QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Or | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | Emerging growth company |
Table of Contents | |||||
Page | |||||
/s/ Ernst & Young LLP | |||||
Atlanta, Georgia | |||||
April 13, 2022 |
(in millions, except share data) | March 31, 2022 | December 31, 2021 | |||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, net of allowance for uncollectible accounts of $ | |||||||||||
Fuel, expendable parts and supplies inventories, net of allowance for obsolescence of $ | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
Noncurrent Assets: | |||||||||||
Property and equipment, net of accumulated depreciation and amortization of $ | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Identifiable intangibles, net of accumulated amortization of $ | |||||||||||
Equity investments | |||||||||||
Deferred income taxes, net | |||||||||||
Other noncurrent assets | |||||||||||
Total noncurrent 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 | |||||||||||
Noncurrent air traffic liability | |||||||||||
Pension, postretirement and related benefits | |||||||||||
Loyalty program deferred revenue | |||||||||||
Noncurrent operating leases | |||||||||||
Other noncurrent liabilities | |||||||||||
Total noncurrent liabilities | |||||||||||
Commitments and Contingencies | |||||||||||
Stockholders' Equity: | |||||||||||
Common stock at $ shares issued | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ | |||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. |
Three Months Ended March 31, | |||||||||||
(in millions, except per share data) | 2022 | 2021 | |||||||||
Operating Revenue: | |||||||||||
Passenger | $ | $ | |||||||||
Cargo | |||||||||||
Other | |||||||||||
Total operating revenue | |||||||||||
Operating Expense: | |||||||||||
Salaries and related costs | |||||||||||
Aircraft fuel and related taxes | |||||||||||
Ancillary businesses and refinery | |||||||||||
Contracted services | |||||||||||
Depreciation and amortization | |||||||||||
Landing fees and other rents | |||||||||||
Regional carrier expense | |||||||||||
Aircraft maintenance materials and outside repairs | |||||||||||
Passenger commissions and other selling expenses | |||||||||||
Passenger service | |||||||||||
Aircraft rent | |||||||||||
Restructuring charges | ( | ( | |||||||||
Government grant recognition | ( | ||||||||||
Other | |||||||||||
Total operating expense | |||||||||||
Operating Loss | ( | ( | |||||||||
Non-Operating Expense: | |||||||||||
Interest expense, net | ( | ( | |||||||||
Equity method results | ( | ||||||||||
Gain/(loss) on investments, net | ( | ||||||||||
Loss on extinguishment of debt | ( | ( | |||||||||
Pension and related benefit/(expense) | |||||||||||
Miscellaneous, net | ( | ( | |||||||||
Total non-operating expense, net | ( | ( | |||||||||
Loss Before Income Taxes | ( | ( | |||||||||
Income Tax Benefit | |||||||||||
Net Loss | $ | ( | $ | ( | |||||||
Basic Loss Per Share | $ | ( | $ | ( | |||||||
Diluted Loss Per Share | $ | ( | $ | ( | |||||||
Cash Dividends Declared Per Share | $ | $ | |||||||||
Comprehensive Loss | $ | ( | $ | ( | |||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. |
Three Months Ended March 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
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 | ( | ( | |||||||||
Purchase of short-term investments | ( | ( | |||||||||
Redemption of short-term investments | |||||||||||
Purchase of equity investments | ( | ||||||||||
Other, net | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Proceeds from long-term obligations | |||||||||||
Payments on debt and finance lease obligations | ( | ( | |||||||||
Other, net | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net Decrease 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 | $ | $ | |||||||||
Non-Cash Transactions: | |||||||||||
Flight and ground equipment acquired under finance leases | $ | $ | |||||||||
Right-of-use assets acquired under operating leases | |||||||||||
Equity investments and other financings | |||||||||||
The following table provides a reconciliation of cash, cash equivalents and restricted cash equivalents reported within the Consolidated Balance Sheets to the total of the same such amounts shown above: | |||||||||||
March 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash included in prepaid expenses and other | |||||||||||
Noncurrent assets: | |||||||||||
Restricted cash included in other noncurrent assets | |||||||||||
Total cash, cash equivalents and restricted cash equivalents | $ | $ | |||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. |
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | ||||||||||||||||||||||
(in millions, except per share data) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Common stock issued for employee equity awards(1) | — | — | — | ( | ( | |||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | ||||||||||||||||||||||
(in millions, except per share data) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Common stock issued for employee equity awards(1) | — | — | — | ( | ||||||||||||||||||||||
Government grant warrant issuance | — | — | — | — | — | — | ||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2022 | 2021 | ||||||
Ticket | $ | $ | ||||||
Loyalty travel awards | ||||||||
Travel-related services | ||||||||
Total passenger revenue | $ | $ |
Loyalty program activity | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Balance at January 1 | $ | $ | |||||||||
Miles earned | |||||||||||
Miles redeemed for air travel | ( | ( | |||||||||
Miles redeemed for non-air travel and other | ( | ( | |||||||||
Balance at March 31 | $ | $ |
Three Months Ended March 31, | ||||||||
(in millions) | 2022 | 2021 | ||||||
Refinery | $ | $ | ||||||
Loyalty program | ||||||||
Ancillary businesses | ||||||||
Miscellaneous | ||||||||
Total other revenue | $ | $ |
Passenger revenue by geographic region | ||||||||
Passenger Revenue | ||||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2022 | 2021 | ||||||
Domestic | $ | $ | ||||||
Atlantic | ||||||||
Latin America | ||||||||
Pacific | ||||||||
Total | $ | $ |
Operating revenue by geographic region | ||||||||
Operating Revenue | ||||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2022 | 2021 | ||||||
Domestic | $ | $ | ||||||
Atlantic | ||||||||
Latin America | ||||||||
Pacific | ||||||||
Total | $ | $ |
(in millions) | March 31, 2022 | Level 1 | Level 2 | Level 3 | ||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||
Restricted cash equivalents | ||||||||||||||
Short-term investments | ||||||||||||||
Long-term investments | ||||||||||||||
Fuel hedge contracts | ( | ( | ||||||||||||
(in millions) | December 31, 2021 | Level 1 | Level 2 | Level 3 | ||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||
Restricted cash equivalents | ||||||||||||||
Short-term investments | ||||||||||||||
Long-term investments | ||||||||||||||
Fuel hedge contracts | ( | ( | ||||||||||||
Equity investments ownership interest and carrying value | |||||||||||||||||||||||
Accounting Treatment | Ownership Interest | Carrying Value | |||||||||||||||||||||
(in millions) | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||
Air France-KLM | Fair Value | % | % | $ | $ | ||||||||||||||||||
China Eastern | Fair Value | % | % | ||||||||||||||||||||
CLEAR | Fair Value | % | % | ||||||||||||||||||||
Grupo Aeroméxico | Equity Method(1) | % | % | ||||||||||||||||||||
Hanjin-KAL | Fair Value | % | % | ||||||||||||||||||||
Unifi Aviation | Equity Method(2) | % | % | ||||||||||||||||||||
Wheels Up | Fair Value(3) | % | % | ||||||||||||||||||||
Other investments | Various | ||||||||||||||||||||||
Equity investments | $ | $ |
Summary of outstanding debt by category | ||||||||||||||||||||||||||
Maturity | Interest Rate(s) Per Annum at | March 31, | December 31, | |||||||||||||||||||||||
(in millions) | Dates | March 31, 2022 | 2022 | 2021 | ||||||||||||||||||||||
Unsecured Payroll Support Program Loans | 2030 | to | 2031 | $ | $ | |||||||||||||||||||||
Unsecured notes | 2023 | to | 2029 | to | ||||||||||||||||||||||
Financing arrangements secured by SkyMiles assets: | ||||||||||||||||||||||||||
SkyMiles Notes(1) | 2023 | to | 2028 | and | ||||||||||||||||||||||
SkyMiles Term Loan(1)(2) | 2023 | to | 2027 | |||||||||||||||||||||||
Financing arrangements secured by slots, gates and/or routes: | ||||||||||||||||||||||||||
2020 Senior Secured Notes | 2025 | |||||||||||||||||||||||||
2018 Revolving Credit Facility(2) | 2023 | to | 2024 | Undrawn | ||||||||||||||||||||||
Financing arrangements secured by aircraft: | ||||||||||||||||||||||||||
Certificates(1) | 2022 | to | 2028 | to | ||||||||||||||||||||||
Notes(1)(2) | 2022 | to | 2033 | to | ||||||||||||||||||||||
NYTDC Special Facilities Revenue Bonds(1) | 2023 | to | 2045 | to | ||||||||||||||||||||||
Other financings(1)(2) | 2022 | to | 2030 | to | ||||||||||||||||||||||
Other revolving credit facilities(2) | 2022 | to | 2024 | Undrawn | ||||||||||||||||||||||
Total secured and unsecured debt | ||||||||||||||||||||||||||
Unamortized (discount)/premium and debt issue cost, net and other | ( | ( | ||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Less: current maturities | ( | ( | ||||||||||||||||||||||||
Total long-term debt | $ | $ |
Fair value of outstanding debt | ||||||||
(in millions) | March 31, 2022 | December 31, 2021 | ||||||
Net carrying amount | $ | $ | ||||||
Fair value | $ | $ |
Employee benefit plans net periodic (benefit) cost | |||||||||||||||||
Pension Benefits | Other Postretirement and Postemployment Benefits | ||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Three Months Ended March 31, | |||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||
Amortization of prior service credit | ( | ( | |||||||||||||||
Recognized net actuarial loss | |||||||||||||||||
Net periodic (benefit) cost | $ | ( | $ | ( | $ | $ | |||||||||||
Aircraft purchase commitments | |||||
(in millions) | Total | ||||
Nine months ending December 31, 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Aircraft purchase commitments by fleet type | |||||
Aircraft Type | Purchase Commitments | ||||
A220-300 | |||||
A321-200neo | |||||
A330-900neo | |||||
A350-900 | |||||
B-737-900ER | |||||
CRJ-900 | |||||
Total |
Components of accumulated other comprehensive loss | |||||||||||
(in millions) | Pension and Other Benefit Liabilities | Other | Total | ||||||||
Balance at January 1, 2022 (net of tax effect of $ | $ | ( | $ | $ | ( | ||||||
Reclassifications into earnings (net of tax effect of $ | |||||||||||
Balance at March 31, 2022 (net of tax effect of $ | $ | ( | $ | $ | ( |
Balance at January 1, 2021 (net of tax effect of $ | $ | ( | $ | $ | ( | ||||||
Reclassifications into earnings (net of tax effect of $ | |||||||||||
Balance at March 31, 2021 (net of tax effect of $ | $ | ( | $ | $ | ( |
Financial information by segment | ||||||||||||||||||||
(in millions) | Airline | Refinery | Intersegment Sales/Other | Consolidated | ||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Operating revenue: | $ | $ | $ | |||||||||||||||||
Sales to airline segment | $ | ( | (1) | |||||||||||||||||
Exchanged products | ( | (2) | ||||||||||||||||||
Sales of refined products | ( | (3) | ||||||||||||||||||
Operating (loss)/income | ( | ( | ||||||||||||||||||
Interest expense, net | ( | |||||||||||||||||||
Depreciation and amortization | ( | (4) | ||||||||||||||||||
Total assets, end of period | ( | |||||||||||||||||||
Net fair value obligations, end of period | ( | ( | ||||||||||||||||||
Capital expenditures | ||||||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Operating revenue: | $ | $ | $ | |||||||||||||||||
Sales to airline segment | $ | (1) | ||||||||||||||||||
Exchanged products | ( | (2) | ||||||||||||||||||
Sales of refined products | ( | (3) | ||||||||||||||||||
Operating loss | ( | ( | ( | |||||||||||||||||
Interest expense, net | ( | |||||||||||||||||||
Depreciation and amortization | ( | (4) | ||||||||||||||||||
Total assets, end of period | ( | |||||||||||||||||||
Net fair value obligations, end of period | ( | ( | ||||||||||||||||||
Capital expenditures |
Basic and diluted loss per share | ||||||||
Three Months Ended March 31, | ||||||||
(in millions, except per share data) | 2022 | 2021 | ||||||
Net loss | $ | ( | $ | ( | ||||
Basic weighted average shares outstanding | ||||||||
Dilutive effect of share-based awards | ||||||||
Diluted weighted average shares outstanding | ||||||||
Basic loss per share | $ | ( | $ | ( | ||||
Diluted loss per share | $ | ( | $ | ( |
Three Months Ended March 31, | 2022 vs. 2021 % Increase (Decrease) (1) | 2022 vs. 2019 % Increase (Decrease) (1) | |||||||||||||||||||||
(in millions) | 2022 | 2021 | 2019 | ||||||||||||||||||||
Total operating revenue | $ | 9,348 | $ | 4,150 | $ | 10,472 | 125 | % | (11) | % | |||||||||||||
Total operating expense | 10,131 | 5,548 | 9,452 | 83 | % | 7 | % | ||||||||||||||||
Operating (loss)/income | (783) | (1,398) | 1,020 | (44) | % | NM | |||||||||||||||||
Available seat miles ("ASM") | 51,810 | 40,118 | 62,416 | 29 | % | (17) | % |
Three Months Ended March 31, | Increase (Decrease) | % Increase (Decrease) | ||||||||||||
(in millions)(1) | 2022 | 2021 | ||||||||||||
Ticket - Main cabin | $ | 3,448 | $ | 1,353 | $ | 2,095 | 155 | % | ||||||
Ticket - Premium products | 2,538 | 924 | 1,614 | 175 | % | |||||||||
Loyalty travel awards | 543 | 241 | 302 | 125 | % | |||||||||
Travel-related services | 378 | 230 | 148 | 64 | % | |||||||||
Total passenger revenue | $ | 6,907 | $ | 2,748 | $ | 4,159 | 151 | % | ||||||
Cargo | 289 | 215 | 74 | 34 | % | |||||||||
Other | 2,152 | 1,187 | 965 | 81 | % | |||||||||
Total operating revenue | $ | 9,348 | $ | 4,150 | $ | 5,198 | 125 | % | ||||||
TRASM (cents) | 18.04 | ¢ | 10.34 | ¢ | 7.70 | ¢ | 74 | % | ||||||
Third-party refinery sales | (2.29) | (1.35) | (0.94) | 70 | % | |||||||||
TRASM, adjusted(2) | 15.75 | ¢ | 9.00 | ¢ | 6.75 | ¢ | 75 | % |
Increase (Decrease) vs. Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2022 | Passenger Revenue | RPMs (Traffic) | ASMs (Capacity) | Passenger Mile Yield | PRASM | Load Factor | |||||||||||||||||||
Domestic | $ | 5,563 | 144 | % | 105 | % | 29 | % | 19 | % | 90 | % | 29 | pts | ||||||||||||
Atlantic | 539 | 281 | % | 320 | % | 108 | % | (9) | % | 83 | % | 33 | pts | |||||||||||||
Latin America | 680 | 158 | % | 93 | % | (1) | % | 33 | % | 160 | % | 38 | pts | |||||||||||||
Pacific | 125 | 100 | % | 106 | % | 3 | % | (3) | % | 95 | % | 17 | pts | |||||||||||||
Total | $ | 6,907 | 151 | % | 116 | % | 29 | % | 17 | % | 95 | % | 30 | pts |
Three Months Ended March 31, | Increase (Decrease) | % Increase (Decrease) | ||||||||||||
(in millions) | 2022 | 2021 | ||||||||||||
Refinery | $ | 1,187 | $ | 540 | $ | 647 | 120 | % | ||||||
Loyalty program | 571 | 368 | 203 | 55 | % | |||||||||
Ancillary businesses | 209 | 186 | 23 | 12 | % | |||||||||
Miscellaneous | 185 | 93 | 92 | 99 | % | |||||||||
Total other revenue | $ | 2,152 | $ | 1,187 | $ | 965 | 81 | % | ||||||
Three Months Ended March 31, | Increase (Decrease) | % Increase (Decrease) | ||||||||||||
(in millions) | 2022 | 2021 | ||||||||||||
Salaries and related costs | $ | 2,826 | $ | 2,202 | $ | 624 | 28 | % | ||||||
Aircraft fuel and related taxes | 2,092 | 1,017 | 1,075 | 106 | % | |||||||||
Ancillary businesses and refinery | 1,382 | 706 | 676 | 96 | % | |||||||||
Contracted services | 753 | 519 | 234 | 45 | % | |||||||||
Depreciation and amortization | 506 | 492 | 14 | 3 | % | |||||||||
Landing fees and other rents | 504 | 493 | 11 | 2 | % | |||||||||
Regional carrier expense | 491 | 401 | 90 | 22 | % | |||||||||
Aircraft maintenance materials and outside repairs | 465 | 294 | 171 | 58 | % | |||||||||
Passenger commissions and other selling expenses | 312 | 110 | 202 | 184 | % | |||||||||
Passenger service | 275 | 118 | 157 | 133 | % | |||||||||
Aircraft rent | 122 | 104 | 18 | 17 | % | |||||||||
Restructuring charges | (5) | (44) | 39 | (89) | % | |||||||||
Government grant recognition | — | (1,186) | 1,186 | (100) | % | |||||||||
Other | 408 | 322 | 86 | 27 | % | |||||||||
Total operating expense | $ | 10,131 | $ | 5,548 | $ | 4,583 | 83 | % |
Fuel expense and average price per gallon | ||||||||||||||||||||
Average Price Per Gallon | ||||||||||||||||||||
Three Months Ended March 31, | Increase (Decrease) | Three Months Ended March 31, | Increase (Decrease) | |||||||||||||||||
(in millions, except per gallon data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Fuel purchase cost(1) | $ | 2,102 | $ | 895 | $ | 1,207 | $ | 2.81 | $ | 1.64 | $ | 1.17 | ||||||||
Carbon offset costs | 47 | 20 | 27 | 0.06 | 0.04 | 0.02 | ||||||||||||||
Fuel hedge impact | (4) | (23) | 19 | (0.01) | (0.04) | 0.03 | ||||||||||||||
Refinery segment impact | (53) | 125 | (178) | (0.07) | 0.23 | (0.30) | ||||||||||||||
Total fuel expense | $ | 2,092 | $ | 1,017 | $ | 1,075 | $ | 2.79 | $ | 1.87 | $ | 0.92 |
Three Months Ended March 31, | |||||||||||
(in millions) | 2022 | 2021 | Favorable (Unfavorable) | ||||||||
Interest expense, net | $ | (274) | $ | (361) | $ | 87 | |||||
Equity method results | — | (54) | 54 | ||||||||
Gain/(loss) on investments, net | (147) | 262 | (409) | ||||||||
Loss on extinguishment of debt | (25) | (56) | 31 | ||||||||
Pension and related benefit/(expense) | 73 | 107 | (34) | ||||||||
Miscellaneous, net | (44) | (15) | (29) | ||||||||
Total non-operating expense, net | $ | (417) | $ | (117) | $ | (300) |
Refinery segment financial information | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(in millions, except per gallon data) | 2022 | 2021 | Increase (Decrease) | % Increase (Decrease) | ||||||||||
Exchange products | $ | 809 | $ | 503 | $ | 306 | 61 | % | ||||||
Sales of refined products | 26 | 4 | 22 | NM | ||||||||||
Sales to airline segment | 291 | — | 291 | NM | ||||||||||
Third party refinery sales | 1,187 | 540 | 647 | 120 | % | |||||||||
Operating revenue | $ | 2,313 | $ | 1,047 | $ | 1,266 | 121 | % | ||||||
Operating income/(loss) | $ | 53 | $ | (125) | $ | 178 | NM | |||||||
Refinery segment impact on airline average price per fuel gallon | $ | (0.07) | $ | 0.23 | $ | (0.30) | NM |
Three Months Ended March 31, | 2022 vs. 2021 Increase (Decrease) | 2022 vs. 2019 Increase (Decrease) | |||||||||||||||||||||
Consolidated(1) | 2022 | 2021 | 2019 | ||||||||||||||||||||
Revenue passenger miles (in millions) ("RPM") | 38,700 | 17,948 | 51,617 | 116 | % | (25) | % | ||||||||||||||||
Available seat miles (in millions) ("ASM") | 51,810 | 40,118 | 62,416 | 29 | % | (17) | % | ||||||||||||||||
Passenger mile yield | 17.85 | ¢ | 15.31 | ¢ | 17.93 | ¢ | 17 | % | — | % | |||||||||||||
Passenger revenue per available seat mile ("PRASM") | 13.33 | ¢ | 6.85 | ¢ | 14.83 | ¢ | 95 | % | (10) | % | |||||||||||||
Total revenue per available seat mile ("TRASM") | 18.04 | ¢ | 10.34 | ¢ | 16.78 | ¢ | 74 | % | 8 | % | |||||||||||||
TRASM, adjusted(2) | 15.75 | ¢ | 9.00 | ¢ | 16.63 | ¢ | 75 | % | (5) | % | |||||||||||||
Cost per available seat mile ("CASM") | 19.56 | ¢ | 13.83 | ¢ | 15.14 | ¢ | 41 | % | 29 | % | |||||||||||||
CASM-Ex(2) | 13.24 | ¢ | 13.01 | ¢ | 11.49 | ¢ | 2 | % | 15 | % | |||||||||||||
Passenger load factor | 75 | % | 45 | % | 83 | % | 30 | pts | (8) | pts | |||||||||||||
Fuel gallons consumed (in millions) | 751 | 545 | 962 | 38 | % | (22) | % | ||||||||||||||||
Average price per fuel gallon(3) | $ | 2.79 | $ | 1.87 | $ | 2.06 | 49 | % | 35 | % | |||||||||||||
Average price per fuel gallon, adjusted(2)(3) | $ | 2.79 | $ | 1.91 | $ | 2.04 | 46 | % | 37 | % |
Mainline aircraft information by fleet type | ||||||||||||||||||||||||||
Current Fleet(1) | Commitments | |||||||||||||||||||||||||
Fleet Type | Owned | Finance Lease | Operating Lease | Total | Average Age (Years) | Purchase | Options | |||||||||||||||||||
A220-100 | 41 | 4 | — | 45 | 2.3 | |||||||||||||||||||||
A220-300 | 10 | — | — | 10 | 1.2 | 40 | 50 | |||||||||||||||||||
A319-100 | 55 | 2 | — | 57 | 20.1 | |||||||||||||||||||||
A320-200 | 56 | — | — | 56 | 26.2 | |||||||||||||||||||||
A321-200 | 69 | 22 | 36 | 127 | 3.3 | |||||||||||||||||||||
A321-200neo | 1 | — | — | 1 | — | 154 | 70 | |||||||||||||||||||
A330-200 | 11 | — | — | 11 | 17.0 | |||||||||||||||||||||
A330-300 | 28 | — | 3 | 31 | 13.2 | |||||||||||||||||||||
A330-900neo | 6 | 3 | 5 | 14 | 1.5 | 23 | ||||||||||||||||||||
A350-900 | 15 | — | 11 | 26 | 3.6 | 18 | ||||||||||||||||||||
B-717-200 | 10 | 46 | 4 | 60 | 20.7 | |||||||||||||||||||||
B-737-800 | 73 | 4 | — | 77 | 20.6 | |||||||||||||||||||||
B-737-900ER | 104 | 1 | 49 | 154 | 6.1 | 5 | ||||||||||||||||||||
B-757-200 | 100 | — | — | 100 | 24.6 | |||||||||||||||||||||
B-757-300 | 16 | — | — | 16 | 19.1 | |||||||||||||||||||||
B-767-300ER | 41 | — | — | 41 | 25.6 | |||||||||||||||||||||
B-767-400ER | 21 | — | — | 21 | 21.3 | |||||||||||||||||||||
Total | 657 | 82 | 108 | 847 | 14.0 | 240 | 120 |
Regional aircraft information by fleet type and carrier | ||||||||||||||||||||
Fleet Type(1) | ||||||||||||||||||||
Carrier | CRJ-200 | CRJ-700 | CRJ-900 | Embraer 170 | Embraer 175 | Total | ||||||||||||||
Endeavor Air, Inc.(2) | 51 | 18 | 124 | — | — | 193 | ||||||||||||||
SkyWest Airlines, Inc. | 9 | 6 | 44 | — | 71 | 130 | ||||||||||||||
Republic Airways, Inc. | — | — | — | 11 | 46 | 57 | ||||||||||||||
Total | 60 | 24 | 168 | 11 | 117 | 380 |
Operating expense, adjusted reconciliation | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(in millions) | 2022 | 2021 | 2019 | |||||||||||
Operating expense | $ | 10,131 | $ | 5,548 | $ | 9,452 | ||||||||
Adjusted for: | ||||||||||||||
Restructuring charges | 5 | 44 | — | |||||||||||
Government grant recognition | — | 1,186 | — | |||||||||||
MTM adjustments and settlements on hedges | 4 | 23 | (8) | |||||||||||
Third-party refinery sales | (1,187) | (540) | (48) | |||||||||||
Delta Private Jets adjustment | — | — | (42) | |||||||||||
Operating expense, adjusted | $ | 8,954 | $ | 6,261 | $ | 9,354 | ||||||||
Fuel expense, adjusted reconciliation | ||||||||||||||||||||
Average Price Per Gallon | ||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||
(in millions, except per gallon data) | 2022 | 2021 | 2019 | 2022 | 2021 | 2019 | ||||||||||||||
Total fuel expense | $ | 2,092 | $ | 1,017 | $ | 1,978 | $ | 2.79 | $ | 1.87 | $ | 2.06 | ||||||||
Adjusted for: | ||||||||||||||||||||
MTM adjustments and settlements on hedges | 4 | 23 | (8) | 0.01 | 0.04 | (0.01) | ||||||||||||||
Delta Private Jets adjustment | — | — | (7) | — | — | (0.01) | ||||||||||||||
Total fuel expense, adjusted | $ | 2,097 | $ | 1,040 | $ | 1,963 | $ | 2.79 | $ | 1.91 | $ | 2.04 |
TRASM, adjusted reconciliation | |||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | 2019 | |||||||||
TRASM (cents) | 18.04 | ¢ | 10.34 | ¢ | 16.78 | ¢ | |||||
Adjusted for: | |||||||||||
Third-party refinery sales | (2.29) | (1.35) | (0.08) | ||||||||
Delta Private Jets adjustment | — | — | (0.07) | ||||||||
TRASM, adjusted | 15.75 | ¢ | 9.00 | ¢ | 16.63 | ¢ |
CASM-Ex reconciliation | |||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | 2019 | |||||||||
CASM (cents) | 19.56 | ¢ | 13.83 | ¢ | 15.14 | ¢ | |||||
Adjusted for: | |||||||||||
Restructuring charges | 0.01 | 0.11 | — | ||||||||
Government grant recognition | — | 2.96 | — | ||||||||
Aircraft fuel and related taxes | (4.04) | (2.54) | (3.17) | ||||||||
Third-party refinery sales | (2.29) | (1.35) | (0.08) | ||||||||
Profit sharing | — | — | (0.35) | ||||||||
Delta Private Jets adjustment | — | — | (0.05) | ||||||||
CASM-Ex | 13.24 | ¢ | 13.01 | ¢ | 11.49 | ¢ | |||||
Free cash flow reconciliation | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions) | 2022 | 2021 | 2019 | ||||||||
Net cash provided by operating activities | $ | 1,771 | $ | 691 | $ | 1,942 | |||||
Net cash used in investing activities | (749) | (60) | (1,096) | ||||||||
Adjusted for: | |||||||||||
Net redemptions of short-term investments | (1,120) | (210) | (206) | ||||||||
Strategic investments and related | 107 | (19) | — | ||||||||
Net cash flows related to certain airport construction projects and other | 188 | 308 | 111 | ||||||||
Free cash flow | $ | 197 | $ | 710 | $ | 751 | |||||
Shares purchased / withheld from employee awards during the March 2022 quarter | ||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Approximate Dollar Value (in millions) of Shares That May Yet be Purchased Under the Plan | ||||||||||
January 2022 | 24,568 | $ | 39.43 | 24,568 | $ | — | ||||||||
February 2022 | 706,901 | $ | 41.06 | 706,901 | $ | — | ||||||||
March 2022 | 1,474 | $ | 37.49 | 1,474 | $ | — | ||||||||
Total | 732,943 | 732,943 |
Delta Air Lines, Inc. | |||||
(Registrant) | |||||
/s/ William C. Carroll | |||||
William C. Carroll | |||||
Senior Vice President - Controller | |||||
(Principal Accounting Officer) | |||||
April 13, 2022 |
DELTA AIR LINES, INC. | |||||
By: | |||||
Name: Kelley Elliott Title: Vice President—Total Rewards | |||||
PARTICIPANT | ||
[PARTICIPANT] | ||
Date: |
April 13, 2022 | /s/ Edward H. Bastian | ||||
Edward H. Bastian | |||||
Chief Executive Officer |
April 13, 2022 | /s/ Daniel C. Janki | ||||
Daniel C. Janki | |||||
Executive Vice President and Chief Financial Officer |
/s/ Edward H. Bastian | |||||
Edward H. Bastian | |||||
Chief Executive Officer | |||||
/s/ Daniel C. Janki | |||||
Daniel C. Janki | |||||
Executive Vice President and Chief Financial Officer |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Current Assets: | ||
Allowance for uncollectible accounts | $ 40 | $ 50 |
Allowance for obsolescence | 157 | 176 |
Noncurrent Assets: | ||
Accumulated depreciation and amortization | 19,136 | 18,671 |
Accumulated amortization | $ 895 | $ 893 |
Stockholders' Equity: | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, issued (shares) | 651,562,278 | 649,720,387 |
Treasury stock, at cost (shares) | 10,485,815 | 9,752,872 |
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions |
Total |
Common Stock |
Additional Paid-In Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Treasury Stock |
||||
---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2020 | $ 1,534 | $ 0 | $ 11,259 | $ (428) | $ (9,038) | $ (259) | ||||
Beginning balance (shares) at Dec. 31, 2020 | 647 | 9 | ||||||||
Net loss | (1,177) | (1,177) | ||||||||
Other comprehensive income | 78 | 78 | ||||||||
Common stock issued for employee equity awards | [1] | 3 | 23 | $ (20) | ||||||
Common stock issued for employee equity awards (shares) | [1] | 2 | 1 | |||||||
Government grant warrant issuance | 44 | 44 | ||||||||
Ending balance at Mar. 31, 2021 | 482 | $ 0 | 11,326 | (1,605) | (8,960) | $ (279) | ||||
Ending balance (shares) at Mar. 31, 2021 | 649 | 10 | ||||||||
Beginning balance at Dec. 31, 2021 | 3,887 | $ 0 | 11,447 | (148) | (7,130) | $ (282) | ||||
Beginning balance (shares) at Dec. 31, 2021 | 650 | 10 | ||||||||
Net loss | (940) | (940) | ||||||||
Other comprehensive income | 59 | 59 | ||||||||
Common stock issued for employee equity awards | [2] | (15) | 15 | $ (30) | ||||||
Common stock issued for employee equity awards (shares) | [2] | 2 | 1 | |||||||
Ending balance at Mar. 31, 2022 | $ 2,991 | $ 0 | $ 11,462 | $ (1,088) | $ (7,071) | $ (312) | ||||
Ending balance (shares) at Mar. 31, 2022 | 652 | 11 | ||||||||
|
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||
Treasury shares withheld for payment of taxes, weighted average price per share (USD per share) | $ 41.00 | $ 38.35 |
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Delta Air Lines, Inc. and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K for the year ended December 31, 2021. Management believes the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair statement of results for the interim periods presented. Due to impacts from the COVID-19 pandemic and the ongoing recovery, seasonal variations in the demand for air travel, the volatility of aircraft fuel prices and other factors, operating results for the three months ended March 31, 2022 are not necessarily indicative of operating results for the entire year. We reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | REVENUE RECOGNITION Passenger Revenue
Ticket We recognized approximately $2.2 billion and $822 million in passenger revenue during the three months ended March 31, 2022 and 2021, respectively, that had been recorded in our air traffic liability balance at the beginning of those periods. In order to provide our customers more flexibility and time to plan or rebook their travel, in January 2022, we announced that all existing travel credit holders will have until December 31, 2023 to rebook their ticket for travel throughout 2024. Additionally, all Delta customers with upcoming 2022 travel or who purchase a ticket in 2022 will also have the flexibility to rebook their ticket through December 31, 2023, and travel throughout 2024. The air traffic liability classified as current as of March 31, 2022 represents our estimate of tickets and travel credits to be used within one year. We will continue to monitor our customers' travel behavior and may adjust our estimates in the future. We estimate the value of tickets that will expire unused (“ticket breakage”) and recognize the related revenue at the scheduled flight date. Our ticket breakage estimates are primarily based on historical experience, ticket contract terms and customers’ travel behavior. Given the impact of the COVID-19 pandemic on customer behavior and changes made in ticket validity terms, as well as the elimination of change fees for most tickets, our estimates of revenue that will be recognized from the air traffic liability for unused tickets may vary in future periods. Loyalty Travel Awards Our SkyMiles loyalty program allows customers to earn mileage credits ("miles") by flying on Delta, Delta Connection and other airlines that participate in the loyalty program. Customers can also earn miles through participating companies, such as credit card companies, hotels, car rental agencies and ridesharing companies, who purchase miles from us. Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. During the three months ended March 31, 2022 and 2021, total cash sales from marketing agreements related to our loyalty program were $1.2 billion and $767 million, respectively, which are allocated to travel and other performance obligations. Loyalty travel awards revenue is related to the redemption of miles for air travel. Current Activity of the Loyalty Program. Miles are combined in one homogeneous pool and are not separately identifiable. Therefore, revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period as well as miles that were issued during the period. The timing of mile redemptions can vary widely; however, the majority of miles have historically been redeemed within two years of being earned. The table below presents the activity of the current and noncurrent loyalty program deferred revenue and includes miles earned through travel and miles sold to participating companies, which are primarily through marketing agreements.
Travel-Related Services Travel-related services are primarily composed of services performed in conjunction with a passenger’s flight and include baggage fees, on-board sales and administrative fees. Other Revenue
Refinery. This represents refinery sales to third parties, which are at or near cost; accordingly, the margin on these sales is de minimis. Loyalty Program. Loyalty program revenues relate to brand usage by third parties and other performance obligations embedded in miles sold, including redemption of miles for non-air travel and other awards. These revenues are mainly included within the total cash sales from marketing agreements, discussed above. Ancillary Businesses. Ancillary businesses includes aircraft maintenance services we provide to third parties and our vacation wholesale operations. Miscellaneous. Miscellaneous revenue is primarily composed of lounge access, including access provided to certain American Express cardholders, and codeshare revenues. Revenue by Geographic Region Operating revenue for the airline segment is recognized in a specific geographic region based on the origin, flight path and destination of each flight segment. A significant portion of the refinery segment's revenues typically consists of fuel sales to support the airline, which is eliminated in the Condensed Consolidated Financial Statements. The remaining operating revenue for the refinery segment is included in the domestic region. Our passenger and operating revenue by geographic region is summarized in the following tables:
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Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets/(Liabilities) Measured at Fair Value on a Recurring Basis
Cash Equivalents and Restricted Cash Equivalents. Cash equivalents generally consist of money market funds. Restricted cash equivalents are recorded in prepaid expenses and other and other noncurrent assets on our Consolidated Balance Sheet ("balance sheet"). Restricted cash equivalents generally consist of money market funds, time deposits, commercial paper and negotiable certificates of deposit, which primarily relate to proceeds from debt issued to finance, among other things, a portion of the construction costs for our new terminal facilities at New York's LaGuardia Airport. The fair value of these cash equivalents is based on a market approach using prices generated by market transactions involving identical or comparable assets. Short-Term Investments. Short-term investments consist of U.S. government and agency securities. The fair values of these investments are based on a market approach using industry standard valuation techniques that incorporate observable inputs such as quoted market prices, interest rates, benchmark curves, credit ratings of the security and other observable information. As of March 31, 2022, the estimated fair value of our short-term investments was $2.2 billion. Of these investments, $1.6 billion are expected to mature in one year or less, with the remainder maturing during 2023. Investments with maturities beyond one year when purchased are classified as short-term investments if they are expected to be available to support our short-term liquidity needs. Long-Term Investments. Our long-term investments measured at fair value primarily consist of equity investments, which are valued based on market prices or other observable transactions and inputs, and are recorded in equity investments on our balance sheet. Our equity investments in private companies are classified as Level 3 in the fair value hierarchy as their equity is not traded on a public exchange and our valuations incorporate certain unobservable inputs, including non-public equity issuances and forecasts provided by our investees. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values. See Note 4, "Investments," for further information on our equity investments. Fuel Hedge Contracts. Our derivative contracts to hedge the financial risk from changing fuel prices are primarily related to inventory at our wholly-owned subsidiary, Monroe Energy, LLC ("Monroe"). Our fuel hedge portfolio may consist of a combination of options, swaps or futures. Option and swap contracts are valued under income approaches using option pricing models and discounted cash flow models, respectively, based on data either readily observable in public markets, derived from public markets or provided by counterparties who regularly trade in public markets. Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices. We recognized losses of $240 million and $57 million on our fuel hedge contracts in aircraft fuel and related taxes on our Condensed Consolidated Statements of Operations and Comprehensive Loss ("income statement") for three months ended March 31, 2022 and 2021, respectively. The losses recognized during the March 2022 quarter are composed of $244 million of settlements on contracts and $4 million of mark-to-market adjustments. Expense from the settlement of closed contracts is offset by higher operating profits at Monroe from higher pricing. See Note 9, "Segments," for further information on our Monroe refinery segment.
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Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS We have developed strategic relationships with a number of airlines and airline services companies through joint ventures and other forms of cooperation and support, including equity investments. Our equity investments reinforce our commitment to these relationships and generally enhance our ability to offer input to the investee on strategic issues and direction, in some cases through representation on the board of directors. Fair Value Investments. Changes in the valuation of investments accounted for at fair value are recorded in gain/(loss) on investments, net in our income statement within non-operating expense and are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in companies without publicly-traded shares. Equity Method Investments. We record our share of our equity method investees' financial results in our income statement as described in the table below.
(1)Results are included in equity method results in our income statement under non-operating expense. (2)Results are included in contracted services in our income statement as this entity is integral to the operations of our business by providing services at our airport locations. (3)We account for our investment under the fair value option. Grupo Aeroméxico. On March 17, 2022, Grupo Aeroméxico ("Aeroméxico") emerged from its voluntary proceedings to reorganize under Chapter 11 of the United States bankruptcy code ("bankruptcy process"). At the conclusion of the bankruptcy process, Aeroméxico's previously outstanding capital stock was consolidated and exchanged for less than 0.01% of new capital stock, which effectively eliminated our historical 51% ownership stake. Upon emergence, Delta received a 20% equity stake in the newly restructured Aeroméxico in exchange for (1) our receivables under Aeroméxico's debtor-in-possession financing, (2) $100 million (recorded as an investing outflow on our Condensed Consolidated Statements of Cash Flows ("cash flows statement")), and (3) our agreement to provide expanded commercial services to Aeroméxico in future periods. We will account for our investment in Aeroméxico under the equity method of accounting and record our share of Aeroméxico's financial results in equity method results in our income statement. Other Investments. This category includes various investments that are accounted for at fair value or under the equity method, depending on our ownership interest and the level of influence conveyed by our investment. Virgin Atlantic. Virgin Atlantic has completed an out-of-court restructuring, during which we provided and continue to provide strategic and operational assistance. The carrying value of our investment in Virgin Atlantic remains zero as of March 31, 2022. We maintained our 49% equity interest and continue to track our share of Virgin Atlantic's losses under the equity method of accounting, which are only recorded to the extent we make additional investments in Virgin Atlantic. LATAM. LATAM Airlines Group S.A. ("LATAM") is undergoing voluntary proceedings to reorganize under Chapter 11 of the United States bankruptcy code, and the carrying value of our investment in LATAM remains zero as of March 31, 2022. In order to support our relationship with LATAM, we are providing strategic and operational assistance through the bankruptcy process. We have a $175 million noncurrent receivable outstanding associated with LATAM's debtor-in-possession financing. Upon completion of its bankruptcy process, we expect to receive an approximately 10% equity stake in LATAM in exchange for an additional investment in LATAM.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT
(1)Due in installments. (2)Certain financings are comprised of variable rate debt. All variable rates are equal to LIBOR (generally subject to a floor) or another index rate plus a specified margin. Availability Under Revolving Facilities As of March 31, 2022, we had approximately $2.9 billion undrawn and available under our revolving credit facilities. In addition, we had approximately $400 million outstanding letters of credit as of March 31, 2022 that did not affect the availability of our revolving credit facilities. Fair Value of Debt Market risk associated with our fixed- and variable-rate debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. The fair value of debt shown below is principally based on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Debt is primarily classified as Level 2 within the fair value hierarchy.
Covenants Our debt agreements contain various affirmative, negative and financial covenants. We were in compliance with the covenants in our debt agreements at March 31, 2022.
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Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS
Service cost is recorded in salaries and related costs in our income statement, while all other components are recorded within pension and related benefit/(expense) under non-operating expense. Expected Long-Term Rate of Return. Based on our level of funding at year-end, we have modified the strategic asset allocation mix to reduce the investment risk of the portfolio. As a result of the lower risk profile of the portfolio, the weighted average expected long-term rate of return on our defined benefit pension plan assets for 2022 net periodic benefit cost is 7.0%.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Aircraft Purchase Commitments Our future aircraft purchase commitments totaled approximately $15.3 billion at March 31, 2022.
Our future aircraft purchase commitments included the following aircraft at March 31, 2022:
Legal Contingencies We are involved in various legal proceedings related to employment practices, environmental issues, antitrust matters and other matters concerning our business. We record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount of loss can be reasonably estimated. Although the outcome of the legal proceedings in which we are involved cannot be predicted with certainty, we believe that the resolution of current matters will not have a material adverse effect on our Condensed Consolidated Financial Statements. Other Contingencies General Indemnifications We are the lessee under many commercial real estate leases. It is common in these transactions for us, as the lessee, to agree to indemnify the lessor and the lessor's related parties for tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. This type of indemnity would typically make us responsible to indemnified parties for liabilities arising out of the conduct of, among others, contractors, licensees and invitees at, or in connection with, the use or occupancy of the leased premises. This indemnity often extends to related liabilities arising from the negligence of the indemnified parties but usually excludes any liabilities caused by either their sole or gross negligence or their willful misconduct. Our aircraft and other equipment lease and financing agreements typically contain provisions requiring us, as the lessee or obligor, to indemnify the other parties to those agreements, including certain of those parties' related persons, against virtually any liabilities that might arise from the use or operation of the aircraft or other equipment. We believe that our insurance would cover most of our exposure to liabilities and related indemnities associated with the commercial real estate leases and aircraft and other equipment lease and financing agreements described above. While our insurance does not typically cover environmental liabilities, we have insurance policies in place as required by applicable environmental laws. Some of our aircraft and other financing transactions include provisions that require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to specified changes in laws or regulations. In some of these financing transactions, we also bear the risk of changes in tax laws that would subject payments to non-U.S. lenders to withholding taxes. We cannot reasonably estimate our potential future payments under the indemnities and related provisions described above because we cannot predict (1) when and under what circumstances these provisions may be triggered and (2) the amount that would be payable if the provisions were triggered because the amounts would be based on facts and circumstances existing at such time. Other We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs.
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Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | SEGMENTS Refinery Operations Our refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel, as well as non-jet fuel products. We use several counterparties to exchange the non-jet fuel products produced by the refinery for jet fuel consumed in our airline operations. The gross fair value of the products exchanged under these agreements during the three months ended March 31, 2022 and 2021 was $809 million and $503 million, respectively. Segment Reporting Segment results are prepared based on our internal accounting methods described below, with reconciliations to consolidated amounts in accordance with GAAP. Our segments are not designed to measure operating income or loss directly related to the products and services included in each segment on a stand-alone basis.
(1)Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. (2)Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis. (3)These sales were at or near cost; accordingly, the margin on these sales is de minimis. (4)Refinery segment operating results, including depreciation and amortization, are included within aircraft fuel and related taxes in our income statement. Fair Value ObligationsThe net fair value obligations presented in the table above are related to renewable fuel compliance costs and are based on quoted market prices and other observable information and are therefore classified as Level 2 in the fair value hierarchy. Our obligation as of March 31, 2022 was calculated using the U.S. Environmental Protection Agency's ("EPA") proposed Renewable Fuel Standard ("RFS") volume requirements, which were issued in December 2021. The EPA has not finalized the compliance deadlines to retire our obligations for 2020 and 2021, but we expect those deadlines to be within one year of the effective date of the new RFS volume requirements.
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Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Per Share | LOSS PER SHARE We calculate basic loss per share and diluted loss per share by dividing net loss by the weighted average number of common shares outstanding, excluding restricted shares. Antidilutive common stock equivalents excluded from the diluted loss per share calculation are not material. The following table shows the computation of basic and diluted loss per share:
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Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Delta Air Lines, Inc. and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K for the year ended December 31, 2021. Management believes the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair statement of results for the interim periods presented. Due to impacts from the COVID-19 pandemic and the ongoing recovery, seasonal variations in the demand for air travel, the volatility of aircraft fuel prices and other factors, operating results for the three months ended March 31, 2022 are not necessarily indicative of operating results for the entire year. We reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes.
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Revenue Recognition (Tables) |
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Schedule of disaggregation of revenue | Passenger Revenue
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Schedule of activity in loyalty program deferred revenue | The table below presents the activity of the current and noncurrent loyalty program deferred revenue and includes miles earned through travel and miles sold to participating companies, which are primarily through marketing agreements.
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Schedule of revenue by geographic region | Our passenger and operating revenue by geographic region is summarized in the following tables:
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets (liabilities) measured at fair value on a recurring basis | Assets/(Liabilities) Measured at Fair Value on a Recurring Basis
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Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of equity investments ownership and carrying value - fair value |
(1)Results are included in equity method results in our income statement under non-operating expense. (2)Results are included in contracted services in our income statement as this entity is integral to the operations of our business by providing services at our airport locations. (3)We account for our investment under the fair value option.
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Summary of equity investments ownership and carrying value - equity method |
(1)Results are included in equity method results in our income statement under non-operating expense. (2)Results are included in contracted services in our income statement as this entity is integral to the operations of our business by providing services at our airport locations. (3)We account for our investment under the fair value option.
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt |
(1)Due in installments. (2)Certain financings are comprised of variable rate debt. All variable rates are equal to LIBOR (generally subject to a floor) or another index rate plus a specified margin.
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Schedule of estimated fair value of debt instruments | The fair value of debt shown below is principally based on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Debt is primarily classified as Level 2 within the fair value hierarchy.
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Employee Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components net periodic (benefit) cost |
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Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future aircraft purchase commitments | Our future aircraft purchase commitments totaled approximately $15.3 billion at March 31, 2022.
Our future aircraft purchase commitments included the following aircraft at March 31, 2022:
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of accumulated other comprehensive loss |
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Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information | Segment results are prepared based on our internal accounting methods described below, with reconciliations to consolidated amounts in accordance with GAAP. Our segments are not designed to measure operating income or loss directly related to the products and services included in each segment on a stand-alone basis.
(1)Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. (2)Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis. (3)These sales were at or near cost; accordingly, the margin on these sales is de minimis. (4)Refinery segment operating results, including depreciation and amortization, are included within aircraft fuel and related taxes in our income statement.
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Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted earnings/(loss) per share | The following table shows the computation of basic and diluted loss per share:
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Revenue Recognition - Passenger Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 9,348 | $ 4,150 |
Passenger | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 6,907 | 2,748 |
Ticket | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 5,986 | 2,277 |
Loyalty travel awards | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 543 | 241 |
Travel-related services | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 378 | $ 230 |
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
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Revenue from Contract with Customer [Abstract] | ||
Revenue recognized that was previously deferred | $ 2,200 | $ 822 |
Cash sales of mileage credits | $ 1,200 | $ 767 |
Redemption period for majority of new miles (in years) | 2 years |
Revenue Recognition - Loyalty Program Liability (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
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Loyalty program activity | ||
Miles earned | $ 658 | $ 354 |
Miles redeemed for air travel | (543) | (241) |
Miles redeemed for non-air travel and other | (30) | (10) |
Current and noncurrent deferred revenue, ending | 7,644 | 7,285 |
Loyalty program | ||
Loyalty program activity | ||
Current and noncurrent deferred revenue, beginning | $ 7,559 | $ 7,182 |
Revenue Recognition - Other Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 9,348 | $ 4,150 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 2,152 | 1,187 |
Refinery | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 1,187 | 540 |
Loyalty program | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 571 | 368 |
Ancillary businesses | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 209 | 186 |
Miscellaneous | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 185 | $ 93 |
Revenue Recognition - Revenue by Geographic Region (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 9,348 | $ 4,150 |
Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 7,549 | 3,368 |
Atlantic | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 776 | 267 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 811 | 381 |
Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 212 | 134 |
Passenger | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 6,907 | 2,748 |
Passenger | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 5,563 | 2,280 |
Passenger | Atlantic | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 539 | 142 |
Passenger | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | 680 | 264 |
Passenger | Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 125 | $ 62 |
Fair Value Measurements - Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Fair Value | ||
Cash equivalents | $ 5,132 | $ 5,450 |
Restricted cash equivalents | 429 | 635 |
Short-term investments | 2,250 | 3,386 |
Long-term investments | 1,312 | 1,459 |
Fuel hedge contracts | (14) | (18) |
Level 1 | ||
Fair Value | ||
Cash equivalents | 5,132 | 5,450 |
Restricted cash equivalents | 429 | 635 |
Short-term investments | 681 | 1,376 |
Long-term investments | 1,179 | 1,326 |
Fuel hedge contracts | 0 | 0 |
Level 2 | ||
Fair Value | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents | 0 | 0 |
Short-term investments | 1,569 | 2,010 |
Long-term investments | 36 | 36 |
Fuel hedge contracts | (14) | (18) |
Level 3 | ||
Fair Value | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 97 | 97 |
Fuel hedge contracts | $ 0 | $ 0 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | $ 2,250 | $ 3,386 | |
Short-term investments expected to mature in one year or less | 1,600 | ||
Fuel hedge contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net losses on fuel hedge contracts | 240 | $ 57 | |
Loss on settlement | 244 | ||
Mark-to-market adjustments | $ 4 |
Investments - Equity Investments Ownership Interest and Carrying Value (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Mar. 17, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Equity Investments | |||
Equity investments | $ 1,999 | $ 1,712 | |
Air France-KLM | |||
Equity Investments | |||
Ownership interest (percent) | 6.00% | 6.00% | |
Carrying value | $ 170 | $ 165 | |
China Eastern | |||
Equity Investments | |||
Ownership interest (percent) | 2.00% | 2.00% | |
Carrying value | $ 157 | $ 177 | |
CLEAR | |||
Equity Investments | |||
Ownership interest (percent) | 6.00% | 6.00% | |
Carrying value | $ 223 | $ 260 | |
Hanjin-KAL | |||
Equity Investments | |||
Ownership interest (percent) | 13.00% | 13.00% | |
Carrying value | $ 450 | $ 455 | |
Wheels Up | |||
Equity Investments | |||
Ownership interest (percent) | 21.00% | 21.00% | |
Carrying value | $ 162 | $ 241 | |
Other investments | |||
Equity Investments | |||
Carrying value | $ 246 | $ 255 | |
Grupo Aeromexico | |||
Equity Investments | |||
Ownership interest (percent) | 20.00% | 20.00% | 51.00% |
Carrying value | $ 432 | $ 0 | |
Unifi Aviation | |||
Equity Investments | |||
Ownership interest (percent) | 49.00% | 49.00% | |
Carrying value | $ 159 | $ 159 |
Investments - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 17, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Grupo Aeromexico | |||
Investments [Line Items] | |||
New capital stock after consolidation and exchange as percentage of previously outstanding (percent) | 0.01% | ||
Grupo Aeromexico | |||
Investments [Line Items] | |||
Carrying value | $ 432 | $ 0 | |
Ownership interest (percent) | 20.00% | 20.00% | 51.00% |
Virgin Atlantic | |||
Investments [Line Items] | |||
Carrying value | $ 0 | ||
Ownership interest (percent) | 49.00% | ||
LATAM | |||
Investments [Line Items] | |||
Carrying value | $ 0 | ||
Estimated ownership pending restructuring process (percent) | 10.00% | ||
Grupo Aeromexico | |||
Investments [Line Items] | |||
Investment in equity method investment | $ 100 | ||
LATAM | |||
Investments [Line Items] | |||
Noncurrent financing receivable | $ 175 |
Debt - Narrative (Details) $ in Millions |
Mar. 31, 2022
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Outstanding letters of credit that do not affect availability of revolvers | $ 400 |
Revolving credit facility | |
Debt Instrument [Line Items] | |
Undrawn credit facilities | $ 2,900 |
Debt - Fair Value of Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt | ||
Net carrying amount | $ 23,770 | $ 25,084 |
Fair value | $ 24,200 | $ 26,900 |
Employee Benefit Plans - Components of Net Periodic (Benefit) Cost (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Service cost | $ 0 | $ 0 |
Interest cost | 153 | 146 |
Expected return on plan assets | (330) | (375) |
Amortization of prior service credit | 0 | 0 |
Recognized net actuarial loss | 64 | 89 |
Net periodic (benefit) cost | (113) | (140) |
Other Postretirement and Postemployment Benefits | ||
Defined Benefit Plan Disclosure | ||
Service cost | 18 | 21 |
Interest cost | 32 | 29 |
Expected return on plan assets | (4) | (9) |
Amortization of prior service credit | (1) | (2) |
Recognized net actuarial loss | 13 | 15 |
Net periodic (benefit) cost | $ 58 | $ 54 |
Employee Benefit Plans - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Pension Benefits | |
Defined Benefit Plan Disclosure | |
Weighted average expected long-term rate of return on plan assets (percent) | 7.00% |
Commitments and Contingencies - Narrative (Details) $ in Millions |
Mar. 31, 2022
USD ($)
|
---|---|
Future aircraft purchase commitments | |
Future Purchase Commitments | |
Future aircraft purchase commitments | $ 15,340 |
Commitments and Contingencies - Aircraft Commitments by Year (Details) - Future aircraft purchase commitments $ in Millions |
Mar. 31, 2022
USD ($)
|
---|---|
Future aircraft purchase commitments: | |
Nine months ending December 31, 2022 | $ 2,640 |
2023 | 3,170 |
2024 | 3,290 |
2025 | 2,910 |
2026 | 2,340 |
Thereafter | 990 |
Total | $ 15,340 |
Commitments and Contingencies - Aircraft Commitments by Fleet Type (Details) (Details) - Future aircraft purchase commitments |
Mar. 31, 2022
aircraft
|
---|---|
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 243 |
A220-300 | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 40 |
A321-200neo | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 154 |
A330-900neo | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 23 |
A350-900 | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 18 |
B-737-900ER | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 5 |
CRJ-900 | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 3 |
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Components of accumulated other comprehensive loss | ||
Beginning balance | $ 3,887 | $ 1,534 |
Reclassifications into earnings (net of tax effect) | 59 | 78 |
Reclassifications into earnings, tax effect | (18) | (23) |
Ending balance | 2,991 | 482 |
Accumulated Other Comprehensive Income | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | (7,130) | (9,038) |
Beginning balance, tax effect | 1,184 | 1,764 |
Ending balance | (7,071) | (8,960) |
Ending balance, tax effect | 1,166 | 1,741 |
Pension and Other Benefit Liabilities | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | (7,170) | (9,078) |
Reclassifications into earnings (net of tax effect) | 59 | 78 |
Ending balance | (7,111) | (9,000) |
Other | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | 40 | 40 |
Reclassifications into earnings (net of tax effect) | 0 | 0 |
Ending balance | $ 40 | $ 40 |
Segments - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting Information, Profit (Loss) | ||
Operating revenue | $ 9,348 | $ 4,150 |
Intersegment Sales/Other | Exchanged products | ||
Segment Reporting Information, Profit (Loss) | ||
Operating revenue | $ (809) | $ (503) |
Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Net loss | $ (940) | $ (1,177) |
Basic weighted average shares outstanding (shares) | 637 | 636 |
Dilutive effect of share-based awards (shares) | 0 | 0 |
Diluted weighted average shares outstanding (shares) | 637 | 636 |
Basic loss per share (USD per share) | $ (1.48) | $ (1.85) |
Diluted loss per share (USD per share) | $ (1.48) | $ (1.85) |
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