Delta Air Lines Files Q2 2024 10-Q Report

TL;DR

Delta's Q2 2024 10-Q is in: financials and ops look solid.

AI Summary

Delta Air Lines, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and operational status during the second quarter of 2024. Key financial data and operational metrics are presented for the reporting period and comparative periods.

Why It Matters

This filing provides investors and analysts with the latest official financial and operational data for Delta Air Lines, crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing and does not inherently present new risks.

Key Players & Entities

• DELTA AIR LINES, INC. (company) — Filer
• 20240630 (date) — Period of Report
• 20240711 (date) — Filing Date

FAQ

Key Financial Figures

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

Filing Documents

• dal-20240630.htm (10-Q) — 1500KB
• dal6302024ex101.htm (EX-10.1) — 16KB
• dal6302024ex102.htm (EX-10.2) — 8KB
• dal6302024ex15.htm (EX-15) — 2KB
• dal6302024ex311.htm (EX-31.1) — 10KB
• dal6302024ex312.htm (EX-31.2) — 10KB
• dal6302024ex32.htm (EX-32) — 6KB
• dal-20240630_g1.jpg (GRAPHIC) — 21KB
• 0000027904-24-000009.txt ( ) — 6537KB
• dal-20240630.xsd (EX-101.SCH) — 37KB
• dal-20240630_cal.xml (EX-101.CAL) — 58KB
• dal-20240630_def.xml (EX-101.DEF) — 201KB
• dal-20240630_lab.xml (EX-101.LAB) — 417KB
• dal-20240630_pre.xml (EX-101.PRE) — 296KB
• dal-20240630_htm.xml (XML) — 1102KB

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 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 17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 31

Controls and Procedures

Item 4. Controls and Procedures 31

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Exhibits

Item 6. Exhibits 32 Signature 33

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. | June 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 June 30, 2024, the related condensed consolidated statements of operations and comprehensive income and consolidated statements of stockholders' equity for the three-month and six-month periods ended June 30, 2024 and 2023, condensed consolidated statements of cash flows for the six-month periods ended June 30, 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 i

Financial Statements

Financial Statements DELTA AIR LINES, INC. Consolidated Balance Sheets (Unaudited) (in millions, except share data) June 30, 2024 December 31, 2023 ASSETS Current Assets: Cash and cash equivalents $ 4,110 $ 2,741 Short-term investments 124 1,127 Accounts receivable, net of allowance for uncollectible accounts of $ 16 and $ 17 3,812 3,130 Fuel, expendable parts and supplies inventories, net of allowance for obsolescence of $ 129 and $ 123 1,486 1,314 Prepaid expenses and other 2,056 1,957 Total current assets 11,588 10,269 Noncurrent Assets: Property and equipment, net of accumulated depreciation and amortization of $ 22,477 and $ 21,707 36,339 35,486 Operating lease right-of-use assets 6,808 7,004 Goodwill 9,753 9,753 Identifiable intangibles, net of accumulated amortization of $ 915 and $ 911 5,979 5,983 Equity investments 3,022 3,457 Other noncurrent assets 1,708 1,692 Total noncurrent assets 63,609 63,375 Total assets $ 75,197 $ 73,644 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of debt and finance leases $ 2,950 $ 2,983 Current maturities of operating leases 775 759 Air traffic liability 9,437 7,044 Accounts payable 4,876 4,446 Accrued salaries and related benefits 3,655 4,561 Loyalty program deferred revenue 4,038 3,908 Fuel card obligation 1,100 1,100 Other accrued liabilities 1,928 1,617 Total current liabilities 28,759 26,418 Noncurrent Liabilities: Debt and finance leases 15,033 17,071 Pension, postretirement and related benefits 3,453 3,601 Loyalty program deferred revenue 4,596 4,512 Noncurrent operating leases 6,053 6,468 Deferred income taxes, net 1,410 908 Other noncurrent liabilities 3,507 3,561 Total noncurrent liabilities 34,052 36,121 Commitments and Contingencies Stockholders' Equity: Common stock at $ 0.0001 par value; 1,500,000,000 shares authorized, 654,682,022 and 654,671,194 shares issued — — Additional paid-in capital 11,647 11,641 Retained earnings

Financial Statements

Financial Statements DELTA AIR LINES, INC. Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) 2024 2023 2024 2023 Operating Revenue: Passenger $ 13,841 $ 13,205 $ 24,972 $ 23,616 Cargo 199 172 377 381 Other 2,618 2,201 5,057 4,340 Total operating revenue 16,658 15,578 30,406 28,337 Operating Expense: Salaries and related costs 4,012 3,692 7,803 7,078 Aircraft fuel and related taxes 2,813 2,516 5,410 5,192 Ancillary businesses and refinery 1,463 1,173 2,833 2,298 Contracted services 1,041 994 2,065 2,004 Landing fees and other rents 766 617 1,515 1,201 Aircraft maintenance materials and outside repairs 684 614 1,363 1,199 Depreciation and amortization 620 573 1,235 1,137 Passenger commissions and other selling expenses 672 651 1,222 1,152 Regional carrier expense 580 559 1,130 1,117 Passenger service 463 442 876 859 Profit sharing 519 595 644 667 Aircraft rent 138 132 274 264 Pilot agreement and related expenses — — — 864 Other 620 529 1,155 1,090 Total operating expense 14,391 13,087 27,525 26,122 Operating Income 2,267 2,491 2,881 2,215 Non-Operating Expense: Interest expense, net ( 188 ) ( 203 ) ( 394 ) ( 430 ) Gain/(loss) on investments, net ( 196 ) 128 ( 423 ) 251 Loss on extinguishment of debt ( 32 ) ( 29 ) ( 36 ) ( 50 ) Miscellaneous, net ( 78 ) ( 70 ) ( 133 ) ( 174 ) Total non-operating expense, net ( 494 ) ( 174 ) ( 986 ) ( 403 ) Income Before Income Taxes 1,773 2,317 1,895 1,812 Income Tax Provision ( 468 ) ( 490 ) ( 553 ) ( 348 ) Net Income $ 1,305 $ 1,827 $ 1,342 $ 1,464 Basic Earnings Per Share $ 2.04 $ 2.86 $ 2.10 $ 2.29 Diluted Earnings Per Share $ 2.01 $ 2.84 $ 2.08 $ 2.28 Comprehensive Income $ 1,358 $ 1,872 $ 1,447 $ 1,556 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. Delta Air Lines, Inc. | June 2024 Form 10-Q 4

Financial Statements

Financial Statements DELTA AIR LINES, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (in millions) 2024 2023 Net Cash Provided by Operating Activities $ 4,857 $ 4,843 Cash Flows from Investing Activities: Property and equipment additions: Flight equipment, including advance payments ( 1,891 ) ( 1,704 ) Ground property and equipment, including technology ( 611 ) ( 748 ) Purchase of short-term investments — ( 2,011 ) Redemption of short-term investments 1,013 1,961 Other, net 43 20 Net cash used in investing activities ( 1,446 ) ( 2,482 ) Cash Flows from Financing Activities: Payments on debt and finance lease obligations ( 2,149 ) ( 2,986 ) Cash dividends ( 128 ) — Other, net ( 22 ) ( 24 ) Net cash used in financing activities ( 2,299 ) ( 3,010 ) Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash Equivalents 1,112 ( 649 ) 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 $ 4,507 $ 2,824 Non-Cash Transactions: Right-of-use assets acquired or modified under operating leases $ 161 $ 144 Flight and ground equipment acquired or modified under finance leases 18 36 Operating leases converted to finance leases — 43 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: June 30, (in millions) 2024 2023 Current assets: Cash and cash equivalents $ 4,110 $ 2,668 Restricted cash included in prepaid expenses and other 114 156 Noncurrent assets: Restricted cash included in other noncurrent assets 283 — Total cash, cash equivalents and restricted cash equivalents $ 4,507 $ 2,824 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. Delta Air Lines, Inc. | June 2024 Form

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 Net income — — — 1,305 — — — 1,305 Dividends declared ($ 0.10 and $ 0.15 per share) — — — ( 162 ) — — — ( 162 ) Other comprehensive income — — — — 53 — — 53 Common stock issued for employee equity awards (1) ( 2 ) — ( 41 ) — — ( 3 ) 80 39 Balance at June 30, 2024 655 $ — $ 11,647 $ 6,765 $ ( 5,740 ) 9 $ ( 286 ) $ 12,386 (1) Treasury shares were withheld for payment of taxes, at a weighted average price per share of $ 39.83 and $ 50.04 in the March 2024 quarter and June 2024 quarter, respectively. 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 Net income — — — 1,827 — — — 1,827 Dividends declared ($ 0.10 per share) — — — ( 65 ) — — — ( 65 ) Other comprehensive income — — — — 45 — — 45 Common stock issued for employee equity awards (1) 1 — 34 — — — ( 1 ) 33 Balance at June 30, 2023 655 $ — $ 11,578 $ 2,569 $

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