Delta(US:DAL)2025-02-11 22:02Fuel Costs - Fuel costs represented 19%, 21%, and 24% of operating expenses in 2024, 2023, and 2022, respectively[121]. - The average fuel price per gallon ranged from a high of $4.25 in June 2022 to a low of $2.29 in November 2024[121]. - A one cent increase in jet fuel cost per gallon results in approximately $40 million of additional annual fuel expense[325]. Debt and Interest Rates - As of December 31, 2024, the company had $14.5 billion of fixed-rate debt and $0.9 billion of variable-rate debt[327]. - A 100 basis point increase in average annual interest rates would decrease the estimated fair value of fixed-rate debt by $620 million[327]. - As of December 31, 2024, total debt amounted to $15,347 million, a decrease from $18,610 million in 2023[441]. - The company extinguished $844 million in debt during 2024, resulting in a $39 million loss on extinguishment recorded in non-operating expenses[442]. - The fair value of outstanding debt as of December 31, 2024, was $15,300 million, compared to $18,400 million in 2023[446]. - Scheduled maturities of debt for 2025 total $1,798 million, with future maturities reaching $6,624 million thereafter[449]. Financial Performance - Total operating revenue for 2024 reached $61,643 million, an increase of 6.0% from $58,048 million in 2023[350]. - Net income for 2024 was $3,457 million, a decrease of 25.0% compared to $4,609 million in 2023[350]. - Basic earnings per share for 2024 were $5.39, down from $7.21 in 2023, reflecting a decline of 25.2%[350]. - Operating income for 2024 was $5,995 million, an increase of 8.6% from $5,521 million in 2023[350]. - Comprehensive income for 2024 was $4,323 million, a slight decrease from $4,565 million in 2023[353]. - Cash flows from operating activities increased to $8,025 million in 2024, compared to $6,464 million in 2023, a growth of 24.2%[356]. Assets and Liabilities - Total assets increased to $75,372 million in 2024, up from $73,644 million in 2023, representing a growth of 2.3%[347]. - Total current liabilities rose to $26,670 million in 2024, compared to $26,418 million in 2023, an increase of 1.0%[347]. - Total noncurrent liabilities decreased to $33,409 million in 2024 from $36,121 million in 2023, a reduction of 7.5%[347]. - Total lease liabilities decreased to $7,424 million in 2024 from $8,671 million in 2023[458]. Revenue Streams - Total passenger revenue for 2024 reached $50,894 million, an increase of 4% from $48,909 million in 2023 and a significant rise of 26.5% from $40,218 million in 2022[388]. - Ticket revenue alone amounted to $45,096 million in 2024, up from $43,596 million in 2023, reflecting a growth of 3.4%[388]. - Loyalty travel awards revenue increased to $3,841 million in 2024, compared to $3,462 million in 2023, marking an 11% rise[388]. - Travel-related services generated $1,957 million in revenue for 2024, up from $1,851 million in 2023, indicating a growth of 5.7%[388]. - The balance of loyalty program deferred revenue at the end of 2024 was $8,826 million, an increase from $8,420 million in 2023[405]. - Total other revenue for 2024 was $9,927 million, up from $8,416 million in 2023, reflecting an increase of 18%[407]. Operational Challenges - The company experienced a global outage in July 2024, resulting in approximately 7,000 flight cancellations and impacting 1.4 million customers[119]. Investments and Commitments - Future aircraft purchase commitments totaled approximately $18.3 billion as of December 31, 2024, with commitments spread across 2025 to 2029 and beyond[505]. - The company has 294 aircraft purchase commitments, including 100 Boeing 737-10 and 72 A220-300 aircraft[506]. - The company entered into a purchase agreement for 20 A350-1000 aircraft, with deliveries scheduled to begin in 2026[507]. Pension and Benefits - The defined contribution pension plans costs were approximately $1.3 billion, $1.2 billion, and $1.0 billion for the years ended December 31, 2024, 2023, and 2022, respectively[476]. - The benefit obligation for pension benefits at the end of 2024 was $14,967 million, down from $15,911 million in 2023[480]. - The funded status for pension benefits improved to $938 million at the end of 2024, compared to a deficit of $145 million in 2023[481]. - The weighted average discount rate for benefit obligations increased to 5.71% in 2024 from 5.31% in 2023[483]. Marketing and Advertising - Advertising expenses rose to $438 million in 2024, up from $347 million in 2023 and $302 million in 2022, indicating increased marketing efforts[385].