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Delta Air Lines 8-K Report, Financial Results (Jan 10, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 10, 2025
Period End
January 10, 2025
Security
DAL
In the 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 · Apr ’18Apr ’18
  2. Impairment8-K · May ’20May ’20
  3. Material agreement8-K · Jul ’22Jul ’22
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed January 10, 2025. Cited figures are marked; the original filing is the authoritative source.

Delta Air Lines, Inc. furnished a press release (Exhibit 99.1) reporting results for the quarter and full year ended December 31, 2024.

For the December 2024 quarter, GAAP operating revenue was $15.6 billiona, operating income was $1.7 billion (11.0% margin), pre-tax income was $1.2 billion, and diluted EPS was $1.29. Adjusted (non-GAAP) December quarter EPS was $1.85 and adjusted operating revenue was $14.4 billion, with adjusted free cash flow of $678 million. For full year 2024, GAAP operating revenue was $61.6 billion, GAAP pre-tax income was $4.7 billion and diluted EPS was $5.33.

Adjusted full-year EPS was $6.16b, adjusted free cash flow was $3.4 billion and adjusted debt to EBITDAR improved to 2.6x from 3.0x at the end of 2023. Management guided to 2025 EPS greater than $7.35, pre-tax income greater than $6 billion and free cash flow greater than $4 billion, with gross leverage of 2x or less. For the March 2025 quarter, the company expects total revenue growth of 7% to 9% year over year, an operating margin of 6% to 8%, and EPS of $0.70 to $1.00.

The 2025 EPS guidance is stated as more than 10% growth over a normalized 2024 baseline that excludes a 45-cent impact from the CrowdStrike-caused outage in the September 2024 quarter. The filing highlights strong demand exiting 2024, with December quarter revenue growth of 5.7% on an adjusted basis, ahead of prior guidance of 2% to 4%. Management also noted that adjusted net debt fell $3.6 billion from year-end 2023 to $18.0 billionc, and that Delta returned to investment grade at all three major credit rating agencies.

02—Key points

Key Highlights

  1. December quarter 2024 GAAP diluted EPS of $1.29 versus $3.16 a year earlier; adjusted EPS of $1.85 versus $1.28 a year earlier
  2. Full year 2024 GAAP operating revenue of $61.6 billion, up 6% from $58.0 billion; adjusted operating revenue of $57.0 billion, up 4.3%
  3. Full year 2024 operating cash flow of $8.0 billion and free cash flow of $3.4 billion, with gross capital expenditures of $4.8 billion
  4. Adjusted net debt reduced by $3.6 billion to $18.0 billion; adjusted debt to EBITDAR improved to 2.6x from 3.0x
  5. 2025 guidance: EPS greater than $7.35, pre-tax income greater than $6 billion and free cash flow greater than $4 billion
  6. March 2025 quarter guidance: total revenue up 7% to 9% year over year, operating margin of 6% to 8%, and EPS of $0.70 to $1.00
  7. Delta returned to investment grade at all three major credit rating agencies

03—Questions

Frequently Asked Questions

  1. How did Delta perform in the December 2024 quarter?

    Delta reported GAAP operating revenue of $15.6 billion, operating income of $1.7 billion with an 11.0% operating margin, and pre-tax income of $1.2 billion. GAAP diluted EPS was $1.29. On an adjusted basis, EPS was $1.85 and adjusted operating revenue was $14.4 billion, up 5.7% year over year, ahead of prior guidance of 2% to 4%.

  2. What is Delta's full year 2024 financial performance?

    GAAP operating revenue for 2024 was $61.6 billion, with operating income of $6.0 billion and pre-tax income of $4.7 billion. GAAP diluted EPS was $5.33. Adjusted EPS was $6.16, and adjusted free cash flow was $3.4 billion.

  3. What guidance did Delta provide for 2025 and the March 2025 quarter?

    For full year 2025, Delta guided to EPS greater than $7.35, pre-tax income greater than $6 billion, and free cash flow greater than $4 billion, with gross leverage of 2x or less. For the March 2025 quarter, it expects total revenue up 7% to 9% year over year, an operating margin of 6% to 8%, and EPS of $0.70 to $1.00.

  4. How is Delta's balance sheet and leverage trending?

    Adjusted net debt was $18.0 billion at December 31, 2024, down $3.6 billion from the end of 2023. Adjusted debt to EBITDAR improved to 2.6x from 3.0x. Total debt and finance lease obligations were $16.2 billion, and liquidity was $6.1 billion including $3.1 billion of undrawn revolver capacity.

  5. What did the filing say about the 2024 CrowdStrike-related impact?

    The company stated that its 2025 EPS growth comparison excludes a 45-cent impact from the CrowdStrike-caused outage in the September 2024 quarter. On that normalized basis, 2025 EPS guidance of greater than $7.35 represents more than 10% growth.

04—Continue

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