Delta Air Lines, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Delta Air Lines, Inc. has filed its Q1 2024 10-Q report detailing financial performance and operational data.</b>

AI Summary

DELTA AIR LINES, INC. (DAL) filed a Quarterly Report (10-Q) with the SEC on April 10, 2024. Delta Air Lines, Inc. filed its quarterly report (10-Q) on April 10, 2024, for the period ending March 31, 2024. The filing covers the first quarter of the fiscal year 2024. Key financial data and operational metrics for the period are detailed within the report. The report includes information on common stock, additional paid-in capital, retained earnings, and treasury stock. Comparative data from previous periods, including December 31, 2023, and March 31, 2023, is provided.

Why It Matters

For investors and stakeholders tracking DELTA AIR LINES, INC., this filing contains several important signals. This filing provides investors with the latest financial health and operational status of Delta Air Lines, crucial for investment decisions. The detailed financial statements and disclosures allow for analysis of revenue streams, profitability, and balance sheet strength.

Risk Assessment

Risk Level: medium — DELTA AIR LINES, INC. shows moderate risk based on this filing. The airline industry is subject to significant volatility due to factors like fuel prices, economic conditions, and geopolitical events, which can impact Delta's financial performance and outlook.

Analyst Insight

Investors should review Delta's Q1 2024 results for trends in passenger traffic, cargo, and other revenue segments, as well as changes in its balance sheet and debt levels.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly report filing date)
• 2024-01-01 — Quarter Start Date (Q1 2024)
• 2023-12-31 — Previous Year End (Comparative balance sheet data)
• 2023-03-31 — Prior Year Quarter End (Comparative financial data)

Key Players & Entities

• DELTA AIR LINES, INC. (company) — Filer name
• 0000027904 (company) — Central Index Key
• 2024-04-10 (date) — Filing date
• 2024-03-31 (date) — Period of report
• AIR TRANSPORTATION, SCHEDULED [4512] (industry) — Standard Industrial Classification
• DE (jurisdiction) — State of Incorporation
• ATLANTA (location) — Business Address City
• GA (location) — Business Address State

FAQ

Risk Factors

• Industry Volatility [high — market]: The airline industry is subject to significant volatility due to factors such as fuel price fluctuations, economic downturns, and geopolitical instability.
• Operational Disruptions [medium — operational]: The company's operations are susceptible to disruptions from weather, air traffic control issues, and labor disputes, which can impact schedules and profitability.
• Debt Levels [medium — financial]: Maintaining a significant level of debt can impact financial flexibility and increase interest expense, especially in a rising interest rate environment.

Key Dates

• 2024-04-10: 10-Q Filing — Report of financial and operational performance for Q1 2024.
• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share DAL New York Stock Exchange

Filing Documents

• dal-20240331.htm (10-Q) — 1122KB
• dal3312024ex101.htm (EX-10.1) — 154KB
• dal3312024ex102a.htm (EX-10.2A) — 202KB
• dal3312024ex102b.htm (EX-10.2B) — 1020KB
• dal3312024ex15.htm (EX-15) — 2KB
• dal3312024ex311.htm (EX-31.1) — 10KB
• dal3312024ex312.htm (EX-31.2) — 10KB
• dal3312024ex32.htm (EX-32) — 6KB
• dal-20240331_g1.jpg (GRAPHIC) — 21KB
• 0000027904-24-000006.txt (&nbsp;) — 7030KB
• dal-20240331.xsd (EX-101.SCH) — 36KB
• dal-20240331_cal.xml (EX-101.CAL) — 58KB
• dal-20240331_def.xml (EX-101.DEF) — 190KB
• dal-20240331_lab.xml (EX-101.LAB) — 405KB
• dal-20240331_pre.xml (EX-101.PRE) — 286KB
• dal-20240331_htm.xml (XML) — 862KB

Forward Looking Statements

Forward Looking Statements 1 Report of Independent Registered Public Accounting Firm 2

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) 4 Condensed Consolidated Statements of Cash Flows 5 Consolidated Statements of Stockholders' Equity 6 Notes to the Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 28

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 28

Risk Factors

Item 1A. Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28

Exhibits

Item 6. Exhibits 29 Signature 30

Forward Looking Statements

Forward Looking Statements 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. | March 2024 Form 10-Q 1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Delta Air Lines, Inc. Results of Review of Interim Financial Statements We have reviewed the accompanying consolidated balance sheet of Delta Air Lines, Inc. (the Company) as of March 31, 2024, the related condensed consolidated statements of operations and comprehensive income/(loss), condensed consolidated statements of cash flows, and consolidated statements of stockholders' equity for the three-month periods ended March 31, 2024 and 2023, and the related notes (collectively referred to as the "condensed consolidated interim financial statements"). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting princ

Financial Statements

Financial Statements DELTA AIR LINES, INC. Consolidated Balance Sheets (Unaudited) (in millions, except share data) March 31, 2024 December 31, 2023 ASSETS Current Assets: Cash and cash equivalents $ 3,877 $ 2,741 Short-term investments 589 1,127 Accounts receivable, net of allowance for uncollectible accounts of $ 16 and $ 17 3,748 3,130 Fuel, expendable parts and supplies inventories, net of allowance for obsolescence of $ 124 and $ 123 1,452 1,314 Prepaid expenses and other 1,913 1,957 Total current assets 11,579 10,269 Noncurrent Assets: Property and equipment, net of accumulated depreciation and amortization of $ 22,156 and $ 21,707 35,915 35,486 Operating lease right-of-use assets 6,785 7,004 Goodwill 9,753 9,753 Identifiable intangibles, net of accumulated amortization of $ 913 and $ 911 5,981 5,983 Equity investments 3,247 3,457 Other noncurrent assets 1,709 1,692 Total noncurrent assets 63,390 63,375 Total assets $ 74,969 $ 73,644 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of debt and finance leases $ 2,809 $ 2,983 Current maturities of operating leases 742 759 Air traffic liability 10,193 7,044 Accounts payable 4,541 4,446 Accrued salaries and related benefits 3,037 4,561 Loyalty program deferred revenue 4,018 3,908 Fuel card obligation 1,100 1,100 Other accrued liabilities 2,038 1,617 Total current liabilities 28,478 26,418 Noncurrent Liabilities: Debt and finance leases 16,555 17,071 Pension, postretirement and related benefits 3,524 3,601 Loyalty program deferred revenue 4,523 4,512 Noncurrent operating leases 6,203 6,468 Deferred income taxes, net 994 908 Other noncurrent liabilities 3,541 3,561 Total noncurrent liabilities 35,340 36,121 Commitments and Contingencies Stockholders' Equity: Common stock at $ 0.0001 par value; 1,500,000,000 shares authorized, 657,166,677 and 654,671,194 shares issued — — Additional paid-in capital 11,688 11,641 Retained earnings

Financial Statements

Financial Statements DELTA AIR LINES, INC. Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Unaudited) Three Months Ended March 31, (in millions, except per share data) 2024 2023 Operating Revenue: Passenger $ 11,131 $ 10,411 Cargo 178 209 Other 2,439 2,139 Total operating revenue 13,748 12,759 Operating Expense: Salaries and related costs 3,791 3,386 Aircraft fuel and related taxes 2,598 2,676 Ancillary businesses and refinery 1,370 1,125 Contracted services 1,024 1,010 Landing fees and other rents 748 584 Aircraft maintenance materials and outside repairs 679 585 Depreciation and amortization 615 564 Regional carrier expense 550 559 Passenger commissions and other selling expenses 550 500 Passenger service 413 416 Aircraft rent 136 132 Profit sharing 125 72 Pilot agreement and related expenses — 864 Other 535 563 Total operating expense 13,134 13,036 Operating Income/(Loss) 614 ( 277 ) Non-Operating Expense: Interest expense, net ( 205 ) ( 227 ) Gain/(loss) on investments, net ( 227 ) 122 Loss on extinguishment of debt ( 4 ) ( 22 ) Miscellaneous, net ( 56 ) ( 102 ) Total non-operating expense, net ( 492 ) ( 229 ) Income/(Loss) Before Income Taxes 122 ( 506 ) Income Tax (Provision)/Benefit ( 85 ) 143 Net Income/(Loss) $ 37 $ ( 363 ) Basic Earnings/(Loss) Per Share $ 0.06 $ ( 0.57 ) Diluted Earnings/(Loss) Per Share $ 0.06 $ ( 0.57 ) Comprehensive Income/(Loss) $ 89 $ ( 316 ) The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. Delta Air Lines, Inc. | March 2024 Form 10-Q 4

Financial Statements

Financial Statements DELTA AIR LINES, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (in millions) 2024 2023 Net Cash Provided by Operating Activities $ 2,408 $ 2,235 Cash Flows from Investing Activities: Property and equipment additions: Flight equipment, including advance payments ( 883 ) ( 630 ) Ground property and equipment, including technology ( 310 ) ( 370 ) Purchase of short-term investments — ( 999 ) Redemption of short-term investments 546 897 Other, net 10 2 Net cash used in investing activities ( 637 ) ( 1,100 ) Cash Flows from Financing Activities: Payments on debt and finance lease obligations ( 712 ) ( 1,166 ) Cash dividends ( 64 ) — Other, net ( 11 ) ( 13 ) Net cash used in financing activities ( 787 ) ( 1,179 ) Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash Equivalents 984 ( 44 ) Cash, cash equivalents and restricted cash equivalents at beginning of period 3,395 3,473 Cash, cash equivalents and restricted cash equivalents at end of period $ 4,379 $ 3,429 Non-Cash Transactions: Right-of-use assets acquired or modified under operating leases $ ( 34 ) $ 208 Flight and ground equipment acquired or modified under finance leases 6 25 Operating leases converted to finance leases — 30 The following table provides a reconciliation of cash, cash equivalents and restricted cash equivalents reported within the Consolidated Balance Sheets to the total of the same such amounts shown above: March 31, (in millions) 2024 2023 Current assets: Cash and cash equivalents $ 3,877 $ 3,215 Restricted cash included in prepaid expenses and other 126 160 Noncurrent assets: Restricted cash included in other noncurrent assets 376 54 Total cash, cash equivalents and restricted cash equivalents $ 4,379 $ 3,429 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. Delta Air Lines, Inc. | March 2024 Form 10-Q 5

Financial Statements

Financial Statements DELTA AIR LINES, INC. Consolidated Statements of Stockholders' Equity (Unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock (in millions, except per share data) Shares Amount Shares Amount Total Balance at December 31, 2023 655 $ — $ 11,641 $ 5,650 $ ( 5,845 ) 11 $ ( 341 ) $ 11,105 Net income — — — 37 — — — 37 Dividends declared ($ 0.10 per share) — — — ( 65 ) — — — ( 65 ) Other comprehensive income — — — — 52 — — 52 Common stock issued for employee equity awards (1) 2 — 47 — — 1 ( 25 ) 22 Balance at March 31, 2024 657 $ — $ 11,688 $ 5,622 $ ( 5,793 ) 12 $ ( 366 ) $ 11,151 (1) Treasury shares were withheld for payment of taxes, at a weighted average price per share of $ 39.83 in the March 2024 quarter. Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock (in millions, except per share data) Shares Amount Shares Amount Total Balance at December 31, 2022 652 $ — $ 11,526 $ 1,170 $ ( 5,801 ) 11 $ ( 313 ) $ 6,582 Net loss — — — ( 363 ) — — — ( 363 ) Other comprehensive income — — — — 47 — — 47 Common stock issued for employee equity awards (1) 2 — 18 — — — ( 24 ) ( 6 ) Balance at March 31, 2023 654 $ — $ 11,544 $ 807 $ ( 5,754 ) 11 $ ( 337 ) $ 6,260 (1) Treasury shares were withheld for payment of taxes, at a weighted average price per share of $ 39.73 in the March 2023 quarter. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. Delta Air Lines, Inc. | March 2024 Form 10-Q 6 Notes to the Condensed Consolidated Financial Statements DELTA AIR LINES, INC. Notes to the Condensed Consolidated Financial Statements (Unaudited) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Delta Air Lines, Inc. and our consolidated subs

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