Delta Air Lines 8-K Report, Regulation FD Disclosure (Sep 12, 2024)

Delta Air Lines, Inc. furnished an Investor Update (Exhibit 99.1) under Item 7.01 on September 12, 2024, in connection with its participation in the Morgan Stanley Laguna Conference.

The update highlights industry-leading operational performance, with Delta ranked #1 versus network peers (AA, UA) on completion factor and on-time performance year-to-date, based on FlightStats preliminary data through September 10, 2024. Management said unit revenue trends are improving through the quarter, with expected positive unit revenue growth in Domestic and Transatlantic in September. The update quantifies the financial impact of the technology-driven outage disclosed on August 8, which reduces September quarter earnings per share by 45 cents.

Excluding that impact, September quarter EPS is expected at the high end of initial guidance. Drivers include capacity and revenue growth in line with initial guidance, a realized fuel price per gallon slightly below the initial $2.60 to $2.80^a range, and non-fuel unit cost growth slightly above initial guidance. Weather disruption in July and August and an employee reward of confirmed flight passes add to costs.

Non-operating expense is lower than expected due to a $70 million^b gain on the sale of 50% of Delta's stake in CLEAR Secure, Inc. For full year 2024, Delta expects EPS at or above the midpoint of its $6 to $7 guidance range, excluding the 45-cent outage impact on the September quarter. The current outlook shows total revenue up flat to 1% versus up 2% to 4% initially, and ASMs up about 4% versus up 5% to 6% initially, with CASM-Ex up about 5.5% versus up 1% to 2% initially. The filing also includes non-GAAP reconciliations for adjusted total revenue and CASM-Ex.