In the news release, Delta Air Lines Announces 2018 September
Quarter Profit, issued 11-Oct-2018 by
Delta Air Lines over PR Newswire, we are advised by the company
that an update has been made to the Statistical Summary Table
(Unaudited). A statement from the company and the corrected table
are listed at the beginning of the release:
Delta Air Lines Announces 2018 September Quarter Profit - September
quarter 2018 GAAP pre-tax income of
$1.7
billion, net income of
$1.3
billion and earnings per diluted share of
$1.91 on record revenue of
$12.0 billion - September quarter 2018 adjusted
pre-tax income of
$1.6 billion,
adjusted net income of
$1.2 billion
and adjusted earnings per diluted share of
$1.80 - Delta returned
$566 million to shareholders through dividends
and share repurchases
ATLANTA, Oct. 11, 2018 /PRNewswire/ -- Delta Air
Lines (NYSE:DAL) is updating and replacing one table exhibit in a
press release issued at 7 a.m. ET
this morning, "Delta Air Lines Announces 2018 September Quarter
Profit."
The Company is updating and replacing the Statistical Summary
Table (Unaudited) to correct the line previously labeled as
"CASM-Ex, including profit sharing – see Note A (cents)" as
"CASM-Ex – see Note A (cents)."
The fully corrected Statistical Summary Table (Unaudited) is as
follows:
DELTA AIR LINES,
INC.
|
Statistical
Summary
|
(Unaudited)
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2018
|
2017
|
Change
|
|
2018
|
2017
|
Change
|
Revenue passenger
miles (millions)
|
63,320
|
|
61,006
|
|
3.8
|
%
|
|
172,002
|
|
166,533
|
|
3.3
|
%
|
Available seat miles
(millions)
|
72,875
|
|
70,167
|
|
3.9
|
%
|
|
200,842
|
|
194,265
|
|
3.4
|
%
|
Passenger mile yield
(cents)
|
17.05
|
|
16.36
|
|
4.2
|
%
|
|
17.50
|
|
16.77
|
|
4.4
|
%
|
Passenger revenue per
available seat mile (cents)
|
14.81
|
|
14.22
|
|
4.2
|
%
|
|
14.99
|
|
14.37
|
|
4.3
|
%
|
Total revenue per
available seat mile (cents)
|
16.40
|
|
15.77
|
|
4.0
|
%
|
|
16.78
|
|
15.91
|
|
5.5
|
%
|
TRASM, adjusted- see
Note A (cents)
|
16.25
|
|
15.58
|
|
4.3
|
%
|
|
16.51
|
|
15.78
|
|
4.6
|
%
|
Operating cost per
available seat mile (cents)
|
14.15
|
|
13.17
|
|
7.4
|
%
|
|
14.71
|
|
13.44
|
|
9.4
|
%
|
CASM-Ex - see Note A
(cents)
|
9.62
|
|
9.62
|
|
—
|
%
|
|
10.19
|
|
9.97
|
|
2.2
|
%
|
Passenger load
factor
|
86.9
|
%
|
86.9
|
%
|
—
|
pts
|
|
85.6
|
%
|
85.7
|
%
|
(0.1)
|
pts
|
Fuel gallons consumed
(millions)
|
1,135
|
|
1,108
|
|
2.4
|
%
|
|
3,137
|
|
3,073
|
|
2.1
|
%
|
Average price per
fuel gallon
|
$
|
2.21
|
|
$
|
1.61
|
|
37.3
|
%
|
|
$
|
2.13
|
|
$
|
1.61
|
|
32.3
|
%
|
Average price per
fuel gallon, adjusted - see Note A
|
$
|
2.22
|
|
$
|
1.68
|
|
32.1
|
%
|
|
$
|
2.14
|
|
$
|
1.68
|
|
27.3
|
%
|
Number of aircraft in
fleet, end of period
|
1,026
|
|
996
|
|
30
|
|
|
|
|
|
|
Note: The prior
periods presented here have been recast to reflect adoption of new
accounting standards. Except for number of aircraft in fleet,
consolidated data presented includes operations under Delta's
contract carrier arrangements.
|
A fully updated version of the "Delta Air Lines Announces 2018
September Quarter Profit" news release is as follows:
Delta Air Lines (NYSE: DAL) today reported financial results for
the September quarter 2018. Highlights of those results, including
both GAAP and adjusted metrics, are below and incorporated
here.
Adjusted pre-tax income for the September quarter 2018 was
$1.6 billion, and adjusted earnings
per share were $1.80, at the high end
of guidance. Adjusted earnings per share were up 16 percent
compared to the prior year quarter, driven by revenue momentum, tax
reform benefits and a four percent lower share count. Results
reflect a $30 million negative impact
from Hurricane Florence.
"Our solid eight percent revenue growth, combined with flat
non-fuel unit cost performance, helped offset 85 percent of the
$655 million fuel cost increase in
the quarter. These achievements are a testament to the strength of
the Delta business model and the hard work of the Delta people, and
I am pleased to recognize their performance with an additional
$395 million toward 2018 profit
sharing," said Ed Bastian, Delta's
Chief Executive Officer. "Our commercial momentum and improved cost
trajectory give us confidence that we are on a path to deliver
continued top-line growth and expand margins as we move into
2019."
Revenue Environment
Delta's adjusted operating revenue of $11.8 billion for the September quarter improved
eight percent, or $912 million versus
the prior year. This quarterly revenue result marks a record for
the company, driven by improvements across Delta's business,
including a nearly 20 percent increase in premium product ticket
revenues and double-digit percentage increases in cargo, loyalty
and Maintenance, Repair and Overhaul revenue.
Total unit revenues excluding refinery sales (TRASM) increased
4.3 percent during the period driven by strong demand and improving
yields. Foreign exchange benefit of approximately half a point was
offset by the impact of Hurricane Florence.
"We generated record revenues in the September quarter on strong
demand across the business and a favorable yield environment. In
the December quarter we expect total unit revenue growth of three
to five percent, driving full year revenue growth to eight percent,
the high end of our guidance," said Glen
Hauenstein, Delta's President. "The benefits of our brand,
industry-leading network, and relentless focus on the customer are
driving revenue growth, improving margins and accelerating the pace
of our recapture of higher fuel costs."
|
|
|
|
Increase
(Decrease)
|
|
|
|
|
3Q18 versus
3Q17
|
Revenue
|
|
3Q18
($M)
|
|
Change
YoY
|
Unit
Revenue
|
Yield
|
Capacity
|
Domestic
|
$
|
7,395
|
|
9.2%
|
3.3%
|
3.2%
|
5.6%
|
Atlantic
|
|
1,996
|
|
10.7%
|
7.8%
|
7.0%
|
2.7%
|
Pacific
|
|
730
|
|
3.0%
|
4.8%
|
6.3%
|
(1.7)%
|
Latin
America
|
|
675
|
|
(2.6)%
|
(2.9)%
|
(0.8)%
|
0.3%
|
Total
Passenger
|
$
|
10,796
|
|
8.2%
|
4.2%
|
4.2%
|
3.9%
|
Cargo
Revenue
|
|
226
|
|
18.5%
|
|
|
|
Other
Revenue
|
|
931
|
|
4.4%
|
|
|
|
Total
Revenue
|
$
|
11,953
|
|
8.1%
|
4.0%
|
|
|
Third Party
Refinery Sales
|
|
(108)
|
|
|
|
|
|
Total Revenue,
adjusted
|
$
|
11,845
|
|
8.3%
|
4.3%
|
|
|
December Quarter 2018
Despite an expected 30 percent increase in fuel price, Delta
expects pre-tax margins to stabilize in the December quarter driven
by continued top-line growth and improving cost performance.
|
4Q18
Forecast
|
Earnings per
share
|
$1.10 -
$1.30
|
Pre-tax
margin
|
9% - 11%
|
Fuel price, including
taxes, settled hedges and refinery impact
|
$2.47 -
2.52
|
Total revenue growth
(year-over-year)
|
Up ~8%
|
Total unit revenue
excluding refinery sales (year-over-year)
|
Up 3% - 5%
|
CASM - Excluding fuel
and profit sharing (year-over-year)
|
Flat - down
1%
|
System Capacity
(year-over-year)
|
Up ~4%
|
See Note A for
information about reconciliation of projected non-GAAP financial
measures
|
Cost Performance
Total adjusted operating expenses for the September quarter
increased $1.0 billion versus the
prior year quarter, with more than half of the increase driven by
higher fuel prices.
CASM-Ex was flat for the September quarter 2018 compared to the
prior year period, a three-point improvement from the June quarter.
Efficiency gains successfully offset cost pressures from higher
revenue-related costs and product and employee investments.
"The September quarter marked an important inflection point in
changing our non-fuel cost trajectory, and we expect to deliver on
our full-year target of one to two percent non-fuel unit cost
growth," said Paul Jacobson, Delta's
Chief Financial Officer. "Continued focus on cost control, along
with incremental efficiency gains from refleeting and One Delta,
give us confidence in our ability to keep our non-fuel unit cost
growth below two percent next year."
Adjusted fuel expense increased $655
million, or 35 percent, relative to September quarter 2017.
Delta's adjusted fuel price per gallon for the September quarter
was $2.22, which includes
$12 million of benefit from the
refinery.
Adjusted non-operating expense improved by $30 million versus the prior year, driven
primarily by pension expense favorability. The company expects 2018
full-year adjusted non-operating expense to be approximately
$300 million, representing a
$160 million improvement over prior
year due to favorable interest and pension expenses, offsetting
reduced partner earnings due to higher fuel.
Adjusted tax expense declined $221
million for the September quarter primarily due to the
reduction in Delta's book tax rate from 34 percent to 23
percent.
Cash Flow and Shareholder Returns
Delta generated $1.5 billion of
operating cash flow and $655 million
of free cash flow during the quarter, after the investment of
$865 million primarily for aircraft
purchases and modifications.
For the September quarter, Delta returned $566 million to shareholders, comprised of
$325 million of share repurchases and
$241 million in dividends.
Strategic Highlights
In the September quarter, Delta achieved a number of milestones
across its five key strategic pillars.
Culture and People
- Received certification as a great workplace by the independent
analysts at Great Place to Work for a third straight year, with 93
percent of employees proud to work for Delta, reiterating the
importance of the Delta culture.
- Earned a spot in the transportation section of the Dow Jones
Sustainability North America Index for the eighth consecutive year,
as the first airline to offer carbon offsets to customers and the
only airline to cap emissions at 2012 levels through purchase of
carbon offsets.
Operational Reliability
- Delivered 97 days of zero system cancellations across the
combined mainline and Delta Connection operations on a year-to-date
basis, up 46 days from 2017 and exceeding the previous full-year
record in the first nine months of the year.
- Achieved industry-leading operational performance with mainline
on-time performance (A0) of 71.5 percent year-to-date; and top
baggage performance as measured in the latest Department of
Transportation report.
Network and Partnerships
- Achieved major milestones in the Delta/Korean joint venture
including the completion of pricing harmonization, co-location of
teams in Seoul and Atlanta, and broad alignment of commercial
strategy.
- Signed a definitive agreement with WestJet that, after
regulatory approval, will create a transborder joint venture
serving more than 30 cities, which covers over 95 percent of
U.S.-Canadian demand, providing enhanced offerings and more choice
for customers.
- Continued Delta's global and domestic expansion with the
announcement of plans to expand access to London-Heathrow and Paris-Charles de Gaulle from key hubs and
gateways including Detroit,
Los Angeles, New York-JFK, and
Portland, Ore; new Boston to Lisbon service; new Tampa to Amsterdam service; additional frequency to
Tel Aviv from New York-JFK; and,
new Honolulu service from
Detroit.
Customer Experience and Loyalty
- Installed seat-back entertainment on its 600th aircraft, more
than any airline in the world, giving more customers than ever
convenient access to free in-flight entertainment on Delta
Studio.
- Announced the launch of the first biometric terminal in
the United States, transforming
the customer journey with a seamless travel experience through the
Maynard H. Jackson International Terminal in Atlanta.
- Launched personalized company sites to allow individual
corporate travelers to stay up to date on benefits they receive
through their company's Corporate Sales Agreement with Delta.
Investment Grade Balance Sheet
- Received reaffirmation of an investment-grade credit rating by
S&P Ratings, showing the confidence of the market in the
sustainability and durability of the company.
September Quarter Results
Special items for the quarter consist primarily of
mark-to-market adjustments on refinery fuel hedges and unrealized
gains/losses on investments.
|
GAAP
|
Adjusted
|
($ in millions except
per share and unit costs)
|
3Q18
|
3Q17
|
3Q18
|
3Q17
|
Pre-tax
income
|
1,674
|
|
1,776
|
|
1,601
|
|
1,696
|
|
Net income
|
1,312
|
|
1,159
|
|
1,236
|
|
1,109
|
|
Diluted earnings per
share
|
1.91
|
|
1.61
|
|
1.80
|
|
1.54
|
|
Operating
revenue
|
11,953
|
|
11,061
|
|
11,845
|
|
10,933
|
|
Operating
expense
|
10,311
|
|
9,238
|
|
10,220
|
|
9,184
|
|
Fuel
expense
|
2,498
|
|
1,785
|
|
2,514
|
|
1,859
|
|
Average fuel price
per gallon
|
2.21
|
|
1.61
|
|
2.22
|
|
1.68
|
|
Consolidated unit
cost (CASM/CASM-Ex)
|
14.15
|
|
13.17
|
|
9.62
|
|
9.62
|
|
Non-operating
income/(expense)
|
32
|
|
(47)
|
|
(24)
|
|
(53)
|
|
Total unit revenues
(TRASM/TRASM, adjusted)
|
16.40
|
|
15.77
|
|
16.25
|
|
15.58
|
|
About Delta
Delta Air Lines serves more than 180 million customers each
year. In 2018, Delta was named to Fortune's top 50 Most Admired
Companies in addition to being named the most admired airline for
the seventh time in eight years. Additionally, Delta has ranked
No.1 in the Business Travel News Annual Airline survey for an
unprecedented seven consecutive years. With an industry-leading
global network, Delta and the Delta Connection carriers offer
service to 324 destinations in 57 countries on six continents.
Headquartered in Atlanta, Delta
employs more than 80,000 employees worldwide and operates a
mainline fleet of more than 800 aircraft. The airline is a founding
member of the SkyTeam global alliance and participates in the
industry's leading transatlantic joint venture with Air France-KLM
and Alitalia as well as a joint venture with Virgin Atlantic.
Including its worldwide alliance partners, Delta offers customers
more than 15,000 daily flights, with key hubs and markets including
Amsterdam, Atlanta, Boston, Detroit, Los
Angeles, Mexico City,
Minneapolis/St. Paul, New York-JFK
and LaGuardia, London-Heathrow, Paris-Charles de Gaulle, Salt Lake City, São Paulo, Seattle, Seoul, and Tokyo-Narita.
Delta has invested billions of dollars in airport facilities,
global products and services, and technology to enhance the
customer experience in the air and on the ground. Additional
information is available on the Delta News Hub, as well as
delta.com, Twitter @DeltaNewsHub and Facebook.com/delta.
Forward Looking Statements
Statements in this press release that are not historical facts,
including statements regarding our estimates, expectations,
beliefs, intentions, projections or strategies for the future, may
be "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. 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 and strategies
reflected in or suggested by the forward-looking statements. These
risks and uncertainties include, but are not limited to, the cost
of aircraft fuel; the impact of fuel hedging activity including
rebalancing our hedge portfolio, recording mark-to-market
adjustments or posting collateral in connection with our fuel hedge
contracts; the availability of aircraft fuel; the performance of
our significant investments in airlines in other parts of the
world; the possible effects of accidents involving our aircraft;
breaches or security lapses in our information technology systems;
disruptions in our information technology infrastructure; our
dependence on technology in our operations; the restrictions that
financial covenants in our financing agreements could have on our
financial and business operations; labor issues; the effects of
weather, natural disasters and seasonality on our business; the
effects of an extended disruption in services provided by third
party regional carriers; failure or inability of insurance to cover
a significant liability at Monroe's Trainer refinery; the impact of
environmental regulation on the Trainer refinery, including costs
related to renewable fuel standard regulations; our ability to
retain senior management and key employees; damage to our
reputation and brand if we are exposed to significant adverse
publicity through social media; the effects of terrorist attacks or
geopolitical conflict; competitive conditions in the airline
industry; interruptions or disruptions in service at major airports
at which we operate; the effects of extensive government regulation
on our business; the sensitivity of the airline industry to
prolonged periods of stagnant or weak economic conditions;
uncertainty in economic conditions and regulatory environment in
the United Kingdom related to the
exit of the United Kingdom from
the European Union; and the effects of the rapid spread of
contagious illnesses. 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,
2017 and our Form 10-Q for the quarterly period ended
March 31, 2018. Caution should be
taken not to place undue reliance on our forward-looking
statements, which represent our views only as of October 11, 2018, and which we have no current
intention to update.
DELTA AIR LINES,
INC.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
September
30,
|
|
|
(in millions, except
per share data)
|
2018
|
2017
|
$
Change
|
%
Change
|
|
2018
|
2017
|
$
Change
|
%
Change
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
Passenger
|
10,796
|
|
9,979
|
|
817
|
|
8
|
%
|
|
30,107
|
|
27,925
|
|
2,182
|
|
8
|
%
|
Cargo
|
226
|
|
191
|
|
35
|
|
19
|
%
|
|
651
|
|
542
|
|
109
|
|
20
|
%
|
Other
|
931
|
|
891
|
|
40
|
|
4
|
%
|
|
2,938
|
|
2,443
|
|
495
|
|
20
|
%
|
Total
operating revenue
|
11,953
|
|
11,061
|
|
892
|
|
8
|
%
|
|
33,696
|
|
30,910
|
|
2,786
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating
Expense:
|
|
|
|
|
|
|
|
|
|
Salaries and related
costs
|
2,753
|
|
2,619
|
|
134
|
|
5
|
%
|
|
8,004
|
|
7,525
|
|
479
|
|
6
|
%
|
Aircraft fuel and
related taxes
|
2,498
|
|
1,785
|
|
713
|
|
40
|
%
|
|
6,693
|
|
4,954
|
|
1,739
|
|
35
|
%
|
Regional carriers
expense, excluding fuel
|
903
|
|
887
|
|
16
|
|
2
|
%
|
|
2,643
|
|
2,589
|
|
54
|
|
2
|
%
|
Depreciation and
amortization
|
580
|
|
571
|
|
9
|
|
2
|
%
|
|
1,780
|
|
1,639
|
|
141
|
|
9
|
%
|
Contracted
services
|
562
|
|
543
|
|
19
|
|
3
|
%
|
|
1,646
|
|
1,572
|
|
74
|
|
5
|
%
|
Passenger commissions
and other selling expenses
|
535
|
|
499
|
|
36
|
|
7
|
%
|
|
1,473
|
|
1,371
|
|
102
|
|
7
|
%
|
Ancillary businesses
and refinery
|
410
|
|
387
|
|
23
|
|
6
|
%
|
|
1,396
|
|
975
|
|
421
|
|
43
|
%
|
Aircraft maintenance
materials and outside repairs
|
371
|
|
390
|
|
(19)
|
|
(5)
|
%
|
|
1,233
|
|
1,214
|
|
19
|
|
2
|
%
|
Landing fees and
other rents
|
421
|
|
392
|
|
29
|
|
7
|
%
|
|
1,201
|
|
1,126
|
|
75
|
|
7
|
%
|
Profit
sharing
|
395
|
|
314
|
|
81
|
|
26
|
%
|
|
978
|
|
803
|
|
175
|
|
22
|
%
|
Passenger
service
|
329
|
|
331
|
|
(2)
|
|
(1)
|
%
|
|
892
|
|
849
|
|
43
|
|
5
|
%
|
Aircraft
rent
|
99
|
|
89
|
|
10
|
|
11
|
%
|
|
291
|
|
258
|
|
33
|
|
13
|
%
|
Other
|
455
|
|
431
|
|
24
|
|
6
|
%
|
|
1,305
|
|
1,230
|
|
75
|
|
6
|
%
|
Total operating
expense
|
10,311
|
|
9,238
|
|
1,073
|
|
12
|
%
|
|
29,535
|
|
26,105
|
|
3,430
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
1,642
|
|
1,823
|
|
(181)
|
|
(10)
|
%
|
|
4,161
|
|
4,805
|
|
(644)
|
|
(13)
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-Operating
Expense:
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(84)
|
|
(100)
|
|
16
|
|
(16)
|
%
|
|
(274)
|
|
(297)
|
|
23
|
|
(8)
|
%
|
Unrealized
gain/(loss) on investments, net
|
50
|
|
—
|
|
50
|
|
NM
|
|
(171)
|
|
—
|
|
(171)
|
|
NM
|
Miscellaneous,
net
|
66
|
|
53
|
|
13
|
|
25
|
%
|
|
48
|
|
(51)
|
|
99
|
|
NM
|
Total non-operating
income/(expense), net
|
32
|
|
(47)
|
|
79
|
|
NM
|
|
(397)
|
|
(348)
|
|
(49)
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
Income Before
Income Taxes
|
1,674
|
|
1,776
|
|
(102)
|
|
(6)
|
%
|
|
3,764
|
|
4,457
|
|
(693)
|
|
(16)
|
%
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Provision
|
(362)
|
|
(617)
|
|
255
|
|
(41)
|
%
|
|
(880)
|
|
(1,550)
|
|
670
|
|
(43)
|
%
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
1,312
|
|
$
|
1,159
|
|
$
|
153
|
|
13
|
%
|
|
$
|
2,884
|
|
$
|
2,907
|
|
$
|
(23)
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
$
|
1.91
|
|
$
|
1.62
|
|
|
|
|
$
|
4.15
|
|
$
|
4.01
|
|
|
|
Diluted Earnings
Per Share
|
$
|
1.91
|
|
$
|
1.61
|
|
|
|
|
$
|
4.14
|
|
$
|
4.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Shares Outstanding
|
686
|
|
716
|
|
|
|
|
695
|
|
724
|
|
|
|
Diluted Weighted
Average Shares Outstanding
|
688
|
|
719
|
|
|
|
|
697
|
|
727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Passenger
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
September
30,
|
|
|
(in
millions)
|
2018
|
2017
|
$
Change
|
%
Change
|
|
2018
|
2017
|
$
Change
|
%
Change
|
Ticket- Main
cabin
|
5,873
|
|
5,724
|
|
149
|
|
3
|
%
|
|
16,158
|
|
15,914
|
|
244
|
|
2
|
%
|
Ticket- Business
cabin and premium products
|
3,680
|
|
3,088
|
|
592
|
|
19
|
%
|
|
10,356
|
|
8,609
|
|
1,747
|
|
20
|
%
|
Loyalty travel
awards
|
678
|
|
622
|
|
56
|
|
9
|
%
|
|
1,976
|
|
1,826
|
|
150
|
|
8
|
%
|
Travel-related
services
|
565
|
|
545
|
|
20
|
|
4
|
%
|
|
1,617
|
|
1,576
|
|
41
|
|
3
|
%
|
Total passenger
revenue
|
10,796
|
|
9,979
|
|
817
|
|
8
|
%
|
|
30,107
|
|
27,925
|
|
2,182
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Other
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
September
30,
|
|
|
(in
millions)
|
2018
|
2017
|
$
Change
|
%
Change
|
|
2018
|
2017
|
$
Change
|
%
Change
|
Ancillary businesses
and refinery
|
433
|
|
419
|
|
14
|
|
3
|
%
|
|
1,475
|
|
1,050
|
|
425
|
|
40
|
%
|
Loyalty
program
|
369
|
|
317
|
|
52
|
|
16
|
%
|
|
1,075
|
|
939
|
|
136
|
|
14
|
%
|
Miscellaneous
|
129
|
|
155
|
|
(26)
|
|
(17)
|
%
|
|
388
|
|
454
|
|
(66)
|
|
(15)
|
%
|
Total other
revenue
|
931
|
|
891
|
|
40
|
|
4
|
%
|
|
2,938
|
|
2,443
|
|
495
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
Note: The prior
periods presented here have been recast to reflect adoption of new
accounting standards.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Statistical
Summary
|
(Unaudited)
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2018
|
2017
|
Change
|
|
2018
|
2017
|
Change
|
Revenue passenger
miles (millions)
|
63,320
|
|
61,006
|
|
3.8
|
%
|
|
172,002
|
|
166,533
|
|
3.3
|
%
|
Available seat miles
(millions)
|
72,875
|
|
70,167
|
|
3.9
|
%
|
|
200,842
|
|
194,265
|
|
3.4
|
%
|
Passenger mile yield
(cents)
|
17.05
|
|
16.36
|
|
4.2
|
%
|
|
17.50
|
|
16.77
|
|
4.4
|
%
|
Passenger revenue per
available seat mile (cents)
|
14.81
|
|
14.22
|
|
4.2
|
%
|
|
14.99
|
|
14.37
|
|
4.3
|
%
|
Total revenue per
available seat mile (cents)
|
16.40
|
|
15.77
|
|
4.0
|
%
|
|
16.78
|
|
15.91
|
|
5.5
|
%
|
TRASM, adjusted- see
Note A (cents)
|
16.25
|
|
15.58
|
|
4.3
|
%
|
|
16.51
|
|
15.78
|
|
4.6
|
%
|
Operating cost per
available seat mile (cents)
|
14.15
|
|
13.17
|
|
7.4
|
%
|
|
14.71
|
|
13.44
|
|
9.4
|
%
|
CASM-Ex - see Note A
(cents)
|
9.62
|
|
9.62
|
|
—
|
%
|
|
10.19
|
|
9.97
|
|
2.2
|
%
|
Passenger load
factor
|
86.9
|
%
|
86.9
|
%
|
—
|
pts
|
|
85.6
|
%
|
85.7
|
%
|
(0.1)
|
pts
|
Fuel gallons consumed
(millions)
|
1,135
|
|
1,108
|
|
2.4
|
%
|
|
3,137
|
|
3,073
|
|
2.1
|
%
|
Average price per
fuel gallon
|
$
|
2.21
|
|
$
|
1.61
|
|
37.3
|
%
|
|
$
|
2.13
|
|
$
|
1.61
|
|
32.3
|
%
|
Average price per
fuel gallon, adjusted - see Note A
|
$
|
2.22
|
|
$
|
1.68
|
|
32.1
|
%
|
|
$
|
2.14
|
|
$
|
1.68
|
|
27.3
|
%
|
Number of aircraft in
fleet, end of period
|
1,026
|
|
996
|
|
30
|
|
|
|
|
|
|
Note: The prior
periods presented here have been recast to reflect adoption of new
accounting standards. Except for number of aircraft in fleet,
consolidated data presented includes operations under Delta's
contract carrier arrangements.
|
DELTA AIR LINES,
INC.
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
(in
millions)
|
2018
|
2017
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net income
|
$
|
1,312
|
|
$
|
1,159
|
|
|
|
Depreciation and
amortization
|
580
|
|
571
|
|
|
|
Deferred income
taxes
|
351
|
|
612
|
|
|
|
Pension,
postretirement and postemployment payments greater than
expense
|
(64)
|
|
4
|
|
|
|
Changes in air
traffic liability
|
(825)
|
|
(845)
|
|
|
|
Changes in profit
sharing
|
395
|
|
314
|
|
|
|
Other working capital
changes, net
|
(249)
|
|
(222)
|
|
|
|
Net cash provided by
operating activities
|
1,500
|
|
1,593
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
Property and
equipment additions:
|
|
|
|
|
Flight equipment, including
advance payments
|
(570)
|
|
(614)
|
|
|
|
Ground property and
equipment, including technology
|
(397)
|
|
(328)
|
|
|
|
Net redemptions
(purchases) of short-term investments
|
42
|
|
(213)
|
|
|
|
Other, net
|
17
|
|
(140)
|
|
|
|
Net cash used in
investing activities
|
(908)
|
|
(1,295)
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
Payments on long-term
debt and capital lease obligations
|
(648)
|
|
(255)
|
|
|
|
Repurchases of common
stock
|
(325)
|
|
(550)
|
|
|
|
Cash
dividends
|
(241)
|
|
(219)
|
|
|
|
Proceeds from
long-term obligations
|
—
|
|
—
|
|
|
|
Other, net
|
10
|
|
(62)
|
|
|
|
Net cash used in
financing activities
|
(1,204)
|
|
(1,086)
|
|
|
|
|
|
|
|
|
Net Decrease in
Cash, Cash Equivalents and Restricted Cash
|
(612)
|
|
(788)
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
3,260
|
|
2,305
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
2,648
|
|
$
|
1,517
|
|
|
|
|
|
|
|
|
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
|
$
|
1,380
|
|
$
|
1,478
|
|
|
|
Restricted cash included in
prepaid expenses and other
|
54
|
|
39
|
|
|
|
Other
assets:
|
|
|
|
|
Cash restricted for airport
construction
|
1,214
|
|
—
|
|
|
|
Total cash, cash
equivalents and restricted cash
|
$
|
2,648
|
|
$
|
1,517
|
|
|
|
|
|
|
|
|
Note: The prior
periods presented here have been recast to reflect adoption of new
accounting standards.
|
|
|
DELTA AIR LINES,
INC.
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
September
30,
|
|
December
31,
|
(in
millions)
|
2018
|
|
2017
|
ASSETS
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,380
|
|
|
$
|
1,814
|
|
|
Short-term
investments
|
478
|
|
|
825
|
|
|
Accounts receivable,
net
|
2,517
|
|
|
2,377
|
|
|
Fuel
inventory
|
715
|
|
|
916
|
|
|
Expendable parts and
supplies inventories, net
|
455
|
|
|
413
|
|
|
Prepaid expenses and
other
|
1,181
|
|
|
1,499
|
|
|
Total current
assets
|
6,726
|
|
|
7,844
|
|
|
|
|
|
|
Property and
Equipment, Net:
|
|
|
|
|
Property and
equipment, net
|
28,565
|
|
|
26,563
|
|
|
|
|
|
|
Other
Assets:
|
|
|
|
|
Goodwill
|
9,794
|
|
|
9,794
|
|
|
Identifiable
intangibles, net
|
4,835
|
|
|
4,847
|
|
|
Cash restricted for
airport construction
|
1,214
|
|
|
—
|
|
|
Deferred income
taxes, net
|
432
|
|
|
1,354
|
|
|
Other noncurrent
assets
|
3,437
|
|
|
3,309
|
|
|
Total other
assets
|
19,712
|
|
|
19,304
|
|
Total
assets
|
$
|
55,003
|
|
|
$
|
53,711
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
Liabilities:
|
|
|
|
|
Current maturities of
long-term debt and capital leases
|
$
|
1,176
|
|
|
$
|
2,242
|
|
|
Air traffic
liability
|
5,535
|
|
|
4,364
|
|
|
Accounts
payable
|
3,265
|
|
|
3,674
|
|
|
Accrued salaries and
related benefits
|
2,852
|
|
|
3,022
|
|
|
Frequent flyer
deferred revenue
|
2,935
|
|
|
2,762
|
|
|
Fuel
card obligation
|
1,066
|
|
|
1,067
|
|
|
Other accrued
liabilities
|
1,329
|
|
|
1,868
|
|
|
Total current
liabilities
|
18,158
|
|
|
18,999
|
|
|
|
|
|
|
Noncurrent
Liabilities:
|
|
|
|
|
Long-term debt and
capital leases
|
8,115
|
|
|
6,592
|
|
|
Pension,
postretirement and related benefits
|
8,902
|
|
|
9,810
|
|
|
Frequent flyer
deferred revenue
|
3,607
|
|
|
3,559
|
|
|
Other noncurrent
liabilities
|
2,517
|
|
|
2,221
|
|
|
Total noncurrent
liabilities
|
23,141
|
|
|
22,182
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
13,704
|
|
|
12,530
|
|
Total liabilities and
stockholders' equity
|
$
|
55,003
|
|
|
$
|
53,711
|
|
|
|
|
|
|
Note: The prior
periods presented here have been recast to reflect adoption of new
accounting standards.
|
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 U.S. 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. The Company is not able to
reconcile forward looking non-GAAP financial measures 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.
Pre-tax Income and Net Income, adjusted. We adjust
pre-tax income and net income for mark-to-market ("MTM")
adjustments and settlements on fuel hedge contracts, the MTM
adjustments recorded by our equity method investees, Virgin
Atlantic and Aeroméxico, and unrealized gains/losses on our
investments in GOL, China Eastern
and Air France-KLM, to determine pre-tax income and net income,
adjusted. We include the income tax effect of adjustments when
presenting net income, adjusted.
MTM adjustments and
settlements. 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. Settlements represent cash received or paid on hedge
contracts settled during the period.
Equity investment MTM
adjustments. We record our proportionate share of earnings/loss
from our equity investments in Virgin Atlantic and Aeroméxico in
non-operating expense. We adjust for our equity method investees'
MTM adjustments to allow investors to better understand and analyze
our core operational performance in the periods shown.
Unrealized gain/loss on
investments. We record the unrealized gains/losses on our
investments in GOL, China Eastern
and Air France-KLM in non-operating expense. Adjusting for these
gains/losses allows investors to better understand and analyze our
core operational performance in the periods shown.
|
Three Months
Ended
|
|
Three Months
Ended
|
|
September 30,
2018
|
|
September 30,
2018
|
|
Pre-Tax
|
|
Income
|
|
Net
|
|
Net
Income
|
(in millions, except
per share data)
|
Income
|
|
Tax
|
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
|
1,674
|
|
|
$
|
(362)
|
|
|
$
|
1,312
|
|
|
$
|
1.91
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
MTM adjustments and
settlements
|
(16)
|
|
|
(2)
|
|
|
(18)
|
|
|
|
Equity investment MTM
adjustments
|
(7)
|
|
|
(1)
|
|
|
(8)
|
|
|
|
Unrealized gain/loss on
investments
|
(50)
|
|
|
—
|
|
|
(50)
|
|
|
|
Total
adjustments
|
(73)
|
|
|
(3)
|
|
|
(76)
|
|
|
(0.11)
|
|
Non-GAAP
|
$
|
1,601
|
|
|
$
|
(365)
|
|
|
$
|
1,236
|
|
|
$
|
1.80
|
|
Year-over-year
change
|
$
|
(94)
|
|
|
$
|
221
|
|
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
September 30,
2017
|
|
September 30,
2017
|
|
Pre-Tax
|
|
Income
|
|
Net
|
|
Net
Income
|
(in millions, except
per share data)
|
Income
|
|
Tax
|
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
|
1,776
|
|
|
$
|
(617)
|
|
|
$
|
1,159
|
|
|
$
|
1.61
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
MTM adjustments and
settlements
|
(74)
|
|
|
27
|
|
|
(47)
|
|
|
|
Equity investment MTM
adjustments
|
(7)
|
|
|
3
|
|
|
(4)
|
|
|
|
Total
adjustments
|
(81)
|
|
|
30
|
|
|
(51)
|
|
|
(0.07)
|
|
Non-GAAP
|
$
|
1,696
|
|
|
$
|
(587)
|
|
|
$
|
1,109
|
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
Operating Revenue, adjusted and Total Revenue Per Available
Seat Mile "TRASM", adjusted. We adjust operating revenue and
TRASM for refinery sales to third parties to determine operating
revenue, adjusted and TRASM, adjusted because refinery sales to
third parties are not related to our airline segment. Operating
revenue, adjusted and TRASM, adjusted therefore provide a more
meaningful comparison of revenue from our airline operations to the
rest of the airline industry.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
(in
millions)
|
|
September 30,
2018
|
September 30,
2017
|
|
Change
|
Operating
revenue
|
$
|
11,953
|
|
$
|
11,061
|
|
|
|
Adjusted
for:
|
|
|
|
|
Third-party refinery
sales
|
(108)
|
|
(129)
|
|
|
|
Operating revenue,
adjusted
|
$
|
11,845
|
|
$
|
10,933
|
|
|
8.3
|
%
|
Year-over-year
change
|
|
|
$
|
912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
September 30,
2018
|
September 30,
2017
|
|
Change
|
TRASM
(cents)
|
16.40
|
|
15.77
|
|
|
|
Adjusted
for:
|
|
|
|
|
Third-party refinery
sales
|
(0.15)
|
|
(0.18)
|
|
|
|
TRASM,
adjusted
|
16.25
|
|
15.58
|
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September 30,
2018
|
September 30,
2017
|
|
Change
|
TRASM
(cents)
|
16.78
|
|
15.91
|
|
|
|
Adjusted
for:
|
|
|
|
|
Third-party refinery
sales
|
(0.27)
|
|
(0.13)
|
|
|
|
TRASM,
adjusted
|
16.51
|
|
15.78
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
Fuel expense, adjusted and Average fuel price per gallon,
adjusted. The tables below show the components of fuel expense,
including the impact of the refinery segment and airline segment
hedging on fuel expense and average price per gallon. We then
adjust for MTM adjustments and settlements for the same reason
described under the heading pre-tax income and net income,
adjusted:
|
|
|
|
|
|
Average Price Per
Gallon
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
(in millions, except
per gallon data)
|
2018
|
2017
|
|
|
2018
|
2017
|
Fuel purchase
cost
|
$
|
2,526
|
|
$
|
1,822
|
|
|
|
$
|
2.23
|
|
$
|
1.64
|
|
Airline segment fuel
hedge impact
|
(16)
|
|
—
|
|
|
|
(0.01)
|
|
—
|
|
Refinery segment
impact
|
(12)
|
|
(37)
|
|
|
|
(0.01)
|
|
(0.03)
|
|
Total fuel
expense
|
$
|
2,498
|
|
$
|
1,785
|
|
|
|
$
|
2.21
|
|
$
|
1.61
|
|
MTM adjustments and
settlements
|
16
|
|
74
|
|
|
|
0.01
|
|
0.07
|
|
Total fuel expense,
adjusted
|
$
|
2,514
|
|
$
|
1,859
|
|
|
|
$
|
2.22
|
|
$
|
1.68
|
|
Change
year-over-year
|
$
|
655
|
|
|
|
|
|
|
Percent change
year-over-year
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
(in millions, except
per gallon data)
|
2018
|
2017
|
|
|
2018
|
2017
|
Fuel purchase
cost
|
$
|
6,814
|
|
$
|
5,029
|
|
|
|
$
|
2.17
|
|
$
|
1.64
|
|
Airline segment fuel
hedge impact
|
(20)
|
|
12
|
|
|
|
(0.01)
|
|
—
|
|
Refinery segment
impact
|
(101)
|
|
(87)
|
|
|
|
(0.03)
|
|
(0.03)
|
|
Total fuel
expense
|
$
|
6,693
|
|
$
|
4,954
|
|
|
|
$
|
2.13
|
|
$
|
1.61
|
|
MTM adjustments and
settlements
|
20
|
|
210
|
|
|
|
0.01
|
|
0.07
|
|
Total fuel expense,
adjusted
|
$
|
6,713
|
|
$
|
5,164
|
|
|
|
$
|
2.14
|
|
$
|
1.68
|
|
|
|
|
|
|
|
|
|
Operating Expense, adjusted. We adjust operating expense
for MTM adjustments and settlements and third-party refinery sales
for the same reasons described above under the headings pre-tax
income and net income, adjusted and operating revenue and TRASM,
adjusted to determine operating expense, adjusted.
|
|
|
|
Three Months
Ended
|
|
|
|
|
September
30,
|
(in
millions)
|
|
2018
|
2017
|
Operating
expense
|
|
|
$
|
10,311
|
|
$
|
9,238
|
|
Adjusted
for:
|
|
|
|
|
MTM adjustments and
settlements
|
|
16
|
|
74
|
|
Third-party refinery
sales
|
|
(108)
|
|
(129)
|
|
Operating expense,
adjusted
|
|
$
|
10,220
|
|
$
|
9,184
|
|
Year-over-year
change
|
|
|
$
|
1,036
|
|
|
Non-Fuel Unit Cost or Cost per Available Seat Mile,
("CASM-Ex"). We adjust CASM for the following items to
determine CASM-Ex for the 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 understand and
analyze our non-fuel costs and year-over-year financial
performance.
Ancillary businesses and
refinery. These expenses include aircraft maintenance and
staffing services we provide to third parties, our vacation
wholesale operations and refinery cost of sales to third parties.
Because these businesses are not related to the generation of a
seat mile, we adjust for the costs related to these areas to
provide a more meaningful comparison of the costs of our airline
operations to the rest of the airline industry.
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
|
|
|
|
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
Change
|
CASM
(cents)
|
14.15
|
|
|
13.17
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(3.43)
|
|
|
(2.54)
|
|
|
|
Ancillary businesses and
refinery
|
(0.56)
|
|
|
(0.56)
|
|
|
|
Profit sharing
|
(0.54)
|
|
|
(0.45)
|
|
|
|
CASM-Ex
|
9.62
|
|
|
9.62
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June 30,
2018
|
|
June 30,
2017
|
|
Change
|
CASM
(cents)
|
14.73
|
|
|
13.23
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(3.41)
|
|
|
(2.55)
|
|
|
|
Ancillary businesses and
refinery
|
(0.72)
|
|
|
(0.44)
|
|
|
|
Profit sharing
|
(0.58)
|
|
|
(0.51)
|
|
|
|
CASM-Ex
|
10.02
|
|
|
9.73
|
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
Change
|
CASM
(cents)
|
14.71
|
|
|
13.44
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(3.33)
|
|
|
(2.55)
|
|
|
|
Ancillary businesses and
refinery
|
(0.70)
|
|
|
(0.50)
|
|
|
|
Profit sharing
|
(0.49)
|
|
|
(0.41)
|
|
|
|
CASM-Ex
|
10.19
|
|
|
9.97
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
Non-operating Expense, adjusted. We adjust for equity
investment MTM adjustments and unrealized gain/loss on investments
to determine non-operating expense, adjusted for the same reasons
described above in the heading pre-tax income and net income,
adjusted.
|
|
Three Months
Ended
|
(in
millions)
|
September 30,
2018
|
September 30,
2017
|
Non-operating
income/(expense)
|
$
|
32
|
|
$
|
(47)
|
|
Adjusted
for:
|
|
|
Equity investment MTM
adjustments
|
(7)
|
|
(7)
|
|
Unrealized gain/loss on
investments
|
(50)
|
|
—
|
|
Non-operating
expense, adjusted
|
$
|
(24)
|
|
$
|
(53)
|
|
Change
year-over-year
|
$
|
(30)
|
|
|
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. Adjustments
include:
Net purchases (redemptions) of
short-term investments. Net purchases (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 free cash flow for this activity, net,
to provide investors a better understanding of the company's free
cash flow position core to operations.
Reimbursements from third
parties related to build-to-suit facilities and other.
Management believes investors should be informed that these
reimbursements for build-to-suit leased facilities effectively
reduce net cash provided by operating activities and related
capital expenditures.
|
|
|
|
Three Months
Ended
|
(in
millions)
|
|
|
September 30,
2018
|
Net cash provided by
operating activities
|
|
$
|
1,500
|
|
Net cash used in
investing activities
|
|
(908)
|
|
Adjustments:
|
|
|
Net purchases (redemptions)
of short-term investments
|
|
(42)
|
|
Reimbursements from third
parties related to build-to-suit facilities and other
|
104
|
|
Total free cash
flow
|
|
$
|
655
|
|
Capital Expenditures, net. We present net capital
expenditures because management believes investors should be
informed that a portion of these capital expenditures are
reimbursed by a third party.
|
|
|
Three Months
Ended
|
(in
millions)
|
|
September 30,
2018
|
Flight equipment,
including advance payments
|
|
$
|
570
|
|
Ground property and
equipment, including technology
|
|
397
|
|
Reimbursements from
third parties related to build-to-suit-facilities and
other
|
|
(102)
|
|
Capital expenditures,
net
|
|
$
|
865
|
|
CONTACT:
|
Investor
Relations
|
Corporate
Communications
|
|
404-715-2170
|
404-715-2554,
media@delta.com
|
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SOURCE Delta Air Lines