Earnings release
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Exhibit 99.1 CONTACT: Investor Relations Corporate Communications 404-715-2170 404-715-2554 InvestorRelations@delta.com Media@delta.com Delta Air Lines Announces March Quarter 2025 Financial Results Solid March quarter revenue and strong cost performance drove profitability in line with last year Guiding to June quarter operating margin of 11 percent to 14 percent and EPS of $1.70 to $2.30 Reducing planned capacity growth in the second half to flat year on year, aligning supply with demand ATLANTA, April 9, 2025 – Delta Air Lines (NYSE: DAL) today reported financial results for the March quarter and provided its outlook for the June quarter. Highlights of the March quarter, including both GAAP and adjusted metrics, are on page five and incorporated here. “While the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat to prior year and is expected to lead the industry. I would like to thank our people for their outstanding performance and hard work during the quarter,” said Ed Bastian, Delta’s chief executive officer. “With broad economic uncertainty around global trade, growth has largely stalled. In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures.” “We expect June quarter profitability of $1.5 to $2 billion. Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook. Given our position of strength, our bias toward action and the decline in fuel prices, Delta remains well positioned to deliver solid profitability and free cash flow for the year. I expect that our financial results will continue to lead the industry and validate our strategy to create differentiation and greater financial durability.” March Quarter 2025 GAAP Financial Results • Operating revenue of $14.0 billion • Operating income of $569 million with an operating margin of 4.0 percent • Pre-tax income of $320 million with a pre-tax margin of 2.3 percent • Earnings per share of $0.37 • Operating cash flow of $2.4 billion • Payments on debt and finance lease obligations of $531 million • Total debt and finance lease obligations of $15.8 billion at quarter end March Quarter 2025 Non-GAAP Financial Results • Operating revenue of $13.0 billion • Operating income of $591 million with an operating margin of 4.6 percent • Pre-tax income of $382 million with a pre-tax margin of 2.9 percent • Earnings per share of $0.46 • Operating cash flow of $2.4 billion 1
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Financial Guidance1 2Q25 Total Revenue YoY Down 2% - up 2% Operating Margin 11% - 14% Earnings Per Share $1.70 - $2.30 1Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures Given current uncertainty, Delta is not reaffirming full year 2025 financial guidance and will provide an update later in the year as visibility improves. Revenue Environment and Outlook “Delta delivered revenue of $13 billion, 3.3 percent higher than last year, consistent with revised guidance. Through the quarter, diverse, high-margin revenue streams showed resilience, improving over prior year and approaching 60 percent of total revenue,” said Glen Hauenstein, Delta's president. “Based on current trends, we expect June quarter total revenue to be down 2 percent to up 2 percent over prior year, with continued resilience in premium, loyalty and international partially offsetting Domestic and main cabin softness. 2025 is playing out differently than we expected at the start of the year. As a result, we are adapting to current conditions while staying true to our long-term strategy.” • Record March quarter revenue supported by diverse revenue streams: Delta's year-over-year revenue growth of up 3.3 percent in the March quarter was driven by the resilience of diversified revenue streams, which contributed nearly 60 percent of total revenue in the March quarter and grew mid-single digits over prior year. Adjusted total unit revenue (TRASM) was down 1.0 percent from the March quarter of 2024. • Premium and loyalty highlight the strength of Delta's core customer: Premium revenue growth continues to outpace main cabin, growing 7 percent on a year-over-year basis in the March quarter. American Express remuneration of $2.0 billion was a March quarter record, up 13 percent year-over-year, driven by strong cobrand spend and acquisitions. • International revenue grew mid-single digits year-over-year: Pacific revenue grew 16 percent on double-digit capacity growth, with unit revenue inflecting positive. Transatlantic revenue was up 5 percent over prior year, with unit revenue up 8 percent. Latin America revenue grew 5 percent over prior year with modestly negative unit revenue growth. • Corporate growth moderated through the quarter: After starting the year with momentum, a reduction in corporate confidence stalled growth in February and March. For the quarter, corporate sales* were up low-single digits compared to prior year, with strength led by the banking and technology sectors. *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 “Our teams ran a strong operation despite challenging weather at the start of the year, enabling us to drive efficiency and deliver non-fuel unit cost growth of up 2.6 percent over prior year. This was better than our initial expectation and a sequential improvement from the end of 2024,” said Dan Janki, Delta’s chief financial officer. “As we reduce capacity growth, we are taking incremental action to manage costs. We expect non-fuel unit cost growth consistent with our long-term target of up low-single digits in the second quarter and through the rest of the year.” March Quarter 2025 Cost Performance • Operating expense of $13.5 billion and adjusted operating expense of $12.4 billion • Adjusted non-fuel costs of $9.9 billion • Non-fuel CASM was 14.44¢, an increase of 2.6 percent year-over-year • Adjusted fuel expense of $2.4 billion was down 7 percent year-over-year • Adjusted fuel price of $2.45 per gallon decreased 11 percent year-over-year with a breakeven refinery contribution 2
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Balance Sheet, Cash and Liquidity “Delta’s decade-plus commitment to our consistent strategy, investment and execution has created a differentiated and durable business that positions us to navigate periods of uncertainty,” Janki said. “We ended the first quarter with gross leverage of 2.6x and expect to repay at least $3 billion of debt this year as we continue to strengthen our investment grade balance sheet. During the quarter, we achieved our highest credit rating in decades following an upgrade from Moody's, reflecting our continued focus on debt reduction as we progress towards our long-term gross leverage target of 1x." • Adjusted net debt of $16.9 billion at March quarter end, a reduction of $1.1 billion from the end of 2024 • Payments on debt and finance lease obligations for the March quarter of $531 million • Weighted average interest rate of 4.2 percent with 95 percent fixed rate debt and 5 percent variable rate debt • Adjusted operating cash flow in the March quarter of $2.4 billion, and with gross capital expenditures of $1.2 billion, free cash flow was $1.3 billion • Air Traffic Liability ended the quarter at $10.0 billion • Liquidity* of $6.8 billion at quarter-end, including $3.1 billion in undrawn revolver capacity *Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities 3
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March Quarter 2025 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 • Recognized as the Top U.S. Airline for operational performance in 2024 by the Wall Street Journal for the fourth consecutive year • Earned the Cirium Platinum Award for operational excellence in 2024 for the fourth consecutive year and named the most on- time airline in North America • Took delivery of nine aircraft in the quarter, including A321neo, A220-300, A330-900 and A350-900 aircraft • Announced Delta’s first ever service from ATL to Marrakech, Morocco, beginning in October, and seasonal service to Accra, Ghana, starting in December • Launching the first international Delta flight from Austin with new nonstop service to Cancun, Mexico, starting in December 2025 • Resumed daily, non-stop service from JFK to Tel Aviv on April 1 • Introducing nonstop service from Los Angeles to Melbourne, Australia, starting December 2025 Culture and People • Celebrated Delta people with $1.4 billion in profit sharing on Valentine's Day, recognizing the outstanding performance of Delta’s 100,000 employees in 2024 • Recognizing our people first culture, Delta ranked No. 15 on the Fortune 100 Best Companies to Work For list, selected by the workplace culture experts at Great Place to Work • Returned to CES in 2025 to give the keynote address highlighting Delta’s innovative vision for the next century of flight including Delta Concierge and the evolution of Delta Sync, along with new partnerships with Uber and YouTube • Named No. 11 on the Fortune World’s Most Admired Companies list and the top airline, the twelfth year Delta has been recognized • Ranked No. 9 on the Forbes list of America’s Best Large Employers 2025 • Recognized by JUST Capital and CNBC as the No. 1 airline and one of the top transportation companies on the annual list of JUST 100, a ranking of companies based on the issues Americans care about most • Unveiled the newest livery celebrating Delta’s centennial year during the airline’s Centennial Gala in front of the newly renovated Delta Flight Museum • Contributed $1 million to the American Red Cross for Los Angeles wildfire relief efforts and an additional $325,000 to Los Angeles Fire Department Foundation, Los Angeles Regional Food Bank, YMCA of Metro Los Angeles and Kings Cares Foundation to help with local response Customer Experience and Loyalty • Completed construction of the new Sky Club in ATL Concourse D, spanning 25,000 square feet with seating for more than 500 • Continued rolling out fast, free WiFi for SkyMiles members with over 90 percent of the mainline fleet now equipped • Began flying aircraft with the new, previously announced cabin design on A350 and Boeing 757 aircraft, elevating the travel experience with new seating materials, enhanced lighting and a refreshed color palette • Expanded first-of-its-kind Shake Shack partnership to customers sitting in First Class departing from ATL, LAX, LGA and SEA on flights over 900 miles • Announced partnership with luxury Champagne brand Taittinger, available to Delta One customers on international flights, further enhancing the best-in-class Delta One experience • Revamped the Special Meals menu for customers in First Class and Delta One departing from the U.S. with chef-curated meals made fresh in-house for those with dietary restrictions and preferences • Named the Official Global Airline of the PGA TOUR and PGA TOUR Champions, beginning a multi-year partnership with the organization Environmental Sustainability • Announced deepened partnership with Airbus, shaping the future of global travel through Airbus’ UpNext Innovation lab and Delta’s Sustainable Skies Lab and announced collaboration on the next phase of testing a new, more fuel-efficient flying technique, fello’fly • Partnering with JetZero to develop an aircraft incorporating a Blended-Wing-Body (BWB) design that is expected to be 50 percent more fuel efficient than aircraft in operation today • Recognized by Fast Company as one of its Most Innovative Companies for 2025 due to sustainability initiatives, including Delta’s industry leading work to scale sustainable aviation fuel (SAF) 1FlightStats preliminary data for Delta flights system wide, Delta's competitive set (AA, UA, B6, AS, WN, and DL) and Delta's network peers (AA, UA, and DL) from Jan 1- Mar 31, 2025. On-time is defined as A0 4
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March Quarter 2025 Results March quarter results have been adjusted primarily for third-party refinery sales and gains/losses on investments as described in the reconciliations in Note A. $ % GAAP Change Change ($ in millions except per share and unit costs) 1Q25 1Q24 Operating income 569 614 (45) (7) %Operating margin 4.0 % 4.5 % (0.5) pts (11) %Pre-tax income 320 122 198 NMPre-tax margin 2.3 % 0.9 % 1.4 pts NMNet income 240 37 203 NMDiluted earnings per share 0.37 0.06 0.31 NMOperating revenue 14,040 13,748 292 2 %Total revenue per available seat mile (TRASM) (cents) 20.53 20.98 (0.45) (2) %Operating expense 13,471 13,134 337 3 %Cost per available seat mile (CASM) (cents) 19.69 20.04 (0.35) (2) %Fuel expense 2,410 2,598 (188) (7) %Average fuel price per gallon 2.47 2.79 (0.32) (11) %Operating cash flow 2,378 2,408 (30) (1) %Capital expenditures 1,224 1,193 31 3 %Total debt and finance lease obligations 15,823 19,364 (3,541) (18) % $ % Adjusted Change Change ($ in millions except per share and unit costs) 1Q25 1Q24 Operating income 591 640 (49) (8) %Operating margin 4.6 % 5.1 % (0.5) pts (11) %Pre-tax income 382 380 2 1 %Pre-tax margin 2.9 % 3.0 % (0.1) pts (3) %Net income 298 288 10 3 %Diluted earnings per share 0.46 0.45 0.01 2 %Operating revenue 12,978 12,563 415 3.3 %TRASM (cents) 18.97 19.17 (0.20) (1.0) %Operating expense 12,388 11,923 465 4 %Non-fuel cost 9,875 9,227 648 7 %Non-fuel unit cost (CASM-Ex) (cents) 14.44 14.08 0.36 2.6 %Fuel expense 2,388 2,571 (183) (7) %Average fuel price per gallon 2.45 2.76 (0.31) (11) %Operating cash flow 2,444 2,478 (34) (1) %Free cash flow 1,280 1,378 (98) (7) %Gross capital expenditures 1,174 1,110 64 6 %Adjusted net debt 16,876 20,087 (3,211) (16) % 5
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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 up to 5,000 peak day Delta and Delta Connection flights to more than 290 destinations on six continents, connecting people to places and to each other. Delta served more than 200 million customers in 2024 — 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 recognized as the top U.S. airline by the Wall Street Journal and as North America’s most on-time airline in 2024 and our people earned the Platinum Award for Operational Excellence from 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 throughout the world 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. In addition to the awards from J.D. Power and Cirium, Delta has been recognized 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; one of Glassdoor’s Best Places to Work; the top carrier for business travelers by Business Travel News; and topped 5 categories, including the Best U.S. Airline award, in Forbes Travel Guide’s Verified Air Travel Awards. 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 SecuritiesExchange 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 beconstrued 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 anduncertainties 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 securityof 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 securityregulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; ourdependence 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 withairlines 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 thirdparties on which we rely; failure to comply with the financial and other covenants in our financing agreements; labor-related disruptions; the effects on our business ofseasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmentalevents, 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 andfuture 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 toretain senior management and other key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented tocombat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions inservice at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive regulatory and legalcompliance requirements we are subject to; the impact of environmental regulation, including but not limited to regulation of hazardous substances, increased regulation toreduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic orpolitical 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 Securitiesand Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other filings filed with the SEC fromtime to time. 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, andwhich we undertake no obligation to update except to the extent required by law. 6
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DELTA AIR LINES, INC. Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, (in millions, except per share data) 2025 2024 $ Change % Change Operating Revenue: Passenger $ 11,480 $ 11,131 $ 349 3 %Cargo 208 178 30 17 % Other 2,352 2,439 (87) (4)% Total operating revenue 14,040 13,748 292 2 % Operating Expense: Salaries and related costs 4,083 3,791 292 8 %Aircraft fuel and related taxes 2,410 2,598 (188) (7)%Ancillary businesses and refinery 1,250 1,370 (120) (9)%Contracted services 1,121 1,024 97 9 %Landing fees and other rents 851 748 103 14 %Aircraft maintenance materials and outside repairs 646 679 (33) (5)%Regional carrier expense 613 550 63 11 %Depreciation and amortization 607 615 (8) (1)%Passenger commissions and other selling expenses 552 550 2 – %Passenger service 430 413 17 4 %Aircraft rent 137 136 1 1 %Profit sharing 124 125 (1) (1)% Other 647 535 112 21 % Total operating expense 13,471 13,134 337 3 % Operating Income 569 614 (45) (7)% Non-Operating Expense: Interest expense, net (179) (205) 26 (13)%Gain/(loss) on investments, net (40) (227) 187 (82)%Loss on extinguishment of debt – (4) 4 NM Miscellaneous, net (30) (56) 26 (46)% Total non-operating expense, net (249) (492) 243 (49)% Income Before Income Taxes 320 122 198 NM Income Tax Provision (80) (85) 5 (6)% Net Income $ 240 $ 37 $ 203 NM Basic Earnings Per Share $ 0.37 $ 0.06 Diluted Earnings Per Share $ 0.37 $ 0.06 Basic Weighted Average Shares Outstanding 644 640 Diluted Weighted Average Shares Outstanding 652 645 7
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DELTA AIR LINES, INC. Passenger Revenue (Unaudited) Three Months Ended March 31, (in millions) 2025 2024 $ Change % Change Ticket - Main cabin $ 5,361 $ 5,425 $ (64) (1)%Ticket - Premium products 4,707 4,408 299 7 %Loyalty travel awards 940 844 96 11 % Travel-related services 472 454 18 4 % Passenger revenue $ 11,480 $ 11,131 $ 349 3 % DELTA AIR LINES, INC. Other Revenue (Unaudited) Three Months Ended March 31, (in millions) 2025 2024 $ Change % Change Refinery $ 1,062 $ 1,185 $ (123) (10)%Loyalty program 807 795 12 2 %Ancillary businesses 189 180 9 5 %Miscellaneous 294 279 15 5 % Other revenue $ 2,352 $ 2,439 $ (87) (4)% DELTA AIR LINES, INC. Total Revenue (Unaudited) Increase (Decrease) 1Q25 vs 1Q24 Revenue 1Q25($M) Change UnitRevenue Yield Capacity Domestic $ 8,101 1% (3)% 1% 4%Atlantic 1,372 5% 8% 5% (3)%Latin America 1,334 5% (2)% —% 8%Pacific 673 16% 1% (7)% 16% Passenger Revenue $ 11,480 3% (1)% —% 4%Cargo Revenue 208 17% Other Revenue 2,352 (4)% Total Revenue $ 14,040 2% (2)% Third Party Refinery Sales (1,062) Total Revenue, adjusted $ 12,978 3.3% (1.0)% 8
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DELTA AIR LINES, INC. Statistical Summary (Unaudited) Three Months Ended March 31, 2025 2024 Change Revenue passenger miles (millions) 55,678 54,207 3 %Available seat miles (millions) 68,401 65,542 4 %Passenger mile yield (cents) 20.62 20.53 – %Passenger revenue per available seat mile (cents) 16.78 16.98 (1) %Total revenue per available seat mile (cents) 20.53 20.98 (2) %TRASM, adjusted - see Note A (cents) 18.97 19.17 (1.0) %Cost per available seat mile (cents) 19.69 20.04 (2) %CASM-Ex - see Note A (cents) 14.44 14.08 2.6 %Passenger load factor 81.4 % 82.7 % (1.3) ptsFuel gallons consumed (millions) 976 931 5 %Average price per fuel gallon $ 2.47 $ 2.79 (11) %Average price per fuel gallon, adjusted - see Note A $ 2.45 $ 2.76 (11) % 9
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DELTA AIR LINES, INC. Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (in millions) 2025 2024 Cash Flows From Operating Activities: Net income $ 240 $ 37 Depreciation and amortization 607 615 Changes in air traffic liability 2,928 3,149 Changes in profit sharing (1,265) (1,259)Changes in balance sheet and other, net (132) (134)Net cash provided by operating activities 2,378 2,408 Cash Flows From Investing Activities: Property and equipment additions: Flight equipment, including advance payments (987) (883)Ground property and equipment, including technology (237) (310)Redemption of short-term investments – 546 Other, net – 10 Net cash used in investing activities (1,224) (637) Cash Flows From Financing Activities: Payments on debt and finance lease obligations (531) (712)Cash dividends (99) (64)Other, net (4) (11)Net cash used in financing activities (634) (787) Net Increase in Cash, Cash Equivalents and Restricted Cash Equivalents 520 984 Cash, cash equivalents and restricted cash equivalents at beginning of period 3,421 3,395 Cash, cash equivalents and restricted cash equivalents at end of period $ 3,941 $ 4,379 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 suchamounts shown above: Current assets: Cash and cash equivalents $ 3,711 $ 3,877 Restricted cash included in prepaid expenses and other 89 126 Other assets: Restricted cash included in other noncurrent assets 141 376 Total cash, cash equivalents and restricted cash equivalents $ 3,941 $ 4,379 10
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DELTA AIR LINES, INC. Consolidated Balance Sheets (Unaudited) March 31, December 31, (in millions) 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 3,711 $ 3,069 Accounts receivable, net 3,652 3,224 Fuel, expendable parts and supplies inventories, net 1,486 1,428 Prepaid expenses and other 2,387 2,123 Total current assets 11,236 9,844 Property and Equipment, Net: Property and equipment, net 38,171 37,595 Other Assets: Operating lease right-of-use assets 6,542 6,644 Goodwill 9,753 9,753 Identifiable intangibles, net 5,972 5,975 Equity investments 2,819 2,846 Other noncurrent assets 2,849 2,715 Total other assets 27,935 27,933 Total assets $ 77,342 $ 75,372 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of debt and finance leases $ 2,938 $ 2,175 Current maturities of operating leases 752 763 Air traffic liability 10,023 7,094 Accounts payable 4,809 4,650 Accrued salaries and related benefits 3,333 4,762 Loyalty program deferred revenue 4,425 4,314 Fuel card obligation 1,100 1,100 Other accrued liabilities 2,319 1,812 Total current liabilities 29,699 26,670 Noncurrent Liabilities: Debt and finance leases 12,886 14,019 Noncurrent operating leases 5,704 5,814 Pension, postretirement and related benefits 3,117 3,144 Loyalty program deferred revenue 4,553 4,512 Deferred income taxes, net 2,229 2,176 Other noncurrent liabilities 3,707 3,744 Total noncurrent liabilities 32,196 33,409 Commitments and Contingencies Stockholders' Equity: 15,447 15,293 Total liabilities and stockholders' equity $ 77,342 $ 75,372 11
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Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliationsmay not calculate exactly 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 withaccounting principles generally accepted in the U.S. (“GAAP”). Under the Securities and Exchange Commission rules, non-GAAP financial measures may be considered inaddition 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 ofnon-GAAP financial measures used in this release to the most directly comparable GAAP financial measures. Forward Looking Projections. Delta is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such asthose used in the reconciliations below will not be known until the end of the period and could be significant. Adjustments. These reconciliations include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, andfor the reasons indicated below: Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a moremeaningful comparison of our airline operations to the rest of the airline industry. MTM adjustments on investments. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period.Unrealized gains/losses result from our equity investments that are accounted for at fair value in non-operating expense. The gains/losses are driven by changes instock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares.Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown. MTM adjustments and settlements on hedges. MTM fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in thecontract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cashreceived or paid on hedge contracts settled during the applicable period. Loss on extinguishment of debt. This adjustment relates to early termination of a portion of our debt. Adjusting for these losses allows investors to better understandand analyze our core operational performance in the periods shown. Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted Three Months Ended 1Q25 vs 1Q24 (in millions) March 31, 2025 June 30, 2024 March 31, 2024 % Change Operating revenue $ 14,040 $ 16,658 $ 13,748 Adjusted for: Third-party refinery sales (1,062) (1,251) (1,185) Operating revenue, adjusted $ 12,978 $ 15,407 $ 12,563 3.3% Three Months Ended 1Q25 vs 1Q24 March 31, 2025 March 31, 2024 % Change TRASM (cents) 20.53 20.98 Adjusted for: Third-party refinery sales (1.55) (1.81) TRASM, adjusted 18.97 19.17 (1.0)% Operating Income, adjusted Three Months Ended (in millions) March 31, 2025 March 31, 2024 Operating income $ 569 $ 614 Adjusted for: MTM adjustments and settlements on hedges 22 27 Operating income, adjusted $ 591 $ 640 12
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Operating Margin, adjusted Three Months Ended March 31, 2025 March 31, 2024 Operating margin 4.0% 4.5%Adjusted for: Third-party refinery sales 0.3 0.4 MTM adjustments and settlements on hedges 0.2 0.2 Operating margin, adjusted 4.6% 5.1% Pre-Tax Income, Net Income, and Diluted Earnings per Share, adjusted Three Months Ended Three Months Ended March 31, 2025 March 31, 2025 Pre-Tax Income Net Earnings (in millions, except per share data) Income Tax Income Per Diluted Share GAAP $ 320 $ (80) $ 240 $ 0.37 Adjusted for: MTM adjustments on investments 40 MTM adjustments and settlements on hedges 22 Non-GAAP $ 382 $ (84) $ 298 $ 0.46 Three Months Ended Three Months Ended March 31, 2024 March 31, 2024 Pre-Tax Income Net Earnings (in millions, except per share data) Income Tax Income Per Diluted Share GAAP $ 122 $ (85) $ 37 $ 0.06 Adjusted for: MTM adjustments on investments 227 MTM adjustments and settlements on hedges 27 Loss on extinguishment of debt 4 Non-GAAP $ 380 $ (92) $ 288 $ 0.45 Pre-Tax Margin, adjusted Three Months Ended March 31, 2025 March 31, 2024 Pre-tax margin 2.3% 0.9%Adjusted for: Third-party refinery sales 0.2 0.3 MTM adjustments on investments 0.3 1.6 MTM adjustments and settlements on hedges 0.2 0.2 Pre-tax margin, adjusted 2.9% 3.0% 13
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Operating Cash Flow, adjusted. We present operating cash flow, adjusted because management believes adjusting for the following items provide a more meaningfulmeasure for investors: Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAPoperating activities. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a betterunderstanding of the company's operating cash flow that is core to our operations in the periods shown. Three Months Ended (in millions) March 31, 2025 March 31, 2024 Net cash provided by operating activities $ 2,378 $ 2,408 Adjusted for: Net cash flows related to certain airport construction projects and other 66 70 Operating cash flow, adjusted $ 2,444 $ 2,478 Operating revenue, adjusted related to premium products and diverse revenue streams Three Months Ended (in millions) March 31, 2025 March 31, 2024 Operating revenue $ 14,040 $ 13,748 Adjusted for: Third-party refinery sales (1,062) (1,185) Operating revenue, adjusted $ 12,978 $ 12,563 Less: main cabin revenue (5,361) (5,425) Operating revenue, adjusted related to premium products and diverse revenue streams $ 7,617 $ 7,138 Percent of operating revenue, adjusted related to premium products and diverse revenue streams 59% 57% Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex") We adjust operating expense and CASM for certain items described above, as well as the following items and 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 andrelated taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance. Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides amore meaningful comparison of our core operating costs to the airline industry. Three Months Ended (in millions) March 31, 2025 March 31, 2024 Operating expense $ 13,471 $ 13,134 Adjusted for: Aircraft fuel and related taxes (2,410) (2,598)Third-party refinery sales (1,062) (1,185)Profit sharing (124) (125) Non-Fuel Cost $ 9,875 $ 9,227 Three Months Ended 1Q25 vs 4Q24 vs March 31,2025 December 31,2024 June 30,2024 March 31,2024 December 31,2023 1Q24 %Change 1Q24 %Change CASM (cents) 19.69 19.22 19.28 20.04 18.84 Adjusted for: Aircraft fuel and related taxes (3.52) (3.34) (3.77) (3.96) (4.30) Third-party refinery sales (1.55) (1.56) (1.68) (1.81) (0.82) Profit sharing (0.18) (0.59) (0.70) (0.19) (0.44) CASM-Ex 14.44 13.72 13.14 14.08 13.29 2.6% 3.3% 14
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Operating Expense, adjusted Three Months Ended (in millions) March 31, 2025 March 31, 2024 Operating expense $ 13,471 $ 13,134 Adjusted for: Third-party refinery sales (1,062) (1,185)MTM adjustments and settlements on hedges (22) (27) Operating expense, adjusted $ 12,388 $ 11,923 Total fuel expense, adjusted and Average fuel price per gallon, adjusted Average Price Per Gallon Three Months Ended Three Months Ended March 31, March 31, March 31, March 31, (in millions, except per gallon data) 2025 2024 % Change 2025 2024 % Change Total fuel expense $ 2,410 $ 2,598 $ 2.47 $ 2.79 Adjusted for: MTM adjustments and settlements onhedges (22) (27) (0.02) (0.03) Total fuel expense, adjusted $ 2,388 $ 2,571 (7)% $ 2.45 $ 2.76 (11)% Adjusted Debt to Earnings Before Interest, Taxes, Depreciation, Amortization and Rent ("EBITDAR"). We present adjusted debt to EBITDAR ("gross leverage")because management believes this metric is helpful to investors in assessing the company's overall debt profile. Adjusted debt includes total operating lease liabilities(including fleet, ground and other) and sale-leaseback financing liabilities. We calculate EBITDAR by adding depreciation and amortization to operating income, adjustedand adjusting for the fixed portion of operating lease expense. (in millions) March 31, 2025 Debt and finance lease obligations $ 15,823 Plus: operating lease liabilities 6,456 Plus: sale-leaseback financing liabilities 1,821 Plus: unamortized discount/(premium) and debt issue cost, net and other 16 Adjusted debt $ 24,116 Twelve Months Ended (in millions) March 31, 2025 GAAP operating income $ 5,950 Adjusted for: MTM adjustments and settlements on hedges 17 Operating income, adjusted 5,967 Adjusted for: Depreciation and amortization 2,505 Fixed portion of operating lease expense 976 EBITDAR $ 9,447 Adjusted Debt to EBITDAR 2.6x 15
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Adjusted Net Debt. We use adjusted gross debt, including fleet operating lease liabilities (comprised of aircraft and engine leases and regional aircraft leases embeddedwithin our capacity purchase agreements) and unfunded pension liabilities (if applicable), in addition to adjusted debt and finance leases, to present estimated financialobligations. We reduce adjusted total debt by cash, cash equivalents, and LGA restricted cash, resulting in adjusted net debt, to present the amount of assets needed to satisfythe debt. Management believes this metric is helpful to investors in assessing the company's overall debt profile. 1Q25 vs 4Q24 (in millions) March 31, 2025 December 31, 2024 March 31, 2024 $ Change Debt and finance lease obligations $ 15,823 $ 16,194 $ 19,364 Plus: sale-leaseback financing liabilities 1,821 1,835 1,875 Plus: unamortized discount/(premium) and debt issue cost, netand other 16 26 69 Adjusted debt and finance lease obligations $ 17,660 $ 18,055 $ 21,308 Plus: fleet operating lease liabilities 3,067 3,178 3,539 Plus: unfunded pension liabilities – – 81 Adjusted gross debt $ 20,728 $ 21,234 $ 24,928 Less: cash and cash equivalents (3,711) (3,069) (4,465) Less: LGA restricted cash (141) (184) (376) Adjusted net debt $ 16,876 $ 17,980 $ 20,087 $ (1,104) Gross Capital Expenditures. We adjust capital expenditures for the following items to determine gross capital expenditures for the reasons described below: Net cash flows related to certain airport construction projects. Cash flows related to certain airport construction projects are included in capital expenditures. Weadjust for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects areeither funded with restricted cash specific to these projects or reimbursed by a third party. Three Months Ended (in millions) March 31, 2025 March 31, 2024 Flight equipment, including advance payments $ 987 $ 883 Ground property and equipment, including technology 237 310 Adjusted for: Net cash flows related to certain airport construction projects (50) (83) Gross capital expenditures $ 1,174 $ 1,110 16
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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 isavailable for use for debt service or general corporate initiatives. Free cash flow is also used internally as a component of our incentive compensation programs. Free cashflow is defined as net cash from operating activities and net cash from investing activities, adjusted for (i) pension plan contributions, (ii) net cash flows related to certainairport construction projects and (iii) net redemptions of short-term investments. These adjustments are made for the following reasons: Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allowinvestors to understand the cash flows related to our core operations. Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAPoperating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provideinvestors a better understanding of the company's free cash flow and capital expenditures that are core to our operations in the periods shown. Net redemptions of short-term investments. Net redemptions of short-term investments represent the net purchase and sale activity of investments and marketablesecurities 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 byour operations. Three Months Ended (in millions) March 31, 2025 March 31, 2024 Net cash provided by operating activities $ 2,378 $ 2,408 Net cash used in investing activities (1,224) (637)Adjusted for: Pension plan contributions 10 – Net cash flows related to certain airport construction projects and other 116 154 Net redemptions of short-term investments – (546) Free cash flow $ 1,280 $ 1,378 17