Good progress in restoring operational
reliability to Delta's leading standards in July
Generated double digit June quarter
operating margin
Expect double digit operating margin in
September quarter and meaningful full year
profitability
On track to achieve 2024 targets of over
$7 adj. EPS and $4 billion of free cash flow
ATLANTA, July 13,
2022 /PRNewswire/ -- Delta Air Lines (NYSE:DAL) today
reported financial results for the June quarter 2022 and provided
its outlook for the September quarter 2022. Highlights of the
June quarter 2022 results, including both GAAP and adjusted
metrics, are on page five and are incorporated here.
"I would like to thank our entire team for their outstanding
work during a challenging operating environment for the industry as
we work to restore our best-in-class reliability. Their
performance coupled with strong demand drove nearly $2 billion of free cash flow as well as
profitability in the first half of the year, and we are accruing
profit sharing, marking a great milestone for our people," said
Ed Bastian, Delta's chief executive
officer. "For the September quarter, we expect an adjusted
operating margin of 11 to 13 percent, supporting our outlook for
meaningful full year profitability."
June Quarter 2022 GAAP Financial Results
- Operating revenue of $13.8
billion
- Operating income of $1.5 billion
with operating margin of 11.0 percent
- Earnings per share of $1.15
- Operating cash flow of $2.5
billion
- Total debt and finance lease obligations of $24.8 billion
June Quarter 2022 Adjusted Financial
Results
- Operating revenue of $12.3
billion, 99 percent recovered versus June quarter 2019 on 82
percent capacity restoration
- Operating income of $1.4 billion
with operating margin of 11.7 percent, the first quarter of
double-digit margin since 2019
- Earnings per share of $1.44
- Free cash flow of $1.6 billion
after investing $864 million into the
business
- Payments on debt and finance lease obligations of $1.0 billion
- $13.6 billion in liquidity* and
adjusted net debt of $19.6
billion
*Includes cash and cash equivalents, short-term investments and
undrawn revolving credit facilities
September Quarter Outlook1
|
3Q22 Forecast
|
Capacity2
|
Down 15% -
17%
|
Total
Revenue2
|
Up 1% - 5%
|
CASM-Ex2
|
Up ~22%
|
Fuel Price
($/gal)
|
$3.45 -
$3.60
|
Operating
Margin
|
11% - 13%
|
Gross Capital
Expenditures
|
~$1.8
billion
|
Adjusted Net
Debt
|
~$20
billion
|
|
|
1
|
Non-GAAP measures,
except for Capacity; Refer to Non-GAAP reconciliations for 3Q19
comparison figures
|
2
|
Compared to September
quarter 2019
|
Fuel price guidance is based on prices as of July 8th, including Brent at $107 per barrel, cracks at $41 per barrel and $0.27 per gallon refinery contribution.
Additional metrics for financial modeling can be found in the
Supplemental Information section under Quarterly Results on
ir.delta.com.
June Quarter Revenue Environment and Outlook
"With growing demand across our network in the June quarter, we
recaptured higher fuel prices and delivered adjusted revenue
recovery of 99 percent with unit revenues up 20.5 percent versus
2019. We also delivered another record quarter of American
Express co-brand remuneration, up 35 percent from the June quarter
2019, reflecting growing brand preference and further
diversification of our revenue base," said Glen Hauenstein, Delta's president. "With
sustained strength in bookings, we expect September quarter revenue
to be up 1 to 5 percent compared to 2019 with total unit revenue
growth improving sequentially."
- Domestic continues to lead recovery with international
accelerating: Domestic passenger revenue was 3 percent higher
and international passenger revenue was 81 percent recovered
compared to the June quarter 2019. Revenue in Latin America and Transatlantic both exceeded
2019 levels in the month of June and the pace of recovery in the
Pacific saw meaningful improvement, driven by Korea and
Australia re-openings and the
easing of restrictions in Japan.
- Business recovery progressing: Domestic corporate sales*
for the quarter were ~80 percent recovered versus 2019, up 25
points compared to the March quarter. International corporate
sales* for the quarter were ~65 percent recovered versus 2019, up
30 points compared to the March quarter, driven by outsized
improvement in Transatlantic. Recent corporate survey results show
positive expectations for business travel in the September quarter,
including optimism around international travel given the
elimination in June of the pre-departure test requirement for
flights to the U.S.
- Premium products outperforming Main Cabin: Premium
product revenue recovery outpaced Main Cabin across all markets.
Premium and other diversified revenue streams, including Loyalty,
Cargo and MRO, comprised 54 percent of total revenues.
- Strong American Express remuneration: Received
$1.4 billion in the quarter, up 35
percent compared to the June quarter 2019 and on track to surpass
$5 billion for the full year.
Co-brand spend was up 43 percent and co-brand card acquisitions
were up 15 percent compared to the June quarter 2019.
- Cargo records best ever June quarter performance; MRO
approaches 2019 levels: Cargo revenue was $272 million, a 46 percent increase compared to
the same period in 2019. MRO revenue in the June quarter was
$178 million, restored to 85 percent
of 2019 levels.
*Corporate sales include tickets sold to corporate contracted
customers, including tickets for travel during and beyond the
referenced time period
June Quarter Cost Performance and Outlook
"Our June quarter non-fuel unit cost performance of up 22
percent compared to 2019 was impacted by lower capacity, higher
selling-related expenses and investments in operational
reliability," said Dan Janki,
Delta's chief financial officer. "We remain confident in our
ability to meaningfully improve our unit costs as we fully scale
the network and return our operations to Delta's high standards. In
the near-term, as we prioritize restoring reliability, our full
year non-fuel unit cost will remain higher than our previous plan
by approximately 8 points on 5 points less capacity."
- Operating expense of $12.3
billion and total adjusted operating expense of $10.9 billion in the June quarter, both increased
21 percent sequentially
- Adjusted non-fuel costs of $7.5
billion were up 10 percent sequentially, primarily driven by
higher capacity
- Compared to the June quarter 2019, adjusted non-fuel CASM was
22 percent higher on 18 percent less capacity
- Adjusted fuel price of $3.82 per
gallon was up 37 percent sequentially. Compared to the June quarter
2019, market prices were up 94 percent
- Refinery operating income of $269
million resulted in a 31¢ per gallon benefit to our adjusted
fuel price per gallon
- Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.6, a
4.2 percent improvement versus 2019
June Quarter Balance Sheet, Cash and Liquidity
"In the June quarter, we repaid $1
billion of gross debt after delivering strong profitability
and generating free cash flow ahead of our expectations," Janki
said. "We remain committed to achieving investment-grade
metrics and a return on invested capital in the mid-teens over the
next 3 years."
- Adjusted net debt of $19.6
billion; Weighted average interest rate of 4.3 percent with
84 percent fixed rate debt and 16 percent variable rate debt
- Payments on debt and finance lease obligations of $1.0 billion, bringing the first half total to
$2.4 billion
- Free cash flow of $1.6 billion
with operating cash flow of $2.5
billion and gross capital expenditures of $864 million
- Air Traffic Liability ended June at $9.9
billion, up $805 million
compared to March
- Liquidity of $13.6 billion,
including $2.8 billion in undrawn
revolver capacity
Other June Quarter Highlights
Operational Reliability
- Took decisive action to improve resilience and restore
operational reliability for our customers and employees, including
schedule adjustments for the remainder of the year, implementation
of earlier boarding procedures and addition of operational
buffers
- July performance is off to a good start, with an average
month-to-date completion factor of 99.2 percent and 84 percent of
flights arriving within 14 minutes of scheduled arrival time
- Updated airport procedures, including earlier domestic boarding
and schedule modifications at the company's largest hubs to help
drive more on-time departures and successful connections
- Reactivated Peach Corps, providing employees from the corporate
offices the opportunity to step away from daily work routines to
assist frontline colleagues while supporting Delta's operation and
customers
Culture and People
- To reward Delta people for their dedication and excellence,
implemented a 4 percent base pay increase for eligible scale and
merit employees globally on May
1
- Recorded a profit-sharing accrual, which is expected to pay out
to Delta employees in February 2023
to recognize their commitment to serving our people, customers and
communities
- Introduced industry-only boarding premium pay for flight
attendants, marking continued investment in our operational
performance
- Recognized as the No. 1 corporate blood drive sponsor with the
American Red Cross for the fifth consecutive year
- Resumed The Delta Air Lines Foundation Matching Gifts to
Education program, matching Delta employee and retiree donations to
accredited, eligible educational institutions
Customer Experience and Loyalty
- Welcomed record number of new SkyMiles and American Express
co-brand cardholders to our programs
- Celebrated the openings of Delta's Terminal 3 at LAX in April
followed by Terminal C at LGA in June, featuring the company's two
largest Delta Sky Clubs in the
system, part of Delta's $12 billion
investment in multi-year transformation projects at airport hubs
across the country
- In partnership with American Express, launched a
first-of-its-kind, limited-edition Reserve credit card made with
airplane metal of a retired Boeing 747
- Welcomed the first A321neo into service while taking delivery
of two additional A321neos, one A220-300, one A330-900 and five
gently used 737-900ERs
- Enhanced premium offering with new domestic First Class seat on
the A321neo, with larger, improved privacy space, more stowage for
personal items and enhanced memory-foam seat cushions in all
cabins
- In partnership with Misapplied Sciences, launched PARALLEL
REALITY™ beta experience at DTW, a groundbreaking technology
allowing customers to simultaneously see personalized content
tailored to their unique journey on a single digital screen
- As part of Delta's commitment to create a values-led
experience, added onboard snack and beverage options from small
businesses, global suppliers, and woman- and LGBTQ+-led brands
- Introduced new in-flight entertainment from MasterClass, a
streaming platform offering exclusive access to select classes,
alongside hit movies, bingeable TV shows and curated audio
playlists
Environmental, Social and Governance
- Published our 2021 Environmental, Social and Governance (ESG)
Report, sharing the latest data and insight into the company's
efforts to advance its purpose of connecting people with
opportunity while expanding the understanding of the planet and the
people within it
- Leveraged existing infrastructure to accept a batch of
sustainable aviation fuel for a Delta flight from New York's LGA and support the scaling of
lower carbon intensity fuels
- Participated in the SkyTeam Alliance's Sustainable Flight
Challenge, an initiative where partner airlines share learnings and
innovations with the common goal of reducing the industry's carbon
footprint
- Launched new skills-first career development program
establishing a long-term goal of filling 25 percent of corporate
management roles with talent in frontline roles and removing career
barriers of four-year degrees, supporting economic equity through
access to higher-earning jobs across the company
- Joined forces with the Responsible Business Initiative for
Justice (RBIJ) to launch Unlock Potential, a program that helps
drive economic and social mobility for young people disconnected
from education or employment, to create meaningful career
opportunities for at-risk young adults
June Quarter Results
June quarter results have been adjusted primarily for the
unrealized losses on investments, loss on extinguishment of debt
and third-party refinery sales as described in the reconciliations
in Note A.
|
GAAP
|
$
Change
|
%
Change
|
($ in millions except
per share and unit costs)
|
2Q22
|
2Q19
|
Operating
income
|
1,519
|
2,128
|
(609)
|
(29) %
|
Pre-tax
income
|
1,033
|
1,907
|
(874)
|
(46) %
|
Net income
|
735
|
1,443
|
(708)
|
(49) %
|
Diluted earnings per
share
|
1.15
|
2.21
|
(1.06)
|
(48) %
|
Operating
margin
|
11.0 %
|
17.0 %
|
(6.0)
pts
|
(35) %
|
Operating
revenue
|
13,824
|
12,536
|
1,288
|
10 %
|
Total revenue per
available seat mile (TRASM) (cents)
|
23.47
|
17.47
|
6.00
|
34 %
|
Operating
expense
|
12,305
|
10,408
|
1,897
|
18 %
|
Operating cash
flow
|
2,535
|
3,268
|
(733)
|
(22) %
|
Capital
expenditures
|
958
|
1,559
|
(601)
|
(39) %
|
Cost per available seat
mile (CASM) (cents)
|
20.89
|
14.51
|
6.38
|
44 %
|
Fuel expense
|
3,223
|
2,291
|
932
|
41 %
|
Average fuel price per
gallon
|
3.74
|
2.08
|
1.66
|
80 %
|
Total debt and finance
lease obligations
|
24,839
|
9,990
|
14,849
|
NM
|
|
|
Adjusted
|
$
Change
|
%
Change
|
($ in millions except
per share and unit costs)
|
2Q22
|
2Q19
|
Operating
income
|
1,445
|
2,140
|
(695)
|
(32) %
|
Pre-tax
income
|
1,222
|
1,998
|
(776)
|
(39) %
|
Net income
|
921
|
1,533
|
(612)
|
(40) %
|
Diluted earnings per
share
|
1.44
|
2.35
|
(0.91)
|
(39) %
|
Operating
margin
|
11.7 %
|
17.2 %
|
(5.5)
pts
|
(32) %
|
Operating
revenue
|
12,311
|
12,448
|
(137)
|
(1) %
|
TRASM
(cents)
|
20.90
|
17.35
|
3.55
|
20 %
|
Operating
expense
|
10,866
|
10,308
|
558
|
5 %
|
Free cash
flow
|
1,608
|
2,175
|
(567)
|
(26) %
|
Gross capital
expenditures
|
864
|
1,618
|
(754)
|
(47) %
|
Non-fuel
cost
|
7,516
|
7,516
|
—
|
— %
|
Non-fuel unit cost
(CASM-Ex) (cents)
|
12.76
|
10.47
|
2.29
|
22 %
|
Fuel expense
|
3,296
|
2,274
|
1,022
|
45 %
|
Average fuel price per
gallon
|
3.82
|
2.07
|
1.75
|
85 %
|
Adjusted net
debt
|
19,578
|
9,347
|
10,231
|
NM
|
About Delta Air Lines More than 4,000
Delta Air Lines (NYSE: DAL) flights take off every day, connecting
people across more than 275 destinations on six continents with a
commitment to industry-leading customer service, safety and
innovation. As the leading global airline, Delta's mission is to
create opportunities, foster understanding and expand horizons by
connecting people and communities to each other and their
potential.
Delta's more than 80,000 employees believe our customers
should not have to choose between seeing the world and saving the
planet. Delta is working toward more sustainable aviation by
leveraging existing solutions and technologies, investing in the
future of sustainable aviation fuel and actively engaging with
next-generation solutions.
Our people lead the way in delivering a world-class customer
experience, and we're continuing to ensure the future of travel is
personalized, enjoyable and stress-free. Our people's genuine and
enduring motivation is to make every customer feel welcomed and
respected across every point of their journey with us.
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 material adverse
effect that the COVID-19 pandemic has had on our business; the
impact of incurring significant debt in response to the pandemic;
failure to comply with the financial and other covenants in our
financing agreements; the possible effects of accidents involving
our aircraft or aircraft of our airline partners; breaches or
lapses in the security of technology systems on which we rely and
of the data stored within them, as well as compliance with
ever-evolving global privacy and security regulatory obligations;
disruptions in our information technology infrastructure; our
dependence on technology in our operations; 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 realize the full value of
intangible or long-lived assets; labor issues; the effects of
weather, natural disasters and seasonality on our business; changes
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;
failure or inability of insurance to cover a significant liability
at Monroe's Trainer 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; our ability to
retain senior management and other key employees, and to maintain
our company culture; significant damage to our reputation and
brand, including from exposure to significant adverse publicity or
inability to achieve certain sustainability goals; 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 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, 2021 and our
Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2022. 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)
|
2022
|
2019
|
$ Change
|
% Change
|
|
2022
|
2019
|
$ Change
|
% Change
|
Operating Revenue:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$ 10,958
|
$ 11,368
|
$
(410)
|
(4) %
|
|
$ 17,865
|
$ 20,622
|
$ (2,757)
|
(13) %
|
Cargo
|
272
|
186
|
86
|
46 %
|
|
561
|
378
|
183
|
48 %
|
Other
|
2,594
|
982
|
1,612
|
NM
|
|
4,747
|
2,008
|
2,739
|
NM
|
Total operating
revenue
|
13,824
|
12,536
|
1,288
|
10 %
|
|
23,173
|
23,008
|
165
|
1 %
|
|
|
|
|
|
|
|
|
|
|
Operating Expense:
|
|
|
|
|
|
|
|
|
|
Salaries and related
costs
|
2,955
|
2,847
|
108
|
4 %
|
|
5,782
|
5,579
|
203
|
4 %
|
Aircraft fuel and
related taxes
|
3,223
|
2,291
|
932
|
41 %
|
|
5,315
|
4,269
|
1,046
|
25 %
|
Ancillary businesses
and refinery
|
1,718
|
316
|
1,402
|
NM
|
|
3,100
|
667
|
2,433
|
NM
|
Contracted
services
|
791
|
731
|
60
|
8 %
|
|
1,544
|
1,440
|
104
|
7 %
|
Depreciation and
amortization
|
510
|
713
|
(203)
|
(28) %
|
|
1,016
|
1,328
|
(312)
|
(23) %
|
Landing fees and other
rents
|
546
|
548
|
(2)
|
— %
|
|
1,050
|
1,072
|
(22)
|
(2) %
|
Regional carrier
expense
|
528
|
542
|
(14)
|
(3) %
|
|
1,018
|
1,079
|
(61)
|
(6) %
|
Aircraft maintenance
materials and outside repairs
|
522
|
434
|
88
|
20 %
|
|
988
|
910
|
78
|
9 %
|
Passenger commissions
and other selling expenses
|
526
|
597
|
(71)
|
(12) %
|
|
838
|
1,071
|
(233)
|
(22) %
|
Passenger
service
|
369
|
340
|
29
|
9 %
|
|
644
|
628
|
16
|
3 %
|
Aircraft
rent
|
127
|
107
|
20
|
19 %
|
|
249
|
209
|
40
|
19 %
|
Profit
sharing
|
54
|
518
|
(464)
|
(90) %
|
|
54
|
739
|
(685)
|
(93) %
|
Other
|
436
|
424
|
12
|
3 %
|
|
840
|
869
|
(29)
|
(3) %
|
Total operating expense
|
12,305
|
10,408
|
1,897
|
18 %
|
|
22,438
|
19,860
|
2,578
|
13 %
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
1,519
|
2,128
|
(609)
|
(29) %
|
|
735
|
3,148
|
(2,413)
|
(77) %
|
|
|
|
|
|
|
|
|
|
|
Non-Operating Expense:
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(269)
|
(75)
|
(194)
|
NM
|
|
(543)
|
(158)
|
(385)
|
NM
|
Equity method
results
|
(12)
|
(17)
|
5
|
(29) %
|
|
(12)
|
(71)
|
59
|
(83) %
|
Gain/(loss) on
investments, net
|
(221)
|
(82)
|
(139)
|
NM
|
|
(368)
|
18
|
(386)
|
NM
|
Loss on extinguishment
of debt
|
(41)
|
—
|
(41)
|
NM
|
|
(66)
|
—
|
(66)
|
NM
|
Pension and related
benefit/(expense)
|
73
|
(17)
|
90
|
NM
|
|
145
|
(32)
|
177
|
NM
|
Miscellaneous,
net
|
(16)
|
(30)
|
14
|
(47) %
|
|
(58)
|
(52)
|
(6)
|
12 %
|
Total non-operating expense, net
|
(486)
|
(221)
|
(265)
|
NM
|
|
(902)
|
(295)
|
(607)
|
NM
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) Before Income
Taxes
|
1,033
|
1,907
|
(874)
|
(46) %
|
|
(167)
|
2,853
|
(3,020)
|
NM
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Provision)/Benefit
|
(298)
|
(464)
|
166
|
(36) %
|
|
(38)
|
(680)
|
642
|
(94) %
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss)
|
$
735
|
$
1,443
|
$
(708)
|
(49) %
|
|
$
(205)
|
$
2,173
|
$ (2,378)
|
NM
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings/(Loss) Per Share
|
$
1.15
|
$
2.22
|
|
|
|
$
(0.32)
|
$
3.30
|
|
|
Diluted Earnings/(Loss) Per
Share
|
$
1.15
|
$
2.21
|
|
|
|
$
(0.32)
|
$
3.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted Average Shares
Outstanding
|
638
|
650
|
|
|
|
638
|
658
|
|
|
Diluted Weighted Average Shares
Outstanding
|
641
|
652
|
|
|
|
638
|
660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES, INC.
|
Passenger Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
(in
millions)
|
2022
|
2019
|
$ Change
|
% Change
|
|
2022
|
2019
|
$ Change
|
% Change
|
Ticket - Main
cabin
|
$
5,664
|
$
5,911
|
$
(247)
|
(4) %
|
|
$
9,111
|
$ 10,591
|
$ (1,480)
|
(14) %
|
Ticket - Premium
products
|
4,109
|
4,058
|
51
|
1 %
|
|
6,648
|
7,366
|
(718)
|
(10) %
|
Loyalty travel
awards
|
744
|
751
|
(7)
|
(1) %
|
|
1,287
|
1,442
|
(155)
|
(11) %
|
Travel-related
services
|
441
|
648
|
(207)
|
(32) %
|
|
819
|
1,223
|
(404)
|
(33) %
|
Total passenger revenue
|
$ 10,958
|
$ 11,368
|
$
(410)
|
(4) %
|
|
$ 17,865
|
$ 20,622
|
$ (2,757)
|
(13) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES, INC.
|
Other Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
(in
millions)
|
2022
|
2019
|
$ Change
|
% Change
|
|
2022
|
2019
|
$ Change
|
% Change
|
Refinery
|
$
1,514
|
$
40
|
$
1,474
|
NM
|
|
$
2,700
|
$
89
|
$
2,611
|
NM
|
Loyalty
program
|
650
|
484
|
166
|
34 %
|
|
1,221
|
958
|
263
|
27 %
|
Ancillary
businesses
|
206
|
290
|
(84)
|
(29) %
|
|
416
|
610
|
(194)
|
(32) %
|
Miscellaneous
|
224
|
168
|
56
|
33 %
|
|
410
|
351
|
59
|
17 %
|
Total other revenue
|
$
2,594
|
$
982
|
$
1,612
|
NM
|
|
$
4,747
|
$
2,008
|
$
2,739
|
NM
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES, INC.
|
Total Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
2Q22 vs 2Q19
|
Revenue
|
|
2Q22 ($M)
|
|
Change
|
Unit Revenue
|
Yield
|
Capacity
|
Domestic
|
$
|
8,318
|
|
3 %
|
16 %
|
14 %
|
(11) %
|
Atlantic
|
|
1,701
|
|
(9) %
|
10 %
|
13 %
|
(17) %
|
Latin America
|
|
745
|
|
(1) %
|
10 %
|
13 %
|
(10) %
|
Pacific
|
|
194
|
|
(70) %
|
16 %
|
54 %
|
(74) %
|
Total Passenger
|
$
|
10,958
|
|
(4) %
|
17 %
|
18 %
|
(18) %
|
Cargo Revenue
|
|
272
|
|
46 %
|
|
|
|
Other Revenue
|
|
2,594
|
|
NM
|
|
|
|
Total Revenue
|
$
|
13,824
|
|
10 %
|
34 %
|
|
|
Third Party
Refinery Sales
|
|
(1,514)
|
|
|
|
|
|
Total Revenue, adjusted
|
$
|
12,311
|
|
(1) %
|
20 %
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Statistical
Summary
|
(Unaudited)
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
2022
|
2019
|
Change
|
|
2022
|
2019
|
Change
|
Revenue passenger miles
(millions)
|
51,519
|
63,173
|
(18)
|
%
|
|
90,218
|
114,790
|
(21)
|
%
|
Available seat miles
(millions)
|
58,903
|
71,754
|
(18)
|
%
|
|
110,713
|
134,169
|
(17)
|
%
|
Passenger mile yield
(cents)
|
21.27
|
18.00
|
18
|
%
|
|
19.80
|
17.96
|
10
|
%
|
Passenger revenue per
available seat mile (cents)
|
18.60
|
15.84
|
17
|
%
|
|
16.14
|
15.37
|
5
|
%
|
Total revenue per
available seat mile (cents)
|
23.47
|
17.47
|
34
|
%
|
|
20.93
|
17.15
|
22
|
%
|
TRASM, adjusted - see
Note A (cents)
|
20.90
|
17.35
|
20
|
%
|
|
18.49
|
17.01
|
9
|
%
|
Cost per available seat
mile (cents)
|
20.89
|
14.51
|
44
|
%
|
|
20.27
|
14.80
|
37
|
%
|
CASM-Ex - see
Note A (cents)
|
12.76
|
10.47
|
22
|
%
|
|
12.98
|
10.95
|
19
|
%
|
Passenger load
factor
|
87 %
|
88 %
|
(1)
|
pt
|
|
81 %
|
86 %
|
(5)
|
pts
|
Fuel gallons consumed
(millions)
|
863
|
1,099
|
(22)
|
%
|
|
1,613
|
2,061
|
(22)
|
%
|
Average price per fuel
gallon
|
$
3.74
|
$
2.08
|
80
|
%
|
|
$
3.29
|
$
2.07
|
59
|
%
|
Average price per fuel
gallon, adjusted - see Note A
|
$
3.82
|
$
2.07
|
85
|
%
|
|
$
3.34
|
$
2.06
|
62
|
%
|
DELTA AIR LINES, INC.
|
Consolidated Statements of Cash
Flows
|
(Unaudited)
|
|
Three Months Ended
|
|
June 30,
|
(in
millions)
|
2022
|
2019
|
Cash Flows From Operating
Activities:
|
|
|
Net income
|
$
735
|
$
1,443
|
Depreciation and
amortization
|
510
|
713
|
Changes in air traffic
liability
|
805
|
17
|
Changes in balance
sheet and other, net
|
485
|
1,095
|
Net cash provided by
operating activities
|
2,535
|
3,268
|
|
|
|
Cash Flows From Investing
Activities:
|
|
|
Property and equipment
additions:
|
|
|
Flight equipment,
including advance payments
|
(603)
|
(1,166)
|
Ground property and
equipment, including technology
|
(355)
|
(393)
|
Purchase of short-term
investments
|
(248)
|
—
|
Redemption of
short-term investments
|
943
|
—
|
Other, net
|
112
|
(3)
|
Net cash used in investing
activities
|
(152)
|
(1,562)
|
|
|
|
Cash Flows From Financing
Activities:
|
|
|
Payments on debt and
finance lease obligations
|
(952)
|
(1,165)
|
Repurchase of common
stock
|
—
|
(268)
|
Cash
dividends
|
—
|
(229)
|
Other, net
|
(14)
|
—
|
Net cash used in by
financing activities
|
(966)
|
(1,662)
|
|
|
|
Net Increase in Cash, Cash Equivalents and Restricted
Cash Equivalents
|
1,417
|
44
|
Cash, cash equivalents
and restricted cash equivalents at beginning of period
|
8,135
|
2,985
|
Cash, cash equivalents
and restricted cash equivalents at end of period
|
$
9,552
|
$
3,029
|
|
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
|
$
9,221
|
$
2,009
|
Restricted cash included in
prepaid expenses and other
|
154
|
127
|
Other assets:
|
|
|
Restricted cash included in
other noncurrent assets
|
177
|
893
|
Total cash, cash
equivalents and restricted cash equivalents
|
$
9,552
|
$
3,029
|
DELTA AIR LINES, INC.
|
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
(in
millions)
|
2022
|
|
2021
|
ASSETS
|
Current Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
9,221
|
|
$
7,933
|
|
Short-term
investments
|
1,549
|
|
3,386
|
|
Accounts receivable,
net
|
3,093
|
|
2,404
|
|
Fuel inventory,
expendable parts and supplies inventories, net
|
1,734
|
|
1,098
|
|
Prepaid expenses and
other
|
1,716
|
|
1,119
|
|
Total current
assets
|
17,313
|
|
15,940
|
|
|
|
|
|
Property and Equipment, Net:
|
|
|
|
|
Property and equipment,
net
|
30,519
|
|
28,749
|
|
|
|
|
|
Other Assets:
|
|
|
|
|
Operating lease
right-of-use assets
|
7,189
|
|
7,237
|
|
Goodwill
|
9,753
|
|
9,753
|
|
Identifiable
intangibles, net
|
5,997
|
|
6,001
|
|
Equity
investments
|
1,771
|
|
1,712
|
|
Deferred income taxes,
net
|
1,219
|
|
1,294
|
|
Other noncurrent
assets
|
1,044
|
|
1,773
|
|
Total other
assets
|
26,973
|
|
27,770
|
Total assets
|
$
74,805
|
|
$
72,459
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
Current Liabilities:
|
|
|
|
|
Current maturities of
debt and finance leases
|
$
1,936
|
|
$
1,782
|
|
Current maturities of
operating leases
|
726
|
|
703
|
|
Air traffic
liability
|
9,664
|
|
6,228
|
|
Accounts
payable
|
5,353
|
|
4,240
|
|
Accrued salaries and
related benefits
|
2,565
|
|
2,457
|
|
Loyalty program
deferred revenue
|
2,994
|
|
2,710
|
|
Fuel card
obligation
|
1,100
|
|
1,100
|
|
Other accrued
liabilities
|
1,986
|
|
1,746
|
|
Total current
liabilities
|
26,324
|
|
20,966
|
|
|
|
|
|
Noncurrent Liabilities:
|
|
|
|
|
Debt and finance
leases
|
22,903
|
|
25,138
|
|
Noncurrent air traffic
liability
|
250
|
|
130
|
|
Pension, postretirement
and related benefits
|
5,654
|
|
6,035
|
|
Loyalty program
deferred revenue
|
4,763
|
|
4,849
|
|
Noncurrent operating
leases
|
7,006
|
|
7,056
|
|
Other noncurrent
liabilities
|
4,094
|
|
4,398
|
|
Total noncurrent
liabilities
|
44,670
|
|
47,606
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
3,811
|
|
3,887
|
Total liabilities and
stockholders' equity
|
$
74,805
|
|
$
72,459
|
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 directly related to the
impact of COVID-19 and our response. These adjustments are made to
provide comparability between the reported periods, if applicable,
as indicated below:
Restructuring charges. During 2020, we
recorded restructuring charges for items such as fleet impairments
and voluntary early retirement and separation programs following
strategic business decisions in response to the COVID-19 pandemic.
In the June quarter 2022 and six months ended June 2022, we recognized $1 million and
$7 million, respectively, of net
adjustments to certain of those restructuring charges, representing
changes in our estimates.
Loss on extinguishment of debt. This
adjustment relates to early termination of a portion of our
debt.
We also regularly adjust certain GAAP
measures for the following items, if applicable, for the reasons
indicated below:
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.
Delta Private Jets adjustment. Because we
combined Delta Private Jets with Wheels Up in January 2020, we have excluded the impact of
Delta Private Jets from 2019 results for comparability.
MTM adjustments and settlements on
hedges. Mark-to-market ("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.
MTM adjustments on investments.
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 companies without publicly-traded shares. Adjusting
for these gains/losses allows investors to better understand and
analyze our core operational performance in the periods shown.
Equity investment MTM adjustments. We
adjust for our proportionate share of our equity method investee,
Virgin Atlantic's, hedge portfolio MTM adjustments (recorded in
non-operating expense) to allow investors to understand and analyze
our core operational performance in the periods shown.
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.
Operating Revenue,
adjusted and Total Revenue Per Available Seat Mile ("TRASM"),
adjusted
|
|
|
|
|
Three Months Ended
|
|
2Q22 vs 2Q19 %
Change
|
(in
millions)
|
|
June 30, 2022
|
September 30, 2019
|
June 30, 2019
|
|
Operating
revenue
|
$
13,824
|
$
12,560
|
$
12,536
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(1,514)
|
(6)
|
(40)
|
|
|
Delta Private Jets
adjustment
|
—
|
(47)
|
(49)
|
|
|
Operating revenue,
adjusted
|
$
12,311
|
$
12,507
|
$
12,448
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
2Q22 vs 2Q19 %
Change
|
|
|
June 30, 2022
|
June 30, 2019
|
|
|
TRASM
(cents)
|
23.47
|
17.47
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(2.57)
|
(0.06)
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.07)
|
|
|
|
TRASM,
adjusted
|
20.90
|
17.35
|
|
|
20.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30, 2022
|
June 30, 2019
|
|
|
Change
|
TRASM
(cents)
|
20.93
|
17.15
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(2.44)
|
(0.07)
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.07)
|
|
|
|
TRASM,
adjusted
|
18.49
|
17.01
|
|
|
9 %
|
|
|
|
|
|
|
|
|
|
Operating Income,
adjusted
|
|
|
Three Months Ended
|
(in
millions)
|
June 30, 2022
|
June 30, 2019
|
Operating
Income
|
$
1,519
|
$
2,128
|
Adjusted
for:
|
|
|
Restructuring
charges
|
(1)
|
—
|
MTM adjustments and
settlements on hedges
|
(73)
|
10
|
Delta Private Jets
adjustment
|
—
|
1
|
Operating Income,
adjusted
|
$
1,445
|
$
2,140
|
Operating Margin,
adjusted
|
|
|
|
Three Months Ended
|
|
June 30, 2022
|
June 30, 2019
|
Operating
margin
|
11.0 %
|
17.0 %
|
Adjusted
for:
|
|
|
MTM adjustments and
settlements on hedges
|
(0.5)
|
0.1
|
Third-party refinery
sales
|
1.3
|
0.1
|
Operating margin,
adjusted
|
11.7 %
|
17.2 %
|
Pre-Tax Income, Net
Income, and Diluted Earnings per Share, adjusted
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
June 30, 2022
|
|
June 30, 2022
|
|
Pre-Tax
|
Income
|
Net
|
|
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per Diluted Share
|
GAAP
|
$
1,033
|
$
(298)
|
$
735
|
|
$
1.15
|
Adjusted
for:
|
|
|
|
|
|
Restructuring
charges
|
(1)
|
|
|
|
|
Loss on extinguishment
of debt
|
41
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(73)
|
|
|
|
|
MTM adjustments on
investments
|
221
|
|
|
|
|
Non-GAAP
|
$
1,222
|
$
(300)
|
$
921
|
|
$
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
June 30, 2019
|
|
June 30, 2019
|
|
Pre-Tax
|
Income
|
Net
|
|
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per Diluted Share
|
GAAP
|
$
1,907
|
$
(464)
|
$
1,443
|
|
$
2.21
|
Adjusted
for:
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
10
|
|
|
|
|
Equity investment MTM
adjustments
|
(2)
|
|
|
|
|
MTM adjustments on
investments
|
82
|
|
|
|
|
Delta Private Jets
adjustment
|
1
|
|
|
|
|
Non-GAAP
|
$
1,998
|
$
(465)
|
$
1,533
|
|
$
2.35
|
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 2022 incentive
compensation program. 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)
strategic investments and related, (iii) net cash flows related to
certain airport construction projects and other, (iv) financed
aircraft acquisitions and (v) other items that are not
representative of our core operations, such as our pension funding.
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.
Strategic investments and related. Cash
flows related to our investments in and related transactions with
other airlines are included in our GAAP investing activities. We
adjust for this activity because it provides a more meaningful
comparison to our airline industry peers.
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.
Pension funding. Cash flows from pension
funding are reported within operating activities in GAAP results.
We adjust for this item to better illustrate the cash from our core
operations.
|
|
|
|
Three Months Ended
|
(in
millions)
|
|
|
June 30, 2022
|
June 30, 2019
|
Net cash provided by
operating activities
|
|
$
2,535
|
$
3,268
|
Net cash used in
investing activities
|
|
(152)
|
(1,562)
|
Adjusted
for:
|
|
|
|
Net redemptions of
short-term investments
|
|
(695)
|
—
|
Strategic investments
and related
|
|
(105)
|
89
|
Net cash flows related
to certain airport construction projects and other
|
|
94
|
54
|
Financed aircraft
acquisitions
|
|
(69)
|
(174)
|
Pension
funding
|
|
—
|
500
|
Free cash
flow
|
|
$
1,608
|
$
2,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
(in
millions)
|
|
|
June 30, 2022
|
|
Net cash provided by
operating activities
|
|
$
4,306
|
|
Net cash used in
investing activities
|
|
(901)
|
|
Adjusted
for:
|
|
|
|
Net redemptions of
short-term investments
|
|
(1,815)
|
|
Strategic investments
and related
|
|
2
|
|
Net cash flows related
to certain airport construction projects and other
|
|
282
|
|
Financed aircraft
acquisitions
|
|
(69)
|
|
Free cash
flow
|
|
$
1,805
|
|
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, 2022
|
June 30, 2019
|
Flight equipment,
including advance payments
|
$
603
|
$
1,166
|
Ground property and
equipment, including technology
|
355
|
393
|
Adjusted
for:
|
|
|
Financed aircraft
acquisitions
|
69
|
174
|
Net cash flows related
to certain airport construction projects
|
(163)
|
(116)
|
Gross capital
expenditures
|
$
864
|
$
1,618
|
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 and 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.
|
|
|
|
(in
millions)
|
|
June 30, 2022
|
June 30, 2019
|
Debt and finance lease
obligations
|
|
$
24,839
|
$
9,990
|
Plus: sale-leaseback
financing liabilities
|
|
2,208
|
—
|
Plus: unamortized
discount/(premium) and debt issue cost, net and other
|
|
176
|
(125)
|
Adjusted debt and
finance lease obligations
|
|
$
27,222
|
$
9,865
|
Plus: 7x last twelve
months' aircraft rent
|
|
3,303
|
2,874
|
Adjusted total
debt
|
|
$
30,525
|
$
12,739
|
Less: cash, cash
equivalents and short-term investments
|
|
(10,771)
|
(2,009)
|
Less: LGA restricted
cash
|
|
(177)
|
(1,383)
|
Adjusted net
debt
|
|
$
19,578
|
$
9,347
|
Adjusted Non-Fuel
Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile,
("CASM-Ex")
|
|
|
|
|
|
Three Months Ended
|
|
2Q22 vs 2Q19
% Change
|
(in
millions)
|
|
|
June 30, 2022
|
March 31, 2022
|
June 30, 2019
|
|
Operating
Expense
|
$
12,305
|
$
10,131
|
$
10,408
|
|
|
Adjusted
for:
|
|
|
|
|
|
Restructuring
charges
|
1
|
5
|
—
|
|
|
Aircraft fuel and
related taxes
|
(3,223)
|
(2,092)
|
(2,291)
|
|
|
Third-party refinery
sales
|
(1,514)
|
(1,187)
|
(40)
|
|
|
Profit
sharing
|
(54)
|
—
|
(518)
|
|
|
Delta Private Jets
adjustment
|
—
|
—
|
(42)
|
|
|
Non-Fuel
Cost
|
$
7,516
|
$
6,858
|
$
7,516
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
2Q22 vs 2Q19
% Change
|
|
|
|
|
June 30, 2022
|
September 30, 2019
|
June 30, 2019
|
|
CASM (cents)
|
20.89
|
13.85
|
14.51
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(5.47)
|
(2.96)
|
(3.19)
|
|
|
Third-party refinery
sales
|
(2.57)
|
(0.01)
|
(0.06)
|
|
|
Profit sharing
|
(0.09)
|
(0.68)
|
(0.72)
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.05)
|
(0.06)
|
|
|
CASM-Ex
|
12.76
|
10.15
|
10.47
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30, 2022
|
June 30, 2019
|
|
|
Change
|
CASM (cents)
|
20.27
|
14.80
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Restructuring
charges
|
0.01
|
—
|
|
|
|
Aircraft fuel and related
taxes
|
(4.80)
|
(3.18)
|
|
|
|
Third-party refinery
sales
|
(2.44)
|
(0.07)
|
|
|
|
Profit sharing
|
(0.05)
|
(0.55)
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.06)
|
|
|
|
CASM-Ex
|
12.98
|
10.95
|
|
|
19 %
|
Operating Expense,
adjusted
|
|
|
|
Three Months Ended
|
(in
millions)
|
June 30, 2022
|
March 31, 2022
|
June 30, 2019
|
Operating
expense
|
$
12,305
|
$
10,131
|
$
10,408
|
Adjusted
for:
|
|
|
|
Restructuring
charges
|
1
|
5
|
—
|
MTM adjustments and
settlements on hedges
|
73
|
4
|
(10)
|
Third-party refinery
sales
|
(1,514)
|
(1,187)
|
(40)
|
Delta Private Jets
adjustment
|
—
|
—
|
(50)
|
Operating expense,
adjusted
|
$
10,866
|
$
8,954
|
$
10,308
|
|
|
|
Total Fuel expense,
adjusted and Average fuel price per gallon, adjusted
|
|
|
|
|
|
|
|
Average Price Per Gallon
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
June 30,
|
March 31,
|
June 30,
|
|
|
June 30,
|
March 31,
|
June 30,
|
(in millions, except
per gallon data)
|
2022
|
2022
|
2019
|
|
|
2022
|
2022
|
2019
|
Total fuel
expense
|
$
3,223
|
$
2,092
|
$
2,291
|
|
|
$
3.74
|
$
2.79
|
$
2.08
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
73
|
4
|
(10)
|
|
|
0.08
|
0.01
|
(0.01)
|
Delta Private Jets
adjustment
|
—
|
—
|
(8)
|
|
|
—
|
—
|
(0.01)
|
Total fuel expense,
adjusted
|
$
3,296
|
$
2,097
|
$
2,274
|
|
|
$
3.82
|
$
2.79
|
$
2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Price Per Gallon
|
|
|
|
Six Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
June 30,
|
|
|
|
June 30,
|
June 30,
|
|
(in millions, except
per gallon data)
|
2022
|
2019
|
|
|
|
2022
|
2019
|
|
Total fuel
expense
|
$
5,315
|
$
4,269
|
|
|
|
$
3.29
|
$
2.07
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
77
|
(17)
|
|
|
|
0.05
|
(0.01)
|
|
Delta Private Jets
adjustment
|
|
(15)
|
|
|
|
—
|
(0.01)
|
|
Total fuel expense,
adjusted
|
$
5,392
|
$
4,237
|
|
|
|
$
3.34
|
$
2.06
|
|
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SOURCE Delta Air Lines