Delta Air Lines Announces June Quarter 2023 Financial Results

In this article:

Delivered highest quarterly revenue and profitability in Delta's history

Strong June quarter operating cash flow enabled accelerated debt reduction

Expect record September quarter revenue, mid-teens operating margin and EPS of $2.20 - $2.50

Raising full year EPS outlook to $6 - $7 and reiterating free cash flow guide of $3 billion

ATLANTA, July 13, 2023 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the June quarter and provided its outlook for the September quarter 2023.  Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.

Delta Air Lines and the Delta Connection carriers offer service to nearly 370 destinations on six continents. For more information visit news.delta.com. (PRNewsFoto/Delta Air Lines)
Delta Air Lines and the Delta Connection carriers offer service to nearly 370 destinations on six continents. For more information visit news.delta.com. (PRNewsFoto/Delta Air Lines)

"Thanks to the incredible work of our entire team, Delta is delivering for our customers by providing strong operational performance and best in class service during this busy summer period.  With this performance, we generated record revenue and profitability in the June quarter.  Our people are the best professionals in the industry, and I'm proud to recognize their achievements with $667 million in the first half toward next year's profit sharing payment," said Ed Bastian, Delta's chief executive officer.

"Consumer demand for air travel remains robust.  Against this constructive backdrop, we are increasing our 2023 earnings guidance to $6 to $7 per share and reiterating our recently updated outlook for $3 billion of free cash flow."

June Quarter 2023 GAAP Financial Results

  • Record operating revenue of $15.6 billion

  • Record operating income of $2.5 billion with an operating margin of 16.0 percent

  • Pre-tax income of $2.3 billion with a pre-tax margin of 14.9 percent

  • Earnings per share of $2.84

  • Operating cash flow of $2.6 billion

  • Payments on debt and finance lease obligations of $1.8 billion

  • Total debt and finance lease obligations of $20.2 billion at quarter end

June Quarter 2023 Adjusted Financial Results

  • Record operating revenue of $14.6 billion, 19 percent higher than the June quarter 2022

  • Record operating income of $2.5 billion with an operating margin of 17.1 percent

  • Pre-tax income of $2.2 billion with a pre-tax margin of 15.2 percent

  • Earnings per share of $2.68

  • Operating cash flow of $2.6 billion

  • Free cash flow of $1.1 billion

  • Adjusted net debt of $19.8 billion at quarter end

September Quarter and Full Year Outlook1 


3Q23 Forecast

FY 2023 Forecast

Total Revenue YoY

+11% - 14%

+17% - 20%

Operating Margin

Mid-Teens

>12%

Earnings Per Share

$2.20 - $2.50

$6 - $7

Non-GAAP measures; Refer to Non-GAAP reconciliations for comparison figures

Additional metrics for financial modeling can be found in the Supplemental Information section under Quarterly Results on ir.delta.com.

Revenue Environment and Outlook

"We delivered record revenue in the June quarter, with total revenues 19 percent higher than the June quarter of 2022.  These results reflect the strength of the demand environment, the hard work of our people and the momentum of Delta's brand," said Glen Hauenstein, Delta's president.  "Robust demand is continuing into the September quarter where we expect total revenue to be similar to the June quarter, up 11 percent to 14 percent compared to the September quarter 2022 on capacity that is 16 percent higher."

  • Unit revenue strength continues: June quarter total unit revenue (TRASM) was up 1 percent versus 2022 on 17 percent higher capacity driven by improved load factors and yields.

  • Record international performance: Record June quarter international passenger revenue was 61 percent higher year over year with record profitability. Transatlantic was driven by strong U.S. consumer demand, with southern European destinations leading results. Transpacific benefited from the re-opening of Japan and performance of the Korean Air joint venture. Latin America strength continued, driven by demand for travel to South America and the Caribbean with integration of the LATAM joint venture progressing well.

  • Domestic demand remains robust: June quarter domestic passenger revenue was up 8 percent year over year on a similar increase in capacity. Corporate revenue grew year over year with recent corporate survey results indicating that 93 percent of companies expect their travel will increase or stay the same sequentially in the September quarter.

  • Premium and Loyalty revenue drive revenue diversification: Premium revenue growth continues to outpace main cabin, increasing 25 percent year over year. Loyalty revenue improved 20 percent driven by strong co-brand acquisitions and spend growth. American Express remuneration for the June quarter was $1.7 billion, approximately 22 percent higher than June quarter 2022.

Cost Performance and Outlook

"Non-fuel unit costs have reached an important inflection point with our rebuild substantially behind us, core maintenance normalizing and the benefits of scale and efficiency increasing into the second half," said Dan Janki, Delta's chief financial officer.  "We expect September quarter non-fuel unit costs to decline 1 percent to 3 percent year over year, consistent with our outlook for low-single digit declines in the second half of the year."

June Quarter 2023 Cost Performance 

  • June quarter operating expense of $13.1 billion and total adjusted operating expense of $12.1 billion

  • June quarter adjusted non-fuel costs of $9.0 billion

  • June quarter non-fuel CASM was 2.4 percent higher year over year

  • Adjusted fuel expense of $2.5 billion was down 24 percent compared to the June quarter 2022

  • Adjusted fuel price of $2.52 per gallon declined 34 percent versus 2022 and includes a refinery benefit of 4¢ per gallon

  • Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.4, a 1 percent improvement versus 2022

Balance Sheet, Cash and Liquidity

"Delta delivered $2.9 billion of free cash flow in the first half of the year, while consistently reinvesting in the business," Janki said.  "With an outlook for $3 billion of free cash flow in 2023, we are accelerating debt repayment with a goal of retiring over $4 billion in debt this year.  We are on track to reduce leverage to 3x by the end of this year and achieve investment grade metrics in 2024.  During the quarter, we also reinstated the quarterly dividend, an important milestone that opens the shareholder base to yield-focused investors."

  • Adjusted net debt of $19.8 billion at June quarter end, a reduction of $2.5 billion from the end of 2022

  • Payments on debt and finance lease obligations of $1.8 billion in the June quarter. This included $0.8 billion of maturities and the early repayment of $1.0 billion of debt instruments with an average interest rate of 7 percent

  • Weighted average interest rate of 4.6 percent with 88 percent fixed rate debt and 12 percent variable rate debt

  • Adjusted operating cash flow was a June quarter record of $2.6 billion, and with gross capital expenditures of $1.6 billion, free cash flow was $1.1 billion

  • Air Traffic Liability ended the quarter at $10.4 billion, up $0.5 billion year over year

  • Liquidity* of $8.8 billion at quarter-end, including $2.8 billion in undrawn revolver capacity
    *Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities

June Quarter Highlights

Operations, Network and Fleet

  • Earned the #1 spot on The Points Guy's list of best U.S. Airlines for the fifth year in a row, consistently scoring high in reliability, customer experience, network and the loyalty program

  • Implemented largest ever trans-Atlantic summer schedule in Delta's history with more than 650 weekly flights to 32 destinations and a 20 percent increase in seat capacity versus summer 2022

  • Delta and LATAM announced new and enhanced service, with U.S.-Colombia routes and LATAM's first Atlanta route

  • Signed an agreement with EL AL Israel Airlines to launch a strategic partnership with more convenient connections for customers, reciprocal codeshare and frequent flyer benefits

  • Took delivery of 18 aircraft this year and 12 this quarter, including the A321neo, A220-300 and A330-900; exercised option to purchase 12 additional A220s and added one A330-900 to the order book

Culture and People 

  • Welcomed Mike Spanos as Chief Operating Officer and Alicia Tillman as Chief Marketing Officer

  • Accrued $595 million toward profit sharing in the June quarter, resulting in $667 million accrued in the first half, more than the entire year of 2022

  • Provided a 5 percent base pay increase for eligible employees worldwide, effective April 1, 2023, maintaining our philosophy of industry-leading pay for industry-leading performance

  • Ranked No. 1 in Strategic Clarity and No. 2 on Leadership Alignment in the Return On Leadership 100 Ranking of the top 100 Fortune 500 companies with a top 20 ranking overall

  • Named one of the Best Employers for Diversity by Forbes, along with one of the top companies for career growth by LinkedIn

  • Awarded this year's Industrial Sector Leader as one of the most community-minded companies in the U.S. and recognized on The Civic 50 by Points of Light for the sixth consecutive year

  • Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the sixth consecutive year with record units of blood collected

Customer Experience and Loyalty 

  • Welcomed over 3 million new SkyMiles members in the quarter marking the second consecutive record quarter

  • Generated record American Express remuneration with increasing premium card acquisitions

  • Continued to roll out fast, free Wi-Fi for SkyMiles members across the fleet, bringing total to more than 540 aircraft with full availability across Delta's global fleet planned by the end of 2024

  • Launched Delta Sync, the first-of-its-kind platform providing curated onboard experiences for customers

  • Named best airline in North America by millions of airline customers at Skytrax World Airline Awards; Earned No. 1 ranking for Best Airline Staff Service in North America

  • Named No. 1 for Premium Economy by J.D. Power for 2023

  • Delta's new Terminal C at LGA and Terminal 3 at LAX made The Condé Nast Traveler's 2023 Hot List in its "ultimate guide to planning your perfect trip"

  • Opened a third Delta Sky Club at Minneapolis-Saint Paul International Airport, the largest at MSP with seating for more than 450 and a first-of-its-kind Sky Deck for MSP

  • Opened five new gates at SLC, with the eastern portion of Concourse A expected by year-end

Environmental, Social and Governance 

  • Issued Delta's annual ESG Report which shares examples from 2022 of how Delta is creating a safer, more equitable workplace, reflecting the communities we serve while pushing towards a more sustainable future

  • Accelerating commitment to SAF with the purchase of 10 million gallons of SAF from Shell Aviation to be delivered over a two-year period for use at Los Angeles International Airport.

  • Completed electrification of nearly all core ground service equipment at hubs in SLC and BOS with goals to extend to ATL, LAX, SEA, MSP, JFK, LGA and others

  • Participated in SkyTeam's Sustainable Flight Challenge

June Quarter Results

June quarter results have been adjusted primarily for the third-party refinery sales, unrealized gains on investments and loss on extinguishment of debt as described in the reconciliations in Note A.


GAAP

$
Change

%
Change

($ in millions except per share and unit costs)

2Q23

2Q22

Operating income

2,491

1,519

972

64 %

Operating margin

16.0 %

11.0 %

      5.0 pts

45 %

Pre-tax income

2,317

1,033

1,284

NM

Pre-tax margin

14.9 %

7.5 %

      7.4 pts

99 %

Net income

1,827

735

1,092

NM

Diluted earnings per share

2.84

1.15

1.69

NM

Operating revenue

15,578

13,824

1,754

13 %

Total revenue per available seat mile (TRASM) (cents)

22.58

23.47

(0.89)

(4) %

Operating expense

13,087

12,305

782

6 %

Cost per available seat mile (CASM) (cents)

18.97

20.89

(1.92)

(9) %

Fuel expense

2,516

3,223

(707)

(22) %

Average fuel price per gallon

2.52

3.74

(1.22)

(33) %

Operating cash flow

2,609

2,535

74

3 %

Capital expenditures

1,452

958

494

52 %

Total debt and finance lease obligations

20,205

24,839

(4,634)

(19) %

 


Adjusted

$
Change

%
Change

($ in millions except per share and unit costs)              

2Q23

2Q22

Operating income

2,494

1,445

1,049

73 %

Operating margin

17.1 %

11.7 %

      5.4 pts

46 %

Pre-tax income

2,220

1,222

998

82 %

Pre-tax margin

15.2 %

9.9 %

      5.3 pts

54 %

Net income

1,723

921

802

87 %

Diluted earnings per share

2.68

1.44

1.24

86 %

Operating revenue

14,613

12,311

2,302

19 %

TRASM (cents)

21.18

20.90

0.28

1 %

Operating expense

12,119

10,866

1,253

12 %

Non-fuel cost

9,011

7,516

1,495

20 %

Non-fuel unit cost (CASM-Ex) (cents)

13.06

12.76

0.30

2.4 %

Fuel expense

2,513

3,296

(783)

(24) %

Average fuel price per gallon

2.52

3.82

(1.30)

(34) %

Operating cash flow

2,648

2,465

183

7 %

Free cash flow

1,094

1,608

(514)

(32) %

Gross capital expenditures

1,572

864

708

82 %

Adjusted net debt

19,841

19,578

263

1 %

 

About Delta Air Lines  Through the warmth and service of the Delta Air Lines (NYSE: DAL) people and the power of innovation, Delta never stops looking for ways to make every trip feel tailored to every customer. More than 90,000 Delta people lead the way in delivering a world-class customer experience on over 4,000 daily flights to more than 280 destinations on six continents, connecting people to places and to each other.

Delta expects to serve nearly 200 million customers this year safely, reliably and with industry-leading customer service innovation – recognized as North America's most on-time airline. We're dedicated to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine and enduring motivation is to make every customer feel welcomed and respected across every point of their journey with us. 

Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Seattle, Seoul-Incheon and Tokyo.

As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential. 

Powered by innovative and strategic partnerships with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide.

Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. It has been recognized by Cirium for operational excellence, as the top U.S. airline by the Wall Street Journal, among Fast Company's most innovative companies, the World's Most Admired Airline according to Fortune, as one of Glassdoor's Best Places to Work, and a top employer for diversity, veterans and best workplaces for women by Forbes.

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 impact of incurring significant debt in response to the COVID-19 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, which could compromise the data stored within them, as well as failure to comply with ever-evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; 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 on our business of seasonality and other factors beyond our control, including severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; changes in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), a wholly-owned subsidiary of Delta; 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; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks, such as the COVID-19 pandemic or similar public health threats, and measures implemented to combat them; 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 but not limited to increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; 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, 2022. 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




Six Months Ended




June 30,




June 30,



(in millions, except per share data)

2023

2022

$ Change

% Change


2023

2022

$ Change

% Change

Operating Revenue:










Passenger

$      13,205

$      10,958

$        2,247

21 %


$     23,616

$     17,865

$       5,751

32 %

Cargo

172

272

(100)

(37) %


381

561

(180)

(32) %

Other

2,201

2,594

(393)

(15) %


4,340

4,747

(407)

(9) %

  Total operating revenue

15,578

13,824

1,754

13 %


28,337

23,173

5,164

22 %











Operating Expense:










Salaries and related costs

3,692

2,955

737

25 %


7,078

5,782

1,296

22 %

Aircraft fuel and related taxes

2,516

3,223

(707)

(22) %


5,192

5,315

(123)

(2) %

Ancillary businesses and refinery

1,173

1,718

(545)

(32) %


2,298

3,100

(802)

(26) %

Contracted services

994

791

203

26 %


2,004

1,544

460

30 %

Landing fees and other rents

617

546

71

13 %


1,201

1,050

151

14 %

Aircraft maintenance materials and outside repairs

614

522

92

18 %


1,199

988

211

21 %

Passenger commissions and other selling expenses

651

526

125

24 %


1,152

838

314

37 %

Depreciation and amortization

573

510

63

12 %


1,137

1,016

121

12 %

Regional carrier expense

559

528

31

6 %


1,117

1,018

99

10 %

Pilot agreement and related expenses

NM


864

864

NM

Passenger service

442

369

73

20 %


859

644

215

33 %

Profit sharing

595

54

541

NM


667

54

613

NM

Aircraft rent

132

127

5

4 %


264

249

15

6 %

Other

529

436

93

21 %


1,090

840

250

30 %

Total operating expense

13,087

12,305

782

6 %


26,122

22,438

3,684

16 %











Operating Income

2,491

1,519

972

64 %


2,215

735

1,480

NM











Non-Operating Expense:










Interest expense, net

(203)

(269)

66

(25) %


(430)

(543)

113

(21) %

Gain/(loss) on investments, net

128

(221)

349

NM


251

(368)

619

NM

Loss on extinguishment of debt

(29)

(41)

12

(29) %


(50)

(66)

16

(24) %

Pension and related (expense)/benefit

(61)

73

(134)

NM


(122)

145

(267)

NM

Miscellaneous, net

(9)

(28)

19

(68) %


(52)

(70)

18

(26) %

Total non-operating expense, net

(174)

(486)

312

(64) %


(403)

(902)

499

(55) %











Income/(Loss) Before Income Taxes

2,317

1,033

1,284

NM


1,812

(167)

1,979

NM











Income Tax Provision

(490)

(298)

(192)

64 %


(348)

(38)

(310)

NM











Net Income/(Loss)

$        1,827

$           735

$        1,092

NM


$       1,464

$        (205)

$       1,669

NM











Basic Income/(Loss) Per Share

$          2.86

$          1.15




$         2.29

$       (0.32)



Diluted Income/(Loss) Per Share

$          2.84

$          1.15




$         2.28

$       (0.32)













Basic Weighted Average Shares Outstanding

639

638




639

638



Diluted Weighted Average Shares Outstanding

642

641




642

638



 

DELTA AIR LINES, INC.

Passenger Revenue

(Unaudited)











Three Months Ended



Six Months Ended




June 30,



June 30,



(in millions)

2023

2022

$ Change

% Change


2023

2022

$ Change

% Change

Ticket - Main cabin

$       6,694

$       5,664

$       1,030

18 %


$     11,917

$       9,111

$       2,806

31 %

Ticket - Premium products

5,135

4,109

1,026

25 %


9,151

6,648

2,503

38 %

Loyalty travel awards

902

744

158

21 %


1,645

1,287

358

28 %

Travel-related services

474

441

33

7 %


903

819

84

10 %

Passenger revenue

$     13,205

$     10,958

$       2,247

21 %


$     23,616

$     17,865

$       5,751

32 %

 

DELTA AIR LINES, INC.

Other Revenue

(Unaudited)











Three Months Ended




Six Months Ended




June 30,




June 30,



(in millions)

2023

2022

$ Change

% Change


2023

2022

$ Change

% Change

Refinery

$          965

$       1,514

$        (549)

(36) %


$       1,882

$       2,700

$        (818)

(30) %

Loyalty program

774

650

124

19 %


1,500

1,221

279

23 %

Ancillary businesses

214

206

8

4 %


445

416

29

7 %

Miscellaneous

248

224

24

11 %


513

410

103

25 %

Other revenue

$       2,201

$       2,594

$        (393)

(15) %


$       4,340

$       4,747

$        (407)

(9) %

 

DELTA AIR LINES, INC.

Total Revenue

(Unaudited)













Increase (Decrease)





2Q23 vs 2Q22

Revenue


2Q23 ($M)


Change

Unit Revenue

Yield

Capacity

Domestic

$

8,944


8 %

(1) %

0 %

9 %

Atlantic


2,803


65 %

22 %

17 %

35 %

Latin America


926


24 %

16 %

11 %

7 %

Pacific


532


175 %

29 %

0 %

113 %

Passenger Revenue

$

13,205


21 %

3 %

2 %

17 %

Cargo Revenue


172


(37) %




Other Revenue


2,201


(15) %




Total Revenue

$

15,578


13 %

(4) %



       Third Party Refinery Sales


(965)






Total Revenue, adjusted

$

14,613


19 %

1 %



 

DELTA AIR LINES, INC.

Statistical Summary

(Unaudited)



Three Months Ended




Six Months Ended




June 30,




June 30,




2023

2022

Change


2023

2022

Change

Revenue passenger miles (millions)

60,804

51,519

18

%


110,491

90,218

22

%

Available seat miles (millions)

68,993

58,903

17

%


130,345

110,713

18

%

Passenger mile yield (cents)

21.72

21.27

2

%


21.37

19.80

8

%

Passenger revenue per available seat mile (cents)

19.14

18.60

3

%


18.12

16.14

12

%

Total revenue per available seat mile (cents)

22.58

23.47

(4)

%


21.74

20.93

4

%

TRASM, adjusted - see Note A (cents)

21.18

20.90

1

%


20.30

18.49

10

%

Cost per available seat mile (cents)

18.97

20.89

(9)

%


20.04

20.27

(1)

%

CASM-Ex  - see Note A (cents)

13.06

12.76

2

%


13.44

12.98

4

%

Passenger load factor

88 %

87 %

1

pt


85 %

81 %

4

pts

Fuel gallons consumed (millions)

997

863

16

%


1,885

1,613

17

%

Average price per fuel gallon

$         2.52

$         3.74

(33)

%


$         2.75

$         3.29

(16)

%

Average price per fuel gallon, adjusted - see Note A

$         2.52

$         3.82

(34)

%


$         2.77

$         3.34

(17)

%

 

DELTA AIR LINES, INC.



Consolidated Statements of Cash Flows



(Unaudited)




Three Months Ended




June 30,



(in millions)

2023

2022



Cash Flows From Operating Activities:





Net Income

$                  1,827

$                    735



Depreciation and amortization

573

510



Changes in air traffic liability

(766)

805



Changes in profit sharing

595

54



Changes in balance sheet and other, net

380

431



     Net cash provided by operating activities

2,609

2,535








Cash Flows From Investing Activities:





Property and equipment additions:





Flight equipment, including advance payments

(1,074)

(603)



Ground property and equipment, including technology

(378)

(355)



Purchase of short-term investments

(1,013)

(248)



Redemption of short-term investments

1,064

943



Other, net

19

112



     Net cash used in investing activities

(1,382)

(152)








Cash Flows From Financing Activities:





Payments on debt and finance lease obligations

(1,820)

(952)



Other, net

(12)

(14)



     Net cash used in financing activities

(1,832)

(966)








Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash Equivalents

(605)

1,417



Cash, cash equivalents and restricted cash equivalents at beginning of period

3,429

8,135



Cash, cash equivalents and restricted cash equivalents at end of period

$                  2,824

$                  9,552








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

$                  2,668

$                  9,221



     Restricted cash included in prepaid expenses and other

156

154



Other assets:





     Restricted cash included in other noncurrent assets

177



Total cash, cash equivalents and restricted cash equivalents

$                  2,824

$                  9,552



 






DELTA AIR LINES, INC.

Consolidated Balance Sheets

(Unaudited)








June 30,


December 31,

(in millions)

2023


2022

ASSETS

Current Assets:





Cash and cash equivalents

$                        2,668


$                        3,266


Short-term investments

3,368


3,268


Accounts receivable, net

3,122


3,176


Fuel inventory, expendable parts and supplies inventories, net

1,438


1,424


Prepaid expenses and other

2,484


1,877


     Total current assets

13,080


13,011






Property and Equipment, Net:





Property and equipment, net

34,092


33,109






Other Assets:





Operating lease right-of-use assets

6,834


7,036


Goodwill

9,753


9,753


Identifiable intangibles, net

5,988


5,992


Equity investments

2,389


2,128


Other noncurrent assets

1,361


1,259


     Total other assets

26,325


26,168

Total assets

$                      73,497


$                      72,288






LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:





Current maturities of debt and finance leases

$                        2,065


$                        2,359


Current maturities of operating leases

699


714


Air traffic liability

10,422


8,160


Accounts payable

5,114


5,106


Accrued salaries and related benefits

3,340


3,288


Loyalty program deferred revenue

3,824


3,434


Fuel card obligation

1,100


1,100


Other accrued liabilities

1,918


1,779


     Total current liabilities

28,482


25,940






Noncurrent Liabilities:





Debt and finance leases

18,140


20,671


Pension, postretirement and related benefits

3,669


3,707


Loyalty program deferred revenue

4,443


4,448


Noncurrent operating leases

6,646


6,866


Other noncurrent liabilities

4,017


4,074


     Total noncurrent liabilities

36,915


39,766






Commitments and Contingencies









Stockholders' Equity:

8,100


6,582

Total liabilities and stockholders' equity

$                      73,497


$                      72,288

 

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 that are made to provide comparability between the reported periods, if applicable, and for the reasons indicated below:

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.

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.

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. During 2022, we recognized adjustments to certain of those restructuring charges, representing changes in our estimates.

Loss on extinguishment of debt. This adjustment relates to early termination of a portion of our debt. Adjusting for these losses allows investors to better 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.

Total Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted 



Three Months Ended


2Q23 vs 2Q22
% Change

(in millions)

June 30, 2023

September 30, 2022

June 30, 2022


Total operating revenue

$                    15,578

$                    13,975

$                    13,824



Adjusted for:






Third-party refinery sales

(965)

(1,134)

(1,514)



Total operating revenue, adjusted

$                    14,613

$                    12,840

$                    12,311


19 %

 


Three Months Ended




June 30, 2023

June 30, 2022


% Change

TRASM (cents)

22.58

23.47



Adjusted for:





Third-party refinery sales

(1.40)

(2.57)



TRASM, adjusted

21.18

20.90


1 %

 


Six Months Ended


June 30, 2023

June 30, 2022

TRASM (cents)

21.74

20.93

Adjusted for:



Third-party refinery sales

(1.44)

(2.44)

TRASM, adjusted

20.30

18.49

 


Year Ended

(in millions)

December 31, 2022

Total operating revenue

$                      50,582

Adjusted for:


Third-party refinery sales

(4,977)

Total operating revenue, adjusted

$                      45,605

 

Operating Income, adjusted



Three Months