DELTA AIR LINES, INC.

Previous wording

Our operating income for the March 2025 quarter was $569 million, a decrease of $45 million compared to the March 2024 quarter.

Current wording

Our operating income for the June 2025 quarter was $2.1 billion, a decrease of $165 million compared to the June 2024 quarter.

Previous wording

Revenue. Compared to the March 2024 quarter, our total revenue increased $292 million, or 2%, due to strength in demand for premium products and long-haul international travel and a 4% increase in capacity. Passenger revenue increased $349 million compared to the March 2024 quarter on an increase in revenue for premium products and loyalty travel awards. Total revenue, adjusted (a non-GAAP financial measure, which excludes revenue related to refinery sales to third parties) increased in the March 2025 quarter by $415 million, or 3.3%, compared to the March 2024 quarter.

Current wording

Revenue. Compared to the June 2024 quarter, our total revenue decreased $10 million. Passenger revenue increased $26 million compared to the June 2024 quarter on an increase in revenue for premium products and loyalty travel awards, partially offset by a decline in main cabin due to reduced consumer and corporate confidence caused by macroeconomic uncertainty particularly early in the June 2025 quarter. Total revenue, adjusted (a non-GAAP financial measure, which excludes revenue related to refinery sales to third parties) increased in the June 2025 quarter by $100 million, or 1%, compared to the June 2024 quarter.

Previous wording

Operating Expense. Total operating expense in the March 2025 quarter increased $337 million, or 3%, compared to the March 2024 quarter, primarily due to costs associated with the 4% increase in capacity, higher employee costs from increased wages, and increased landing fees and other rents partially offset by lower aircraft fuel and related taxes. Total operating expense, adjusted (a non-GAAP financial measure, which primarily excludes expenses related to refinery sales to third parties) in the March 2025 quarter increased $465 million, or 4%, compared to the March 2024 quarter.

Current wording

Operating Expense. Total operating expense in the June 2025 quarter increased $155 million, or 1%, compared to the June 2024 quarter, primarily due to costs associated with a 4% increase in capacity, higher employee costs from increased wages, and increased landing fees and other rents largely offset by lower aircraft fuel and related taxes. Total operating expense, adjusted (a non-GAAP financial measure, which primarily excludes expenses related to refinery sales to third parties) in the June 2025 quarter increased $320 million, or 2%, compared to the June 2024 quarter, primarily due to costs associated with the increase in capacity, largely offset by lower aircraft fuel and related taxes.

Previous wording

Our total operating cost per available seat mile ("CASM") decreased 2% compared to the March 2024 quarter, while non-fuel unit cost ("CASM-Ex", a non-GAAP financial measure) increased 2.6%.

Current wording

Our total operating cost per available seat mile ("CASM") decreased 3% compared to the June 2024 quarter, while non-fuel unit cost ("CASM-Ex", a non-GAAP financial measure) increased 2.7%.

Previous wording

Cash Flow. Our cash, cash equivalents, short-term investments and aggregate undrawn principal amount available under our revolving credit facilities ("liquidity") as of March 31, 2025 was $6.8 billion.

Current wording

Cash Flow. Our cash, cash equivalents, short-term investments and aggregate undrawn principal amount available under our revolving credit facilities ("liquidity") as of June 30, 2025 was $6.4 billion.

Previous wording

During the March 2025 quarter, operating activities generated $2.4 billion, primarily from ticket sales and the sale of SkyMiles to our partners. Total cash sales to American Express were $1.9 billion in the March 2025 quarter, an increase of approximately 13% compared to the March 2024 quarter.

Current wording

During the June 2025 quarter, operating activities generated $1.9 billion, primarily from ticket sales and the sale of SkyMiles to our partners. Total cash sales to American Express were approximately $2.0 billion in the June 2025 quarter, an increase of approximately 10% compared to the June 2024 quarter.

Previous wording

Cash flows used in investing activities during the quarter totaled $1.2 billion primarily from capital expenditures. These operating and investing activities yielded free cash flow (a non-GAAP financial measure) of $1.3 billion in the March 2025 quarter. Additionally, we had cash outflows of $531 million related to repayments of our debt and finance leases.

Current wording

Cash flows used in investing activities during the quarter totaled $1.2 billion primarily from capital expenditures. These operating and investing activities yielded free cash flow (a non-GAAP financial measure) of $733 million in the June 2025 quarter. Additionally, we issued $2.0 billion in aggregate principal amount of unsecured notes and had cash outflows of $2.9 billion related to repayments of our debt and finance leases, including using a portion of the proceeds from the notes offering to repay the Payroll Support Program loan due 2030 ("PSP1 Loan").

Previous wording

Compared to the March 2024 quarter, total revenue increased $292 million, or 2%, due to strength in demand for premium products and long-haul international travel and a 4% increase in capacity.

Current wording

Compared to the June 2024 quarter, total revenue decreased $10 million, due to a decrease in main cabin ticket revenue offset by strength in demand for premium products and long-haul international travel.

Previous wording

Domestic passenger revenue increased 1% in the March 2025 quarter compared to the March 2024 quarter on a 4% increase in capacity. Domestic revenue growth was primarily driven by strength in demand for premium products, which was mitigated by softness in main cabin demand on reduced consumer and corporate confidence caused by increased macro uncertainty, particularly toward the end of the quarter.

Current wording

Domestic passenger revenue decreased 1% in the June 2025 quarter compared to the June 2024 quarter on a 4% increase in capacity. Domestic revenue decreased due to a reduction in main cabin ticket revenue on reduced consumer and corporate demand caused by macroeconomic uncertainty particularly early in the June 2025 quarter.

Previous wording

International passenger revenue for the March 2025 quarter increased compared to the March 2024 quarter in each geographic region. The Atlantic region continues to experience strong demand for travel. Our Latin America and Pacific regions revenue reflects the continued maturation of our joint ventures and network restoration.

Current wording

International passenger revenue for the June 2025 quarter increased compared to the June 2024 quarter. The Atlantic region continues to experience strong demand for travel as we expanded service to European destinations compared to the prior year. Our Pacific region revenue reflects the continued maturation of our joint ventures and network restoration.

Previous wording

Refinery. Refinery sales to third parties decreased $123 million compared to the March 2024 quarter. See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales.

Current wording

Refinery. Refinery sales to third parties decreased $110 million compared to the June 2024 quarter. See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales.

Previous wording

Ancillary Businesses. This includes revenues from aircraft maintenance services we provide to third parties and our vacation package operations.

Current wording

Ancillary Businesses. This includes revenues from aircraft maintenance services we provide to third parties and our vacation package operations. The increase is attributable to higher volume of engine repairs by our aircraft maintenance services operation during the current quarter.

Previous wording

Salaries and Related Costs. The increase in salaries and related costs primarily resulted from the implementation of base pay increases for eligible employees of 5% effective June 1, 2024 and 4% for Delta pilots on January 1, 2025.

Current wording

Salaries and Related Costs. The increase in salaries and related costs primarily resulted from the implementation of base pay increases for eligible employees of 5% effective June 1, 2024 and 4% effective June 1, 2025, and 4% for Delta pilots on January 1, 2025.

Previous wording

Aircraft Fuel and Related Taxes. Aircraft fuel and related taxes decreased $188 million compared to the March 2024 quarter primarily due to a 13% decrease in the market price of jet fuel offset by a 5% increase in consumption on a 4% increase in capacity. We expect that fuel consumption for the remainder of 2025 will increase compared to 2024 aligned with capacity, partially offset by improvements in the fuel efficiency of our fleet. The refinery generated a small operating loss resulting in no incremental cost per gallon compared to a benefit of five cents per gallon in the March 2024 quarter. We expect jet fuel prices to remain volatile.

Current wording

Aircraft Fuel and Related Taxes. Aircraft fuel and related taxes decreased $355 million compared to the June 2024 quarter primarily due to a 17% decrease in the market price of jet fuel partially offset by an increase in consumption consistent with the 4% increase in capacity. We expect that fuel consumption for the remainder of 2025 will increase compared to 2024 aligned with capacity, partially offset by improvements in the fuel efficiency from our new aircraft acquisitions. The refinery generated a one cent incremental cost per gallon compared to a benefit of six cents per gallon in the June 2024 quarter. We expect jet fuel prices to remain volatile.

Previous wording

See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales.

Current wording

See "Refinery Segment" below for additional details on the refinery's operations.

Previous wording

Interest expense, net. Interest expense, net includes interest expense and interest income. This decreased compared to the prior year primarily due to reduced interest expense resulting from our debt reduction initiatives. During 2024, we made payments of $4.0 billion related to our debt and finance lease obligations. We have continued to pay down our debt during the three months ended March 31, 2025 with $531 million of payments on debt and finance lease obligations. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, and refinance higher cost debt.

Current wording

Interest expense, net. Interest expense, net includes interest expense and interest income. This decreased compared to the prior year primarily due to reduced interest expense resulting from our debt reduction initiatives. During 2024, we made payments of $4.0 billion related to our debt and finance lease obligations. We have continued to pay down our debt during the six months ended June 30, 2025 with $3.5 billion of payments on debt and finance lease obligations. During the June 2025 quarter, we issued $2.0 billion in aggregate principal amount of unsecured notes and used a portion of the proceeds to repay the PSP1 Loan. The new unsecured notes carry a lower interest rate than the PSP1 Loan repaid. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, and refinance higher cost debt.

Previous wording

We project our annual effective tax rate for 2025 will be between 24% and 26%. In certain periods, we may have adjustments to our net deferred tax liabilities as a result of changes in prior year estimates, mark-to-market adjustments on our equity investments and tax laws enacted during the period, which will impact the effective tax rate for that period.

Current wording

We project our annual effective tax rate for 2025 will be between 22% and 25%. In certain periods, we may have adjustments to our net deferred tax liabilities as a result of changes in prior year estimates, mark-to-market adjustments on our equity investments and tax laws enacted during the period, which will impact the effective tax rate for that period.

Previous wording

The refinery operated by Monroe primarily produces gasoline, diesel and jet fuel. Monroe exchanges non-jet fuel products the refinery produces with third parties for jet fuel consumed in our airline operations. The jet fuel produced and procured through exchanging gasoline and diesel fuel produced by the refinery typically provides approximately 200,000 barrels per day, or approximately 75% of our consumption, for use in our airline operations. The refinery regularly optimizes its sales and exchange activities based on market conditions. The refinery generated a small operating loss in the three months ended March 31, 2025 compared to operating income in the three months ended March 31, 2024, primarily as a result of lower pricing of refined products.

Current wording

The refinery operated by Monroe primarily produces gasoline, diesel and jet fuel. Monroe exchanges non-jet fuel products the refinery produces with third parties for jet fuel consumed in our airline operations. The jet fuel produced and procured through exchanging gasoline and diesel fuel produced by the refinery typically provides approximately 200,000 barrels per day, or approximately 75% of our consumption, for use in our airline operations. The refinery regularly optimizes its sales and exchange activities based on market conditions. The refinery generated a small operating loss in the six months ended June 30, 2025 compared to operating income in the six months ended June 30, 2024, primarily as a result of lower pricing of refined products.

Previous wording

(1)We own 197 and have operating leases for two of these regional aircraft. The remainder are owned or leased by SkyWest Airlines, Inc. or Republic Airways, Inc.

Current wording

(1)We own 201 and have operating leases for two of these regional aircraft. The remainder are owned or leased by SkyWest Airlines, Inc. or Republic Airways, Inc.

Previous wording

(2)Excluded from the total operating count above are six owned CRJ-700 aircraft and one operating leased CRJ-900 aircraft which are temporarily parked as of March 31, 2025.

Current wording

(2)Excluded from the total operating count above are three owned CRJ-700 aircraft and one operating leased CRJ-900 aircraft which are temporarily parked as of June 30, 2025.

Previous wording

As of March 31, 2025, we had $6.8 billion in cash, cash equivalents, short-term investments and aggregate undrawn principal amount available under our revolving credit facilities. We expect to meet our liquidity needs for the next twelve months with cash and cash equivalents and cash flows from operations. We expect to meet our long-term liquidity needs with cash flows from operations and financing arrangements.

Current wording

As of June 30, 2025, we had $6.4 billion in cash, cash equivalents, short-term investments and aggregate undrawn principal amount available under our revolving credit facilities. We expect to meet our liquidity needs for the next twelve months with cash and cash equivalents and cash flows from operations. We expect to meet our long-term liquidity needs with cash flows from operations and financing arrangements.

Previous wording

We generated cash flows from operations of $2.4 billion in both the three months ended March 31, 2025 and 2024. We expect to continue generating positive cash flows from operations during the remainder of 2025.

Current wording

We generated cash flows from operations of $4.2 billion and $4.9 billion in the six months ended June 30, 2025 and 2024. We expect to continue generating positive cash flows from operations during the remainder of 2025.

Previous wording

Fuel. Fuel expense represented approximately 18% and 20% of our total operating expense for the three months ended March 31, 2025 and 2024, respectively. The market price for jet fuel is volatile, which can impact the comparability of our periodic cash flows from operations. Fuel consumption was higher during the three months ended March 31, 2025 compared to the prior year period due to the increase in capacity. We expect that fuel consumption for the remainder of 2025 will increase compared to 2024 aligned with capacity, partially offset by improvements in the fuel efficiency of our fleet.

Current wording

Fuel. Fuel expense represented approximately 17% and 20% of our total operating expense for the six months ended June 30, 2025 and 2024, respectively. The market price for jet fuel is volatile, which can impact the comparability of our periodic cash flows from operations. Fuel consumption was higher during the three and six months ended June 30, 2025 compared to the prior year period due to the increase in capacity. We expect that fuel consumption for the remainder of 2025 will increase compared to 2024 aligned with capacity, partially offset by improvements in the fuel efficiency from our new aircraft acquisitions.

Previous wording

Our broad-based employee profit sharing program provides that for each year in which we have an annual pre-tax profit, as defined by the terms of the program, we will pay a specified portion of that profit to eligible employees. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. During the three months ended March 31, 2025, we accrued $124 million in profit sharing expense based on the year-to-date performance and current expectations for 2025 profit.

Current wording

Our broad-based employee profit sharing program provides that for each year in which we have an annual pre-tax profit, as defined by the terms of the program, we will pay a specified portion of that profit to eligible employees. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. During the six months ended June 30, 2025, we accrued $594 million in profit sharing expense based on the year-to-date performance and current expectations for 2025 profit.

Previous wording

Sale of Miles to Participating Companies. Customers earn miles based on their spending with participating companies such as credit card, retail, ridesharing, car rental and hotel companies with which we have marketing agreements to sell miles. Payments are typically due to us monthly based on the volume of miles sold during the period. Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. Total cash sales to American Express were $1.9 billion in the three months ended March 31, 2025, an increase of 13% compared to the prior year period. See Note 2 of the Notes to the Condensed Consolidated Financial Statements for further information regarding the cash sales from marketing agreements.

Current wording

Sale of Miles to Participating Companies. Customers earn miles based on their spending with participating companies such as credit card, retail, ridesharing, car rental and hotel companies with which we have marketing agreements to sell miles. Payments are typically due to us monthly based on the volume of miles sold during the period. Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. Total cash sales to American Express were $3.9 billion in the six months ended June 30, 2025, an increase of 9% compared to the prior year period. See Note 2 of the Notes to the Condensed Consolidated Financial Statements for further information regarding the cash sales from marketing agreements.

Previous wording

Capital Expenditures. Our capital expenditures were $1.2 billion for both the three months ended March 31, 2025 and 2024. We have committed to future aircraft purchases and have obtained, but are under no obligation to use, long-term financing commitments for a substantial portion of the purchase price of the aircraft. Our expected 2025 capital spend of approximately $5.0 billion will be primarily for aircraft, including deliveries and advance deposit payments, as well as fleet modifications and technology enhancements.

Current wording

Capital Expenditures. Our capital expenditures were $2.4 billion and $2.5 billion for the six months ended June 30, 2025 and 2024, respectively. We have committed to future aircraft purchases and have obtained, but are under no obligation to use, long-term financing commitments for a substantial portion of the purchase price of the aircraft. Our expected 2025 capital spend of approximately $5.0 billion will be primarily for aircraft, including deliveries and advance deposit payments, as well as fleet modifications and technology enhancements.

Previous wording

Debt and Finance Leases. In the three months ended March 31, 2025, we had cash outflows of $531 million related to repayments of our debt and finance lease obligations. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, and refinance higher cost debt.

Current wording

Debt and Finance Leases. In the six months ended June 30, 2025, we had cash outflows of $3.5 billion related to repayments of our debt and finance lease obligations. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, and refinance higher cost debt.

Previous wording

In February 2025, Moody's credit rating agency upgraded its rating for Delta to Baa2, an investment grade rating. See Note 5 of the Notes to the Condensed Consolidated Financial Statements for further information on our debt agreements.

Current wording

See Note 5 of the Notes to the Condensed Consolidated Financial Statements for further information on our debt agreements.

Previous wording

Capital Return to Shareholders. In the March 2025 quarter, the Board of Directors approved a quarterly dividend of $0.15 per share which we paid on March 20, 2025 for total cash dividends of $99 million.

Current wording

Capital Return to Shareholders. On April 24, 2025, the Board of Directors approved a quarterly dividend of $0.15 per share which we paid on June 3, 2025 for total cash dividends of $97 million. Total cash dividends for the six months ended June 30, 2025 were $196 million.