- Delivering industry-leading operational and financial performance year-to-date
- Expect record December quarter revenue and an 11% – 13% operating margin, expanding over prior year
- Generating strong Return on Invested Capital, exceeding cost of capital by 5 points
- Upgraded to investment grade credit rating by Fitch, recognizing continued progression on debt reduction
ATLANTA, October 10, 2024 – Delta Air Lines (NYSE: DAL) today reported financial results for the September
quarter and provided its outlook for the December quarter. Highlights of the September quarter, including both
GAAP and adjusted metrics, are on page five and incorporated here.
“Thanks to the exceptional work of the entire Delta team, we continue to lead the industry operationally and
financially, with a double-digit operating margin and nearly $3 billion of free cash flow generation year-to-date. In
recognition of the outstanding efforts of our employees this year, we have accrued almost $1 billion of profit sharing
towards the upcoming February payout,” said Ed Bastian, Delta’s chief executive officer.
“With an improving industry backdrop and strong demand for travel on Delta, we are positioned to finish the year
strong. We expect our December quarter pre-tax profit to grow 30 percent over last year to $1.4 billion, which would
mark one of the most profitable fourth quarters in our history.”
September Quarter 2024 GAAP Financial Results
- Operating revenue of $15.7 billion
- Operating income of $1.4 billion with an operating margin of 8.9 percent
- Pre-tax income of $1.6 billion with a pre-tax margin of 10.0 percent
- Earnings per share of $1.97
- Operating cash flow of $1.3 billion
- Payments on debt and finance lease obligations of $263 million
- Total debt and finance lease obligations of $17.7 billion at quarter end
September Quarter 2024 Non-GAAP Financial Results (including the impact of the CrowdStrike-caused outage)
- Operating revenue of $14.6 billion
- Operating income of $1.4 billion with an operating margin of 9.4 percent
- Pre-tax income of $1.3 billion with a pre-tax margin of 8.6 percent
- Earnings per share of $1.50
- Operating cash flow of $1.3 billion
- Free cash flow of $95 million, $2.7 billion year-to-date
- Adjusted debt to EBITDAR of 2.9x
Financial Impact Of The CrowdStrike-Caused Outage
On August 8, Delta disclosed the financial impact of the CrowdStrike-caused outage for the September quarter. The
direct revenue impact of the incident was approximately $380 million, primarily driven by refunding customers for
cancelled flights and providing customer compensation in the form of cash and SkyMiles. The non-fuel expense
impact was $170 million, primarily due to customer expense reimbursements and crew-related costs. Fuel expense
was $50 million lower than it would have been as a result of the 7,000 flight cancellations over the five-day period.
Financial Guidance1
Additional metrics for financial modeling can be found in the Supplemental Information section under Quarterly
Results on ir.delta.com.
Revenue Environment and Outlook
“Through the September quarter, unit revenue growth improved sequentially in all geographic entities, reflecting an
improved equilibrium between demand and supply as industry growth moderated,” said Glen Hauenstein, Delta's
president.
“For the December quarter, we expect the improved trends to continue and bookings for the holiday period are
strong. We anticipate a 1 point impact to total unit revenue from reduced travel demand around the election. With
this, total revenue growth is expected to be up 2 percent to 4 percent compared to prior year on capacity growth of
3 percent to 4 percent. Industry supply growth continues to rationalize, positioning Delta well in the final quarter of
the year and as we move into 2025.”
Unit revenue growth improved sequentially through the September quarter: Delta delivered
September quarter revenue of $14.6 billion, including the $380 million impact from the CrowdStrike-caused
outage. Adjusted total unit revenue (TRASM) was down 3.6 percent versus 2023, including a 1.1 point
impact from the outage. In the month of September, Domestic and Transatlantic unit revenue growth
inflected positive.
- Diversified revenue streams driving Delta’s differentiation: Delta's diversified revenue base, led
primarily by premium and loyalty, made up 57 percent of total revenue in the September quarter. Premium
revenue growth continued to outpace main cabin in Domestic and International. Total loyalty revenue grew
6 percent year-over-year driven by award redemptions and growth in co-brand card spend. American
Express remuneration was $1.8 billion, 6 percent higher than the September quarter of 2023. Cargo
revenue grew 27 percent over prior year on international volume strength. - International trends positive, led by Transatlantic: International demand remains strong with trends
improving through the quarter in Transatlantic and Latin. Transatlantic unit revenues inflected positive in the
month of September as Paris demand rebounded following the Olympics. Latin America revenue benefited
from the continued maturation of Delta’s joint venture with LATAM in South America. Network restoration
continues in the Pacific, with double-digit revenue growth driven by travel to South Korea and Japan.
3 - Corporate sales growth continues: Managed corporate travel sales* were up 7 percent over the
September quarter of 2023, with double-digit growth in the tech, media and banking sectors. Recent
corporate survey results indicate that 85 percent of companies expect their travel spend to increase in
2025.
*Corporate travel sales represent the revenue from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time
period
Cost Performance and Outlook
“For the December quarter, we expect to return to year-over-year earnings growth and margin expansion with an
outlook for December quarter earnings of $1.60 to $1.85 per share on an 11 percent to 13 percent operating
margin,” said Dan Janki, Delta’s chief financial officer. “Our teams are consistently running a great operation,
enabling us to drive efficiency and deliver non-fuel unit cost growth of low-single-digits for the year, consistent with
our outlook at the start of the year.”
September Quarter 2024 Cost Performance
- Operating expense of $14.3 billion and adjusted operating expense of $13.2 billion
- Adjusted non-fuel costs of $10.1 billion
- Non-fuel CASM was 13.30¢, an increase of 5.7 percent year-over-year
- Adjusted fuel expense of $2.8 billion was down 6 percent year-over-year
- Adjusted fuel price of $2.53 per gallon decreased 9 percent year-over-year with a refinery loss of 3¢ per
gallon - Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.4, a 0.8 percent improvement year-over-year
Balance Sheet, Cash and Liquidity
“Strong cash generation has supported debt repayment of $2.4 billion year-to-date, bringing gross leverage to less
than 3 times,” Janki said. “During the quarter, we achieved a meaningful milestone with our balance sheet receiving
an upgrade to investment grade from Fitch. Delta is now investment-grade rated at Moody's and Fitch, and one
notch away at S&P with a positive outlook.”
- Adjusted net debt of $18.7 billion at September quarter end, a reduction of $2.9 billion from the end of 2023
- Payments on debt and finance lease obligations for the September quarter of $263 million
- Weighted average interest rate of 4.3 percent with 94 percent fixed rate debt and 6 percent variable rate
debt - Adjusted operating cash flow in the September quarter of $1.3 billion, and with gross capital expenditures of
$1.3 billion, free cash flow was $95 million - Air Traffic Liability ended the quarter at $8.3 billion
September Quarter 2024 Highlights
Operations, Network and Fleet
- Operated the most on-time airline year-to-date, leading competitive set in on-time departures and arrivals
and network peers in completion factor1 - Took delivery of 27 aircraft year-to-date and nine in the September quarter, including the A321neo, A330-
900 and A350-900 - Building on record performance in 2024, Delta announced its Transatlantic summer schedule for 2025,
offering over 700 weekly flights to 33 destinations, including seven new routes - Signed codeshare agreements with Scandinavian Airlines System (SAS), expanding connection
opportunities between North America and Scandinavia, and with Saudia Airlines, building on the existing
relationship and expanding destination options between North America and the Arabian Peninsula - Announced first-ever nonstop service from SLC – ICN beginning next summer, growing Delta's global
network and providing connections to key destinations across Asia - Introduced five new routes from Austin, Texas, beginning in March 2025, providing customers with more
options than ever before - Announced five new routes including two new destinations to Mexico this winter, building on Delta's
partnership with Aeromexico and increasing connectivity to popular Mexican destinations
Culture and People
- Accrued $320 million in profit sharing during the quarter, resulting in $964 million accrued year-to-date
- Earned Great Place To Work® Certification™ for the sixth consecutive year based on the Trust Index
survey of Delta Employees - Recognized on the 2024 PEOPLE Companies That Care List, the only airline to make the list
- Named No. 1 in the Forbes 2024 list of America's Best Employers for New Grads
- Achieved the No. 2 spot on the Indeed Workplace Wellbeing 100, an index of public companies that excel in
employee wellbeing and outperform the market - Ranked No. 6 on the Forbes list of America’s Best Employers for Tech Workers
- Contributed $500,000 to the American Red Cross to support Hurricane Helene relief efforts
- 900+ Delta people volunteered across the U.S. on 9/11 with the 9/11 Day organization to assemble meals
for Americans facing food insecurity
Customer Experience and Loyalty
- Expanded the introduction of fast, free Wi-Fi for SkyMiles members with over 90 percent of domestic
mainline network now equipped - Completed the new Delta One Lounge in LAX (opened to customers October 10), spanning over 10,000
square feet, the second Delta One Lounge debuted in 2024, with a lounge now available at both ends of
JFK – LAX flights - Expanded Delta Sync seatback product to over 330 aircraft in the first year since its debut
- Rolled out Delta Premium Select on select transcontinental flights in September with continued rollout
throughout the remainder of the year - Debuted Delta Business Traveler, a complimentary program that provides individual business travelers with
exclusive offers from Delta and partners - Named official airline of the WNBA, transporting all 12 of the league’s teams throughout the regular season
and playoffs - Expanded Global Corporate Priority benefits program to include LATAM Airlines, further enhancing the
travel experience for business customers
Environmental, Social and Governance
- Partnered with Flint Hills Resources to develop a 30-million gallon per year Sustainable Aviation Fuel (SAF)
blending facility in Minneapolis (MSP), Delta's second largest hub - Elevated partnership with Greater MSP and Minnesota SAF Hub by sponsoring the first ever SAF delivered
to MSP airport, which was used for the inaugural SAF flight from MSP – LGA as part of Climate Week - Delta’s Carbon Council led cross-enterprise initiatives, saving over 16 million gallons of fuel year-to-date via
weight reductions, speed optimization and lowering Auxiliary Power Unit (APU) utilization - Held the inaugural Sustainable Skies Challenge, a project in partnership with Junior Achievement (JA)
Europe aimed to formulate innovative sustainable aviation solutions among young European students - Hosted annual Women Inspiring the Next Generation (WING) flight, bringing 130 girls to NASA's Kennedy
Space Center on a flight operated entirely by women, exposing girls to career opportunities in aviation
1FlightStats preliminary data for Delta flights mainline system, Delta's competitive set (AA, UA, B6, AS, WN, and DL) and Delta's network peers (AA, UA, and DL) from Jan 1 – Sep 30, 2024. On-
time is defined as A0
September Quarter 2024 Results
September quarter results have been adjusted primarily for the third-party refinery sales and unrealized
gains/losses on investments as described in the reconciliations in Note A.
For the full report click here.
