Delta(DAL) - 2024 Q4 - Annual Results

Executive Summary & 2025 Outlook Delta Air Lines achieved record financial results in 2024, demonstrating strong operational performance and setting ambitious financial targets for 2025 and beyond 1.1 December Quarter & Full Year 2024 Highlights Delta Air Lines achieved record Q4 2024 revenue and operating profit with industry-leading performance, reporting record full-year revenue, $5 billion pre-tax profit, $8 billion operating cash flow, and $3.4 billion free cash flow - Q4 2024 performance: Achieved record revenue and operating profit, with industry-leading operational performance, and paid $1.4 billion in profit sharing to employees[1][2] - Full-year 2024 performance: Achieved record revenue, $5 billion in pre-tax profit, $8 billion in operating cash flow, and $3.4 billion in free cash flow[1] 1.2 2025 Financial Guidance & Long-term Targets Delta Air Lines anticipates continued strong travel demand in 2025, particularly for premium products, projecting its best financial year in its century-long history with significant EPS and free cash flow growth, alongside long-term targets for sustained growth and reduced leverage 2025 Forecast | Metric | Guidance | | :-------------------- | :-------------------- | | EPS | Greater than $7.35 (over 10% YoY growth, excluding 45 cents September quarter outage impact) | | Pre-Tax Profit | Greater than $6 billion | | Free Cash Flow (billions USD) | Greater than $4 | | Total Leverage | 2x or lower | Q1 2025 Forecast | Metric | Guidance | | :-------------------- | :-------------------- | | Total Revenue YoY Growth | 7% - 9% | | Operating Margin | 6% - 8% | | EPS | $0.70 - $1.00 | 3-5 Year Targets | Metric | Target | | :-------------------- | :-------------------- | | EPS YoY Growth | Average 10% | | Free Cash Flow (billions USD) | 3 - 5 | | Total Leverage | 1x | December Quarter 2024 Financial Results Delta Air Lines reported its financial performance for the December quarter 2024, detailing GAAP and non-GAAP results, revenue drivers, and cost management 2.1 GAAP Financial Results In Q4 2024, Delta Air Lines reported GAAP operating revenue of $15.6 billion, operating profit of $1.7 billion, pre-tax profit of $1.2 billion, and diluted EPS of $1.29 Q4 2024 GAAP Financial Data | Metric | Amount (billions USD) | Operating Margin (%) | Pre-Tax Margin (%) | | :-------------------- | :------------ | :------------------- | :----------------- | | Operating Revenue | 15.6 | - | - | | Operating Profit | 1.7 | 11.0 | - | | Pre-Tax Profit | 1.2 | - | 7.7 | | EPS | $1.29 | - | - | | Operating Cash Flow | 1.9 | - | - | | Debt and Finance Lease Obligations Repaid | 1.5 | - | - | | Total Debt and Finance Lease Obligations at Quarter-End | 16.2 | - | - | 2.2 Non-GAAP Financial Results Adjusted Q4 2024 results for Delta Air Lines show operating revenue of $14.4 billion, an adjusted operating margin of 12.0%, adjusted pre-tax profit of $1.6 billion, and diluted EPS of $1.85 Q4 2024 Non-GAAP Financial Data | Metric | Amount (billions USD) | Operating Margin (%) | Pre-Tax Margin (%) | | :-------------------- | :------------ | :------------------- | :----------------- | | Operating Revenue | 14.4 | - | - | | Operating Profit | 1.7 | 12.0 | - | | Pre-Tax Profit | 1.6 | - | 10.8 | | EPS | $1.85 | - | - | | Operating Cash Flow | 1.8 | - | - | 2.3 Revenue Performance Delta Air Lines' Q4 revenue grew 5.7%, exceeding guidance, driven by accelerating demand, strong operational performance, and diversified revenue streams, with premium products, loyalty programs, and international passenger revenue as key contributors - Q4 2024 Revenue Growth: Total revenue increased 5.7% YoY, exceeding the 2% to 4% guidance; adjusted total unit revenue (TRASM) improved 0.4% YoY[11][15] - Diversified Revenue Streams: Premium products and loyalty programs contributed 57% of total 2024 revenue; Q4 premium revenue growth outpaced Main Cabin by 6 percentage points; American Express remuneration was nearly $2 billion, up 14% YoY; cargo revenue increased 32% YoY[15] - International & Corporate Travel: International passenger revenue grew 6% YoY, with Transatlantic unit revenue performing best at 6% growth; managed corporate sales increased 10% YoY, led by technology and financial services sectors[15] 2.4 Cost Performance Delta Air Lines achieved its most profitable fourth quarter in history with $1.6 billion in pre-tax profit, attributed to industry-leading operational performance and a continuous focus on efficiency, with non-fuel unit cost growth remaining in the low single digits, in line with expectations Q4 2024 Cost Metrics | Metric | Amount (billions USD) | YoY Change (%) | | :------------------------------------ | :------------ | :------------- | | Operating Expense | 13.8 | - | | Adjusted Operating Expense | 12.7 | - | | Adjusted Non-Fuel Cost | 9.9 | - | | Non-Fuel CASM | 13.72 cents | +3.3 | | Adjusted Fuel Expense | 2.4 | -18 | | Adjusted Fuel Price per Gallon | $2.34 | -22 | | Fuel Efficiency (gallons per thousand available seat miles) | 14.2 | +0.9 | Full Year 2024 Financial Results Delta Air Lines' full-year 2024 financial performance highlights record revenue, strong profitability, and significant cash flow generation, both on a GAAP and adjusted basis 3.1 GAAP Financial Results For the full year 2024, Delta Air Lines reported GAAP operating revenue of $61.6 billion, operating profit of $6.0 billion, pre-tax profit of $4.7 billion, and diluted EPS of $5.33 Full Year 2024 GAAP Financial Data | Metric | Amount (billions USD) | Operating Margin (%) | Pre-Tax Margin (%) | | :-------------------- | :------------ | :------------------- | :----------------- | | Operating Revenue | 61.6 | - | - | | Operating Profit | 6.0 | 9.7 | - | | Pre-Tax Profit | 4.7 | - | 7.6 | | EPS | $5.33 | - | - | | Operating Cash Flow | 8.0 | - | - | | Debt and Finance Lease Obligations Repaid | 4.0 | - | - | 3.2 Adjusted Financial Results Adjusted full-year 2024 results show Delta Air Lines' operating revenue at $57.0 billion, up 4.3% from 2023, with an operating margin of 10.6%, adjusted pre-tax profit of $5.2 billion, diluted EPS of $6.16, and $3.4 billion in free cash flow Full Year 2024 Adjusted Financial Data | Metric | Amount (billions USD) | YoY Change (%) | Operating Margin (%) | Pre-Tax Margin (%) | | :-------------------- | :------------ | :------------- | :------------------- | :----------------- | | Operating Revenue | 57.0 | +4.3 | - | - | | Operating Profit | 6.0 | - | 10.6 | - | | Pre-Tax Profit | 5.2 | - | - | 9.1 | | EPS | $6.16 | - | - | - | | Operating Cash Flow | 8.0 | - | - | - | | Free Cash Flow | 3.4 | - | - | - | | Adjusted Debt to EBITDAR Ratio | 2.6x | (down from 3.0x) | - | - | | Return on Invested Capital | 12.9% | - | - | - | 3.3 Cost Performance For the full year 2024, Delta Air Lines maintained low single-digit non-fuel unit cost growth, in line with its initial outlook, while adjusted fuel expense decreased 5% YoY and fuel efficiency improved by 1.1% Full Year 2024 Cost Metrics | Metric | Amount (billions USD) | YoY Change (%) | | :------------------------------------ | :------------ | :------------- | | Operating Expense | 55.6 | - | | Adjusted Operating Expense | 51.0 | - | | Adjusted Non-Fuel Cost | 39.1 | - | | Non-Fuel CASM | - | +2.8 | | Adjusted Fuel Expense | 10.5 | -5 | | Adjusted Fuel Price per Gallon | $2.56 | -10 | | Fuel Efficiency (gallons per thousand available seat miles) | 14.3 | +1.1 | Balance Sheet, Cash Flow & Liquidity Delta Air Lines demonstrated strong cash flow generation and liquidity in 2024, significantly improving its leverage position and achieving investment-grade credit ratings 4.1 December Quarter 2024 Cash Flow & Liquidity In Q4 2024, Delta Air Lines generated $1.8 billion in adjusted operating cash flow and $678 million in free cash flow, while repaying $1.5 billion in debt and finance lease obligations Q4 2024 Cash Flow | Metric | Amount (billions USD) | | :------------------------------------ | :------------ | | Adjusted Operating Cash Flow | 1.8 | | Gross Capital Expenditures | 1.2 | | Free Cash Flow | 0.678 | | Debt and Finance Lease Obligations Repaid | 1.5 | 4.2 Full Year 2024 Cash Flow & Liquidity For the full year 2024, Delta Air Lines generated $3.4 billion in free cash flow, reinvested nearly $5 billion into the business, significantly improved its leverage ratio to 2.6x, and regained investment-grade ratings from all three credit rating agencies Full Year 2024 Cash Flow & Leverage | Metric | Amount (billions USD) | | :------------------------------------ | :------------ | | Adjusted Operating Cash Flow | 8.0 | | Gross Capital Expenditures | 4.8 | | Free Cash Flow | 3.4 | | Adjusted Net Debt (Q4-end) | 18.0 | | Adjusted Debt to EBITDAR Ratio | 2.6x (down from 3.0x at YE 2023) | - Liquidity: Year-end liquidity stood at $6.1 billion, including $3.1 billion in undrawn revolving credit facilities; air traffic liability at year-end was $7.1 billion[19] - Strategic Goals: Regained investment-grade ratings from all three credit rating agencies; anticipates free cash flow to grow to over $4 billion in 2025, supporting meaningful debt reduction and further improving the leverage ratio to 2x or lower[17] 4.3 Balance Sheet Overview As of December 31, 2024, Delta Air Lines reported total assets of $75.3 billion, total liabilities of $59.9 billion, and total shareholders' equity of $15.3 billion, with adjusted net debt decreasing by $3.6 billion from year-end 2023 Consolidated Balance Sheet (December 31, 2024) | Metric | Amount (million USD) | | :------------------------------------ | :------------ | | Total Assets | 75,272 | | Total Liabilities | 59,905 | | Total Shareholders' Equity | 15,267 | | Cash and Cash Equivalents | 3,069 | | Total Debt and Finance Lease Obligations | 16,194 | | Adjusted Net Debt | 17,980 (decreased by $3.643 billion from YE 2023) | Operational & Strategic Highlights Delta Air Lines achieved industry-leading operational excellence in 2024, expanded its fleet and network, invested in its people and culture, enhanced customer experience, and advanced its ESG commitments 5.1 Operations, Network & Fleet Delta Air Lines achieved industry-leading operational excellence in 2024, earning the Cirium Platinum Award for the fourth consecutive year and being named North America's most on-time airline, while expanding its fleet with 38 new aircraft and significantly growing its international and Latin America route network - Operational Excellence: Awarded the Cirium Platinum Award for the fourth consecutive year and named North America's most on-time airline; Q4 performance led competitors in key metrics including completion factor, on-time departures, and arrivals[23] - Fleet Expansion: Delivered 11 aircraft in Q4, totaling 38 aircraft for the full year, including A321neo, A220-300, A330-900, and A350-900 models[23] - Network Growth: Launched new long-haul service to Brisbane and expanded direct flights from Tampa to Amsterdam, Orlando to London, and New York to Lagos; announced the first direct service from Minneapolis-St. Paul to Copenhagen; added 13 new Latin America routes[23] 5.2 Culture & People Delta Air Lines recognized employees' outstanding performance with $1.4 billion in profit sharing and $86 million in shared rewards, while continuing to invest in employee development with a new pilot training facility and fostering a strong community culture through various initiatives - Employee Recognition: Paid $1.4 billion in profit sharing and $86 million in shared rewards to 100,000 employees; ranked highest for the seventh consecutive year in Extel's (formerly Institutional Investor) 2024-2025 All-America Executive Team rankings[23] - Employee Development: Opened a new pilot training facility in Salt Lake City, capable of hosting over 1,000 training events monthly[23] - Community Engagement: Hosted the 18th annual Breast Cancer One charter flight; donated $1 million to the American Red Cross for hurricane relief; partnered with Marine Toys for Tots for the 20th annual TechOps bike build, donating 1,700 bikes and over 2,000 toys; volunteers built four new homes with Atlanta Habitat for Humanity; hosted the 13th annual Veterans Day celebration[23] 5.3 Customer Experience & Loyalty Delta Air Lines was named the top airline for business travelers by Business Travel News for the 14th consecutive year and received multiple awards for customer service, lounges, and its app, enhancing customer experience through new Delta One and Sky Club lounges, cabin designs, and expanded innovative partnerships and touchless airport technology - Industry Recognition: Named top airline for business travelers by Business Travel News for the 14th consecutive year; won five awards, including Best U.S. Airline and Best Domestic Business Class, in Forbes Travel Guide's inaugural Airline Awards; named Airline of the Year by Global Traveler[23] - Service Enhancements: Opened its third Delta One Lounge in Boston and its first Delta Sky Club at Charlotte Douglas International Airport (CLT); introduced new cabin designs to enhance travel experience; partnered with Shake Shack to offer burgers on select Boston flights; expanded Delta Digital ID to SLC and DCA, providing touchless TSA PreCheck® ID lanes[23] 5.4 Environmental, Social & Governance (ESG) Delta Air Lines remains committed to sustainability, announcing a new Sustainable Aviation Fuel (SAF) blending facility, promoting paper cups across its international network to reduce plastic waste, and significantly increasing fuel savings through its Carbon Council - Sustainable Aviation Fuel (SAF): Partnered with the Minnesota SAF Hub to announce a new blending facility in Minnesota and successfully transported SAF via pipeline to MSP and DTW[23] - Waste Reduction: Began promoting paper cups across its international network, with full rollout planned for 2025, potentially reducing nearly 7 million pounds of single-use plastic annually[23] - Fuel Efficiency: Delta's Carbon Council nearly doubled fuel savings from 2023, saving 41 million gallons of jet fuel in 2024[23] - Renewable Energy: Began installing rooftop solar panels at its Atlanta headquarters[23] Detailed Financial Statements (GAAP) This section provides Delta Air Lines' comprehensive GAAP financial statements, including consolidated statements of operations, passenger and other revenue breakdowns, statistical summaries, cash flows, and balance sheets 6.1 Consolidated Statements of Operations The consolidated statements of operations present Delta Air Lines' GAAP financial performance for Q4 and full-year 2024, detailing revenue, operating expenses, and net profit Consolidated Statements of Operations (GAAP) | Metric (million USD) | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :------------------------------------ | :----- | :----- | :----- | :----- | | Total Operating Revenue | $15,559 | $14,223 | $61,643 | $58,048 | | Total Operating Expense | $13,842 | $12,900 | $55,648 | $52,527 | | Operating Profit | $1,717 | $1,323 | $5,995 | $5,521 | | Pre-Tax Profit | $1,201 | $2,275 | $4,658 | $5,608 | | Net Profit | $843 | $2,037 | $3,457 | $4,609 | | Diluted EPS | $1.29 | $3.16 | $5.33 | $7.17 | 6.2 Passenger Revenue Breakdown Q4 2024 passenger revenue increased 5% YoY to $12.8 billion, driven by strong growth in premium products and loyalty travel awards, with full-year passenger revenue growing 4% to $50.9 billion Passenger Revenue (GAAP) | Metric (million USD) | Q4 2024 | Q4 2023 | Q4 Change (%) | Full Year 2024 | Full Year 2023 | Full Year Change (%) | | :-------------------- | :----- | :----- | :---------- | :----- | :----- | :---------- | | Tickets - Main Cabin | $6,047 | $5,939 | 2% | $24,497 | $24,477 | 0% | | Tickets - Premium Products | $5,222 | $4,856 | 8% | $20,599 | $19,119 | 8% | | Loyalty Travel Awards | $1,043 | $915 | 14% | $3,841 | $3,462 | 11% | | Travel-Related Services | $503 | $464 | 8% | $1,957 | $1,851 | 6% | | Passenger Revenue | $12,815 | $12,174 | 5% | $50,894 | $48,909 | 4% | 6.3 Other Revenue Breakdown Q4 2024 other revenue significantly increased 34% to $2.5 billion, primarily driven by refinery sales, with full-year other revenue growing 18% to $9.9 billion Other Revenue (GAAP) | Metric (million USD) | Q4 2024 | Q4 2023 | Q4 Change (%) | Full Year 2024 | Full Year 2023 | Full Year Change (%) | | :-------------------- | :----- | :----- | :---------- | :----- | :----- | :---------- | | Refinery | $1,122 | $563 | 99% | $4,642 | $3,379 | 37% | | Loyalty Programs | $846 | $802 | 5% | $3,297 | $3,093 | 7% | | Ancillary Businesses | $218 | $183 | 19% | $772 | $840 | (8)% | | Miscellaneous | $310 | $313 | (1)% | $1,216 | $1,104 | 10% | | Other Revenue | $2,495 | $1,861 | 34% | $9,927 | $8,416 | 18% | 6.4 Total Revenue Breakdown Total operating revenue for Q4 2024 increased 9% to $15.6 billion, with adjusted total revenue growing 5.7% to $14.4 billion and adjusted TRASM improving 0.4% YoY Total Revenue (GAAP & Adjusted) | Revenue (million USD) | Q4 2024 | Q4 2024 vs Q4 2023 Change (%) | Unit Revenue | Yield | Capacity | | :-------------------- | :----- | :-------------------------------- | :----------- | :---- | :------- | | Domestic | $9,193 | 5% | (1)% | 1% | 6% | | Atlantic | $1,974 | 4% | 6% | 3% | (2)% | | Latin America | $987 | 4% | (1)% | (1)% | 5% | | Pacific | $661 | 19% | (4)% | (4)% | 24% | | Passenger Revenue | $12,815 | 5% | 0% | 1% | 5% | | Cargo Revenue | $249 | 32% | - | - | - | | Other Revenue | $2,495 | 34% | - | - | - | | Total Revenue | $15,559 | 9% | 4% | - | - | | Third-Party Refinery Sales | ($1,122) | - | - | - | - | | Adjusted Total Revenue | $14,437 | 5.7% | 0.4% | - | - | 6.5 Statistical Summary Delta Air Lines' 2024 statistical summary shows a 6% YoY increase in both Available Seat Miles (ASMs) and Revenue Passenger Miles (RPMs), with load factor stable at 85% and average fuel price per gallon decreasing by 9% Statistical Summary | Metric | Q4 2024 | Q4 2023 | Q4 Change | Full Year 2024 | Full Year 2023 | Full Year Change | | :------------------------------------ | :----- | :----- | :-------- | :----- | :----- | :-------- | | Revenue Passenger Miles (millions) | 60,387 | 57,655 | 5% | 246,145 | 232,241 | 6% | | Available Seat Miles (millions) | 72,035 | 68,462 | 5% | 288,394 | 272,033 | 6% | | Load Factor | 84% | 84% | 0 points | 85% | 85% | 0 points | | Total Revenue per Available Seat Mile (cents) | 21.60 | 20.78 | 4% | 21.37 | 21.34 | 0% | | Adjusted TRASM (cents) | 20.04 | 19.95 | 0.4% | 19.76 | 20.10 | (1.6)% | | CASM-Ex (cents) | 13.72 | 13.29 | 3.3% | 13.54 | 13.17 | 2.8% | | Average Fuel Price per Gallon | $2.36 | $3.01 | (21)% | $2.57 | $2.82 | (9)% | 6.6 Consolidated Statements of Cash Flows Delta Air Lines' consolidated statements of cash flows show net cash provided by operating activities of $1.9 billion in Q4 2024 and $8.0 billion for the full year, with $1.2 billion used in investing activities and $1.6 billion used in financing activities during Q4 Consolidated Statements of Cash Flows (GAAP) | Metric (million USD) | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :------------------------------------ | :----- | :----- | :----- | :----- | | Net Cash Provided by Operating Activities | $1,894 | $545 | $8,025 | $6,464 | | Net Cash Used in Investing Activities | ($1,169) | ($535) | ($3,739) | ($5,305) | | Net Cash (Used in)/Provided by Financing Activities | ($1,590) | $416 | ($1,082) | ($1,082) | | Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash Equivalents | ($865) | $426 | ($1,082) | $800 | | Cash, Cash Equivalents and Restricted Cash Equivalents at End of Period | $3,421 | $3,395 | $3,421 | $3,395 | 6.7 Consolidated Balance Sheets As of December 31, 2024, Delta Air Lines' consolidated balance sheet shows total assets of $75.3 billion, an increase from $73.6 billion at year-end 2023, with total liabilities decreasing to $59.9 billion and shareholders' equity increasing to $15.3 billion Consolidated Balance Sheets (GAAP) | Metric (million USD) | December 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------- | :------------- | | Total Current Assets | $9,856 | $10,269 | | Property and Equipment, Net | $37,595 | $35,486 | | Total Other Assets | $27,821 | $27,889 | | Total Assets | $75,272 | $73,644 | | Total Current Liabilities | $26,631 | $26,418 | | Total Noncurrent Liabilities | $33,374 | $36,121 | | Total Liabilities and Shareholders' Equity | $75,272 | $73,644 | | Debt and Finance Leases (Noncurrent) | $14,019 | $17,071 | | Total Debt and Finance Lease Obligations | $16,194 | $20,054 | Non-GAAP Financial Measures Reconciliations This section provides reconciliations for Delta Air Lines' non-GAAP financial measures, offering a clearer view of core operational performance by adjusting for specific non-recurring or non-operating items 7.1 Overview of Non-GAAP Adjustments Delta Air Lines uses non-GAAP financial measures to provide more meaningful comparisons of its core operating performance by excluding items such as third-party refinery sales, mark-to-market adjustments, debt extinguishment losses, realized gains on investment sales, and one-time pilot agreement costs - Purpose of Non-GAAP Metrics: To provide comparability between reporting periods; to offer a more accurate understanding of airline business operations; to help investors analyze core operating performance[50][51][52] - Key Adjustments: Third-party refinery sales and related expenses; mark-to-market (MTM) adjustments for investments and hedges; losses on debt extinguishment; realized gains on investment sales (e.g., CLEAR); one-time pilot agreement costs[51][52][53][54][55][56] 7.2 Operating Revenue & TRASM, Adjusted Adjusted operating revenue excludes third-party refinery sales to provide a clearer reflection of airline operations, with Q4 2024 adjusted operating revenue at $14.4 billion, up 5.7% YoY, and adjusted TRASM at 20.04 cents, up 0.4% YoY Adjusted Operating Revenue | Metric (million USD) | Q4 2024 | Q4 2023 | Q4 Change (%) | Full Year 2024 | Full Year 2023 | Full Year Change (%) | | :-------------------- | :----- | :----- | :---------- | :----- | :----- | :---------- | | Operating Revenue | $15,559 | $14,223 | - | $61,643 | $58,048 | - | | Adjustment: Third-Party Refinery Sales | ($1,122) | ($563) | - | ($4,642) | ($3,379) | - | | Adjusted Operating Revenue | $14,437 | $13,661 | 5.7% | $57,001 | $54,669 | 4.3% | Adjusted TRASM (cents) | Metric | Q4 2024 | Q4 2023 | Q4 Change (%) | Full Year 2024 | Full Year 2023 | Full Year Change (%) | | :-------------------- | :----- | :----- | :---------- | :----- | :----- | :---------- | | TRASM | 21.60 | 20.78 | - | 21.37 | 21.34 | - | | Adjustment: Third-Party Refinery Sales | (1.56) | (0.82) | - | (1.61) | (1.24) | - | | Adjusted TRASM | 20.04 | 19.95 | 0.4% | 19.76 | 20.10 | (1.6)% | 7.3 Pre-Tax Income, Net Income & EPS, Adjusted Q4 2024 adjusted pre-tax profit was $1.6 billion and adjusted diluted EPS was $1.85, reflecting adjustments for mark-to-market, debt extinguishment, and investment sales, while full-year 2024 adjusted pre-tax profit was $5.2 billion and adjusted diluted EPS was $6.16 Adjusted Pre-Tax Income, Net Income and Diluted EPS (Q4 2024) | Metric (million USD, except per share data) | GAAP | Adjustments | Non-GAAP | | :------------------------------------ | :----- | :---------- | :------- | | Pre-Tax Profit | $1,201 | $247 (MTM Investments) + $17 (MTM Hedges) + $3 (Debt Extinguishment) + $98 (Realized Gains) | $1,566 | | Net Profit | $843 | - | $1,203 | | Diluted EPS | $1.29 | - | $1.85 | Adjusted Pre-Tax Income, Net Income and Diluted EPS (Full Year 2024) | Metric (million USD, except per share data) | GAAP | Adjustments | Non-GAAP | | :------------------------------------ | :----- | :---------- | :------- | | Pre-Tax Profit | $4,658 | $319 (MTM Investments) + $21 (MTM Hedges) + $39 (Debt Extinguishment) + $164 (Realized Gains) | $5,201 | | Net Profit | $3,457 | - | $3,990 | | Diluted EPS | $5.33 | - | $6.16 | 7.4 Operating Cash Flow, Adjusted Adjusted operating cash flow excludes cash flows related to certain airport construction projects and one-time pilot agreement payments to provide a clearer view of core operational cash generation, totaling $7.99 billion for the full year 2024 Adjusted Operating Cash Flow (Full Year 2024) | Metric (million USD) | GAAP | Adjustments | Adjusted | | :------------------------------------ | :----- | :---------- | :------- | | Net Cash Provided by Operating Activities | $8,025 | ($31) (Airport Projects) + $0 (Pilot Payments) | $7,994 | 7.5 Free Cash Flow Free cash flow, used to assess the company's ability to generate cash for debt repayment or general corporate purposes, is adjusted for net redemptions of short-term investments and airport construction project cash flows, totaling $3.42 billion for the full year 2024 Free Cash Flow (Full Year 2024) | Metric (million USD) | Amount | | :------------------------------------ | :----- | | Net Cash Provided by Operating Activities | $8,025 | | Net Cash Used in Investing Activities | ($3,739) | | Adjustment: Net Redemptions of Short-Term Investments | ($1,137) | | Adjustment: Net Cash Flows Related to Certain Airport Construction Projects and Other | $276 | | Free Cash Flow | $3,424 | 7.6 Operating Income & Margin, Adjusted Adjusted operating income and margin exclude mark-to-market adjustments and hedge settlements, as well as one-time pilot agreement costs, to reflect core operating profitability, with full-year 2024 adjusted operating income at $6.02 billion and an adjusted operating margin of 10.6% Adjusted Operating Income (Full Year 2024) | Metric (million USD) | GAAP | Adjustments | Adjusted | | :------------------------------------ | :----- | :---------- | :------- | | Operating Profit | $5,995 | $21 (MTM Hedges) + $0 (Pilot Costs) | $6,016 | Adjusted Operating Margin (Full Year 2024) | Metric | GAAP | Adjustments | Adjusted | | :------------------------------------ | :----- | :---------- | :------- | | Operating Margin | 9.7% | 0.8% (Refinery) + 0% (MTM Hedges) + 0% (Pilot Costs) | 10.6% | 7.7 Pre-Tax Margin, Adjusted The full-year 2024 adjusted pre-tax margin was 9.1%, reflecting adjustments for refinery sales, mark-to-market on investments and hedges, debt extinguishment, realized gains on investment sales, and one-time pilot agreement costs Adjusted Pre-Tax Margin (Full Year 2024) | Metric | GAAP | Adjustments | Adjusted | | :------------------------------------ | :----- | :---------- | :------- | | Pre-Tax Margin | 7.6% | 0.7% (Refinery) + 0.5% (MTM Investments) + 0% (MTM Hedges) + 0.1% (Debt Extinguishment) + 0.3% (Realized Gains) + 0% (Pilot Costs) | 9.1% | 7.8 Adjusted Debt to EBITDAR The adjusted debt to EBITDAR ratio, a key metric for assessing the company's overall debt position including operating lease and unfunded pension liabilities, improved to 2.6x in 2024 from 3.0x in 2023 Adjusted Debt to EBITDAR Ratio | Metric (million USD) | December 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------- | :------------- | | Adjusted Debt | $24,619 | $29,396 | | EBITDAR (Full Year) | $9,503 | $9,648 | | Adjusted Debt to EBITDAR Ratio | 2.6x | 3.0x | 7.9 After-tax Return on Invested Capital (ROIC) The after-tax return on invested capital (ROIC), measuring the company's ability to generate returns from its invested capital, was 12.9% for the full year 2024, calculated using after-tax adjusted operating profit and average adjusted invested capital After-tax Return on Invested Capital (Full Year 2024) | Metric (million USD) | Amount | | :------------------------------------ | :----- | | After-Tax Adjusted Operating Profit | $4,739 | | Average Adjusted Invested Capital | $36,776 | | After-Tax Return on Invested Capital | 12.9% | 7.10 Operating Revenue, Adjusted (Premium & Diverse Streams) For the full year 2024, adjusted operating revenue, after excluding third-party refinery sales, shows that premium products and diverse revenue streams contributed 57% of the total adjusted operating revenue Adjusted Operating Revenue (Premium & Diverse Streams) (Full Year 2024) | Metric (million USD) | Amount | | :------------------------------------ | :----- | | Adjusted Operating Revenue | $57,001 | | Less: Main Cabin Revenue | ($24,497) | | Adjusted Operating Revenue Related to Premium Products and Diverse Revenue Streams | $32,504 | | Percentage of Adjusted Operating Revenue Related to Premium Products and Diverse Revenue Streams | 57% | 7.11 Operating Expense, Adjusted Full-year 2024 adjusted operating expense was $51.0 billion, excluding third-party refinery sales, mark-to-market adjustments on hedges, and one-time pilot agreement costs, providing a clearer view of core airline operating costs Adjusted Operating Expense (Full Year 2024) | Metric (million USD) | GAAP | Adjustments | Adjusted | | :------------------------------------ | :----- | :---------- | :------- | | Operating Expense | $55,648 | ($4,642) (Refinery) + ($21) (MTM Hedges) + ($0) (Pilot Costs) | $50,985 | 7.12 Adjusted Non-Fuel Cost & CASM-Ex Adjusted non-fuel cost and CASM-Ex (Cost per Available Seat Mile, excluding fuel) are used to analyze recurring cost performance, excluding volatile fuel costs, profit sharing, and other non-core items, with CASM-Ex growing 2.8% for the full year 2024 Non-Fuel Cost (Full Year 2024) | Metric (million USD) | Amount | | :------------------------------------ | :----- | | Operating Expense | $55,648 | | Adjustment: Aircraft Fuel and Related Taxes | ($10,566) | | Adjustment: Third-Party Refinery Sales | ($4,642) | | Adjustment: Profit Sharing | ($1,389) | | Non-Fuel Cost | $39,051 | CASM-Ex (cents) (Full Year 2024) | Metric | GAAP | Adjustments | CASM-Ex | Full Year Change (%) | | :------------------------------------ | :----- | :---------- | :-------- | :---------- | | CASM | 19.30 | ($3.66) (Fuel) + ($1.61) (Refinery) + ($0.48) (Profit Sharing) + ($0) (Pilot Costs) | 13.54 | 2.8% | 7.13 Total Fuel Expense & Average Fuel Price, Adjusted Adjusted fuel expense and average fuel price per gallon exclude mark-to-market adjustments and hedge settlements to provide a more accurate view of actual fuel costs, with full-year 2024 adjusted total fuel expense at $10.54 billion and adjusted average fuel price at $2.56 per gallon, down 10% YoY Adjusted Total Fuel Expense (Full Year 2024) | Metric (million USD) | GAAP | Adjustments | Adjusted | Full Year Change (%) | | :------------------------------------ | :----- | :---------- | :------- | :---------- | | Total Fuel Expense | $10,566 | ($21) (MTM Hedges) | $10,544 | (5)% | Adjusted Average Fuel Price per Gallon (Full Year 2024) | Metric | GAAP | Adjustments | Adjusted | Full Year Change (%) | | :------------------------------------ | :----- | :---------- | :------- | :---------- | | Average Fuel Price per Gallon | $2.57 | ($0.01) (MTM Hedges) | $2.56 | (10)% | 7.14 Gross Capital Expenditures Gross capital expenditures are adjusted for net cash flows related to airport construction projects and financed aircraft acquisitions to provide a more meaningful view of investment activities, totaling $4.83 billion for the full year 2024 Gross Capital Expenditures (Full Year 2024) | Metric (million USD) | Amount | | :------------------------------------ | :----- | | Flight Equipment, Including Advance Payments | $3,914 | | Ground Property and Equipment, Including Technology | $1,226 | | Adjustment: Financed Aircraft Acquisitions | $0 | | Adjustment: Net Cash Flows Related to Certain Airport Construction Projects | ($306) | | Gross Capital Expenditures | $4,834 | 7.15 Adjusted Net Debt Adjusted net debt provides a comprehensive view of financial obligations by including fleet operating lease liabilities and unfunded pension liabilities, offset by cash and short-term investments, totaling $18.0 billion as of December 31, 2024, a $3.6 billion reduction from 2023 Adjusted Net Debt (million USD) | Metric | December 31, 2024 | December 31, 2023 | Change (million USD) | | :------------------------------------ | :------------- | :------------- | :------- | | Debt and Finance Lease Obligations | $16,194 | $20,054 | - | | Add: Sale-Leaseback Financing Liabilities | $1,835 | $1,887 | - | | Add: Unamortized Discount/(Premium) and Debt Issuance Costs, Net and Other | $26 | $83 | - | | Adjusted Debt and Finance Lease Obligations | $18,055 | $22,024 | - | | Add: Fleet Operating Lease Liabilities | $3,178 | $3,778 | - | | Add: Unfunded Pension Liabilities | $0 | $145 | - | | Adjusted Total Debt | $21,234 | $25,947 | - | | Less: Cash, Cash Equivalents and Short-Term Investments | ($3,069) | ($3,869) | - | | Less: LGA Restricted Cash | ($184) | ($455) | - | | Adjusted Net Debt | $17,980 | $21,623 | ($3,643) | About Delta Air Lines Delta Air Lines is a leading global airline renowned for service excellence and innovation, serving over 200 million customers in 2024 across more than 290 destinations on six continents, headquartered in Atlanta with major global hubs and strategic partnerships - Company Overview: Employs 100,000 people, operates up to 5,000 flights daily during peak seasons, serving over 290 destinations on six continents; served over 200 million customers in 2024; headquartered in Atlanta with major global hubs; maintains strategic partnerships with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic, and WestJet[26][27][29][31] - Awards & Recognition: Ranked 1 in J.D. Power 2024 for First/Business Class and Premium Economy Passenger Satisfaction; named North America's most on-time airline and received the Cirium Platinum Award for operational excellence in 2024; recognized as a top U.S. airline by The Wall Street Journal; named one of the World's Most Admired Companies and one of the 100 Best Companies to Work For by Fortune magazine; won 5 categories in Forbes Travel Guide's Airline Awards, including Best U.S. Airline[27][32] Forward-Looking Statements This section contains standard disclaimers regarding forward-looking statements, emphasizing that such statements are not guarantees and involve risks and uncertainties that could cause actual results to differ materially from expectations, advising investors not to place undue reliance on them - Nature of Statements: Statements regarding future estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments, or strategies should be considered "forward-looking statements"; these statements are not guarantees or promises of results[33] - Risks and Uncertainties: Include, but are not limited to, aircraft accidents, cybersecurity breaches, IT infrastructure disruptions, increased fuel costs, fuel supply disruptions, failure of commercial relationships, reliance on third parties, default on financing agreements, labor issues, seasonality, adverse weather, natural disasters, climate change impacts, refinery liabilities, environmental regulations, reputational harm, loss of key personnel, disease outbreaks, terrorist attacks, geopolitical conflicts, industry competition, major airport service disruptions, and unfavorable economic or political conditions[33] - Disclaimer: Forward-looking statements should not be unduly relied upon and represent views only as of the date of the press release; the company is under no obligation to update these statements unless required by law; further information on risks and uncertainties is contained in the company's SEC filings[33][34]