ATLANTA, Jan. 13, 2022 /PRNewswire/ -- Delta Air
Lines (NYSE:DAL) today reported financial results for the December
quarter and full year 2021 and provided its outlook for the March
quarter 2022. Highlights of the December quarter and full
year 2021 results, including both GAAP and adjusted metrics, are on
page five and are incorporated here.
"2021 was a year like no other for Delta, with significant
progress in our recovery supported by growing brand preference,
enabling us to be the only major U.S. airline to deliver
profitability across the second half of the year," said
Ed Bastian, Delta's chief executive
officer. "As always, our people drove this success, which is
why we were happy to announce this morning a special profit-sharing
payment for all eligible employees."
"While the rapidly spreading omicron variant has significantly
impacted staffing levels and disrupted travel across the industry,
Delta's operation has stabilized over the last week and returned to
pre-holiday performance," Bastian said. "Omicron is expected
to temporarily delay the demand recovery 60 days, but as we look
past the peak, we are confident in a strong spring and summer
travel season with significant pent-up demand for consumer and
business travel."
December Quarter 2021 Financial Results
- Adjusted pre-tax income of $170
million excludes a net impact of $564
million primarily in equity method losses, mark-to-market
adjustments on investments and special profit-sharing payment
- Adjusted operating revenue of $8.4
billion, which excludes third-party refinery sales, was 74
percent recovered versus December quarter 2019 on capacity that was
79 percent restored
- Total operating expense decreased $833
million compared to the December quarter 2019. Adjusted for
costs from third-party refinery sales, total operating expense
decreased $1.9 billion or 19% percent
in the December quarter 2021 versus the comparable 2019 period
- Remuneration from American Express in the quarter was
$1.2 billion, up 11 percent compared
to the December quarter 2019
- At the end of the December quarter, the company had
$14.2 billion in liquidity, including
cash and cash equivalents, short-term investments and undrawn
revolving credit facilities
Full Year 2021 Financial Results
- Adjusted pre-tax loss of $3.4
billion excludes a net benefit of $3.8 billion from items primarily related to the
Payroll Support Programs (PSP), partially offset by equity method
losses, debt extinguishment charges and special profit-sharing
payment
- Generated a pre-tax profit of $1.1
billion in the second half of 2021. Excluding PSP,
mark-to-market adjustments, equity method losses and debt
extinguishment charges reported an adjusted pre-tax profit of
$386 million in the second half of
2021
- Adjusted operating revenue of $26.7
billion, which excludes third-party refinery sales, was 57
percent recovered versus full year 2019 on capacity that was 71
percent restored
- Total operating expense, which includes $4.5 billion of benefit related to PSP, decreased
$12.4 billion compared to 2019.
Adjusted for the benefits related to PSP and costs from third-party
refinery sales, total operating expense, adjusted decreased
$10.9 billion or 27 percent versus
2019
- Remuneration from American Express for full year 2021 was
$4.0 billion, 98 percent restored
compared to full year 2019
- Invested $2.9 billion back in the
business and reduced financial obligations by $7 billion, including fully funding the pension
plans on a Pension Protection Act (PPA) basis
- The company had total debt and finance lease obligations of
$26.9 billion with adjusted net debt
of $20.6 billion at the end of
December 2021
March Quarter 2022 Outlook
|
|
1Q22
Forecast
|
|
Capacity
1
|
83% - 85%
|
|
Total Revenue 1,
2
|
72% - 76%
|
|
Fuel Price ($/gal)
2, 3
|
$2.35 -
$2.50
|
|
CASM-Ex 1, 2,
4
|
Up ~15%
|
|
Gross Capital
Expenditures 2
|
~$1.6
billion
|
|
Adjusted Net Debt
2
|
~$22
billion
|
1 Compared to March quarter
2019
|
2 Non-GAAP measure
|
3 Fuel guidance based on prices as of
January 11 (Brent at $81, cracks at $17, Monroe profit with RINS at
$1.31)
|
4 Includes an ~3 point impact of
operational disruption related cost
|
Revenue Environment
"The commercial strengths we spoke about last month at Capital
Markets Day are evident in our December quarter results. We
ended December with revenues nearly 80 percent recovered to 2019
levels on strong demand and pricing during the holiday period, our
premium products continued to perform well, we saw encouraging
trends in business and international travel and our diverse revenue
streams remained resilient," said Glen
Hauenstein, Delta's president.
"The recent rise in COVID cases associated with the omicron
variant is expected to impact the pace of demand recovery early in
the quarter, with recovery momentum resuming from President's Day
weekend forward. Factoring this in to our outlook, we expect
total March quarter revenue to recover to 72 to 76% of 2019 levels,
compared to 74% in the December quarter."
Operating revenue, adjusted of $8.4
billion for the December quarter 2021 improved 2 percent, or
$149 million from September quarter
2021. Compared to the same period in 2019, operating revenue,
adjusted was 74 percent restored, in line with the company's
mid-December guidance update on system capacity that was 79 percent
restored compared to December quarter 2019 levels.
Compared to the September quarter 2021, system yields improved 7
percent on a system load factor decline of 2 points to 78
percent. As a result, total unit revenue, adjusted improved 6
percent sequentially.
Revenue-related Highlights:
- Domestic revenue recovery progresses on strong holiday
demand: Domestic passenger revenue was 78 percent restored
compared to December quarter 2019, a 6 point sequential improvement
in the rate of recovery versus the September quarter 2021 driven by
robust leisure demand, improving corporate travel and strong
holiday bookings. International passenger revenue recovered to 50
percent of December quarter 2019 levels, an 8 point improvement
sequentially.
- Premium cabins continue to outperform main cabin:
Domestic and short-haul Latin premium product revenue recovery
outpaced main cabin by approximately 10 points, flat sequentially,
with Domestic premium revenues 84 percent recovered compared to
December quarter 2019.
- Business demand continues to improve: Business travel
continues to progress with domestic passenger volumes approaching
60 percent restored during the December quarter 2021. This includes
both managed corporate and Small and Medium Enterprises.
- American Express remuneration exceeded 2019 levels:
American Express remuneration of $1.2
billion in the quarter was up 11 percent compared to
December quarter 2019 and up 8 points sequentially. Co-brand spend
was 121 percent of December quarter 2019, driven by strong holiday
retail spend and T&E spend that exceeded December quarter 2019.
Co-brand card acquisitions were 86 percent recovered compared to
December quarter 2019.
- Cargo revenue achieves five consecutive quarters of positive
growth: Cargo revenue increased to $304
million, a 63 percent improvement compared to the December
quarter 2019 and up 24 points sequentially on strong holiday demand
and yields.
Cost Performance
"The Delta team executed incredibly well in 2021, delivering
another profitable quarter in an environment that remains dynamic,"
said Dan Janki, Delta's chief
financial officer. "With omicron impacting our near-term
outlook, we expect losses in January and February months with a
return to profitability in the month of March. Despite
expectations for a loss in the March quarter, we remain positioned
to generate a healthy profit in the June, September and December
quarters, resulting in a meaningful profit in 2022."
For 2021, total operating expense, adjusted of $29.2 billion decreased 27 percent compared to
full year 2019, driven by lower salaries and related benefits, fuel
and volume and selling-related expense. Non-fuel CASM for
2021 increased 11.4 percent versus 2019, on 29 percent lower
capacity over the same period.
Total operating expense, adjusted of $8.1
billion in the December quarter 2021 increased 3 percent
sequentially, driven by both higher fuel and non-fuel costs from
the continued restoration of the airline.
Fuel expense, adjusted of $1.6
billion in the December quarter 2021 increased 4 percent, or
$55 million compared to the September quarter 2021.
Adjusted fuel price of $2.10 per
gallon was up 8 percent compared to the September quarter 2021
driven by higher market prices and partially offset by continued
refinery contribution and an improvement in RINs pricing and volume
obligations. During the December quarter 2021, fuel
efficiency, defined as gallons per 1,000 ASMs, improved 4.3 percent
versus the same period in 2019 as a result of our fleet renewal
efforts. In addition, carbon offsets expensed during the
quarter drove a 3¢ impact on fuel prices as Delta supports its
commitment to carbon neutrality by pursuing high quality, verified
offsets.
Non-fuel cost, adjusted of $6.5
billion was up 3 percent sequentially on a 4 percent
decrease in capacity. This was driven primarily by
people-related and seasonal costs. Compared to the December
quarter of 2019, non-fuel unit costs (CASM-Ex) were 8.3 percent
higher, including a 1.2 point impact primarily due to omicron
disruptions the last two weeks of the December quarter.
Non-operating expense for the December quarter 2021 was
$658 million including equity method
losses, mark-to-market losses on certain investments and losses on
the extinguishment of debt. Non-operating expense, adjusted
was $175 million.
Balance Sheet, Cash and Liquidity
"During 2021, we made significant progress restoring our balance
sheet, reducing gross debt by $6
billion and fully funding our pension plans on a PPA basis,"
Janki said. "Reducing debt remains a top financial priority
as operating cash flow improves to support the return of our
balance sheet back to investment grade metrics by 2024."
At the end of the December quarter 2021, the company had total
debt and finance lease obligations of $26.9
billion with adjusted net debt of $20.6 billion and a weighted average interest
rate of 4.2 percent.
Operating cash flow during the December quarter 2021 was
$555 million. Free cash flow
was negative $441 million for the
quarter with gross capital expenditures reinvested in the business
of $948 million.
The company's Air Traffic Liability was $6.4 billion at December quarter-end,
approximately flat compared to the end of the September
quarter.
Delta ended the December quarter with $14.2 billion in liquidity, including
$2.9 billion in undrawn revolver
capacity.
Other Highlights from the December Quarter
2021
Culture and People
- Increased vaccination rates to more than 95 percent of
employees as Delta continues to prioritize the health and safety of
the Delta people
- Provided free, convenient COVID-19 testing options to Delta
people
- Celebrated 75 years of Delta
Cargo, which has played a pivotal role throughout the
pandemic transporting vaccines and personal protective equipment as
well as life-saving organs for transplant
- Committed to an eight-year partnership with LA28, making Delta
the inaugural founding partner of the Olympic and Paralympic Games
Los Angeles 2028 and a sponsor of the United States Olympic and
Paralympic teams through 2028. As Team USA's official airline, Delta will manage
travel for U.S. Olympians and Paralympians to Beijing 2022, Paris 2024, Milano Cortina 2026 and
Los Angeles 2028
- Celebrated 200 Chairman's Club inductees through a historic
25th annual gala; this special one-time class of 200
honorees were recognized for embodying the spirit of Delta
Customer Experience and Loyalty
- Named No. 1 in the annual Business Travel News Airline Survey
for the 11th consecutive year, sweeping all categories for the 8th
straight year
- Opened the first-ever Delta-TSA PreCheck express lobby and bag
drop at Hartsfield-Jackson Atlanta International Airport, with
expanded facial recognition capabilities for touch-free, seamless
entry
- Installed high-speed Viasat-powered Wi-Fi on 300 aircraft in
2021, enabling customers on Delta's most popular routes to stream
and browse their favorite sites at fast speeds for a simple, flat
rate of $5 per flight
- Launched in-flight entertainment partnership with leading
interactive fitness platform Peloton to offer exclusive well-being
focused content, giving customers more ways to stretch and unwind
at their seats
- Enhanced Delta FlyReady, a digital solution that takes the
guesswork out of international travel in the pandemic era, enabling
customers to understand and manage entry requirements at their
destination
- Extended Medallion Status for current Medallion members and
rolled over all Medallion Qualification Miles for the second year
in a row
- Launched updates to Global Upgrade Certificates, allowing
customers more access to premium seats in Delta Premium Select
Environmental, Social and Governance
- Announced strengthening of executive leadership team with the
hiring of Pam Fletcher as the
industry's only C-suite Chief Sustainability Officer
- Recognized as the No. 1 transportation company on The Just 100:
Companies Doing Right By America and an overall ranking of No. 38
on the comprehensive global list
- Promoted health equity and responded to employee feedback with
a new 2022 healthcare option designed to increase predictability
and lower unplanned, out-of-pocket expenses for plan
participants
- Engaged senior leaders in Racial Equity Leadership Workshops,
led by the Groundwater Institute
- Built upon Delta's commitment to supplier diversity by
launching vodka from Du Nord Social Spirits, America's first
Black-owned distillery, on all domestic flights and Une Femme's 100
percent women-made wine on select flights
- Concluded 2021 with a robust set of climate-related goals
including committing to set a medium-term science-based target for
our global airline as well as a net zero emissions target for 2050,
both aligned with the SBTi framework and the UN Race to Zero
- Signed 27 SAF agreements with corporate and agency customers in
2021. Beginning in 2025, Delta expects to receive 81 million
gallons of SAF annually from producers Aemetis, Gevo, Neste and
NWABF
December Quarter and Full Year 2021 Results
December quarter and full year results have been adjusted
primarily for the government grant recognition, impairments and
equity method losses, losses on extinguishment of debt, unrealized
losses on investments, special profit-sharing payment and
third-party refinery sales as described in the reconciliations in
Note A.
|
GAAP
|
Adjusted
|
GAAP
|
Adjusted
|
($ in millions except
per share and unit costs)
|
4Q21
|
4Q19
|
4Q21
|
4Q19
|
FY21
|
FY19
|
FY21
|
FY19
|
Pre-tax
(loss)/income
|
(395)
|
1,397
|
170
|
1,417
|
398
|
6,198
|
(3,415)
|
6,214
|
Net
(loss)/income
|
(408)
|
1,099
|
143
|
1,098
|
280
|
4,767
|
(2,598)
|
4,776
|
(Loss)/diluted
earnings per share
|
(0.64)
|
1.71
|
0.22
|
1.70
|
0.44
|
7.30
|
(4.08)
|
7.32
|
Pre-tax
margin
|
(4.2)%
|
12.2 %
|
2.0 %
|
12.4 %
|
1.3 %
|
13.2 %
|
(12.8)%
|
13.3 %
|
Operating
revenue
|
9,470
|
11,439
|
8,430
|
11,384
|
29,899
|
47,007
|
26,670
|
46,718
|
Total revenue per
available seat mile (TRASM) (cents)
|
18.30
|
17.47
|
16.29
|
17.39
|
15.37
|
17.07
|
13.71
|
16.97
|
Operating
expense
|
9,207
|
10,040
|
8,086
|
9,961
|
28,013
|
40,389
|
29,197
|
40,082
|
Capital
expenditures
|
1,217
|
1,072
|
948
|
954
|
3,247
|
4,936
|
2,876
|
5,306
|
Total debt and
finance lease obligations
|
26,920
|
11,160
|
|
|
26,920
|
11,160
|
|
|
Adjusted net
debt
|
|
|
20,581
|
10,489
|
|
|
20,581
|
10,489
|
Cost per available
seat mile (CASM) (cents)
|
17.79
|
15.34
|
12.56
|
11.59
|
14.40
|
14.67
|
12.12
|
10.88
|
Fuel
expense
|
1,577
|
2,012
|
1,588
|
1,983
|
5,633
|
8,519
|
5,625
|
8,477
|
Average fuel price
per gallon
|
2.09
|
2.01
|
2.10
|
1.99
|
2.02
|
2.02
|
2.02
|
2.01
|
Non-operating
expense
|
658
|
2
|
175
|
6
|
1,488
|
420
|
888
|
422
|
Operating cash flow /
free cash flow
|
555
|
969
|
(441)
|
141
|
3,264
|
8,425
|
1,255
|
4,164
|
About Delta Air Lines In a world that
thrives on connection, no one better connects the world than Delta
Air Lines (NYSE: DAL). Powered by its people around the world,
Delta is the U.S. global airline leader in safety, innovation,
reliability and customer experience. Delta was named by J.D. Power
& Associates as the No. 1 airline in its 2021 North American
Satisfaction Study, a recognition of its decade-long airline
industry leadership in operational excellence and award-winning
customer service.
Delta is a values-driven company with a mission of connecting
the people and cultures of the globe, striving to foster
understanding across a diverse world. Delta is the first airline to
commit to becoming carbon neutral on a global basis by focusing on
carbon reductions and removals, stakeholder engagement, and
coalition building. Delta's long-term vision is zero-impact
aviation: air travel that does not damage the environment directly
or indirectly via greenhouse gas emissions, noise, waste generation
or other environmental impacts. Its people are committed to these
values while leading the way in ensuring safe, reliable and
comfortable travel.
Forward Looking Statements
Statements made in this press release that are not historical
facts, including statements regarding our estimates, expectations,
beliefs, intentions, projections, goals, aspirations, commitments
or strategies for the future, should be considered "forward-looking
statements" under the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995. Such statements are not
guarantees or promised outcomes and should not be construed as
such. All forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from the estimates, expectations, beliefs, intentions, projections,
goals, aspirations, commitments and strategies reflected in or
suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to, the material adverse
effect that the COVID-19 pandemic is having on our business; the
impact of incurring significant debt in response to the pandemic;
failure to comply with the financial and other covenants in our
financing agreements; the possible effects of accidents involving
our aircraft or aircraft of our airline partners; breaches or
lapses in the security of technology systems on which we rely;
disruptions in our information technology infrastructure; our
dependence on technology in our operations; our commercial
relationships with airlines in other parts of the world and the
investments we have in certain of those airlines; the effects of a
significant disruption in the operations or performance of third
parties on which we rely; failure to realize the full value of
intangible or long-lived assets; labor issues; the effects of
weather, natural disasters and seasonality on our business; the
cost of aircraft fuel; the availability of aircraft fuel; failure
or inability of insurance to cover a significant liability at
Monroe's Trainer refinery; failure
to comply with existing and future environmental regulations to
which Monroe's refinery operations
are subject, including costs related to compliance with renewable
fuel standard regulations; our ability to retain senior management
and other key employees, and to maintain our company culture;
significant damage to our reputation and brand, including from
exposure to significant adverse publicity; the effects of terrorist
attacks, geopolitical conflict or security events; competitive
conditions in the airline industry; extended interruptions or
disruptions in service at major airports at which we operate or
significant problems associated with types of aircraft or engines
we operate; the effects of extensive government regulation we are
subject to; the impact of environmental regulation, including
increased regulation to reduce emissions and other risks associated
with climate change, on our business; and unfavorable economic or
political conditions in the markets in which we operate or
volatility in currency exchange rates.
Additional information concerning risks and uncertainties that
could cause differences between actual results and forward-looking
statements is contained in our Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the fiscal
year ended December 31, 2020 and our
Quarterly Report for the quarterly period ended September 30, 2021. Caution should be taken not
to place undue reliance on our forward-looking statements, which
represent our views only as of the date of this press release, and
which we undertake no obligation to update except to the extent
required by law.
DELTA AIR LINES,
INC.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
(in millions, except
per share data)
|
2021
|
2019
|
$
Change
|
%
Change
|
|
2021
|
2019
|
$
Change
|
%
Change
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$
7,241
|
$
10,245
|
$
(3,004)
|
(29)%
|
|
$
22,519
|
$
42,277
|
$
(19,758)
|
(47)%
|
Cargo
|
304
|
187
|
117
|
63%
|
|
1,032
|
753
|
279
|
37%
|
Other
|
1,925
|
1,007
|
918
|
91%
|
|
6,348
|
3,977
|
2,371
|
60%
|
Total operating
revenue
|
9,470
|
11,439
|
(1,969)
|
(17)%
|
|
29,899
|
47,007
|
(17,108)
|
(36)%
|
|
|
|
|
|
|
|
|
|
|
Operating
Expense:
|
|
|
|
|
|
|
|
|
|
Salaries and related
costs
|
2,632
|
3,046
|
(414)
|
(14)%
|
|
9,728
|
11,601
|
(1,873)
|
(16)%
|
Aircraft fuel and
related taxes
|
1,577
|
2,012
|
(435)
|
(22)%
|
|
5,633
|
8,519
|
(2,886)
|
(34)%
|
Ancillary businesses
and refinery
|
1,233
|
299
|
934
|
NM
|
|
3,957
|
1,245
|
2,712
|
NM
|
Contracted
services
|
697
|
742
|
(45)
|
(6)%
|
|
2,420
|
2,942
|
(522)
|
(18)%
|
Landing fees and other
rents
|
542
|
538
|
4
|
1%
|
|
2,019
|
2,176
|
(157)
|
(7)%
|
Depreciation and
amortization
|
504
|
622
|
(118)
|
(19)%
|
|
1,998
|
2,581
|
(583)
|
(23)%
|
Regional carrier
expense
|
478
|
536
|
(58)
|
(11)%
|
|
1,736
|
2,158
|
(422)
|
(20)%
|
Aircraft maintenance
materials and outside repairs
|
386
|
417
|
(31)
|
(7)%
|
|
1,401
|
1,751
|
(350)
|
(20)%
|
Passenger commissions
and other selling expenses
|
313
|
542
|
(229)
|
(42)%
|
|
953
|
2,211
|
(1,258)
|
(57)%
|
Passenger
service
|
236
|
325
|
(89)
|
(27)%
|
|
756
|
1,312
|
(556)
|
(42)%
|
Aircraft
rent
|
118
|
105
|
13
|
12%
|
|
430
|
423
|
7
|
2%
|
Restructuring
charges
|
(16)
|
—
|
(16)
|
NM
|
|
(19)
|
—
|
(19)
|
NM
|
Profit
sharing
|
108
|
387
|
(279)
|
(72)%
|
|
108
|
1,643
|
(1,535)
|
(93)%
|
Government grant
recognition
|
—
|
—
|
—
|
NM
|
|
(4,512)
|
—
|
(4,512)
|
NM
|
Other
|
399
|
469
|
(70)
|
(15)%
|
|
1,405
|
1,827
|
(422)
|
(23)%
|
Total operating
expense
|
9,207
|
10,040
|
(833)
|
(8)%
|
|
28,013
|
40,389
|
(12,376)
|
(31)%
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
263
|
1,399
|
(1,136)
|
(81)%
|
|
1,886
|
6,618
|
(4,732)
|
(72)%
|
|
|
|
|
|
|
|
|
|
|
Non-Operating
Expense:
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(265)
|
(72)
|
(193)
|
NM
|
|
(1,279)
|
(301)
|
(978)
|
NM
|
Impairments and equity
method (losses)/gains
|
(232)
|
18
|
(250)
|
NM
|
|
(337)
|
(62)
|
(275)
|
NM
|
Gain/(Loss) on
investments, net
|
(197)
|
136
|
(333)
|
NM
|
|
56
|
119
|
(63)
|
(53)%
|
Loss on extinguishment
of debt
|
(54)
|
—
|
(54)
|
NM
|
|
(319)
|
—
|
(319)
|
NM
|
Miscellaneous,
net
|
90
|
(84)
|
174
|
NM
|
|
391
|
(176)
|
567
|
NM
|
Total
non-operating expense, net
|
(658)
|
(2)
|
(656)
|
NM
|
|
(1,488)
|
(420)
|
(1,068)
|
NM
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Income Before
Income Taxes
|
(395)
|
1,397
|
(1,792)
|
NM
|
|
398
|
6,198
|
(5,800)
|
(94)%
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Provision
|
(13)
|
(298)
|
285
|
(96)%
|
|
(118)
|
(1,431)
|
1,313
|
(92)%
|
|
|
|
|
|
|
|
|
|
|
Net
(Loss)/Income
|
(408)
|
1,099
|
(1,507)
|
NM
|
|
$
280
|
$
4,767
|
$
(4,487)
|
(94)%
|
|
|
|
|
|
|
|
|
|
|
Basic
(Loss)/Earnings Per Share
|
$
(0.64)
|
$
1.71
|
|
|
|
$
0.44
|
$
7.32
|
|
|
Diluted
(Loss)/Earnings Per Share
|
$
(0.64)
|
$
1.71
|
|
|
|
$
0.44
|
$
7.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Shares Outstanding
|
637
|
642
|
|
|
|
636
|
651
|
|
|
Diluted Weighted
Average Shares Outstanding
|
637
|
644
|
|
|
|
641
|
653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Passenger
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
(in
millions)
|
2021
|
2019
|
$
Change
|
%
Change
|
|
2021
|
2019
|
$
Change
|
%
Change
|
Ticket - Main
cabin
|
$
3,687
|
$
5,238
|
$
(1,551)
|
(30)%
|
|
$
11,626
|
$
21,919
|
$
(10,293)
|
(47)%
|
Ticket - Business
cabin and premium products
|
2,585
|
3,684
|
(1,099)
|
(30)%
|
|
7,713
|
14,989
|
(7,276)
|
(49)%
|
Loyalty travel
awards
|
573
|
726
|
(153)
|
(21)%
|
|
1,786
|
2,900
|
(1,114)
|
(38)%
|
Travel-related
services
|
396
|
597
|
(201)
|
(34)%
|
|
1,394
|
2,469
|
(1,075)
|
(44)%
|
Total passenger
revenue
|
$
7,241
|
$
10,245
|
$
(3,004)
|
(29)%
|
|
$
22,519
|
$
42,277
|
$
(19,758)
|
(47)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Other
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
(in
millions)
|
2021
|
2019
|
$
Change
|
%
Change
|
|
2021
|
2019
|
$
Change
|
%
Change
|
Refinery
|
$
1,040
|
$
2
|
$
1,038
|
NM
|
|
$
3,229
|
$
97
|
$
3,132
|
NM
|
Loyalty
program
|
510
|
519
|
(9)
|
(2)%
|
|
1,770
|
1,962
|
(192)
|
(10)%
|
Ancillary
businesses
|
207
|
305
|
(98)
|
(32)%
|
|
793
|
1,200
|
(407)
|
(34)%
|
Miscellaneous
|
168
|
181
|
(13)
|
(7)%
|
|
556
|
718
|
(162)
|
(23)%
|
Total other
revenue
|
$
1,925
|
$
1,007
|
$
918
|
91%
|
|
$
6,348
|
$
3,977
|
$
2,371
|
60%
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Total
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(Decrease)
|
|
|
|
|
4Q21 versus
4Q19
|
Revenue
|
|
4Q21
($M)
|
|
Change
|
Unit
Revenue
|
Yield
|
Capacity
|
Domestic
|
$
|
5,951
|
|
(22)%
|
(13)%
|
(9)%
|
(10)%
|
Atlantic
|
|
617
|
|
(53)%
|
(20)%
|
—%
|
(42)%
|
Latin
America
|
|
560
|
|
(20)%
|
(13)%
|
(3)%
|
(8)%
|
Pacific
|
|
113
|
|
(81)%
|
(37)%
|
61%
|
(69)%
|
Total
Passenger
|
$
|
7,241
|
|
(29)%
|
(11)%
|
(2)%
|
(21)%
|
Cargo
Revenue
|
|
304
|
|
63%
|
|
|
|
Other
Revenue
|
|
1,925
|
|
91%
|
|
|
|
Total
Revenue
|
$
|
9,470
|
|
(17)%
|
5%
|
|
|
Third Party
Refinery Sales
|
|
(1,040)
|
|
|
|
|
|
Total Revenue,
adjusted
|
$
|
8,430
|
|
(26)%
|
(6)%
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Statistical
Summary
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
2021
|
2019
|
Change
|
|
2021
|
2019
|
Change
|
Revenue passenger
miles (millions)
|
40,402
|
56,028
|
(28)
|
%
|
|
134,692
|
237,680
|
(43)
|
%
|
Available seat miles
(millions)
|
51,744
|
65,468
|
(21)
|
%
|
|
194,474
|
275,379
|
(29)
|
%
|
Passenger mile yield
(cents)
|
17.92
|
18.29
|
(2)
|
%
|
|
16.72
|
17.79
|
(6)
|
%
|
Passenger revenue per
available seat mile (cents)
|
13.99
|
15.65
|
(11)
|
%
|
|
11.58
|
15.35
|
(25)
|
%
|
Total revenue per
available seat mile (cents)
|
18.30
|
17.47
|
5
|
%
|
|
15.37
|
17.07
|
(10)
|
%
|
TRASM, adjusted - see
Note A (cents)
|
16.29
|
17.39
|
(6)
|
%
|
|
13.71
|
16.97
|
(19)
|
%
|
Cost per available
seat mile (cents)
|
17.79
|
15.34
|
16
|
%
|
|
14.40
|
14.67
|
(2)
|
%
|
CASM-Ex - see
Note A (cents)
|
12.56
|
11.59
|
8
|
%
|
|
12.12
|
10.88
|
11
|
%
|
Passenger load
factor
|
78%
|
86%
|
(8)
|
pts
|
|
69%
|
86%
|
(17)
|
pts
|
Fuel gallons consumed
(millions)
|
755
|
999
|
(24)
|
%
|
|
2,778
|
4,214
|
(34)
|
%
|
Average price per
fuel gallon
|
$
2.09
|
$
2.01
|
4
|
%
|
|
$
2.02
|
$
2.02
|
—
|
%
|
Average price per
fuel gallon, adjusted - see Note A
|
$
2.10
|
$
1.99
|
6
|
%
|
|
$
2.02
|
$
2.01
|
—
|
%
|
DELTA AIR LINES,
INC.
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
(in
millions)
|
2021
|
2019
|
|
Cash Flows From
Operating Activities:
|
|
|
|
Net
(loss)/income
|
$
(408)
|
$
1,099
|
|
Depreciation and
amortization
|
504
|
622
|
|
Changes in air
traffic liability
|
(18)
|
(647)
|
|
Changes in balance
sheet and other, net
|
477
|
(105)
|
|
Net cash provided by
operating activities
|
555
|
969
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Property and
equipment additions:
|
|
|
|
Flight equipment,
including advance payments
|
(635)
|
(570)
|
|
Ground property and
equipment, including technology
|
(583)
|
(502)
|
|
Purchase of
short-term investments
|
(1,856)
|
—
|
|
Redemption of
short-term investments
|
2,878
|
—
|
|
Other, net
|
(283)
|
293
|
|
Net cash used in
investing activities
|
(479)
|
(779)
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Payments on debt and
finance lease obligations
|
(1,148)
|
(516)
|
|
Repurchase of common
stock
|
—
|
(225)
|
|
Proceeds from
long-term obligations
|
—
|
1,557
|
|
Cash
dividends
|
—
|
(259)
|
|
Fuel card
obligation
|
—
|
297
|
|
Other, net
|
(19)
|
(12)
|
|
Net cash (used
in)/provided by financing activities
|
(1,167)
|
842
|
|
|
|
|
|
Net
(Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash
Equivalents
|
(1,091)
|
1,032
|
|
Cash, cash
equivalents and restricted cash equivalents at beginning of
period
|
$
9,660
|
$
2,698
|
|
Cash, cash
equivalents and restricted cash equivalents at end of
period
|
$
8,569
|
$
3,730
|
|
|
|
|
|
The following table
provides a reconciliation of cash, cash equivalents and restricted
cash reported within the Consolidated Balance Sheets to the total
of the same
such amounts shown above:
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
7,933
|
$
2,882
|
|
Restricted cash included in
prepaid expenses and other
|
163
|
212
|
|
Other
assets:
|
|
|
|
Cash restricted for airport
construction
|
473
|
636
|
|
Total cash, cash
equivalents and restricted cash equivalents
|
$
8,569
|
$
3,730
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
(in
millions)
|
2021
|
|
2020
|
ASSETS
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
7,933
|
|
$
8,307
|
|
Short-term
investments
|
3,386
|
|
5,789
|
|
Accounts receivable,
net
|
2,404
|
|
1,396
|
|
Fuel
inventory
|
694
|
|
377
|
|
Expendable parts and
supplies inventories, net
|
404
|
|
355
|
|
Prepaid expenses and
other
|
1,119
|
|
1,180
|
|
Total current
assets
|
15,940
|
|
17,404
|
|
|
|
|
|
Property and
Equipment, Net:
|
|
|
|
|
Property and
equipment, net
|
28,749
|
|
26,529
|
|
|
|
|
|
Other
Assets:
|
|
|
|
|
Operating lease
right-of-use assets
|
7,173
|
|
5,733
|
|
Goodwill
|
9,753
|
|
9,753
|
|
Identifiable
intangibles, net
|
6,001
|
|
6,011
|
|
Cash restricted for
airport construction
|
473
|
|
1,556
|
|
Equity
investments
|
1,712
|
|
1,665
|
|
Deferred income
taxes, net
|
1,370
|
|
1,988
|
|
Other noncurrent
assets
|
1,300
|
|
1,357
|
|
Total other
assets
|
27,782
|
|
28,063
|
Total
assets
|
$
72,471
|
|
$
71,996
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
Liabilities:
|
|
|
|
|
Current maturities of
debt and finance leases
|
$
1,782
|
|
$
1,732
|
|
Current maturities of
operating leases
|
693
|
|
678
|
|
Air traffic
liability
|
6,228
|
|
4,044
|
|
Accounts
payable
|
4,240
|
|
2,840
|
|
Accrued salaries and
related benefits
|
2,457
|
|
2,086
|
|
Loyalty program
deferred revenue
|
2,710
|
|
1,777
|
|
Fuel card
obligation
|
1,100
|
|
1,100
|
|
Other accrued
liabilities
|
1,746
|
|
1,670
|
|
Total current
liabilities
|
20,956
|
|
15,927
|
|
|
|
|
|
Noncurrent
Liabilities:
|
|
|
|
|
Debt and finance
leases
|
25,138
|
|
27,425
|
|
Noncurrent air
traffic liability
|
130
|
|
500
|
|
Pension,
postretirement and related benefits
|
6,364
|
|
10,630
|
|
Loyalty program
deferred revenue
|
4,849
|
|
5,405
|
|
Noncurrent operating
leases
|
7,002
|
|
5,713
|
|
Other noncurrent
liabilities
|
4,398
|
|
4,862
|
|
Total noncurrent
liabilities
|
47,881
|
|
54,535
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
3,634
|
|
1,534
|
Total liabilities and
stockholders' equity
|
$
72,471
|
|
$
71,996
|
Note A: The following tables show reconciliations of non-GAAP
financial measures. The reasons Delta uses these measures are
described below. Reconciliations may not calculate due to
rounding.
Delta sometimes uses information ("non-GAAP financial measures")
that is derived from the Consolidated Financial Statements, but
that is not presented in accordance with accounting principles
generally accepted in the U.S. ("GAAP"). Under the Securities and
Exchange Commission rules, non-GAAP financial measures may be
considered in addition to results prepared in accordance with GAAP,
but should not be considered a substitute for or superior to GAAP
results. The tables below show reconciliations of non-GAAP
financial measures used in this release to the most directly
comparable GAAP financial measures.
Forward Looking Projections. Delta is not able to
reconcile forward looking non-GAAP financial measures without
unreasonable effort because the adjusting items such as those used
in the reconciliations below will not be known until the end of the
period and could be significant.
Adjustments. These reconciliations include certain
adjustments to GAAP measures, which are directly related to the
impact of COVID-19 and our response. These adjustments are made to
provide comparability between the reported periods, if applicable,
as indicated below:
Restructuring charges.
During 2020, we recorded restructuring charges for items such as
fleet impairments and voluntary early retirement and separation
programs following strategic business decisions in response to the
COVID-19 pandemic. In the December quarter 2021 and full year 2021
we recognized $16 million and
$19 million, respectively, of adjustments to certain of those
restructuring charges, representing changes in our estimates.
Government grant
recognition. We recognized $4.5 billion of the grant proceeds from the
payroll support program extensions as contra-expense during the
full year 2021. We recognized the grant proceeds as contra-expense
based on the periods that the funds were intended to compensate and
fully used all proceeds from the payroll support program extensions
as of the end of the September quarter 2021.
Impairments and equity method
losses. This adjustment relates to recording our share of the
losses recorded by our equity method investees.
Loss on extinguishment of
debt. This adjustment relates to early termination of a portion
of our debt.
Special profit-sharing
payment. This adjustment is exclusive to 2021. To
recognize the extraordinary efforts of our employees through the
pandemic, we will make a special profit-sharing payment to eligible
employees in February 2022, based on
the adjusted pre-tax profit earned during the second half of
2021.This adjustment allows investors to better understand and
analyze our recurring cost performance and provides a more
meaningful comparison of our core operating costs to the airline
industry.
We also regularly adjust certain GAAP measures for the following
items, if applicable, for the reasons indicated below:
MTM adjustments and settlements
on hedges. Mark-to-market ("MTM") adjustments are
defined as fair value changes recorded in periods other than the
settlement period. Such fair value changes are not necessarily
indicative of the actual settlement value of the underlying hedge
in the contract settlement period, and therefore we remove this
impact to allow investors to better understand and analyze our core
performance. Settlements represent cash received or paid on hedge
contracts settled during the applicable period.
Equity investment MTM
adjustments. We adjust for our proportionate share of our
equity method investee, Virgin Atlantic's, hedge portfolio MTM
adjustments (recorded in non-operating expense) to allow investors
to understand and analyze our core operational performance in the
periods shown.
MTM adjustments on
investments. Unrealized gains/losses result from our
equity investments that are accounted for at fair value in
non-operating expense. The gains/losses are driven by changes in
stock prices, foreign currency fluctuations and other valuation
techniques for investments in companies without publicly-traded
shares. Adjusting for these gains/losses allows investors to better
understand and analyze our core operational performance in the
periods shown.
Third-party refinery sales.
Refinery sales to third parties, and related expenses, are not
related to our airline segment. Excluding these sales therefore
provides a more meaningful comparison of our airline operations to
the rest of the airline industry.
Aircraft fuel and related
taxes. The volatility in fuel prices impacts the comparability
of year-over-year financial performance. The adjustment for
aircraft fuel and related taxes allows investors to better
understand and analyze our non-fuel costs and year-over-year
financial performance.
Profit sharing. We
adjust for profit sharing because this adjustment allows investors
to better understand and analyze our recurring cost performance and
provides a more meaningful comparison of our core operating costs
to the airline industry.
Delta Private Jets
adjustment. Because we combined Delta Private Jets with Wheels
Up in January 2020, we have excluded
the impact of Delta Private Jets from 2019 results for
comparability.
Pre-Tax (Loss)/Income, Net (Loss)/Income, and
(Loss)/Diluted Earnings per Share, adjusted
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2021
|
|
December 31,
2021
|
|
Pre-Tax
|
Income
|
Net
|
|
(Loss)/Diluted
|
(in millions, except
per share data)
|
(Loss)/Income
|
Tax
|
(Loss)/Income
|
|
Earnings Per
Share
|
GAAP
|
$
(395)
|
$
(13)
|
$
(408)
|
|
$
(0.64)
|
Adjusted
for:
|
|
|
|
|
|
Restructuring
charges
|
(16)
|
|
|
|
|
Impairments and equity
method losses
|
232
|
|
|
|
|
Loss on extinguishment
of debt
|
54
|
|
|
|
|
Special profit sharing
payment
|
108
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(11)
|
|
|
|
|
MTM adjustments on
investments
|
197
|
|
|
|
|
Non-GAAP
|
$
170
|
$
(27)
|
$
143
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2019
|
|
Pre-Tax
|
Income
|
Net
|
|
Diluted
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per
Share
|
GAAP
|
$
1,397
|
$
(298)
|
$
1,099
|
|
$
1.71
|
Adjusted
for:
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
22
|
|
|
|
|
Equity investment MTM
adjustments
|
(1)
|
|
|
|
|
MTM adjustments on
investments
|
(3)
|
|
|
|
|
Delta Private Jets
adjustment
|
2
|
|
|
|
|
Non-GAAP
|
$
1,417
|
$
(319)
|
$
1,098
|
|
$
1.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
December 31,
2021
|
|
|
|
(in
millions)
|
Pre-Tax
Income
|
|
|
|
GAAP
|
|
$
1,137
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Restructuring
charges
|
|
17
|
|
|
|
Government grant
recognition
|
|
(1,822)
|
|
|
|
Impairments and equity
method losses
|
|
281
|
|
|
|
Loss on extinguishment
of debt
|
|
237
|
|
|
|
Special profit sharing
payment
|
|
108
|
|
|
|
MTM adjustments and
settlements on hedges
|
|
8
|
|
|
|
MTM adjustments on
investments
|
|
420
|
|
|
|
Non-GAAP
|
|
$
386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2021
|
|
December 31,
2021
|
|
Pre-Tax
|
Income
|
Net
|
|
(Loss)/Diluted
|
(in millions, except
per share data)
|
(Loss)/Income
|
Tax
|
(Loss)/Income
|
|
Earnings Per
Share
|
GAAP
|
$
398
|
$
(118)
|
$
280
|
|
$
0.44
|
Adjusted
for:
|
|
|
|
|
|
Restructuring
charges
|
(19)
|
|
|
|
|
Government grant
recognition
|
(4,512)
|
|
|
|
|
Impairments and equity
method losses
|
337
|
|
|
|
|
Loss on extinguishment
of debt
|
319
|
|
|
|
|
Special profit sharing
payment
|
108
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
9
|
|
|
|
|
MTM adjustments on
investments
|
(56)
|
|
|
|
|
Non-GAAP
|
$
(3,415)
|
$
817
|
$
(2,598)
|
|
$
(4.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2019
|
|
Pre-Tax
|
Income
|
Net
|
|
Diluted
Earnings
|
(in millions, except
per share data)
|
Income
|
Tax
|
Income
|
|
Per
Share
|
GAAP
|
$
6,198
|
$
(1,431)
|
$
4,767
|
|
$
7.30
|
Adjusted
for:
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
14
|
|
|
|
|
Equity investment MTM
adjustments
|
(14)
|
|
|
|
|
MTM adjustments on
investments
|
13
|
|
|
|
|
Delta Private Jets
adjustment
|
3
|
|
|
|
|
Non-GAAP
|
$
6,214
|
$
(1,438)
|
$
4,776
|
|
$
7.32
|
Pre-Tax Margin, adjusted
|
|
Three Months
Ended
|
|
December 31,
2021
|
December 31,
2019
|
Pre-tax
margin
|
(4.2)%
|
12.2%
|
Adjusted
for:
|
|
|
Restructuring
charges
|
(0.2)
|
—
|
Impairments and equity
method losses
|
2.5
|
—
|
Loss on extinguishment
of debt
|
0.6
|
—
|
Special profit sharing
payment
|
1.1
|
—
|
MTM adjustments and
settlements on hedges
|
(0.1)
|
0.2
|
MTM adjustments on
investments
|
2.1
|
—
|
Third-party refinery
sales
|
0.2
|
0.1
|
Pre-tax margin,
adjusted
|
2.0%
|
12.4%
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
December 31,
2021
|
December 31,
2019
|
Pre-tax
margin
|
1.3%
|
13.2%
|
Adjusted
for:
|
|
|
Restructuring
charges
|
(0.1)
|
—
|
Government grant
recognition
|
(15.1)
|
—
|
Impairments and equity
method losses
|
1.1
|
—
|
Loss on extinguishment
of debt
|
1.1
|
—
|
Special profit sharing
payment
|
0.4
|
—
|
MTM adjustments on
investments
|
(0.2)
|
—
|
Third-party refinery
sales
|
(1.4)
|
0.1
|
Pre-tax margin,
adjusted
|
(12.8)%
|
13.3%
|
Operating Revenue, adjusted and Total Revenue Per Available
Seat Mile ("TRASM"), adjusted
|
|
|
Three Months
Ended
|
|
4Q21 vs
4Q19
%
Change
|
(in
millions)
|
|
December 31,
2021
|
September 30,
2021
|
December 31,
2019
|
March 31,
2019
|
|
Operating
revenue
|
$
9,470
|
$
9,154
|
$
11,439
|
$
10,472
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
Third-party refinery
sales
|
(1,040)
|
(872)
|
(2)
|
(48)
|
|
|
Delta Private Jets
adjustment
|
—
|
—
|
(53)
|
(43)
|
|
|
Operating revenue,
adjusted
|
$
8,430
|
$
8,281
|
$
11,384
|
$
10,381
|
|
(26)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
(in
millions)
|
|
December 31,
2021
|
December 31,
2019
|
|
|
|
Change
|
Operating
revenue
|
$
29,899
|
$
47,007
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
Third-party refinery
sales
|
(3,229)
|
(97)
|
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(192)
|
|
|
|
|
Operating revenue,
adjusted
|
$
26,670
|
$
46,718
|
|
|
|
(43)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
4Q21 vs
4Q19
%
Change
|
|
|
December 31,
2021
|
September 30,
2021
|
December 31,
2019
|
|
|
TRASM
(cents)
|
18.30
|
16.93
|
17.47
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
Third-party refinery
sales
|
(2.01)
|
(1.61)
|
—
|
|
|
|
Delta Private Jets
adjustment
|
—
|
—
|
(0.08)
|
|
|
|
TRASM,
adjusted
|
16.29
|
15.31
|
17.39
|
|
|
(6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
December 31,
2021
|
December 31,
2019
|
|
|
|
Change
|
TRASM
(cents)
|
15.37
|
17.07
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
Third-party refinery
sales
|
(1.66)
|
(0.04)
|
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.07)
|
|
|
|
|
TRASM,
adjusted
|
13.71
|
16.97
|
|
|
|
(19)%
|
Operating Expense, adjusted
|
|
Three Months
Ended
|
|
(in
millions)
|
December 31,
2021
|
September 30,
2021
|
December 31,
2019
|
|
Operating
expense
|
$
9,207
|
$
6,949
|
$
10,040
|
|
Adjusted
for:
|
|
|
|
|
Restructuring
charges
|
16
|
(33)
|
—
|
|
Government grant
recognition
|
—
|
1,822
|
—
|
|
Special profit sharing
payment
|
(108)
|
—
|
—
|
|
MTM adjustments and
settlements on hedges
|
11
|
(19)
|
(22)
|
|
Third-party refinery
sales
|
(1,040)
|
(872)
|
(2)
|
|
Delta Private Jets
adjustment
|
—
|
—
|
(55)
|
|
Operating expense,
adjusted
|
$
8,086
|
$
7,846
|
$
9,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
(in
millions)
|
December 31,
2021
|
December 31,
2019
|
|
|
Operating
expense
|
$
28,013
|
$
40,389
|
|
|
Adjusted
for:
|
|
|
|
|
Restructuring
charges
|
19
|
—
|
|
|
Government grant
recognition
|
4,512
|
—
|
|
|
Special profit sharing
payment
|
(108)
|
—
|
|
|
MTM adjustments and
settlements on hedges
|
(9)
|
(14)
|
|
|
Third-party refinery
sales
|
(3,229)
|
(97)
|
|
|
Delta Private Jets
adjustment
|
—
|
(196)
|
|
|
Operating expense,
adjusted
|
$
29,197
|
$
40,082
|
|
|
|
|
|
|
|
Gross Capital Expenditures. We adjust capital
expenditures for the following items to determine gross capital
expenditures for the reasons described below:
Financed aircraft
acquisitions. This adjusts capital expenditures to reflect
aircraft deliveries that are leased as capital expenditures.
The adjustment is based on their original contractual purchase
price or fair value and provides a more meaningful view of our
investing activities.
Net cash flows related to
certain airport construction projects. Cash flows related
to certain airport construction projects are included in capital
expenditures. We have adjusted for these items because management
believes investors should be informed that a portion of these
capital expenditures from airport construction projects are either
funded with restricted cash specific to these projects or
reimbursed by a third party.
|
|
Three Months
Ended
|
(in
millions)
|
December 31,
2021
|
December 31,
2019
|
Flight equipment,
including advance payments
|
$
635
|
$
570
|
Ground property and
equipment, including technology
|
582
|
502
|
Adjusted
for:
|
|
|
Net cash flows related
to certain airport construction projects
|
(269)
|
(118)
|
Gross capital
expenditures
|
$
948
|
$
954
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
(in
millions)
|
December 31,
2021
|
December 31,
2019
|
Flight equipment,
including advance payments
|
$
1,596
|
$
3,344
|
Ground property and
equipment, including technology
|
1,651
|
1,592
|
Adjusted
for:
|
|
|
Financed aircraft
acquisitions
|
594
|
818
|
Net cash flows related
to certain airport construction projects
|
(965)
|
(448)
|
Gross capital
expenditures
|
$
2,876
|
$
5,306
|
Adjusted Net Debt. Delta uses adjusted total debt,
including aircraft rent, in addition to adjusted debt and finance
leases, to present estimated financial obligations. Delta reduces
adjusted total debt by cash, cash equivalents and short-term
investments, and LGA restricted cash, resulting in adjusted net
debt, to present the amount of assets needed to satisfy the debt.
Management believes this metric is helpful to investors in
assessing the company's overall debt profile.
|
|
|
|
(in
millions)
|
|
December 31,
2021
|
Debt and finance
lease obligations
|
|
$
26,920
|
Plus: sale-leaseback
financing liabilities
|
|
|
2,234
|
Plus: unamortized
discount/(premium) and debt issue cost, net and other
|
|
208
|
Adjusted debt and
finance lease obligations
|
|
$
29,362
|
Plus: 7x last twelve
months' aircraft rent
|
|
3,011
|
Adjusted total
debt
|
|
$
32,374
|
Less: cash, cash
equivalents and short-term investments
|
|
(11,320)
|
Less: LGA restricted
cash
|
|
(473)
|
Adjusted net
debt
|
|
$
20,581
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
December 31,
2019
|
Debt and finance
lease obligations
|
|
$
11,160
|
Plus: unamortized
discount/(premium) and debt issue cost, net and other
|
|
(115)
|
Adjusted debt and
finance lease obligations
|
|
$
11,044
|
Plus: 7x last twelve
months' aircraft rent
|
|
2,963
|
Adjusted total
debt
|
|
$
14,007
|
Less: cash, cash
equivalents and short-term investments
|
|
(2,882)
|
Less: LGA restricted
cash
|
|
(636)
|
Adjusted net
debt
|
|
$
10,489
|
|
|
|
|
Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available
Seat Mile, ("CASM-Ex")
|
|
|
|
Three Months
Ended
|
|
4Q21 vs
4Q19
%
Change
|
|
|
|
|
|
December 31,
2021
|
September 30,
2021
|
December 31,
2019
|
March 31,
2019
|
|
|
CASM
(cents)
|
17.79
|
12.85
|
15.34
|
15.14
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
Restructuring
charges
|
0.03
|
(0.06)
|
—
|
—
|
|
|
|
Government grant
recognition
|
—
|
3.37
|
—
|
—
|
|
|
|
Aircraft fuel and related
taxes
|
(3.05)
|
(2.87)
|
(3.08)
|
(3.17)
|
|
|
|
Third-party refinery
sales
|
(2.01)
|
(1.61)
|
—
|
(0.08)
|
|
|
|
Special profit sharing
payment
|
(0.21)
|
—
|
—
|
—
|
|
|
|
Profit sharing
|
—
|
—
|
(0.59)
|
(0.35)
|
|
|
|
Delta Private Jets
adjustment
|
—
|
—
|
(0.07)
|
(0.05)
|
|
|
|
CASM-Ex
|
12.56
|
11.67
|
11.59
|
11.49
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
|
|
|
December 31,
2021
|
December 31,
2019
|
|
|
|
Change
|
|
CASM
(cents)
|
14.40
|
14.67
|
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
Restructuring
charges
|
0.01
|
—
|
|
|
|
|
|
Government grant
recognition
|
2.32
|
—
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(2.90)
|
(3.10)
|
|
|
|
|
|
Third-party refinery
sales
|
(1.66)
|
(0.04)
|
|
|
|
|
|
Special profit sharing
payment
|
(0.06)
|
—
|
|
|
|
|
|
Profit sharing
|
—
|
(0.60)
|
|
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(0.06)
|
|
|
|
|
|
CASM-Ex
|
12.12
|
10.88
|
|
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
4Q21 vs
4Q19
%
Change
|
|
(in
millions)
|
|
|
December 31,
2021
|
September 30,
2021
|
December 31,
2019
|
|
|
|
Operating
Expense
|
$
9,207
|
$
6,949
|
$
10,040
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
Restructuring
charges
|
16
|
(33)
|
—
|
|
|
|
|
Government grant
recognition
|
—
|
1,822
|
—
|
|
|
|
|
Aircraft fuel and
related taxes
|
(1,577)
|
(1,552)
|
(2,012)
|
|
|
|
|
Third-party refinery
sales
|
(1,040)
|
(872)
|
(2)
|
|
|
|
|
Special profit sharing
payment
|
(108)
|
—
|
—
|
|
|
|
|
Profit
sharing
|
—
|
—
|
(387)
|
|
|
|
|
Delta Private Jets
adjustment
|
—
|
—
|
(49)
|
|
|
|
|
Non-Fuel
Cost
|
$
6,498
|
$
6,313
|
$
7,590
|
|
|
(14)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
(in
millions)
|
|
|
December 31,
2021
|
December 31,
2019
|
|
|
|
Change
|
|
Operating
Expense
|
$
28,013
|
$
40,389
|
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
Restructuring
charges
|
19
|
—
|
|
|
|
|
|
Government grant
recognition
|
4,512
|
—
|
|
|
|
|
|
Aircraft fuel and
related taxes
|
(5,633)
|
(8,519)
|
|
|
|
|
|
Third-party refinery
sales
|
(3,229)
|
(97)
|
|
|
|
|
|
Special profit sharing
payment
|
(108)
|
—
|
|
|
|
|
|
Profit
sharing
|
—
|
(1,643)
|
|
|
|
|
|
Delta Private Jets
adjustment
|
—
|
(168)
|
|
|
|
|
|
Non-Fuel
Cost
|
$
23,573
|
$
29,962
|
|
|
|
(21)%
|
|
Fuel expense, adjusted and Average fuel price per gallon,
adjusted
|
|
|
|
|
|
|
Average Price Per
Gallon
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
December
31,
|
September
30,
|
December
31,
|
|
|
December
31,
|
September
30,
|
December
31,
|
(in millions, except
per gallon data)
|
2021
|
2021
|
2019
|
|
|
2021
|
2021
|
2019
|
Total fuel
expense
|
$
1,577
|
$
1,552
|
$
2,012
|
|
|
$
2.09
|
$
1.97
|
$
2.01
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
11
|
(19)
|
(23)
|
|
|
0.01
|
(0.02)
|
(0.02)
|
Delta Private Jets
adjustment
|
—
|
—
|
(6)
|
|
|
—
|
—
|
(0.01)
|
Total fuel expense,
adjusted
|
$
1,588
|
$
1,533
|
$
1,983
|
|
|
$
2.10
|
$
1.94
|
$
1.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Price Per
Gallon
|
|
|
|
Year
Ended
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
December
31,
|
|
|
|
December
31,
|
December
31,
|
|
(in millions, except
per gallon data)
|
2021
|
2019
|
|
|
|
2021
|
2019
|
|
Total fuel
expense
|
$
5,633
|
$
8,519
|
|
|
|
$
2.02
|
$
2.02
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
MTM adjustments and
settlements on hedges
|
(9)
|
(14)
|
|
|
|
—
|
—
|
|
Delta Private Jets
adjustment
|
—
|
(28)
|
|
|
|
—
|
(0.01)
|
|
Total fuel expense,
adjusted
|
$
5,625
|
$
8,477
|
|
|
|
$
2.02
|
$
2.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel expense percent
change full year 2021 compared to full year 2019:
|
(34)%
|
|
|
|
|
|
|
Non-operating expense, adjusted
|
|
|
Three Months
Ended
|
(in
millions)
|
|
December 31,
2021
|
December 31,
2019
|
Non-operating
expense
|
$
658
|
$
2
|
Adjusted
for:
|
|
|
Impairments and equity
method losses
|
(232)
|
—
|
Loss on extinguishment
of debt
|
(54)
|
—
|
Equity investment MTM
adjustments
|
—
|
1
|
MTM adjustments on
investments
|
(197)
|
3
|
Non-operating
expense, adjusted
|
$
175
|
$
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
(in
millions)
|
|
December 31,
2021
|
December 31,
2019
|
Non-operating
expense
|
$
1,488
|
$
420
|
Adjusted
for:
|
|
|
Impairments and equity
method losses
|
(337)
|
—
|
Loss on extinguishment
of debt
|
(319)
|
—
|
Equity investment MTM
adjustments
|
—
|
14
|
MTM adjustments on
investments
|
56
|
(13)
|
Non-operating
expense, adjusted
|
$
888
|
$
422
|
|
|
|
|
|
Free Cash Flow. We present free cash flow because
management believes these metrics are helpful to investors to
evaluate the company's ability to generate cash that is available
for use for debt service or general corporate initiatives. Free
cash flow is defined as net cash from operating activities and net
cash from investing activities, adjusted for (i) net
redemptions/purchases of short-term investments, (ii) strategic
investments and related and (iii) net cash flows related to certain
airport construction projects and other. These adjustments are made
for the following reasons:
Net redemptions/purchases of
short-term investments. Net redemptions/purchases of
short-term investments represent the net purchase and sale activity
of investments and marketable securities in the period, including
gains and losses. We adjust for this activity to provide investors
a better understanding of the company's free cash flow generated by
our operations.
Strategic investments and
related. Certain cash flows related to our investments in
and related transactions with other airlines are included in our
GAAP investing activities. We adjust for this activity because it
provides a more meaningful comparison to our airline industry
peers.
Net cash flows related to
certain airport construction projects and other. Cash
flows related to certain airport construction projects are included
in our GAAP operating activities and capital expenditures. We have
adjusted for these items because management believes investors
should be informed that a portion of these capital expenditures
from airport construction projects are either reimbursed by a third
party or funded with restricted cash specific to these
projects.
|
|
|
|
Three Months
Ended
|
(in
millions)
|
|
|
December 31,
2021
|
December 31,
2019
|
Net cash provided by
operating activities
|
|
$
555
|
$
969
|
Net cash used in
investing activities
|
|
(479)
|
(779)
|
Adjusted
for:
|
|
|
|
Net
(redemptions)/purchases of short-term investments
|
|
(1,022)
|
—
|
Strategic investments
and related
|
|
274
|
—
|
Net cash flows related
to certain airport construction projects and other
|
|
231
|
(49)
|
Free cash
flow
|
|
$
(441)
|
$
141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
(in
millions)
|
|
|
December 31,
2021
|
December 31,
2019
|
Net cash provided by
operating activities
|
|
$
3,264
|
$
8,425
|
Net cash used in
investing activities
|
|
(898)
|
(4,563)
|
Adjusted
for:
|
|
|
|
Net
(redemptions)/purchases of short-term investments
|
|
(2,381)
|
(206)
|
Strategic investments
and related
|
|
181
|
170
|
Net cash flows related
to certain airport construction projects and other
|
|
1,090
|
338
|
Free cash
flow
|
|
$
1,255
|
$
4,164
|
|
|
|
|
|
|
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SOURCE Delta Air Lines