
included in aircraft rent. This adjustment relates to interest
expense related to debt and financing transactions. Adjusting
for these results allows investors to better understand our core
operational performance in the periods shown as it neutralizes the
effect of our capital structure.
|
Twelve Months
Ended
|
(in
millions)
|
June 30,
2024
|
Pre-tax
income
|
$
5,691
|
Adjusted
for:
|
|
MTM adjustments on
investments
|
(589)
|
MTM adjustments and
settlements on hedges
|
14
|
Loss on extinguishment
of debt
|
49
|
Amortization of
retirement actuarial loss
|
240
|
Interest expense, net
and interest expense included in aircraft rent
|
1,170
|
Pre-tax adjusted
income
|
$
6,575
|
Tax effect
|
(1,524)
|
Tax-effected adjusted
total pre-tax income
|
$
5,051
|
|
|
Adjusted book value of
equity
|
$
16,618
|
Average adjusted gross
debt
|
21,803
|
Averaged adjusted
invested capital
|
$
38,421
|
|
|
After-tax Return on
Invested Capital
|
13.1 %
|
Operating revenue, adjusted related to premium products and
diverse revenue streams
|
Three Months
Ended
|
(in
millions)
|
June 30,
2024
|
Operating
revenue
|
$
16,658
|
Adjusted
for:
|
|
Third-party refinery
sales
|
(1,251)
|
Operating revenue,
adjusted
|
$
15,407
|
Less: main cabin
revenue
|
(6,716)
|
Operating revenue,
adjusted related to premium products and diverse revenue
streams
|
$
8,691
|
Percent of operating
revenue, adjusted related to premium products and diverse revenue
streams
|
56 %
|
Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per
Available Seat Mile, ("CASM-Ex")
We adjust operating expense and CASM for certain items described
above, as well as the following items and reasons described
below:
Aircraft fuel and related taxes. The
volatility in fuel prices impacts the comparability of
year-over-year financial performance. The adjustment for aircraft
fuel and related taxes allows investors to better understand and
analyze our non-fuel costs and year-over-year financial
performance.
Profit sharing. We adjust for profit
sharing because this adjustment allows investors to better
understand and analyze our recurring cost performance and provides
a more meaningful comparison of our core operating costs to the
airline industry.
|
Three Months
Ended
|
(in
millions)
|
June 30,
2024
|
June 30,
2023
|
Operating
expense
|
$
14,391
|
$
13,087
|
Adjusted
for:
|
|
|
Aircraft fuel and
related taxes
|
(2,813)
|
(2,516)
|
Third-party refinery
sales
|
(1,251)
|
(965)
|
Profit
sharing
|
(519)
|
(595)
|
Non-Fuel
Cost
|
$
9,808
|
$
9,011
|
|
Three Months
Ended
|
|
2Q24 vs 2Q23
% Change
|
|
June 30,
2024
|
September 30,
2023
|
June 30,
2023
|
|
CASM (cents)
|
19.28
|
18.44
|
18.97
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and
related taxes
|
(3.77)
|
(4.01)
|
(3.65)
|
|
|
Third-party refinery
sales
|
(1.68)
|
(1.28)
|
(1.40)
|
|
|
Profit
sharing
|
(0.70)
|
(0.57)
|
(0.86)
|
|
|
CASM-Ex
|
13.14
|
12.59
|
13.06
|
|
0.6 %
|
|
Six Months
Ended
|
|
June 30,
2024
|
June 30,
2023
|
CASM (cents)
|
19.63
|
20.04
|
Adjusted
for:
|
|
|
Aircraft fuel and
related taxes
|
(3.86)
|
(3.98)
|
Third-party refinery
sales
|
(1.74)
|
(1.44)
|
Profit
sharing
|
(0.46)
|
(0.51)
|
One-time pilot
agreement expenses
|
—
|
(0.66)
|
CASM-Ex
|
13.58
|
13.44
|
Operating Expense, adjusted
|
Three Months
Ended
|
(in
millions)
|
June 30,
2024
|
June 30,
2023
|
Operating
expense
|
$
14,391
|
$
13,087
|
Adjusted
for:
|
|
|
Third-party refinery
sales
|
(1,251)
|
(965)
|
MTM adjustments and
settlements on hedges
|
(1)
|
(3)
|
Operating expense,
adjusted
|
$
13,138
|
$
12,119
|
Total fuel expense, adjusted and Average fuel price per
gallon, adjusted
|
|
|
|
|
|
Average Price Per
Gallon
|
|
|
|
Three Months
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
June
30,
|
June
30,
|
|
%
Change
|
|
June
30,
|
June
30,
|
|
%
Change
|
(in millions, except
per gallon data)
|
2024
|
2023
|
|
|
2024
|
2023
|
|
Total fuel
expense
|
$
2,813
|
$
2,516
|
|
|
|
$
2.64
|
$
2.52
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(1)
|
(3)
|
|
|
|
—
|
—
|
|
|
Total fuel expense,
adjusted
|
$
2,811
|
$
2,513
|
|
12 %
|
|
$
2.64
|
$
2.52
|
|
5 %
|
|
Six Months
Ended
|
|
|
|
June
30,
|
June
30,
|
|
%
Change
|
|
2024
|
2023
|
|
Total fuel price per
gallon
|
$
2.71
|
$
2.75
|
|
|
Adjusted
for:
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(0.01)
|
0.02
|
|
|
Total fuel price per
gallon, adjusted
|
$
2.69
|
$
2.77
|
|
(3) %
|
Adjusted Net Debt. Delta uses adjusted total debt,
including aircraft rent, in addition to adjusted debt and finance
leases, to present estimated financial obligations. Delta reduces
adjusted total debt by cash, cash equivalents, short-term
investments and LGA restricted cash, resulting in adjusted net
debt, to present the amount of assets needed to satisfy the debt.
Management believes this metric is helpful to investors in
assessing the company's overall debt profile.
|
|
|
|
|
2Q24 vs 4Q23
$ Change
|
(in
millions)
|
June 30,
2024
|
December 31,
2023
|
June 30,
2023
|
|
Debt and finance lease
obligations
|
$
17,983
|
$
20,054
|
$
20,205
|
|
|
Plus: sale-leaseback
financing liabilities
|
1,862
|
1,887
|
1,912
|
|
|
Plus: unamortized
discount/(premium) and debt issue cost, net and other
|
49
|
83
|
99
|
|
|
Adjusted debt and
finance lease obligations
|
$
19,894
|
$
22,024
|
$
22,216
|
|
|
Plus: 7x last twelve
months' aircraft rent
|
3,794
|
3,724
|
3,661
|
|
|
Adjusted total
debt
|
$
23,687
|
$
25,748
|
$
25,877
|
|
|
Less: cash, cash
equivalents and short-term investments
|
(4,235)
|
(3,869)
|
(6,036)
|
|
|
Less: LGA restricted
cash
|
(283)
|
(455)
|
—
|
|
|
Adjusted net
debt
|
$
19,170
|
$
21,424
|
$
19,841
|
|
$
(2,254)
|
Gross Capital Expenditures. We adjust capital
expenditures for the following items to determine gross capital
expenditures for the reasons described below:
Financed aircraft acquisitions. This
adjusts capital expenditures to reflect aircraft deliveries that
are leased as capital expenditures. The adjustment is based on
their original contractual purchase price or an estimate of the
aircraft's fair value and provides a more meaningful view of our
investing activities.
Net cash flows related to certain airport
construction projects. Cash flows related to certain airport
construction projects are included in capital expenditures. We have
adjusted for these items because management believes investors
should be informed that a portion of these capital expenditures
from airport construction projects are either funded with
restricted cash specific to these projects or reimbursed by a third
party.
|
Three Months
Ended
|
(in
millions)
|
June 30,
2024
|
June 30,
2023
|
Flight equipment,
including advance payments
|
$
1,007
|
$
1,074
|
Ground property and
equipment, including technology
|
301
|
378
|
Adjusted
for:
|
|
|
Financed aircraft
acquisitions
|
—
|
162
|
Net cash flows related
to certain airport construction projects
|
(92)
|
(42)
|
Gross capital
expenditures
|
$
1,216
|
$
1,572
|
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SOURCE Delta Air Lines