Delta Air Lines · Earnings release

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Delta Air Lines Announces December Quarter and

Full Year 2024 Financial Results

Delivered record December quarter revenue

and operating profit with industry-leading operational performance

Reported record full year 2024 revenue, $5

billion of pre-tax income, $8 billion of operating cash flow and $3.4 billion of free cash flow

G1G2Guiding to 2025 earnings of greater than

$7.35 per share and free cash flow of greater than $4 billion

G3G4Expect March quarter revenue growth of 7

to 9 percent with earnings of $0.70 to $1.00 per share

ATLANTA, January 10, 2025 – Delta Air Lines (NYSE: DAL)

today reported financial results for the December quarter and full year 2024 and provided its outlook for the March quarter and full year

2025. Highlights of the December quarter and full year 2024, including both GAAP and adjusted metrics, are on page six and incorporated

here.

“2024 was a great year for Delta with our results reflecting

differentiation from the industry and increased durability. Our people finished the year strong, delivering industry-leading operational

and financial performance. Sharing Delta’s success is core to our culture, and I’m excited to recognize our people's outstanding

efforts with $1.4 billion in profit sharing payments next month,” said Ed Bastian, Delta’s chief executive officer.

“As we move into 2025, we expect strong demand for travel to

continue, with consumers increasingly seeking the premium products and experiences that Delta provides. Our differentiated strategy and

best-in-class operations, combined with demand strength and an increasingly constructive industry backdrop, G5position us to deliver the

best financial year in Delta's 100-year history, with pre-tax income greater than $6 billion, earnings per share greater than $7.35 and

free cash flow of more than $4 billion.”

December Quarter 2024 GAAP Financial Results

•

Operating revenue of $15.6 billion

•

Operating income of $1.7 billion with an operating margin of 11.0 percent

•

Pre-tax income of $1.2 billion with a pre-tax margin of 7.7 percent

•

Earnings per share of $1.29

•

Operating cash flow of $1.9 billion

•

Payments on debt and finance lease obligations of $1.5 billion

•

Total debt and finance lease obligations of $16.2 billion at quarter end

December Quarter 2024 Non-GAAP Financial Results

•

Operating revenue of $14.4 billion

•

Operating income of $1.7 billion with an operating margin of 12.0 percent

•

Pre-tax income of $1.6 billion with a pre-tax margin of 10.8 percent

•

Earnings per share of $1.85

•

Operating cash flow of $1.8 billion

1

Full Year 2024 GAAP Financial Results

•

Operating revenue of $61.6 billion

•

Operating income of $6.0 billion with an operating margin of 9.7 percent

•

Pre-tax income of $4.7 billion with a pre-tax margin of 7.6 percent

•

Earnings per share of $5.33

•

Operating cash flow of $8.0 billion

•

Payments on debt and finance lease obligations of $4.0 billion

Full Year 2024 Adjusted Financial Results

•

Operating revenue of $57.0 billion, 4.3 percent higher than the full year 2023

•

Operating income of $6.0 billion with an operating margin of 10.6 percent

•

Pre-tax income of $5.2 billion with a pre-tax margin of 9.1 percent

•

Earnings per share of $6.16

•

Operating cash flow of $8.0 billion

•

Free cash flow of $3.4 billion

•

Adjusted debt to EBITDAR of 2.6x, down from 3.0x at the end of 2023

•

Return on invested capital of 12.9 percent

Financial Guidance1

2025 guidance for earnings greater than $7.35 per share is more than

10 percent growth year-over-year compared to a normalized 2024 earnings per share baseline, excluding the 45-cent impact of the CrowdStrike-caused

outage in the September quarter. On a non-GAAP basis, 2025 earnings per share guidance represents greater than 19 percent growth year-over-year.

Earnings Per Share YoY

Greater than 10%

Free Cash Flow ($B)

Greater than $4

Gross Leverage3

2x or less

1x

Total Revenue YoY

G6Operating Margin

Earnings Per Share

1Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures

2Year-over-year EPS growth excludes the 45-cent impact of the CrowdStrike-caused outage in 2024

3Adjusted debt to EBITDAR

4Introduced at November 2024 Investor Day

2

Revenue Environment

and Outlook

"Delta built momentum as we closed out 2024, with December quarter

total revenue growth of 5.7 percent coming in ahead of guidance as our team delivered industry-leading operational performance and demand

trends accelerated through the quarter,” said Glen Hauenstein, Delta's president. "With strength continuing into the new year,

we expect March quarter adjusted revenue to be 7 to 9 percent higher than 2024 on growth in capacity and unit revenue."

•

Demand accelerated through the quarter: Delta delivered December quarter revenue growth of 5.7 percent over the prior year,

ahead of guidance of 2 to 4 percent growth on strong operational performance and an acceleration in demand through the quarter. During

the months of November and December, Delta saw four of the top ten revenue days in the company's history and double-digit growth in cash

bookings driven by both leisure and corporate travelers. Adjusted total unit revenue (TRASM) improved several points sequentially to up

0.4 percent year-over-year, including a 1 point expected impact from the election in November.

•

Diversified revenue streams differentiate Delta's performance: Delta's diversified revenue base, led by premium and loyalty, contributed 57 percent of total revenue in 2024. In the December quarter, premium revenue growth outperformed main cabin by 6 points. American Express remuneration of nearly $2 billion grew 14 percent year-over-year, supported by an acceleration in card spend and acquisitions. Cargo revenue was up 32 percent in the December quarter year-over-year, sequentially improving throughout the year, with full year revenue growth of 14 percent over prior year.

•

Continued strength in international, led by Transatlantic: All three international geographies improved sequentially and relative

to initial expectations, with international passenger revenue growth of 6 percent year-over-year in the December quarter. The largest

international entity, Transatlantic, delivered 6 percent growth year-over-year in unit revenue in the quarter, marking the strongest improvement

of any entity this year.

•

Corporate sales up double-digits with positive outlook: Managed corporate sales* were up 10 percent year-over-year during the

quarter, with growth led by the technology and financial services sectors. Recent corporate survey results indicate that 90 percent of

companies surveyed expect their travel volumes to increase sequentially or stay the same in the March quarter and further into 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

“Delta delivered the most profitable December quarter in our history

with pre-tax income of $1.6 billion, up $500 million over prior year. Through the year, our teams delivered industry-leading operational

performance and maintained a focus on driving efficiency that supported low-single digit non-fuel unit cost growth, consistent with our

outlook at the start of the year and among the best in the industry,” said Dan Janki, Delta’s chief financial officer. “As

efficiency gains continue, we expect non-fuel unit cost growth to continue in the low-single digits for the full year 2025 as efficiencies

offset the impact of slower capacity growth and continued investments in our people and the customer experience.”

December Quarter 2024 Cost Performance

•

Operating expense of $13.8 billion and adjusted operating expense of $12.7 billion

•

Adjusted non-fuel costs of $9.9 billion

•

Non-fuel CASM was 13.72¢, an increase of 3.3 percent year-over-year

•

Adjusted fuel expense of $2.4 billion was down 18 percent year-over-year

•

Adjusted fuel price of $2.34 per gallon decreased 22 percent year-over-year with a refinery loss of 4¢ per gallon

•

Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.2, a 0.9 percent improvement year-over-year

3

Full Year 2024 Cost Performance

•

Operating expense of $55.6 billion and adjusted operating expense of $51.0 billion

•

Adjusted non-fuel costs of $39.1 billion

•

Non-fuel CASM was 2.8 percent higher year-over-year

•

Adjusted fuel expense of $10.5 billion was down 5 percent year-over-year

•

Adjusted fuel price of $2.56 per gallon declined 10 percent year-over-year and includes a refinery benefit of 1¢ 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

“In 2024, Delta delivered $3.4 billion of free cash flow while

reinvesting nearly $5 billion into the business. With continued prioritization of the balance sheet, leverage improved to 2.6x and Delta

returned to investment grade at all three credit rating agencies, accomplishing a key milestone and reflecting our financial durability,”

Janki said. “In 2025, we expect to grow free cash flow to over $4 billion, supporting meaningful debt repayment and further leverage

improvement to 2x or less as we progress towards our long-term gross leverage target of 1x."

•

Adjusted net debt of $18.0 billion at December quarter end, a reduction of $3.6 billion

•

Payments on debt and finance lease obligations for the December quarter of $1.5 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 December quarter of $1.8 billion, and with gross capital expenditures of $1.2 billion, free

cash flow was $678 million

•

Full year adjusted operating cash flow of $8.0 billion and

gross capital expenditures of $4.8 billion, resulting in $3.4 billion free

cash flow

•

Air Traffic Liability ended the quarter at $7.1 billion

•

Liquidity* of $6.1 billion at year-end, including $3.1 billion in undrawn revolver capacity

*Includes cash and

cash equivalents, short-term investments and undrawn revolving credit facilities

4

December Quarter and Full Year 2024 Highlights

Operations, Network and Fleet

•

Earned the Cirium Platinum Award for operational excellence for the fourth consecutive year and named the most on-time airline in

North America, recognizing Delta's commitment to strong operational performance

•

Operated the most reliable airline among our competitors in the December quarter, leading on all key metrics, including completion

factor, and on-time departures and arrivals1

•

Took delivery of 11 aircraft in the December quarter, bringing full year aircraft deliveries to 38, including the A321neo, A220-300,

•

Began flying a new long-haul route to Brisbane this winter and expanded connectivity with nonstop flights from Tampa to Amsterdam, Orlando to London and New York to Lagos

•

Completed DCA connectivity from Delta hubs with the launch of SEA-DCA starting in March 2025

•

Announced first-ever nonstop service between Minneapolis-St. Paul and Copenhagen, expanding Delta’s European network and increasing

options to European destinations for Minneapolis customers

•

Added 13 new Latin America routes from 6 hubs, increasing Delta's reach to winter leisure destinations

Culture and People

•

Delta people earned $1.4 billion in profit sharing to be paid out in February, and $86 million in Shared Rewards for the year, recognizing

the outstanding performance of Delta’s 100,000 employees

•

Highest scoring airline in the 2024-2025 All-American Executive Team rankings by Extel (formerly Institutional Investor) for the seventh

consecutive year and earned the Most Honored Company designation

•

Opened a new pilot training facility in Salt Lake City, a nearly 50,000-square-foot facility, constructed to host more than 1,000

training events every month

•

Hosted “Breast Cancer One” charter for the 18th year, bringing together 150 employees who have battled breast

cancer and highlighting Delta’s 19-year partnership with the Breast Cancer Research Foundation

•

Contributed $1 million to the American Red Cross for Hurricane Helene and Hurricane Milton relief

•

Partnered with Marine Toys for Tots for the 20th annual TechOps Bike Drive in December and presented them with a record

•

Delta volunteers helped build four new homes with Atlanta Habitat for Humanity, bringing the total number of homes built or rehabbed

•

Hosted Delta’s 13th annual Veterans Day Celebration, a two-day event led by the Delta TechOps team and Veterans Business

Resource Group to honor the 11,000 veteran employees at Delta

Customer Experience and Loyalty

•

Named No. 1 for business travelers for the 14th consecutive year by Business Travel News, highlighting Delta’s outstanding

customer service and experience

•

Led U.S. airlines in the Forbes Travel Guide’s inaugural Verified Air Travel Awards, winning Best U.S. Airline, Best Domestic

Business Class, Best U.S. Airline Lounge: JFK Delta One Lounge, Best Loyalty Program and Best Airline App

•

Named Airline of the Year by Global Traveler; recognized by the 21st Annual Global Traveler Tested Reader Survey Awards for Best Airline

website, Best Airline Lounges, Best Airline for Domestic First Class and Best Airline App

•

Opened third Delta One Lounge in Boston, offering elevated services to customers including a one-of-a-kind culinary experience and

access to the award-winning BOS Terminal E Delta Sky Club

•

Opened first-ever Delta Sky Club at Charlotte Douglass International Airport (CLT), spanning over 14,000 square feet, an important

milestone in strengthening Delta's presence in Charlotte

•

Unveiled new cabin design to be implemented across the entire fleet, a modern interior designed to elevate the travel experience with

new seating materials, enhanced lighting and a refreshed color palette

•

Launched first-of-its-kind partnership with Shake Shack, offering burgers on select flights out of Boston, with plans for expansion

•

Expanded Delta Digital ID to SLC and DCA with the TSA PreCheck® Touchless ID lane, giving customers access to the industry-leading

touchless airport technology

Environmental, Social and Governance

•

In partnership with the Minnesota SAF Hub, Delta announced a new blending facility set to open in 2025 in Minnesota and has successfully

transported sustainable aviation fuel (SAF) via pipeline to MSP and DTW

•

Began rolling out paper cups across the international network, with plans to expand across entire network in 2025, eliminating nearly

7 million pounds of single-use-plastic onboard annually once available system wide

•

Delta's Carbon Council nearly doubled fuel savings from 2023, saving 41 million gallons of jet fuel2 in 2024

•

Began the installation of rooftop solar panels at Delta's headquarters in Atlanta, introducing renewable energy sources

1FlightStats

preliminary data for Delta flights mainline system, Delta's competitive set (AA, UA, B6, AS, WN, and DL) from Oct 1 - Dec 31, 2024. On-time is defined as A0

2Relative

to what Delta would have used without undertaking any fuel efficiency efforts

5

December Quarter and Full Year 2024 Results

December quarter and full year results have been adjusted primarily

for the third-party refinery sales and gains/losses on investments as described in the reconciliations in Note A.

GAAP

Adjusted

GAAP

Adjusted

($ in millions except per share and unit costs)

Operating income

Operating margin

%

%

%

%

%

%

%

%

Pre-tax income

Pre-tax margin

%

%

%

%

%

%

%

%

Net income

Diluted earnings per share

Operating revenue

Total revenue per available seat mile (TRASM) (cents)

Operating expense

Cost per available seat mile (CASM) (cents)

Fuel expense

Average fuel price per gallon

Operating cash flow

Capital expenditures

Total debt and finance lease obligations

Adjusted net debt

6

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 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 again 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.

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; 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 Statements

Statements 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 (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and subsequent

quarterly reports and other filings filed with the SEC from time 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, and which we undertake no obligation

to update except to the extent required by law.

7

DELTA AIR LINES, INC.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Year Ended

(in millions, except per share data)

$ Change

% Change

$ Change

% Change

Operating Revenue:

Passenger

$

$

$

5

%

$

$

$

4

%

Cargo

%

%

Other

%

%

Total operating revenue

9

%

6

%

Operating Expense:

Salaries and related costs

9

%

%

Aircraft fuel and related taxes

)

)%

)

(5

)%

Ancillary businesses and refinery

%

%

Contracted services

6

%

5

%

Landing fees and other rents

%

%

Aircraft maintenance materials and outside repairs

9

%

8

%

Depreciation and amortization

4

%

7

%

Passenger commissions and other selling expenses

%

6

%

Regional carrier expense

%

6

%

Passenger service

7

2

%

2

%

Profit sharing

%

6

–

%

Aircraft rent

–

–

%

3

%

Pilot agreement and related expenses

–

–

–

–

%

–

)

NM

Other

3

%

%

Total operating expense

7

%

6

%

Operating Income

%

9

%

Non-Operating (Expense)/Income:

Interest expense, net

)

)

)%

)

)

)%

Gain/(loss) on investments, net

)

)

NM

)

)

NM

Loss on extinguishment of debt

(3

)

–

(3

)

NM

)

)

)%

Miscellaneous, net

)

)

)

%

)

)

)%

Total non-operating (expense)/income, net

)

)

NM

)

)

NM

Income Before Income Taxes

)

)%

)

)%

Income Tax Provision

)

)

)

%

)

)

)

%

Net Income

$

$

$

)

)%

$

$

$

)

)%

Basic Earnings Per Share

$

$

$

$

Diluted Earnings Per Share

$

$

$

$

Basic Weighted Average Shares Outstanding

Diluted Weighted Average Shares Outstanding

8

DELTA AIR LINES, INC.

Passenger Revenue

(Unaudited)

Three Months Ended

Year Ended

(in millions)

$ Change

% Change

$ Change

% Change

Ticket - Main cabin

$

$

$

2

%

$

$

$

–

%

Ticket - Premium products

8

%

8

%

Loyalty travel awards

%

%

Travel-related services

8

%

6

%

Passenger revenue

$

$

$

5

%

$

$

$

4

%

DELTA AIR LINES, INC.

Other Revenue

(Unaudited)

Three Months Ended

Year Ended

(in millions)

$ Change

% Change

$ Change

% Change

Refinery

$

$

$

%

$

$

$

%

Loyalty program

5

%

7

%

Ancillary businesses

%

)

(8

)%

Miscellaneous

(3

)

(1

)%

%

Other revenue

$

$

$

%

$

$

$

%

DELTA AIR LINES, INC.

Total Revenue

(Unaudited)

Increase (Decrease)

Revenue

Change

Unit Revenue

Yield

Capacity

Domestic

$

5%

(1)%

1%

6%

Atlantic

4%

6%

3%

(2)%

Latin America

4%

(1)%

(1)%

5%

Pacific

(4)

(4)%

Passenger Revenue

$

5%

—%

1%

5%

Cargo Revenue

Other Revenue

Total Revenue

$

9%

4%

Third Party Refinery Sales

)

Total Revenue, adjusted

$

9

DELTA AIR LINES, INC.

Statistical Summary

(Unaudited)

Three Months Ended

Year Ended

Change

Change

Revenue passenger miles (millions)

5

%

6

%

Available seat miles (millions)

5

%

6

%

Passenger mile yield (cents)

1

%

(2

)%

Passenger revenue per available seat mile (cents)

–

%

(2

)%

Total revenue per available seat mile (cents)

4

%

–

%

TRASM, adjusted - see Note A (cents)

%

)%

Cost per available seat mile (cents)

2

%

–

%

CASM-Ex - see Note A (cents)

%

%

Passenger load factor

%

%

–

pts

%

%

–

pts

Fuel gallons consumed (millions)

4

%

5

%

Average price per fuel gallon

$

$

)%

$

$

(9

)%

Average price per fuel gallon, adjusted - see Note A

$

$

)%

$

$

)%

DELTA AIR LINES, INC.

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

(in millions)

Cash Flows From Operating Activities:

Net Income

$

$

Depreciation and amortization

(Gain) loss on fair value investments

)

Changes in air traffic liability

)

)

Changes in profit sharing

Changes in balance sheet and other, net

Net cash provided by operating activities

Cash Flows From Investing Activities:

Property and equipment additions:

Flight equipment, including advance payments

)

)

Ground property and equipment, including technology

)

)

Redemption of short-term investments

8

Other, net

7

Net cash used in investing activities

)

)

Cash Flows From Financing Activities:

Proceeds from long-term obligations

–

Payments on debt and finance lease obligations

)

)

Cash dividends

)

)

Other, net

)

Net cash (used in)/provided by financing activities

)

Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash Equivalents

)

Cash, cash equivalents and restricted cash equivalents at beginning of period

Cash, cash equivalents and restricted cash equivalents at end of period

$

$

The following table provides a reconciliation

of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the same such amounts shown

above:

Current assets:

Cash and cash equivalents

$

$

Restricted cash included in prepaid expenses and other

Other assets:

Restricted cash included in other noncurrent assets

Total cash, cash equivalents and restricted cash equivalents

$

$

DELTA AIR LINES, INC.

Consolidated Balance Sheets

(Unaudited)

(in millions)

ASSETS

Current Assets:

Cash and cash equivalents

$

$

Short-term investments

–

Accounts receivable, net

Fuel, expendable parts and supplies inventories, net

Prepaid expenses and other

Total current assets

Property and Equipment, Net:

Property and equipment, net

Other Assets:

Operating lease right-of-use assets

Goodwill

Identifiable intangibles, net

Equity investments

Other noncurrent assets

Total other assets

Total assets

$

$

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Current maturities of debt and finance leases

$

$

Current maturities of operating leases

Air traffic liability

Accounts payable

Accrued salaries and related benefits

Loyalty program deferred revenue

Fuel card obligation

Other accrued liabilities

Total current liabilities

Noncurrent Liabilities:

Debt and finance leases

Pension, postretirement and related benefits

Loyalty program deferred revenue

Noncurrent operating leases

Deferred income taxes, net

Other noncurrent liabilities

Total noncurrent liabilities

Commitments and Contingencies

Stockholders' Equity:

Total liabilities and stockholders' equity

$

$

Note A: The following tables show

reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate

due to rounding.

Delta sometimes uses information ("non-GAAP

financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting

principles generally accepted in the U.S. (“GAAP”). Under the Securities and Exchange Commission rules, non-GAAP financial

measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or

superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly

comparable GAAP financial measures.

Forward Looking Projections. Delta

is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such as

those used in the reconciliations below will not be known until the end of the period and could be significant.

Adjustments. These reconciliations

include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, and

for 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 more meaningful 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 in stock 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 the contract settlement period, and

therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash

received 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

understand and analyze our core operational performance in the periods shown.

Realized gain on sale of

investments. This adjustment relates to gains on the sale of investments generated in adjusted results that had previously been included

in GAAP results. During the September and December 2024 quarters, we sold our investment in CLEAR. Adjusting for this gain allows investors

to better understand and analyze our core operational performance in the periods shown.

One-time pilot agreement

expenses. In the March 2023 quarter, Delta pilots ratified a new four-year Pilot Working Agreement effective January 1, 2023. The

agreement included a provision for a one-time payment made upon ratification in the March 2023 quarter of $735 million. Additionally,

we recorded adjustments to other benefit-related items of approximately $130 million. Adjusting for these expenses allows investors

to better understand and analyze our core cost performance.

Operating Revenue, adjusted and Total

Revenue Per Available Seat Mile ("TRASM"), adjusted

Three Months Ended

(in millions)

% Change

Operating revenue

$

$

$

Adjusted for:

Third-party refinery sales

)

)

)

Operating revenue, adjusted

$

$

$

%

Year Ended

(in millions)

% Change

Operating revenue

$

$

Adjusted for:

Third-party refinery sales

)

)

Operating revenue, adjusted

$

$

%

Three Months Ended

% Change

TRASM (cents)

Adjusted for:

Third-party refinery sales

)

)

)

)

TRASM, adjusted

%

Year Ended

TRASM (cents)

Adjusted for:

Third-party refinery sales

)

)

TRASM, adjusted

Pre-Tax Income, Net Income, and Diluted

Earnings per Share, adjusted

Three Months Ended

Three Months Ended

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$

$

)

$

$

Adjusted for:

MTM adjustments on investments

MTM adjustments and settlements on hedges

Loss on extinguishment of debt

3

Realized gain on sale of investments

Non-GAAP

$

$

)

$

$

Three Months Ended

Three Months Ended

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$

$

)

$

$

Adjusted for:

MTM adjustments on investments

)

MTM adjustments and settlements on hedges

7

Non-GAAP

$

$

)

$

$

Three Months Ended

Three Months Ended

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$

$

)

$

$

Adjusted for:

MTM adjustments on investments

MTM adjustments and settlements on hedges

Loss on extinguishment of debt

4

Non-GAAP

$

$

)

$

$

Year Ended

Year Ended

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$

$

)

$

$

Adjusted for:

MTM adjustments on investments

MTM adjustments and settlements on hedges

Loss on extinguishment of debt

Realized gain on sale of investments

Non-GAAP

$

$

)

$

$

Year Ended

Year Ended

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$

$

)

$

$

Adjusted for:

MTM adjustments on investments

)

MTM adjustments and settlements on hedges

)

Loss on extinguishment of debt

One-time pilot agreement expenses

Non-GAAP

$

$

)

$

$

Operating Cash Flow, adjusted.We present operating cash flow, adjusted because management believes adjusting for the following items provide a more meaningful measure

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

GAAP operating activities. We have adjusted for these items, which were primarily funded by cash restricted for airport construction,

to provide investors a better understanding of the company's operating cash flow that is core to our operations in the periods shown.

Pilot agreement payment.In March 2023, Delta pilots ratified a new four-year Pilot Working Agreement effective January 1, 2023. The agreement includes a

provision for a one-time payment upon ratification in the March 2023 quarter of $735 million. We adjust for this item to provide investors

a better understanding of our recurring free cash flow generated by our operations.

Three Months Ended

(in millions)

Net cash provided by operating activities

$

$

Adjusted for:

Net cash flows related to certain airport construction projects and other

)

)

Operating cash flow, adjusted

$

$

Year Ended

(in millions)

Net cash provided by operating activities

$

$

Adjusted for:

Net cash flows related to certain airport construction projects and other

)

Pilot agreement payment

–

Net cash provided by operating activities, adjusted

$

$

Free Cash Flow. We present free

cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is

available for use for debt service or general corporate initiatives. Free cash flow is also used internally as a component of our incentive

compensation programs. Free cash flow is defined as net cash from operating activities and net

cash from investing activities, adjusted for (i) net redemptions of short-term investments and (ii) net cash flows related to certain

airport construction projects. These adjustments are made for the following reasons:

Net redemptions of short-term

investments. Net redemptions of short-term investments represent the net purchase and sale activity of investments and marketable

securities in the period, including gains and losses. We adjust for this activity to provide investors a better understanding of the

company's free cash flow generated by our operations.

Net cash flows related

to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our

GAAP operating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted

for airport construction, to provide investors a better understanding of the company's free cash flow and capital expenditures that are

core to our operations in the periods shown.

Three Months Ended

(in millions)

Net cash provided by operating activities

$

Net cash used in investing activities

)

Adjusted for:

Net redemptions of short-term investments

(8

)

Net cash flows related to certain airport construction projects and other

)

Free cash flow

$

Year Ended

(in millions)

Net cash provided by operating activities

$

Net cash used in investing activities

)

Adjusted for:

Net redemptions of short-term investments

)

Net cash flows related to certain airport construction projects and other

Free cash flow

$

Operating Income, adjusted

Three Months Ended

(in millions)

Operating income

$

$

Adjusted for:

MTM adjustments and settlements on hedges

7

Operating income, adjusted

$

$

Year Ended

(in millions)