Record quarterly revenue and second
consecutive quarter of double-digit operating margin
Returned operations to industry-leading
reliability
Expect December quarter revenue recovery to
accelerate relative to 2019
On track to achieve 2024 targets of over
$7 adj. EPS and $4 billion of free cash flow
ATLANTA, Oct. 13,
2022 /PRNewswire/ -- Delta Air Lines (NYSE:DAL) today
reported financial results for the September quarter 2022 and
provided its outlook for the December quarter 2022.
Highlights of the September quarter 2022 results, including both
GAAP and adjusted metrics, are on page five and are incorporated
here.
"Thanks to the incredible work of our entire team, Delta
delivered a strong September quarter with record quarterly revenues
and a double-digit operating margin. The travel recovery
continues as consumer spend shifts to experiences and demand
improves in corporate and international," said Ed Bastian, Delta's chief executive
officer. "In this environment, we expect December quarter
revenue growth to accelerate versus 2019 with an operating margin
of approximately 10 percent."
"With strong demand and a return to best-in-class operational
performance, we are ahead of our plan for the year on profitability
and expect to be free cash flow positive. We're working
towards full network restoration by summer of 2023, which supports
a meaningful step up in profitability and cash flow next year on
our path to earn over $7 of EPS and
$4 billion of free cash flow in
2024," Bastian said.
September Quarter 2022 GAAP Financial
Results
- Operating revenue of $14.0
billion
- Operating income of $1.5 billion
with an operating margin of 10.4 percent
- Earnings per share of $1.08
- Operating cash flow of $869
million
- Payments on debt and finance lease obligations of $1.8 billion
- Total debt and finance lease obligations of $23.2 billion at quarter end
September Quarter 2022 Adjusted Financial
Results
- Operating revenue of $12.8
billion, 3 percent higher than September quarter 2019,
including a $35 million impact from
Hurricane Ian
- Operating income of $1.5 billion
with an operating margin of 11.6 percent
- Earnings per share of $1.51,
including a 3¢ impact from Hurricane Ian
- $11.2 billion in liquidity* and
adjusted net debt of $20.5 billion at
quarter end
*Includes cash and cash
equivalents, short-term investments and undrawn revolving credit
facilities
|
December Quarter Outlook1
|
4Q22 Forecast
|
Total
Revenue2
|
Up 5 - 9%
|
Operating
Margin
|
9 - 11%
|
Earnings Per
Share
|
$1.00 -
$1.25
|
Adjusted Net
Debt
|
~$22.5
billion
|
|
1
Non-GAAP measures; Refer to Non-GAAP reconciliations for 4Q19
comparison figures
|
2
Compared to December quarter 2019
|
Additional metrics for financial modeling can be found in the
Supplemental Information section under Quarterly Results on
ir.delta.com.
September Quarter Revenue Environment and
Outlook
"We reached a major milestone this quarter, with adjusted
revenue 3 percent higher and unit revenues up 23 percent compared
to 2019, marking the highest revenue and unit revenue quarter in
Delta's history. Our results reflect the strength of our
brand and diverse revenue streams, with another quarter of record
co-brand remuneration and continued premium product
outperformance," said Glen
Hauenstein, Delta's president. "With corporate travel
improving and robust domestic and international demand, we expect
December quarter revenue to be up 5 to 9 percent compared to
December quarter 2019."
- Consumer demand remains robust with improving demand for
international travel: Domestic passenger revenue was 2 percent
higher and international passenger revenue was 97 percent recovered
compared to the September quarter 2019. International unit revenue
growth outpaced domestic for the first time since the pandemic.
Transatlantic demand was driven by leisure destinations such as
Italy, Spain and Greece and improving business demand, with
Transatlantic revenue up 12 percent compared to 2019.
- Business bookings improve post Labor Day: Corporate
sales* increased after Labor Day and are at the strongest recovery
rates since the start of the pandemic, exiting the quarter at 80
percent of 2019 levels. Recovery in the least restored sectors
accelerated, and recent corporate survey results show positive
expectations for business travel, with nearly 90 percent of
accounts indicating their travel will stay the same or increase in
the December quarter compared to the September quarter.
- Premium product outperformance continues: Premium
revenue was up 8 percent versus 2019, 10 points higher than the
main cabin revenue growth. Premium and other diversified revenue
streams, including Loyalty, Cargo and MRO, comprised 54 percent of
total revenues.
- Record American Express remuneration supports higher
full year outlook: Remuneration for the September quarter was
$1.4 billion, 37 percent higher
compared to the September quarter 2019 and is now expected to be
$5.5 billion for the full year.
September quarter co-brand card spend was up 44 percent compared to
the September quarter 2019 with co-brand card acquisitions up 17
percent.
- Cargo revenue remains ahead of 2019; MRO revenue surpasses
2019 levels: Cargo revenue was $240
million in the September quarter, a 27 percent increase
compared to the same period in 2019. MRO revenue in the September
quarter was $221 million, a 4 percent
increase compared to 2019.
- Hurricane Ian impact to September and December quarters
expected to be similar: The impact of Hurricane Ian on
September month revenue was $35
million, driven by cancellations and related booking
softness to affected areas. A similar impact is expected in the
month of October.
*Corporate sales
include tickets sold to corporate contracted customers, including
tickets for travel during and beyond the referenced time
period
|
September Quarter Cost Performance and Outlook
"We delivered $1.5 billion of
operating profit with a 12 percent operating margin in the
September quarter despite costs related to our rebuild efforts as
well as inflationary impacts felt across the industry," said
Dan Janki, Delta's chief financial
officer. "With capacity expected to be 91 to 92 percent
restored to 2019 in the December quarter, non-fuel unit costs are
expected to be 12 to 13 percent higher, improving 10 points
sequentially. Improving asset utilization and efficiency
remain key priorities as we move into the final stages of
rebuilding the airline and work to drive a competitive cost
structure."
- Operating expense of $12.5
billion and total adjusted operating expense of $11.3 billion
- Adjusted non-fuel costs of $7.8
billion
- Non-fuel CASM was 22.5 percent higher than September quarter
2019 on 17 percent less capacity
- Adjusted fuel expense of $3.3
billion was up 45 percent compared to the September quarter
2019
- Adjusted fuel price of $3.53 per
gallon includes a refinery benefit of 21¢ per gallon
- Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.8, a
3.0 percent improvement versus 2019
September Quarter Balance Sheet, Cash and
Liquidity
"We repaid $1.8 billion of debt
during the quarter, bringing year-to-date debt repayment to more
than $4 billion," Janki said.
"We remain committed to strengthening our balance sheet, targeting
adjusted net debt of $15 billion and
investment grade metrics by 2024."
- Adjusted net debt of $20.5
billion at quarter end; Weighted average interest rate of
4.5 percent with 83 percent fixed rate debt and 17 percent variable
rate debt
- Payments on debt and finance lease obligations of $1.8 billion, bringing year-to-date total to
$4.2 billion
- Operating cash flow of $869
million and gross capital expenditures of $1.5 billion
- Air Traffic Liability ended September at $9.1 billion, down $817
million compared to June
- Liquidity of $11.2 billion,
including $2.8 billion in undrawn
revolver capacity
Fleet and Partner Updates
On July 18, Delta announced it had
reached an agreement with The Boeing Company to purchase 100 Boeing
737-10 aircraft, with options for 30 more. Deliveries of the
aircraft will begin in 2025. In addition to improved fuel
efficiency, these aircraft will have higher gauge and more premium
seating. Delta's 737 fleet will grow to over 300 aircraft by
2030, making it one of the company's largest fleet families.
The company also announced a service agreement with CFM
International to service the more sustainable next-generation LEAP
engines. Delta TechOps will be one of a select few
maintenance, repair and overhaul providers worldwide for the
LEAP-1B engine.
On September 30, the U.S.
Department of Transportation approved and granted antitrust
immunity to the trans-American Joint Venture Agreement between
Delta and LATAM. The carriers' deepened cooperation under the
Joint Venture Agreement will improve travel options and services
for customers traveling between the U.S./Canada and South America. Both airlines
will work closely to deliver the customer benefits that this
approval unlocks, including expanded capacity, increased routing
options, superior frequent flyer benefits and shared airport
facilities and amenities.
On October 11, Delta announced a
strategic partnership with Joby Aviation, Inc., an all-electric
vertical take-off and landing (eVTOL) innovator. Delta and
Joby share a commitment to delivering a seamless,
zero-operating-emission, premium customer experience for eVTOL
service. The partnership will leverage Delta's commercial and
operational expertise to develop Joby's transformational
home-to-airport transportation service for Delta customers.
On October 12, Delta and Starbucks
announced a new strategic loyalty partnership between Delta
SkyMiles and Starbucks Rewards that allows members to link accounts
and unlock more ways to earn rewards. This partnership
enables more meaningful connection and gets members of both
programs even closer to these brands that they love. Delta is
Starbucks' first account linking partner in the U.S., and this will
be a strong membership and engagement driver for both brands.
Other September Quarter Highlights
Operational Reliability
- Significant improvement in operational reliability in the
September quarter, driven by schedule adjustments, continued hiring
and staffing, better crew availability and process
improvements
- September performance prior to Hurricane Ian was the best month
of 2022, and we achieved a 99.9 percent Mainline domestic
completion factor through September
26, which was no. 1 in our competitive set. On-Time Arrival
rate was no. 1 for the full month of September*
Culture and People
- Recorded $291 million of
profit-sharing accrual year-to-date, expected to be paid out to
Delta employees in February 2023
- Contributed over $500K to the
American Red Cross toward Hurricane relief efforts
- Recognized as one of Forbes' Best Workplaces for Women in the
U.S. for a second year in a row, with employees giving Delta top
marks on the airline's benefits and representation of women in
leadership
- Scored 100 percent on the Disability Equality Index for the
seventh year in a row ranking it as one of the nation's "Best
Places to Work for Disability Inclusion"
Customer Experience and Loyalty
- Welcomed record number of new SkyMiles members and achieved
record American Express co-brand spend
- Delta SkyMiles was ranked one of U.S. News & World Report's
best travel rewards programs for the sixth consecutive year,
outperforming all other U.S. global airlines
- Named the best U.S. airline by The Points Guy for the fourth
year, with the online travel platform noting Delta's excellence in
on-time reliability, a customer-centered experience and an
extensive global network
- Launched Delta Business, an all-encompassing travel brand
featuring premium benefits, industry-leading services and
award-winning account support to elevate every journey
- Unveiled Delta Premium Select enhancements providing a
refreshed onboard experience, with elevated dining and premium
amenities including an upgraded amenity kit and noise-canceling
headsets
- Opened Delta's new Sky Club at Tokyo's Haneda Airport and renovated our Delta
Sky Club in Boston
- Announced two nonstop routes from Atlanta to Cape
Town and Los Angeles to
Tahiti, both beginning December 17,
in addition to nonstop service from Atlanta to Tel
Aviv beginning March 2023.
Atlanta to Cape Town is subject to foreign government
approval
- Announced nonstop service from Los
Angeles to Haneda and launched new daily service between
Honolulu and Haneda, both
beginning December 1
Environmental, Social and Governance
- Issued our second Close the Gap report, highlighting increased
representation of women, Black talent and other underrepresented
racial and ethnic groups in roles across the company while
underscoring that work remains to be done, and the company will
continue to be transparent about progress
- Engaged more than 50 percent of our officer group in Racial
Equity Leadership Workshops, led by the Groundwater Institute
- Validated our Science Based Targets initiative goal to reduce
well-to-wake (lifecycle) scope 1 and 3 jet fuel greenhouse gas
emissions by 45 percent per revenue tonne kilometer by 2035 from a
2019 base year**
- Announced collaboration with MIT to
test methods and develop tools to eliminate persistent contrails,
which are about 10% of all contrails and thought to be one of
aviation's largest environmental impacts
- Partnered with DG Fuels to provide Delta with 55 million
gallons of SAF annually for seven years with delivery anticipated
to begin by the end of 2027
- In an open letter, Delta challenged Atlanta business leaders to join OneTen, the
national coalition aiming to close the opportunity gap for Black
talent by taking a skills-first approach to hiring and
promotions
*Based on FlightStats
preliminary data for Delta Air Lines for all Delta flights system
wide, from September 1-30, 2022, and as compared to Delta's
competitive set (AA, UA, B6, AS, WN, and DL). On-time is defined as
A0
**Non-CO2e effects which may also contribute to aviation induced
warming are not included in this target. Delta Air Lines commits to
publicly report on non-CO2e impacts of aviation over its target
timeframe
|
September Quarter Results
September 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)
|
3Q22
|
3Q19
|
Operating
income
|
1,456
|
2,071
|
(615)
|
(30) %
|
Pre-tax
income
|
962
|
1,947
|
(985)
|
(51) %
|
Net income
|
695
|
1,495
|
(800)
|
(54) %
|
Diluted earnings per
share
|
1.08
|
2.31
|
(1.23)
|
(53) %
|
Operating
margin
|
10.4 %
|
16.5 %
|
(6.1)
pts
|
(37) %
|
Operating
revenue
|
13,975
|
12,560
|
1,415
|
11 %
|
Total revenue per
available seat mile (TRASM) (cents)
|
22.18
|
16.58
|
5.60
|
34 %
|
Operating
expense
|
12,519
|
10,489
|
2,030
|
19 %
|
Operating cash
flow
|
869
|
2,245
|
(1,376)
|
(61) %
|
Capital
expenditures
|
1,442
|
945
|
497
|
53 %
|
Cost per available seat
mile (CASM) (cents)
|
19.87
|
13.85
|
6.02
|
43 %
|
Fuel expense
|
3,318
|
2,239
|
1,079
|
48 %
|
Average fuel price per
gallon
|
3.57
|
1.94
|
1.63
|
84 %
|
Total debt and finance
lease obligations
|
23,233
|
10,119
|
13,114
|
NM
|
|
Adjusted
|
$
Change
|
%
Change
|
($ in millions except
per share and unit costs)
|
3Q22
|
3Q19
|
Operating
income
|
1,492
|
2,047
|
(555)
|
(27) %
|
Pre-tax
income
|
1,276
|
1,968
|
(692)
|
(35) %
|
Net income
|
966
|
1,507
|
(541)
|
(36) %
|
Diluted earnings per
share
|
1.51
|
2.33
|
(0.82)
|
(35) %
|
Operating
margin
|
11.6 %
|
16.4 %
|
(4.8)
pts
|
(29) %
|
Operating
revenue
|
12,840
|
12,507
|
333
|
3 %
|
TRASM
(cents)
|
20.38
|
16.51
|
3.87
|
23 %
|
Operating
expense
|
11,348
|
10,460
|
888
|
8 %
|
Gross capital
expenditures
|
1,467
|
1,223
|
244
|
20 %
|
Non-fuel
cost
|
7,829
|
7,685
|
144
|
2 %
|
Non-fuel unit cost
(CASM-Ex) (cents)
|
12.43
|
10.15
|
2.28
|
22.5 %
|
Fuel expense
|
3,282
|
2,257
|
1,025
|
45 %
|
Average fuel price per
gallon
|
3.53
|
1.96
|
1.57
|
80 %
|
Adjusted net
debt
|
20,541
|
10,265
|
10,276
|
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.
More than 80,000 Delta 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.
Delta has served as many as 200 million customers annually.
Headquartered in Atlanta, Delta
operates significant hubs and key markets in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los
Angeles, Mexico City,
Minneapolis-St. Paul, New York-JFK
and LaGuardia, Paris-Charles de
Gaulle, Salt Lake City,
Seattle, Seoul-Incheon and
Tokyo.
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 is America's most-awarded airline thanks to the
dedication, passion and professionalism of its people, recognized
by Fortune, the Wall Street Journal, and Business Travel News,
among many others.
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 Reports on Forms 10-Q for the quarterly period ended
June 30, 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
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
(in millions, except
per share data)
|
2022
|
2019
|
$ Change
|
% Change
|
|
2022
|
2019
|
$ Change
|
% Change
|
Operating Revenue:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$ 11,464
|
$ 11,410
|
$
54
|
— %
|
|
$ 29,329
|
$ 32,032
|
$ (2,703)
|
(8) %
|
Cargo
|
240
|
189
|
51
|
27 %
|
|
801
|
567
|
234
|
41 %
|
Other
|
2,271
|
961
|
1,310
|
NM
|
|
7,017
|
2,969
|
4,048
|
NM
|
Total operating
revenue
|
13,975
|
12,560
|
1,415
|
11 %
|
|
37,147
|
35,568
|
1,579
|
4 %
|
|
|
|
|
|
|
|
|
|
|
Operating Expense:
|
|
|
|
|
|
|
|
|
|
Salaries and related
costs
|
3,050
|
2,976
|
74
|
2 %
|
|
8,832
|
8,555
|
277
|
3 %
|
Aircraft fuel and
related taxes
|
3,318
|
2,239
|
1,079
|
48 %
|
|
8,633
|
6,508
|
2,125
|
33 %
|
Ancillary businesses
and refinery
|
1,349
|
279
|
1,070
|
NM
|
|
4,449
|
945
|
3,504
|
NM
|
Contracted
services
|
881
|
760
|
121
|
16 %
|
|
2,425
|
2,200
|
225
|
10 %
|
Landing fees and other
rents
|
562
|
566
|
(4)
|
(1) %
|
|
1,611
|
1,638
|
(27)
|
(2) %
|
Depreciation and
amortization
|
538
|
631
|
(93)
|
(15) %
|
|
1,554
|
1,960
|
(406)
|
(21) %
|
Regional carrier
expense
|
528
|
543
|
(15)
|
(3) %
|
|
1,547
|
1,622
|
(75)
|
(5) %
|
Aircraft maintenance
materials and outside repairs
|
487
|
424
|
63
|
15 %
|
|
1,474
|
1,334
|
140
|
10 %
|
Passenger commissions
and other selling expenses
|
546
|
597
|
(51)
|
(9) %
|
|
1,385
|
1,668
|
(283)
|
(17) %
|
Passenger
service
|
406
|
360
|
46
|
13 %
|
|
1,050
|
988
|
62
|
6 %
|
Aircraft
rent
|
131
|
110
|
21
|
19 %
|
|
380
|
318
|
62
|
19 %
|
Profit
sharing
|
237
|
517
|
(280)
|
(54) %
|
|
291
|
1,256
|
(965)
|
(77) %
|
Other
|
486
|
487
|
(1)
|
— %
|
|
1,325
|
1,357
|
(32)
|
(2) %
|
Total operating
expense
|
12,519
|
10,489
|
2,030
|
19 %
|
|
34,956
|
30,349
|
4,607
|
15 %
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
1,456
|
2,071
|
(615)
|
(30) %
|
|
2,191
|
5,219
|
(3,028)
|
(58) %
|
|
|
|
|
|
|
|
|
|
|
Non-Operating Expense:
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(248)
|
(70)
|
(178)
|
NM
|
|
(791)
|
(228)
|
(563)
|
NM
|
Equity method
results
|
4
|
27
|
(23)
|
(85) %
|
|
(8)
|
(44)
|
36
|
(82) %
|
Gain/(loss) on
investments, net
|
(245)
|
(35)
|
(210)
|
NM
|
|
(613)
|
(17)
|
(596)
|
NM
|
Loss on extinguishment
of debt
|
(34)
|
—
|
(34)
|
NM
|
|
(100)
|
—
|
(100)
|
NM
|
Pension and related
benefit/(expense)
|
73
|
(17)
|
90
|
NM
|
|
218
|
(49)
|
267
|
NM
|
Miscellaneous,
net
|
(44)
|
(29)
|
(15)
|
52 %
|
|
(103)
|
(81)
|
(22)
|
27 %
|
Total non-operating
expense, net
|
(494)
|
(124)
|
(370)
|
NM
|
|
(1,397)
|
(419)
|
(978)
|
NM
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
962
|
1,947
|
(985)
|
(51) %
|
|
794
|
4,800
|
(4,006)
|
(83) %
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Provision)/Benefit
|
(267)
|
(452)
|
185
|
(41) %
|
|
(305)
|
(1,131)
|
826
|
(73) %
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
695
|
$
1,495
|
$
(800)
|
(54) %
|
|
$
489
|
$
3,669
|
$ (3,180)
|
(87) %
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share
|
$
1.09
|
$
2.32
|
|
|
|
$
0.77
|
$
5.61
|
|
|
Diluted Earnings Per Share
|
$
1.08
|
$
2.31
|
|
|
|
$
0.76
|
$
5.59
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted Average Shares
Outstanding
|
638
|
646
|
|
|
|
638
|
654
|
|
|
Diluted Weighted Average Shares
Outstanding
|
641
|
648
|
|
|
|
641
|
656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES, INC.
|
Passenger Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
(in
millions)
|
2022
|
2019
|
$ Change
|
% Change
|
|
2022
|
2019
|
$ Change
|
% Change
|
Ticket - Main
cabin
|
$
5,893
|
$
5,990
|
$
(97)
|
(2) %
|
|
$ 15,000
|
$ 16,581
|
$ (1,581)
|
(10) %
|
Ticket - Premium
products
|
4,354
|
4,039
|
315
|
8 %
|
|
11,005
|
11,405
|
(400)
|
(4) %
|
Loyalty travel
awards
|
786
|
732
|
54
|
7 %
|
|
2,073
|
2,174
|
(101)
|
(5) %
|
Travel-related
services
|
431
|
649
|
(218)
|
(34) %
|
|
1,251
|
1,872
|
(621)
|
(33) %
|
Total passenger revenue
|
$ 11,464
|
$ 11,410
|
$
54
|
— %
|
|
$ 29,329
|
$ 32,032
|
$ (2,703)
|
(8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES, INC.
|
Other Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
(in
millions)
|
2022
|
2019
|
$ Change
|
% Change
|
|
2022
|
2019
|
$ Change
|
% Change
|
Refinery
|
$
1,134
|
$
6
|
$
1,128
|
NM
|
|
$
3,835
|
$
94
|
$
3,741
|
NM
|
Loyalty
program
|
655
|
485
|
170
|
35 %
|
|
1,877
|
1,443
|
434
|
30 %
|
Ancillary
businesses
|
249
|
285
|
(36)
|
(13) %
|
|
665
|
896
|
(231)
|
(26) %
|
Miscellaneous
|
233
|
185
|
48
|
26 %
|
|
640
|
536
|
104
|
19 %
|
Total other revenue
|
$
2,271
|
$
961
|
$
1,310
|
NM
|
|
$
7,017
|
$
2,969
|
$
4,048
|
NM
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES, INC.
|
Total Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
3Q22 vs 3Q19
|
Revenue
|
|
3Q22 ($M)
|
|
Change
|
Unit Revenue
|
Yield
|
Capacity
|
Domestic
|
$
|
8,154
|
|
2 %
|
15 %
|
18 %
|
(11) %
|
Atlantic
|
|
2,313
|
|
12 %
|
25 %
|
26 %
|
(11) %
|
Latin
America
|
|
659
|
|
(2) %
|
21 %
|
21 %
|
(19) %
|
Pacific
|
|
338
|
|
(51) %
|
55 %
|
55 %
|
(68) %
|
Total Passenger
|
$
|
11,464
|
|
— %
|
21 %
|
23 %
|
(17) %
|
Cargo Revenue
|
|
240
|
|
27 %
|
|
|
|
Other Revenue
|
|
2,271
|
|
NM
|
|
|
|
Total Revenue
|
$
|
13,975
|
|
11 %
|
34 %
|
|
|
Third Party
Refinery Sales
|
|
(1,134)
|
|
|
|
|
|
Total Revenue, adjusted
|
$
|
12,840
|
|
3 %
|
23 %
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Statistical
Summary
|
(Unaudited)
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
2022
|
2019
|
Change
|
|
2022
|
2019
|
Change
|
Revenue passenger miles
(millions)
|
54,786
|
66,862
|
(18)
|
%
|
|
145,004
|
181,652
|
(20)
|
%
|
Available seat miles
(millions)
|
63,007
|
75,742
|
(17)
|
%
|
|
173,720
|
209,911
|
(17)
|
%
|
Passenger mile yield
(cents)
|
20.93
|
17.07
|
23
|
%
|
|
20.23
|
17.63
|
15
|
%
|
Passenger revenue per
available seat mile (cents)
|
18.19
|
15.06
|
21
|
%
|
|
16.88
|
15.26
|
11
|
%
|
Total revenue per
available seat mile (cents)
|
22.18
|
16.58
|
34
|
%
|
|
21.38
|
16.94
|
26
|
%
|
TRASM, adjusted - see
Note A (cents)
|
20.38
|
16.51
|
23
|
%
|
|
19.18
|
16.83
|
14
|
%
|
Cost per available seat
mile (cents)
|
19.87
|
13.85
|
43
|
%
|
|
20.12
|
14.46
|
39
|
%
|
CASM-Ex - see
Note A (cents)
|
12.43
|
10.15
|
22.5
|
%
|
|
12.78
|
10.66
|
20
|
%
|
Passenger load
factor
|
87 %
|
88 %
|
(1)
|
pt
|
|
83 %
|
87 %
|
(4)
|
pts
|
Fuel gallons consumed
(millions)
|
930
|
1,154
|
(19)
|
%
|
|
2,543
|
3,215
|
(21)
|
%
|
Average price per fuel
gallon
|
$
3.57
|
$
1.94
|
84
|
%
|
|
$
3.39
|
$
2.03
|
67
|
%
|
Average price per fuel
gallon, adjusted - see Note A
|
$
3.53
|
$
1.96
|
80
|
%
|
|
$
3.41
|
$
2.02
|
69
|
%
|
DELTA AIR LINES, INC.
|
|
Consolidated Statements of Cash
Flows
|
|
(Unaudited)
|
|
|
Three Months Ended
|
|
|
September 30,
|
|
(in
millions)
|
2022
|
2019
|
|
Cash Flows From Operating
Activities:
|
|
|
|
Net income
|
$
695
|
$
1,495
|
|
Depreciation and
amortization
|
538
|
631
|
|
Changes in air traffic
liability
|
(817)
|
(854)
|
|
Changes in balance
sheet and other, net
|
453
|
973
|
|
Net cash provided by
operating activities
|
869
|
2,245
|
|
|
|
|
|
Cash Flows From Investing
Activities:
|
|
|
|
Property and equipment
additions:
|
|
|
|
Flight equipment,
including advance payments
|
(973)
|
(549)
|
|
Ground property and
equipment, including technology
|
(469)
|
(396)
|
|
Purchase of short-term
investments
|
(101)
|
—
|
|
Redemption of
short-term investments
|
295
|
—
|
|
Other, net
|
(40)
|
(180)
|
|
Net cash used in investing
activities
|
(1,288)
|
(1,125)
|
|
|
|
|
|
Cash Flows From Financing
Activities:
|
|
|
|
Payments on debt and
finance lease obligations
|
(1,795)
|
(355)
|
|
Repurchase of common
stock
|
—
|
(208)
|
|
Cash
dividends
|
—
|
(260)
|
|
Other, net
|
(13)
|
(628)
|
|
Net cash used in by
financing activities
|
(1,808)
|
(1,451)
|
|
|
|
|
|
Net Decrease in Cash, Cash Equivalents and Restricted
Cash Equivalents
|
(2,227)
|
(331)
|
|
Cash, cash equivalents
and restricted cash equivalents at beginning of period
|
9,552
|
3,029
|
|
Cash, cash equivalents
and restricted cash equivalents at end of period
|
$
7,325
|
$
2,698
|
|
|
|
|
|
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
|
$
7,023
|
$
1,899
|
|
Restricted cash included in
prepaid expenses and other
|
149
|
46
|
|
Other assets:
|
|
|
|
Restricted cash included in
other noncurrent assets
|
153
|
753
|
|
Total cash, cash
equivalents and restricted cash equivalents
|
$
7,325
|
$
2,698
|
|
|
|
|
|
|
DELTA AIR LINES, INC.
|
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
(in
millions)
|
2022
|
|
2021
|
ASSETS
|
Current Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
7,023
|
|
$
7,933
|
|
Short-term
investments
|
1,345
|
|
3,386
|
|
Accounts receivable,
net
|
3,097
|
|
2,404
|
|
Fuel inventory,
expendable parts and supplies inventories, net
|
1,473
|
|
1,098
|
|
Prepaid expenses and
other
|
1,861
|
|
1,119
|
|
Total current
assets
|
14,799
|
|
15,940
|
|
|
|
|
|
Property and Equipment, Net:
|
|
|
|
|
Property and equipment,
net
|
31,512
|
|
28,749
|
|
|
|
|
|
Other Assets:
|
|
|
|
|
Operating lease
right-of-use assets
|
6,961
|
|
7,237
|
|
Goodwill
|
9,753
|
|
9,753
|
|
Identifiable
intangibles, net
|
5,994
|
|
6,001
|
|
Equity
investments
|
1,585
|
|
1,712
|
|
Deferred income taxes,
net
|
935
|
|
1,294
|
|
Other noncurrent
assets
|
1,057
|
|
1,773
|
|
Total other
assets
|
26,285
|
|
27,770
|
Total assets
|
$
72,596
|
|
$
72,459
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
Current Liabilities:
|
|
|
|
|
Current maturities of
debt and finance leases
|
$
2,031
|
|
$
1,782
|
|
Current maturities of
operating leases
|
738
|
|
703
|
|
Air traffic
liability
|
8,947
|
|
6,228
|
|
Accounts
payable
|
4,958
|
|
4,240
|
|
Accrued salaries and
related benefits
|
2,796
|
|
2,457
|
|
Loyalty program
deferred revenue
|
3,478
|
|
2,710
|
|
Fuel card
obligation
|
1,100
|
|
1,100
|
|
Other accrued
liabilities
|
1,822
|
|
1,746
|
|
Total current
liabilities
|
25,870
|
|
20,966
|
|
|
|
|
|
Noncurrent Liabilities:
|
|
|
|
|
Debt and finance
leases
|
21,202
|
|
25,138
|
|
Noncurrent air traffic
liability
|
150
|
|
130
|
|
Pension, postretirement
and related benefits
|
5,470
|
|
6,035
|
|
Loyalty program
deferred revenue
|
4,382
|
|
4,849
|
|
Noncurrent operating
leases
|
6,865
|
|
7,056
|
|
Other noncurrent
liabilities
|
4,067
|
|
4,398
|
|
Total noncurrent
liabilities
|
42,136
|
|
47,606
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
4,590
|
|
3,887
|
Total liabilities and
stockholders' equity
|
$
72,596
|
|
$
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 September quarter 2022 and nine months ended September 2022, we recognized $1 million and
$6 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
|
|
3Q22 vs 3Q19
% Change
|
(in
millions)
|
|
September 30, 2022
|
December 31, 2019
|
September 30, 2019
|
|
Operating
revenue
|
$
13,975
|
$
11,439
|
$
12,560
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(1,134)
|
(2)
|
(6)
|
|
|
Delta Private Jets
adjustment
|
—
|
(53)
|
(47)
|
|
|
Operating revenue,
adjusted
|
$
12,840
|
$
11,384
|
$
12,507
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
3Q22 vs 3Q19
% Change
|
|
|
September 30, 2022
|
September 30, 2019
|
|
|
TRASM
(cents)
|
22.18
|
16.58
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(1.80)
|
(0.01)
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.06)
|
|
|
|
TRASM,
adjusted
|
20.38
|
16.51
|
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30, 2022
|
September 30, 2019
|
|
|
Change
|
TRASM
(cents)
|
21.38
|
16.94
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(2.20)
|
(0.05)
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.07)
|
|
|
|
TRASM,
adjusted
|
19.18
|
16.83
|
|
|
14 %
|
Operating Income,
adjusted
|
|
|
Three Months Ended
|
(in
millions)
|
September 30, 2022
|
September 30, 2019
|
Operating
Income
|
$
1,456
|
$
2,071
|
Adjusted
for:
|
|
|
Restructuring
charges
|
1
|
—
|
MTM adjustments and
settlements on hedges
|
36
|
(25)
|
Delta Private Jets
adjustment
|
—
|
1
|
Operating Income,
adjusted
|
$
1,492
|
$
2,047
|
Operating Margin,
adjusted
|
|
|
|
Three Months Ended
|
|
September 30, 2022
|
September 30, 2019
|
Operating
margin
|
10.4 %
|
16.5 %
|
Adjusted
for:
|
|
|
MTM adjustments and
settlements on hedges
|
0.3
|
(0.2)
|
Third-party refinery
sales
|
0.9
|
0.1
|
Operating margin,
adjusted
|
11.6 %
|
16.4 %
|
Pre-Tax Income, Net
Income, and Diluted Earnings per Share, adjusted
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
September 30, 2022
|
|
September 30, 2022
|
|
Pre-Tax
|
Income
|
Net
|
|
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per Diluted Share
|
GAAP
|
$
962
|
$
(267)
|
$
695
|
|
$
1.08
|
Adjusted
for:
|
|
|
|
|
|
Restructuring
charges
|
1
|
|
|
|
|
Loss on extinguishment
of debt
|
34
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
36
|
|
|
|
|
MTM adjustments on
investments
|
245
|
|
|
|
|
Non-GAAP
|
$
1,276
|
$
(311)
|
$
966
|
|
$
1.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
September 30, 2019
|
|
September 30, 2019
|
|
Pre-Tax
|
Income
|
Net
|
|
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per Diluted Share
|
GAAP
|
$
1,947
|
$
(452)
|
$
1,495
|
|
$
2.31
|
Adjusted
for:
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(25)
|
|
|
|
|
Equity investment MTM
adjustments
|
10
|
|
|
|
|
MTM adjustments on
investments
|
35
|
|
|
|
|
Delta Private Jets
adjustment
|
1
|
|
|
|
|
Non-GAAP
|
$
1,968
|
$
(461)
|
$
1,507
|
|
$
2.33
|
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)
|
|
September 30, 2022
|
September 30, 2019
|
Debt and finance lease
obligations
|
|
$
23,233
|
$
10,119
|
Plus: sale-leaseback
financing liabilities
|
|
2,194
|
—
|
Plus: unamortized
discount/(premium) and debt issue cost, net and other
|
|
151
|
(151)
|
Adjusted debt and
finance lease obligations
|
|
$
25,578
|
$
9,968
|
Plus: 7x last twelve
months' aircraft rent
|
|
3,485
|
2,948
|
Adjusted total
debt
|
|
$
29,062
|
$
12,916
|
Less: cash, cash
equivalents and short-term investments
|
|
(8,368)
|
(1,899)
|
Less: LGA restricted
cash
|
|
(153)
|
(753)
|
Adjusted net
debt
|
|
$
20,541
|
$
10,265
|
Operating Expense,
adjusted
|
|
|
|
|
|
Three Months Ended
|
(in
millions)
|
September 30, 2022
|
June 30, 2022
|
September 30, 2019
|
Operating
expense
|
$
12,519
|
$
12,305
|
$
10,489
|
Adjusted
for:
|
|
|
|
Restructuring
charges
|
(1)
|
1
|
—
|
MTM adjustments and
settlements on hedges
|
(36)
|
73
|
25
|
Third-party refinery
sales
|
(1,134)
|
(1,514)
|
(6)
|
Delta Private Jets
adjustment
|
—
|
—
|
(49)
|
Operating expense,
adjusted
|
$
11,348
|
$
10,866
|
$
10,460
|
Adjusted Non-Fuel
Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile,
("CASM-Ex")
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
3Q22 vs
3Q19
% Change
|
(in
millions)
|
|
|
September 30, 2022
|
June 30, 2022
|
September 30, 2019
|
|
Operating
Expense
|
$
12,519
|
$
12,305
|
$
10,489
|
|
|
Adjusted
for:
|
|
|
|
|
|
Restructuring
charges
|
(1)
|
1
|
—
|
|
|
Aircraft fuel and
related taxes
|
(3,318)
|
(3,223)
|
(2,239)
|
|
|
Third-party refinery
sales
|
(1,134)
|
(1,514)
|
(6)
|
|
|
Profit
sharing
|
(237)
|
(54)
|
(517)
|
|
|
Delta Private Jets
adjustment
|
—
|
—
|
(42)
|
|
|
Non-Fuel
Cost
|
$
7,829
|
$
7,516
|
$
7,685
|
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
3Q22 vs
3Q19
% Change
|
|
|
|
|
September 30, 2022
|
December 31, 2019
|
September 30, 2019
|
|
CASM (cents)
|
19.87
|
15.34
|
13.85
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(5.26)
|
(3.08)
|
(2.96)
|
|
|
Third-party refinery
sales
|
(1.80)
|
—
|
(0.01)
|
|
|
Profit sharing
|
(0.38)
|
(0.59)
|
(0.68)
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.07)
|
(0.05)
|
|
|
CASM-Ex
|
12.43
|
11.59
|
10.15
|
|
22.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
September 30, 2022
|
September 30, 2019
|
|
|
Change
|
CASM (cents)
|
20.12
|
14.46
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(4.97)
|
(3.10)
|
|
|
|
Third-party refinery
sales
|
(2.20)
|
(0.05)
|
|
|
|
Profit sharing
|
(0.17)
|
(0.60)
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.06)
|
|
|
|
CASM-Ex
|
12.78
|
10.66
|
|
|
20 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fuel expense,
adjusted and Average fuel price per gallon, adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Price Per Gallon
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
September 30,
|
June 30,
|
September 30,
|
|
|
September 30,
|
June 30,
|
September 30,
|
(in millions, except
per gallon data)
|
2022
|
2022
|
2019
|
|
|
2022
|
2022
|
2019
|
Total fuel
expense
|
$
3,318
|
$
3,223
|
$
2,239
|
|
|
$
3.57
|
$
3.74
|
$
1.94
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(36)
|
73
|
25
|
|
|
(0.04)
|
0.08
|
0.02
|
Delta Private Jets
adjustment
|
—
|
—
|
(7)
|
|
|
—
|
—
|
(0.01)
|
Total fuel expense,
adjusted
|
$
3,282
|
$
3,296
|
$
2,257
|
|
|
$
3.53
|
$
3.82
|
$
1.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Price Per Gallon
|
|
|
|
Nine Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
September 30,
|
|
|
|
September 30,
|
September 30,
|
|
(in millions, except
per gallon data)
|
2022
|
2019
|
|
|
|
2022
|
2019
|
|
Total fuel
expense
|
$
8,633
|
$
6,508
|
|
|
|
$
3.39
|
$
2.03
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
41
|
8
|
|
|
|
0.02
|
—
|
|
Delta Private Jets
adjustment
|
—
|
(22)
|
|
|
|
—
|
(0.01)
|
|
Total fuel expense,
adjusted
|
$
8,674
|
$
6,494
|
|
|
|
$
3.41
|
$
2.02
|
|
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)
|
September 30, 2022
|
September 30, 2019
|
Flight equipment,
including advance payments
|
$
973
|
$
549
|
Ground property and
equipment, including technology
|
469
|
396
|
Adjusted
for:
|
|
|
Financed aircraft
acquisitions
|
137
|
401
|
Net cash flows related
to certain airport construction projects
|
(112)
|
(123)
|
Gross capital
expenditures
|
$
1,467
|
$
1,223
|
|
|
|
|
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SOURCE Delta Air Lines