Financial Performance - Operating income for the March 2025 quarter was $569 million, a decrease of $45 million compared to the March 2024 quarter[73]. - Total revenue increased by $292 million, or 2%, to $14.04 billion, driven by demand for premium products and a 4% increase in capacity[74][81]. - Passenger revenue rose by $349 million, or 3%, to $11.48 billion, with premium products and loyalty travel awards contributing significantly[81]. - Total operating expenses increased by $337 million, or 3%, to $13.47 billion, primarily due to higher employee costs and increased landing fees[75][90]. - Revenue passenger miles (RPM) increased by 3% to 55,678 million in Q1 2025 from 54,207 million in Q1 2024[105]. - Total revenue per available seat mile (TRASM) decreased by 2% to 20.53 cents in Q1 2025 compared to 20.98 cents in Q1 2024[105]. - Adjusted TRASM for Q1 2025 was 18.97 cents, down from 19.17 cents in Q1 2024, reflecting a decrease of 1.04%[129]. - Free cash flow for Q1 2025 was $1,280 million, derived from net cash provided by operating activities of $2,378 million and net cash used in investing activities of $1,224 million[131]. Cash Flow and Liquidity - Cash flow from operating activities generated $2.4 billion, with total cash sales to American Express reaching $1.9 billion, a 13% increase year-over-year[77]. - Free cash flow for the March 2025 quarter was $1.3 billion, following $1.2 billion in cash used for investing activities[78]. - As of March 31, 2025, Delta had $6.8 billion in cash and undrawn credit facilities, ensuring liquidity for the next twelve months[110][111]. Fuel Expenses - The average price per gallon of fuel decreased to $2.45 from $2.81, contributing to a $188 million reduction in fuel expenses[93]. - Delta's average price per fuel gallon decreased by 11% to $2.47 in Q1 2025 from $2.79 in Q1 2024[105]. - Total fuel expense for Q1 2025 was $2,410 million, a decrease of 7.2% from $2,598 million in Q1 2024[128]. - Fuel expense represented approximately 18% of total operating expenses in Q1 2025, down from 20% in Q1 2024[114]. Capital Expenditures - Capital expenditures for Q1 2025 were $1.2 billion, with an expected total capital spend of approximately $5.0 billion for the year, primarily for aircraft and technology enhancements[119]. Employee Compensation - Delta paid $1.4 billion in profit sharing in February 2025 related to 2024 pre-tax profit, with an accrual of $124 million for Q1 2025[115][116]. - The company withheld a total of 1,155,756 shares from employees during Q1 2025 to satisfy tax obligations[139]. Tax and Regulatory Information - The company projects an annual effective tax rate for 2025 between 24% and 26%[100]. - The company made no changes to its internal control over financial reporting that materially affected its financial reporting[135]. - There were no material changes in market risk from the previous disclosures in the Form 10-K[133]. - The company did not report any material changes in legal proceedings from the previous Form 10-K[136]. Refinery Segment Performance - Refinery segment generated operating revenue of $1.698 billion for the three months ended March 31, 2025, a decrease of $351 million compared to $2.049 billion in 2024[104]. - Operating loss for the refinery segment was $1 million in Q1 2025, down from operating income of $49 million in Q1 2024, primarily due to lower pricing of refined products[104]. Cost Metrics - CASM-Ex for Q1 2025 was 14.44 cents, slightly up from 14.08 cents in Q1 2024, indicating an increase of 2.55%[130]. - Adjusted CASM for Q1 2025 was 19.69 cents, down from 20.04 cents in Q1 2024, reflecting a decrease of 1.75%[130].

Financial Performance - Operating revenue for the March quarter 2025 was $14.0 billion, with a year-over-year increase of 2%[6]. - Total revenue for the March quarter was $13 billion, reflecting a 3.3% increase year-over-year, with premium revenue growing 7%[8][12]. - Total operating revenue for Q1 2025 was $14,040 million, a 2% increase from $13,748 million in Q1 2024[32]. - Passenger revenue increased by 3% to $11,480 million in Q1 2025, compared to $11,131 million in Q1 2024[34]. - Net income for Q1 2025 reached $240 million, significantly up from $37 million in Q1 2024[32]. - Operating income for Q1 2025 was $569 million, a decrease of 7% from $614 million in Q1 2024[32]. - The operating margin for the three months ended March 31, 2025, was 4.0%, down from 4.5% in the same period of 2024[52]. - Adjusted operating income was $591 million, compared to $640 million in the prior year, indicating a decrease of 7.6%[51]. Cost and Expenses - Non-fuel unit cost (CASM-Ex) increased by 2.6% year-over-year, reaching 14.44 cents[13]. - Total operating expense for Q1 2025 was $13,471 million, a 3% increase from $13,134 million in Q1 2024[32]. - Operating expenses for Q1 2025 were $13,471 million, an increase from $13,134 million in Q1 2024, reflecting a year-over-year increase of 2.6%[60]. - Non-fuel operating costs for Q1 2025 were $9,875 million, an increase from $9,227 million in Q1 2024, reflecting a year-over-year increase of 7%[60]. - Total fuel expense for Q1 2025 was $2,410 million, down from $2,598 million in Q1 2024, representing a decrease of 7%[62]. - Adjusted operating expenses for Q1 2025 were $12,388 million, compared to $11,923 million in Q1 2024, reflecting a year-over-year increase of 3.9%[61]. Cash Flow and Debt - Delta's operating cash flow for the quarter was $2.4 billion, with free cash flow of $1.3 billion[14]. - Adjusted net debt decreased to $16.9 billion, down $1.1 billion from the end of 2024[14]. - Cash, cash equivalents, and restricted cash equivalents at the end of the period totaled $3,941 million, down from $4,379 million at the end of the previous year[42]. - Debt and finance lease obligations decreased to $15,823 million in Q1 2025 from $16,194 million in Q4 2024[65]. - The company reported an adjusted net debt of $16,876 million, down from $17,980 million in Q4 2024, indicating a reduction of 6.2%[65]. - Free cash flow for Q1 2025 was $1,280 million, compared to $1,378 million in Q1 2024, showing a decline of 7.1%[70]. - Adjusted debt to EBITDAR ratio is 2.6x, indicating the company's leverage position[63]. Customer and Market Performance - Delta served over 200 million customers in 2024, achieving industry-leading customer service innovation and recognized as No. 1 in First/Business and Premium Economy Passenger Satisfaction by J.D. Power[23]. - Revenue passenger miles increased by 3% to 55,678 million in Q1 2025, compared to 54,207 million in Q1 2024[40]. - Delta's passenger load factor was 81.4% in Q1 2025, down from 82.7% in Q1 2024[40]. - The percentage of operating revenue related to premium products and diverse revenue streams was 59% for the three months ended March 31, 2025, compared to 57% in the previous year[57]. Fuel Costs - Delta's average fuel price per gallon decreased by 11% year-over-year to $2.45[13]. - Delta's average price per fuel gallon decreased by 11% to $2.47 in Q1 2025 from $2.79 in Q1 2024[40]. - Average fuel price per gallon increased to $2.79 in Q1 2025 from $2.47 in Q1 2024, marking an increase of 12.9%[62]. Future Outlook - Delta expects June quarter operating margin to be between 11% and 14%, with EPS guidance of $1.70 to $2.30[7]. - The company plans to reduce capacity growth in the second half of the year to flat year-over-year, aligning supply with demand[3].

Summary of Key Points from the Conference Call Industry Overview - The discussion primarily revolves around the **semiconductor and IT hardware industry**, with a focus on the implications of increasing U.S. content in products to mitigate tariffs [1][2]. Core Insights and Arguments - **U.S. Content Requirement**: To qualify for tariff exemptions, products must contain at least **20% U.S. content**. This necessitates significant production shifts to the U.S., which is challenging for companies like Apple [2][3]. - **Impact on iPhone Production**: The iPhone 16 Pro Max's Bill of Materials (BOM) shows that **SoC (14%)**, **memory (7%)**, and other components account for approximately **50%** of the BOM. Transitioning production to the U.S. could take several years, with estimated tariff increases of around **50%** due to the high percentage of assembly in China [3][19]. - **AI Server Production**: Unlike iPhones, the production of AI servers can be more easily shifted to the U.S. due to their assembly primarily in Mexico, which is exempt from new tariffs. This transition is seen as economically viable due to the higher profit margins associated with AI servers [4]. - **Intel's Position**: Intel's CPUs, primarily produced in the U.S., may benefit from lower tariffs, while companies like TSMC and AMD could face negative impacts due to their reliance on assembly in China [5][41]. - **MediaTek's Resilience**: MediaTek is less affected by tariffs as its supply chain is primarily based in Asia, allowing it to maintain market share despite the ongoing tariff disputes [5][14]. Additional Important Insights - **Cost Implications**: The cost of producing components in the U.S. could rise significantly, potentially exceeding **50%**, which may not justify the fixed costs of relocating production [3][4]. - **Supply Chain Dynamics**: The supply chain for camera modules and other components is heavily concentrated in Asia, with a transition to U.S. production expected to take around **two years** [24]. - **Investment Ratings**: Various companies in the semiconductor space received ratings, with **MediaTek** rated as outperform with a target price of **NT$1,820**, and **TSMC** also rated outperform with a target price of **NT$1,430** [7][13][14]. Conclusion - The semiconductor and IT hardware industry is navigating complex challenges related to tariffs and production shifts. Companies are assessing the feasibility of increasing U.S. content in their products while managing cost implications and supply chain logistics. The competitive landscape is influenced by these dynamics, with varying impacts on different players in the market.

Core Insights - Delta has unveiled next-generation power and liquid cooling solutions aimed at enhancing performance and energy efficiency in AI and HPC data centers at NVIDIA GTC 2025 [1][2] - The company emphasizes collaboration with customers to develop smart, energy-efficient solutions that support the growth of the AI industry while promoting sustainability [2] Smart Manufacturing Solutions - Delta's AI-based Smart Manufacturing Demo Line showcases five interactive smart production scenarios for PC board assembly, integrating various technologies including collaborative robots and digital twin systems [3] - The IIoT-based Line Manager allows for remote control and autonomous operations, enabling quick changeovers between different manufacturing processes and optimizing production parameters [4] Power Solutions for AI and HPC Data Centers - The new Power Capacitance Shelf features built-in lithium-ion capacitors, high power density, and a hold-up time of 5 seconds at a 15kW load, designed to stabilize power supply for AI servers [5] - Delta's HVDC server power solutions include a 72kW AC-DC Server Power Shelf with 98% efficiency and a 90kW DC-DC Server Power Shelf with 98.5% efficiency, addressing space limitations in traditional AI data centers [6] Cooling Solutions - Delta has introduced a 1.5MW liquid-to-liquid Coolant Distribution Unit (CDU) for high-density racks, capable of managing thermal challenges exceeding 100kW capacity [9] - The company also showcases advanced air cooling options, including a 3D Vapor Chamber with a 1000W cooling capacity and improved server fans with a 20% performance increase [9] Passive Components - New High Density Power Chokes support GPU operations under high current and temperature conditions, while Core Shell Liquid Cooling Busbars offer power dissipation up to 400kW with low inductance [10] Company Overview - Delta Electronics has a strong presence in the Americas, focusing on innovation in power management and energy solutions across various sectors, including IT and renewable energy [12][13] - The company is committed to sustainability and energy efficiency, continuously developing solutions to meet the growing demand for AI and cloud computing [13][14]

Summary of Datacenter Market Insights Industry Overview - The report focuses on the **Datacenter Market**, specifically the **server segment** within the **Asia Pacific** region, highlighting trends and insights for 2024 and 2025 [1][8]. Key Insights 1. **Server Shipment Growth**: - Total server shipments increased by **17%** in 2024, primarily driven by cloud demand. For 2025, cloud demand is expected to grow by an additional **5-10%**, while enterprise demand is projected to rise by **0-5%** [1][6]. 2. **Quarterly Performance**: - In **4Q24**, global server shipments reached **4.0 million units**, reflecting an **8%** quarter-over-quarter (q/q) increase and a **25%** year-over-year (y/y) increase. The growth was mainly attributed to cloud demand, with a notable acceleration from **1%** q/q in **3Q24** to **8%** q/q in **4Q24** [2][12]. 3. **AI Server Shipments**: - AI server shipments continued to rise in **4Q24**, but at a slower pace compared to **3Q24** due to a transition in GPU platforms. Notably, Super Micro reported a **3%** decline in shipments q/q, while Huawei's shipments surged by **93%** q/q [3][4]. 4. **ODM Direct Shipments**: - Aggregate ODM direct shipments totaled **1,474k units** in **4Q24**, marking an **11%** q/q increase and a **45%** y/y increase. ODMs regained market share in general server markets from OEMs, with ODM direct server average selling price (ASP) rising by **15%** q/q to **US$24.9k** [4][15]. 5. **Regional Performance**: - The **USA** outperformed other regions in **4Q24**, with shipments up **42%** y/y, followed by **APxJ** at **21%** y/y, **Japan** at **7%**, **Western Europe** at **2%**, and **Rest of World (RoW)** at **1%** [12][27]. 6. **Segment Performance**: - High-end server shipments grew by **310%** y/y in **4Q24**, mid-range servers increased by **109%** y/y, and entry-level servers saw a **17%** y/y growth. This trend aligns with the ongoing ramp of AI servers and general compute server demand [13][14]. 7. **Vendor Market Share**: - ODMs captured **37.3%** of the market share in **4Q24**, up **90 basis points** q/q. Dell's market share decreased to **9.6%**, while HP's share fell to **7.8%**. Huawei's market share increased to **2.3%**, reflecting a **100 basis point** increase q/q [16][12]. Stock Implications - The report suggests a preference for **component suppliers** with content share gains over ODMs/OEMs. Notable companies mentioned include **Delta**, **AVC**, **GCE**, and **Wistron**, among others [7][8]. Additional Insights - The **GB200 server racks** began ramping production in late February 2025, with expectations to deliver **2k racks** in **1Q25** and **5-8k racks** in **2Q25**. However, significant volumes for B300/GB300 will not be delivered until September at the earliest [5][6]. This summary encapsulates the critical insights and trends from the datacenter market, providing a comprehensive overview of the current state and future expectations within the server segment.

Fuel 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].

Financial Data and Key Metrics - The company reported its December quarter and full-year 2024 financial results, with key metrics and performance highlights to be discussed by the CEO, President, and CFO [2][3][4] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content [2][3][4] Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content [2][3][4] Company Strategy and Industry Competition - The CEO, Ed Bastian, will provide an overview of Delta's performance and strategy, which may include insights into the company's strategic direction and competitive positioning [4] Management Commentary on Operating Environment and Future Outlook - Glen Hauenstein, President, will provide an update on the revenue environment, which may include commentary on the current operating environment and future revenue prospects [4] - Dan Janki, CFO, will discuss costs and the balance sheet, potentially offering insights into cost management and financial health [4] Other Important Information - The call is being recorded, and participants are in listen-only mode until the Q&A session [2] - Participants are requested to limit themselves to one question and a brief follow-up to allow for more questions to be addressed [4] Q&A Session Summary - No specific questions or answers were provided in the content, as the Q&A session had not yet commenced [2][3][4]

[Executive Summary & 2025 Outlook](index=1&type=section&id=Executive%20Summary%20%26%202025%20Outlook) 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](index=1&type=section&id=1.1%20December%20Quarter%20%26%20Full%20Year%202024%20Highlights) 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](index=1&type=chunk)[2](index=2&type=chunk) - 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](index=1&type=chunk) [1.2 2025 Financial Guidance & Long-term Targets](index=1&type=section&id=1.2%202025%20Financial%20Guidance%20%26%20Long-term%20Targets) 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](index=1&type=section&id=December%20Quarter%202024%20Financial%20Results) 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](index=1&type=section&id=2.1%20GAAP%20Financial%20Results) 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](index=1&type=section&id=2.2%20Non-GAAP%20Financial%20Results) 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](index=3&type=section&id=2.3%20Revenue%20Performance) 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](index=11&type=chunk)[15](index=15&type=chunk) - 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](index=15&type=chunk) - 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](index=15&type=chunk) [2.4 Cost Performance](index=3&type=section&id=2.4%20Cost%20Performance) 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](index=2&type=section&id=Full%20Year%202024%20Financial%20Results) 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](index=2&type=section&id=3.1%20GAAP%20Financial%20Results) 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](index=2&type=section&id=3.2%20Adjusted%20Financial%20Results) 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](index=4&type=section&id=3.3%20Cost%20Performance) 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](index=4&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%20%26%20Liquidity) 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](index=4&type=section&id=4.1%20December%20Quarter%202024%20Cash%20Flow%20%26%20Liquidity) 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](index=4&type=section&id=4.2%20Full%20Year%202024%20Cash%20Flow%20%26%20Liquidity) 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](index=19&type=chunk) - 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](index=17&type=chunk) [4.3 Balance Sheet Overview](index=12&type=section&id=4.3%20Balance%20Sheet%20Overview) 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](index=5&type=section&id=Operational%20%26%20Strategic%20Highlights) 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](index=5&type=section&id=5.1%20Operations%2C%20Network%20%26%20Fleet) 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](index=23&type=chunk) - 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](index=23&type=chunk) - 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](index=23&type=chunk) [5.2 Culture & People](index=5&type=section&id=5.2%20Culture%20%26%20People) 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](index=23&type=chunk) - Employee Development: Opened a **new pilot training facility** in Salt Lake City, capable of hosting over 1,000 training events monthly[23](index=23&type=chunk) - 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](index=23&type=chunk) [5.3 Customer Experience & Loyalty](index=5&type=section&id=5.3%20Customer%20Experience%20%26%20Loyalty) 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](index=23&type=chunk) - 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](index=23&type=chunk) [5.4 Environmental, Social & Governance (ESG)](index=5&type=section&id=5.4%20Environmental%2C%20Social%20%26%20Governance%20%28ESG%29) 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](index=23&type=chunk) - 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](index=23&type=chunk) - Fuel Efficiency: Delta's Carbon Council nearly **doubled fuel savings** from 2023, saving **41 million gallons** of jet fuel in 2024[23](index=23&type=chunk) - Renewable Energy: Began installing **rooftop solar panels** at its Atlanta headquarters[23](index=23&type=chunk) [Detailed Financial Statements (GAAP)](index=8&type=section&id=Detailed%20Financial%20Statements%20%28GAAP%29) 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](index=8&type=section&id=6.1%20Consolidated%20Statements%20of%20Operations) 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](index=9&type=section&id=6.2%20Passenger%20Revenue%20Breakdown) 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](index=9&type=section&id=6.3%20Other%20Revenue%20Breakdown) 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](index=9&type=section&id=6.4%20Total%20Revenue%20Breakdown) 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](index=10&type=section&id=6.5%20Statistical%20Summary) 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](index=11&type=section&id=6.6%20Consolidated%20Statements%20of%20Cash%20Flows) 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](index=12&type=section&id=6.7%20Consolidated%20Balance%20Sheets) 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](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) 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](index=13&type=section&id=7.1%20Overview%20of%20Non-GAAP%20Adjustments) 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](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - 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](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [7.2 Operating Revenue & TRASM, Adjusted](index=13&type=section&id=7.2%20Operating%20Revenue%20%26%20TRASM%2C%20Adjusted) 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](index=14&type=section&id=7.3%20Pre-Tax%20Income%2C%20Net%20Income%20%26%20EPS%2C%20Adjusted) 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](index=15&type=section&id=7.4%20Operating%20Cash%20Flow%2C%20Adjusted) 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](index=16&type=section&id=7.5%20Free%20Cash%20Flow) 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](index=16&type=section&id=7.6%20Operating%20Income%20%26%20Margin%2C%20Adjusted) 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](index=17&type=section&id=7.7%20Pre-Tax%20Margin%2C%20Adjusted) 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](index=18&type=section&id=7.8%20Adjusted%20Debt%20to%20EBITDAR) 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)](index=18&type=section&id=7.9%20After-tax%20Return%20on%20Invested%20Capital%20%28ROIC%29) 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)](index=19&type=section&id=7.10%20Operating%20Revenue%2C%20Adjusted%20%28Premium%20%26%20Diverse%20Streams%29) 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](index=19&type=section&id=7.11%20Operating%20Expense%2C%20Adjusted) 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](index=19&type=section&id=7.12%20Adjusted%20Non-Fuel%20Cost%20%26%20CASM-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](index=20&type=section&id=7.13%20Total%20Fuel%20Expense%20%26%20Average%20Fuel%20Price%2C%20Adjusted) 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](index=21&type=section&id=7.14%20Gross%20Capital%20Expenditures) 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](index=21&type=section&id=7.15%20Adjusted%20Net%20Debt) 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](index=7&type=section&id=About%20Delta%20Air%20Lines) 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](index=26&type=chunk)[27](index=27&type=chunk)[29](index=29&type=chunk)[31](index=31&type=chunk) - 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](index=27&type=chunk)[32](index=32&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) 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](index=33&type=chunk) - 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](index=33&type=chunk) - 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](index=33&type=chunk)[34](index=34&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, par value $0.0001 per share DAL New York Stock Exchange FORM 10-Q ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 Or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Delta Air Lines, Inc. (NYSE:DAL) Q3 2024 Earnings Conference Call October 10, 2024 10:00 AM ET Company Participants Julie Stewart - Vice President, IR Ed Bastian - CEO Glen Hauenstein - President Dan Janki - CFO Tim Mapes - SVP & Chief Communications Officer Peter Carter - EVP, External Affairs Conference Call Participants David Vernon - Bernstein Jamie Baker - JPMorgan Savi Syth - Raymond James Mike Linenberg - Deutsche Bank Conor Cunningham - Melius Research Duane Pfennigwerth - Evercore ISI Scott Group - ...