Delivered industry-leading operational performance, underpinning trusted brand and customer loyalty Record June quarter revenue with mid-teens operating margin and strong cash generation Continued debt repayment, progressing balance sheet toward investment grade metrics  Announced a 50 percent increase to dividend payment beginning in September quarter Reiterating full year guide for EPS of $6 to $7 and free cash flow of $3 to $4 billion ATLANTA, July 11, 2024 /PRNewswire/ -- Delta Air Lines (NYSE:DAL) today reported financial results for the June quarter and provided its outlook for the September quarter.  Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five and incorporated here. "Thanks to the incredible work of our 100,000 people, Delta is delivering industry-leading operational performance and best-in-class service for our customers.  We delivered record June quarter revenue and pre-tax income of $2 billion with a 15 percent operating margin.  Our people are the best in the industry, and we are pleased to recognize their efforts with more than $640 million accrued in the first half toward next year's profit sharing," said Ed Bastian, Delta's chief executive officer. "For the September quarter, we expect a double-digit operating margin and a pre-tax profit of approximately $1.5 billion.  With strong first half results and visibility into the second half, we remain confident in our full-year guidance." June Quarter 2024 GAAP Financial Results Operating revenue of $16.7 billion Operating income of $2.3 billion with an operating margin of 13.6 percent Pre-tax income of $1.8 billion with a pre-tax margin of 10.6 percent Earnings per share of $2.01 Operating cash flow of $2.5 billion Payments on debt and finance lease obligations of $1.4 billion Total debt and finance lease obligations of $18.0 billion at quarter end June Quarter 2024 Adjusted Financial Results Operating revenue of $15.4 billion, 5.4 percent higher than the June quarter 2023 Operating income of $2.3 billion with an operating margin of 14.7 percent Pre-tax income of $2.0 billion with a pre-tax margin of 13.0 percent Earnings per share of $2.36 Operating cash flow of $2.5 billion Free cash flow of $1.3 billion Adjusted debt to EBITDAR of 2.8x, down from 3.0x at the end of 2023 Return on invested capital of 13.1 percent Financial Guidance1  FY 2024 Forecast Earnings Per Share $6 - $7 Free Cash Flow ($B) $3 - $4 Adjusted Debt to EBITDAR 2x - 3x 3Q24 Forecast Total Revenue YoY Up 2% - 4% Operating Margin 11% - 13% Earnings Per Share $1.70 - $2.00 1Non-GAAP measures; Refer to Non-GAAP reconciliations for historical 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 "Peak summer travel demand remains strong and Delta is delivering elevated experiences for our customers.  Consistent with our guidance, we generated record June quarter revenue 5.4 percent higher than the prior year.  Diverse revenue streams, including premium and loyalty, contributed higher growth and margins, underpinning Delta's industry-leading financial performance and increasing our financial durability," said Glen Hauenstein, Delta's president.  "As our international network and core hubs approach full restoration and we return to a normal cadence of retiring aircraft, Delta's capacity growth is decelerating into the second half.  We expect September quarter capacity growth of 5 to 6 percent and revenue growth of 2 to 4 percent, with sequential improvement in unit revenue trends through the quarter." Record June quarter revenue with leading operational performance: Delta delivered June quarter revenue that was 5.4 percent higher than 2023, driven by strong demand and best-in-class operations. Year to date, Delta has led the industry in completion factor and on-time performance, and operated 39 cancel-free, brand-perfect days. Adjusted total unit revenue (TRASM) was down 2.6 percent from the prior year. Revenue diversification driving Delta's differentiation: Premium, loyalty and other diversified revenue streams comprised 56 percent of total revenue. Premium revenue grew 10 percent versus the June quarter 2023, with premium unit revenues positive year-over-year. Loyalty revenue was up 8 percent, driven by co-brand spend growth and increasing premium card mix. Remuneration from American Express for the June quarter was $1.9 billion, approximately 9 percent higher than 2023. Cargo revenue grew 16 percent year-over-year, a significant improvement from prior trends. Corporate travel demand grew at double-digit levels: Managed corporate travel volumes* have grown double-digits for six consecutive months, with broad-based demand as all sectors increased year-over-year. Recent corporate survey results indicate that 90 percent of companies expect their travel volumes to increase or stay the same in the September quarter and beyond. International performance built on record 2023: International passenger revenue was 4 percent higher than June quarter of 2023. Demand across the Transatlantic remains very strong, with unit revenue in line with last year's record performance excluding the impact from the summer Olympics in Paris. Pacific and Latin America accounted for the majority of international capacity growth on continued network restoration and improving connectivity with our JV partners. *Corporate travel volumes represent the number of tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period Cost Performance and Outlook "For the June quarter, we came in at the midpoint of our guidance with earnings of $2.36 per share.  Delta's operational excellence drove an incremental point of capacity growth and unit cost favorability, with non-fuel unit costs 0.6 percent higher than last year," said Dan Janki, Delta's chief financial officer.  "Growth continues to normalize and our teams are consistently running a great operation, enabling us to deliver efficiency.  In the September quarter, we expect non-fuel unit costs to increase 1 to 2 percent year-over-year as capacity growth moderates." June Quarter 2024 Cost Performance Operating expense of $14.4 billion and adjusted operating expense of $13.1 billion Adjusted non-fuel costs of $9.8 billion Non-fuel CASM was 13.14¢, an increase of 0.6 percent year-over-year Adjusted fuel expense of $2.8 billion was up 12 percent year-over-year Adjusted fuel price of $2.64 per gallon increased 5 percent year-over-year with a refinery benefit of 6¢ per gallon Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.3, a 1.1 percent improvement year-over-year Balance Sheet, Cash and Liquidity "Through the first half of the year, Delta delivered $2.7 billion in free cash flow, enabling $2.1 billion in debt repayment and a 50 percent increase in our quarterly dividend beginning in the September quarter," Janki said.  "Debt reduction remains our top financial priority and we are progressing toward investment grade ratings, with gross leverage improving to 2.8x at the end of the first half." Adjusted net debt of $19.2 billion at June quarter end, a reduction of $2.3 billion from the end of 2023 Payments on debt and finance lease obligations for the June quarter of $1.4 billion 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 June quarter of $2.5 billion, and with gross capital expenditures of $1.2 billion, free cash flow was $1.3 billion Air Traffic Liability ended the quarter at $9.4 billion, up $2.4 billion compared to the end of 2023 June Quarter 2024 Highlights Operations, Network and Fleet Named best U.S. airline by The Points Guy for the sixth consecutive year based on operational reliability, customer experience, network, cost and loyalty offerings Accepted the 2024 Airline of the Year award from aviation publication Air Transport World for Delta's outstanding operational performance, commitment to safety and premium customer service Operated the most reliable airline among our competitors, leading on all key metrics, including completion factor, and on-time departures and arrivals1 Took delivery of 11 aircraft in the June quarter, bringing the total year-to-date to 18, including the A321neo, A220-300 and A350-900 Announced an agreement with Riyadh Air to build a partnership that will expand connectivity and premium travel options across North America, the Kingdom of Saudi Arabia and beyond, including future Delta service between the U.S. and King Khalid International Airport in Riyadh Implemented the largest ever international summer schedule in Delta's history with more than 1,700 weekly flights to 80 international destinations Announced the offering of Delta Premium Select on select JFK-LAX flights beginning in September Launched a new route from Seattle to Taipei in June, further expanding Delta's network in Asia Announced two new routes between Florida and Europe with the October launch of Tampa to Amsterdam and Orlando to London, and resumed daily nonstop service to Tel Aviv from JFK in June Delta TechOps was named Best Total Solutions Provider by The145 in their 2024 Top Shop Awards, and honored with a 2024 Grand Laureate Award by Aviation Week Network Culture and People Accrued $519 million in profit sharing in the June quarter, resulting in $644 million accrued year-to-date Provided a 5 percent base pay increase for eligible employees worldwide, effective June 1, 2024, maintaining our philosophy of industry-leading pay for industry-leading performance Named No. 4 in the Fortune ReturnOnLeadership® ranking of the top 100 companies in the Fortune 500 based on strategic clarity, leadership alignment, connection to purpose and focused action, the only airline included in the top 5 rankings Named to Glassdoor's Best Led Companies list, the only airline to make the list Delta was honored to partner with the Best Defense Foundation to charter a flight for 48 WWII veterans back to Normandy, France to commemorate the 80th anniversary of D-Day Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the seventh consecutive year with a record 15,585 units of blood collected at 373 blood drives in the last 12 months Customer Experience and Loyalty Top-ranked airline by J.D. Power for First Class/Business and Premium Economy passenger satisfaction Named Best Airline in North America for a fourth consecutive year and ranked No. 1 for Best Airline Staff for a third consecutive year at the Skytrax World Airline Awards Unveiled the new Delta One Lounge in JFK, the first of its kind, and spanning 40,000 square feet. The club is the largest and most premium club in Delta's network, offering customers a variety of experiences and amenities from fine dining to spa-like wellness treatments and valet services Announced a partnership with Italian luxury brand Missoni to bring new amenity kits to Delta One passengers, available mid-July on select flights to Italy and Paris before launching worldwide in September Enhanced Delta Sky Clubs across the system with expansions at Miami and LaGuardia airports Continued to roll out fast, free Wi-Fi for SkyMiles members across the fleet, bringing the total number of aircraft equipped to more than 690 Introduced refreshed menus onboard across all cabins for the summer, including recipes from award-winning chefs around the world Launched the limited edition Boeing 747 Delta SkyMiles Reserve Card, made from retired Delta aircraft Environmental, Social and Governance Issued Delta's 2023 ESG Report, which shows how Delta is prioritizing safety and investing in its people and local communities, all while advancing a more sustainable future of travel Hosted "Rising with Resilience," the inaugural convening of cross-divisional diversity, equity and inclusion (DEI) leaders, influencers and allies Recognized by the Port of Seattle through its Sustainable Century Awards program as having the highest percentage of fuel-efficient aircraft in use at Seattle-Tacoma International Airport Joined a collaborative project between Hartsfield-Jackson Atlanta International Airport, Airbus and Plug Power to assess the feasibility of hydrogen fueling at the world's busiest airport 1FlightStats preliminary data for Delta flights mainline system and for Delta's competitive set (AA, UA, B6, AS, WN, and DL), from Apr 1 - June 30, 2024. On-time is defined as A0. June Quarter 2024 Results June quarter results have been adjusted primarily for the third-party refinery sales, unrealized gains/losses 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) 2Q24 2Q23 Operating income 2,267 2,491 (224) (9) % Operating margin 13.6 % 16.0 % (2.4) pts (15) % Pre-tax income 1,773 2,317 (544) (23) % Pre-tax margin 10.6 % 14.9 % (4.3) pts (29) % Net income 1,305 1,827 (522) (29) % Diluted earnings per share 2.01 2.84 (0.83) (29) % Operating revenue 16,658 15,578 1,080 7 % Total revenue per available seat mile (TRASM) (cents) 22.31 22.58 (0.27) (1) % Operating expense 14,391 13,087 1,304 10 % Cost per available seat mile (CASM) (cents) 19.28 18.97 0.31 2 % Fuel expense 2,813 2,516 297 12 % Average fuel price per gallon 2.64 2.52 0.12 5 % Operating cash flow 2,450 2,609 (159) (6) % Capital expenditures 1,308 1,452 (144) (10) % Total debt and finance lease obligations 17,983 20,205 (2,222) (11) %   Adjusted $ Change % Change ($ in millions except per share and unit costs) 2Q24 2Q23 Operating income 2,269 2,494 (225) (9) % Operating margin 14.7 % 17.1 % (2.3) pts (14) % Pre-tax income 2,002 2,220 (218) (10) % Pre-tax margin 13.0 % 15.2 % (2.2) pts (14) % Net income 1,528 1,723 (195) (11) % Diluted earnings per share 2.36 2.68 (0.32) (12) % Operating revenue 15,407 14,613 794 5.4 % TRASM (cents) 20.64 21.18 (0.54) (2.6) % Operating expense 13,138 12,119 1,019 8 % Non-fuel cost 9,808 9,011 797 9 % Non-fuel unit cost (CASM-Ex) (cents) 13.14 13.06 0.08 0.6 % Fuel expense 2,811 2,513 298 12 % Average fuel price per gallon 2.64 2.52 0.11 5 % Operating cash flow 2,458 2,648 (190) (7) % Free cash flow 1,274 1,094 180 16 % Gross capital expenditures 1,216 1,572 (356) (23) % Adjusted net debt 19,170 19,841 (671) (3) % About Delta Air Lines  Through exceptional service and the power of innovation, Delta Air Lines (NYSE:DAL) never stops looking for ways to make every trip feel tailored to every customer.  There are 100,000 Delta people leading the way to deliver a world-class customer experience on over 4,000 daily flights to more than 290 destinations on six continents, connecting people to places and to each other. Delta served more than 190 million customers in 2023 -- safely, reliably and with industry-leading customer service innovation – and was recognized by J.D. Power this year for being No. 1 in First/Business and Premium Economy Passenger Satisfaction. The airline also was again recognized as North America's most on-time airline by Cirium. We remain committed 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 cared for across every point of their journey with us. Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, 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's premium product line is elevated by its unique partnership with Wheels Up Experience. Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the awards from J.D. Power and Cirium, Delta has been recognized as the top U.S. airline by the Wall Street Journal; among Fast Company's Most Innovative Companies; the World's Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; and as one of Glassdoor's Best Places to Work. In addition, Delta has been named to the Civic 50 by Points of Light for the past seven years as one of the most community minded companies in the U.S. Forward Looking StatementsStatements 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 possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with 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; increases 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 that operates the Trainer refinery; failure to receive the expected results or returns from 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 comply with the financial and other covenants in our financing agreements; labor issues; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe's 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 regulation of hazardous substances, 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, 2023. 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) 2024 2023 $ Change % Change 2024 2023 $ Change % Change Operating Revenue: Passenger $      13,841 $      13,205 $           636 5 % $     24,972 $     23,616 $       1,356 6 % Cargo 199 172 27 16 % 377 381 (4) (1) % Other 2,618 2,201 417 19 % 5,057 4,340 717 17 %   Total operating revenue 16,658 15,578 1,080 7 % 30,406 28,337 2,069 7 % Operating Expense: Salaries and related costs 4,012 3,692 320 9 % 7,803 7,078 725 10 % Aircraft fuel and related taxes 2,813 2,516 297 12 % 5,410 5,192 218 4 % Ancillary businesses and refinery 1,463 1,173 290 25 % 2,833 2,298 535 23 % Contracted services 1,041 994 47 5 % 2,065 2,004 61 3 % Landing fees and other rents 766 617 149 24 % 1,515 1,201 314 26 % Aircraft maintenance materials and outside repairs 684 614 70 11 % 1,363 1,199 164 14 % Depreciation and amortization 620 573 47 8 % 1,235 1,137 98 9 % Passenger commissions and other selling expenses 672 651 21 3 % 1,222 1,152 70 6 % Regional carrier expense 580 559 21 4 % 1,130 1,117 13 1 % Passenger service 463 442 21 5 % 876 859 17 2 % Profit sharing 519 595 (76) (13) % 644 667 (23) (3) % Aircraft rent 138 132 6 5 % 274 264 10 4 % Pilot agreement and related expenses — — — — % — 864 (864) (100) % Other 620 529 91 17 % 1,155 1,090 65 6 % Total operating expense 14,391 13,087 1,304 10 % 27,525 26,122