ATLANTA, Jan. 14, 2020 /PRNewswire/ -- Delta Air
Lines (NYSE: DAL) today reported financial results for the December
quarter and full year 2019 and provided its outlook for the March
quarter 2020. Highlights of the December quarter and full year
2019 results, including both GAAP and adjusted metrics, are on page
four and are incorporated here.
December Quarter Financial Highlights
- Adjusted earnings per share of $1.70, a 31% increase year over year; above
guidance of $1.20 to $1.50 on stronger revenue, lower fuel and a
nine-cent net gain related to the
unwinding of the GOL relationship
- Total revenue grew to $11.4
billion, up 7% over prior year when prior year period is
adjusted for sale of DAL Global Services (DGS)
- Total unit revenue (TRASM), adjusted, increased 2.4%, exceeding
expectations on strong holiday travel demand
- Non-fuel operating expense on a unit basis (CASM-Ex) up 4.4%
compared to the prior year period, in line with the company's
expectations of 4% to 5%
Full Year Financial Highlights
- Adjusted earnings per share of $7.31, a 30% increase year over year
- Total revenue increased to a record $47
billion, up 7.5% when prior year period is adjusted for
third-party refinery sales and the sale of DGS
- Total expense increased 3.9% with CASM-Ex up 2%, in line with
the company's guidance and long-term cost targets
- Delta's 90,000 employees will share a record $1.6 billion profit sharing payout on
Feb. 14
- Generated $8.4 billion of
operating cash flow and $4.2 billion
of free cash flow
- Returned $3 billion to
shareholders through dividends and share repurchases
"2019 was a truly outstanding year on all fronts – the best in
Delta's history operationally, financially and for our
customers. Our people, and their commitment to bringing
best-in-class travel experiences to our 200 million customers, are
the foundation for our success. I'm pleased to recognize
their outstanding performance with a record $1.6 billion in profit sharing for 2019," said
Ed Bastian, Delta's chief executive
officer. "As we enter 2020, demand for travel is healthy and our
brand preference is growing, positioning Delta to deliver another
year of strong results, including earnings per share of
$6.75 to $7.75."
March Quarter 2020 Outlook
|
1Q20
Forecast
|
Total revenue growth
(year-over-year)
|
Up 5% to
7%
|
Pre-tax margin
(year-over-year)
|
~ Flat
|
Fuel price, including
taxes and refinery impact
|
$2.00 to
$2.20
|
TRASM, adjusted
(year-over-year)
|
Flat to up
2%
|
CASM-Ex
(year-over-year)
|
Up 2% to
3%
|
|
See Note A for
information about reconciliation of projected non-GAAP financial
measures
|
Revenue Environment
For the full year, operating revenue grew to nearly $47 billion, up 7.5% when prior year period is
adjusted for third-party refinery sales and the sale of DGS.
Premium product ticket revenue increased 9% along with strong
double-digit percentage increases from loyalty and third-party
maintenance revenue.
Delta's operating revenue of $11.4
billion for the December quarter improved 7.2% or
$768 million over the prior year
(adjusted for the sale of DGS). This was driven by a 9% increase in
premium product ticket revenue, an 18% increase in loyalty revenue
and a 31% increase in third-party maintenance revenue, which was
partially offset by 13% lower cargo revenue.
December quarter passenger revenue by geographic region:
- Domestic revenue grew 7.7% in the quarter on 1.6% higher
passenger unit revenue (PRASM) and 6% higher capacity. Domestic
premium product revenue grew 11% and corporate revenue grew 6%,
driven by strength in business and leisure demand through the
holiday period. Revenue and margin improved in all domestic hubs
with revenue up 10% in coastal hubs and 6% in core hubs.
- Atlantic revenue grew 0.8% in the quarter on 2.4% higher
capacity and a 1.6% decline in PRASM, driven almost entirely by
foreign exchange rates.
- Latin revenue grew 6.7% on a 6.3% increase in unit revenue and
0.4% higher capacity. This revenue improvement was driven by
continued double-digit unit revenue growth in Brazil and Mexico.
- Pacific revenue was down 0.5% versus prior year on a 4.4%
decline in unit revenue primarily due to continued softness in
China. This was a 3.2 point
improvement versus the September quarter on improved trends in
Japan and strong Delta Premium
Select performance.
"Our industry-leading operational performance and the unmatched
service our people provide are the reasons why more customers than
ever are choosing to fly Delta. Investments in reliability, product
and service, airports and technology are reshaping customer
perception and driving record satisfaction scores and increasing
brand preference." said Glen
Hauenstein, Delta's president. "We delivered $47 billion in revenue in 2019, a more than
$3 billion increase when adjusted
over prior year, while sustaining a revenue premium to the industry
of more than 110%. Demand trends remain healthy and we expect
momentum to continue in 2020, with revenue growth of 5% to 7% in
the March quarter."
Cost Performance
For 2019, total expense increased 3.9%, driven by higher
revenue- and capacity-related expenses, profit sharing, and pension
expense, which were partially offset by $501
million lower fuel cost. CASM-Ex for 2019 increased 2%
versus prior year, reflecting Delta's continued investment in our
people, product and services.
Total expense for the December quarter increased 6.9% versus the
prior year on higher revenue- and capacity-related expenses and
profit sharing, which were partially offset by $315 million lower fuel cost. CASM-Ex was
up 4.4% for the December quarter compared to the prior year driven
by investment in our people, product and services, and a mark-up of
benefit-related balance sheet obligations.
Fuel expense decreased 14% relative to December quarter
2018. Delta's fuel price for the December quarter was
$2.01 per gallon, including
a $24 million benefit from the refinery.
Non-operating expense for the quarter was $256 million higher versus the prior year, driven
primarily by pension expense and lower mark-to-market adjustments
on investments, including our investment in GOL, which was sold
during the December quarter 2019.
"Non-fuel unit costs for 2019 increased 2% versus prior year, in
line with our long-term cost target and reflecting Delta's
continued investment in our people, product and services," said
Paul Jacobson, Delta's chief
financial officer. "These investments supporting our
long-term growth will continue into 2020, and we expect our
non-fuel unit costs will increase 2% to 3% for the March quarter
and full year."
Cash Flow and Shareholder Returns
For the full year, Delta generated $8.4
billion of operating cash flow and $4.2 billion of free cash flow. Full year
cash flow is net of $1 billion of
voluntary pension contributions, including $500 million made in the December quarter.
The company invested $4.5 billion
into the business in 2019 including $954
million in the December quarter. This supported the
delivery of 88 new aircraft during the year. The company's
ongoing fleet transformation is driving higher customer
satisfaction, premium seat growth and improved fuel efficiency.
For the December quarter, Delta generated $969 million of operating cash flow and
$141 million of free cash flow.
Delta returned $484 million to
shareholders, comprised of $225
million of share repurchases and $259
million in dividends during the quarter. For the full
year, Delta returned $3 billion to shareholders, including
$2 billion of share repurchases and $980 million in
dividends.
"Strong cash generation continues to set Delta apart and enables
consistent reinvestment in the business while maintaining cash
returns to owners at 70% of free cash flow," added Jacobson. "We
expect to generate free cash flow of $4
billion again this year, putting us on track to deliver a
three-year cumulative free cash flow of over $10 billion by the end of 2020."
Strategic Highlights
In 2019, Delta achieved a number of milestones across its five
key strategic pillars.
Culture and People
- Delta people earned $1.6 billion
in profit sharing and $87 million in
Shared Rewards, recognizing the outstanding performance of Delta's
90,000 employees through 2019.
- Contributed over $60 million and
800,000 volunteer hours in 2019 as part of Delta's commitment to
the communities we serve. Introduced The Great Delta Give-Back,
reinforcing commitment to the communities Delta serves around the
world by providing employees an annual paid day of service.
Operational Reliability
- Delivered 281 days of zero mainline cancellations and 165 days
of zero system cancellations through 2019, an improvement of 12%
and 15%, respectively, versus 2018.
- Reached record completion factor in 2019 on a system and
mainline basis, with mainline completion factor of 99.83%.
- Carried an all-time record 204 million customers in 2019, 6%
more than prior year with a record load factor of 86.3%.
- Achieved 2% fuel efficiency improvement through fleet renewal
and other initiatives. Delta also entered into an agreement with
Gevo for 10 million gallons annually of sustainable aviation
fuel.
Network and Partnerships
- Strengthened global partnerships in all international entities
with: the announcement of a strategic alliance with LATAM Airlines
Group including completion of a tender offer to acquire a 20%
equity stake; the equity investment in Hanjin-KAL the largest
shareholder of Korean Air; approval by the U.S. DOT for anti-trust
immunity for the expanded joint venture between Delta, Air France,
KLM and Virgin Atlantic.
- Announced a combination between Delta Private Jets and Wheels
Up, a private aviation company, to create one of the world's
largest owned and managed fleets of private aircraft, with over 190
aircraft and 8,000 customers in the combined company.
- Extended Delta's global reach with new service between
Amsterdam-Tampa, Boston-Edinburgh, Boston-Lisbon, Minneapolis-Mexico
City, Minneapolis-Seoul, New York JFK-Bogota, New York
JFK-Mumbai and Seattle-Osaka.
Customer Experience and Loyalty
- Announced an 11-year contract renewal between Delta and
American Express with contribution increasing from $4.1 billion in 2019 to nearly $7 billion by 2023, including a complete relaunch
where cardholders will enjoy more ways to earn miles.
- Added a record number of new SkyMiles Members in one year with
the number of new Members increasing at more than triple the rate
of just three years ago and added record 1.1 million new Delta
American Express cardholders, marking the third consecutive year of
more than one million new cardholders.
- Debuted an industry-leading international Main Cabin experience
designed by flight attendants to elevate and differentiate the
customer experience on Delta featuring thoughtful touches like
welcome cocktails, hot towel service, bistro-style dining and
more.
- Took delivery of 88 new aircraft including the A220-100 and
A330-900neo, with in-flight entertainment, spacious overhead bins
and memory foam cushions throughout the aircraft for additional
comfort.
- Released the updated FlyDelta app, providing automatic
international check-in, integrated security wait times and the
ability to pre-select meals in Delta One and domestic First
Class.
- Awarded the No.1 airline in Business Travel News Airline Survey
for a record ninth consecutive year, sweeping all 11
categories.
Investment Grade Balance Sheet
- Reported a 1.7x adjusted debt to EBITDAR ratio, toward the
lower end of our long-term leverage ratio target of 1.5x to 2.5x
adjusted debt to EBITDAR, which is expected to allow Delta to
maintain investment grade ratings through a business cycle.
- Completed a $1.5 billion
unsecured debt offering through a mix of five- and 10-year notes at
a blended rate of 3.24%, the lowest unsecured rates achieved by
Delta for these lengths of maturity in its history. The proceeds
from this offering were used to fund the acquisition of the 20%
equity stake in LATAM Airlines Group.
December Quarter and Full Year 2019 Results
Adjusted results primarily exclude the impact of mark-to-market
("MTM") adjustments.
|
GAAP
|
Adjusted
|
GAAP
|
Adjusted
|
($ in millions except
per share and unit costs)
|
4Q19
|
4Q18
|
4Q19
|
4Q18
|
FY19
|
FY18
|
FY19
|
FY18
|
Net income
|
1,099
|
|
1,019
|
|
1,096
|
|
885
|
|
4,767
|
|
3,935
|
|
4,773
|
|
3,893
|
|
Diluted earnings per
share
|
1.71
|
|
1.49
|
|
1.70
|
|
1.30
|
|
7.30
|
|
5.67
|
|
7.31
|
|
5.61
|
|
Operating
revenue
|
11,439
|
|
10,742
|
|
11,437
|
|
10,668
|
|
47,007
|
|
44,438
|
|
46,910
|
|
43,645
|
|
Total revenue per
available seat mile (TRASM)
|
17.47
|
|
17.18
|
|
17.47
|
|
17.06
|
|
17.07
|
|
16.87
|
|
17.03
|
|
16.57
|
|
Consolidated unit
cost (CASM/CASM-Ex)
|
15.34
|
|
15.44
|
|
11.21
|
|
10.74
|
|
14.67
|
|
14.87
|
|
10.52
|
|
10.31
|
|
About Delta
Delta Air Lines (NYSE: DAL) is the
U.S. global airline leader in products, services, innovation,
reliability and customer experience. Powered by its 90,000 people
around the world, Delta continues to invest billions in its people,
delivering a world-class travel experience and generating
industry-leading shareholder returns. With its constant drive to
invest, innovate and expand, Delta today is the No. 1 U.S. global
airline by total revenue.
Forward Looking Statements
Statements in this
press release that are not historical facts, including statements
regarding our estimates, expectations, beliefs, intentions,
projections or strategies for the future, may be "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. 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 and strategies reflected in or suggested by the
forward-looking statements. These risks and uncertainties
include, but are not limited to, the cost of aircraft fuel; the
availability of aircraft fuel; the impact of fuel hedging activity
including rebalancing our hedge portfolio, recording mark-to-market
adjustments or posting collateral in connection with our fuel hedge
contracts; the performance of our significant investments in
airlines in other parts of the world; the possible effects of
accidents involving our aircraft; breaches or security lapses in
our information technology systems; disruptions in our information
technology infrastructure; our dependence on technology in our
operations; the restrictions that financial covenants in our
financing agreements could have on our financial and business
operations; labor issues; the effects of weather, natural disasters
and seasonality on our business; the effects of an extended
disruption in services provided by third parties; failure or
inability of insurance to cover a significant liability at
Monroe's Trainer refinery; the
impact of environmental regulation on the Trainer refinery,
including costs related to renewable fuel standard regulations; our
ability to retain senior management and key employees; damage to
our reputation and brand if we are exposed to significant adverse
publicity through social media; the effects of terrorist attacks or
geopolitical conflict; competitive conditions in the airline
industry; interruptions or disruptions in service at major airports
at which we operate; the effects of extensive government regulation
on our business; the sensitivity of the airline industry to
prolonged periods of stagnant or weak economic conditions;
uncertainty in economic conditions and regulatory environment in
the United Kingdom related to the
exit of the United Kingdom from
the European Union; and the effects of the rapid spread of
contagious illnesses.
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, 2018.
Caution should be taken not to place undue reliance on our
forward-looking statements, which represent our views only as of
January 14, 2020 and which we have no
current intention to update.
DELTA AIR LINES,
INC.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
(in millions, except
per share data)
|
2019
|
2018
|
$
Change
|
%
Change
|
|
2019
|
2018
|
$
Change
|
%
Change
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$
|
10,245
|
|
$
|
9,647
|
|
$
|
598
|
|
6
|
%
|
|
$
|
42,277
|
|
$
|
39,755
|
|
$
|
2,522
|
|
6
|
%
|
Cargo
|
187
|
|
214
|
|
(27)
|
|
(13)
|
%
|
|
753
|
|
865
|
|
(112)
|
|
(13)
|
%
|
Other
|
1,007
|
|
881
|
|
126
|
|
14
|
%
|
|
3,977
|
|
3,818
|
|
159
|
|
4
|
%
|
Total operating
revenue
|
11,439
|
|
10,742
|
|
697
|
|
6
|
%
|
|
47,007
|
|
44,438
|
|
2,569
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating
Expense:
|
|
|
|
|
|
|
|
|
|
Salaries and related
costs
|
2,949
|
|
2,739
|
|
210
|
|
8
|
%
|
|
11,225
|
|
10,743
|
|
482
|
|
4
|
%
|
Aircraft fuel and
related taxes
|
2,012
|
|
2,327
|
|
(315)
|
|
(14)
|
%
|
|
8,519
|
|
9,020
|
|
(501)
|
|
(6)
|
%
|
Regional carriers
expense, excluding fuel
|
885
|
|
851
|
|
34
|
|
4
|
%
|
|
3,584
|
|
3,438
|
|
146
|
|
4
|
%
|
Contracted
services
|
668
|
|
529
|
|
139
|
|
26
|
%
|
|
2,641
|
|
2,175
|
|
466
|
|
21
|
%
|
Depreciation and
amortization
|
622
|
|
570
|
|
52
|
|
9
|
%
|
|
2,581
|
|
2,329
|
|
252
|
|
11
|
%
|
Passenger commissions
and other selling
expenses
|
488
|
|
468
|
|
20
|
|
4
|
%
|
|
1,993
|
|
1,941
|
|
52
|
|
3
|
%
|
Landing fees and other
rents
|
440
|
|
408
|
|
32
|
|
8
|
%
|
|
1,762
|
|
1,662
|
|
100
|
|
6
|
%
|
Aircraft maintenance
materials and outside repairs
|
417
|
|
341
|
|
76
|
|
22
|
%
|
|
1,751
|
|
1,575
|
|
176
|
|
11
|
%
|
Profit
sharing
|
387
|
|
311
|
|
76
|
|
24
|
%
|
|
1,643
|
|
1,301
|
|
342
|
|
26
|
%
|
Passenger
service
|
313
|
|
286
|
|
27
|
|
9
|
%
|
|
1,251
|
|
1,178
|
|
73
|
|
6
|
%
|
Ancillary businesses
and refinery
|
299
|
|
299
|
|
—
|
|
—
|
%
|
|
1,245
|
|
1,695
|
|
(450)
|
|
(27)
|
%
|
Aircraft
rent
|
105
|
|
103
|
|
2
|
|
2
|
%
|
|
423
|
|
394
|
|
29
|
|
7
|
%
|
Other
|
455
|
|
420
|
|
35
|
|
8
|
%
|
|
1,771
|
|
1,723
|
|
48
|
|
3
|
%
|
Total
operating expense
|
10,040
|
|
9,652
|
|
388
|
|
4
|
%
|
|
40,389
|
|
39,174
|
|
1,215
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
1,399
|
|
1,090
|
|
309
|
|
28
|
%
|
|
6,618
|
|
5,264
|
|
1,354
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-Operating
Expense:
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(72)
|
|
(67)
|
|
(5)
|
|
7
|
%
|
|
(301)
|
|
(311)
|
|
10
|
|
(3)
|
%
|
Gain/(loss) on
investments, net
|
136
|
|
208
|
|
(72)
|
|
(35)
|
%
|
|
119
|
|
38
|
|
81
|
|
NM
|
|
Miscellaneous,
net
|
(66)
|
|
113
|
|
(179)
|
|
NM
|
|
|
(238)
|
|
160
|
|
(398)
|
|
NM
|
|
Total
non-operating (expense)/income, net
|
(2)
|
|
254
|
|
(256)
|
|
NM
|
|
|
(420)
|
|
(113)
|
|
(307)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Income Taxes
|
1,397
|
|
1,344
|
|
53
|
|
4
|
%
|
|
6,198
|
|
5,151
|
|
1,047
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Provision
|
(298)
|
|
(325)
|
|
27
|
|
(8)
|
%
|
|
(1,431)
|
|
(1,216)
|
|
(215)
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
1,099
|
|
$
|
1,019
|
|
$
|
80
|
|
8
|
%
|
|
$
|
4,767
|
|
$
|
3,935
|
|
$
|
832
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
$
|
1.71
|
|
$
|
1.50
|
|
|
|
|
$
|
7.32
|
|
$
|
5.69
|
|
|
|
Diluted Earnings
Per Share
|
$
|
1.71
|
|
$
|
1.49
|
|
|
|
|
$
|
7.30
|
|
$
|
5.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Shares Outstanding
|
642
|
|
680
|
|
|
|
|
651
|
|
691
|
|
|
|
Diluted Weighted
Average Shares Outstanding
|
644
|
|
683
|
|
|
|
|
653
|
|
694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Passenger
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
(in
millions)
|
2019
|
2018
|
$
Change
|
%
Change
|
|
2019
|
2018
|
$
Change
|
%
Change
|
Ticket- Main
cabin
|
$
|
5,238
|
|
$
|
5,056
|
|
$
|
182
|
|
4
|
%
|
|
$
|
21,919
|
|
$
|
21,196
|
|
$
|
723
|
|
3
|
%
|
Ticket- Business
cabin and premium products
|
3,684
|
|
3,380
|
|
304
|
|
9
|
%
|
|
14,989
|
|
13,754
|
|
1,235
|
|
9
|
%
|
Loyalty travel
awards
|
726
|
|
675
|
|
51
|
|
8
|
%
|
|
2,900
|
|
2,651
|
|
249
|
|
9
|
%
|
Travel-related
services
|
597
|
|
536
|
|
61
|
|
11
|
%
|
|
2,469
|
|
2,154
|
|
315
|
|
15
|
%
|
Total passenger
revenue
|
$
|
10,245
|
|
$
|
9,647
|
|
$
|
598
|
|
6
|
%
|
|
$
|
42,277
|
|
$
|
39,755
|
|
$
|
2,522
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Other
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
(in
millions)
|
2019
|
2018
|
$
Change
|
%
Change
|
|
2019
|
2018
|
$
Change
|
%
Change
|
Loyalty
program
|
$
|
519
|
|
$
|
384
|
|
$
|
135
|
|
35
|
%
|
|
$
|
1,962
|
|
$
|
1,459
|
|
$
|
503
|
|
34
|
%
|
Ancillary businesses
and refinery
|
307
|
|
327
|
|
(20)
|
|
(6)
|
%
|
|
1,297
|
|
1,801
|
|
(504)
|
|
(28)
|
%
|
Miscellaneous
|
181
|
|
170
|
|
11
|
|
6
|
%
|
|
718
|
|
558
|
|
160
|
|
29
|
%
|
Total other
revenue
|
$
|
1,007
|
|
$
|
881
|
|
$
|
126
|
|
14
|
%
|
|
$
|
3,977
|
|
$
|
3,818
|
|
$
|
159
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Total
Revenue
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(Decrease)
|
|
|
|
|
4Q19 versus
4Q18
|
|
|
|
|
Change
|
Unit
|
|
|
Revenue
|
|
4Q19
($M)
|
|
YoY
|
Revenue
|
Yield
|
Capacity
|
Domestic
|
$
|
7,612
|
|
7.7%
|
1.6%
|
1.4%
|
6.0%
|
Atlantic
|
|
1,338
|
|
0.8%
|
(1.6)%
|
(3.5)%
|
2.4%
|
Latin
America
|
|
703
|
|
6.7%
|
6.3%
|
4.4%
|
0.4%
|
Pacific
|
|
591
|
|
(0.5)%
|
(4.4)%
|
(2.7)%
|
4.1%
|
Total
Passenger
|
$
|
10,245
|
|
6.2%
|
1.4%
|
0.9%
|
4.7%
|
Cargo
Revenue
|
|
187
|
|
(12.7)%
|
|
|
|
Other
Revenue
|
|
1,007
|
|
14.3%
|
|
|
|
Total
Revenue
|
$
|
11,439
|
|
6.5%
|
1.7%
|
|
|
Third Party
Refinery Sales
|
|
(2)
|
|
|
|
|
|
Total Revenue,
adjusted
|
$
|
11,437
|
|
7.2%
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
Statistical
Summary
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
2019
|
2018
|
Change
|
|
2019
|
2018
|
Change
|
Revenue passenger
miles (millions)
|
56,028
|
|
53,241
|
|
5.2
|
|
%
|
|
237,680
|
|
225,243
|
|
5.5
|
|
%
|
Available seat miles
(millions)
|
65,468
|
|
62,523
|
|
4.7
|
|
%
|
|
275,379
|
|
263,365
|
|
4.6
|
|
%
|
Passenger mile yield
(cents)
|
18.29
|
|
18.12
|
|
0.9
|
|
%
|
|
17.79
|
|
17.65
|
|
0.8
|
|
%
|
Passenger revenue per
available seat mile (cents)
|
15.65
|
|
15.43
|
|
1.4
|
|
%
|
|
15.35
|
|
15.09
|
|
1.7
|
|
%
|
Total revenue per
available seat mile (cents)
|
17.47
|
|
17.18
|
|
1.7
|
|
%
|
|
17.07
|
|
16.87
|
|
1.2
|
|
%
|
TRASM, adjusted - see
Note A (cents)
|
17.47
|
|
17.06
|
|
2.4
|
|
%
|
|
17.03
|
|
16.57
|
|
2.8
|
|
%
|
Operating cost per
available seat mile (cents)
|
15.34
|
|
15.44
|
|
(0.6)
|
|
%
|
|
14.67
|
|
14.87
|
|
(1.3)
|
|
%
|
CASM-Ex - see Note A
(cents)
|
11.21
|
|
10.74
|
|
4.4
|
|
%
|
|
10.52
|
|
10.31
|
|
2.0
|
|
%
|
Passenger load
factor
|
85.6
|
%
|
85.2
|
%
|
0.4
|
|
pts
|
|
86.3
|
%
|
85.5
|
%
|
0.8
|
|
pts
|
Fuel gallons consumed
(millions)
|
999
|
|
975
|
|
2.4
|
|
%
|
|
4,214
|
|
4,113
|
|
2.5
|
|
%
|
Average price per
fuel gallon
|
$
|
2.01
|
|
$
|
2.39
|
|
(15.9)
|
|
%
|
|
$
|
2.02
|
|
$
|
2.20
|
|
(8.2)
|
|
%
|
Average price per
fuel gallon, adjusted - see Note A
|
$
|
1.99
|
|
$
|
2.42
|
|
(17.7)
|
|
%
|
|
$
|
2.02
|
|
$
|
2.21
|
|
(8.5)
|
|
%
|
Number of aircraft in
fleet, end of period
|
1,062
|
|
1,025
|
|
37
|
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
(in
millions)
|
2019
|
2018
|
|
Cash Flows From
Operating Activities:
|
|
|
|
Net income
|
$
|
1,099
|
|
$
|
1,019
|
|
|
Depreciation and
amortization
|
622
|
|
570
|
|
|
Deferred income
taxes
|
324
|
|
504
|
|
|
Pension,
postretirement and postemployment payments greater than
expense
|
(447)
|
|
(113)
|
|
|
Changes in air
traffic liability
|
(647)
|
|
(873)
|
|
|
Changes in profit
sharing
|
387
|
|
311
|
|
|
Other, net
|
(369)
|
|
(173)
|
|
|
Net cash provided by
operating activities
|
969
|
|
1,245
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Property and
equipment additions:
|
|
|
|
Flight equipment, including
advance payments
|
(570)
|
|
(871)
|
|
|
Ground property and
equipment, including technology
|
(502)
|
|
(492)
|
|
|
Net redemptions of
short-term investments
|
—
|
|
276
|
|
|
Other, net
|
293
|
|
67
|
|
|
Net cash used in
investing activities
|
(779)
|
|
(1,020)
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Payments on long-term
debt and finance lease obligations
|
(516)
|
|
(312)
|
|
|
Repurchases of common
stock
|
(225)
|
|
(325)
|
|
|
Cash
dividends
|
(259)
|
|
(238)
|
|
|
Proceeds from
short-term obligations
|
—
|
|
113
|
|
|
Proceeds from
long-term obligations
|
1,557
|
|
621
|
|
|
Other, net
|
285
|
|
16
|
|
|
Net cash provided by
(used in) financing activities
|
842
|
|
(125)
|
|
|
|
|
|
|
Net Increase in
Cash, Cash Equivalents and Restricted Cash
Equivalents
|
1,032
|
|
100
|
|
|
Cash, cash
equivalents and restricted cash equivalents at beginning of
period
|
2,698
|
|
2,648
|
|
|
Cash, cash
equivalents and restricted cash equivalents at end of
period
|
$
|
3,730
|
|
$
|
2,748
|
|
|
|
|
|
|
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
|
$
|
2,882
|
|
$
|
1,565
|
|
|
Restricted cash included in
prepaid expenses and other
|
212
|
|
47
|
|
|
Other
assets:
|
|
|
|
Cash restricted for airport
construction
|
636
|
|
1,136
|
|
|
Total cash, cash
equivalents and restricted cash equivalents
|
$
|
3,730
|
|
$
|
2,748
|
|
|
|
|
|
|
DELTA AIR LINES,
INC.
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
(in
millions)
|
2019
|
|
2018
|
ASSETS
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,882
|
|
|
$
|
1,565
|
|
|
Accounts receivable,
net
|
2,854
|
|
|
2,314
|
|
|
Fuel
inventory
|
730
|
|
|
592
|
|
|
Expendable parts and
supplies inventories, net
|
521
|
|
|
463
|
|
|
Prepaid expenses and
other
|
1,262
|
|
|
1,406
|
|
|
Total current
assets
|
8,249
|
|
|
6,340
|
|
|
|
|
|
|
Property and
Equipment, Net:
|
|
|
|
|
Property and
equipment, net
|
31,311
|
|
|
28,335
|
|
|
|
|
|
|
Other
Assets:
|
|
|
|
|
Operating lease
right-of-use assets
|
5,626
|
|
|
5,994
|
|
|
Goodwill
|
9,781
|
|
|
9,781
|
|
|
Identifiable
intangibles, net
|
5,167
|
|
|
4,830
|
|
|
Cash restricted for
airport construction
|
636
|
|
|
1,136
|
|
|
Other noncurrent
assets
|
3,759
|
|
|
3,850
|
|
|
Total other
assets
|
24,969
|
|
|
25,591
|
|
Total
assets
|
$
|
64,529
|
|
|
$
|
60,266
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
Liabilities:
|
|
|
|
|
Current maturities of
long-term debt and finance leases
|
$
|
2,287
|
|
|
$
|
1,518
|
|
|
Current maturities of
operating leases
|
801
|
|
|
955
|
|
|
Air traffic
liability
|
5,116
|
|
|
4,661
|
|
|
Accounts
payable
|
3,266
|
|
|
2,976
|
|
|
Accrued salaries and
related benefits
|
3,701
|
|
|
3,287
|
|
|
Loyalty program
deferred revenue
|
3,219
|
|
|
2,989
|
|
|
Fuel card
obligation
|
736
|
|
|
1,075
|
|
|
Other accrued
liabilities
|
1,078
|
|
|
1,117
|
|
|
Total current
liabilities
|
20,204
|
|
|
18,578
|
|
|
|
|
|
|
Noncurrent
Liabilities:
|
|
|
|
|
Long-term debt and
finance leases
|
8,873
|
|
|
8,253
|
|
|
Pension,
postretirement and related benefits
|
8,344
|
|
|
9,163
|
|
|
Loyalty program
deferred revenue
|
3,509
|
|
|
3,652
|
|
|
Noncurrent operating
leases
|
5,294
|
|
|
5,801
|
|
|
Deferred income
taxes, net
|
1,478
|
|
|
163
|
|
|
Other noncurrent
liabilities
|
1,387
|
|
|
969
|
|
|
Total noncurrent
liabilities
|
28,885
|
|
|
28,001
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
15,440
|
|
|
13,687
|
|
Total liabilities and
stockholders' equity
|
$
|
64,529
|
|
|
$
|
60,266
|
|
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 U.S. 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. The Company is not able to
reconcile forward looking non-GAAP financial measures 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.
Free Cash Flow. We present free cash flow because
management believes this metric is helpful to investors to evaluate
the company's ability to generate cash that is available for use
for debt service or general corporate initiatives. Adjustments
include:
Net redemptions of short-term
investments. Net redemptions 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. Cash flows related to our investment in
Hanjin-KAL, the largest shareholder of Korean Air, are included in
our GAAP investing activities. We adjust free cash flow for this
activity because it provides a more meaningful comparison to the
airline industry.
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, which were primarily funded by cash
restricted for airport construction, to provide investors a better
understanding of the company's free cash flow and capital
expenditures that are core to our operational performance in the
periods shown.
|
|
|
|
Three Months
Ended
|
(in
millions)
|
|
|
December 31,
2019
|
Net cash provided by
operating activities
|
|
$
|
969
|
|
Net cash used in
investing activities
|
|
(779)
|
|
Adjustments:
|
|
|
Net cash flows related to
certain airport construction projects and other
|
(49)
|
|
Total free cash
flow
|
|
$
|
141
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
(in
millions)
|
|
|
December 31,
2019
|
Net cash provided by
operating activities
|
|
$
|
8,425
|
|
Net cash used in
investing activities
|
|
(4,563)
|
|
Adjustments:
|
|
|
Net redemptions of
short-term investments
|
|
(206)
|
|
Strategic
investments
|
|
170
|
|
Net cash flows related to
certain airport construction projects and other
|
338
|
|
Total free cash
flow
|
|
$
|
4,164
|
|
|
|
|
|
|
Net Income, adjusted. We adjust net income for the
following items to determine net income, adjusted for the reasons
described 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. Settlements represent cash
received or paid on hedge contracts settled during the applicable
period.
Equity investment MTM
adjustments. We record our proportionate share of
earnings/loss from our equity investments in Virgin Atlantic and
Aeroméxico in non-operating expense. We adjust for our equity
method investees' hedge portfolio MTM adjustments to allow
investors to understand and analyze our core operational
performance in the periods shown.
MTM adjustments on
investments. Unrealized gains/losses on our equity
investments in GOL, China Eastern,
Air France-KLM and Korean Air, which are accounted for at fair
value in non-operating expense, are driven by changes in stock
prices and foreign currency. During the December 2019 quarter, we sold our GOL
investment, which generated a gain in adjusted results that had
previously been included in GAAP results. Adjusting for these
gains/losses allows investors to better understand and analyze our
core operational performance in the periods shown.
DGS sale
adjustment. Because we sold DAL Global Services, LLC
("DGS") in December 2018, we have
excluded the impact of DGS from 2018 results for comparability.
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2019
|
|
Net
|
|
Net
Income
|
(in millions, except
per share data)
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
|
1,099
|
|
|
$
|
1.71
|
|
Adjusted
for:
|
|
|
|
MTM adjustments and
settlements on hedges
|
17
|
|
|
|
Equity investment MTM
adjustments
|
(1)
|
|
|
|
MTM adjustments on
investments
|
(19)
|
|
|
|
Total
adjustments
|
(3)
|
|
|
(0.01)
|
|
Non-GAAP
|
$
|
1,096
|
|
|
$
|
1.70
|
|
Change
year-over-year
|
|
|
31
|
%
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2018
|
|
December 31,
2018
|
|
Net
|
|
Net
Income
|
(in millions, except
per share data)
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
|
1,019
|
|
|
$
|
1.49
|
|
Adjusted
for:
|
|
|
|
MTM adjustments and
settlements on hedges
|
(26)
|
|
|
|
Equity investment MTM
adjustments
|
43
|
|
|
|
MTM adjustments on
investments
|
(146)
|
|
|
|
DGS sale
adjustment
|
(5)
|
|
|
|
Total
adjustments
|
(134)
|
|
|
(0.19)
|
|
Non-GAAP
|
$
|
885
|
|
|
$
|
1.30
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2019
|
|
Net
|
|
Net
Income
|
(in millions, except
per share data)
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
|
4,767
|
|
|
$
|
7.30
|
|
Adjusted
for:
|
|
|
|
MTM adjustments and
settlements on hedges
|
11
|
|
|
|
Equity investment MTM
adjustments
|
(11)
|
|
|
|
MTM adjustments on
investments
|
6
|
|
|
|
Total
adjustments
|
6
|
|
|
0.01
|
|
Non-GAAP
|
$
|
4,773
|
|
|
$
|
7.31
|
|
Change
year-over-year
|
|
|
30
|
%
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2018
|
|
December 31,
2018
|
|
Net
|
|
Net
Income
|
(in millions, except
per share data)
|
Income
|
|
Per Diluted
Share
|
GAAP
|
$
|
3,935
|
|
|
$
|
5.67
|
|
Adjusted
for:
|
|
|
|
MTM adjustments and
settlements on hedges
|
(26)
|
|
|
|
Equity investment MTM
adjustments
|
14
|
|
|
|
MTM adjustments on
investments
|
(7)
|
|
|
|
DGS sale
adjustment
|
(23)
|
|
|
|
Total
adjustments
|
(42)
|
|
|
(0.06)
|
|
Non-GAAP
|
$
|
3,893
|
|
|
$
|
5.61
|
|
|
|
|
|
|
|
|
|
Operating Revenue, adjusted and Total Revenue Per Available
Seat Mile ("TRASM"), adjusted. We adjust operating revenue
and TRASM for refinery sales to third parties because refinery
sales to third parties are not related to our airline segment.
Operating revenue, adjusted and TRASM, adjusted therefore provide a
more meaningful comparison of revenue from our airline operations
to the rest of the airline industry. We adjust for the DGS sale for
the same reason described above under the heading pre-tax income
and net income, adjusted.
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
(in
millions)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Change
|
Operating
revenue
|
$
|
11,439
|
|
|
$
|
10,742
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(2)
|
|
|
(11)
|
|
|
|
DGS sale
adjustment
|
—
|
|
|
(63)
|
|
|
|
Operating revenue,
adjusted
|
$
|
11,437
|
|
|
$
|
10,668
|
|
|
7.2
|
%
|
Year-over-year
change
|
$
|
768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
(in
millions)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Change
|
Operating
revenue
|
$
|
47,007
|
|
|
$
|
44,438
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(97)
|
|
|
(548)
|
|
|
|
DGS sale
adjustment
|
—
|
|
|
(244)
|
|
|
|
Operating revenue,
adjusted
|
$
|
46,910
|
|
|
$
|
43,645
|
|
|
7.5
|
%
|
Year-over-year
change
|
$
|
3,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Change
|
TRASM
(cents)
|
17.47
|
|
|
17.18
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
—
|
|
|
(0.02)
|
|
|
|
DGS sale
adjustment
|
—
|
|
|
(0.10)
|
|
|
|
TRASM,
adjusted
|
17.47
|
|
|
17.06
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Change
|
TRASM
(cents)
|
17.07
|
|
|
16.87
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Third-party refinery
sales
|
(0.04)
|
|
|
(0.21)
|
|
|
|
DGS sale
adjustment
|
—
|
|
|
(0.09)
|
|
|
|
TRASM,
adjusted
|
17.03
|
|
|
16.57
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
Non-Fuel Unit Cost or Cost per Available Seat Mile,
("CASM-Ex"). We adjust CASM for the following items to
determine CASM-Ex for the reasons described below:
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 understand and
analyze our non-fuel costs and year-over-year financial
performance.
Ancillary businesses and
refinery. We adjust for expenses related to aircraft
maintenance we provide to third parties, our vacation wholesale
operations, our private jet operations as well as refinery cost of
sales to third parties. 2018 results also include staffing services
performed by DGS. Because these businesses are not related to the
generation of a seat mile, we adjust for the costs related to these
areas to provide a more meaningful comparison of the costs of our
airline operations to the rest of the airline industry.
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.
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Change
|
CASM
(cents)
|
15.34
|
|
|
15.44
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(3.08)
|
|
|
(3.72)
|
|
|
|
Ancillary businesses and
refinery
|
(0.46)
|
|
|
(0.48)
|
|
|
|
Profit sharing
|
(0.59)
|
|
|
(0.50)
|
|
|
|
CASM-Ex
|
11.21
|
|
|
10.74
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Change
|
CASM
(cents)
|
14.67
|
|
|
14.87
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Aircraft fuel and related
taxes
|
(3.10)
|
|
|
(3.43)
|
|
|
|
Ancillary businesses and
refinery
|
(0.45)
|
|
|
(0.64)
|
|
|
|
Profit sharing
|
(0.60)
|
|
|
(0.49)
|
|
|
|
CASM-Ex
|
10.52
|
|
|
10.31
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
Capital Expenditures, net. We present net capital
expenditures because management believes investors should be
informed that a portion of these capital expenditures are
reimbursed by a third party.
|
|
|
Three Months
Ended
|
(in
millions)
|
|
December 31,
2019
|
Flight equipment,
including advance payments
|
|
$
|
570
|
|
Ground property and
equipment, including technology
|
|
502
|
|
Net cash flows
related to certain airport construction projects
|
|
(118)
|
|
Capital expenditures,
net
|
|
$
|
954
|
|
|
|
|
|
|
|
|
Year
Ended
|
(in
millions)
|
|
December 31,
2019
|
Flight equipment,
including advance payments
|
|
$
|
3,344
|
|
Ground property and
equipment, including technology
|
|
1,592
|
|
Net cash flows
related to certain airport construction projects
|
|
(448)
|
|
Capital expenditures,
net
|
|
$
|
4,488
|
|
|
|
|
|
Adjusted Debt to Earnings Before Interest, Taxes,
Depreciation, Amortization and Rent ("EBITDAR"). We
present adjusted debt to EBITDAR because management believes this
metric is helpful to investors in assessing the company's overall
debt profile. Adjusted debt includes operating lease liabilities.
We calculate EBITDAR by adding depreciation and amortization to
GAAP operating income and adjusting for the fixed portion of
operating lease expense.
|
|
|
|
(in
billions)
|
|
December 31,
2019
|
Debt and finance
lease obligations
|
|
$
|
11
|
|
Plus: Operating lease
liability
|
|
6
|
|
Adjusted
Debt
|
|
$
|
17
|
|
|
|
|
|
|
|
|
Year
Ended
|
(in
billions)
|
|
December 31,
2019
|
GAAP operating
income
|
|
$
|
7
|
|
Adjusted
for:
|
|
|
Depreciation and
amortization
|
|
2
|
|
Fixed portion of operating
lease expense
|
|
1
|
|
EBITDAR
|
|
|
$
|
10
|
|
|
|
|
|
Adjusted Debt to
EBITDAR
|
|
|
1.7x
|
|
Fuel expense, adjusted and Average fuel price per gallon,
adjusted. The tables below show the components of fuel
expense, including the impact of hedging and the refinery on fuel
expense and average price per gallon. We then adjust for MTM
adjustments and settlements for the same reason described under the
heading pre-tax income and net income, adjusted.
|
|
|
|
|
|
Average Price Per
Gallon
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
|
December
31,
|
(in millions, except
per gallon data)
|
2019
|
2018
|
|
|
2019
|
2018
|
Fuel purchase
cost
|
$
|
2,013
|
|
$
|
2,318
|
|
|
|
$
|
2.02
|
|
$
|
2.38
|
|
Fuel hedge
impact
|
23
|
|
(33)
|
|
|
|
0.02
|
|
(0.03)
|
|
Refinery segment
impact
|
(24)
|
|
42
|
|
|
|
(0.03)
|
|
0.04
|
|
Total fuel
expense
|
$
|
2,012
|
|
$
|
2,327
|
|
|
|
$
|
2.01
|
|
$
|
2.39
|
|
MTM adjustments and
settlements
|
(23)
|
|
33
|
|
|
|
(0.02)
|
|
0.03
|
|
Total fuel expense,
adjusted
|
$
|
1,989
|
|
$
|
2,360
|
|
|
|
$
|
1.99
|
|
$
|
2.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Price Per
Gallon
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
December
31,
|
(in millions, except
per gallon data)
|
2019
|
2018
|
|
|
2019
|
2018
|
Fuel purchase
cost
|
$
|
8,581
|
|
$
|
9,131
|
|
|
|
$
|
2.04
|
|
$
|
2.22
|
|
Fuel hedge
impact
|
14
|
|
(53)
|
|
|
|
—
|
|
(0.01)
|
|
Refinery segment
impact
|
(76)
|
|
(58)
|
|
|
|
(0.02)
|
|
(0.01)
|
|
Total fuel
expense
|
$
|
8,519
|
|
$
|
9,020
|
|
|
|
$
|
2.02
|
|
$
|
2.20
|
|
MTM adjustments and
settlements
|
(14)
|
|
53
|
|
|
|
—
|
|
0.01
|
|
Total fuel expense,
adjusted
|
$
|
8,505
|
|
$
|
9,073
|
|
|
|
$
|
2.02
|
|
$
|
2.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Delta Air Lines