Delta(US:DAL)2023-02-09 16:00Financial Performance - In 2022, Delta Air Lines achieved strong profitability and positive free cash flow, restoring its financial foundation[30]. - Total operating revenue for 2022 was $50,582 million, a 69.2% increase from $29,899 million in 2021[385]. - Passenger revenue reached $40,218 million, up 78.6% from $22,519 million in 2021[385]. - Net income for 2022 was $1,318 million, compared to a net income of $280 million in 2021[388]. - Operating income for 2022 was $3,661 million, significantly higher than the operating income of $1,886 million in 2021[385]. - The company reported a comprehensive income of $2,647 million for 2022, compared to $2,188 million in 2021[388]. - Basic earnings per share for 2022 were $2.07, compared to $0.44 in 2021[385]. - Total current liabilities increased to $25,940 million in 2022, up from $20,966 million in 2021, reflecting a 23.5% rise[385]. - Cash and cash equivalents decreased to $3,266 million in 2022 from $7,933 million in 2021, a decline of 58.8%[385]. - Total assets remained relatively stable at $72,288 million in 2022, compared to $72,459 million in 2021[385]. - Total noncurrent liabilities decreased to $39,766 million in 2022 from $47,606 million in 2021, a reduction of 16.5%[385]. - The company recorded depreciation and amortization expenses of $2.1 billion for the year ended December 31, 2022, compared to $2.0 billion in 2021[411]. Revenue Sources - Total passenger revenue for 2022 reached $40,218 million, a significant increase from $22,519 million in 2021, representing an 78.5% growth[428]. - Passenger ticket sales contributed $35,626 million to total passenger revenue in 2022, up from $19,339 million in 2021[428]. - Loyalty travel awards revenue increased to $2,898 million in 2022, compared to $1,786 million in 2021, marking a 62.4% rise[428]. - Total cash sales from marketing agreements related to the loyalty program amounted to $5.7 billion in 2022, up from $4.1 billion in 2021, reflecting a 39% increase[442]. - Other revenue for 2022 totaled $9,314 million, a 46.5% increase from $6,348 million in 2021[451]. - Refinery revenue reached $4,977 million in 2022, compared to $3,229 million in 2021, representing a 54.2% increase[451]. Debt and Liabilities - As of December 31, 2022, Delta had $17.9 billion in fixed-rate debt and $3.6 billion in variable-rate debt, with a potential $725 million decrease in fair value from a 100 basis point increase in interest rates[362]. - The company completed a cash tender offer in 2022, repurchasing $1.5 billion of outstanding debt securities, resulting in a $100 million loss on extinguishment of debt[489]. - As of December 31, 2022, total debt was $21,381 million, down from $25,084 million in 2021, with a fair value of $20,700 million[492]. - Delta Air Lines had approximately $2.9 billion undrawn and available under revolving credit facilities as of December 31, 2022[490]. - Total lease liabilities amount to $9,229 million, with current operating lease liabilities at $714 million and noncurrent operating lease liabilities at $6,866 million[506]. Investments and Assets - Delta's flight equipment value was reported at $38,091 million in 2022, up from $33,368 million in 2021, indicating growth in operational capacity[411]. - The total carrying value of indefinite-lived intangible assets was $15,671 million, including international routes and slots valued at $2,583 million and airline alliances at $1,863 million[480]. - The company has operating lease assets of $7,036 million and finance lease assets of $1,487 million as of December 31, 2022, totaling $8,523 million[506]. - The company has made significant investments in technology, with capitalized software costs amortized totaling $307 million in 2022, consistent with prior years[412]. Loyalty Program - The company reported a deferred revenue balance of $7.9 billion for its loyalty program, recognizing $2.9 billion in revenue from loyalty travel awards in 2022[377]. - Delta's loyalty program was recognized as the top loyalty program in the Americas, highlighting its competitive advantage in customer retention[30]. - The loyalty program deferred revenue balance at the end of 2022 was $7,882 million, up from $7,559 million at the end of 2021[449]. Sustainability and Environmental Initiatives - Delta Air Lines purchased and retired $116 million of carbon offsets in 2022, up from $95 million in 2021, indicating a commitment to sustainability[407]. Pension and Employee Benefits - The company recorded defined contribution pension plan costs of approximately $1.0 billion, $875 million, and $805 million for the years ended December 31, 2022, 2021, and 2020, respectively[527]. - The benefit obligation for pension plans decreased from $22.6 billion in 2021 to $15.8 billion in 2022, reflecting a net actuarial gain of $4.6 billion due to increased discount rates[531]. - The company expects to make benefit payments of $1.28 billion for pension benefits and $450 million for other postretirement benefits in 2023[539]. Market and Economic Conditions - Delta's fuel price risk indicates that a one cent increase in jet fuel costs would result in approximately $40 million of additional annual fuel expense[360]. - Delta executed its international revenue and expense transactions in the same foreign currency to manage foreign currency exchange rate risk[364]. - The air traffic liability typically increases during winter and spring months, with demand improving in 2022 as consumers regained confidence to travel[431].