Delta Air Lines, Inc. (DAL) Bundle
A Brief History of Delta Air Lines
Company Overview
Delta Air Lines, Inc. is a major American airline, known for its extensive domestic and international flight network. As of 2024, Delta operates over 5,000 flights daily to more than 300 destinations in over 50 countries. The airline is headquartered in Atlanta, Georgia, and is a founding member of the SkyTeam airline alliance.
Financial Performance
For the nine months ended September 30, 2024, Delta reported total operating revenue of $46.1 billion, an increase from $43.8 billion in the same period of 2023. Operating income for this period was $4.3 billion, compared to $4.2 billion in 2023. The airline's net income for the same period was $2.6 billion, slightly up from $2.57 billion in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Operating Revenue | $46.1 billion | $43.8 billion |
| Operating Income | $4.3 billion | $4.2 billion |
| Net Income | $2.6 billion | $2.57 billion |
Stock Performance
As of September 30, 2024, Delta's stock price was approximately $54.87, up from $50.12 at the end of 2023. The company has a market capitalization of around $34.5 billion. Delta has consistently paid dividends, with a quarterly dividend of $0.15 per share declared in September 2024, reflecting its commitment to returning value to shareholders.
Operational Highlights
Delta's total operating expenses for the nine months ended September 30, 2024, were $41.8 billion, compared to $39.6 billion in 2023. Fuel expenses represented approximately 20% of total operating expenses, amounting to $8.16 billion for the first nine months of 2024.
| Operating Expense Category | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Salaries and Related Costs | $12.04 billion | $10.84 billion |
| Aircraft Fuel and Related Taxes | $8.16 billion | $8.13 billion |
| Contracted Services | $3.13 billion | $3.01 billion |
| Landing Fees and Other Rents | $2.35 billion | $1.88 billion |
| Total Operating Expense | $41.8 billion | $39.6 billion |
Future Commitments and Investments
As of September 30, 2024, Delta had future aircraft purchase commitments totaling approximately $19 billion. The company plans to invest heavily in fleet modernization and technology enhancements, with expected capital expenditures of about $5 billion in 2024.
Market Position
Delta remains one of the largest airlines in the world by revenue passenger kilometers. The airline's strategy focuses on enhancing customer experience, expanding its global network, and maintaining operational efficiency to drive profitability.
A Who Owns Delta Air Lines, Inc. (DAL)
Major Shareholders
As of 2024, Delta Air Lines, Inc. (DAL) has a diverse shareholder base consisting of institutional investors, mutual funds, and individual shareholders. The following table summarizes the largest shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned (in millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.20% | 54.00 |
| BlackRock, Inc. | 7.90% | 52.00 |
| State Street Corporation | 5.80% | 38.00 |
| Wellington Management Company, LLP | 5.50% | 36.00 |
| Fidelity Investments | 4.50% | 29.00 |
| Other Institutional Investors | 58.10% | 380.00 |
| Individual Investors | 10.00% | 65.00 |
Stock Performance
As of September 30, 2024, Delta Air Lines (DAL) has shown significant stock performance metrics:
- Current Stock Price: $45.00
- Market Capitalization: $29.5 billion
- 52-Week High: $54.00
- 52-Week Low: $33.00
Equity Investments
Delta Air Lines holds several strategic equity investments in other airlines and related companies. The following table provides details on these investments:
| Company | Ownership Percentage | Carrying Value (in millions) |
|---|---|---|
| Air France-KLM | 3% | $74 |
| China Eastern Airlines | 2% | $143 |
| Grupo Aeroméxico | 20% | $426 |
| Hanjin KAL | 15% | $624 |
| LATAM Airlines | 10% | $782 |
| Wheels Up | 38% | $637 |
Debt and Financial Obligations
As of September 30, 2024, Delta's total outstanding debt was approximately $16.6 billion. The breakdown of this debt is as follows:
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| Unsecured Payroll Support Program Loans | $3,496 | 2030 to 2031 |
| Unsecured Notes | $2,575 | 2024 to 2029 |
| SkyMiles Notes | $4,107 | 2024 to 2028 |
| SkyMiles Term Loan | $850 | 2024 to 2027 |
| Senior Secured Notes | $812 | 2025 |
| Other Financings | $66 | 2025 to 2026 |
Recent Financial Highlights
For the nine months ending September 30, 2024, Delta reported:
- Net Income: $2.614 billion
- Operating Revenue: $46.084 billion
- Operating Income: $4.278 billion
- Basic Earnings Per Share: $4.08
- Diluted Earnings Per Share: $4.04
Dividend Payments
Delta Air Lines has a history of returning capital to shareholders through dividends. In 2024, the company declared cash dividends totaling:
- Total Cash Dividends Paid: $225 million
- Dividend per Share: $0.15
Delta Air Lines, Inc. (DAL) Mission Statement
Delta Air Lines, Inc. aims to be the world's most trusted airline. The company is committed to delivering the highest quality of service to its customers, enhancing the travel experience, and ensuring safety and reliability. Delta focuses on sustainability and innovation, striving to maintain leadership in the airline industry while creating value for shareholders and communities.
Financial Overview
As of September 30, 2024, Delta Air Lines reported the following financial metrics:
| Category | Value (in millions) |
|---|---|
| Total Operating Revenue | $15,677 |
| Passenger Revenue | $13,107 |
| Cargo Revenue | $196 |
| Other Revenue | $2,374 |
| Total Operating Expense | $14,280 |
| Operating Income | $1,397 |
| Net Income | $1,272 |
| Basic Earnings Per Share | $1.98 |
| Diluted Earnings Per Share | $1.97 |
| Cash Flow from Operations | $1,300 |
| Capital Expenditures | $1,328 |
Operational Highlights
Delta Air Lines' operational performance metrics as of September 30, 2024, are as follows:
| Metric | Value |
|---|---|
| Revenue Passenger Miles (RPMs) | 66,310 million |
| Available Seat Miles (ASMs) | 76,162 million |
| Passenger Load Factor | 87% |
| Average Price per Fuel Gallon | $2.51 |
| Fuel Gallons Consumed | 1,096 million |
Market Position and Strategy
Delta Air Lines continues to strengthen its market position through strategic partnerships and investments in technology. The company has made significant commitments to sustainability, including carbon neutrality initiatives and fleet modernization. Key partnerships, particularly with American Express, enhance customer loyalty through the SkyMiles program, which generated $5.5 billion in cash sales in the first nine months of 2024.
Debt and Financial Obligations
As of September 30, 2024, Delta's debt obligations are as follows:
| Debt Type | Amount (in millions) | Maturity |
|---|---|---|
| Unsecured Payroll Support Program Loans | $3,496 | 2030 to 2031 |
| Unsecured Notes | $2,575 | 2024 to 2029 |
| SkyMiles Notes | $4,107 | 2024 to 2028 |
| SkyMiles Term Loan | $850 | 2024 to 2027 |
Employee Engagement and Profit Sharing
Delta Air Lines has demonstrated a strong commitment to its employees through a profit-sharing program that paid out $1.4 billion in February 2024, recognizing employee contributions to the company's financial performance. For the nine months ended September 30, 2024, the accrued profit-sharing expense was $964 million.
Future Outlook
For the remainder of 2024, Delta Air Lines anticipates continued growth driven by increasing travel demand and capacity expansion. The company expects capital expenditures to be approximately $5.0 billion, primarily for aircraft purchases and fleet enhancements.
| Future Commitments | Amount (in millions) |
|---|---|
| Aircraft Purchase Commitments | $19,030 |
| Expected 2024 Capital Expenditures | $5,000 |
How Delta Air Lines, Inc. (DAL) Works
Business Model
Delta Air Lines, Inc. operates as a major airline, providing passenger and cargo transportation services globally. The company generates revenue primarily through ticket sales, cargo services, and ancillary services such as baggage fees and in-flight sales. In 2024, Delta reported total operating revenue of $46.08 billion for the nine months ended September 30, 2024, marking a 5% increase from the prior year .
Revenue Breakdown
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Passenger Revenue | $13,107 | $13,119 | —% |
| Cargo | $196 | $154 | 27% |
| Other Revenue | $2,374 | $2,215 | 7% |
| Total Operating Revenue | $15,677 | $15,488 | 1% |
Operational Performance
In the September 2024 quarter, Delta's operating income was $1.4 billion, a decrease of $587 million compared to the same quarter in 2023. The decrease was influenced by a CrowdStrike-caused outage that impacted operations, leading to approximately $380 million in lost revenue due to flight cancellations .
Cost Structure
| Cost Component | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Salaries and Related Costs | $4,231 | $3,760 | 13% |
| Aircraft Fuel and Related Taxes | $2,747 | $2,936 | (6%) |
| Total Operating Expense | $14,280 | $13,504 | 6% |
Fleet Information
As of September 30, 2024, Delta operates a diverse fleet consisting of 655 aircraft with various types and ages. The average age of the fleet is approximately 15 years .
| Aircraft Type | Owned | Finance Lease | Operating Lease | Total | Average Age (Years) |
|---|---|---|---|---|---|
| A220-100 | 45 | — | — | 45 | 4.8 |
| A321-200neo | 64 | — | — | 64 | 1.3 |
| B-737-900ER | 114 | — | 49 | 163 | 8.7 |
| Total Fleet | 655 | — | — | 655 | 15 |
Financial Condition
As of September 30, 2024, Delta had a liquidity position of $6.9 billion, which includes cash, cash equivalents, and short-term investments. The company anticipates continued positive cash flows from operations .
Debt Obligations
| Debt Category | Amount (in millions) | Maturity Date | Interest Rate (%) |
|---|---|---|---|
| Unsecured Notes | $2,575 | 2024 to 2029 | 2.90% to 7.38% |
| SkyMiles Notes | $4,107 | 2024 to 2028 | 4.50% to 4.75% |
| Total Debt | $10,000+ | Various | — |
Market Position
Delta continues to maintain a strong position in the airline industry, benefiting from a broad network and partnerships, including a significant relationship with American Express, which contributed $5.4 billion in cash sales in the nine months ended September 30, 2024 .
How Delta Air Lines, Inc. (DAL) Makes Money
Revenue Sources
Delta Air Lines generates revenue primarily through the following channels:
- Passenger Revenue: This includes ticket sales from both main cabin and premium products.
- Loyalty Program: Revenue from the SkyMiles loyalty program, including miles sold to partners.
- Refinery Operations: Income from sales of refined products and jet fuel.
- Ancillary Services: Revenue from additional services such as baggage fees and on-board sales.
Passenger Revenue Breakdown
For the nine months ended September 30, 2024, Delta's passenger revenue was segmented as follows:
| Revenue Type | Amount (in millions) | Year-over-Year Change |
|---|---|---|
| Main Cabin Tickets | $18,450 | -0.5% |
| Premium Products | $15,377 | +8% |
| Loyalty Travel Awards | $2,798 | +10% |
| Travel-Related Services | $1,454 | +5% |
| Passenger Revenue Total | $38,079 | +4% |
Ancillary and Other Revenue
Other revenue streams for Delta include:
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-over-Year Change |
|---|---|---|---|
| Refinery Sales | $1,083 | $935 | +16% |
| Loyalty Program | $820 | $791 | +4% |
| Ancillary Businesses | $161 | $212 | -24% |
| Miscellaneous | $310 | $277 | +12% |
| Total Other Revenue | $2,374 | $2,215 | +7% |
Operating Expenses
Delta's key operating expenses for the nine months ended September 30, 2024, are as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Salaries and Related Costs | $4,231 |
| Aircraft Fuel and Related Taxes | $2,747 |
| Ancillary Businesses and Refinery | $1,250 |
| Contracted Services | $1,069 |
| Landing Fees and Other Rents | $832 |
| Total Operating Expense | $14,280 |
Financial Performance
Delta's financial performance metrics for the nine months ended September 30, 2024, include:
| Metric | Value |
|---|---|
| Operating Revenue | $46,084 million |
| Net Income | $2,614 million |
| Basic Earnings Per Share | $4.08 |
| Diluted Earnings Per Share | $4.04 |
Refinery Operations
Delta's refinery operations are significant, providing approximately 200,000 barrels of jet fuel per day, which meets about 75% of its consumption needs. For the nine months ended September 30, 2024, the refinery segment generated:
| Metric | Value (in millions) |
|---|---|
| Sales to Airline Segment | $1,147 |
| Third Party Refinery Sales | $3,520 |
Market Dynamics
Delta's operations are influenced by various market factors including fuel prices, capacity growth, and travel demand. The average price per gallon of fuel in Q3 2024 was:
| Metric | Price |
|---|---|
| Average Price per Gallon | $2.51 |
Delta Air Lines, Inc. (DAL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Delta Air Lines, Inc. (DAL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Delta Air Lines, Inc. (DAL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Delta Air Lines, Inc. (DAL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.