Delta Air Lines Files Q3 2024 10-Q

TL;DR

Delta's Q3 10-Q is in: financials and ops updated for Sept 30, 2024. 🛫

AI Summary

Delta Air Lines, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial metrics and operational data are presented, reflecting the company's ongoing business activities in the air transportation sector.

Why It Matters

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

Risk Assessment

Risk Level: medium — Airline industry is subject to significant external factors like fuel prices, economic conditions, and regulatory changes, which can impact financial performance.

Key Players & Entities

• DELTA AIR LINES, INC. (company) — Filer of the 10-Q
• 20240930 (date) — Period of report for the 10-Q
• 20241010 (date) — Filing date of the 10-Q

FAQ

Key Financial Figures

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

Filing Documents

• dal-20240930.htm (10-Q) — 1574KB
• dal9302024ex101.htm (EX-10.1) — 97KB
• dal9302024ex102a.htm (EX-10.2A) — 104KB
• dal9302024ex102b.htm (EX-10.2B) — 114KB
• dal9302024ex15.htm (EX-15) — 2KB
• dal9302024ex311.htm (EX-31.1) — 10KB
• dal9302024ex312.htm (EX-31.2) — 10KB
• dal9302024ex32.htm (EX-32) — 6KB
• dal-20240930_g1.jpg (GRAPHIC) — 21KB
• image_1a.jpg (GRAPHIC) — 12KB
• 0000027904-24-000012.txt ( ) — 7015KB
• dal-20240930.xsd (EX-101.SCH) — 38KB
• dal-20240930_cal.xml (EX-101.CAL) — 59KB
• dal-20240930_def.xml (EX-101.DEF) — 203KB
• dal-20240930_lab.xml (EX-101.LAB) — 423KB
• dal-20240930_pre.xml (EX-101.PRE) — 299KB
• dal-20240930_htm.xml (XML) — 1112KB

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 16

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 32

Exhibits

Item 6. Exhibits 33 Signature 34

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

Financial Statements

Financial Statements DELTA AIR LINES, INC. Consolidated Balance Sheets (Unaudited) (in millions, except share data) September 30, 2024 December 31, 2023 ASSETS Current Assets: Cash and cash equivalents $ 3,969 $ 2,741 Short-term investments 8 1,127 Accounts receivable, net of allowance for uncollectible accounts of $ 17 and $ 17 3,550 3,130 Fuel, expendable parts and supplies inventories, net of allowance for obsolescence of $ 130 and $ 123 1,467 1,314 Prepaid expenses and other 2,068 1,957 Total current assets 11,062 10,269 Noncurrent Assets: Property and equipment, net of accumulated depreciation and amortization of $ 22,964 and $ 21,707 36,862 35,486 Operating lease right-of-use assets 6,686 7,004 Goodwill 9,753 9,753 Identifiable intangibles, net of accumulated amortization of $ 917 and $ 911 5,977 5,983 Equity investments 3,272 3,457 Other noncurrent assets 1,756 1,692 Total noncurrent assets 64,306 63,375 Total assets $ 75,368 $ 73,644 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of debt and finance leases $ 3,324 $ 2,983 Current maturities of operating leases 772 759 Air traffic liability 8,302 7,044 Accounts payable 4,545 4,446 Accrued salaries and related benefits 4,105 4,561 Loyalty program deferred revenue 4,122 3,908 Fuel card obligation 1,100 1,100 Other accrued liabilities 1,848 1,617 Total current liabilities 28,118 26,418 Noncurrent Liabilities: Debt and finance leases 14,373 17,071 Pension, postretirement and related benefits 3,404 3,601 Loyalty program deferred revenue 4,630 4,512 Noncurrent operating leases 5,919 6,468 Deferred income taxes, net 1,675 908 Other noncurrent liabilities 3,603 3,561 Total noncurrent liabilities 33,604 36,121 Commitments and Contingencies Stockholders' Equity: Common stock at $ 0.0001 par value; 1,500,000,000 shares authorized, 654,596,578 and 654,671,194 shares issued — — Additional paid-in capital 11,686 11,641 Retained earnin

Financial Statements

Financial Statements DELTA AIR LINES, INC. Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share data) 2024 2023 2024 2023 Operating Revenue: Passenger $ 13,107 $ 13,119 $ 38,079 $ 36,735 Cargo 196 154 574 535 Other 2,374 2,215 7,431 6,555 Total operating revenue 15,677 15,488 46,084 43,825 Operating Expense: Salaries and related costs 4,231 3,760 12,035 10,838 Aircraft fuel and related taxes 2,747 2,936 8,157 8,128 Ancillary businesses and refinery 1,250 1,128 4,083 3,427 Contracted services 1,069 1,004 3,134 3,009 Landing fees and other rents 832 679 2,347 1,880 Aircraft maintenance materials and outside repairs 627 661 1,990 1,860 Depreciation and amortization 643 594 1,878 1,731 Passenger commissions and other selling expenses 643 618 1,865 1,770 Regional carrier expense 600 546 1,731 1,664 Passenger service 463 449 1,339 1,307 Profit sharing 320 417 964 1,084 Aircraft rent 137 131 411 395 Pilot agreement and related expenses — — — 864 Other 718 581 1,872 1,669 Total operating expense 14,280 13,504 41,806 39,626 Operating Income 1,397 1,984 4,278 4,199 Non-Operating Income/(Expense): Interest expense, net ( 173 ) ( 196 ) ( 567 ) ( 627 ) Gain/(loss) on investments, net 350 ( 206 ) ( 73 ) 45 Loss on extinguishment of debt — ( 13 ) ( 36 ) ( 63 ) Miscellaneous, net ( 13 ) ( 48 ) ( 146 ) ( 221 ) Total non-operating income/(expense), net 164 ( 463 ) ( 822 ) ( 866 ) Income Before Income Taxes 1,561 1,521 3,456 3,333 Income Tax Provision ( 289 ) ( 413 ) ( 842 ) ( 761 ) Net Income $ 1,272 $ 1,108 $ 2,614 $ 2,572 Basic Earnings Per Share $ 1.98 $ 1.73 $ 4.08 $ 4.03 Diluted Earnings Per Share $ 1.97 $ 1.72 $ 4.04 $ 4.00 Comprehensive Income $ 1,321 $ 1,157 $ 2,768 $ 2,713 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. Delta Air Lines, Inc. |

Financial Statements

Financial Statements DELTA AIR LINES, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, (in millions) 2024 2023 Net Cash Provided by Operating Activities $ 6,131 $ 5,919 Cash Flows from Investing Activities: Property and equipment additions: Flight equipment, including advance payments ( 2,944 ) ( 2,560 ) Ground property and equipment, including technology ( 886 ) ( 1,161 ) Purchase of short-term investments — ( 2,312 ) Redemption of short-term investments 1,130 3,488 Acquisition of strategic investments — ( 152 ) Other, net 130 84 Net cash used in investing activities ( 2,570 ) ( 2,613 ) Cash Flows from Financing Activities: Payments on debt and finance lease obligations ( 2,411 ) ( 3,710 ) Cash dividends ( 225 ) ( 64 ) Other, net ( 34 ) ( 36 ) Net cash used in financing activities ( 2,670 ) ( 3,810 ) Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash Equivalents 891 ( 504 ) 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 $ 4,286 $ 2,969 Non-Cash Transactions: Right-of-use assets acquired or modified under operating leases $ 217 $ 443 Flight and ground equipment acquired or modified under finance leases ( 17 ) 37 Operating leases converted to finance leases — 53 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: September 30, (in millions) 2024 2023 Current assets: Cash and cash equivalents $ 3,969 $ 2,835 Restricted cash included in prepaid expenses and other 97 134 Noncurrent assets: Restricted cash included in other noncurrent assets 220 — Total cash, cash equivalents and restricted cash equivalents $ 4,286 $ 2,969 The accompanying notes are an integral part of these Condensed Consolid

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 Net income — — — 1,272 — — — 1,272 Dividends declared ($ 0.15 per share) — — — ( 97 ) — — — ( 97 ) Other comprehensive income — — — — 49 — — 49 Common stock issued for employee equity awards (1) — — 39 — — — ( 3 ) 36 Balance at September 30, 2024 655 $ — $ 11,686 $ 7,940 $ ( 5,691 ) 9 $ ( 289 ) $ 13,646 (1) Treasury shares were withheld for payment of taxes, at a weighted average price per share of $ 39.83 , $ 50.04 and $ 43.27 in the March 2024 quarter, June 2024 quarter and September 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 Ma

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