Delta(US:DAL)2024-02-11 16:00Financial Performance - In 2023, Delta Air Lines achieved strong profitability with $2 billion of free cash flow for the year[29]. - Total operating revenue for 2023 reached $58,048 million, a 14.5% increase from $50,582 million in 2022[362]. - Net income for 2023 was $4,609 million, significantly up from $1,318 million in 2022, representing a 249% increase[362]. - Operating income improved to $5,521 million in 2023, compared to $3,661 million in 2022, marking a 50.7% increase[362]. - Basic earnings per share for 2023 was $7.21, up from $2.07 in 2022, representing a 248.8% increase[362]. - Comprehensive income for 2023 was $4,565 million, compared to $2,647 million in 2022, indicating a 72.3% increase[365]. - Cash flows from operating activities were $6,464 million in 2023, slightly up from $6,363 million in 2022[367]. Debt and Liabilities - The company repaid approximately $4.1 billion in debt and finance lease obligations during 2023, aiming to regain investment grade metrics[30]. - As of December 31, 2023, Delta had $16.8 billion of fixed-rate debt and $1.9 billion of variable-rate debt, with a potential $716 million decrease in fair value from a 100 basis points increase in interest rates[339]. - Total current liabilities rose to $26,418 million in 2023, compared to $25,940 million in 2022, an increase of 1.8%[359]. - Total noncurrent liabilities decreased to $36,121 million in 2023 from $39,766 million in 2022, a reduction of 9.0%[359]. - Total outstanding debt is $18,610 million as of December 31, 2023, down from $21,381 million in 2022[463]. - The company repurchased $1.4 billion of various secured and unsecured notes during 2023, resulting in a $63 million loss on extinguishment of debt[456]. - Future debt maturities total $18,693 million, with $2,633 million due in 2024[466]. Revenue Sources - Total passenger revenue for the year ended December 31, 2023, was $48.9 billion, a 21.5% increase from $40.2 billion in 2022[402]. - Passenger ticket sales contributed $43.6 billion to total passenger revenue in 2023, up from $35.6 billion in 2022, representing a 22.4% increase[402]. - The loyalty travel awards revenue reached $3.5 billion in 2023, compared to $2.9 billion in 2022, marking a 19.5% increase[402]. - Total cash sales from marketing agreements related to the loyalty program were $6.9 billion in 2023, up from $5.7 billion in 2022, reflecting a 21.1% growth[413]. - The loyalty program deferred revenue balance at December 31, 2023, was $8.4 billion, an increase from $7.9 billion at the end of 2022[419]. - Domestic passenger revenue for 2023 was $34.0 billion, a 12.5% increase from $30.2 billion in 2022[425]. Investments and Assets - The company recorded a net gain of $1.3 billion related to the valuation of its fair value investments during 2023[342]. - The total carrying value of equity investments increased from $2,128 million in 2022 to $3,457 million in 2023, reflecting significant growth in strategic partnerships[436]. - Delta Air Lines recorded a $786 million mark-to-market gain on its investment in Wheels Up based on the closing price of its shares as traded on the New York Stock Exchange[442]. - The fair value of long-term investments and related assets was $2,867 million as of December 31, 2023, with $2,614 million classified as Level 1[430]. - The fair value of cash equivalents decreased from $2,021 million in 2022 to $1,545 million in 2023, indicating a reduction in liquid assets[430]. - Delta's total property and equipment, net, increased to $35,486 million in 2023, up from $33,109 million in 2022, representing a growth of approximately 7.2%[388]. Operating Costs and Expenses - Cash and cash equivalents decreased to $2,741 million in 2023 from $3,266 million in 2022, a decline of 16.1%[359]. - Delta's depreciation and amortization expense for property and equipment was $2.3 billion in 2023, compared to $2.1 billion in 2022, reflecting an increase of about 9.5%[388]. - The company declared dividends of $0.20 per share, totaling $129 million for the year 2023[371]. - The company's advertising expenses were $347 million in 2023, up from $302 million in 2022, indicating a 14.9% increase[399]. - Total other revenue for 2023 was $8.4 billion, a decrease from $9.3 billion in 2022, primarily due to lower refinery sales[421]. Pension and Benefits - Costs associated with defined contribution pension plans were approximately $1.2 billion in 2023, up from $1.0 billion in 2022[498]. - The benefit obligation for pension benefits at the end of 2023 was $15,911 million, a slight increase from $15,811 million in 2022[502]. - The funded status for pension benefits at the end of 2023 was $(145) million, worsening from $(90) million in 2022[503]. - The net periodic cost for pension benefits in 2023 was $130 million, a significant increase from a benefit of $(453) million in 2022[504]. - The actual gain on plan assets for pension benefits in 2023 was $1,142 million, a recovery from a loss of $(2,517) million in 2022[502]. Future Commitments and Projects - Future aircraft purchase commitments amounted to approximately $17.5 billion at December 31, 2023, with specific commitments for 2024 through 2028 detailed[526]. - The company has a total of 312 aircraft purchase commitments, including 77 A220-300 and 100 B-737-10 aircraft[527]. - The redevelopment project at New York-JFK Airport is estimated to cost approximately $1.6 billion, with construction substantially completed in 2023[484]. - The terminal redevelopment project at Los Angeles International Airport is expected to cost around $2.4 billion, with net project costs anticipated to be approximately $600 million[487]. - The LaGuardia Airport terminal redevelopment project is projected to cost $4.3 billion, with approximately $3.7 billion spent to date[494].