01—Abstract
Summary
Summary of the 10-K filed February 11, 2025. Cited figures are marked; the original filing is the authoritative source.
Delta Air Lines, Inc. reported 2024 operating income of $6.0 billiona ($5,995 million), up $474 million from 2023, and net income of $3,457 million, or $5.33 per diluted share, versus $4,609 million in 2023.
Total operating revenue rose 6% to $61.6 billionb on a 6% increase in capacity, with passenger revenue of $50.9 billion, premium product ticket revenue up 8% to $20.6 billion, and third-party refinery sales contributing to growth. Total operating expense rose 6% to $55.6 billion, and non-operating expense swung to $1.3 billion from $87 million of income in 2023, largely due to a $319 million loss on investments versus a $1.3 billion gain the prior year. The CrowdStrike-caused outage in July 2024 led to about 7,000 cancellations and an estimated $380 million direct revenue impact.
Cash generation and balance sheet repair were central themes. Operating activities provided $8.0 billionc, capital expenditures were $5.1 billion, and free cash flow, a non-GAAP measure, was $3.4 billion. Delta paid down about $4.0 billion of debt and finance leases, including roughly $1.1 billion of early repayments, and reported $6.1 billion of liquidity at year-end.
Debt and finance leases principal totaled $16.2 billiond, and Fitch and S&P upgraded the company to BBB-, giving it investment-grade ratings from all three major agencies. Stockholders' equity increased to $15.3 billion from $11.1 billion. Looking ahead, the filing states that Delta expects a 2025 effective tax rate of 23% to 25%, expects 2025 capital spending of approximately $5.0 billion, and has $18.3 billion of aircraft purchase commitments.
Quarterly dividends rose to $0.15 per share in the September and December 2024 quarters, and the Board approved another $0.15 payment for March 2025. The company also flagged risks including fuel price volatility, labor negotiations, the Aeroméxico antitrust immunity renewal, and ongoing capacity antitrust litigation.
02—Key points
Key Highlights
- Operating income of $6.0 billion, up $474 million from 2023; net income of $3.46 billion, or $5.33 per diluted share, versus $7.17 in 2023.
- Total operating revenue of $61.6 billion, up 6%, driven by a 6% capacity increase and premium product ticket revenue of $20.6 billion, up 8%.
- Free cash flow of $3.4 billion on $8.0 billion of operating cash flow and $5.1 billion of capital expenditures.
- Approximately $4.0 billion of debt and finance lease payments in 2024, including about $1.1 billion of early repayments; principal outstanding of $16.2 billion.
- Regained investment-grade ratings from all three major credit rating agencies, with Fitch and S&P upgrading to BBB- and Moody's affirming Baa3 with a positive outlook.
- Non-operating expense of $1.3 billion, compared with $87 million of net income in 2023, primarily due to a $319 million investment loss versus a $1.3 billion gain in 2023.
- CrowdStrike-caused IT outage in July 2024 led to about 7,000 cancellations over five days, affecting 1.4 million customers, with an estimated $380 million direct revenue impact and about $170 million of additional operating expense.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 11, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $61.64B$58.05B | +6.2% |
| Operating Expenses | $55.65B$52.53B | +5.9% |
| Operating Income | $6.00B$5.52B | +8.6% |
| Net Income | $3.46B$4.61B | −25.0% |
| EPS (Basic) | $5.39$7.21 | −25.2% |
| EPS (Diluted) | $5.33$7.17 | −25.7% |
| Shares Outstanding (Basic) | 641.00M639.00M | +0.3% |
| Shares Outstanding (Diluted) | 648.00M643.00M | +0.8% |
05—Questions
Frequently Asked Questions
How did Delta perform financially in 2024?
Delta reported operating income of $6.0 billion and net income of $3.46 billion, or $5.33 per diluted share, compared with $4.61 billion of net income in 2023. Operating revenue grew 6% to $61.6 billion, while operating expense rose 6% to $55.6 billion. Lower non-operating results, mainly a $319 million investment loss, reduced pre-tax income to $4.66 billion from $5.61 billion.
What was the impact of the July 2024 CrowdStrike outage?
The outage, caused by a faulty update from cybersecurity vendor CrowdStrike, led to about 7,000 Delta flight cancellations over five days and affected 1.4 million customers. Delta estimated a direct revenue impact of approximately $380 million and about $170 million of additional operating expenses, mainly from customer expense reimbursements and crew-related costs.
How is Delta managing its debt and balance sheet?
Delta made about $4.0 billion of debt and finance lease payments in 2024, including approximately $1.1 billion of early repayments. Total debt and finance lease principal fell to $16.2 billion, and liquidity was $6.1 billion at year-end. The company regained investment-grade ratings from all three major agencies, and stockholders' equity rose to $15.3 billion from $11.1 billion.
What does Delta expect for 2025?
Delta expects its annual effective tax rate to be between 23% and 25% in 2025 and anticipates capital spending of approximately $5.0 billion, primarily for aircraft. It also expects to utilize its remaining net operating loss carryforwards of about $2.7 billion during 2025 and expects to become a partial cash taxpayer afterward. It has $18.3 billion of aircraft purchase commitments and plans quarterly dividends of $0.15 per share.
What are the key risks highlighted in the filing?
The filing highlights fuel price volatility, with fuel representing 19% of 2024 operating expense, and reliance on the Monroe refinery. It also cites labor relations, including a Delta flight superintendent contract that became amendable in November 2024, and the pending DOT renewal of the Aeroméxico antitrust immunity. Additional risks include technology failures, competition, regulatory costs such as sustainable aviation fuel mandates, and an ongoing capacity antitrust class action.
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