Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

bf45f77ef764ff876f7cb852fa19d049f2121cfd64625a698b2def83eb39feff

| Metric / Quarter                                      | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|
| **Refinery Segment Impact on Airline Avg Price per Fuel Gallon** | **0.25**  **[0000027904-23-000006_dal-20230331.htm:21]**  | **0.04**  **[0000027904-23-000009_dal-20230630.htm:22]**  | **0.11**  **[0000027904-23-000013_dal-20230930.htm:27]**  | **0.00**  **[0001683168-24-000244_delta_ex9901.htm:2]**  | **-0.05**  **[0000027904-24-000006_dal-20240331.htm:17]**  | **-0.06**  **[0000027904-24-000009_dal-20240630.htm:20]**  | **0.03**  **[0000027904-24-000012_dal-20240930.htm:23]**  |
| **Third-Party Refinery Sales**            | **916**  **[0000027904-23-000006_dal-20230331.htm:21]**  | **965**  **[0000027904-23-000009_dal-20230630.htm:22]**  | **935**  **[0000027904-23-000013_dal-20230930.htm:27]**  | **563**  **[0001683168-24-000244_delta_ex9901.htm:11]**  | **1,185**  **[0000027904-24-000006_dal-20240331.htm:14]**  | **1,251**  **[0000027904-24-000009_dal-20240630.htm:16]**  | **1,083**  **[0000027904-24-000012_dal-20240930.htm:18]**  |
| **Average Price Per Gallon**                      | **3.06**  **[0000027904-23-000006_dal-20230331.htm:21]**  | **2.52**  **[0000027904-23-000009_dal-20230630.htm:23]**  | **2.76**  **[0000027904-23-000013_dal-20230930.htm:28]**  | **3.01**  **[0001683168-24-000244_delta_ex9901.htm:17]**  | **2.79**  **[0000027904-24-000006_dal-20240331.htm:17]**  | **2.64**  **[DAL_3393031_5]**  | **2.51**  **[0000027904-24-000012_dal-20240930.htm:20]**  |
| **Fuel Expense as a % of Total Operating Expense**| **20.53**  **[0000027904-23-000006_dal-20230331.htm:19]**  | **19.22**  **[0000027904-23-000009_dal-20230630.htm:18]**  | **21.74**  **[0000027904-23-000013_dal-20230930.htm:23]**  | N/A | **19.78**  **[0000027904-24-000006_dal-20240331.htm:15]**  | **19.55**  **[0000027904-24-000009_dal-20240630.htm:17]**  | **19.24**  **[0000027904-24-000012_dal-20240930.htm:20]**  |
| **Fuel Consumption Increase**                     | **18**  **[0000027904-23-000006_dal-20230331.htm:21]**  | **16**  **[0000027904-23-000009_dal-20230630.htm:23]**  | **14**  **[0000027904-23-000013_dal-20230930.htm:28]**  | N/A | **5**  **[0000027904-24-000006_dal-20240331.htm:15]**  | **7**  **[0000027904-24-000009_dal-20240630.htm:17]**  | **3**  **[0000027904-24-000012_dal-20240930.htm:23]**  |
| **Fuel Gallons Consumed**                  | **888**  **[0000027904-23-000006_dal-20230331.htm:21]**  | **997**  **[0000027904-23-000009_dal-20230630.htm:23]**  | **1,062**  **[0000027904-23-000013_dal-20230930.htm:28]**  | **978**  **[0001683168-24-000244_delta_ex9901.htm:8]**  | **931**  **[0000027904-24-000006_dal-20240331.htm:17]**  | **1,066**  **[0000027904-24-000009_dal-20240630.htm:21]**  | **1,096**  **[0000027904-24-000012_dal-20240930.htm:23]**  |

d99f1202cf79774dbe265c7416767721e3372d3678221d3ddcd132b4947911e2

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

5319066728665aed5a14e9b80f5ac017657439fe0386560fab9a461254064756

e9c6f2a272a02e7cf1cffa1cb197a184c3cfaa4dd5deb60128a30482aba4442f

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Airline Segment      | 12,300  **[DAL_2572669_2]**  | 11,843  **[0000027904-23-000006_dal-20230331.htm:14]**  | 14,613  **[0000027904-23-000009_dal-20230630.htm:15]**  | 14,553  **[0000027904-23-000013_dal-20230930.htm:18]**  | N/A     | 12,563  **[0000027904-24-000006_dal-20240331.htm:12]**  | 15,407  **[0000027904-24-000009_dal-20240630.htm:13]**  | 14,594  **[0000027904-24-000012_dal-20240930.htm:15]**  |
| Refinery Segment     | 2,600  **[0000027904-22-000013_dal-20220930.htm:18]**   | 2,352  **[0000027904-23-000006_dal-20230331.htm:14]**   | 2,037  **[0000027904-23-000009_dal-20230630.htm:15]**   | 1,886  **[0000027904-23-000013_dal-20230930.htm:18]**   | N/A     | 2,049  **[0000027904-24-000006_dal-20240331.htm:12]**   | 2,051  **[0000027904-24-000009_dal-20240630.htm:13]**   | 1,912  **[0000027904-24-000012_dal-20240930.htm:15]**   |
| Intersegment Sales/Other | N/A     | N/A     | N/A     | N/A     | N/A     | (864)  **[0000027904-24-000006_dal-20240331.htm:12]**  | (800)  **[0000027904-24-000009_dal-20240630.htm:13]**  | (829)  **[0000027904-24-000012_dal-20240930.htm:15]**  |
| Total Operating Revenue | 13,975  **[0000027904-22-000013_dal-20220930.htm:18]**  | 12,759  **[0000027904-23-000006_dal-20230331.htm:14]**  | 15,578  **[0000027904-23-000009_dal-20230630.htm:15]**  | 15,488  **[0000027904-23-000013_dal-20230930.htm:18]**  | N/A     | 13,748  **[0000027904-24-000006_dal-20240331.htm:12]**  | 16,658  **[0000027904-24-000009_dal-20240630.htm:13]**  | 15,677  **[0000027904-24-000012_dal-20240930.htm:15]**  |

c04281454f998d200198c9c195c1d2925c2e69782d58069d8223854d24dda15c

| Metric [USD Million] | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2023 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Domestic             | **10,031**  **[0000027904-24-000006_dal-20240331.htm:8]**  | **11,575**  **[0000027904-24-000009_dal-20240630.htm:8]**  | **10,609**  **[0000027904-24-000012_dal-20240930.htm:9]**  | N/A     | **9,396**  **[0000027904-23-000006_dal-20230331.htm:8]**  | **10,749**  **[0000027904-23-000009_dal-20230630.htm:8]**  | **10,461**  **[0000027904-23-000013_dal-20230930.htm:9]**  | N/A     |
| Atlantic             | **1,581**  **[0000027904-24-000006_dal-20240331.htm:8]**   | **3,210**  **[0000027904-24-000009_dal-20240630.htm:8]**   | **3,418**  **[0000027904-24-000012_dal-20240930.htm:9]**   | N/A     | **1,548**  **[0000027904-23-000006_dal-20230331.htm:8]**  | **3,178**  **[0000027904-23-000009_dal-20230630.htm:8]**  | **3,497**  **[0000027904-23-000013_dal-20230930.htm:9]**  | N/A     |
| Latin America        | **1,442**  **[0000027904-24-000006_dal-20240331.htm:8]**   | **1,102**  **[0000027904-24-000009_dal-20240630.htm:8]**   | **889**  **[0000027904-24-000012_dal-20240930.htm:9]**     | N/A     | **1,280**  **[0000027904-23-000006_dal-20230331.htm:8]**  | **1,037**  **[0000027904-23-000009_dal-20230630.htm:8]**  | **891**  **[0000027904-23-000013_dal-20230930.htm:9]**    | N/A     |
| Pacific              | **694**  **[0000027904-24-000006_dal-20240331.htm:8]**     | **771**  **[0000027904-24-000009_dal-20240630.htm:8]**     | **761**  **[0000027904-24-000012_dal-20240930.htm:9]**     | N/A     | **535**  **[0000027904-23-000006_dal-20230331.htm:8]**    | **614**  **[0000027904-23-000009_dal-20230630.htm:8]**    | **639**  **[0000027904-23-000013_dal-20230930.htm:9]**    | N/A     |
| Total Operating Revenue | **13,748**  **[0000027904-24-000006_dal-20240331.htm:8]**  | **16,658**  **[0000027904-24-000009_dal-20240630.htm:8]**  | **15,677**  **[0000027904-24-000012_dal-20240930.htm:9]**  | N/A     | **12,759**  **[0000027904-23-000006_dal-20230331.htm:8]**  | **15,578**  **[0000027904-23-000009_dal-20230630.htm:8]**  | **15,488**  **[0000027904-23-000013_dal-20230930.htm:9]**  | N/A     |

63fb04a389f3d70ddb79a7a255790d2724c6e98c7de2dc34cecf1241417eb94a

Delta Air Lines (DAL) has fundamentally transformed its business over the last decade by investing in its people, products, and reliability to improve its financial foundation and reduce reliance on the most price-sensitive customer segments. The company has diversified its revenue streams by focusing on high-margin products and services, including premium products such as Delta One®, First Class, Delta Premium Select, and Delta Comfort+®. Delta's partnership with American Express is a significant revenue stream, contributing $6.8 billion in 2023, with expectations to increase by 10% in 2024 and grow to $10 billion over the long term. The SkyMiles loyalty program also plays a crucial role, with members redeeming miles for approximately 30 million award tickets in 2023, accounting for 10% of revenue miles flown **[0000027904-24-000003_dal-20231231.htm:6]** **[0000027904-24-000003_dal-20231231.htm:3]**. The company's Maintenance, Repair, and Overhaul (MRO) operations, cargo business, and travel-adjacent services such as trip insurance, car, and hotel rentals further diversify its revenue **[0000027904-24-000003_dal-20231231.htm:6]** **[0000027904-24-000003_dal-20231231.htm:3]** **[0000027904-24-000003_dal-20231231.htm:143]**.

1. **Passenger Services** - Offers a range of seating options including Delta One®, First Class, Delta Premium Select, and Delta Comfort+® to cater to different customer preferences and enhance travel experiences.
2. **American Express Partnership** - Generates significant revenue through a strategic partnership, contributing to the company's financial growth.
3. **SkyMiles Loyalty Program** - Engages customers by allowing them to redeem miles for award tickets, enhancing customer loyalty and retention.
4. **Maintenance, Repair, and Overhaul (MRO)** - Provides maintenance and repair services, supporting operational efficiency and reliability.
5. **Cargo Business** - Facilitates the transportation of goods, contributing to the company's diversified revenue streams.
6. **Travel-Adjacent Services** - Includes offerings such as trip insurance, car rentals, and hotel bookings to complement travel experiences.

90d19b712ddeab2da36cd3f2193b8fa5c5313778e0893fd34be716319773c140

1. With plans to increase capacity in core hubs like Atlanta, how will you ensure this growth doesn't lead to overcapacity and pressure on unit revenues, especially considering potential market saturation?
2. Given the premium cabin's outperformance over the main cabin by 9 points recently, what strategies are you implementing to improve main cabin performance without undermining the strong premium demand?
3. As you anticipate becoming a cash taxpayer next year, can you elaborate on how this will impact your free cash flow and capital allocation priorities, particularly regarding debt repayment versus potential shareholder returns?
4. Considering the shifts in seasonality with decreased peak travel in July and August and increased demand in September and October, how are you adjusting your capacity planning and revenue management to adapt to these changes?
5. With domestic capacity rationalization occurring due to underperformance in main cabin revenues, how do you anticipate these industry-wide capacity cuts will affect Delta's competitive position and ability to drive unit revenue growth?

471803f10ca30f6889c5d90679ced5ae8bc3570e3137bcdc84c3757f781a9f81

**Refinery Segment Impact on Airline Avg Price per Fuel Gallon**

**Third-Party Refinery Sales**

**Average Price Per Gallon**

**Fuel Consumption Increase**

**Fuel Gallons Consumed**

798dc0107d6623d7df14b56f1bc1b714da72543d51eb60ec00699463ae6b7193

b72178e55e806e26ba60c6c758715cb4db0c652259577a453dcb96b2e96fbfd9

Passenger Revenue

- Domestic

- Atlantic

- Latin America

- Pacific

Total Passenger Revenue

Operating Revenue

Total Operating Revenue

0377f04848d5585cc3938d7a6e8a4b8eca45a498e552690af37e79bf507f96d0

- American Airlines: Traditional network carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- United Airlines: Traditional network carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- Alaska Airlines: National point-to-point carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- JetBlue Airways: National point-to-point carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- Southwest Airlines: National point-to-point carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- Allegiant Air: Discount or ultra-low-cost carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- Avelo Airlines: Discount or ultra-low-cost carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- Breeze Airways: Discount or ultra-low-cost carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- Frontier Airlines: Discount or ultra-low-cost carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .
- Spirit Airlines: Discount or ultra-low-cost carrier  **[0000027904-24-000003_dal-20231231.htm:43]** .

a4365b0d98e4576c0cff1a94d3d52069c3e3318d92f1122870a15bbf8fe359ff

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** December Quarter 2024
- **Guidance:**
  - **Earnings Growth:** Expected to grow by **30%** compared to the prior year.
  - **Operating Margin Expansion:** Expected to deliver **2 points** of margin expansion.
  - **Fuel Prices:** Expected to be between **$2.20 to $2.40 per gallon**, more than **20% lower** year-over-year.
  - **Unit Costs:** Expected to be up **3%** from last year as capacity growth moderates to **3% to 4%**.
  - **Earnings Per Share (EPS):** Expected to be between **$1.60 to $1.85 per share**.
  - **Operating Margins:** Expected to be **11% to 13%**.
  - **Total Revenue for December Quarter:** Expected to increase **2% to 4%** over the prior year on a **3% to 4%** higher capacity level.
  - **Full Year EPS:** Expected to be around the midpoint of the initial **$6 to $7 EPS guidance**, excluding the **$0.45 impact** from the CrowdStrike-caused outage  **[DAL_3402724_5]** **[DAL_3402724_3]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** Q3 2024 and FY 2024
- **Guidance for Q3 2024:**
  - **Operating Margin:** Expected to be between **11% to 13%**.
  - **Earnings Per Share (EPS):** Expected to be between **$1.70 to $2** per share.
  - **Fuel Prices:** Expected to be **$2.60 to $2.80** per gallon.
  - **Nonfuel Unit Costs:** Expected to be **1% to 2%** higher than last year on **5% to 6%** capacity growth.
- **Full Year 2024 Guidance:**
  - **Earnings Per Share (EPS):** Expected to be between **$6 to $7** per share.
  - **Free Cash Flow:** Expected to be between **$3 billion to $4 billion**.
  - **Capital Expenditures (CapEx):** Expected to be **$5 billion**.
  - **Fleet Growth:** Expected to be less than **2%**, including approximately **40 aircraft deliveries** and **20 retirements**.
  - **Leverage:** Expected to be **2.5x** by year-end.
  - **Maintenance Expense:** Full year maintenance expense is expected to be up **$350 million** over 2023.
  - **Nonfuel Unit Costs in the Second Half:** Expected to increase in the low single digits.
  - **Unencumbered Asset Base:** Expected to grow to **$30 billion** by year-end  **[DAL_3393031_5]** **[DAL_3393031_2]** **[DAL_3393031_3]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** Q2 2024 and FY 2024
- **Guidance for Q2 2024:**
  - **Operating Margin:** Expected to be between **14% to 15%**.
  - **Earnings Per Share (EPS):** Expected to be between **$2.20 to $2.50**.
  - **Fuel Prices:** Expected to be **$2.70 to $2.90 per gallon**.
  - **Revenue Growth:** Expected to be **5% to 7%** on capacity growth of **6% to 7%**.
- **Full Year 2024 Guidance:**
  - **Earnings Per Share (EPS):** Expected to be between **$6 to $7**.
  - **Free Cash Flow:** Expected to be between **$3 billion to $4 billion**.
  - **Leverage Ratio:** Expected to improve to **2.5x**  **[DAL_3379703_5]** **[DAL_3379703_3]** **[DAL_3379703_1]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** Q1 2024 and FY 2024
- **Guidance for Q1 2024:**
  - **Earnings Per Share (EPS):** $0.25 to $0.50 per share.
  - **Operating Margin:** Approximately **5%**.
  - **Revenue Growth:** **3% to 6%** over 2023 on capacity growth of **6%**.
  - **Fuel Price:** $2.50 to $2.70 per gallon.
- **Full Year 2024 Guidance:**
  - **Earnings Per Share (EPS):** $6 to $7 per share.
  - **Free Cash Flow:** $3 billion to $4 billion.
  - **Capacity Growth:** **3% to 5%**.
  - **Nonfuel Unit Costs:** Expected to be up low single digits over 2023.
  - **Maintenance Expense:** Expected to be up $350 million over 2023.
  - **Debt Maturities:** Plan to pay cash for $3 billion of 2024 debt maturities.
  - **Aircraft Deliveries:** Approximately 45 aircraft deliveries.
  - **Leverage Ratio:** Expected to reduce leverage to under 3x  **[DAL_3370237_0]** .

8e080e9d52e206ac698c0c6067c5a23c797429fabecb183609a383ed13476b71

| Name               | Position                                             | Start Date       | Short Bio                                                                                                                                                                                                                       |
|--------------------|------------------------------------------------------|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Edward H. Bastian  | Chief Executive Officer                              | May 2016         | Edward H. Bastian has been the CEO of Delta Air Lines since May 2016. He joined Delta's Board on February 5, 2010, and has over twenty years of experience as a Delta officer  **[0000027904-24-000003_dal-20231231.htm:25]** **[0001308179-24-000615_ldal2024_def14a.htm:66]** **[0001308179-23-000817_ldal2023_def14a.htm:60]** .                                        |
| Glen W. Hauenstein | President                                            | May 2016         | Glen W. Hauenstein has been the President of Delta Air Lines since May 2016. He previously served as Executive Vice President and Chief Revenue Officer from August 2013 to May 2016  **[0000027904-24-000003_dal-20231231.htm:25]** .                                       |
| Allison C. Ausband | Executive Vice President - Chief Customer Experience Officer | June 2021        | Allison C. Ausband has been the EVP - Chief Customer Experience Officer since June 2021. She was previously Senior Vice President - In-Flight Service from September 2014 to May 2021  **[0000027904-24-000003_dal-20231231.htm:25]** **[0001683168-24-006628_delta_sc13da5.htm:4]** .                                   |
| Alain Bellemare    | President - International                            | January 2021     | Alain Bellemare has been serving as President - International since January 2021. He was previously CEO of Bombardier from February 2015 to March 2020  **[0000027904-24-000003_dal-20231231.htm:25]** **[0000027904-23-000003_dal-20221231.htm:24]** .                                                                  |
| Peter W. Carter    | Executive Vice President - External Affairs          | October 2022     | Peter W. Carter has been EVP - External Affairs since October 2022. He was previously EVP - Chief Legal Officer from July 2015 to October 2022  **[0000027904-24-000003_dal-20231231.htm:25]** **[0000027904-23-000003_dal-20221231.htm:24]** .                                                                          |
| Daniel C. Janki    | Executive Vice President - Chief Financial Officer   | July 2021        | Daniel C. Janki has been EVP - Chief Financial Officer since July 2021. He held various senior positions at General Electric Company before joining Delta  **[0000027904-24-000003_dal-20231231.htm:25]** .                                                                  |
| John E. Laughter   | President - Delta TechOps and Chief of Operations    | October 2023     | John E. Laughter has been President - Delta TechOps and Chief of Operations since October 2023. He was previously EVP - Chief of Operations from June 2021 to October 2023  **[0000027904-24-000003_dal-20231231.htm:25]** .                                                 |
| Rahul Samant       | Executive Vice President - Chief Information Officer | January 2018     | Rahul Samant has been EVP - Chief Information Officer since January 2018. He was previously Senior Vice President and Chief Information Officer from February 2016 to December 2017  **[0000027904-24-000003_dal-20231231.htm:25]** **[0001683168-22-007725_delta_13da.htm:7]** .                                     |
| Steven M. Sear     | Executive Vice President - Global Sales              | February 2016    | Steven M. Sear has been EVP - Global Sales since February 2016. He was previously Senior Vice President - Global Sales from December 2011 to February 2016  **[0000027904-24-000003_dal-20231231.htm:26]** **[0000027904-23-000003_dal-20221231.htm:25]** .                                                              |
| Joanne D. Smith    | Executive Vice President and Chief People Officer    | October 2014     | Joanne D. Smith has been EVP and Chief People Officer since October 2014. She was previously Senior Vice President - In-Flight Service from March 2007 to September 2014  **[0000027904-24-000003_dal-20231231.htm:26]** **[0000027904-23-000003_dal-20221231.htm:25]** .                                                |
| Mike Spanos        | Chief Operating Officer                              | June 12, 2023    | Mike Spanos has been the Chief Operating Officer since June 12, 2023. He was previously President and CEO of Six Flags Entertainment Corporation from November 2019 to November 2021  **[0000027904-24-000003_dal-20231231.htm:26]** **[0001683168-23-004182_delta_8ka.htm:0]** .                                    |
| Maria Black        | Board Member                                         | April 26, 2024   | Maria Black joined Delta's Board of Directors on April 26, 2024. She is the President and CEO of Automatic Data Processing, Inc. (ADP) since January 2023  **[0001308179-24-000615_ldal2024_def14a.htm:66]** **[0001683168-24-004365_delta_8ka.htm:0]** .                                                               |
| Willie Chiang      | Board Member                                         | April 26, 2024   | Willie CW Chiang joined Delta's Board of Directors on April 26, 2024. He is the Chairman and CEO of Plains All American Pipeline, L.P. and its general partner holding company Plains GP Holdings, L.P.  **[0001308179-24-000615_ldal2024_def14a.htm:67]** **[0001683168-24-004365_delta_8ka.htm:0]** .                |

a93f0f14ce69a9916b52b3c80021078e729022212ca7a2a0265825ec6a38bf41

Delta's Q4 2024 showed a 10% jump in corporate sales, with 90% of travel managers expecting to exceed or meet last year’s spend. Management forecasts 5% revenue growth and 50bps margin expansion (10% EPS growth) in 2025, fueled by robust transatlantic demand.

96c276e42725547f74bbabca62fc2e0ce5701acef8711ccb76153a850da75969

**Quarterly guidance for Q1 2025:**
- **Revenue Growth**: 7% to 9% year-over-year  **[DAL_3412289_6]**  (raised from 2% to 4% year-over-year  **[DAL_3402724_5]** **[DAL_3402724_3]** )  
- **Operating Margin**: 6% to 8%  **[DAL_3412289_6]**  (lowered from 11% to 13%  **[DAL_3402724_5]** **[DAL_3402724_3]** )  
- **EPS**: $0.70 to $1.00  **[DAL_3412289_6]**  (lowered from $1.60 to $1.85  **[DAL_3402724_5]** **[DAL_3402724_3]** )  
- **Nonfuel Unit Cost Growth**: up low single digits year-over-year  **[DAL_3412289_6]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **EPS**: greater than $7.35  **[DAL_3412289_6]** **[DAL_3412289_2]**  (raised from around the midpoint of $6 to $7  **[DAL_3402724_5]** **[DAL_3402724_3]** )  
- **Free Cash Flow**: greater than $4 billion  **[DAL_3412289_6]** **[DAL_3412289_7]**  (no prior guidance)  
- **Leverage Ratio**: 2x or less  **[DAL_3412289_6]** **[DAL_3412289_7]**  (no prior guidance)  
- **Revenue Growth**: approximately 5%  **[DAL_3412289_8]**  (no prior guidance)  
- **Capacity Growth**: 3% to 4%  **[DAL_3412289_5]**  (no prior guidance)  
- **Nonfuel Unit Cost Growth**: up low single digits year-over-year  **[DAL_3412289_6]**  (no prior guidance)  
- **Return on Invested Capital (ROIC)**: progressing toward ~15%  **[DAL_3412289_7]**  (no prior guidance)

d2c50d9f7d07be9d299e50c55be7dc5d2b11f19105ca0eef9ce0f415a793e5bc

| Name             | Start Date | End Date | Reason for Change |
|------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2006  **[0000027904-24-000003_dal-20231231.htm:95]**  | Present  | Current auditor   |

2886be288d025110af92f3e353838235d59fc2423f630f4ca8d22d6177acf3de

da763200aa0e51adc3901283237258c135c65d636cb9fb03e47d1c816d2643f5

a9f08106b5c13c3748ee3c4fad73c9fcb268990619a1ad0e0f758dfe96fcbc2e

450f7bed048d5d371d4b2801f71aff30b170ec6172304b4b0fc16fe84f7af17f

577c936bfee81fbe251f3df30e8caae6d03b3fc2476635a43e9d5442e8519e3d

1. **Productivity Recovery**  
   **Q:** What inning are we in for productivity recovery, and what metrics should we watch?  
   **A:** We're still in the early innings of our productivity recovery. With workforce growth up only **1.5%** while the network grew over **5%**, we're seeing efficiency gains as we grow into our resources.  **[DAL_3402724_17]**  Continued improvements are expected as we optimize maintenance, crew utilization, and benefit from technology investments.

2. **CASM Outlook**  
   **Q:** What are the puts and takes for CASM next year?  
   **A:** We'll share more at Investor Day, but we'll continue investing in our workforce and brand while benefiting from efficiency gains as we grow into our workforce.  **[DAL_3402724_19]**  This consistent approach should help us manage CASM effectively.

3. **Premium Cabin Performance**  
   **Q:** How long will premium cabins outperform main cabins, and will main cabin catch up?  
   **A:** It's a bit of both. Main cabin underperformance drove industry capacity cuts. As these cuts take effect, main cabin should improve, but we believe there's still more upside in premium products.  **[DAL_3402724_24]** 

4. **Balance Sheet and Cash Returns**  
   **Q:** How do you think about continued debt paydown versus cash return?  
   **A:** We'll focus on generating cash and reinvesting in the business, with a primary focus on debt reduction.  **[DAL_3402724_23]**  Strengthening the balance sheet effectively returns capital to investors through equity value accretion.

5. **Capacity Plans for Hubs**  
   **Q:** Can you discuss your strategy for increasing capacity in Atlanta next summer?  
   **A:** We're refocusing on our core hubs like Atlanta, having solidified positions in coastal cities.  **[DAL_3402724_20]**  With regional jets returning to full utilization, we'll drive efficiency and expect capacity to exceed pre-COVID levels.

6. **Corporate Demand Recovery**  
   **Q:** How does potential corporate demand recovery in 2025 influence your network?  
   **A:** We have room for business customers on our network. As premium products are outperforming coach, we anticipate momentum picking up and can adjust capacity allocation accordingly without major network changes.  **[DAL_3402724_9]** 

7. **Industry Capacity Reductions**  
   **Q:** How do you feel about industry capacity plans for Q1; is more reduction needed?  
   **A:** We're encouraged by where the industry is finishing this year. There's likely more capacity to come out in Q1, but that's a hypothesis, not a fact.  **[DAL_3402724_22]** 

8. **Revenue Outlook Beyond Elections**  
   **Q:** Can you provide color on unit revenue projections by entity beyond the elections?  
   **A:** Domestic and transatlantic are leading the way and will continue to do so.  **[DAL_3402724_10]**  We're excited about transatlantic performance this winter due to capacity adjustments and robust off-season demand.

9. **Transatlantic Revenue Potential**  
   **Q:** How does transatlantic revenue potential rank among your entities for 2025?  
   **A:** Domestic will be quite strong given current capacity levels, with transatlantic following closely.  **[DAL_3402724_27]**  We expect all entities to turn positive next year, with domestic and transatlantic being the strongest.

10. **Becoming Cash Taxpayer**  
    **Q:** When will you start paying cash taxes, and what is the expected cash tax rate?  
    **A:** We expect to start paying some cash taxes next year as we utilize deferred tax assets.  **[DAL_3402724_26]**  The stabilized cash tax rate may progress to the high teens or low 20s, depending on tax policy.

11. **Regional Feed Recovery**  
    **Q:** Can you give an overview of your regional feed recovery post-pandemic?  
    **A:** Pilot constraints initially reduced regional capacity to **35%-40%**. Recently, it's been **65%-70%**, and by next summer, we expect to return to **100%** of 2019 capacity levels as pilot availability normalizes.  **[DAL_3402724_31]** 

12. **Distribution Cost Strategy**  
    **Q:** Is distribution cost a potential tailwind into 2025 with recent GDS agreements?  
    **A:** Over time, we've seen a decrease in distribution costs, but future reductions depend on consumer behavior.  **[DAL_3402724_13]**  Our strategy is to meet customers where they are and ensure best-in-class products across all channels.

0865be84dca0993db4eac38ec461ffc1e420ac03044a922c06ada6ff936a8100

1. **Industry Capacity and Structural Changes**  
   **Q:** Will there be structural changes to reduce industry oversupply?  
   **A:** Management believes the industry is reacting quickly to oversupply, with capacity already being reduced after only a few months.  **[DAL_3393031_8]**  Ed Bastian is confident that economic pressures will force lower-performing carriers to adjust operations, benefiting Delta as capacity becomes more disciplined.  **[DAL_3393031_8]** 

2. **Delta's Capacity Growth Plans**  
   **Q:** Any color on capacity plans entering 2025?  
   **A:** Delta is not ready to give 2025 capacity growth but emphasizes the importance of focusing on seat count rather than ASMs.  **[DAL_3393031_17]**  While capacity grew **8%** in ASMs, seats only grew about **5%** or less due to longer stage lengths.  **[DAL_3393031_17]**  Delta remains the least restored in terms of seats versus 2019.  **[DAL_3393031_17]** 

3. **Supply Chain Challenges Impacting Fleet Growth**  
   **Q:** How is Delta managing Airbus and Boeing supply issues?  
   **A:** Delta is largely insulated from Airbus delivery challenges and expects to take its anticipated deliveries, with only minor delays.  **[DAL_3393031_9]**  Ed Bastian doesn't anticipate problems with aircraft needed for 2025 capacity and notes that Boeing's recovery will take time.  **[DAL_3393031_9]** **[DAL_3393031_19]** 

4. **Premium Cabin Trends and Strategies**  
   **Q:** Can you discuss premium cabin trends and outlook?  
   **A:** Delta Premium Select is exceeding expectations, with load factors in the mid to high **80%s** and fares more than **2x** coach fares.  **[DAL_3393031_13]**  Management is excited about rolling out DPS in the transcontinental markets, expecting accretive results.  **[DAL_3393031_13]**  Premium products continue to have the highest margins, reinforcing Delta's focus on premium offerings.  **[DAL_3393031_13]** **[DAL_3393031_26]** 

5. **Free Cash Flow and Deleveraging Plans**  
   **Q:** How is Delta improving margins and reducing debt?  
   **A:** Delta expects to generate between **$3 billion and $4 billion** in free cash flow this year and at least as much next year.  **[DAL_3393031_23]**  This cash flow enables continued deleveraging of the balance sheet, differentiating Delta within the industry.  **[DAL_3393031_23]**  Management will discuss proper debt levels at Investor Day.  **[DAL_3393031_27]** 

6. **International Demand Trends**  
   **Q:** Are you seeing acceleration in international demand?  
   **A:** The international season is extending into September and October, with strong demand for Europe.  **[DAL_3393031_24]**  U.S. travelers are visiting Japan in record numbers due to a favorable exchange rate, with the yen at **JPY 160**.  **[DAL_3393031_24]** **[DAL_3393031_29]**  Delta anticipates robust fall demand for transatlantic flights, potentially inflecting to positive revenue growth.  **[DAL_3393031_21]** **[DAL_3393031_24]** 

7. **Headcount and Efficiency Improvements**  
   **Q:** Can you discuss headcount trends and efficiencies?  
   **A:** Headcount will grow just under **2%** while the network grows mid-single digits, indicating improved productivity.  **[DAL_3393031_23]**  Delta continues to see efficiencies as it restores core hubs and grows into resources and capabilities.  **[DAL_3393031_23]** 

8. **September Domestic Bookings Outlook**  
   **Q:** Is September domestic booking outlook improving?  
   **A:** Delta is confident about September bookings, with about **one-third** of domestic bookings already on hand.  **[DAL_3393031_7]**  This is substantially better than July and August at minus 60 days.  **[DAL_3393031_7]**  Management expects uplift from business travel increasing from August to September and capacity reductions in the industry.  **[DAL_3393031_7]** 

9. **Fourth Quarter Earnings Dynamics**  
   **Q:** How should we think about fourth-quarter earnings?  
   **A:** Last year's fourth quarter was the only quarter down year-over-year due to high fuel costs at **$3** per gallon.  **[DAL_3393031_18]**  This year, benefits from lower fuel prices and positive unit revenue inflection are expected to improve fourth-quarter earnings.  **[DAL_3393031_18]**  Management remains confident in ending within the full-year guidance range.  **[DAL_3393031_18]** 

10. **Headwind from Strikes Last Year**  
    **Q:** What was the headwind from strikes last year?  
    **A:** Strikes in the auto and entertainment industries last year presented about a **$100 million** headwind.  **[DAL_3393031_20]**  This is expected to be a tailwind this year as those industries recover.  **[DAL_3393031_20]** 

11. **Air Traffic Liability Trends**  
    **Q:** How should we consider swings in air traffic liability?  
    **A:** Air traffic liability is up **$2.4 billion**, supporting the revenue forecast for the third quarter.  **[DAL_3393031_15]**  The extension of the travel season and strong corporate demand help balance the liability into the third and fourth quarters.  **[DAL_3393031_15]** 

12. **Debt Levels and PSP Loans Resetting**  
    **Q:** Thoughts on PSP loans resetting to variable rates?  
    **A:** Delta will assess market conditions as the PSP loan tranches come due in 2025 and 2026.  **[DAL_3393031_14]**  The company focuses on deleveraging and may consider refinancing or other debt options depending on conditions.  **[DAL_3393031_14]** **[DAL_3393031_27]** 

13. **Competition in Premium Offerings**  
    **Q:** Are you concerned about competitors moving into premium?  
    **A:** Management is not overly concerned as premium is more than extra legroom; it's about overall experience and reliability.  **[DAL_3393031_12]**  Delta specializes in providing true premium experiences, and industry differentiation rewards those offering real value.  **[DAL_3393031_12]** 

14. **Premiumization of the Industry**  
    **Q:** Is there more opportunity as others premiumize?  
    **A:** Delta continues to have opportunities to grow premium, with premium revenues growing double-digit.  **[DAL_3393031_26]**  As competitors upgrade products and raise price points, it benefits Delta's Main Cabin revenues as well.  **[DAL_3393031_26]** 

15. **Gaining Gate Space from Competitors**  
    **Q:** Is there opportunity to gain gate space as others cut back?  
    **A:** Delta is always interested in serving underserved communities.  **[DAL_3393031_16]**  Management did not elaborate further on specific gate opportunities.  **[DAL_3393031_16]** 

16. **Wi-Fi Rollout and Enhancements**  
    **Q:** When will the entire fleet have fast and free Wi-Fi?  
    **A:** Delta is rolling out fast and free Wi-Fi, expecting the transatlantic fleet to be equipped by the end of summer.  **[DAL_3393031_28]**  Remaining domestic aircraft and regional jets will be equipped over the next **12 to 18 months**.  **[DAL_3393031_28]** 

17. **Update on Refinery Partnership or Sale**  
    **Q:** Any update on developing a partnership or selling the refinery?  
    **A:** Delta is not in discussions to sell or partner on the refinery; it is running very well and remains a key part of the company.  **[DAL_3393031_30]** 

18. **Unbundling the Front Cabin**  
    **Q:** Thoughts on unbundling front cabin products?  
    **A:** Management will provide more details at Investor Day but is not ready to discuss specifics at this time.  **[DAL_3393031_11]** 

19. **Details on Japan Demand**  
    **Q:** Can you provide more detail on Japan demand?  
    **A:** U.S.-Japan business is strong, with U.S. travelers taking advantage of favorable exchange rates due to the yen at **JPY 160**.  **[DAL_3393031_24]** **[DAL_3393031_29]**  Japan has become a key destination market for U.S. travelers.  **[DAL_3393031_29]** 

20. **Other Levers to Improve Margins**  
    **Q:** What other levers are you pulling to drive improvement?  
    **A:** Delta is investing in premium offerings, rolling out free and fast Wi-Fi, and maintaining good cost performance.  **[DAL_3393031_23]**  The company continues to grow into its larger headcount and sees opportunities to further reduce costs.  **[DAL_3393031_23]** 

f13c176460a6b7fbff541dca964bd169096bbcdbc11258e6056ddece229a8178

- **Delta Air Lines experienced a record domestic load factor in Q1 2024, with premium revenue up 10%, highlighting the strength of its brand and premium offerings.**  **[DAL_3379703_18]** **[DAL_3379703_23]**
- **The company is focusing on rebuilding its core hubs, which have higher unit revenue and profitability, and expects this to positively impact total revenues, especially in the second and third quarters.**  **[DAL_3379703_21]** **[DAL_3379703_19]**
- **Delta is ahead of its internal plans and anticipates improved revenue per available seat mile (RASM) in the second half of 2024, as industry capacity peaks in Q2, setting up favorable conditions for revenue growth.**  **[DAL_3379703_10]**

dbe9219de9f1671d9276c784005c6a3510c6cb05da43176c2609203ecfa4f99a

- **Delta's margins are not yet at their target levels, indicating potential profitability challenges ahead.**  **[DAL_3393031_22]**
- **Increased competition in the premium segment from other airlines could erode Delta's competitive advantage and affect revenue growth.**  **[DAL_3393031_12]**
- **Seasonal swings in air traffic liability may negatively impact cash flows in the back half of the year, presenting financial risks.**  **[DAL_3393031_15]**

37af670ea5d2dfd2788f819bfd5c009715e4d29bfe80401ef5a6ef6e2165281d

- **Delta Air Lines faces significant cost pressures from higher labor costs, inflation, and supply chain constraints, which may impact profitability.** CEO Ed Bastian noted that "higher cost of labor, certainly was not known back then, the higher inflation rates were not known back then. And most importantly, the supply chain constraints" are causing a "little bit of pause for $7" earnings per share target.  **[DAL_3370237_0]**
- **The competitive advantage in operational reliability is diminishing as competitors improve.** Ed Bastian acknowledged that "the overall reliability in the industry has improved" and "the competition is definitely more focused on reliability than ever before," potentially reducing Delta's premium lead in that sector.  **[DAL_3370237_0]**
- **Macroeconomic and geopolitical uncertainties, including volatile energy prices and upcoming elections, pose risks to Delta's performance.** Ed Bastian mentioned that "the geopolitical front continues to be quite testing, including the fact that this is a political election season," and "energy prices... continue to be quite volatile," impacting their cautious earnings guidance.  **[DAL_3370237_0]**

bd8840976a40de655771fee845b88263ffc97f943031960339dbcc1ab9700290

- Delta is experiencing **very strong demand** with record sales days in early 2025, indicating a **strong year ahead**. As Glen Hauenstein noted, they had "**2 of our top record sales days since the beginning of the year**," and see "**really, really strong demand**" across all entities into April.  **[DAL_3412289_12]**
- There is **robust demand across all customer segments**, with **premium demand** driven by baby boomers and strong corporate sales growth. Corporate sales were **up 10%** in the fourth quarter, and **90%** of corporate travel managers expect to exceed or meet last year's spend.  **[DAL_3412289_14]**
- Delta expects a **record year in transatlantic travel**, with favorable competitive dynamics and the absence of last year's negative impact from the Paris Olympics. Glen Hauenstein stated, "**We're really, really excited about the way the spring and summer are shaping up** in terms of competitive capacity in the transatlantic," anticipating "**very, very robust returns**."  **[DAL_3412289_13]**

f5389784607aa4af1a9f7b9667d348beca78cbf6f60392de27e0d6c7a15fa613

- **Delta's U.S.-Japan business is quite strong**, benefiting from the favorable exchange rate of **JPY 160**, which makes Japan a more attractive destination for U.S. travelers. **"Business continues to remain strong."**  **[DAL_3393031_29]**
- The **Delta Premium Select** program has **exceeded internal expectations**, with **load factors in the mid- to high 80s** and fare structures **more than 2x what coach fares are**, leading to great margins. The expansion to transcontinental routes like **JFK-LA**, the largest revenue market in the country, is expected to be **very accretive** with advances already looking **very strong**.  **[DAL_3393031_13]**
- Delta's focus on operational reliability and service delivers a **true premium experience**, differentiating it from competitors. This has made Delta the preferred choice for business travelers and strengthened partnerships like with **American Express**, choosing Delta as their exclusive partner. **"The operations we've run this year are the best in the industry across every measure, every month, month in and month out."**  **[DAL_3393031_12]**

0b09da2ffc4f7a8afa177a8707e8e0041d2a62cb5058065d948355b658b4befc

- **Delta Air Lines expects to start paying cash taxes next year, which could reduce free cash flow as the cash tax rate progresses to the high teens or low 20s over the next three years.**  **[DAL_3402724_26]**
- **Airport costs have increased over **20%** year-over-year, with significant investments leading to higher expenses that are "always the most expensive on day 1," impacting current profitability.**  **[DAL_3402724_21]**
- **Delta invested an incremental **$350 million** in maintenance this year; while maintenance cancellations are down **75%**, productivity gains are only starting, indicating ongoing cost pressures.**  **[DAL_3402724_17]**

a28af6644139c62c2d4fc1ad07c5d18e24a6796d10ecce8cb5b913d8b540bda9

- Delta's executives expressed uncertainty about demand beyond the first quarter of 2025, stating it's **"too early to call the second and third and fourth quarters"**. This could indicate potential challenges in sustaining growth throughout the year.  **[DAL_3412289_12]**
- Corporate travel demand has not fully returned to pre-pandemic levels. While there is improvement, executives noted that it is **"not back to where it was"** before COVID-19, which may impact revenue from business travelers.  **[DAL_3412289_17]**
- Aircraft delivery delays could impact Delta's capacity growth plans. The company received **"a few less deliveries... than we expected"**, and anticipates **"right around 40-ish"** deliveries in 2025, potentially limiting their ability to expand operations.  **[DAL_3412289_28]**

89e97cc36b81c9a4f501f79cb0b89dbfc49f0733e8d188ff6465ad1671b21d7f

- **Delta Air Lines continues to carry a high debt burden**, with management stating they have "more debt than we're comfortable with" and prioritizing debt reduction over other uses of cash, potentially limiting growth investments and shareholder returns.  **[DAL_3379703_12]**
- **Ongoing air traffic control (ATC) staffing shortages in key markets like New York and D.C. pose operational challenges**, and without slot waivers, these issues could significantly impact Delta's operations.  **[DAL_3379703_32]**
- **Normalization of travel credits is creating a headwind to revenue metrics**, causing a reduction of "a couple of points" in total revenue per available seat mile (TRASM), which could impact revenue growth throughout 2024.  **[DAL_3379703_8]** **[DAL_3379703_10]**

af3d4a2eb80d900e8b2468be8433a9d4bbdd1b6a1dec27c3311ff6e1a9520ead

- **Delta has completed significant investments in its core hubs**, such as **New York, LA, Salt Lake City, and Atlanta**, allowing them to leverage these assets for better efficiency and utilization, providing a competitive advantage over other airlines that still need to make similar investments.  **[DAL_3402724_21]**
- **Delta expects to generate significant profits and free cash flow**, becoming a cash taxpayer starting next year, reflecting strong financial performance and profitability.  **[DAL_3402724_26]**
- **Delta's consistent execution and durable earnings**, delivering **double-digit margins even when the industry is down**, highlight the company's strong profitability and ability to generate cash, supporting future debt repayment and investment.  **[DAL_3402724_14]**

9f6dfbd1a95ea5d69772b867147942b00dd839d64c431b52191a010a7dc16b7e

1. **Earnings Outlook**  
   **Q:** Can Delta reach $7 EPS in 2024?  
   **A:** Ed Bastian expressed confidence in hitting the **$6 to $7 EPS** guidance for 2024, though he noted several macro headwinds like volatile energy prices and supply chain constraints. Internally, Delta aims to achieve **$7 EPS**, but is being prudent given uncertainties.  **[DAL_3370237_0]** 

2. **Cost Control**  
   **Q:** What caused cost creep in 2023 and risks to 2024 CASM ex?  
   **A:** Higher costs in 2023 were due to lower capacity flown and increased maintenance expenses. For 2024, Delta expects a **low single-digit increase** in non-fuel unit costs, with efficiencies building throughout the year as growth normalizes and maintenance investments pay off.  **[DAL_3370237_0]** 

3. **Supply Chain Challenges**  
   **Q:** Are supply chain issues, especially with engines, resolved?  
   **A:** Ed Bastian indicated ongoing supply chain challenges, particularly with engine suppliers like **Pratt & Whitney**. Delays in engine maintenance and higher turn times are increasing costs and affecting service entry. He anticipates continued issues in the next **6 to 12 months**.  **[DAL_3370237_0]** 

4. **Operational Efficiency**  
   **Q:** What drives optimization and efficiency gains ahead?  
   **A:** Ed Bastian believes there's significant opportunity in optimizing both costs and revenues. With **10% more employees** than pre-pandemic levels operating the same capacity, there's room to enhance productivity. Additionally, improved understanding of consumer behavior will aid in network and revenue optimization.  **[DAL_3370237_0]** 

5. **Domestic Revenue Outlook**  
   **Q:** What's driving the inflection in domestic RASM?  
   **A:** Glen Hauenstein highlighted improving corporate demand, with corporate travel nearing **90% of pre-pandemic levels**. Capacity rationalization and enhanced segmentation and pricing strategies are also contributing to expected positive domestic unit revenue growth in the **March quarter**.  **[DAL_3370237_0]** 

6. **Corporate Travel Recovery**  
   **Q:** How is corporate travel, especially tech sector, performing?  
   **A:** Ed Bastian noted continued improvement in corporate travel, with **tech companies** starting to travel again. The **auto and entertainment sectors** have also rebounded, and overall corporate demand is accelerating into year-end.  **[DAL_3370237_0]** 

7. **Cost Trajectory**  
   **Q:** How will 2024 cost trajectory shape up?  
   **A:** Dan Janki stated that **maintenance expenses will increase by $350 million**, mainly in the first part of the year. Efficiencies are expected to build throughout 2024, with pilot hiring down over **50%** from last year and normalized training costs in the back half, leading to a steady drumbeat of efficiencies.  **[DAL_3370237_0]** 

8. **Fleet Retirement Plans**  
   **Q:** Will Delta extend 767 fleet due to A350 delays?  
   **A:** Delta plans to retire the 767 fleet steadily through the back half of the decade, intending to remove them from international long-haul routes by **2028** and fully retire by **2030**, while continuing to operate the **767-400s**.  **[DAL_3370237_0]** 

9. **International Demand**  
   **Q:** What's the outlook for international regions in 2024?  
   **A:** Delta expects strong international performance, with transatlantic bookings for April up **high single digits**. Pacific capacity is being absorbed nicely, and the JV with **LATAM** is improving profitability in South America. Some oversupply in beach markets is expected to rationalize over time.  **[DAL_3370237_0]** 

10. **Regional Operations**  
    **Q:** Impact of reduced pilot hiring on regional operations?  
    **A:** With pilot hiring down **50%**, Delta anticipates increased stability in regional operations. Potential for higher fleet utilization in the back half of the year could present upside to the P&L if more aircraft become available from decreased mainline hiring pressures.  **[DAL_3370237_0]** 

212b3c56c506a998bd6cf9e2967f24fd25e7bb65f51459255b3177684965e145

- **Strong International Demand and Revenue Growth:** Delta Air Lines expects robust international performance in 2024, particularly in the transatlantic market, where early bookings for April show **unit revenues up in the high single digits** ( **[DAL_3370237_0]** ). The company is also seeing positive trends in the Pacific and Latin America regions, contributing to improved profitability despite lower unit revenues ( **[DAL_3370237_0]** ).
- **Improvement in Corporate Travel Demand:** There is a **continued improvement in the corporate sector**, with significant recovery in the technology, auto, and entertainment industries ( **[DAL_3370237_0]** ). Corporate sales accelerated into year-end, and Delta is approaching **90% restoration to pre-pandemic levels** in corporate travel, supporting revenue growth in the domestic market ( **[DAL_3370237_0]** ).
- **Operational Excellence and Premium Offerings Driving Revenue:** Delta maintains its competitive advantage in operational reliability, expecting to **maintain its premium lead in the sector** despite increased industry focus on reliability ( **[DAL_3370237_0]** ). The company is leveraging **segmentation and pricing strategies** to drive revenue growth, focusing on higher-quality products and improving yields as it moves through the year ( **[DAL_3370237_0]** ).

a5f3c1f50baefe79543f3ceb1bed7e3102b6b0befa59a6b348c1ff3a5b791c25

1. **Revenue and Margin Outlook**  
   **Q:** Is your full-year revenue guidance conservative?  
   **A:** Management believes the full-year guidance focuses on controllable factors like capacity growth in the low single digits, revenue growth of **5%**, and margin expansion of **50 basis points**, leading to about **10%** earnings growth. They have good visibility into the first half of the year and note that industry dynamics could provide additional upside to margins as the year progresses.  **[DAL_3412289_8]** 

2. **Demand Strength and Transatlantic Outlook**  
   **Q:** How is demand shaping up, particularly for the transatlantic market?  
   **A:** The company is experiencing very strong demand, with record sales days since the year's start. The transatlantic market showed outstanding performance, driven by strong advanced bookings and close-in business travel. Factors include robust U.S. point-of-origin demand and favorable exchange rates, with the euro down to **EUR 1.02**, making Europe an attractive destination. Management expects another record year in the transatlantic market.  **[DAL_3412289_9]** ,  **[DAL_3412289_13]** ,  **[DAL_3412289_22]** 

3. **Premium Revenue Growth**  
   **Q:** Is premium revenue growth sustainable and outpacing main cabin?  
   **A:** Premium revenue growth continues to outpace main cabin, largely driven by baby boomers. Management plans to maintain this growth trajectory, with potential upside if main cabin accelerates as industry capacity has significantly decreased. They aim to drive premium revenue through higher loads rather than higher yields.  **[DAL_3412289_14]** ,  **[DAL_3412289_20]** ,  **[DAL_3412289_23]** 

4. **Cost Control and CASM Outlook**  
   **Q:** How will you keep CASM low single digits?  
   **A:** The company plans to enhance efficiencies across the fleet and network, focusing on higher-margin areas like premium seats. Improved utilization of assets, fully restoring regional flying, and better workforce utilization will contribute to cost control. They expect maintenance costs to start normalizing and anticipate technology will unlock further efficiencies over the long term.  **[DAL_3412289_11]** 

5. **Corporate Travel Recovery**  
   **Q:** How is corporate demand recovering?  
   **A:** Corporate demand is very strong, with corporate sales up **10%** in the fourth quarter. Trends are continuing into the first quarter, with both yields and traffic positive. Booking curves have shortened, and midweek travel is picking up, indicating a gradual return to pre-COVID behavior. Management notes their corporate market share is at record highs every month.  **[DAL_3412289_14]** ,  **[DAL_3412289_17]** ,  **[DAL_3412289_26]** 

6. **Capacity Growth Plans**  
   **Q:** What are your capacity growth expectations?  
   **A:** First-quarter capacity growth is expected between **4.5% and 5%**. For the second quarter and beyond, they plan to adjust capacity, anticipating the lowest year-over-year growth in June, July, and August. International capacity will be slightly higher than domestic, with the Atlantic slightly above system average and domestic slightly below.  **[DAL_3412289_24]** ,  **[DAL_3412289_25]** ,  **[DAL_3412289_27]** 

7. **Fuel Cost Recapture**  
   **Q:** Can you recapture higher fuel costs with current yields?  
   **A:** Management believes fuel cost recapture has never been faster, given industry dynamics and the need to improve results. They emphasize the industry's necessity to recapture fuel costs quickly and improve margins overall.  **[DAL_3412289_16]** 

8. **Capital Expenditure and Fleet Plans**  
   **Q:** What are your CapEx and fleet retirement plans?  
   **A:** The company expects capital expenditures of around **$5 billion** in 2025, with approximately **40** aircraft deliveries, including **12-13** widebodies. They plan to retire about **30** aircraft in 2025, up from **20** in 2024, allowing for better utilization and efficiency in operations.  **[DAL_3412289_28]** ,  **[DAL_3412289_30]** 

9. **Competitive Dynamics in Core Hubs**  
   **Q:** What are you seeing in your core hubs amid competition?  
   **A:** Management is encouraged by competitive dynamics in all hubs heading into spring and summer, with the possible exception of Boston due to elevated capacity levels. Overall, they feel positive about their position and performance in core hubs.  **[DAL_3412289_15]** 

10. **Impact of Los Angeles Wildfires**  
    **Q:** How are Los Angeles wildfires affecting your operations?  
    **A:** There has been a decline in sales in Los Angeles during the wildfire period, but management does not expect it to significantly impact the quarter. Historically, after natural disasters, there's often an uptick in demand as people go in to rebuild, which can offset initial impacts.  **[DAL_3412289_31]** ,  **[DAL_3412289_34]** 

74ebb3bbef3be6b13062941bf37fc1acfc4997eb5b82f386790824bac9110de5

1. **RASM Outlook**  
   **Q:** What's your visibility to second half RASM inflection?  
   **A:** We are ahead of our internal plan to achieve **flat RASM** for the year and expect **easier comps** as we move through the year.  **[DAL_3379703_10]**  Industry capacity seems to **peak in Q2**, setting up a great opportunity for the back half of the year.  **[DAL_3379703_10]**  Travel credit headwinds remain **consistent** throughout the year.  **[DAL_3379703_10]** 

2. **Capacity Growth Impact**  
   **Q:** How will capacity growth affect RASM domestically?  
   **A:** We're focusing on rebuilding our **core hubs**, where cost structure and profitability are highest.  **[DAL_3379703_19]**  Despite increasing domestic growth to **6–7%** this summer from about **2%** in Q1, we expect RASM to remain **flat**.  **[DAL_3379703_19]**  Adding seats to our core should positively impact revenues.  **[DAL_3379703_19]** 

3. **Cost Management**  
   **Q:** What's driving the low single-digit CASM growth outlook?  
   **A:** Running a **great operation** reduces frictional costs and enhances efficiency.  **[DAL_3379703_29]**  We're carrying headcount about **10% higher** than in 2019 and will grow into that for increased efficiency.  **[DAL_3379703_29]**  Maintenance costs are as expected, but supply chain constraints persist.  **[DAL_3379703_29]** 

4. **Premium Revenue Growth**  
   **Q:** How is premium revenue growth shaping up?  
   **A:** Premium revenue is up **10%**, driven equally by **volume and yield**  **[DAL_3379703_23]** **[DAL_3379703_17]** . We continue to expand premium offerings, with all domestic growth coming from premium products over the past **10 years**.  **[DAL_3379703_23]**  This strategy enhances our control over revenue compared to competing on commodity pricing.  **[DAL_3379703_26]** 

5. **Balance Sheet and Debt Reduction**  
   **Q:** When can you start using cash for CapEx or returns?  
   **A:** We're prioritizing debt reduction, as we still have more debt than desired.  **[DAL_3379703_12]**  By year's end, our leverage ratio should be close to **2019 levels**, considering the elimination of pension obligations.  **[DAL_3379703_12]**  We'll discuss more at our Investor Day in November.  **[DAL_3379703_12]** 

6. **Latin America Performance**  
   **Q:** How is Latin America performing, and what's the outlook?  
   **A:** South America performance is strong, with capacity up **30–40%** and minimal unit revenue degradation  **[DAL_3379703_20]** **[DAL_3379703_28]** . Our partnership with LATAM positions us as a leading carrier between the U.S. and South America.  **[DAL_3379703_20]**  Future focus will shift to **harvesting** profitability rather than investment.  **[DAL_3379703_28]** 

7. **Fleet Utilization Improvements**  
   **Q:** Can fleet utilization improve to pre-COVID levels?  
   **A:** Yes, we're improving asset utilization across all fleets.  **[DAL_3379703_25]**  Widebodies are now at or above **2019 utilization levels**.  **[DAL_3379703_25]**  Enhancing utilization is a key challenge we're excited to tackle.  **[DAL_3379703_25]** 

8. **Maintenance Expense Outlook**  
   **Q:** What's the outlook for maintenance expenses?  
   **A:** Maintenance is on plan, expected to be up **$350 million** year-over-year.  **[DAL_3379703_6]**  Investments have reduced cancellations from maintenance by **80%** year-over-year and improved **30%** sequentially.  **[DAL_3379703_6]**  The team is executing well, though supply chain issues persist.  **[DAL_3379703_6]** 

9. **FAA Oversight and Slot Waivers**  
   **Q:** What's your discussion with the FAA about regulatory oversight?  
   **A:** We're collaborating with the FAA on **staffing models** due to air traffic control shortages.  **[DAL_3379703_22]**  The industry has requested an extension of the **New York slot waiver** to mitigate these challenges.  **[DAL_3379703_22]**  We maintain a strong partnership with the FAA.  **[DAL_3379703_22]** 

10. **TechOps Advantage and MRO Business**  
    **Q:** How valuable is Delta TechOps as a competitive advantage?  
    **A:** Delta TechOps is a unique advantage, allowing us to **flexibly manage** our fleet.  **[DAL_3379703_30]**  We'll enter a period of **natural retirements**, reusing materials and enhancing efficiency.  **[DAL_3379703_30]**  The MRO business is poised for growth, ready to capture market opportunities.  **[DAL_3379703_30]** 

11. **Impact of Paris Olympics**  
    **Q:** Will the Paris Olympics benefit revenues?  
    **A:** Generally, the Olympics are **not beneficial** for airline revenues.  **[DAL_3379703_13]**  Business travel to Paris decreases as the event approaches, posing a **headwind** rather than a boost.  **[DAL_3379703_13]**  We remain excited as sponsor of Team USA.  **[DAL_3379703_13]** 

12. **AmEx Acceptance Improvement**  
    **Q:** Is AmEx card acceptance improving internationally?  
    **A:** American Express acceptance rates are at **all-time highs** domestically.  **[DAL_3379703_14]**  Efforts are underway to enhance international acceptance, focusing on popular destinations for U.S. travelers.  **[DAL_3379703_14]** 

cd1eab8968b88d7ea4116d32b7df9e201c8e008158193ff71337c3b2d89bb35d

Delta Air Lines Inc (DAL)

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