Delta Air Lines Files 2024 10-K

Ticker: DAL · Form: 10-K · Filed: Feb 11, 2025 · CIK: 27904

Sentiment: neutral

Topics: 10-K, airline, financials

TL;DR

Delta's 2024 10-K is in. All systems go for the airline.

AI Summary

Delta Air Lines, Inc. filed its 2024 10-K on February 11, 2025, reporting on its fiscal year ending December 31, 2024. The filing details the company's financial performance, operational status, and forward-looking strategies within the air transportation industry. Key financial data and risk factors are outlined for investors and stakeholders.

Why It Matters

This 10-K filing provides a comprehensive overview of Delta's financial health and operational landscape for the past year, crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: medium — The airline industry is subject to significant external risks including fuel price volatility, economic downturns, and regulatory changes.

Key Numbers

Key Players & Entities

FAQ

What is Delta Air Lines' primary business activity?

Delta Air Lines, Inc. is primarily engaged in the air transportation industry, specifically scheduled air transportation.

When did Delta Air Lines file its 2024 10-K?

Delta Air Lines filed its 2024 10-K on February 11, 2025.

What is the fiscal year end for Delta Air Lines?

Delta Air Lines' fiscal year ends on December 31st.

Where is Delta Air Lines headquartered?

Delta Air Lines' business address is Hartsfield-Jackson Atlanta Intl Airport, 1030 Delta Boulevard, Atlanta, GA 30354-1989.

What is the SEC file number for Delta Air Lines?

The SEC file number for Delta Air Lines is 001-05424.

Filing Stats: 4,429 words · 18 min read · ~15 pages · Grade level 13.4 · Accepted 2025-02-11 17:02:24

Key Financial Figures

Filing Documents

Forward-Looking Statements

Forward-Looking Statements 1 PART I

RISK FACTORS

ITEM 1A. RISK FACTORS 17 Risk Factors Relating to Delta 17 Risk Factors Relating to the Airline Industry 23

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 26

CYBERSECURITY

ITEM 1C. CYBERSECURITY 27

PROPERTIES

ITEM 2. PROPERTIES 29 Flight Equipment 29 Ground Facilities 30

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 31

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 31 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 32

(RESERVED)

ITEM 6. (RESERVED) 33

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION S 34 Financial Highlights 34 Results of Operations 35 Non-Operating Results 38 Income Taxes 38 Refinery Segment 39 Financial Condition and Liquidity 40 Critical Accounting Estimates 43 Supplemental Information 47 Glossary of Defined Terms 50

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 51

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 52

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 92

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 92

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 94

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 94 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 94

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 94

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 94 Page

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 94

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 94 PART IV

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 95

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 99

SIGNATURES

SIGNATURES 100 Unless otherwise indicated or the context otherwise requires, the terms "Delta," "we," "us," and "our" refer to Delta Air Lines, Inc. and its subsidiaries.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Delta Air Lines, Inc. | 2024 Form 10-K 1

Business

Item 1. Business Part I

BUSINESS

ITEM 1. BUSINESS General As a global airline based in the United States, we connect customers across our expansive global network with a commitment to ensuring that the future of travel is connected, personalized and enjoyable. In 2024, we served over 200 million customers safely, reliably and with industry-leading customer service innovation. Competitive Advantages and Brand Strength In 2024, we continued to differentiate Delta from the industry and to invest in the durability of our competitive advantages. These enduring competitive advantages that support our trusted consumer brand include our people and culture, operational reliability, global network, customer loyalty and financial foundation. People and Culture The Delta people and culture are our strongest competitive advantage. Our more than 100,000 employees provide world-class travel experiences for our customers and best-in-class service. We believe that Delta's brand transcends the industry, powered by our people's outstanding work and passion for serving our customers. In 2024, Delta was recognized as the world's No. 11 Most Admired Company as ranked by FORTUNE , and was ranked No. 13 in the U.S. on Glassdoor's Best Places to Work list. Our industry-leading profit sharing program directly aligns our employees' interests with the company's long-term success and for 2024, we are rewarding them with $1.4 billion in profit sharing payments. The company also maintains a Shared Rewards program to incentivize operational performance, and our employees earned $86 million under this program in 2024. Operational Reliability We remain committed to industry-leading reliability as the foundation for our brand promise and efficiency. We are consistently among the industry's best performers, delivering the best on-time arrival and completion factor among our network carrier peers in 2024. In recognition of our unwavering commitment to operational performance, we were honored for the fourth consecutiv

Business

Item 1. Business Internationally, we seek to bring more choice to customers through innovative alliances with Aeromxico, Air France-KLM, China Eastern, LATAM Airlines Group S.A. ("LATAM"), Korean Air and Virgin Atlantic. We operate significant hubs in, or have market presence in the key cities of, Amsterdam, Bogota, Lima, London-Heathrow, Mexico City, Paris-Charles de Gaulle, Santiago (Chile), Sao Paulo, Seoul-Incheon and Tokyo. Our strategic relationships with international airlines are an important part of our business as they improve our access to markets around the world and enable us to provide customers a more seamless global travel experience across our alliance network. The most significant of these arrangements are commercial joint ventures or cooperation agreements that include joint sales and marketing coordination, co-location of airport facilities and other commercial cooperation arrangements. In some cases, we have reinforced strategic alliances through equity investments where we have the opportunity to create deep relationships and maximize commercial cooperation. Our global network is supported by a fleet of 1,292 aircraft as of December 31, 2024 that are varied in size and capabilities, giving us flexibility to adjust aircraft to the network. We are continuing to refresh our fleet by acquiring new and more fuel-efficient aircraft with increased premium seating and cargo capacity to replace retiring aircraft, while modifying our existing aircraft cabins to increase premium offerings and harmonize interiors. Simultaneously, we continue on our multi-year journey of fleet simplification by replacing retiring aircraft with deliveries of next-generation aircraft. In 2024, we took delivery of 38 aircraft, including A321neos, A220-300s, A330-900s and A350-900 aircraft. Customer Loyalty With operational excellence, best-in-class service and commitment to our customers, we have continued to earn our customers' trust and preference by delivering the "

Business

Item 1. Business We have diversified our business by growing high-margin revenue streams that leverage our competitive advantages, including: Our continued focus on our premium products (including Delta One , First Class, Delta Premium Select and Delta Comfort+ ) and customer segmentation, which has reduced our reliance on the most price sensitive customer segment. Our partnership with American Express, which provides us a co-brand revenue stream tied to broader consumer spending. Our Maintenance, Repair and Overhaul ("MRO") operation, where we are well-positioned for growth through contractual agreements with jet engine manufacturers, including three next-generation engine platforms. Our other complementary portfolio businesses, such as our cargo operations and Delta Vacations. Our premium yield growth has significantly outpaced main cabin, with record paid load factors in premium cabin in 2024, as demand for premium products continues to grow. In 2024, we introduced aircraft with more premium seating and completed cabin modification programs to increase premium offerings. SkyMiles Program Our SkyMiles program provides members with the ability to earn mileage credits ("miles") when traveling on Delta, Delta Connection and our partner airlines. Miles may also be earned by using certain services offered by program partners, such as credit card, retail, ridesharing, car rental and hotel companies. To facilitate transactions with participating companies, we sell miles to non-airline businesses and other airlines. Miles may be used toward award redemptions such as flights and upgrades on Delta, our regional carriers and other participating airlines as well as donations to specific charities and more. In 2024, 10% of revenue miles flown on Delta were from award travel, as program members redeemed miles in the loyalty program for approximately 30 million award tickets. Our most significant and valuable contract to sell miles relates to our co-brand credi

Business

Item 1. Business Commercial Arrangements with Other Airlines Joint Venture/Cooperation Agreements. We have implemented four separate joint venture or joint cooperation agreements with foreign carriers as described below. We have sought to reinforce these agreements through equity investments in those carriers. See Note 4 of the Notes to the Consolidated Financial Statements for additional information about our equity investments. Each of our joint venture or cooperation arrangements provides for joint commercial cooperation with the relevant partner within the geographic scope of the arrangement, including the sharing of revenues and/or profits and losses generated by the parties on the joint venture routes, as well as joint marketing and sales, coordinated pricing and revenue management, network and schedule planning and other coordinated activities with respect to the parties' operations on joint venture routes. Our implemented commercial joint ventures/cooperation agreements consist of the following: A combined joint venture with Air France, KLM and Virgin Atlantic with respect to transatlantic traffic flows. In addition to the joint venture, we own a non-controlling 49% equity stake in Virgin Atlantic Limited, the parent company of Virgin Atlantic Airways, and a 3% ownership stake in the parent company of Air France and KLM. A joint cooperation agreement with Aeromxico with respect to trans-border traffic flows between the U.S. and Mexico. In addition to the joint cooperation agreement, we currently own an approximately 20% equity stake in Grupo Aeromxico, S.A.B. de C.V., the parent company of Aeromxico. A joint venture agreement with LATAM with respect to traffic flows between North and South America, allowing our passengers to access more than 300 destinations between the United States/Canada and Brazil, Chile, Colombia, Ecuador, Paraguay, Peru and Uruguay. We currently own an approximately 10% equity stake in LATAM. A joint venture with Korean A

Business

Item 1. Business Regional Carriers We have air service agreements with domestic regional air carriers that feed traffic to our network by serving passengers primarily in small and medium-sized cities in the domestic market. These arrangements enable us to better match capacity with demand in these markets. Through our regional carrier program, Delta Connection , we have contractual arrangements with regional carriers to operate aircraft using our "DL" designator code. We currently have contractual arrangements with: Endeavor Air, Inc., a wholly owned subsidiary of ours ("Endeavor"). Republic Airways, Inc. SkyWest Airlines, Inc. ("SkyWest Airlines"). Our contractual agreements with regional carriers are primarily capacity purchase arrangements, under which we control the scheduling, pricing, reservations, ticketing and seat inventories for the regional carriers' flights operating under our "DL" designator code. We are entitled to all ticket, cargo, mail, in-flight and ancillary revenues associated with the flights under these capacity purchase arrangements. We pay those airlines an amount, as defined in the applicable agreement, which is based on a determination of their cost of operating those flights and other factors intended to approximate market rates for those services. These capacity purchase agreements are long-term agreements, usually with initial terms of at least ten years, which grant us the option to extend the initial term. Certain of these agreements provide us the right to terminate the entire agreement, or in some cases remove some of the aircraft from the scope of the agreement, for convenience at certain future dates. SkyWest Airlines operates some flights for us under a revenue proration agreement. This proration agreement establishes a fixed dollar or percentage division of revenues for tickets sold to passengers traveling on connecting flight itineraries. Cargo Through our global network, our cargo operations are able to conn

Business

Item 1. Business Environmental Sustainability We are pursuing a long-term strategy to achieve net-zero greenhouse gas emissions from our airline operations by 2050, with initiatives focused around three key themes: What We Fly, How We Fly, and the Fuel We Use. Throughout 2024, we continued to prioritize innovative measures to reduce emissions and other environmental impacts across our business. What We Fly Fleet renewal and optimization : We continue to make our existing fleet more efficient as older aircraft are retired. Additions to our fleet since 2019, including 38 aircraft delivered in 2024, are on average 28% more fuel efficient per seat mile than aircraft retired since 2019. In addition to accepting deliveries of next-generation fleet types, we have also invested in retrofitting our existing fleet with updated technologies that optimize and reduce fuel consumption. Following the installation of split-scimitar winglets on our Boeing 737-900ER fleet in 2021, we expect to complete similar modifications on the Boeing 737-800 fleet by the end of 2025, an enhancement expected to drive over three million gallons of fuel savings annually. Cumulatively, fleet renewal and optimization efforts have led to a 6.6% improvement in fleet-wide fuel efficiency since 2019. Pursuing future aviation technologies : Our sustainability strategy aims to introduce revolutionary aircraft into our fleet. In 2024, we joined a collaborative project between Hartsfield-Jackson Atlanta International Airport, Airbus and Plug Power to assess the feasibility of hydrogen fueling at the world's busiest airport. This innovative project supplements previously announced partnerships with Boeing and NASA on their Sustainable Flight Demonstrator program, also known as the X-66, as well as our investment in Joby Aviation, which aims to pioneer home-to-airport transportation through electric, vertical takeoff and landing (eVTOL) technology. How We Fly Aircraft operations: We achieved fuel

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