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DAL · Delta Air Lines

50 filings

10-Q

DAL 10-Q Quarterly Reports

Delta Air Lines - 50 quarterly reports

Filing record · 2016–202610-K1210-Q338-K210

DAL filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 210 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’17Oct ’17
  2. Material agreement8-K · Oct ’19Oct ’19
  3. Material agreement8-K · Nov ’21Nov ’21
  4. Leadership change8-K · Dec ’25Dec ’25
  1. 2026-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2026

    Delta Air Lines, Inc. reported operating income of $1.45 billion for the three months ended September 30, 2026, a decrease of $230 million from the prior-year quarter, on total operating revenue of $20.19 billion (up from $16.67 billion). Net income was $756 million, or $1.15 per diluted share, compared with $1.417 billion, or $2.17 per diluted share, a year earlier. Results were pressured by a 63% increase in average jet fuel purchase price and by $218 million of losses on investments, while passenger revenue grew 15% on broad-based demand across premium, main cabin and loyalty. Nine-month net income was $2.07 billion, or $3.15 per diluted share, versus $3.79 billion, or $5.80 per diluted share, in the prior-year period. Revenue growth was also supported by third-party refinery sales, which rose $1.1 billion in the quarter, and by higher loyalty and related revenue, which increased 19% driven by American Express card spending. The Monroe refinery posted an operating loss of $33 million in the quarter after a temporary outage beginning in mid-June 2026; the company expects a return to profitability in the December 2026 quarter. Cash flow from operations for the nine months was $5.74 billion, and free cash flow for the September quarter was $463 million (a non-GAAP measure). Liquidity was $6.9 billion at September 30, 2026, including about $3.1 billion undrawn under revolving credit facilities. Balance sheet activity included debt and finance lease payments of $3.3 billion in the nine months, of which $2.3 billion were early repayments, and total debt declining to $12.1 billion from $13.3 billion at year-end 2025. Aircraft purchase commitments totaled approximately $26.7 billion, and the company approved a quarterly dividend of $0.2150 per share payable November 5, 2026.

    Oct 9, 2026
  2. 2026-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2026

    Delta Air Lines, Inc. reported operating income of $1.864 billion for the three months ended June 30, 2026, down $238 million from the prior-year quarter, on total operating revenue of $19.757 billion (up from $16.648 billion). Net income was $1.604 billion, or $2.44 diluted EPS, versus $2.130 billion and $3.27 a year earlier. Management attributes the revenue increase primarily to higher pricing in response to a rapid increase in fuel costs, broad-based demand strength, and higher refinery sales to third parties. Total operating expense rose to $17.893 billion, driven by aircraft fuel and related taxes ($4.109 billion, up from $2.458 billion; average jet fuel price up 80% per the filing) and refinery expense. For the six months, net income was $1.315 billion and diluted EPS was $2.00. Liquidity and cash generation remained solid. Operating cash flow was $4.027 billion for the six months ended June 30, 2026, versus $4.235 billion a year earlier. Capital expenditures were $2.7 billion for the six months, and management expects 2026 capital spend to exceed $5 billion. Cash, cash equivalents, short-term investments and undrawn revolver capacity totaled $7.7 billion at quarter-end, and total debt was $12.905 billion, down from $13.308 billion at December 31, 2025. The company refinanced its corporate revolver with a new $2.650 billion facility in June 2026 and reported free cash flow of $209 million for the June 2026 quarter as a non-GAAP measure. The filing also highlights a refinery outage beginning in mid-June 2026 that partly offset refinery operating income of $351 million, and a declared quarterly dividend of $0.2150 per share payable July 30, 2026. No shares have been repurchased under the $1.0 billion program authorized in the June 2025 quarter. Investors should weigh the strong revenue growth against the sharp rise in fuel and operating costs that compressed margins relative to the prior year.

    Jul 10, 2026
  3. 2026-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2026

    Delta Air Lines, Inc. reported operating income of $501 million for the three months ended March 31, 2026, down $68 million from the prior-year quarter, on total operating revenue of $15.85 billion (up from $14.04 billion). Total operating expense rose $1.88 billion to $15.35 billion, driven by refinery expense tied to third-party refinery sales, salaries and related costs, and aircraft fuel. The company posted a net loss of $289 million, or $0.44 per diluted share, versus net income of $240 million, or $0.37 per share, a year earlier. The swing was primarily due to a $550 million loss on investments, net, reflecting mark-to-market losses on certain equity investments, and total non-operating expense of $715 million. Passenger revenue rose $822 million to $12.30 billion, with premium products and loyalty revenue cited as drivers. Cash flow and liquidity remained solid. Operating activities generated $2.43 billion and free cash flow was $1.23 billion, a non-GAAP measure. Delta repaid $1.6 billion of debt and finance leases, including $1.2 billion of early repayments, while total debt fell to $13.24 billion from $13.31 billion. Liquidity, defined as cash, short-term investments and undrawn revolving credit, was $8.1 billion at quarter end. Management expects fuel costs to remain elevated until recent market disruptions and geopolitical events are resolved. The balance sheet shows total assets of $84.43 billion and stockholders' equity of $20.38 billion. Aircraft purchase commitments totaled approximately $28.5 billion at March 31, 2026, and the company expects 2026 capital spending of approximately $5.5 billion. Delta paid a quarterly dividend of $0.1875 per share and holds a $1.0 billion opportunistic share repurchase authorization, under which no shares had been repurchased as of March 31, 2026.

    Apr 8, 2026
  4. 2025-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2025

    Delta Air Lines, Inc. reported operating income of $1.7 billion for the three months ended September 30, 2025, up $287 million from the prior-year quarter, on total operating revenue of $16.67 billion (up from $15.68 billion). Net income was $1.42 billion, or $2.17 per diluted share, versus $1.27 billion, or $1.97 per diluted share, a year earlier. For the nine months, net income was $3.79 billion ($5.80 diluted EPS) compared with $2.61 billion ($4.04 diluted EPS), helped by $1.01 billion of gains on investments, net. Passenger revenue rose 3% in the quarter on stronger premium product demand, particularly from corporate customers, while main cabin ticket revenue declined 4%. Cash flow and balance sheet trends were favorable. Net cash from operating activities was $6.08 billion for the nine months, roughly flat year over year, and free cash flow for the September 2025 quarter was $833 million. Total debt fell to $14.17 billion from $15.35 billion at December 31, 2024, following $3.9 billion of debt and finance lease payments in the nine months, and the company issued $2.0 billion of unsecured notes in June 2025. Liquidity was $6.9 billion at September 30, 2025, and stockholders' equity rose to $18.82 billion. Management expects 2025 capital spending of about $5.0 billion and a 2025 effective tax rate of 24% to 25% excluding mark-to-market gains. The filing also notes $16.0 billion of aircraft purchase commitments, a $1.0 billion opportunistic share repurchase program authorized in the June 2025 quarter with no repurchases through September 30, 2025, and a quarterly dividend of $0.1875 per share payable November 6, 2025. The review by Ernst & Young LLP identified no material modifications to the interim statements. The company remains a defendant in the Capacity Antitrust Litigation, which is proceeding to class discovery, and management believes the claims are without merit.

    Oct 9, 2025
  5. 2025-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2025

    Delta Air Lines, Inc. reported operating income of $2.1 billion for the quarter ended June 30, 2025, down $165 million from the June 2024 quarter, on total operating revenue of $16.65 billion, essentially flat year over year ($16.66 billion in the prior-year quarter). Total operating expense rose $155 million, or 1%, to $14.55 billion, driven by a 4% increase in capacity, higher salaries and related costs, and higher landing fees, partially offset by a 13% decline in aircraft fuel and related taxes. Net income for the quarter was $2.13 billion, or $3.27 per diluted share, compared with $1.31 billion, or $2.01 per diluted share, a year earlier. The improvement at the bottom line was driven primarily by a $735 million gain on investments, net, versus a $196 million loss in the prior-year quarter, along with lower interest expense. For the six months ended June 30, 2025, net income was $2.37 billion, or $3.63 per diluted share, on operating revenue of $30.69 billion and operating income of $2.67 billion. Cash flow from operations was $4.24 billion for the six months, compared with $4.86 billion a year earlier. Liquidity stood at $6.4 billion as of June 30, 2025. During the June 2025 quarter, the company issued $2.0 billion of unsecured notes and used part of the proceeds to repay the PSP1 Loan due 2030. Total debt declined to $14.38 billion from $15.35 billion at December 31, 2024, and the company's year-to-date debt and finance lease repayments totaled $3.5 billion. Management expects 2025 capital spending of approximately $5.0 billion, primarily for aircraft, and projects an annual effective tax rate between 22% and 25%. Aircraft purchase commitments totaled $16.8 billion at June 30, 2025. The Board approved a quarterly dividend of $0.1875 per share payable August 21, 2025, and authorized a $1.0 billion opportunistic share repurchase program, under which no shares were repurchased in the June 2025 quarter.

    Jul 10, 2025
  6. 2025-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2025

    Delta Air Lines, Inc. reported net income of $240 million, or $0.37 per diluted share, for the three months ended March 31, 2025, compared with $37 million, or $0.06 per diluted share, in the prior-year quarter. Total operating revenue rose to $14.04 billion from $13.75 billion, led by passenger revenue of $11.48 billion, which increased on strength in premium products and long-haul international travel. Operating income was $569 million, down from $614 million, as total operating expense rose 3% to $13.47 billion on a 4% increase in capacity (ASMs). Non-operating expense narrowed to $249 million from $492 million, mainly on lower interest expense and a smaller loss on investments. Cash generation and balance sheet items were central to the quarter. Net cash provided by operating activities was $2.38 billion, and free cash flow, a non-GAAP measure, was $1.28 billion. Liquidity was $6.8 billion at quarter-end, including about $3.1 billion undrawn under revolving credit facilities. Total debt and finance leases stood at $15.08 billion, down from $15.35 billion at December 31, 2024, with $531 million of debt repaid during the quarter. Air traffic liability rose to $10.02 billion from $7.09 billion, reflecting seasonal advance ticket sales. Management highlighted weaker main cabin demand and macroeconomic uncertainty late in the quarter, offset by premium demand. The filing states that Delta expects 2025 capital spending of approximately $5.0 billion, primarily for aircraft, and a 2025 effective tax rate between 24% and 26%. Aircraft purchase commitments totaled $17.6 billion at March 31, 2025, and a Moody's upgrade to Baa2 in February 2025 was noted.

    Apr 9, 2025
  7. 2024-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2024

    Delta Air Lines, Inc. reported net income of $1.27 billion for the September 2024 quarter, compared with $1.11 billion in the September 2023 quarter, and diluted earnings per share of $1.97 versus $1.72. Operating income fell to $1.4 billion from $1.98 billion, a decrease of $587 million. Total operating revenue rose 1% to $15.68 billion, driven by refinery sales to third parties and a 4% increase in capacity, while total operating expense increased 6% to $14.28 billion. Management attributed part of the cost increase to the July 2024 CrowdStrike-caused outage, which led to approximately 7,000 flight cancellations over five days and a direct revenue impact of about $380 million, with roughly $170 million of additional operating expenses. For the nine months ended September 30, 2024, net income was $2.61 billion, essentially flat with $2.57 billion a year earlier, and operating income was $4.28 billion versus $4.20 billion. Balance sheet and cash metrics improved: total debt declined to $16.58 billion from $18.61 billion at December 31, 2023, and nine-month operating cash flow was $6.13 billion. The company reported liquidity of $6.9 billion, including approximately $2.9 billion undrawn under revolving credit facilities. Free cash flow for the September 2024 quarter was $95 million, and the company paid $225 million in cash dividends in the first nine months. Management highlighted a credit rating upgrade by Fitch to BBB-, which led to the release of collateral liens under the Corporate Revolving Credit Facility. The company also disclosed aircraft purchase commitments of approximately $19.0 billion, an amended Boeing 737-10 delivery schedule, and a quarterly dividend of $0.15 per share declared for payment on October 31, 2024.

    Oct 10, 2024
  8. 2024-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2024

    Delta Air Lines, Inc. reported operating income of $2.3 billion for the June 2024 quarter ($2,267 million), compared with $2,491 million in the June 2023 quarter. Total operating revenue rose to $16,658 million from $15,578 million, driven by an 8% increase in capacity (ASMs) and a 5% rise in passenger revenue, with total operating expense up 10% to $14,391 million. Net income for the quarter was $1,305 million, or $2.01 per diluted share, versus $1,827 million, or $2.84 per diluted share, a year earlier. The decline in profit reflects a $196 million loss on investments in the quarter (versus a $128 million gain a year earlier), along with higher salaries, fuel, and landing fee costs. For the six months ended June 30, 2024, net income was $1,342 million, or $2.08 per diluted share, compared with $1,464 million, or $2.28 per diluted share, in the prior-year period. Operating income for the six months improved to $2,881 million from $2,215 million, which included a $864 million pilot agreement expense in the 2023 period. Liquidity stood at $7.2 billion at June 30, 2024, including approximately $2.9 billion undrawn under revolving credit facilities. Total debt fell to $16,783 million from $18,610 million at December 31, 2023, and the company paid $2.1 billion in debt and finance lease repayments during the first half, including roughly $900 million of early repayments. The company also reported operating cash flow of $4,857 million for the six months, capital expenditures of $2,502 million, and a quarterly dividend of $0.10 per share paid in June 2024, with a higher $0.15 per share dividend declared for payment on August 20, 2024. The filing notes free cash flow of $1,274 million for the June 2024 quarter, a non-GAAP measure. Management expects 2024 capital spending of approximately $5.0 billion, excluding the LaGuardia terminal project, and an effective tax rate of 24% to 26%.

    Jul 11, 2024
  9. 2024-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2024

    Delta Air Lines, Inc. reported net income of $37 million for the three months ended March 31, 2024, compared with a net loss of $363 million in the prior-year quarter. Total operating revenue rose to $13.75 billion from $12.76 billion, driven by a 7% increase in capacity and continued strength in travel demand across all regions, particularly for premium products. Operating income was $614 million versus an operating loss of $277 million a year earlier. The prior-year period included $864 million of one-time pilot agreement-related expenses, and the company noted that operating expense rose only 1%, with adjusted operating expense up 6%. Cash generation was solid. Net cash provided by operating activities was $2.41 billion, and free cash flow was $1.38 billion as defined by the company. Liquidity stood at $7.4 billion at quarter-end, including $2.9 billion undrawn under revolving credit facilities. Total debt and finance leases were $18.13 billion, down from $18.61 billion at December 31, 2023, after $712 million of debt repayments in the quarter. Delta paid a $0.10 per share quarterly dividend, totaling $64 million. The company's pre-tax results were weighed by $227 million of losses on investments, net, and $205 million of interest expense. Management projects a 2024 effective tax rate of 23% to 25% and expects full-year 2024 capital spending of approximately $5.0 billion, excluding the LaGuardia terminal project. Aircraft purchase commitments totaled $20.7 billion at March 31, 2024.

    Apr 10, 2024
  10. 2023-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2023

    Delta Air Lines, Inc. reported net income of $1,108 million for the three months ended September 30, 2023, up from $695 million a year earlier, and net income of $2,572 million for the nine months, up from $489 million. Diluted earnings per share were $1.72 for the quarter and $4.00 for the nine months. Total operating revenue rose 11% in the quarter to $15,488 million on a 16% increase in capacity, and rose 18% to $43,825 million for the nine months. Operating income was $1,984 million for the quarter, improving $528 million year over year, though operating expense rose 8% on higher salaries, profit sharing and maintenance costs. The nine-month results include a $735 million one-time pilot ratification payment and approximately $130 million of other benefit-related adjustments. Cash and balance sheet metrics improved over the period. Operating cash flow was $5,919 million for the nine months, versus $5,175 million in the prior year period. Total debt and finance leases were reduced by $3.7 billion in payments during the nine months, and total debt carrying amount fell to $18,028 million from $21,381 million at December 31, 2022. Liquidity was $7.8 billion at September 30, 2023, and S&P upgraded the company's credit rating to BB+ in the September 2023 quarter. Shareholders' equity increased to $9,226 million from $6,582 million. The filing also highlights a refinery turnaround beginning in mid-September 2023, expected to conclude in mid-November 2023, during which the Monroe refinery will not produce. The company's aircraft purchase commitments totaled approximately $17.8 billion, and it made a $150 million contribution to a Wheels Up credit facility that gives it a 39% equity stake in Wheels Up. Delta also disclosed that the Capacity Antitrust Litigation continues, with class certification discovery expected to begin.

    Oct 12, 2023
  11. 2023-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2023

    Delta Air Lines, Inc. reported operating income of $2,491 million for the three months ended June 30, 2023, up from $1,519 million a year earlier, on total operating revenue of $15,578 million (versus $13,824 million). Net income was $1,827 million, or $2.84 diluted EPS, compared with $735 million ($1.15) in the June 2022 quarter. For the six months, operating income was $2,215 million and net income was $1,464 million ($2.28 diluted EPS), against a net loss of $205 million in the prior-year period. Management attributed the revenue growth to travel demand on a 17% increase in capacity, with premium products outpacing main cabin. Results were also affected by a $735 million one-time pilot ratification payment and a $667 million six-month profit sharing accrual. The balance sheet strengthened over the period. Total debt and finance leases fell to $20.3 billion, with total debt of $18,636 million at June 30, 2023, down from $21,381 million at December 31, 2022, following $3.0 billion of debt and finance lease payments in the six months. Stockholders' equity rose to $8,100 million from $6,582 million. Liquidity was $8.8 billion, consisting of cash, short-term investments and about $2.8 billion of undrawn revolving credit facilities. Operating cash flow for the six months was $4,843 million. Management stated it expects jet fuel prices to remain volatile through 2023 and fuel consumption to rise as planned full-year capacity grows versus 2022. The filing also notes a planned refinery turnaround beginning in mid-September 2023, expected to last about two months, and a quarterly dividend of $0.10 per share payable August 7, 2023.

    Jul 13, 2023
  12. 2023-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2023

    Delta Air Lines, Inc. reported a net loss of $363 million for the three months ended March 31, 2023, compared with a net loss of $940 million in the prior-year quarter, on operating revenue of $12.76 billion (up from $9.35 billion). Operating loss narrowed to $277 million from $783 million. Growth was driven by a 51% increase in passenger revenue and an 18% increase in capacity, with TRASM up 15% to 20.80 cents. Results were weighed down by a one-time pilot agreement expense of $864 million, including a $735 million ratification payment, and total operating expense rose 29% to $13.04 billion, with fuel and salaries also higher. Management reported operating income, adjusted of $546 million. Liquidity was $9.5 billion at March 31, 2023, and operating activities generated $2.2 billion of cash, with free cash flow of $1.85 billion as defined by the company. Delta repaid $1.2 billion of debt and finance leases, including $468 million of early note repurchases, reducing total debt and finance leases to $22.1 billion principal. Air traffic liability rose to $11.19 billion from $8.16 billion, reflecting seasonal advance ticket sales. Stockholders' equity declined to $6.26 billion from $6.58 billion, and the company's effective tax rate for 2023 is projected at 23% to 26%. The filing also notes aircraft purchase commitments of $18.7 billion, a 2023 capital spend expected to be about $5.5 billion excluding the LaGuardia project, and a 5% base pay increase for eligible employees effective April 1, 2023. Fitch and S&P upgraded Delta's rating outlooks to stable and positive, respectively, during the quarter.

    Apr 13, 2023
  13. 2022-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2022

    Delta Air Lines, Inc. reported a quarter of continued recovery from the COVID-19 pandemic for the three months ended September 30, 2022. Operating revenue rose to $13.98 billion from $9.15 billion a year earlier, an increase of $4.8 billion or 53%, driven by a 59% increase in passenger revenue to $11.46 billion on higher demand and capacity. Total operating expense rose 80% to $12.52 billion, led by a $1.77 billion increase in aircraft fuel and related taxes to $3.32 billion. Operating income fell to $1.46 billion from $2.21 billion, which the filing attributes to higher fuel costs and volume-related expenses, as well as the $1.8 billion of Payroll Support Program grant proceeds recognized in the prior-year quarter. Net income was $695 million, or $1.08 per diluted share, compared with $1.21 billion, or $1.89 per diluted share, a year earlier. For the nine months, operating revenue was $37.15 billion and net income was $489 million, or $0.76 per diluted share. Operating cash flow was $5.18 billion, and capital expenditures were $4.2 billion. Management reported $11.2 billion of liquidity at September 30, 2022, and debt and finance leases were reduced during the period, including a $1.5 billion cash tender offer for certain notes in August 2022. Total debt, net of unamortized discount and issue costs, was $21.52 billion, down from $25.08 billion at December 31, 2021. Management expects elevated jet fuel prices and continued fuel consumption growth in the December 2022 quarter, and expects non-fuel costs for full-year 2022 to be approximately 18% higher than 2019. The filing also notes the trans-American joint venture with LATAM received final regulatory approval in the September 2022 quarter, supporting a $1.2 billion indefinite-lived alliance intangible asset. Aircraft purchase commitments totaled $19.9 billion at September 30, 2022, including a July 2022 agreement for 100 Boeing 737-10 aircraft.

    Oct 13, 2022
  14. 2022-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2022

    Delta Air Lines, Inc. reported a sharp recovery in the June 2022 quarter, with total operating revenue of $13.82 billion versus $7.13 billion in the June 2021 quarter, and operating income of $1.52 billion compared with $816 million a year earlier. The June 2021 quarter had benefited from $1.5 billion of Payroll Support Program grant proceeds recognized as contra-expense. For the three months ended June 30, 2022, net income was $735 million, or $1.15 per diluted share, versus $652 million, or $1.02 per diluted share, in the prior-year quarter. For the six months, the company reported a net loss of $205 million, or $(0.32) per share, compared with a net loss of $525 million in the prior-year period. Passenger revenue rose to $10.96 billion for the quarter, and capacity (ASMs) increased 21% year over year, while the company now expects full-year 2022 capacity to be about 85% restored to 2019 levels. Cost pressures remained significant. Aircraft fuel and related taxes rose to $3.22 billion from $1.49 billion, driven by a 119% increase in the market price of jet fuel and a 25% increase in consumption. Management now expects full-year 2022 non-fuel costs to be approximately 17% higher than 2019, well above its initial 7% to 10% expectation. Fuel hedge losses were $239 million in the quarter. Non-operating expense rose to $486 million, largely due to a $221 million loss on investments, net, while interest expense fell to $269 million from $338 million as the company continued to reduce debt. Liquidity and balance sheet items improved. Liquidity was $13.6 billion as of June 30, 2022, and cash from operating activities was $4.31 billion for the six months. Total debt and finance leases declined to $23.07 billion from $25.08 billion at year-end 2021, and the company paid $839 million to repurchase notes early. Stockholders' equity was $3.81 billion, and the company expects liquidity of $5 billion to $6 billion by 2024. The filing also notes that air traffic liability rose to $9.66 billion from $6.23 billion at year-end, reflecting strong advance ticket sales.

    Jul 13, 2022
  15. 2022-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2022

    Delta Air Lines, Inc. reported an operating loss of $783 million for the three months ended March 31, 2022, an improvement from an operating loss of $1.398 billion in the March 2021 quarter. Total operating revenue rose to $9.348 billion from $4.150 billion, driven by a 151% increase in passenger revenue to $6.907 billion on higher demand and capacity, with available seat miles up 29%. The net loss was $940 million, or $1.48 per share, compared with a net loss of $1.177 billion, or $1.85 per share, a year earlier. The March 2021 quarter included $1.2 billion of Payroll Support Program grant proceeds recognized as contra-expense, which the company notes depresses year-over-year comparability. Cost pressures were significant. Aircraft fuel and related taxes rose to $2.092 billion from $1.017 billion, reflecting a 71% increase in the market price of jet fuel and a 38% increase in consumption. Management expects elevated jet fuel costs to continue through 2022. Air traffic liability increased about $2.8 billion during the quarter to $9.1 billion in total, which management says exceeds the normal seasonal build and reflects the restoration of the business. Operating cash flow was $1.771 billion and free cash flow was $197 million, as defined by the company. Balance sheet and liquidity remain central to the story. Total debt and finance leases stood at $25.8 billion principal, with $1.4 billion of debt repayments in the quarter, including $199 million of early repurchases. Liquidity was $12.8 billion at March 31, 2022, and management expects liquidity of $5 billion to $6 billion by 2024 as it reduces obligations. Stockholders' equity fell to $2.991 billion from $3.887 billion, and the company expects its 2022 capital expenditures to be approximately $6.0 billion, excluding the LaGuardia project.

    Apr 13, 2022
  16. 2021-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2021

    Delta Air Lines, Inc. reported a pre-tax income of $1.5 billion for the September 2021 quarter, which included a $1.8 billion benefit from recognition of the remaining PSP3 government grant. Net income for the quarter was $1.21 billion, or $1.89 diluted earnings per share, compared with a net loss of $5.38 billion in the September 2020 quarter. Operating revenue was $9.15 billion, up from $3.06 billion a year earlier but down 27% from the September 2019 quarter, as COVID-19 continued to depress demand, particularly for international travel. For the nine months, the company reported net income of $688 million on operating revenue of $20.43 billion. Liquidity totaled $15.8 billion at September 30, 2021, comprising cash, short-term investments and undrawn revolving credit facilities. Total debt and finance leases principal stood at $28.0 billion, and the company repaid about $1.6 billion of debt in the quarter, including roughly $1.3 billion of early repayments. Operating cash flow was $151 million in the quarter and free cash flow was negative $463 million, while the company reported $2.7 billion of operating cash inflow for the nine months. Management expects domestic demand to keep recovering while international demand, particularly in the Atlantic and Pacific regions, trails and remains uneven into early 2022. Capacity for the December 2021 quarter is planned about 20% below the December 2019 level. For investors, the quarter's profit was driven largely by one-time government grant recognition rather than core operations, and the company's adjusted pre-tax income was $216 million. Stockholders' equity improved to $2.6 billion from $1.5 billion at year-end 2020, and the company's debt reduction through early repayments reduced interest expense commitments. Ongoing risks include the pace of demand recovery, COVID-19 variant effects, and the obligations attached to the payroll support program loans and warrants.

    Oct 13, 2021
  17. 2021-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2021

    Delta Air Lines, Inc.'s Form 10-Q for the quarter ended June 30, 2021 shows a sharp recovery in the June 2021 quarter from the pandemic trough, though the company remained loss-making for the first half. Operating revenue for the three months ended June 30, 2021 was $7.13 billion, versus $1.47 billion in the June 2020 quarter, and the company reported operating income of $816 million compared with an operating loss of $4.82 billion a year earlier. Pre-tax income was $776 million, but this included a $1.5 billion benefit from recognizing payroll support program grants; the company's non-GAAP pre-tax loss, adjusted, was $881 million. Net income for the quarter was $652 million, or $1.02 per diluted share. For the six months, the company posted an operating loss of $582 million and a net loss of $525 million. Cash generation improved meaningfully. Operating activities provided $2.56 billion in the six months ended June 30, 2021, and free cash flow for the June 2021 quarter was $1.45 billion, a non-GAAP measure. Liquidity stood at $17.8 billion as of June 30, 2021. Total debt and finance leases were $29.3 billion principal, and the company repaid about $3.1 billion of debt in the first half, including early repayment of a $1.5 billion secured term loan and roughly $450 million of EETCs. Stockholders' equity was $1.28 billion at quarter end, down from $1.53 billion at December 31, 2020, and accumulated deficit was $953 million. Management stated that domestic demand is recovering and that domestic capacity for the September 2021 quarter is planned at about 15% below September 2019 levels, while international capacity is planned about 50% below. Management expects international demand recovery to remain uneven, with the Latin America region recovering most quickly. The filing also describes payroll support program receipts under the CARES Act extensions and the American Rescue Plan Act, a $15.2 billion aircraft purchase commitment, and ongoing investments including the Wheels Up and CLEAR stakes.

    Jul 14, 2021
  18. 2021-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2021

    Delta Air Lines, Inc. reported a pre-tax loss of $1.5 billion and a net loss of $1.177 billion for the three months ended March 31, 2021, compared with a net loss of $534 million in the March 2020 quarter. The result includes a $1.2 billion benefit from recognizing a portion of the first payroll support program extension grant as a contra-expense. Total operating revenue fell to $4.15 billion from $8.59 billion, with passenger revenue down 64% year over year on 32% lower capacity. Management said the company saw improving demand in the latter half of the quarter, with passenger revenue in March 2021 approximately 50% higher than February 2021, and it plans for domestic capacity about 20% lower and international capacity about 50% lower in the June 2021 quarter than in the June 2019 quarter. Liquidity at March 31, 2021 was $16.6 billion, comprising cash, cash equivalents, short-term investments and undrawn revolving credit availability. Operating activities provided $691 million, including $2.0 billion from the grant, and free cash flow was $710 million as defined by the company. Total debt and finance leases principal stood at $29.3 billion. During the quarter the company repaid approximately $1.8 billion of debt, including the early repayment of a $1.5 billion term loan, and received $2.9 billion in payroll support payments. Stockholders' equity fell to $482 million from $1.534 billion at year-end 2020, reflecting the net loss. The company expects a second payroll support extension of approximately $2.7 billion, including a $1.9 billion grant, and expects interest expense of approximately $350 million in the June 2021 quarter. It also made a voluntary $1.0 billion contribution to its pension plans in April 2021, and reports that roughly 18,000 employees participated in voluntary separation programs in the second half of 2020.

    Apr 15, 2021
  19. 2020-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2020

    Delta Air Lines, Inc. reported a sharply weaker third quarter of 2020 as COVID-19 pandemic demand declines drove operating revenue down to $3.06 billion from $12.56 billion a year earlier, a 76% decrease. The company recorded an operating loss of $6.39 billion and a net loss of $5.38 billion for the September 2020 quarter, including $5.35 billion of restructuring charges, largely for a voluntary early retirement and separation program and fleet impairments. Nine-month results show a net loss of $11.63 billion on operating revenue of $13.12 billion. Capacity was reduced about 60% in the quarter, roughly 40% of the fleet was parked, and the company guided to further capacity declines of 40-45% in the December 2020 quarter. Liquidity was supported by roughly $27.0 billion of financing completed in the nine months, including $9.0 billion of notes and a term loan secured by SkyMiles assets, $1.5 billion of NYTDC bonds, and $5.6 billion received under the CARES Act payroll support program. Liquidity was $21.6 billion at September 30, 2020, and cash and cash equivalents were $16.48 billion. Total debt and finance leases reached $35.1 billion in principal, up from $10.1 billion of debt at year-end 2019. Operating cash flow used $2.5 billion in the nine months, and the company expects negative operating cash flows through the rest of 2020. Share repurchases and dividends are suspended, and restrictions on both run through September 2021 under the CARES Act and certain debt agreements. Investors should note the significant write-downs of strategic airline investments, including LATAM and Grupo Aeroméxico, which filed for Chapter 11 bankruptcy, and the Virgin Atlantic investment, now carried at zero basis. Stockholders' equity fell to $3.36 billion from $15.36 billion at year-end 2019. The company also disclosed a potential furlough of approximately 1,700 pilots after October 31, 2020, subject to ongoing negotiations with ALPA.

    Oct 14, 2020
  20. 2020-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2020

    Delta Air Lines' 10-Q for the quarter ended June 30, 2020 shows the severe impact of COVID-19 on its business. Operating revenue for the June 2020 quarter was $1.47 billion, down from $12.54 billion in the prior-year quarter, and the company reported an operating loss of $4.82 billion and a net loss of $5.72 billion, or $(9.01) per diluted share. For the six months, operating revenue was $10.06 billion against $23.01 billion a year earlier, with a net loss of $6.25 billion. Total system capacity in the June quarter was reduced 85% year over year, and the company has parked roughly 50% of its fleet, with the September 2020 quarter expected to be down about 60%. To bolster liquidity, Delta raised substantial financing and ended the quarter with $15.7 billion of liquidity, comprising cash, short-term investments and available revolver capacity. Cash and cash equivalents rose to $11.37 billion from $2.88 billion at year-end 2019, while total debt and finance leases increased to $24.7 billion principal amount. Financing included $3.5 billion of senior secured notes, a $1.5 billion term loan, $1.3 billion of unsecured notes, a $3.0 billion 364-day secured term loan, $2.8 billion of sale-leaseback transactions and $4.9 billion received under the CARES Act payroll support program. Operating cash flow for the six months was only $68 million, and the company suspended share repurchases and dividends. The filing also records significant write-downs, including $2.5 billion of restructuring charges, largely fleet impairments tied to retiring the 777, MD-90, 737-700 and certain 767-300ER and A320 aircraft, and $2.06 billion of impairments and equity method losses, mainly related to LATAM and Grupo Aeroméxico after their Chapter 11 filings. Management states that the company expects to remain in compliance with its debt covenants and to meet liquidity needs for the next twelve months, while the length and severity of the demand decline remain uncertain.

    Jul 15, 2020
  21. 2020-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2020

    Delta Air Lines, Inc. reported a net loss of $534 million, or $0.84 per diluted share, for the three months ended March 31, 2020, compared with net income of $730 million, or $1.09 per diluted share, in the prior-year quarter. Total operating revenue fell 18.0% to $8.59 billion from $10.47 billion, as the COVID-19 pandemic caused an abrupt drop in demand beginning in the second half of March. Operating loss was $410 million versus operating income of $1.02 billion a year earlier, and the pre-tax loss was $607 million. The filing states that the company expects the adverse impact to grow in the June 2020 quarter, with system capacity planned to be down approximately 85% versus the June 2019 quarter, and that about 400 aircraft were temporarily parked as of March 31, 2020, with more than 650 expected to be parked by the end of June. Liquidity was the central focus of the filing. Cash and cash equivalents rose to $5.97 billion from $2.88 billion at year-end 2019, driven by $3.0 billion drawn on revolving credit facilities, a $2.7 billion secured term loan, and other financings. Operating cash flow was $358 million, and free cash flow was negative $161 million. Delta stated it has at least $15 billion of unencumbered assets and $6.0 billion of unrestricted liquidity. Total debt and finance leases rose to $15.84 billion from $10.11 billion. The company suspended share repurchases and dividends, reduced planned 2020 capital expenditures by approximately $3.5 billion, and was granted $5.4 billion in CARES Act payroll support, of which $2.7 billion was received on April 20, 2020. Standard & Poor's downgraded the company to BB in late March 2020, and Fitch downgraded it to BB+ in early April 2020. Investors should note the filing's disclosures on covenant risk and strategic investments. Delta states that its primary credit facility requires a minimum fixed charge coverage ratio and a minimum asset coverage ratio, and that earnings reductions could result in a breach within the next year. The company also acquired a 20% stake in LATAM for $1.9 billion in January 2020, and recorded $112 million in investment losses in the quarter. Management stated that it is unable to predict how long these conditions will persist.

    Apr 22, 2020
  22. 2019-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2019

    Delta Air Lines, Inc. reported third-quarter 2019 results in this Form 10-Q for the period ended September 30, 2019. Operating revenue rose to $12.56 billion for the three months, up $607 million, or 5.1%, from $11.95 billion a year earlier, driven by passenger revenue growth in all components. Operating income increased to $2.07 billion from $1.65 billion, and net income was $1.50 billion, or $2.31 diluted earnings per share, compared with $1.32 billion, or $1.92 per share, in the prior-year quarter. Management attributed the higher pre-tax income to premium product ticket revenue, loyalty program growth and maintenance, repair and overhaul revenue, partly offset by higher employee costs and weather-related disruptions. Total non-operating expense was $124 million, primarily reflecting unrealized losses on equity investments. For the nine months, operating revenue was $35.57 billion and net income was $3.67 billion, or $5.59 diluted earnings per share. Free cash flow for the September quarter was $1.43 billion, compared with $655 million a year earlier. As of September 30, 2019, the company reported $5.0 billion in unrestricted liquidity, including $1.9 billion in cash and cash equivalents and $3.1 billion in undrawn revolving credit facilities. The company returned $2.5 billion to shareholders in the nine months, including $1.8 billion of share repurchases, and paid a quarterly dividend of $0.4025 per share. The filing also highlights strategic activity, including a planned strategic alliance with LATAM Airlines Group S.A., under which Delta plans a tender offer for up to 20% of LATAM common shares at $16 per share, subject to regulatory approval, and a $350 million investment to support the alliance. Delta also accelerated the retirement of its MD-90 fleet to the end of 2022, which resulted in $93 million of accelerated depreciation in the nine months. Aircraft purchase commitments totaled $13.9 billion at September 30, 2019.

    Oct 10, 2019
  23. 2019-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2019

    Delta Air Lines, Inc. reported pre-tax income of $1.9 billion for the June 2019 quarter, up $521 million from the prior year quarter, on operating revenue of $12.54 billion (up $761 million, or 6.5%). Net income was $1.44 billion, or $2.21 diluted earnings per share, versus $1.04 billion, or $1.49 per share, a year earlier. Operating income rose to $2.13 billion from $1.68 billion. Total operating expense increased $317 million, or 3.1%, with CASM falling 1.5% to 14.51 cents, helped by lower fuel costs and the One Delta efficiency initiative. Non-operating expense narrowed to $221 million from $298 million, mainly because unrealized losses on equity investments declined. For the six months ended June 30, 2019, net income was $2.17 billion and operating cash flow was $5.22 billion, versus $4.27 billion a year earlier. Cash and cash equivalents were $2.01 billion at June 30, 2019, and the company reported $5.1 billion of unrestricted liquidity, including $3.1 billion of undrawn revolving credit facilities. Capital expenditures were $2.9 billion for the six months, and the company returned $2.1 billion to shareholders through share repurchases of $1.6 billion and dividends of $461 million. Total debt was $9.30 billion on a carrying basis, and stockholders' equity rose to $13.96 billion. The filing also discloses an accelerated retirement of the MD-90 fleet, with 31 aircraft retired in the June 2019 quarter and fleet retirement completed by the end of 2022, resulting in $91 million of accelerated depreciation. Aircraft purchase commitments totaled $14.1 billion at June 30, 2019. Delta reported that its Aeroméxico, Virgin Atlantic, Air France-KLM, China Eastern and Korean (Hanjin-KAL) investments were recorded at specified values, and the company's quarterly dividend was raised to $0.4025 per share.

    Jul 11, 2019
  24. 2019-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2019

    Delta Air Lines, Inc. reported net income of $730 million, or $1.09 per diluted share, for the three months ended March 31, 2019, compared with $557 million, or $0.79 per diluted share, a year earlier. Operating revenue rose 5.1% to $10.47 billion, driven by passenger revenue growth of $489 million (5.6%), with premium product ticket revenue up 7.8% and an increase in other revenue tied to amended American Express agreements. Total operating expense increased 3.6% to $9.45 billion, while CASM declined 1.4% to 15.14 cents. Pre-tax income was $946 million, and pre-tax income, adjusted, a non-GAAP measure, was $832 million. Fuel expense rose $122 million on a 3% increase in consumption and reduced refinery profitability. Liquidity remained substantial, with $4.9 billion in unrestricted liquidity at quarter end, including $1.9 billion in cash and cash equivalents and $3.0 billion in undrawn revolving credit facilities. Delta returned $1.6 billion to shareholders during the quarter, including $1.3 billion of share repurchases and $233 million of dividends, and it took on a $1 billion unsecured term loan in February 2019, of which $300 million was repaid in March. Total debt rose to $10.39 billion from $9.37 billion at year-end 2018. Aircraft purchase commitments totaled $15.1 billion, and the company expects 2019 investments of $4.7 billion. The filing also notes that the amended American Express agreements are expected to generate incremental revenue of approximately $500 million in 2019, and that the company projects a 2019 annual effective tax rate of 23% to 24%. Ernst & Young LLP completed a review of the interim financial statements with no material modifications identified.

    Apr 10, 2019
  25. 2018-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2018

    Delta Air Lines, Inc. reported pre-tax income of $1.7 billion for the three months ended September 30, 2018, a $102 million decrease from the prior-year quarter, primarily due to higher fuel expense partly offset by increased passenger revenue. Net income was $1.31 billion for the quarter ($1.91 diluted EPS) versus $1.16 billion ($1.61 diluted EPS) a year earlier. Operating revenue rose 8.1% to $11.95 billion on 3.9% higher capacity, while total operating expense increased 11.6% to $10.31 billion, with aircraft fuel and related taxes up $713 million (39.9%) on an approximately 36% increase in the market price per gallon. For the nine months, net income was $2.88 billion ($4.14 diluted EPS) compared with $2.91 billion ($4.00 diluted EPS), and operating revenue grew 9.0% to $33.70 billion. Balance sheet and liquidity remain substantial. As of September 30, 2018, the company reported nearly $5.1 billion in unrestricted liquidity, including $1.9 billion in cash and short-term investments and $3.2 billion in undrawn revolving credit facilities. Total debt at par was $8.86 billion, up from $8.54 billion at December 31, 2017, following $1.6 billion of unsecured notes and $1.4 billion of NYTDC special facilities bonds issued in the June 2018 quarter, which were used largely to repay term loans. Operating cash flow for the nine months was $5.65 billion, versus $3.13 billion a year earlier, and capital expenditures were $3.8 billion. The company returned $1.9 billion to shareholders in the period through $1.25 billion of share repurchases and $670 million of dividends. Management highlighted unit revenue growth in three of four geographic regions, strong business-cabin ticket revenue (up 19.2% in the quarter), and a planned turnaround at the Monroe refinery expected to last 50 to 60 days. The filing also notes adoption of the ASU 2014-09 revenue standard on a full retrospective basis, which reclassified about $2 billion of annual revenue into passenger revenue and increased the frequent flyer liability by $2.2 billion at December 31, 2017. The company will adopt the new lease standard (ASU 2016-02), which the filing states will have a material impact on the balance sheet.

    Oct 11, 2018
  26. 2018-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2018

    Delta Air Lines, Inc. reported pre-tax income of $1.37 billion and net income of $1.03 billion for the three months ended June 30, 2018, compared with $1.83 billion pre-tax and $1.19 billion net income in the prior-year quarter. Operating income was $1.68 billion versus $1.98 billion a year earlier. The filing attributes the decline primarily to higher fuel expense and net unrealized losses of $238 million on equity investments in GOL, China Eastern and Air France-KLM, partially offset by higher passenger revenue. Total operating revenue rose 9.6% to $11.78 billion, with passenger revenue up 8.0% and PRASM up 4.4% on 3.5% higher capacity. Aircraft fuel and related taxes increased 38.8% to $2.34 billion, driven by an approximately 38% increase in the market price per gallon. For the six months ended June 30, 2018, net income was $1.57 billion, diluted EPS was $2.24, and cash flow from operations was $4.15 billion, up from $1.54 billion. Liquidity was $5.5 billion at June 30, 2018, including $3.1 billion in undrawn revolving credit facilities. During the June 2018 quarter the company issued $1.6 billion of unsecured notes, entered a $2.65 billion unsecured revolving credit facility, and the New York Transportation Development Corporation issued $1.4 billion of bonds to fund LaGuardia terminal construction. Long-term debt rose to $8.26 billion from $6.30 billion at year-end 2017. Shareholder returns continued, with $925 million of share repurchases in the six months and a June quarterly dividend of $0.305 per share. The company's total debt and capital leases were $9.9 billion at June 30, 2018, and it had $16.4 billion of aircraft purchase commitments. The filing also notes that the company adopted the revenue recognition standard retrospectively, which reclassified approximately $2 billion of annual revenue into passenger revenue and increased the frequent flyer liability by $2.2 billion at December 31, 2017.

    Jul 12, 2018
  27. 2018-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2018

    Delta Air Lines, Inc. reported net income of $547 million for the three months ended March 31, 2018, compared with $561 million in the prior-year quarter, and diluted earnings per share of $0.77, flat year over year. Pre-tax income was $718 million, a $131 million decrease, primarily reflecting higher salaries and related costs and fuel expense, partially offset by increased passenger revenue. Pre-tax income adjusted for special items (a non-GAAP measure) was $676 million, down $104 million. Total operating revenue rose 9.5% to $9.97 billion on 2.7% higher capacity, with TRASM up 6.6%, while consolidated CASM increased 9.6% to 15.35 cents. Cash flow and liquidity improved markedly. Net cash provided by operating activities was $1.34 billion, compared with negative $830 million in the prior-year quarter, which had included incremental pension contributions. Delta ended the quarter with $4.4 billion in unrestricted liquidity, including $2.0 billion in cash and short-term investments and $2.4 billion in undrawn revolving credit facilities. Capital expenditures were $1.3 billion, and the company returned $542 million to shareholders through share repurchases of $325 million and dividends of $217 million. Principal debt and capital leases declined to $8.7 billion from $8.9 billion at December 31, 2017. The filing also discloses the adoption of the revenue recognition standard (ASU 2014-09) on a full retrospective basis, which reclassified about $2 billion of annual revenue into passenger revenue and increased the frequent flyer liability by $2.2 billion at December 31, 2017. The filing discloses a cybersecurity incident at a third-party chat vendor that potentially exposed payment card data for several hundred thousand delta.com customers, with remedial and legal costs expected to be incurred.

    Apr 12, 2018
  28. 2017-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2017

    Delta Air Lines, Inc. reported pre-tax income of $1.8 billion for the three months ended September 30, 2017, a $95 million decrease from the prior year period, as higher salaries and related costs, fuel expense and depreciation outpaced increased passenger and other revenue. Net income for the quarter was $1,178 million, or $1.64 per diluted share, compared with $1,259 million, or $1.69 per diluted share, a year earlier. Operating revenue rose $577 million, or 5.5%, to $11.06 billion, while total operating expense increased $707 million, or 8.3%, to $9.22 billion. For the nine months, net income was $3.01 billion, or $4.13 per diluted share, versus $3.75 billion, or $4.92, in the prior year period. Cash flow and balance sheet activity was dominated by pension funding and capital returns. Net cash from operating activities fell to $3.23 billion from $6.08 billion, mainly due to incremental pension contributions partially funded by a $2.0 billion unsecured notes offering. The company ended the quarter with $4.9 billion in unrestricted liquidity, and it repurchased $1.4 billion of stock during the nine months while paying $516 million in cash dividends. Standard & Poor's raised Delta's corporate rating to BBB-, giving it investment-grade ratings from all three major agencies. Management also disclosed a planned $3.3 billion LaGuardia terminal project, $13.1 billion in aircraft purchase commitments, and equity investments in Grupo Aeroméxico (now 49%) and Air France-KLM (10%), the latter acquired after the quarter. Key forward-looking items include a change to the Financial Accounting Standards Board's revenue recognition standard effective January 1, 2018, under which roughly $2 billion of annual ancillary revenue is expected to move from other revenue into passenger revenue. Management also expects the new standard to significantly increase the frequent flyer liability. The company projects a 2017 annual effective tax rate of 34% to 35% and 2017 investments of $3.5 billion to $4.0 billion. Investors should note the fuel-cost pressure visible in the quarter, the pension-driven cash flow decline, and the accounting changes ahead.

    Oct 11, 2017
  29. 2017-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2017

    Delta Air Lines, Inc. reported pre-tax income of $1.9 billion for the June 2017 quarter, a $459 million decrease from the prior year period, as higher operating expenses, including salaries and related costs and fuel, were partially offset by higher operating revenue. Operating revenue rose $344 million, or 3.3%, to $10.79 billion, with passenger revenue up 2.9% on 0.4% higher capacity. Operating expense increased $739 million, or 9.2%, to $8.76 billion, and consolidated CASM rose 8.8% to 13.23 cents. Net income for the quarter was $1.22 billion, or $1.68 per diluted share, compared with $1.55 billion, or $2.03 per diluted share, a year earlier. For the six months ended June 30, 2017, net income was $1.83 billion, or $2.50 per diluted share, versus $2.49 billion, or $3.23 per diluted share, in the prior-year period. Operating cash flow fell to $1.59 billion from $4.23 billion, primarily due to incremental pension contributions, of which $2.0 billion was funded through a debt issuance. The company contributed $3.2 billion to its qualified defined benefit pension plans in the first half of 2017. Total debt and capital leases principal rose to $9.1 billion, and unrestricted liquidity was $5.5 billion at June 30, 2017. The filing also highlights strategic moves, including a $622 million tender offer that raised Delta's stake in Grupo Aeroméxico to 36%, with derivative contracts expected to take it to 49%. Delta agreed to a trans-Pacific joint venture with Korean Air, and it placed an expanded A321-200 order for 40 aircraft while deferring 10 A350-900 deliveries. Shareholder returns included $800 million in share repurchases and $297 million in cash dividends during the first half. Management expects an annual effective tax rate between 34% and 35% for 2017.

    Jul 13, 2017
  30. 2017-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2017

    Delta Air Lines, Inc. reported a first-quarter 2017 (three months ended March 31, 2017) net income of $603 million, or $0.82 per diluted share, compared with $946 million, or $1.21 per diluted share, in the prior-year quarter. Operating revenue was $9.148 billion, down 1.1% from $9.251 billion, while total operating expense rose 5.0% to $8.095 billion, reducing operating income to $1.053 billion from $1.540 billion. Management attributed the lower pre-tax income of $915 million to weakness in domestic close-in yields, international yield declines in the Atlantic and Pacific regions, and higher salaries and related costs from contractual pilot pay increases, regional carrier escalations and aircraft maintenance timing, partly offset by lower profit sharing expense. The balance sheet and cash flow were heavily shaped by pension funding. Delta issued $2.0 billion of unsecured notes and used the proceeds, along with existing cash, to contribute $2.6 billion to its qualified defined benefit pension plans, which produced negative operating cash flow of $801 million for the quarter. Cash and cash equivalents fell to $1.907 billion from $2.762 billion at year-end, and long-term debt and capital leases rose to $8.187 billion from $6.201 billion. Total unrestricted liquidity was $5.1 billion, and pension and postretirement liabilities declined to $10.291 billion from $13.378 billion. Delta also increased its stake in Grupo Aeromexico to 36% through a $622 million tender offer, moving that investment to the equity method, and repurchased $200 million of common stock during the quarter. The company expects to generate positive operating cash flow for the rest of 2017 and projects an annual effective tax rate of 34% to 35%.

    Apr 12, 2017
  31. 2016-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2016

    Delta Air Lines, Inc. reported third-quarter 2016 pre-tax income of $1.9 billion, a $172 million decrease from the prior-year quarter, as lower passenger revenue, higher salaries and related costs, and costs tied to an August 8, 2016 technology outage offset the benefit of lower fuel prices. Net income was $1.26 billion for the quarter ($1.69 diluted EPS) versus $1.32 billion ($1.65 diluted EPS) a year earlier, and $3.75 billion ($4.92 diluted EPS) for the nine months. Operating revenue fell 5.6% to $10.48 billion on a 6.8% decline in passenger revenue per available seat mile, while operating expense fell 4.3% to $8.51 billion, driven largely by a 21.8% drop in aircraft fuel and related taxes. The company attributed the outage to a corporate data center losing power, which led to roughly 2,300 canceled flights over three days and an estimated $150 million pre-tax impact. Liquidity remained substantial, with $5.6 billion in unrestricted liquidity at September 30, 2016, including $3.2 billion in cash and short-term investments and $2.4 billion in undrawn revolving credit facilities. Operating cash flow was $6.08 billion for the nine months, while capital expenditures were $2.6 billion and shareholder returns totaled $2.7 billion, including $2.3 billion of share repurchases. Total debt and capital leases declined to $7.7 billion from $8.9 billion a year earlier, and the company's ratings were Baa3 (Moody's), BBB- (Fitch) and BB+ (S&P). Management also reached a tentative agreement in principle with the Air Line Pilots Association, which, if ratified, would give pilots an 18% pay increase retroactive to January 1, 2016.

    Oct 13, 2016
  32. 2016-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2016

    Delta Air Lines, Inc. reported operating revenue of $10.45 billion for the three months ended June 30, 2016, down $260 million, or 2.4%, from $10.71 billion a year earlier, and operating income of $2.42 billion versus $2.47 billion. Net income was $1.55 billion, or $2.03 per diluted share, compared with $1.49 billion, or $1.83 per diluted share, in the prior-year quarter. Passenger revenue per available seat mile fell 4.9% on 3.2% higher capacity, reflecting weak domestic close-in yields, U.S. dollar strength in international markets, and supply-demand imbalances in the Atlantic and China. Lower fuel prices were the main offset: total fuel expense fell $305 million, or 17.4%, as the average price per gallon dropped to $1.38 from $1.70. For the six months ended June 30, 2016, net income was $2.49 billion, or $3.23 per diluted share, versus $2.23 billion, or $2.72, a year earlier. The company generated $4.23 billion of operating cash flow and ended the period with $5.4 billion of unrestricted liquidity, including $3.0 billion of cash and short-term investments and $2.4 billion of undrawn revolving credit facilities. Capital expenditures were $1.9 billion for the half, and the company returned $2.0 billion to shareholders through $1.8 billion of share repurchases and $210 million of dividends. Total debt and capital leases stood at $7.9 billion at June 30, 2016, and the board approved a 50% increase in the quarterly dividend to $0.2025 per share beginning in the September 2016 quarter. Key risks disclosed include the outcome of the First Bag Fee antitrust litigation, where the court granted class certification on July 12, 2016, and the company's exposure to fuel price changes, now largely locked in through its 2016 and 2017 hedge positions. The filing also notes uncertainty from the U.K.'s likely exit from the European Union, Brazilian economic challenges affecting GOL, and the bankruptcy of Republic Airways, for which Delta provided a debtor-in-possession credit agreement of up to $75 million.

    Jul 15, 2016
  33. 2016-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2016

    Delta Air Lines, Inc. reported net income of $946 million, or $1.21 diluted earnings per share, for the three months ended March 31, 2016, compared with $746 million, or $0.90 per diluted share, in the prior-year quarter. Operating revenue fell 1.5% to $9.25 billion, driven by U.S. dollar strength on international sales, while operating expense declined 3.5% to $7.71 billion, mainly because aircraft fuel and related taxes fell $608 million to $1.23 billion. Operating income rose to $1.54 billion from $1.40 billion, and pre-tax income adjusted for special items (a non-GAAP measure) was $1.56 billion versus $594 million a year earlier. Average fuel price per gallon was $1.50 versus $2.29 in the prior year. The company continued to reduce leverage and return capital. Principal debt and capital leases declined to $8.6 billion from $9.6 billion a year earlier, and Delta repurchased 16.3 million shares for $775 million during the quarter. Cash dividends declared rose to $0.135 per share from $0.09. Unrestricted liquidity was $5.2 billion at quarter end, and Delta made $1.2 billion of contributions to its qualified defined benefit pension plans, including $350 million in treasury stock. Management said it expects to invest approximately $3 billion in 2016 and that it does not expect to pay cash federal income taxes before 2018, supported by approximately $8.5 billion of U.S. federal net operating loss carryforwards. Risks noted in the filing include a 14.5% base pay increase in the December 2015 quarter, which drove higher salaries, a $274 million fuel hedge loss, a $28 million refinery segment loss, and exposure to weaker Latin American and Pacific revenues. Fuel hedging was largely neutralized, with net settlements locked in at approximately $725 million for 2016 and $300 million for 2017. Delta also reported $454 million of margin posted to hedge counterparties and a $25 million fair value of its GOL investment after an $81 million AOCI loss.

    Apr 14, 2016
  34. 2015-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2015

    Delta Air Lines, Inc. reported pre-tax income of $2.07 billion for the three months ended September 30, 2015, compared with $579 million in the prior-year quarter, and net income of $1.32 billion ($1.65 diluted EPS) versus $357 million ($0.42 diluted EPS). For the nine months, net income was $3.55 billion ($4.37 diluted EPS) versus $1.37 billion ($1.61). Management attributes the improvement predominantly to lower fuel prices and a focus on managing non-fuel costs. Operating revenue fell 0.6% in the quarter to $11.11 billion, with passenger revenue down 1.9% on a strong U.S. dollar and weaker international yields, while other revenue rose 13.6% on loyalty and refinery sales. Total operating expense fell 14% to $8.89 billion, with aircraft fuel and related taxes down 38% to $1.82 billion. Non-fuel unit costs (CASM-Ex) rose 0.9% to 8.74 cents, reflecting pay rate increases. Liquidity and capital returns were central in the period. Cash and cash equivalents plus short-term investments totaled $3.8 billion, with $2.2 billion in undrawn revolving credit facilities, for total unrestricted liquidity of $6.0 billion. Operating cash flow for the nine months was $6.45 billion, and the company repurchased $1.8 billion of stock and paid $254 million in dividends. Total debt and capital leases principal declined to $8.9 billion from $9.9 billion at year-end 2014. In August 2015 Delta refinanced its secured facilities with a $1.5 billion revolver and a $500 million term loan, plus $500 million of 2015-1 EETC certificates. Strategic investments included $450 million for a 3.5% stake in China Eastern and $50 million in GOL's parent, and a derivative position tied to Aeroméxico's parent. The filing also notes a $13.0 billion aircraft purchase commitment, a September 2015 voluntary retirement program whose charge will be recorded in the December 2015 quarter, and a 14.5% base pay increase effective December 1, 2015. Net fuel hedge losses were $563 million for the nine months, and the company posted $381 million of margin to hedge counterparties as of September 30, 2015.

    Oct 14, 2015
  35. 2015-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2015

    Delta Air Lines, Inc. reported pre-tax income of $2.4 billion for the quarter ended June 30, 2015, up $1.1 billion from the prior-year quarter, predominantly due to lower fuel prices and consistent cost execution. Net income was $1.485 billion, or $1.83 per diluted share, versus $801 million ($0.94) a year earlier. Pre-tax income adjusted for special items rose $202 million, or 14%, to $1.6 billion, with special items primarily including $720 million of unfavorable mark-to-market adjustments on fuel hedges recorded in periods other than the settlement period. Operating revenue rose 1% to $10.7 billion, with passenger revenue down $127 million (1%) on a 3.9% lower passenger mile yield, while total operating expense fell $809 million (9%) to $8.2 billion, driven by lower fuel prices. For the six months ended June 30, 2015, net income was $2.231 billion ($2.72 per diluted share) and the company generated $4.4 billion in operating cash flow. Unrestricted liquidity was $5.7 billion at June 30, 2015, including $3.8 billion in cash and short-term investments and $2.0 billion in undrawn revolving credit facilities. Total debt and capital leases declined to $9.3 billion from $9.9 billion at December 31, 2014. The company repurchased $1.4 billion of stock in the first half, completed its 2014 $2 billion authorization, and approved a new $5 billion repurchase program through December 31, 2017, along with a quarterly dividend increase to $0.135 per share beginning in the September 2015 quarter. The filing also highlights ongoing fleet restructuring, including the removal of thirteen 50-seat regional aircraft in the quarter, and a refinery segment that reported a $90 million profit for the quarter. Future aircraft purchase commitments totaled approximately $13.0 billion at June 30, 2015, and the company expects roughly $2.8 billion of 2015 investments funded from operating cash flows. Management also noted a 2015 expected annual effective tax rate of about 38% and approximately $11 billion of U.S. federal pre-tax net operating loss carryforwards.

    Jul 15, 2015
  36. 2015-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2015

    Delta Air Lines, Inc. reported a first-quarter 2015 (three months ended March 31, 2015) pre-tax income of $1.186 billion and net income of $746 million, or $0.90 per diluted share, compared with net income of $213 million, or $0.25 per diluted share, in the prior-year quarter. Operating income rose to $1.398 billion from $620 million on total operating revenue of $9.388 billion, up from $8.916 billion, while total operating expense fell to $7.990 billion from $8.296 billion. Management attributed the improvement to higher passenger revenue and lower fuel prices. Pre-tax income adjusted for special items increased to $594 million from $444 million. Special items included $589 million of unfavorable mark-to-market adjustments and settlements on fuel hedges, including $302 million paid to early settle contracts that were in a loss position. Aircraft fuel and related taxes fell to $1.835 billion from $2.226 billion, with average price per gallon of $2.29 versus $3.06 a year earlier. The balance sheet and cash flows improved. Net cash from operating activities was $1.636 billion versus $951 million, and cash and cash equivalents were $2.122 billion at March 31, 2015. Total debt at par value declined to $9.261 billion from $9.469 billion at December 31, 2014. Management reported $5.5 billion of unrestricted liquidity, including $1.9 billion in undrawn revolving credit facilities. During the quarter the company repurchased 9.3 million shares for $425 million and paid $75 million in dividends. Total stockholders' equity rose to $9.046 billion from $8.813 billion. Management expects 2015 capital investments of approximately $2.8 billion, funded from operating cash flow. Key risks noted in the filing include fuel price volatility, with hedge margin postings of $383 million at quarter end, and $13.6 billion of future aircraft purchase commitments. The company also disclosed that $93 million of unrestricted cash tied to Venezuelan ticket sales remained subject to repatriation limits. Management projects a 2015 effective tax rate of about 38%, and it expects to pay no federal income taxes for the next few years, supported by roughly $12 billion of federal net operating loss carryforwards.

    Apr 15, 2015
  37. 2014-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2014

    Delta Air Lines, Inc. reported pre-tax income of $579 million for the quarter ended September 30, 2014, down $784 million from the prior-year quarter, as the company recorded $1.1 billion of special items. Those items were $570 million of restructuring and other items, primarily related to the early retirement of B-747-400 aircraft, and $347 million of unfavorable mark-to-market adjustments on fuel hedges. Excluding these charges, pre-tax income rose $431 million, or 36%, to $1.6 billion, driven by higher passenger revenue, lower market fuel prices and flat non-fuel unit costs. Net income for the quarter was $357 million, or $0.42 per diluted share, compared with $1,369 million, or $1.59 per diluted share, a year earlier. Total operating revenue rose 7% to $11.18 billion, with passenger revenue up 6% on 4% higher traffic and 3% higher capacity. For the nine months ended September 30, 2014, net income was $1.37 billion, or $1.61 per diluted share, and the company generated $4.37 billion of cash from operating activities. Total debt and capital leases fell to $10.1 billion, a $1.2 billion reduction since December 31, 2013. Delta ended the quarter with $6.4 billion of unrestricted liquidity, consisting of $4.4 billion in cash, cash equivalents and short-term investments and $2.0 billion in undrawn revolving credit facilities. The company returned $776 million to shareholders in the nine months through dividends and share repurchases, and its quarterly dividend was raised 50% to $0.09 per share. The filing also highlights ongoing fleet restructuring, including the retirement of 16 B-747-400 aircraft over four years, with future 50-seat regional fleet charges estimated at $50 million to $150 million. Management projects an annual effective tax rate of about 38% for 2014 and expects it will not pay cash federal income taxes for several years, given over $13 billion of U.S. federal pre-tax net operating loss carryforwards.

    Oct 24, 2014
  38. 2014-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2014

    Delta Air Lines, Inc. reported pre-tax income of $1.3 billion for the quarter ended June 30, 2014, an improvement of $612 million over the prior-year quarter, with net income of $801 million, or $0.94 per diluted share, compared with $685 million, or $0.80 per diluted share, a year earlier. Total operating revenue rose 9% to $10.62 billion, driven by passenger revenue of $9.27 billion (up $772 million, with PRASM up 6%) and other revenue up 15%. Total operating expense increased 3% to $9.04 billion, with higher profit sharing ($340 million versus $118 million) and salaries and related costs partly offset by lower fuel expense. Consolidated CASM decreased 0.4% to 14.63 cents, and CASM-Ex was flat at 8.98 cents. For the six months ended June 30, 2014, net income was $1.01 billion, or $1.19 per diluted share, and operating cash flow was $3.0 billion. Management used that cash to reduce debt and capital lease obligations by $1.5 billion, fund $1.1 billion of capital expenditures, and return $451 million to shareholders. Total debt and capital leases stood at $10.3 billion, and unrestricted liquidity was $6.0 billion, including $1.9 billion in undrawn revolving credit facilities. Loss on extinguishment of debt was $111 million in the quarter and $129 million for the six months. The filing also highlights capital return plans: the quarterly dividend will increase 50% to $0.09 per share beginning in the September 2014 quarter, and a new $2 billion share repurchase program runs through December 31, 2016. Management expects the two programs to return an additional $2.75 billion through 2016. Disclosed risks include Venezuelan currency controls, which leave $194 million of cash at risk, and a decision to significantly reduce service to Venezuela beginning August 1, 2014. The company also noted that a multi-year product exchange agreement with BP Products North America was terminated early, effective July 1, 2014.

    Jul 24, 2014
  39. 2014-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2014

    Delta Air Lines, Inc. reported net income of $213 million, or $0.25 per diluted share, for the three months ended March 31, 2014, compared with $7 million, or $0.01 per share, in the same period of 2013. Operating income rose to $620 million from $222 million, and total operating revenue increased 5% to $8.92 billion. Management attributed the improvement to passenger revenue growth of $357 million despite lower fuel prices, with unit revenues (PRASM) up 3% and fuel price per gallon down 15 cents to $3.06. The company cited $55 million in severe winter weather impact on pre-tax income and more than 17,000 flights canceled in the first two months of the year due to weather. Cash flow and balance sheet activity were in line with the company's capital return plan. Net cash from operating activities was $951 million, and the company reduced debt and capital lease obligations by $412 million, spent $614 million on capital expenditures, and returned $176 million to shareholders through dividends and buybacks. Unrestricted liquidity was $5.6 billion at quarter end. Delta also contributed $605 million to its defined benefit pension plans in the quarter and another $300 million in April 2014, satisfying its 2014 required contributions on an accelerated basis. Total debt and capital leases stood at $11.0 billion. Other items for investors include other (expense) income of $285 million, largely from interest expense and a $81 million miscellaneous loss that includes seasonal Virgin Atlantic losses, currency losses and a $23 million Venezuelan devaluation charge. The company's effective tax rate was 36% for the quarter, it expects 38% for 2014, and it reported $15.1 billion of U.S. federal pre-tax net operating loss carryforwards. Management also disclosed an $8.7 billion aircraft purchase commitment and a planned SkyMiles program change effective January 1, 2015.

    Apr 24, 2014
  40. 2013-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2013

    Delta Air Lines, Inc. reported net income of $1,369 million, or $1.59 per diluted share, for the three months ended September 30, 2013, compared with $1,047 million, or $1.23 per diluted share, in the prior-year quarter. Total operating revenue was $10.49 billion, up from $9.92 billion, with passenger revenue of $9.25 billion. Operating income for the quarter was $1,563 million, and fuel expense rose $74 million to $2.84 billion including regional carriers, reflecting a 3% increase in consumption and lower hedge gains, partially offset by a 3% decrease in the fuel price per gallon. For the nine months, net income was $2,061 million and operating cash flow was $3,373 million. The balance sheet improved meaningfully: total stockholders' equity moved to $137 million from a deficit of $(2,131) million at December 31, 2012, and total debt and capital leases were $11.9 billion, an $809 million reduction from year-end 2012. Unrestricted liquidity was $5.8 billion at quarter end. The company initiated a quarterly dividend of $0.06 per share, paid $51 million in September 2013, and authorized a $500 million share repurchase program through June 30, 2016, repurchasing about 5 million shares for roughly $100 million in the quarter. The filing also highlights ongoing fleet and network investments, including $9.9 billion in aircraft purchase commitments, the purchase of a 49% interest in Virgin Atlantic for $360 million, the acquisition of Endeavor Air, and the Monroe refinery, whose results are subject to volatile RINs costs. The company carries a $10.1 billion valuation allowance against deferred tax assets and indicated it may reverse substantially all of it as early as the end of 2013 if profitability continues.

    Oct 23, 2013
  41. 2013-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2013

    Delta Air Lines, Inc. reported net income of $685 million, or $0.80 per diluted share, for the three months ended June 30, 2013, compared with a net loss of $168 million in the June 2012 quarter. Total operating revenue was $9.7 billion, essentially flat year over year at $9,707 million versus $9,732 million, while total operating expense fell to $8,793 million from $9,598 million. Aircraft fuel and related taxes declined to $2,595 million from $3,305 million, and the filing attributes the decline mainly to lower fuel hedge losses and a 7% decrease in the market price per gallon of jet fuel, partially offset by a 1% increase in consumption. For the six months ended June 30, 2013, net income was $692 million, or $0.81 per diluted share. Balance sheet and liquidity: cash and cash equivalents rose to $2,965 million from $2,416 million at December 31, 2012, and the company reported $5.7 billion of unrestricted liquidity, including $1.8 billion of undrawn revolving credit facilities. Operating cash flow was $2,212 million for the first six months of 2013, versus $1,463 million a year earlier. Total debt and capital leases were $12.2 billion, reduced by $488 million since year-end 2012. Stockholders' deficit narrowed to $(1,184) million from $(2,131) million. A $10.6 billion valuation allowance against deferred tax assets remains in place, and the company said it may reverse substantially all of it as early as the end of 2013 if current profitability continues. Strategic actions in the quarter included the purchase of a 49% stake in Virgin Atlantic for $360 million, accounted for under the equity method, and the announcement of a plan to return more than $1 billion to shareholders over three years, including a quarterly dividend of $0.06 per share payable September 10, 2013, and a $500 million share repurchase authorization through June 30, 2016. The company also reported a $1.3 billion gross fair value of products exchanged under refinery buy/sell agreements in the quarter and a $51 million refinery segment loss, which it attributed primarily to higher renewable fuel credit (RINs) costs.

    Aug 1, 2013
  42. 2013-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2013

    Delta Air Lines, Inc. reported net income of $7 million, or $0.01 per diluted share, for the quarter ended March 31, 2013, compared with $124 million, or $0.15 per diluted share, in the March 2012 quarter. Total operating revenue rose $87 million, or 1%, to $8.50 billion, driven mainly by a 2% improvement in passenger mile yield. Operating income fell to $222 million from $382 million, as total operating expense rose $247 million, or 3%, to $8.28 billion, led by higher salaries and fuel expense. The company also recorded $102 million of restructuring and other items, primarily tied to its domestic fleet restructuring. Average fuel price per gallon was $3.21 including hedge gains of $77 million, and $3.24 on an adjusted basis. Cash generation and liquidity were a relative bright spot. Net cash from operating activities was $1.0 billion, versus $831 million a year earlier. Management cited $5.4 billion in unrestricted liquidity at March 31, 2013, and total debt and capital leases of $12.3 billion, reduced by $395 million during the quarter. Delta contributed $150 million to its defined benefit pension plans in the quarter and another $500 million in April 2013, satisfying its 2013 required contributions on an accelerated basis. Stockholders' deficit improved to $1.94 billion from $2.13 billion at year-end 2012. Looking ahead, the filing states that Delta expects to realize benefits from its $1 billion structural cost initiatives in 2013, with CASM-Ex growth expected to moderate in the second half of the year. It also expects capital expenditures above $2 billion in 2013, including a $360 million equity investment in Virgin Atlantic pending regulatory approval, and it has about $8.0 billion of aircraft purchase commitments. The company has a full valuation allowance of $11.0 billion against its deferred tax assets.

    Apr 24, 2013
  43. 2012-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2012

    Delta Air Lines, Inc. reported net income of $1.047 billion, or $1.23 per diluted share, for the three months ended September 30, 2012, compared with $549 million, or $0.65 per diluted share, in the September 2011 quarter. Total operating revenue rose $107 million, or 1%, to $9.923 billion, driven mainly by passenger revenue gains from higher passenger mile yield. Total operating expense fell $341 million, or 4%, to $8.615 billion, primarily because fuel expense declined $672 million on $414 million of fuel hedge gains and a 2% drop in consumption. Operating income was $1.308 billion, versus $860 million a year earlier. For the nine months ended September 30, 2012, net income was $1.003 billion, or $1.18 per diluted share, compared with $429 million, or $0.51, a year earlier. Cash provided by operating activities was $1.926 billion, and total debt and capital leases fell $1.1 billion to $12.7 billion from December 31, 2011. Stockholders' deficit narrowed to $(48) million from $(1.396) billion. Unrestricted liquidity was $5.1 billion at quarter-end. Management highlighted several structural initiatives: the June 2012 acquisition of the Trainer refinery near Philadelphia, which restarted in September 2012, a domestic fleet restructuring including 88 B-717-200 leases and 100 B-737-900ER purchases, the cessation of Comair regional operations, and a new $2.0 billion senior secured credit facility entered in October 2012. The company also disclosed a $10.2 billion valuation allowance against its deferred tax assets, which remains in place.

    Oct 26, 2012
  44. 2012-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2012

    Delta Air Lines, Inc. reported a net loss of $168 million, or $0.20 per diluted share, for the three months ended June 30, 2012, compared with net income of $198 million, or $0.23 per diluted share, in the June 2011 quarter. Total operating revenue rose $579 million, or 6%, to $9.73 billion, driven by a 7% increase in passenger revenue on flat traffic. However, total operating expense rose $926 million, or 11%, to $9.60 billion, largely because of higher fuel expense, which included $716 million of fuel hedge losses in the quarter, of which $561 million were mark-to-market adjustments for hedges settling in future periods. Operating income fell to $134 million from $481 million a year earlier. For the six months, the company reported a net loss of $44 million. The quarter also included a $171 million charge for severance and related retiree healthcare costs tied to voluntary workforce reduction programs, and the company reached a new agreement with its pilots' union, ALPA, effective July 1, 2012. On June 22, 2012, subsidiary Monroe Energy, LLC acquired an oil refinery near Philadelphia from Phillips 66 for $180 million, intended to supply jet fuel to Delta's Northeast operations. Management reported $5.3 billion in unrestricted liquidity at June 30, 2012, and total debt and capital leases of $13.0 billion. Stockholders' deficit was $1.1 billion at quarter-end, and a $10.6 billion valuation allowance remains against deferred tax assets. After the period, Delta completed a $480 million pass-through certificate offering in July 2012 to refinance aircraft financing, and finalized an agreement to add 88 B-717-200 aircraft with deliveries from 2013 through 2015. Future aircraft purchase commitments total approximately $6.8 billion at June 30, 2012.

    Jul 25, 2012
  45. 2012-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2012

    Delta Air Lines, Inc. reported net income of $124 million, or $0.15 per diluted share, for the three months ended March 31, 2012, compared with a net loss of $318 million in the March 2011 quarter. Total operating revenue rose 9% to $8.41 billion, driven mainly by passenger revenue, which increased 10% to $7.23 billion on a 9% improvement in passenger mile yield, 1% higher traffic and a 3% decline in capacity. Total operating expense rose 2% to $8.03 billion, with operating income of $382 million versus an operating loss of $92 million a year earlier. Management cited higher fuel costs, with the average fuel price rising to $3.11 per gallon from $2.86, partly offset by hedge gains of $196 million. Liquidity and balance sheet items improved during the quarter. Total debt and capital leases fell by $415 million to $13.4 billion, and unrestricted liquidity was $5.7 billion, including $1.8 billion of credit facility availability. Cash and cash equivalents rose to $2.91 billion from $2.66 billion, and operating cash flow was $831 million. Total stockholders' deficit narrowed to $1.01 billion from $1.40 billion at December 31, 2011. The company contributed $324 million to its defined benefit pension plans in the quarter and a further $354 million in April 2012. The filing also notes a $10.5 billion valuation allowance against deferred tax assets, which the company kept after moving to a cumulative income position for the first time since 2004. Other items include a $39 million gain on the LaGuardia slot exchange with US Airways, planned expansion at LaGuardia and JFK, and voluntary workforce reduction programs for U.S. non-pilot employees with a severance charge expected in the June 2012 quarter. Aircraft purchase commitments total approximately $6.8 billion.

    Apr 25, 2012
  46. 2011-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2011

    Delta Air Lines, Inc. reported net income of $549 million for the September 2011 quarter, compared to $363 million in the September 2010 quarter. Total operating revenue rose 10% to $9.82 billion, driven mainly by higher passenger revenue as Delta adjusted ticket prices in response to higher fuel prices, on a 1% decline in capacity. Operating income fell to $860 million from $1.00 billion, as aircraft fuel and related taxes rose $858 million (42%) to $2.88 billion. Operating margin for the quarter was 9%, and CASM rose to 14.16 cents from 12.48 cents, primarily reflecting higher fuel prices. Other expense, net decreased $324 million to $313 million, mainly because the prior-year quarter included a $360 million loss on extinguishment of debt. For the nine months ended September 30, 2011, net income was $429 million versus $574 million a year earlier, and operating income was $1.25 billion versus $1.92 billion. Total operating revenue was $26.72 billion, up 11%. Cash provided by operating activities was $1.68 billion, and total debt and capital leases stood at $14.5 billion, a $758 million reduction from December 31, 2010. Unrestricted liquidity was $5.1 billion, including $1.8 billion of undrawn credit facility availability. Delta's management outlined measures to offset higher fuel costs, including fare increases, reducing December 2011 quarter system capacity by 4-5%, retiring less efficient aircraft, a voluntary workforce reduction program that approximately 2,000 employees elected to join, and facility consolidation. The company also agreed to purchase 100 Boeing 737-900ER aircraft with deliveries from 2013 through 2018, bringing total aircraft purchase commitments to $6.9 billion. Delta also disclosed a pending slot transaction with US Airways and a JFK redevelopment project estimated at $1.2 billion.

    Oct 25, 2011
  47. 2011-Q2

    Delta Air Lines Quarterly Report for Q2 Ended Jun 30, 2011

    Delta Air Lines, Inc. reported net income of $198 million for the June 2011 quarter, compared to $467 million in the June 2010 quarter, while the six-month period showed a net loss of $120 million versus net income of $211 million a year earlier. Total operating revenue rose to $9.15 billion for the quarter, up $985 million (12%), driven mainly by higher passenger revenue as fares were raised in response to fuel prices. However, aircraft fuel and related taxes climbed 36% to $2.66 billion, and total operating expense increased 19% to $8.67 billion, which cut quarterly operating income to $481 million from $852 million. Management cited an $80 million severance charge tied to voluntary workforce reduction programs (about 2,000 employees elected to participate) and a $64 million charge for facilities consolidation and fleet assessments. Delta's balance sheet showed total assets of $43.88 billion and stockholders' equity of $785 million at June 30, 2011. Total debt and capital leases stood at $14.7 billion, a $591 million reduction from December 31, 2010. The company ended the quarter with $5.6 billion in unrestricted liquidity, including $1.8 billion of availability under credit facilities. During the period Delta refinanced debt through new EETC pass-through certificates and a $2.6 billion Senior Secured Credit Facility, and it discontinued hedge accounting for its existing fuel derivatives in June 2011. Fuel hedges covered 57% of projected fuel consumption for the six months ending December 31, 2011. Management stated it is reducing December 2011 quarter system capacity by 4-5% year-over-year, retiring 140 less efficient aircraft by the end of 2012, and targeting non-fuel unit costs at 2010 levels by the end of 2011. The June 2011 quarter also absorbed a negative impact of approximately $125 million on passenger revenue from the March earthquake and tsunami in Japan.

    Jul 27, 2011
  48. 2011-Q1

    Delta Air Lines Quarterly Report for Q1 Ended Mar 31, 2011

    Delta Air Lines, Inc. reported a net loss of $318 million for the quarter ended March 31, 2011, compared with a net loss of $256 million in the March 2010 quarter. Total operating revenue rose 13% to $7.747 billion, but total operating expense rose 16% to $7.839 billion, producing an operating loss of $92 million versus operating income of $68 million a year earlier. Management attributes the results mainly to roughly $600 million of higher fuel expense, partly offset by fare increases. Atlantic results were hurt by overcapacity that prevented sufficient fare increases to cover fuel costs. Passenger revenue also was reduced by about $90 million from severe winter storms and about $35 million from the events in Japan. Management is responding by adjusting ticket prices, cutting second-half 2011 capacity (notably in the Atlantic market and at the Memphis hub), retiring older aircraft over the next 18 months, cutting planned 2011 capital expenditures by $300 million to $1.2 billion, and repositioning its fuel hedge portfolio from WTI into heating oil and Brent using three-way collars. At March 31, 2011, the company reported $5.5 billion of unrestricted liquidity and total debt and capital leases of $15.2 billion. Stockholders' equity was $758 million, down from $897 million at year-end 2010. After quarter-end, Delta entered into $2.6 billion of Senior Secured Credit Facilities due 2016 and 2017, which retired $2.5 billion of exit financing, and completed a $293 million 2011-1A EETC offering. The facilities contain minimum liquidity, fixed charge coverage and collateral coverage covenants that restrict dividends and stock repurchases. The filing reports that Delta was in compliance with all covenants at March 31, 2011.

    May 5, 2011
  49. 2010-Q3

    Delta Air Lines Quarterly Report for Q3 Ended Sep 30, 2010

    Delta Air Lines, Inc. reported net income of $363 million for the September 2010 quarter, compared with a net loss of $161 million in the September 2009 quarter. Operating income was $1,003 million versus $1,923 million a year earlier, while total operating revenue rose to $8.95 billion from $7.57 billion. Management attributes the improvement mainly to a strengthening airline revenue environment, including higher business travel demand and fares, partly offset by a $360 million loss on extinguishment of debt, higher fuel prices, profit sharing expense and restructuring and merger-related costs. Total passenger revenue increased $1.3 billion, or 19%, on 2% higher capacity. For the nine months ended September 30, 2010, Delta reported a loss before income taxes of $179 million, and net income of $1.9 billion is cited in the cash flow discussion as net income after non-cash adjustments; operating cash flow was $2.5 billion, up from $1.5 billion. Debt declined from $16.7 billion to $14.7 billion net carrying amount during 2010 as the company completed debt reduction initiatives, including $682 million of cash used in the September quarter. Liquidity at September 30, 2010 was $5.5 billion, consisting of $3.9 billion in cash, cash equivalents and short-term investments and $1.6 billion in undrawn revolving credit facilities. Key risks highlighted include volatile fuel prices (unhedged fuel price up 17% to $2.23 per gallon), pending union elections for several employee groups, a September 2010 $146 million impairment tied to the Comair fleet reduction, and the ongoing First Bag Fee antitrust litigation, which Delta describes as without merit and is vigorously defending.

    Oct 25, 2010
  50. 2010-Q2-A

    Delta Air Lines Quarterly Report (Amendment) for Q2 Ended Jun 30, 2010

    Delta Air Lines, Inc. filed this Form 10-Q/A (Amendment No. 1) for the quarterly period ended June 30, 2010. Its sole purpose is to furnish Exhibit 101, the XBRL (eXtensible Business Reporting Language) versions of the financial materials from the Form 10-Q originally filed with the SEC on July 30, 2010. The amendment states that no other changes were made to the Form 10-Q and that it speaks as of the original filing date, without updating for later events. The filing reports 788,849,417 shares of common stock ($0.0001 par value) outstanding as of June 30, 2010. It lists a Separation Agreement and General Release dated June 4, 2010, between Delta and Michael J. Becker, along with a letter from Ernst & Young LLP regarding unaudited interim financial information. Both are identified as exhibits filed with the original Form 10-Q. The report is signed by Hank Halter, Senior Vice President and Chief Financial Officer, and dated July 30, 2010. For investors, this amendment is primarily a technical filing that makes the quarter's financial data machine-readable. The operating results and financial statements themselves are in the original Form 10-Q referenced by the filing.

    Aug 2, 2010