Delivered industry-leading operational
performance, record March quarter completion factor
March quarter revenue and earnings at the
high end of guidance
Expect record June quarter revenue,
mid-teens operating margin, and EPS of $2.20 to $2.50
Reiterating 2024 outlook for EPS of
$6 to $7 and free cash flow of $3 to $4
billion
ATLANTA, April 10,
2024 /PRNewswire/ -- Delta Air Lines (NYSE: DAL)
today reported financial results for the March quarter and provided
its outlook for the June quarter. Highlights of the March
quarter, including both GAAP and adjusted metrics, are on page five
and incorporated here.
"Thanks to the extraordinary work of our 100,000 people, Delta
is delivering the best operational reliability in our history, and
we have widened the gap to our competitors. We were thrilled
to recognize their efforts with $1.4
billion in profit sharing payouts during the quarter," said
Ed Bastian, Delta's chief executive
officer.
"For the March quarter, we delivered record revenue on
outstanding operational performance, enabling strong earnings
growth. We anticipate continued strong momentum for our
business, and in the June quarter, we expect to deliver record
revenue, a mid-teens operating margin and earnings of $2.20 to $2.50 per
share. We remain confident in our full year targets for
earnings of $6 to $7 per share and free cash flow of $3 to $4
billion."
March Quarter 2024 GAAP Financial
Results
- Operating revenue of $13.7
billion
- Operating income of $614 million
with an operating margin of 4.5 percent
- Pre-tax income of $122 million
with a pre-tax margin of 0.9 percent
- Earnings per share of $0.06
- Operating cash flow of $2.4
billion
- Payments on debt and finance lease obligations of $712 million
- Total debt and finance lease obligations of $19.4 billion at quarter end
March Quarter 2024 Adjusted Financial
Results
- Operating revenue of $12.6
billion, 6 percent higher than the March quarter 2023
- Operating income of $640 million
with an operating margin of 5.1 percent
- Pre-tax income of $380 million
with a pre-tax margin of 3.0 percent
- Earnings per share of $0.45
- Operating cash flow of $2.5
billion
- Free cash flow of $1.4
billion
- Adjusted debt to EBITDAR of 2.9x, down from 3.0x at the end of
2023
- Return on invested capital of 13.8 percent on a trailing five
quarter average, up 2.8 points over prior year
Financial Guidance1
|
FY 2024
Forecast
|
Earnings Per
Share
|
$6 - $7
|
Free Cash Flow
($B)
|
$3 - $4
|
Adjusted Debt to
EBITDAR
|
2x - 3x
|
|
|
|
2Q24
Forecast
|
Total Revenue
YoY
|
Up 5% - 7%
|
Operating
Margin
|
14% - 15%
|
Earnings Per
Share
|
$2.20 -
$2.50
|
|
1Non-GAAP measures; Refer to
Non-GAAP reconciliations for historical comparison figures
|
Additional metrics for financial modeling can be found in the
Supplemental Information section under Quarterly Results on
ir.delta.com.
Revenue Environment and Outlook
"We generated record March quarter revenues, 6 percent
higher than the prior year. Total unit revenue (TRASM) was
down 0.7 percent compared to last year, including a nearly
one-point headwind from Cargo and MRO. This result was at the
high end of our guidance, with the growth rate improving three
points from the December quarter," said Glen Hauenstein, Delta's president.
"Strong demand for travel on Delta is continuing into the June
quarter where we expect total revenue growth of 5 to 7 percent
compared to the June quarter 2023 on TRASM of flat to down 2
percent. Within this outlook, all geographic entities are
expected to achieve unit revenue approximately flat to last year,
except Latin, where we expect a double-digit decline as we lap
strong performance and continue to profitably invest in the
network."
- Record March quarter revenue: Delta delivered March
quarter revenue that was 6 percent higher than 2023 driven by
best-in-class operations and strong demand trends. Delta led the
industry in completion factor and on-time performance, and operated
26 cancel-free, brand-perfect days in the quarter. Adjusted total
unit revenue (TRASM) growth improved 3 points sequentially from the
December quarter 2023 to down 0.7 percent year-over-year, including
a nearly one-point headwind from cargo and MRO.
- Corporate travel demand accelerated: Managed
corporate sales* grew 14 percent year-over-year, led by the return
of large corporate accounts, particularly in the Technology,
Consumer Services and Financial Services sectors. Recent corporate
survey results indicate that 90 percent of companies expect their
travel volumes to increase or stay the same in the June quarter and
beyond.
- Domestic environment improved with robust demand:
Domestic unit revenues were a March quarter record, growing 3
percent year-over-year with record domestic load factors. Unit
revenues improved 7 points sequentially from the December quarter
2023, inflecting positive for the March quarter.
- International travel strength continued: International
passenger revenue was 12 percent higher versus the March quarter
2023, with Transatlantic passenger unit revenue (PRASM) up 2
percent. International passenger unit revenues were down 3 percent
on 16 percent higher capacity as Delta continued to invest in
rebuilding the Latin and Pacific networks.
- Revenue diversification driving Delta's differentiation:
For the quarter, diversified revenue streams, including Loyalty,
Premium, Cargo and MRO comprised 57 percent of total revenues.
Premium revenue grew 10 percent versus the March quarter 2023,
continuing to outperform Main Cabin. Loyalty revenue was up 12
percent, driven by continued co-brand spend growth and increasing
premium card mix. Remuneration from American Express for the March
quarter was $1.7 billion,
approximately 5 percent higher than the March quarter 2023.
*Corporate sales
include tickets sold to corporate contracted customers, including
tickets for travel during and beyond the referenced time
period
|
Cost Performance and Outlook
"For the March quarter, we delivered pre-tax income of
$380 million, an improvement of
$163 million over last year.
Delta's operational excellence resulted in the best March quarter
completion factor in our history, providing an incremental point of
capacity growth and unit cost favorability with non-fuel unit costs
1.5 percent higher than last year," said Dan Janki, Delta's chief financial
officer.
"Growth is normalizing and we are in a period of optimization,
with a focus on restoring our most profitable core hubs and
delivering efficiency gains. For the June quarter, non-fuel
unit costs are expected to increase approximately 2 percent,
consistent with our full year outlook for a low single-digit
increase in non-fuel unit costs over 2023."
March Quarter 2024 Cost
Performance
- Operating expense of $13.1
billion and adjusted operating expense of $11.9 billion
- Adjusted non-fuel costs of $9.2
billion
- Non-fuel CASM was 14.08¢, an increase of 1.5 percent
year-over-year
- Adjusted fuel expense of $2.6
billion was down 5 percent year-over-year
- Adjusted fuel price of $2.76 per
gallon declined 10 percent year-over-year with a refinery benefit
of 5¢ per gallon
- Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.2, a
1.9 percent improvement year-over-year
Balance Sheet, Cash and Liquidity
"Delta delivered $1.4 billion of
free cash flow in the March quarter after paying over $1 billion in profit sharing to our employees and
reinvesting $1.1 billion in the
business. We repaid nearly $1
billion of debt and ended the quarter with 2.9x of
leverage," Janki said.
"We expect to repay at least $4
billion of debt this year and are on track to improve full
year leverage. Our commitment to strengthening the balance
sheet was recognized this quarter with positive outlook updates
from Moody's and Fitch, marking our continued progress towards an
investment grade rating."
- Adjusted net debt of $20.2
billion at March quarter end, a reduction of $1.2 billion from the end of 2023
- Payments on debt and finance lease obligations for the March
quarter of $712 million
- Weighted average interest rate of 4.5 percent with 91 percent
fixed rate debt and 9 percent variable rate debt
- Adjusted operating cash flow in the March quarter of
$2.5 billion, with gross capital
expenditures of $1.1 billion, free
cash flow was $1.4 billion
- Air Traffic Liability ended the quarter at $10.2 billion, up $3.1
billion compared to the end of 2023, a 45 percent
increase
- Liquidity* of $7.4 billion at
quarter-end, including $2.9 billion
in undrawn revolver capacity
*Includes cash and cash
equivalents, short-term investments and undrawn revolving credit
facilities
|
March Quarter 2024 Highlights
Operations, Network and Fleet
- Operated the most reliable airline among our competitors,
ranking first in completion factor and on-time arrivals in the
quarter, setting a Delta record for March quarter completion
factor1
- Recognized as the top U.S. airline by Wall Street Journal for a
third consecutive year, ranking No. 1 in three of seven categories,
including on-time arrivals and involuntary denied boardings
- Named 2024 Airline of the Year by aviation publication Air
Transport World for Delta's outstanding operational performance,
commitment to safety and premium customer service
- Took delivery of 7 new aircraft in the quarter, including the
A321neo and A220-300, which are over 25 percent more fuel efficient
than the aircraft they are replacing
- Announced that daily service between New York-JFK and
Tel-Aviv (TLV) will resume in
June
Culture and People
- Celebrated Delta people with $1.4
billion in profit sharing for 2023 performance, paid on
Valentine's Day
- Honored by Fortune as No. 11 on the World's Most Admired
Companies list
- Named in Fortune's list of the 100 Best Companies to Work
For
- Ranked No. 5 on Forbes' list
of America's Best Large Employers out of 600 companies based on
surveys of more than 170,000 U.S.-based employees
- Celebrated 40 years of partnership with the Atlanta Community
Food Bank at volunteer events with Delta people and SkyMiles
members
- Delta volunteers honored the life and legacy of Dr.
Martin Luther King Jr. by
participating in community service clean-up events at Flushing
Meadows Park in Queens, NY and the
BeltLine in Atlanta on MLK
Day
Customer Experience and Loyalty
- Re-launched Delta's co-brand credit cards with new benefits to
provide customers with better experiences while traveling on Delta,
staying in hotels, renting cars, traveling around town and dining
out
- Achieved record quarterly American Express remuneration with
increasing mix of premium card acquisitions
- Claimed the No. 2 spot on Fast Company's list of Most
Innovative Companies in the travel category, for making fast and
free Wi-Fi standard in the sky
- Named No. 10 on Food & Wine's list of Top Airlines for Food
and Drinks, the only U.S. airline on the list
- Expanded the reach of fast, free Wi-Fi and Delta Sync on over
650 aircraft
- Announced a new premium Delta One lounge at New York-JFK that
will debut in June 2024, spanning
38,000 square feet and featuring a year-round terrace, making it
the largest club in Delta's network
- Provided SkyMiles members at the SXSW festival access to an
elevated Delta lounge, a branded pop-up experience
Environmental, Social and Governance
- Improved fuel efficiency by 1.9 percent year-over-year in the
quarter, driven by fleet renewal and other cross-divisional
sustainability initiatives
- As a founding member of the Minnesota SAF Hub, Delta supported
Greater MSP in issuing a request for proposal for a site selection
study for a dedicated alcohol-to-jet refinery site in Minnesota
- Launched a strategic partnership between Delta and the U.S.
Army PaYS program, which partners with corporations to give
enlisting soldiers and ROTC cadets access to interviews and
potential full-time employment following service in the army
- Delta and LATAM joined forces with New
World School of the Arts to give students an exclusive
Job Shadow Day at Miami International Airport, introducing them
to career opportunities in aviation
- Introduced "Delta Business Class" – a sports business immersion
program leveraging Delta's partnerships with professional sports
teams to create the opportunity for students at four Historically
Black Colleges/Universities (HBCUs) to pursue sports-related
careers
1FlightStats preliminary data for
Delta flights mainline system and for Delta's competitive set (AA,
UA, B6, AS, WN, and DL), from January 1 - March 31, 2024. On-time
is defined as A0.
|
March Quarter 2024 Results
March quarter results have been adjusted primarily for
the third-party refinery sales, unrealized gains/losses on
investments and loss on extinguishment of debt as described in the
reconciliations in Note A.
|
GAAP
|
$
Change
|
%
Change
|
($ in millions except
per share and unit costs)
|
1Q24
|
1Q23
|
Operating
income/(loss)
|
614
|
(277)
|
891
|
NM
|
Operating
margin
|
4.5 %
|
(2.2) %
|
6.7 pts
|
NM
|
Pre-tax
income/(loss)
|
122
|
(506)
|
628
|
NM
|
Pre-tax
margin
|
0.9 %
|
(4.0) %
|
4.9 pts
|
NM
|
Net
income/(loss)
|
37
|
(363)
|
400
|
NM
|
Diluted earnings/(loss)
per share
|
0.06
|
(0.57)
|
0.63
|
NM
|
Operating
revenue
|
13,748
|
12,759
|
989
|
8 %
|
Total revenue per
available seat mile (TRASM) (cents)
|
20.98
|
20.80
|
0.18
|
1 %
|
Operating
expense
|
13,134
|
13,036
|
98
|
1 %
|
Cost per available seat
mile (CASM) (cents)
|
20.04
|
21.25
|
(1.21)
|
(6) %
|
Fuel expense
|
2,598
|
2,676
|
(78)
|
(3) %
|
Average fuel price per
gallon
|
2.79
|
3.01
|
(0.22)
|
(7) %
|
Operating cash
flow
|
2,408
|
2,235
|
173
|
8 %
|
Capital
expenditures
|
1,193
|
1,000
|
193
|
19 %
|
Total debt and finance
lease obligations
|
19,364
|
21,958
|
(2,594)
|
(12) %
|
|
Adjusted
|
$
Change
|
%
Change
|
($ in millions except
per share and unit costs)
|
1Q24
|
1Q23
|
Operating
income
|
640
|
546
|
94
|
17 %
|
Operating
margin
|
5.1 %
|
4.6 %
|
0.5 pts
|
11 %
|
Pre-tax
income
|
380
|
217
|
163
|
75 %
|
Pre-tax
margin
|
3.0 %
|
1.8 %
|
1.2 pts
|
67 %
|
Net income
|
288
|
163
|
125
|
77 %
|
Diluted earnings per
share
|
0.45
|
0.25
|
0.20
|
80 %
|
Operating
revenue
|
12,563
|
11,842
|
721
|
6 %
|
TRASM
(cents)
|
19.17
|
19.30
|
(0.13)
|
(0.7) %
|
Operating
expense
|
11,923
|
11,296
|
627
|
6 %
|
Non-fuel
cost
|
9,227
|
8,506
|
721
|
8 %
|
Non-fuel unit cost
(CASM-Ex) (cents)
|
14.08
|
13.86
|
0.22
|
1.5 %
|
Fuel expense
|
2,571
|
2,718
|
(147)
|
(5) %
|
Average fuel price per
gallon
|
2.76
|
3.06
|
(0.30)
|
(10) %
|
Operating cash
flow
|
2,478
|
2,942
|
(464)
|
(16) %
|
Free cash
flow
|
1,378
|
1,853
|
(475)
|
(26) %
|
Gross capital
expenditures
|
1,110
|
1,090
|
20
|
2 %
|
Adjusted net
debt
|
20,219
|
20,964
|
(745)
|
(4) %
|
About Delta Air Lines Through the warmth
and service of Delta Air Lines (NYSE: DAL) people and the power of
innovation, Delta never stops looking for ways to make every trip
feel tailored to every customer.
There are 100,000 Delta people leading the way to deliver a
world-class customer experience on over 4,000 daily flights to more
than 290 destinations on six continents, connecting people to
places and to each other.
Delta served more than 190 million customers in 2023 --
safely, reliably and with industry-leading customer service
innovation – and was again recognized as North America's most on-time airline by
Cirium. We remain committed to ensuring that the future of travel
is connected, personalized and enjoyable. Our people's genuine and
enduring motivation is to make every customer feel welcomed and
respected across every point of their journey with
us.
Headquartered in Atlanta,
Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los
Angeles, Mexico City,
Minneapolis-St. Paul, New York-JFK
and LaGuardia, Paris-Charles de
Gaulle, Salt Lake City,
Santiago (Chile), Sao
Paulo, Seattle,
Seoul-Incheon and Tokyo.
As the leading global airline, Delta's mission to connect the
world creates opportunities, fosters understanding and expands
horizons by connecting people and communities to each other and to
their own potential.
Powered by innovative and strategic partnerships with
Aeromexico, Air France-KLM, China
Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet,
Delta brings more choice and competition to customers worldwide.
Delta's premium product line is elevated by its unique partnership
with Wheels Up Experience.
Delta is America's most-awarded airline thanks to the
dedication, passion and professionalism of its people. It has been
recognized by Cirium for operational excellence; as the top U.S.
airline by the Wall Street Journal; among Fast Company's Most
Innovative Companies; the World's Most Admired Airline according to
Fortune; as one of Glassdoor's Best Places to Work; and a top
employer for diversity, veterans and best workplaces for women by
Forbes.
Forward Looking Statements
Statements made in this press release that are not historical
facts, including statements regarding our estimates, expectations,
beliefs, intentions, projections, goals, aspirations, commitments
or strategies for the future, should be considered "forward-looking
statements" under the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995. Such statements are not
guarantees or promised outcomes and should not be construed as
such. All forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from the estimates, expectations, beliefs, intentions, projections,
goals, aspirations, commitments and strategies reflected in or
suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to, the possible effects
of serious accidents involving our aircraft or aircraft of our
airline partners; breaches or lapses in the security of technology
systems we use and rely on, which could compromise the data stored
within them, as well as failure to comply with evolving global
privacy and security regulatory obligations or adequately address
increasing customer focus on privacy issues and data security;
disruptions in our information technology infrastructure; our
dependence on technology in our operations; increases in the cost
of aircraft fuel; extended disruptions in the supply of aircraft
fuel, including from Monroe Energy, LLC ("Monroe"), a wholly-owned subsidiary of Delta
that operates the Trainer refinery; failure to receive the expected
results or returns from our commercial relationships with airlines
in other parts of the world and the investments we have in certain
of those airlines; the effects of a significant disruption in the
operations or performance of third parties on which we rely;
failure to comply with the financial and other covenants in our
financing agreements; labor issues; the effects on our business of
seasonality and other factors beyond our control, such as changes
in value in our equity investments, severe weather conditions,
natural disasters or other environmental events, including from the
impact of climate change; failure or inability of insurance to
cover a significant liability at Monroe's refinery; failure to comply with
existing and future environmental regulations to which Monroe's refinery operations are subject,
including costs related to compliance with renewable fuel standard
regulations; significant damage to our reputation and brand,
including from exposure to significant adverse publicity or
inability to achieve certain sustainability goals; our ability to
retain senior management and other key employees, and to maintain
our company culture; disease outbreaks, such as the COVID-19
pandemic or similar public health threats, and measures implemented
to combat them; the effects of terrorist attacks, geopolitical
conflict or security events; competitive conditions in the airline
industry; extended interruptions or disruptions in service at major
airports at which we operate or significant problems associated
with types of aircraft or engines we operate; the effects of
extensive government regulation we are subject to; the impact of
environmental regulation, including but not limited to regulation
of hazardous substances, increased regulation to reduce emissions
and other risks associated with climate change, and the cost of
compliance with more stringent environmental regulations; and
unfavorable economic or political conditions in the markets in
which we operate or volatility in currency exchange rates.
Additional information concerning risks and uncertainties that
could cause differences between actual results and forward-looking
statements is contained in our Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the fiscal
year ended December 31, 2023. Caution
should be taken not to place undue reliance on our forward-looking
statements, which represent our views only as of the date of this
press release, and which we undertake no obligation to update
except to the extent required by law.
DELTA AIR LINES,
INC.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
(in millions, except
per share data)
|
2024
|
2023
|
$
Change
|
%
Change
|
Operating
Revenue:
|
|
|
|
|
Passenger
|
$ 11,131
|
$ 10,411
|
$
720
|
7 %
|
Cargo
|
178
|
209
|
(31)
|
(15) %
|
Other
|
2,439
|
2,139
|
300
|
14 %
|
Total operating
revenue
|
13,748
|
12,759
|
989
|
8 %
|
|
|
|
|
|
Operating
Expense:
|
|
|
|
|
Salaries and related
costs
|
3,791
|
3,386
|
405
|
12 %
|
Aircraft fuel and
related taxes
|
2,598
|
2,676
|
(78)
|
(3) %
|
Ancillary businesses
and refinery
|
1,370
|
1,125
|
245
|
22 %
|
Contracted
services
|
1,024
|
1,010
|
14
|
1 %
|
Landing fees and other
rents
|
748
|
584
|
164
|
28 %
|
Aircraft maintenance
materials and outside repairs
|
679
|
585
|
94
|
16 %
|
Depreciation and
amortization
|
615
|
564
|
51
|
9 %
|
Regional carrier
expense
|
550
|
559
|
(9)
|
(2) %
|
Passenger commissions
and other selling expenses
|
550
|
500
|
50
|
10 %
|
Passenger
service
|
413
|
416
|
(3)
|
(1) %
|
Aircraft
rent
|
136
|
132
|
4
|
3 %
|
Profit
sharing
|
125
|
72
|
53
|
74 %
|
Pilot agreement and
related expenses
|
—
|
864
|
(864)
|
NM
|
Other
|
535
|
563
|
(28)
|
(5) %
|
Total operating expense
|
13,134
|
13,036
|
98
|
1 %
|
|
|
|
|
|
Operating
Income/(Loss)
|
614
|
(277)
|
891
|
NM
|
|
|
|
|
|
Non-Operating
Expense:
|
|
|
|
|
Interest expense,
net
|
(205)
|
(227)
|
22
|
(10) %
|
Gain/(loss) on
investments, net
|
(227)
|
122
|
(349)
|
NM
|
Loss on extinguishment
of debt
|
(4)
|
(22)
|
18
|
(82) %
|
Miscellaneous,
net
|
(56)
|
(102)
|
46
|
(45) %
|
Total non-operating expense, net
|
(492)
|
(229)
|
(263)
|
NM
|
|
|
|
|
|
Income/(Loss) Before
Income Taxes
|
122
|
(506)
|
628
|
NM
|
|
|
|
|
|
Income Tax
(Provision)/Benefit
|
(85)
|
143
|
(228)
|
NM
|
|
|
|
|
|
Net
Income/(Loss)
|
$
37
|
$
(363)
|
$
400
|
NM
|
|
|
|
|
|
Basic
Earnings/(Loss) Per Share
|
$
0.06
|
$
(0.57)
|
|
|
Diluted
Earnings/(Loss) Per Share
|
$
0.06
|
$
(0.57)
|
|
|
|
|
|
|
|
Basic Weighted
Average Shares Outstanding
|
640
|
639
|
|
|
Diluted Weighted
Average Shares Outstanding
|
645
|
639
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Passenger
Revenue
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
(in
millions)
|
2024
|
2023
|
$
Change
|
%
Change
|
Ticket - Main
cabin
|
$
5,425
|
$
5,223
|
$
202
|
4 %
|
Ticket - Premium
products
|
4,408
|
4,016
|
392
|
10 %
|
Loyalty travel
awards
|
844
|
743
|
101
|
14 %
|
Travel-related
services
|
454
|
429
|
25
|
6 %
|
Passenger
revenue
|
$ 11,131
|
$ 10,411
|
$
720
|
7 %
|
DELTA AIR LINES,
INC.
|
Other
Revenue
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
(in
millions)
|
2024
|
2023
|
$
Change
|
%
Change
|
Refinery
|
$
1,185
|
$
916
|
$
269
|
29 %
|
Loyalty
program
|
795
|
726
|
69
|
10 %
|
Ancillary
businesses
|
180
|
231
|
(51)
|
(22) %
|
Miscellaneous
|
279
|
266
|
13
|
5 %
|
Other
revenue
|
$
2,439
|
$
2,139
|
$
300
|
14 %
|
DELTA AIR LINES,
INC.
|
Total
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(Decrease)
|
|
|
|
|
1Q24 vs
1Q23
|
Revenue
|
|
1Q24 ($M)
|
|
Change
|
Unit
Revenue
|
Yield
|
Capacity
|
Domestic
|
$
|
7,983
|
|
5 %
|
3 %
|
— %
|
2 %
|
Atlantic
|
|
1,305
|
|
5 %
|
2 %
|
(1) %
|
2 %
|
Latin
America
|
|
1,265
|
|
12 %
|
(12) %
|
(12) %
|
27 %
|
Pacific
|
|
578
|
|
31 %
|
(4) %
|
(2) %
|
36 %
|
Passenger
Revenue
|
$
|
11,131
|
|
7 %
|
— %
|
(2) %
|
7 %
|
Cargo
Revenue
|
|
178
|
|
(15) %
|
|
|
|
Other
Revenue
|
|
2,439
|
|
14 %
|
|
|
|
Total
Revenue
|
$
|
13,748
|
|
8 %
|
1 %
|
|
|
Third Party
Refinery Sales
|
|
(1,185)
|
|
|
|
|
|
Total Revenue,
adjusted
|
$
|
12,563
|
|
6 %
|
(0.7) %
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
Statistical
Summary
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2024
|
2023
|
Change
|
Revenue passenger miles
(millions)
|
54,207
|
49,687
|
9
|
%
|
Available seat miles
(millions)
|
65,542
|
61,351
|
7
|
%
|
Passenger mile yield
(cents)
|
20.53
|
20.95
|
(2)
|
%
|
Passenger revenue per
available seat mile (cents)
|
16.98
|
16.97
|
—
|
%
|
Total revenue per
available seat mile (cents)
|
20.98
|
20.80
|
1
|
%
|
TRASM, adjusted - see
Note A (cents)
|
19.17
|
19.30
|
(0.7)
|
%
|
Cost per available seat
mile (cents)
|
20.04
|
21.25
|
(6)
|
%
|
CASM-Ex - see
Note A (cents)
|
14.08
|
13.86
|
1.5
|
%
|
Passenger load
factor
|
83 %
|
81 %
|
2
|
pts
|
Fuel gallons consumed
(millions)
|
931
|
888
|
5
|
%
|
Average price per fuel
gallon
|
$
2.79
|
$
3.01
|
(7)
|
%
|
Average price per fuel
gallon, adjusted - see Note A
|
$
2.76
|
$
3.06
|
(10)
|
%
|
DELTA AIR LINES,
INC.
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
(in
millions)
|
2024
|
2023
|
|
Cash Flows From
Operating Activities:
|
|
|
|
Net
Income/(loss)
|
$
37
|
$
(363)
|
|
Depreciation and
amortization
|
615
|
564
|
|
Changes in air traffic
liability
|
3,149
|
2,927
|
|
Changes in profit
sharing
|
(1,259)
|
(491)
|
|
Changes in balance
sheet and other, net
|
(134)
|
(402)
|
|
Net cash provided by
operating activities
|
2,408
|
2,235
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Property and equipment
additions:
|
|
|
|
Flight equipment,
including advance payments
|
(883)
|
(630)
|
|
Ground property and
equipment, including technology
|
(310)
|
(370)
|
|
Purchase of short-term
investments
|
—
|
(999)
|
|
Redemption of
short-term investments
|
546
|
897
|
|
Other, net
|
10
|
2
|
|
Net cash used in
investing activities
|
(637)
|
(1,100)
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Payments on debt and
finance lease obligations
|
(712)
|
(1,166)
|
|
Cash
dividends
|
(64)
|
—
|
|
Other, net
|
(11)
|
(13)
|
|
Net cash used in
financing activities
|
(787)
|
(1,179)
|
|
|
|
|
|
Net
Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash
Equivalents
|
984
|
(44)
|
|
Cash, cash equivalents
and restricted cash equivalents at beginning of period
|
3,395
|
3,473
|
|
Cash, cash equivalents
and restricted cash equivalents at end of period
|
$
4,379
|
$
3,429
|
|
|
|
|
|
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
|
$
3,877
|
$
3,215
|
|
Restricted cash included in
prepaid expenses and other
|
126
|
160
|
|
Other
assets:
|
|
|
|
Restricted cash included in
other noncurrent assets
|
376
|
54
|
|
Total cash, cash
equivalents and restricted cash equivalents
|
$
4,379
|
$
3,429
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Consolidated Balance
Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
(in
millions)
|
2024
|
|
2023
|
ASSETS
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
3,877
|
|
$
2,741
|
|
Short-term
investments
|
589
|
|
1,127
|
|
Accounts receivable,
net
|
3,748
|
|
3,130
|
|
Fuel inventory,
expendable parts and supplies inventories, net
|
1,452
|
|
1,314
|
|
Prepaid expenses and
other
|
1,913
|
|
1,957
|
|
Total current
assets
|
11,579
|
|
10,269
|
|
|
|
|
|
Property and
Equipment, Net:
|
|
|
|
|
Property and equipment,
net
|
35,915
|
|
35,486
|
|
|
|
|
|
Other
Assets:
|
|
|
|
|
Operating lease
right-of-use assets
|
6,785
|
|
7,004
|
|
Goodwill
|
9,753
|
|
9,753
|
|
Identifiable
intangibles, net
|
5,981
|
|
5,983
|
|
Equity
investments
|
3,247
|
|
3,457
|
|
Other noncurrent
assets
|
1,709
|
|
1,692
|
|
Total other
assets
|
27,475
|
|
27,889
|
Total assets
|
$
74,969
|
|
$
73,644
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
Liabilities:
|
|
|
|
|
Current maturities of
debt and finance leases
|
$
2,809
|
|
$
2,983
|
|
Current maturities of
operating leases
|
742
|
|
759
|
|
Air traffic
liability
|
10,193
|
|
7,044
|
|
Accounts
payable
|
4,541
|
|
4,446
|
|
Accrued salaries and
related benefits
|
3,037
|
|
4,561
|
|
Loyalty program
deferred revenue
|
4,018
|
|
3,908
|
|
Fuel card
obligation
|
1,100
|
|
1,100
|
|
Other accrued
liabilities
|
2,038
|
|
1,617
|
|
Total current
liabilities
|
28,478
|
|
26,418
|
|
|
|
|
|
Noncurrent
Liabilities:
|
|
|
|
|
Debt and finance
leases
|
16,555
|
|
17,071
|
|
Pension, postretirement
and related benefits
|
3,524
|
|
3,601
|
|
Loyalty program
deferred revenue
|
4,523
|
|
4,512
|
|
Noncurrent operating
leases
|
6,203
|
|
6,468
|
|
Deferred income taxes,
net
|
994
|
|
908
|
|
Other noncurrent
liabilities
|
3,541
|
|
3,561
|
|
Total noncurrent
liabilities
|
35,340
|
|
36,121
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
11,151
|
|
11,105
|
Total liabilities and
stockholders' equity
|
$
74,969
|
|
$
73,644
|
Note A: The following tables show reconciliations of non-GAAP
financial measures. The reasons Delta uses these measures are
described below. Reconciliations may not calculate due to
rounding.
Delta sometimes uses information ("non-GAAP financial measures")
that is derived from the Consolidated Financial Statements, but
that is not presented in accordance with accounting principles
generally accepted in the U.S. ("GAAP"). Under the Securities and
Exchange Commission rules, non-GAAP financial measures may be
considered in addition to results prepared in accordance with GAAP,
but should not be considered a substitute for or superior to GAAP
results. The tables below show reconciliations of non-GAAP
financial measures used in this release to the most directly
comparable GAAP financial measures.
Forward Looking Projections. Delta is not able to
reconcile forward looking non-GAAP financial measures without
unreasonable effort because the adjusting items such as those used
in the reconciliations below will not be known until the end of the
period and could be significant.
Adjustments. These reconciliations include certain
adjustments to GAAP measures that are made to provide comparability
between the reported periods, if applicable, and for the reasons
indicated below:
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.
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.
One-time pilot agreement expenses.
In the March 2023 quarter, Delta
pilots ratified a new four-year Pilot Working Agreement effective
January 1, 2023. The agreement
included a provision for a one-time payment made upon ratification
in the March 2023 quarter of
$735 million. Additionally, we
recorded adjustments to other benefit-related items of
approximately $130 million. Adjusting
for these expenses allows investors to better understand and
analyze our core cost performance.
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 certain companies, particularly those without
publicly-traded shares. Adjusting for these gains/losses allows
investors to better understand and analyze our core operational
performance in the periods shown.
Loss on extinguishment of debt. This
adjustment relates to early termination of a portion of our debt.
Adjusting for these losses allows investors to better understand
and analyze our core operational performance in the periods
shown.
Operating Revenue, adjusted and Total Revenue Per Available
Seat Mile ("TRASM"), adjusted
|
Three Months
Ended
|
|
1Q24 vs 1Q23
% Change
|
(in
millions)
|
March 31,
2024
|
June 30,
2023
|
March 31,
2023
|
|
Operating
revenue
|
$
13,748
|
$
15,578
|
$
12,759
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(1,185)
|
(965)
|
(916)
|
|
|
Operating revenue,
adjusted
|
$
12,563
|
$
14,613
|
$
11,842
|
|
6 %
|
|
Three Months
Ended
|
|
1Q24 vs 1Q23
% Change
|
4Q23 vs 4Q22
% Change
|
|
March 31,
2024
|
December 31,
2023
|
June 30,
2023
|
March 31,
2023
|
December 31,
2022
|
|
TRASM
(cents)
|
20.98
|
20.78
|
22.58
|
20.80
|
22.58
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Third-party refinery
sales
|
(1.81)
|
(0.82)
|
(1.40)
|
(1.49)
|
(1.92)
|
|
|
|
TRASM,
adjusted
|
19.17
|
19.95
|
21.18
|
19.30
|
20.66
|
|
(0.7) %
|
(3) %
|
Operating Income, adjusted
|
Three Months
Ended
|
(in
millions)
|
March 31,
2024
|
March 31,
2023
|
Operating
income/(loss)
|
$
614
|
$
(277)
|
Adjusted
for:
|
|
|
MTM adjustments and
settlements on hedges
|
27
|
(41)
|
One-time pilot
agreement expenses
|
—
|
864
|
Operating income,
adjusted
|
$
640
|
$
546
|
Operating Margin, adjusted
|
Three Months
Ended
|
|
March 31,
2024
|
March 31,
2023
|
Operating
margin
|
4.5 %
|
(2.2) %
|
Adjusted
for:
|
|
|
Third-party refinery
sales
|
0.4
|
0.3
|
MTM adjustments and
settlements on hedges
|
0.2
|
(0.3)
|
One-time pilot
agreement expenses
|
—
|
6.8
|
Operating margin,
adjusted
|
5.1 %
|
4.6 %
|
Pre-Tax Income/(Loss), Net Income/(Loss), and
Diluted Earnings/(Loss) per Share, adjusted
|
Three Months
Ended
|
|
Three Months
Ended
|
|
March 31,
2024
|
|
March 31,
2024
|
|
Pre-Tax
|
Income
|
Net
|
|
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
122
|
$
(85)
|
$
37
|
|
$
0.06
|
Adjusted
for:
|
|
|
|
|
|
MTM adjustments on
investments
|
227
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
27
|
|
|
|
|
Loss on extinguishment
of debt
|
4
|
|
|
|
|
Non-GAAP
|
$
380
|
$
(92)
|
$
288
|
|
$
0.45
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
March 31,
2023
|
|
March 31,
2023
|
|
Pre-Tax
|
Income
|
Net
|
|
(Loss)/Earnings
|
(in millions, except
per share data)
|
(Loss)/Income
|
Tax
|
(Loss)/Income
|
|
Per Diluted
Share
|
GAAP
|
$
(506)
|
$
143
|
$
(363)
|
|
$
(0.57)
|
Adjusted
for:
|
|
|
|
|
|
MTM adjustments on
investments
|
(122)
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(41)
|
|
|
|
|
Loss on extinguishment
of debt
|
22
|
|
|
|
|
One-time pilot
agreement expenses
|
864
|
|
|
|
|
Non-GAAP
|
$
217
|
$
(53)
|
$
163
|
|
$
0.25
|
Pre-Tax Margin, adjusted
|
Three Months
Ended
|
|
March 31,
2024
|
March 31,
2023
|
Pre-tax
margin
|
0.9 %
|
(4.0) %
|
Adjusted
for:
|
|
|
Third-party refinery
sales
|
0.3
|
0.1
|
MTM adjustments on
investments
|
1.6
|
(1.0)
|
MTM adjustments and
settlements on hedges
|
0.2
|
(0.3)
|
Loss on extinguishment
of debt
|
—
|
0.2
|
One-time pilot
agreement expenses
|
—
|
6.8
|
Pre-tax margin,
adjusted
|
3.0 %
|
1.8 %
|
Operating Cash Flow, adjusted. We present operating cash
flow, adjusted because management believes adjusting for the
following items provides a more meaningful measure for
investors:
Net cash flows related to certain airport
construction projects and other. Cash flows related to certain
airport construction projects are included in our GAAP operating
activities. We have adjusted for these items, which were primarily
funded by cash restricted for airport construction, to provide
investors a better understanding of the company's operating cash
flow that is core to our operations in the periods shown.
Pilot agreement payment. In March 2023, Delta pilots ratified a new four-year
Pilot Working Agreement effective January 1,
2023. The agreement includes a provision for a one-time
payment upon ratification in the March
2023 quarter of $735 million.
We adjust for this item to provide investors a better understanding
of our recurring cash flow generated by our operations.
|
Three Months
Ended
|
(in
millions)
|
March 31,
2024
|
March 31,
2023
|
Net cash provided by
operating activities
|
$
2,408
|
$
2,235
|
Adjusted
for:
|
|
|
Net cash flows related
to certain airport construction projects and other
|
70
|
(28)
|
Pilot agreement
payment
|
—
|
735
|
Net cash provided by
operating activities, adjusted
|
$
2,478
|
$
2,942
|
Free Cash Flow. We present free cash flow because
management believes this metric is helpful to investors to evaluate
the company's ability to generate cash that is available for use
for debt service or general corporate initiatives. Free cash flow
is also used internally as a component of our incentive
compensation programs. Free cash flow is defined as net cash from
operating activities and net cash from investing activities,
adjusted for (i) net purchases/(redemptions) of short-term
investments, (ii) net cash flows related to certain airport
construction projects and other, (iii) financed aircraft
acquisitions and (iv) pilot agreement payment. These adjustments
are made for the following reasons:
Net purchases/(redemptions) of short-term
investments. Net purchases/(redemptions) of short-term
investments represent the net purchase and sale activity of
investments and marketable securities in the period, including
gains and losses. We adjust for this activity to provide investors
a better understanding of the company's free cash flow generated by
our operations.
Net cash flows related to certain airport
construction projects and other. Cash flows related to certain
airport construction projects are included in our GAAP operating
activities and capital expenditures. We have adjusted for these
items, which were primarily funded by cash restricted for airport
construction, to provide investors a better understanding of the
company's free cash flow and capital expenditures that are core to
our operations in the periods shown.
Financed aircraft acquisitions. This
adjustment reflects aircraft deliveries that are leased as capital
expenditures. The adjustment is based on their original contractual
purchase price or an estimate of the aircraft's fair value and
provides a more meaningful view of our investing activities.
Pilot agreement payment. In March 2023, Delta pilots ratified a new four-year
Pilot Working Agreement effective January 1,
2023. The agreement includes a provision for a one-time
payment upon ratification in the March
2023 quarter of $735 million.
We adjust for this item to provide investors a better understanding
of our recurring free cash flow generated by our operations.
|
Three Months
Ended
|
(in
millions)
|
March 31,
2024
|
March 31,
2023
|
Net cash provided by
operating activities
|
$
2,408
|
$
2,235
|
Net cash used in
investing activities
|
(637)
|
(1,100)
|
Adjusted
for:
|
|
|
Net
purchases/(redemptions) of short-term investments
|
(546)
|
102
|
Net cash flows related
to certain airport construction projects and other
|
154
|
19
|
Financed aircraft
acquisitions
|
—
|
(137)
|
Pilot agreement
payment
|
—
|
735
|
Free cash
flow
|
$
1,378
|
$
1,853
|
Adjusted Debt to Earnings Before Interest, Taxes,
Depreciation, Amortization and Rent ("EBITDAR"). We present
adjusted debt to EBITDAR because management believes this metric is
helpful to investors in assessing the company's overall debt
profile. Adjusted debt includes operating lease liabilities and
sale leaseback liabilities. We calculate EBITDAR by adding
depreciation and amortization to GAAP operating income and
adjusting for the fixed portion of operating lease expense.
(in
billions)
|
March 31,
2024
|
|
December 31,
2023
|
Debt and finance lease
obligations
|
$
19.4
|
|
$
20.1
|
Plus: Operating lease
liability
|
6.9
|
|
7.2
|
Plus: Sale leaseback
liability
|
1.9
|
|
1.9
|
Adjusted
Debt
|
$
28.3
|
|
$
29.3
|
|
Twelve Months
Ended
|
(in
billions)
|
March 31,
2024
|
|
December 31,
2023
|
GAAP operating
income
|
$
6.4
|
|
$
5.5
|
Adjusted
for:
|
|
|
|
One-time pilot
agreement expenses
|
—
|
|
0.9
|
Operating income,
adjusted
|
6.4
|
|
6.3
|
Adjusted
for:
|
|
|
|
Depreciation and
amortization
|
2.4
|
|
2.3
|
Fixed portion of
operating lease expense
|
1.0
|
|
1.0
|
EBITDAR
|
$
9.8
|
|
$
9.6
|
|
|
|
|
Adjusted Debt to
EBITDAR
|
2.9x
|
|
3.0x
|
After-tax Return on Invested Capital ("ROIC"). We
present after-tax return on invested capital as management believes
this metric is helpful to investors in assessing the company's
ability to generate returns using its invested capital as a measure
against the industry. Return on invested capital is tax-effected
adjusted total pre-tax income divided by average adjusted invested
capital. Average adjusted invested capital represents the sum of
the adjusted book value of equity at the end of the last five
quarters, adjusted for pension impacts within other comprehensive
income. Average adjusted gross debt is calculated using amounts as
of the end of the last five quarters. All adjustments to calculate
ROIC are intended to provide a more meaningful comparison of our
results to the airline industry.
Amortization of retirement actuarial
loss. This adjustment relates to actuarial gains/losses on our
benefit plans. Adjusting for these results allows investors
to better understand our core operational performance in the
periods shown as it removes prior period differences in assumptions
and actual experience within our benefit plans.
Interest expense, net and interest expense
included in aircraft rent. This adjustment relates to interest
expense related to debt and financing transactions. Adjusting
for these results allows investors to better understand our core
operational performance in the periods shown as it neutralizes the
effect of our capital structure.
|
Twelve Months
Ended
|
|
1Q24 vs
1Q23
Change
|
(in
millions)
|
March 31,
2024
|
March 31,
2023
|
|
Pre-tax
income
|
$
6,235
|
$
2,609
|
|
|
Adjusted
for:
|
|
|
|
|
MTM adjustments on
investments
|
(913)
|
514
|
|
|
MTM adjustments and
settlements on hedges
|
16
|
(8)
|
|
|
Loss on extinguishment
of debt
|
46
|
97
|
|
|
One-time pilot
agreement expenses
|
—
|
864
|
|
|
Restructuring
charges
|
—
|
(118)
|
|
|
Amortization of
retirement actuarial loss
|
243
|
290
|
|
|
Interest expense, net
and interest expense included in aircraft rent
|
1,182
|
1,329
|
|
|
Pre-tax adjusted
income
|
$
6,808
|
$
5,578
|
|
|
Tax effect
|
(1,552)
|
(1,333)
|
|
|
Tax-effected adjusted
total pre-tax income
|
$
5,256
|
$
4,245
|
|
|
|
|
|
|
|
Adjusted book value of
equity
|
$
15,393
|
$
12,074
|
|
|
Average adjusted gross
debt
|
22,729
|
26,545
|
|
|
Averaged adjusted
invested capital
|
$
38,122
|
$
38,619
|
|
|
|
|
|
|
|
After-tax Return on
Invested Capital
|
13.8 %
|
11.0 %
|
|
2.8
|
Operating revenue, adjusted related to premium products and
diverse revenue streams
|
Three Months
Ended
|
(in
millions)
|
March 31,
2024
|
Operating
revenue
|
$
13,748
|
Adjusted
for:
|
|
Third-party refinery
sales
|
(1,185)
|
Operating revenue,
adjusted
|
$
12,563
|
Less: main cabin
revenue
|
(5,425)
|
Operating revenue,
adjusted related to premium products and diverse revenue
streams
|
$
7,138
|
Percent of operating
revenue, adjusted related to premium products and diverse revenue
streams
|
57 %
|
Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per
Available Seat Mile, ("CASM-Ex")
We adjust operating expense and CASM for certain items described
above, as well as the following items and reasons described
below:
Aircraft fuel and related taxes. The
volatility in fuel prices impacts the comparability of
year-over-year financial performance. The adjustment for aircraft
fuel and related taxes allows investors to better understand and
analyze our non-fuel costs and year-over-year financial
performance.
Profit sharing. We adjust for profit
sharing because this adjustment allows investors to better
understand and analyze our recurring cost performance and provides
a more meaningful comparison of our core operating costs to the
airline industry.
|
Three Months
Ended
|
(in
millions)
|
March 31,
2024
|
March 31,
2023
|
Operating
expense
|
$
13,134
|
$
13,036
|
Adjusted
for:
|
|
|
Aircraft fuel and
related taxes
|
(2,598)
|
(2,676)
|
Third-party refinery
sales
|
(1,185)
|
(916)
|
Profit
sharing
|
(125)
|
(72)
|
One-time pilot
agreement charges
|
—
|
(864)
|
Non-Fuel
Cost
|
$
9,227
|
$
8,506
|
|
Three Months
Ended
|
|
1Q24 vs 1Q23
% Change
|
|
March 31,
2024
|
June 30,
2023
|
March 31,
2023
|
|
CASM (cents)
|
20.04
|
18.97
|
21.25
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and
related taxes
|
(3.96)
|
(3.65)
|
(4.36)
|
|
|
Third-party refinery
sales
|
(1.81)
|
(1.40)
|
(1.49)
|
|
|
Profit
sharing
|
(0.19)
|
(0.86)
|
(0.12)
|
|
|
One-time pilot
agreement expenses
|
—
|
—
|
(1.41)
|
|
|
CASM-Ex
|
14.08
|
13.06
|
13.86
|
|
1.5 %
|
|
Year
Ended
|
|
December 31,
2023
|
CASM (cents)
|
19.31
|
Adjusted
for:
|
|
Aircraft fuel and
related taxes
|
(4.07)
|
Third-party refinery
sales
|
(1.24)
|
Profit
sharing
|
(0.51)
|
One-time pilot
agreement expenses
|
(0.32)
|
CASM-Ex
|
13.17
|
Operating Expense, adjusted
|
Three Months
Ended
|
(in
millions)
|
March 31,
2024
|
March 31,
2023
|
Operating
expense
|
$
13,134
|
$
13,036
|
Adjusted
for:
|
|
|
Third-party refinery
sales
|
(1,185)
|
(916)
|
MTM adjustments and
settlements on hedges
|
(27)
|
41
|
One-time pilot
agreement expenses
|
—
|
(864)
|
Operating expense,
adjusted
|
$
11,923
|
$
11,296
|
Total fuel expense, adjusted and Average fuel price per
gallon, adjusted
|
|
|
|
|
|
Average Price Per
Gallon
|
|
|
|
Three Months
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
March
31,
|
|
%
Change
|
|
March
31,
|
March
31,
|
|
%
Change
|
(in millions, except
per gallon data)
|
2024
|
2023
|
|
|
2024
|
2023
|
|
Total fuel
expense
|
$
2,598
|
$
2,676
|
|
|
|
$
2.79
|
$
3.01
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(27)
|
41
|
|
|
|
(0.03)
|
0.05
|
|
|
Total fuel expense,
adjusted
|
$
2,571
|
$
2,718
|
|
(5) %
|
|
$
2.76
|
$
3.06
|
|
(10) %
|
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)
|
March 31,
2024
|
March 31,
2023
|
Flight equipment,
including advance payments
|
$
883
|
$
630
|
Ground property and
equipment, including technology
|
310
|
370
|
Adjusted
for:
|
|
|
Financed aircraft
acquisitions
|
—
|
137
|
Net cash flows related
to certain airport construction projects
|
(83)
|
(48)
|
Gross capital
expenditures
|
$
1,110
|
$
1,090
|
Adjusted Net Debt. Delta uses adjusted total debt,
including aircraft rent, in addition to adjusted debt and finance
leases, to present estimated financial obligations. Delta reduces
adjusted total debt by cash, cash equivalents, short-term
investments and LGA restricted cash, resulting in adjusted net
debt, to present the amount of assets needed to satisfy the debt.
Management believes this metric is helpful to investors in
assessing the company's overall debt profile.
|
|
|
|
|
1Q24 vs 4Q23
$ Change
|
(in
millions)
|
March 31,
2024
|
December 31,
2023
|
March 31,
2023
|
|
Debt and finance lease
obligations
|
$
19,364
|
$
20,054
|
$
21,958
|
|
|
Plus: sale-leaseback
financing liabilities
|
1,875
|
1,887
|
1,924
|
|
|
Plus: unamortized
discount/(premium) and debt issue cost, net and other
|
69
|
83
|
120
|
|
|
Adjusted debt and
finance lease obligations
|
$
21,308
|
$
22,024
|
$
24,002
|
|
|
Plus: 7x last twelve
months' aircraft rent
|
3,752
|
3,724
|
3,627
|
|
|
Adjusted total
debt
|
$
25,060
|
$
25,748
|
$
27,630
|
|
|
Less: cash, cash
equivalents and short-term investments
|
(4,465)
|
(3,869)
|
(6,612)
|
|
|
Less: LGA restricted
cash
|
(376)
|
(455)
|
(54)
|
|
|
Adjusted net
debt
|
$
20,219
|
$
21,424
|
$
20,964
|
|
$
(1,205)
|
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SOURCE Delta Air Lines