10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

Or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-5424

DELTA AIR LINES, INC.

(Exact name of registrant as specified in its charter)

Delaware	58-0218548
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Post Office Box 20706
Atlanta, Georgia	30320-6001
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (404) 715-2600

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	DAL	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company			☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

Number of shares outstanding by each class of common stock, as of March 31, 2023:

Common Stock, $0.0001 par value - 642,716,623 shares outstanding

This document is also available through our website at http://ir.delta.com/.

Table of Contents
	Page
Forward Looking Statements	1
Report of Independent Registered Public Accounting Firm	2
Part I. Financial Information
Item 1. Financial Statements	3
Consolidated Balance Sheets	3
Condensed Consolidated Statements of Operations and Comprehensive Loss	4
Condensed Consolidated Statements of Cash Flows	5
Consolidated Statements of Stockholders' Equity	6
Notes to the Condensed Consolidated Financial Statements	7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3. Quantitative and Qualitative Disclosures About Market Risk	31
Item 4. Controls and Procedures	31
Part II. Other Information
Item 1. Legal Proceedings	31
Item 1A. Risk Factors	31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 6. Exhibits	32
Signature	33

Forward Looking Statements

Unless otherwise indicated or the context otherwise requires, the terms "Delta," "we," "us" and "our" refer to Delta Air Lines, Inc. and its subsidiaries.

FORWARD-LOOKING STATEMENTS

Statements in this Form 10-Q (or otherwise made by us or on our behalf) that are not historical facts, including statements about our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. Known material risk factors applicable to Delta are described in "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 ("Form 10-K"), other than risks that could apply to any issuer or offering. All forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report except as required by law.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Delta Air Lines, Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of Delta Air Lines, Inc. (the Company) as of March 31, 2023, the related condensed consolidated statements of operations and comprehensive loss, condensed consolidated statements of cash flows, and consolidated statements of stockholders' equity for the three-month periods ended March 31, 2023 and 2022, and the related notes (collectively referred to as the "condensed consolidated interim financial statements"). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2022, the related consolidated statements of operations, comprehensive income/(loss), cash flows, and stockholders' equity for the year then ended, and the related notes (not presented herein); and in our report dated February 10, 2023, we expressed an unqualified audit opinion on those Consolidated Financial Statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2022, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

	/s/ Ernst & Young LLP
Atlanta, Georgia
April 13, 2023

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 2

Financial Statements

DELTA AIR LINES, INC.

Consolidated Balance Sheets

(Unaudited)

(in millions, except share data)	March 31, 2023		December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	3,215	$	3,266
Short-term investments	3,396		3,268
Accounts receivable, net of allowance for uncollectible accounts of $24 and $23	3,224		3,176
Fuel, expendable parts and supplies inventories, net of allowance for obsolescence of $134 and $136	1,379		1,424
Prepaid expenses and other	2,187		1,877
Total current assets	13,401		13,011
Noncurrent Assets:
Property and equipment, net of accumulated depreciation and amortization of $20,881 and $20,370	33,249		33,109
Operating lease right-of-use assets	7,067		7,036
Goodwill	9,753		9,753
Identifiable intangibles, net of accumulated amortization of $904 and $902	5,990		5,992
Equity investments	2,249		2,128
Deferred income taxes, net	432		325
Other noncurrent assets	993		934
Total noncurrent assets	59,733		59,277
Total assets	$	73,134	$	72,288
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of debt and finance leases	$	2,136	$	2,359
Current maturities of operating leases	724		714
Air traffic liability	11,187		8,160
Accounts payable	4,754		5,106
Accrued salaries and related benefits	2,828		3,288
Loyalty program deferred revenue	3,685		3,434
Fuel card obligation	1,100		1,100
Other accrued liabilities	2,003		1,779
Total current liabilities	28,417		25,940
Noncurrent Liabilities:
Debt and finance leases	19,823		20,671
Pension, postretirement and related benefits	3,730		3,707
Loyalty program deferred revenue	4,413		4,448
Noncurrent operating leases	6,877		6,866
Other noncurrent liabilities	3,614		4,074
Total noncurrent liabilities	38,457		39,766
Commitments and Contingencies
Stockholders' Equity:
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 653,855,351 and 651,800,786 shares issued	—		—
Additional paid-in capital	11,544		11,526
Retained earnings	807		1,170
Accumulated other comprehensive loss	(5,754)		(5,801)
Treasury stock, at cost, 11,138,728 and 10,535,033 shares	(337)		(313)
Total stockholders' equity	6,260		6,582
Total liabilities and stockholders' equity	$	73,134	$	72,288
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 3

Financial Statements

DELTA AIR LINES, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

	Three Months Ended March 31,
(in millions, except per share data)	2023		2022
Operating Revenue:
Passenger	$	10,411	$	6,907
Cargo	209		289
Other	2,139		2,152
Total operating revenue	12,759		9,348
Operating Expense:
Salaries and related costs	3,386		2,826
Aircraft fuel and related taxes	2,676		2,092
Ancillary businesses and refinery	1,125		1,382
Contracted services	1,010		753
Pilot agreement and related expenses	864		—
Aircraft maintenance materials and outside repairs	585		465
Landing fees and other rents	584		504
Depreciation and amortization	564		506
Regional carrier expense	559		491
Passenger commissions and other selling expenses	500		312
Passenger service	416		275
Aircraft rent	132		122
Profit sharing	72		—
Other	563		403
Total operating expense	13,036		10,131
Operating Loss	(277)		(783)
Non-Operating Expense:
Interest expense, net	(227)		(274)
Gain/(loss) on investments, net	122		(147)
Loss on extinguishment of debt	(22)		(25)
Pension and related (expense)/benefit	(61)		73
Miscellaneous, net	(41)		(44)
Total non-operating expense, net	(229)		(417)
Loss Before Income Taxes	(506)		(1,200)
Income Tax Benefit	143		260
Net Loss	$	(363)	$	(940)
Basic Loss Per Share	$	(0.57)	$	(1.48)
Diluted Loss Per Share	$	(0.57)	$	(1.48)
Comprehensive Loss	$	(316)	$	(881)
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 4

Financial Statements

DELTA AIR LINES, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(in millions)	2023		2022
Net Cash Provided by Operating Activities	$	2,235	$	1,771
Cash Flows from Investing Activities:
Property and equipment additions:
Flight equipment, including advance payments	(630)		(1,276)
Ground property and equipment, including technology	(370)		(490)
Purchase of short-term investments	(999)		(226)
Redemption of short-term investments	897		1,346
Purchase of equity investments	—		(100)
Other, net	2		(3)
Net cash used in investing activities	(1,100)		(749)
Cash Flows from Financing Activities:
Payments on debt and finance lease obligations	(1,166)		(1,443)
Other, net	(13)		(13)
Net cash used in financing activities	(1,179)		(1,456)
Net Decrease in Cash, Cash Equivalents and Restricted Cash Equivalents	(44)		(434)
Cash, cash equivalents and restricted cash equivalents at beginning of period	3,473		8,569
Cash, cash equivalents and restricted cash equivalents at end of period	$	3,429	$	8,135
Non-Cash Transactions:
Flight and ground equipment acquired under finance leases	$	25	$	33
Right-of-use assets acquired under operating leases	208		359
Operating leases converted to finance leases	30		9
Equity investments and other financings	—		330
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)	2023		2022
Current assets:
Cash and cash equivalents	$	3,215	$	7,705
Restricted cash included in prepaid expenses and other	160		170
Noncurrent assets:
Restricted cash included in other noncurrent assets	54		260
Total cash, cash equivalents and restricted cash equivalents	$	3,429	$	8,135
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 5

Financial Statements

DELTA AIR LINES, INC.

Consolidated Statements of Stockholders' Equity

(Unaudited)

	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock
(in millions, except per share data)	Shares	Amount								Shares	Amount		Total
Balance at December 31, 2022	652	$	—	$	11,526	$	1,170	$	(5,801)	11	$	(313)	$	6,582
Net loss	—	—		—		(363)		—		—	—		(363)
Other comprehensive income	—	—		—		—		47		—	—		47
Common stock issued for employee equity awards(1)	2	—		18		—		—		—	(24)		(6)
Balance at March 31, 2023	654	$	—	$	11,544	$	807	$	(5,754)	11	$	(337)	$	6,260

(1)Treasury shares were withheld for payment of taxes, at a weighted average price per share of $39.73 in the March 2023 quarter.

	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	650	$	—	$	11,447	$	(148)	$	(7,130)	10	$	(282)	$	3,887
Net loss	—	—		—		(940)		—		—	—		(940)
Other comprehensive income	—	—		—		—		59		—	—		59
Common stock issued for employee equity awards(1)	2	—		15		—		—		1	(30)		(15)
Balance at March 31, 2022	652	$	—	$	11,462	$	(1,088)	$	(7,071)	11	$	(312)	$	2,991

(1)Treasury shares were withheld for payment of taxes, at a weighted average price per share of $41.00 in the March 2022 quarter.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 6

Notes to the Consolidated Financial Statements

DELTA AIR LINES, INC.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

NOTE 1. 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, 2022.

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 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, 2023 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.

NOTE 2. REVENUE RECOGNITION

Passenger Revenue

	Three Months Ended March 31,
(in millions)	2023		2022
Ticket	$	9,239	$	5,986
Loyalty travel awards	743		543
Travel-related services	429		378
Total passenger revenue	$	10,411	$	6,907

Ticket

We recognized approximately $3.9 billion and $2.2 billion in passenger revenue during the three months ended March 31, 2023 and 2022, respectively, that had been recorded in our air traffic liability balance at the beginning of those periods.

As of March 31, 2023, our air traffic liability was recorded as a current liability. As of December 31, 2022, our air traffic liability was $8.3 billion, of which $100 million was included in other noncurrent liabilities on our Consolidated Balance Sheet ("balance sheet").

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. Loyalty travel awards revenue is related to the redemption of miles for air travel. 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, 2023 and 2022, total cash sales from marketing agreements related to our loyalty program were $1.7 billion and $1.2 billion, respectively, which are allocated to travel and other performance obligations.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 7

Notes to the Consolidated Financial Statements

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.

Loyalty program activity
(in millions)	2023		2022
Balance at January 1	$	7,882	$	7,559
Miles earned	999		658
Miles redeemed for air travel	(743)		(543)
Miles redeemed for non-air travel and other	(40)		(30)
Balance at March 31	$	8,098	$	7,644

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

	Three Months Ended March 31,
(in millions)	2023		2022
Refinery	$	916	$	1,187
Loyalty program	726		571
Ancillary businesses	231		209
Miscellaneous	266		185
Total other revenue	$	2,139	$	2,152

Refinery. This represents refinery sales to third parties. See Note 9, "Segments," for more information on revenue recognition within our refinery segment.

Loyalty Program. Loyalty program revenue relates 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 derived from the total cash sales from marketing agreements, discussed above.

Ancillary Businesses. Ancillary businesses revenue represents revenues from aircraft maintenance services we provide to third parties and our vacation wholesale operations.

Miscellaneous. Miscellaneous is primarily composed of revenues related to Delta Sky Club lounge access, including access provided to certain American Express cardholders, and codeshare agreements.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 8

Notes to the Consolidated Financial Statements

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:

Passenger revenue by geographic region
	Passenger Revenue
	Three Months Ended March 31,
(in millions)	2023		2022
Domestic	$	7,594	$	5,563
Atlantic	1,244		539
Latin America	1,132		680
Pacific	441		125
Total	$	10,411	$	6,907

Operating revenue by geographic region
	Operating Revenue
	Three Months Ended March 31,
(in millions)	2023		2022
Domestic	$	9,396	$	7,549
Atlantic	1,548		776
Latin America	1,280		811
Pacific	535		212
Total	$	12,759	$	9,348

NOTE 3. FAIR VALUE MEASUREMENTS

Assets/(Liabilities) Measured at Fair Value on a Recurring Basis

(in millions)	March 31, 2023		Level 1		Level 2		Level 3
Cash equivalents	$	2,231	$	2,231	$	—	$	—
Restricted cash equivalents	213		213		—		—
Short-term investments
U.S. Government securities	1,501		162		1,339		—
Corporate obligations	1,756		—		1,756		—
Asset-backed securities	37		—		37		—
Other fixed income securities	102		—		102		—
Long-term investments	1,572		1,424		38		110
Fuel hedge contracts	(6)		—		(6)		—

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 9

Notes to the Consolidated Financial Statements

(in millions)	December 31, 2022		Level 1		Level 2		Level 3
Cash equivalents	$	2,021	$	2,021	$	—	$	—
Restricted cash equivalents	206		206		—		—
Short-term investments
U.S. Government securities	1,587		122		1,465		—
Corporate obligations	1,614		—		1,614		—
Other fixed income securities	67		—		67		—
Long-term investments	1,450		1,305		38		107
Fuel hedge contracts	(47)		—		(47)		—

Cash Equivalents and Restricted Cash Equivalents. Cash equivalents generally consist of money market funds. Restricted cash equivalents generally consist of money market funds, time deposits, commercial paper and negotiable certificates of deposit, which primarily relate to certain self-insurance obligations and airport commitments as well as 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. Restricted cash equivalents are recorded in prepaid expenses and other and other noncurrent assets on our balance sheet. 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. The fair values of our short-term 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, 2023, the estimated fair value of our short-term investments was $3.4 billion. Of these investments, $3.0 billion are expected to mature in one year or less, with the remainder maturing in the second quarter of 2024. 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. 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 contracts, most of which have a duration of less than three months. 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 gains of $31 million and losses of $240 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 the three months ended March 31, 2023 and 2022, respectively. The gains recognized during the three months ended March 31, 2023 were composed of $41 million of mark-to-market gains and $10 million of settlements on contracts. The losses recognized during the March 2022 quarter were composed of $244 million of settlements on contracts and $4 million of mark-to-market gains. 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.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 10

Notes to the Consolidated Financial Statements

NOTE 4. 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.

Equity investments ownership interest and carrying value
	Accounting Treatment	Ownership Interest				Carrying Value
(in millions)		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Air France-KLM	Fair Value	3	%	3	%	$	135	$	97
China Eastern	Fair Value	2	%	2	%	184		189
CLEAR	Fair Value	5	%	5	%	217		227
Grupo Aeroméxico	Equity Method(1)	20	%	20	%	410		412
Hanjin KAL	Fair Value(2)	15	%	15	%	351		296
LATAM	Fair Value	10	%	10	%	455		403
Unifi Aviation	Equity Method(3)	49	%	49	%	164		165
Wheels Up	Fair Value(4)	21	%	21	%	33		54
Other investments	Various					300		285
Equity investments						$	2,249	$	2,128

(1)Results are included in miscellaneous, net in our income statement under non-operating expense.

(2)At March 31, 2023, we held 14.8% of the outstanding shares (including common and preferred), and 14.9% of the common shares, of Hanjin KAL.

(3)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 many of our airport locations.

(4)We elected to account for our investment under the fair value option.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 11

Notes to the Consolidated Financial Statements

NOTE 5. DEBT

Summary of outstanding debt by category
	Maturity			Interest Rate(s) Per Annum at			March 31,		December 31,
(in millions)	Dates			March 31, 2023			2023		2022
Unsecured Payroll Support Program Loans	2030	to	2031	1.00%			$	3,496	$	3,496
Unsecured notes	2023	to	2029	2.90%	to	7.38%	2,997		2,997
Financing arrangements secured by SkyMiles assets:
SkyMiles Notes(1)	2023	to	2028	4.50%	and	4.75%	5,007		5,144
SkyMiles Term Loan(1)(2)	2023	to	2027	8.56%			2,478		2,820
NYTDC Special Facilities Revenue Bonds(1)	2024	to	2045	4.00%	to	5.00%	2,778		2,838
Financing arrangements secured by aircraft:
Certificates(1)	2023	to	2028	2.00%	to	8.00%	1,790		1,802
Notes(1)(2)	2023	to	2033	6.11%	to	7.22%	553		813
Financing arrangements secured by slots, gates and/or routes:
2020 Senior Secured Notes	2025			7.00%			1,274		1,542
2018 Revolving Credit Facility(2)	2024	to	2025	Undrawn			—		—
Other financings(1)(2)	2023	to	2030	2.51%	to	5.00%	67		67
Other revolving credit facilities(2)	2023			Undrawn			—		—
Total secured and unsecured debt							$	20,440	$	21,519
Unamortized (discount)/premium and debt issue cost, net and other							(120)		(138)
Total debt							$	20,320	$	21,381
Less: current maturities							(1,830)		(2,055)
Total long-term debt							$	18,490	$	19,326

(1)Due in installments during the years shown above.

(2)Certain financings are comprised of variable rate debt. All variable rates are equal to LIBOR (generally subject to a floor), Secured Overnight Financing Rate ("SOFR") or another index rate plus a specified margin.

Availability Under Revolving Credit Facilities

As of March 31, 2023, 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, 2023 that did not affect the availability of our revolving credit facilities.

Early Settlement of Outstanding Notes

In the March 2023 quarter, we repurchased a principal amount of $468 million of various secured notes and a portion of the SkyMiles Term Loan on the open market and made early principal repayments of $227 million on various notes secured by aircraft. These payments resulted in a $22 million loss on extinguishment of debt recorded in non-operating expense in our income statement.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 12

Notes to the Consolidated Financial Statements

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.

Fair value of outstanding debt
(in millions)	March 31, 2023		December 31, 2022
Net carrying amount	$	20,320	$	21,381
Fair value	$	19,900	$	20,700

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, 2023.

NOTE 6. EMPLOYEE BENEFIT PLANS

Employee benefit plans net periodic cost (benefit)
	Pension Benefits				Other Postretirement and Postemployment Benefits
(in millions)	2023		2022		2023		2022
Three Months Ended March 31,
Service cost	$	—	$	—	$	18	$	18
Interest cost	213		153		50		32
Expected return on plan assets	(264)		(330)		—		(4)
Amortization of prior service credit	—		—		(1)		(1)
Recognized net actuarial loss	60		64		3		13
Net periodic cost (benefit)	$	9	$	(113)	$	70	$	58

Service cost is recorded in salaries and related costs in our income statement, while all other components are recorded within pension and related (expense)/benefit under non-operating expense.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 13

Notes to the Consolidated Financial Statements

NOTE 7. COMMITMENTS AND CONTINGENCIES

Aircraft Purchase Commitments

Our future aircraft purchase commitments totaled approximately $18.7 billion at March 31, 2023.

Aircraft purchase commitments(1)
(in millions)	Total
Nine months ending December 31, 2023	$	2,360
2024	4,460
2025	4,290
2026	3,830
2027	2,580
Thereafter	1,200
Total	$	18,720

(1)The timing of these commitments is based on our contractual agreements with the aircraft manufacturers and may be subject to change based on modifications to those agreements or changes in delivery schedules.

Our future aircraft purchase commitments included the following aircraft at March 31, 2023:

Aircraft purchase commitments by fleet type
Aircraft Type	Purchase Commitments
A220-300	59
A321-200neo	130
A330-900neo	17
A350-900	16
B-737-10	100
Total	322

Legal Contingencies

We are involved in various legal proceedings related to employment practices, environmental issues, antitrust 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.

Employees Under Collective Bargaining Agreements

In March 2023, Delta pilots ratified a new four-year Pilot Working Agreement effective January 1, 2023. The agreement includes numerous work rule changes and pay rate increases during the four-year term, including an initial pay rate increase of 18%. The agreement also includes a provision for a one-time payment upon ratification in the March 2023 quarter of $735 million. Additionally, we recorded adjustments to other benefit-related items of approximately $130 million. These items are recorded within pilot agreement and related expenses in our income statement.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 14

Notes to the Consolidated Financial Statements

NOTE 8. ACCUMULATED OTHER COMPREHENSIVE LOSS

Components of accumulated other comprehensive loss
(in millions)	Pension and Other Benefit Liabilities		Other		Tax Effect		Total
Balance at January 1, 2023	$	(6,624)	$	41	$	782	$	(5,801)
Reclassifications into earnings(1)	62		—		(15)		47
Balance at March 31, 2023	$	(6,562)	$	41	$	767	$	(5,754)

Balance at January 1, 2022	$	(8,355)	$	41	$	1,184	$	(7,130)
Reclassifications into earnings(1)	77		—		(18)		59
Balance at March 31, 2022	$	(8,278)	$	41	$	1,166	$	(7,071)

(1)Amounts reclassified from accumulated other comprehensive loss for pension and other benefit liabilities are recorded in pension and related (expense)/benefit in non-operating expense in our income statement.

NOTE 9. 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 from 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, 2023 and 2022 was $714 million and $809 million, respectively.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 15

Notes to the Consolidated Financial Statements

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.

Financial information by segment
(in millions)	Airline		Refinery			Intersegment Sales/Other			Consolidated
Three Months Ended March 31, 2023
Operating revenue:	$	11,843	$	2,352					$	12,759
Sales to airline segment						$	(596)	(1)
Exchanged products						(714)		(2)
Sales of refined products						(126)
Operating (loss)/income	(499)		222		(3)	—			(277)
Interest expense, net	227		4			(4)			227
Depreciation and amortization	564		23			(23)		(3)	564
Total assets, end of period	70,183		3,005			(54)			73,134
Net fair value obligations, end of period	—		(38)			—			(38)
Capital expenditures	971		29			—			1,000
Three Months Ended March 31, 2022
Operating revenue:	$	8,161	$	2,313					$	9,348
Sales to airline segment						$	(291)	(1)
Exchanged products						(809)		(2)
Sales of refined products						(26)
Operating (loss)/income	(836)		53		(3)	—			(783)
Interest expense, net	274		2			(2)			274
Depreciation and amortization	506		23			(23)		(3)	506
Total assets, end of period	71,392		2,382			(26)			73,748
Net fair value obligations, end of period	—		(430)			—			(430)
Capital expenditures	1,749		17			—			1,766

(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 for jet fuel from the refinery by reference to the market index for the primary delivery location, which is New York Harbor.

(2)Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis.

(3)Refinery segment operating results, including depreciation and amortization, are included within aircraft fuel and related taxes in our income statement.

Fair Value Obligations

The net fair value obligations presented in the table above are related to renewable fuel compliance costs and presented net of any related assets or fixed price purchase agreements. Their value is 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, 2023 was calculated using the U.S. Environmental Protection Agency's ("EPA") Renewable Fuel Standard ("RFS") volume requirements, which were finalized in 2022 for 2021 and 2022 obligations, and proposed in 2022 for 2023 obligations. In March 2023, we settled a portion of our 2021 RINs obligation with the EPA. We expect to settle the remaining 2021 and our entire 2022 RINs obligation by the 2022 compliance deadline, which the EPA has not yet finalized.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 16

Notes to the Consolidated Financial Statements

NOTE 10. 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 earnings per share calculation are not material. The following table shows the computation of basic and diluted loss per share:

Basic and diluted loss per share
	Three Months Ended March 31,
(in millions, except per share data)	2023		2022
Net loss	$	(363)	$	(940)
Basic weighted average shares outstanding	639		637
Dilutive effect of share-based instruments	—		—
Diluted weighted average shares outstanding	639		637
Basic loss per share	$	(0.57)	$	(1.48)
Diluted loss per share	$	(0.57)	$	(1.48)

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 17

Item 2. MD&A

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and our audited Consolidated Financial Statements and related notes included in our 2022 Form 10-K.

March 2023 Quarter Financial Overview

Given the impact of the COVID-19 pandemic during the March 2022 quarter, comparisons discussed below are not indicative of expected full year-over-year results. Compared to the March 2019 quarter, total revenue increased $2.3 billion, or 22%, and total operating expense increased $3.6 billion, or 38%, with 2% lower capacity. We are planning for our full year 2023 system capacity to be close to 2019 capacity levels.

Our operating loss for the March 2023 quarter was $277 million, representing a $506 million improvement compared to the March 2022 quarter primarily resulting from increased revenue from continued improvement in demand and higher capacity. Operating expenses also increased primarily due to the pilot agreement and related expenses, higher fuel expense and higher salaries and related costs. Operating income, adjusted (a non-GAAP financial measure) was $546 million, an increase of $1.3 billion compared to the corresponding prior year quarter. Adjustments are primarily related to the pilot agreement and related expenses and unrealized gains and losses on our equity investments.

Revenue. Compared to the March 2022 quarter, our operating revenue increased $3.4 billion, or 36%, due primarily to increased travel demand and higher yield, as well as a capacity increase of 18%.

Operating Expense. Total operating expense in the March 2023 quarter increased $2.9 billion, or 29%, compared to the March 2022 quarter, primarily resulting from the pilot agreement and related expenses, higher fuel costs, due to both an increase in fuel price and increased capacity, and higher salaries and related costs from pay rate increases and increased headcount. Total operating expense, adjusted (a non-GAAP financial measure) in the March 2023 quarter increased $2.3 billion, or 26%, compared to the March 2022 quarter. Adjustments were primarily to exclude expenses related to refinery sales to third parties and the pilot agreement and related expenses.

Our total operating cost per available seat mile ("CASM") increased 9% compared to the March 2022 quarter, primarily due to the higher costs discussed above, partially offset by an 18% increase in capacity. Non-fuel unit costs ("CASM-Ex", a non-GAAP financial measure) increased 4.7%.

Cash Flow. Our cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities ("liquidity") as of March 31, 2023 was $9.5 billion. During the March 2023 quarter, operating activities generated $2.2 billion.

Additionally, total cash sales to American Express were $1.7 billion in the March 2023 quarter, an increase of approximately 38% compared to the March 2022 quarter.

During the quarter, investing activities were a net of $1.1 billion, primarily for capital expenditures and net purchases of short-term investments. These operating and investing activities generated $1.9 billion of free cash flow (a non-GAAP financial measure) in the March 2023 quarter. Also, during the March 2023 quarter we had cash outflows of approximately $1.2 billion related to repayments of our debt and finance leases.

The non-GAAP financial measure referenced above for operating income, adjusted, operating expense, adjusted, CASM-Ex and free cash flow are defined and reconciled in "Supplemental Information" below.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 18

Item 2. MD&A - Results of Operations

Results of Operations - Three Months Ended March 31, 2023 and 2022

Operating Revenue

	Three Months Ended March 31,						Increase (Decrease)			% Increase (Decrease)
(in millions)(1)	2023			2022
Ticket - Main cabin	$	5,223		$	3,448		$	1,775		51	%
Ticket - Premium products	4,016			2,538			1,478			58	%
Loyalty travel awards	743			543			200			37	%
Travel-related services	429			378			51			13	%
Total passenger revenue	$	10,411		$	6,907		$	3,504		51	%
Cargo	209			289			(80)			(28)	%
Other	2,139			2,152			(13)			(1)	%
Total operating revenue	$	12,759		$	9,348		$	3,411		36	%
TRASM (cents)	20.80		¢	18.04		¢	2.76		¢	15	%
Third-party refinery sales	(1.49)			(2.29)			0.80			(35)	%
TRASM, adjusted(2)	19.30		¢	15.75		¢	3.55		¢	23	%

(1)Total amounts in the table above may not calculate exactly due to rounding.

(2)TRASM, adjusted is a non-GAAP financial measure. For additional information on adjustments to TRASM, see "Supplemental Information" below.

Compared to the March 2022 quarter, our operating revenue increased $3.4 billion, or 36%, due to the continued recovery in demand from the COVID-19 pandemic. The increase in operating revenue, on an 18% increase in capacity, resulted in a 15% increase in total revenue per available seat mile ("TRASM") and a 23% increase in TRASM, adjusted compared to the March 2022 quarter. The growth in passenger revenue was due to increased demand, with yield growth in premium products outpacing main cabin, in addition to the increased capacity.

See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales recorded in other revenue.

Passenger Revenue by Geographic Region

			Increase (Decrease) vs. Three Months Ended March 31, 2022
(in millions)	Three Months Ended March 31, 2023		Passenger Revenue		RPMs (Traffic)		ASMs (Capacity)		Passenger Mile Yield		PRASM		Load Factor
Domestic	$	7,594	37	%	13	%	7	%	21	%	27	%	4	pts
Atlantic	1,244		131	%	93	%	67	%	20	%	38	%	10	pts
Latin America	1,132		66	%	26	%	11	%	33	%	50	%	10	pts
Pacific	441		253	%	335	%	97	%	(19)	%	79	%	41	pts
Total	$	10,411	51	%	28	%	18	%	17	%	27	%	6	pts

Domestic

Domestic passenger unit revenue ("PRASM") increased in the March 2023 quarter compared to the March 2022 quarter as a result of higher demand, as well as increased yield, during the March 2023 quarter. Domestic capacity increased seven percent compared to the March 2022 quarter and was fully recovered to pre-pandemic levels.

International

International passenger revenue for the March 2023 quarter increased compared to the March 2022 quarter in each geographic region.

In June 2022, the United States lifted its testing requirement for international travel, which has had a positive impact on international demand. In addition, other countries in our network have removed or eased travel restrictions, resulting in revenue improvement across all international regions.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 19

Item 2. MD&A - Results of Operations

In the Atlantic region, revenue and capacity surpassed pre-pandemic levels in the March 2023 quarter as consumers continue to show increased desire for trans-Atlantic travel. This has been led by demand for leisure destinations and improving business demand.

Latin America region revenue exceeded pre-pandemic levels during the March 2023 quarter, with capacity near pre-pandemic levels, due to continued strong demand for leisure destinations in Mexico, the Caribbean and Central America. We expect this trend to continue during the June 2023 quarter as demand for leisure destinations remains strong. We have also continued to implement our joint venture agreement with LATAM, announcing additional new routes between North and South America during the March 2023 quarter.

In the Pacific region, capacity and revenue in countries such as South Korea and Australia were fully recovered to pre-pandemic levels in the March 2023 quarter as travel restrictions were just beginning to ease in the March 2022 quarter. Additionally, China ended most of its pandemic-related travel restrictions in January 2023 and we expect to increase capacity to China based on demand during 2023.

Other Revenue

	Three Months Ended March 31,				Increase (Decrease)		% Increase (Decrease)
(in millions)	2023		2022
Refinery	$	916	$	1,187	$	(271)	(23)	%
Loyalty program	726		571		155		27	%
Ancillary businesses	231		209		22		11	%
Miscellaneous	266		185		81		44	%
Total other revenue	$	2,139	$	2,152	$	(13)	(1)	%

Refinery. Refinery sales to third parties decreased $271 million compared to the March 2022 quarter due to lower rates and volume. See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales recorded in other revenue.

Loyalty Program. Loyalty program revenue relates 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 driven by customer spend on American Express cards and new cardholder acquisitions. Revenues from our relationship with American Express increased in the March 2023 quarter compared to the March 2022 quarter, due to continued strength in co-brand card spend and card acquisitions.

Miscellaneous. Miscellaneous is primarily composed of revenues related to Delta Sky Club lounge access, including access provided to certain American Express cardholders, and codeshare agreements. The volume of these transactions has increased compared to the March 2022 quarter due to the ongoing recovery of our business.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 20

Item 2. MD&A - Results of Operations

Operating Expense

	Three Months Ended March 31,				Increase (Decrease)		% Increase (Decrease)(1)
(in millions)	2023		2022
Salaries and related costs	$	3,386	$	2,826	$	560	20	%
Aircraft fuel and related taxes	2,676		2,092		584		28	%
Ancillary businesses and refinery	1,125		1,382		(257)		(19)	%
Contracted services	1,010		753		257		34	%
Pilot agreement and related expenses	864		—		864		NM
Aircraft maintenance materials and outside repairs	585		465		120		26	%
Landing fees and other rents	584		504		80		16	%
Depreciation and amortization	564		506		58		11	%
Regional carrier expense	559		491		68		14	%
Passenger commissions and other selling expenses	500		312		188		60	%
Passenger service	416		275		141		51	%
Aircraft rent	132		122		10		8	%
Profit sharing	72		—		72		NM
Other	563		403		160		40	%
Total operating expense	$	13,036	$	10,131	$	2,905	29	%

(1)Certain variances are labeled as not meaningful ("NM") throughout management's discussion and analysis.

Salaries and Related Costs. In March 2023, Delta pilots ratified a new four-year Pilot Working Agreement effective January 1, 2023. The agreement includes numerous work rule changes and pay rate increases during the four-year term, including an initial pay rate increase of 18%. See the discussion below under pilot agreement and related expenses for additional information about the one-time impacts from this agreement.

Effective May 1, 2022, we implemented a 4% base pay increase for eligible employees. Additionally, we have approximately 13,000 more employees as of March 31, 2023 than at March 31, 2022 principally in flight operations, in-flight service, reservations and customer care, TechOps and airport customer service, in order to support our operations as demand and capacity return. Each of these items contributed to the increase in salaries and related costs during the March 2023 quarter compared to the March 2022 quarter.

In the March 2023 quarter, we announced a 5% base pay increase for eligible employees effective April 1, 2023.

Aircraft Fuel and Related Taxes. Fuel expense increased $584 million compared to the March 2022 quarter primarily due to a 15% increase in the market price of jet fuel and a 18% increase in consumption. We expect jet fuel prices to remain volatile throughout 2023.

See "Refinery Segment" below for additional details on the refinery's operations.

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)	2023		2022				2023		2022
Fuel purchase cost(1)	$	2,939	$	2,149	$	790	$	3.31	$	2.87	$	0.44
Fuel hedge impact	(41)		(4)		(37)		(0.05)		(0.01)		(0.04)
Refinery segment impact	(222)		(53)		(169)		(0.25)		(0.07)		(0.18)
Total fuel expense	$	2,676	$	2,092	$	584	$	3.01	$	2.79	$	0.22

(1)Market price for jet fuel at airport locations, including related taxes and transportation costs.

Ancillary Businesses and Refinery. Ancillary businesses and refinery includes expenses associated with refinery sales to third parties, aircraft maintenance services we provide to third parties and our vacation wholesale operations. Refinery sales to third parties decreased $271 million compared to the March 2022 quarter due to lower rates and volume.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 21

Item 2. MD&A - Results of Operations

Contracted Services. During the March 2023 quarter, demand and capacity increased compared to the March 2022 quarter due to the ongoing recovery of our operations. The continued restoration of our operations and associated higher volume-related expenses and inflationary pressures were the primary drivers for the increase in contracted services.

Pilot agreement and related expenses. In addition to the items in salaries and related costs above, the recently ratified pilot agreement also includes a provision for a one-time payment upon ratification in the March 2023 quarter of $735 million. Additionally, we recorded adjustments to other benefit-related items of approximately $130 million.

Aircraft Maintenance Materials and Outside Repairs. Maintenance expense increased compared to the March 2022 quarter as we continued to restore our operations and to support our operational reliability.

Passenger Commissions and Other Selling Expenses. Compared to the March 2022 quarter, passenger revenue increased in the March 2023 quarter which was the primary reason for the increase in passenger commissions and other selling expenses.

Passenger Service. Passenger service expenses increased compared to the March 2022 quarter due to higher volume-related expenses associated with increased demand.

Profit Sharing. Our profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual pre-tax profit and 20% of annual pre-tax profit above $2.5 billion, as defined by the terms of the program. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items.

Other. The increase in other is primarily due to higher volume-related expenses, such as travel and incidental costs, associated with increased demand.

Non-Operating Results

	Three Months Ended March 31,				Favorable (Unfavorable)
(in millions)	2023		2022
Interest expense, net	$	(227)	$	(274)	$	47
Gain/(loss) on investments, net	122		(147)		269
Loss on extinguishment of debt	(22)		(25)		3
Pension and related (expense)/benefit	(61)		73		(134)
Miscellaneous, net	(41)		(44)		3
Total non-operating expense, net	$	(229)	$	(417)	$	188

Interest expense, net. Interest expense, net includes interest expense and interest income. This decreased compared to the prior year period as a result of increased interest income and our debt reduction initiatives. During 2022, we made payments of approximately $4.5 billion related to our debt and finance lease obligations, which included approximately $2.3 billion of early repayment activity. We have continued to pay down our debt during the three months ended March 31, 2023 with $1.2 billion of payments on debt and finance lease obligations, including $468 million of principal amounts for the early repurchase of various secured notes and a portion of the SkyMiles Term Loan on the open market and made early principal repayments of $227 million on various notes secured by aircraft. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities.

Gain/(loss) on investments, net. Changes in the valuation of investments accounted for at fair value are recorded in gain/(loss) on investments, net and are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in companies without publicly-traded shares. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for additional information on our equity investments measured at fair value on a recurring basis.

Loss on extinguishment of debt. Loss on extinguishment of debt reflects the losses incurred in the early repayment of the notes mentioned above.

Pension and related (expense)/benefit. Pension and related (expense)/benefit reflects the net periodic (cost)/benefit of our pension and other postretirement and postemployment benefit plans. The unfavorable movement in pension and related (expense)/benefit is due to lower plan assets as of December 31, 2022, compared to December 31, 2021, primarily as a result of broad market declines in 2022.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 22

Item 2. MD&A - Income Taxes

Miscellaneous, net. Miscellaneous, net primarily includes foreign exchange gains/(losses), charitable contributions and our share of our equity method investments net results.

Income Taxes

We project our annual effective tax rate for 2023 will be between 23% and 26%. Our effective tax rate in 2023 may be impacted by mark-to-market adjustments on our equity investments which are considered capital assets for tax purposes. In certain interim periods, we may have adjustments to our net deferred tax assets as a result of changes in prior year estimates, changes in our mark-to-market equity investments and tax laws enacted during the period, which will impact the effective tax rate for that interim period.

Refinery Segment

The refinery operated by Monroe primarily produces gasoline, diesel and jet fuel. Monroe exchanges the non-jet fuel products the refinery produces with third parties for jet fuel consumed in our airline operations. The jet fuel produced and procured through exchanging gasoline and diesel fuel produced by the refinery provided approximately 200,000 barrels per day, or approximately 75% of our consumption, for use in our airline operations.

Refinery segment financial information
	Three Months Ended March 31,				Increase (Decrease)
(in millions, except per gallon data)	2023		2022
Exchange products	$	714	$	809	$	(95)
Sales of refined products	126		26		100
Sales to airline segment	596		291		305
Third party refinery sales	916		1,187		(271)
Operating revenue	$	2,352	$	2,313	$	39
Operating income	$	222	$	53	$	169
Refinery segment impact on airline average price per fuel gallon	$	(0.25)	$	(0.07)	$	(0.18)

The refinery generated higher operating income in the three months ended March 31, 2023 compared to the three months ended March 31, 2022, driven by increased sales volumes and higher realized margins on refined product sales.

A refinery is subject to annual U.S. Environmental Protection Agency ("EPA") requirements to blend renewable fuels into the gasoline and on-road diesel fuel it produces. Alternatively, a refinery may purchase Renewable Identification Numbers ("RINs") from third parties in the secondary market. The Monroe refinery purchases the majority of its RINs in the secondary market. Observable RINs prices increased slightly during the March 2023 quarter and Monroe incurred $103 million in RINs compliance costs during the three months ended March 31, 2023 compared to $85 million in the three months ended March 31, 2022.

At March 31, 2023, we had a net fair value obligation of $38 million related to RINs compliance costs. Our obligation as of March 31, 2023 was calculated using the Renewable Fuel Standard ("RFS") volume requirements, which were finalized in 2022 for 2021 and 2022 obligations, and proposed in 2022 for 2023 obligations. In March 2023, we settled a portion of our 2021 RINs obligation with the EPA. We expect to settle the remaining 2021 and our entire 2022 RINs obligation by the 2022 compliance deadline, which the EPA has not yet finalized.

For more information regarding the refinery's results, see Note 9 of the Notes to the Condensed Consolidated Financial Statements.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 23

Item 2. MD&A - Operating Statistics

Operating Statistics

	Three Months Ended March 31,						% Increase (Decrease)
Consolidated(1)	2023			2022
Revenue passenger miles (in millions) ("RPM")	49,687			38,700			28	%
Available seat miles (in millions) ("ASM")	61,351			51,810			18	%
Passenger mile yield	20.95		¢	17.85		¢	17	%
Passenger revenue per available seat mile ("PRASM")	16.97		¢	13.33		¢	27	%
Total revenue per available seat mile ("TRASM")	20.80		¢	18.04		¢	15	%
TRASM, adjusted(2)	19.30		¢	15.75		¢	23	%
Cost per available seat mile ("CASM")	21.25		¢	19.56		¢	9	%
CASM-Ex(2)	13.86		¢	13.24		¢	5	%
Passenger load factor	81		%	75		%	6	pts
Fuel gallons consumed (in millions)	888			751			18	%
Average price per fuel gallon(3)	$	3.01		$	2.79		8	%
Average price per fuel gallon, adjusted(2)(3)	$	3.06		$	2.79		10	%

(1)Includes the operations of our regional carriers under capacity purchase agreements.

(2)Non-GAAP financial measures defined and reconciled to TRASM, CASM and average fuel price per gallon, respectively, in "Supplemental Information" below.

(3)Includes the impact of fuel hedge activity and refinery segment results.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 24

Item 2. MD&A - Fleet Information

Fleet Information

Our operating aircraft fleet, purchase commitments and options at March 31, 2023 are summarized in the following table.

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	3.3
A220-300	15	—	—	15	1.6	59	26
A319-100	57	—	—	57	21.1
A320-200	61	—	—	61	27.5
A321-200	63	22	42	127	4.3
A321-200neo	25	—	—	25	0.4	130	70
A330-200	11	—	—	11	18.0
A330-300	28	—	3	31	14.2
A330-900neo	13	3	5	21	1.8	17
A350-900	17	—	11	28	4.3	16
B-717-200	10	53	3	66	21.7
B-737-800	73	4	—	77	21.5
B-737-900ER	112	2	49	163	7.2
B-737-10	—	—	—	—	—	100	30
B-757-200	100	—	—	100	25.6
B-757-300	16	—	—	16	20.1
B-767-300ER	45	—	—	45	27.0
B-767-400ER	21	—	—	21	22.2
Total	708	88	113	909	14.6	322	126

(1)Includes both active and temporarily parked aircraft. Excludes certain aircraft we own or lease that are operated by regional carriers on our behalf shown in the table below.

The table below summarizes the aircraft operated by regional carriers on our behalf at March 31, 2023.

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)	11	18	123	—	—	152
SkyWest Airlines, Inc.	—	6	38	—	84	128
Republic Airways, Inc.	—	—	—	11	46	57
Total	11	24	161	11	130	337

(1)Includes both active and temporarily parked aircraft. We own 216 and have operating leases for three of these regional aircraft. The remainder are owned or leased by SkyWest Airlines, Inc. or Republic Airways, Inc.

(2)Endeavor Air, Inc. is a wholly owned subsidiary of Delta.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 25

Item 2. MD&A - Financial Condition and Liquidity

Financial Condition and Liquidity

As of March 31, 2023, we had $9.5 billion in cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities ("liquidity"). We expect to meet our liquidity needs for the next twelve months with cash and cash equivalents, short-term investments, restricted cash equivalents and cash flows from operations. We expect to meet our long-term liquidity needs with cash flows from operations and financing arrangements.

Sources and Uses of Liquidity

Operating Activities

We generated cash flows from operations of $2.2 billion and $1.8 billion in the three months ended March 31, 2023 and 2022, respectively. We expect to continue generating positive cash flows from operations during the remainder of 2023.

Our operating cash flow is impacted by the following factors:

Seasonality of Advance Ticket Sales. We sell tickets for air travel in advance of the customer's travel date. When we receive a cash payment at the time of sale, we record the cash received on advance sales as deferred revenue in air traffic liability. The air traffic liability typically increases during the winter and spring months as advance ticket sales grow prior to the summer peak travel season and decreases during the summer and fall months.

Air traffic liability increased during the March 2023 quarter, as is typical with our usual seasonal trend. Additionally, we are seeing a shift in customers purchasing flights further in advance compared to historical patterns, enhancing the positive cash flow from advance ticket sales.

Fuel. Fuel expense represented approximately 21% of our total operating expense for the three months ended March 31, 2023 and 2022. The market price for jet fuel is volatile, which can impact the comparability of our periodic cash flows from operations. Although the average fuel price per gallon decreased during the three months ended March 31, 2023, fuel costs remain higher compared to historical levels. We expect jet fuel prices to remain volatile throughout 2023. Fuel consumption was also higher during the three months ended March 31, 2023 compared to the prior year period due to the increase in capacity. We expect that fuel consumption will continue to increase throughout 2023, as we plan for our full year system capacity to be close to 2019 capacity levels, partially offset by increases in fuel efficiency of our fleet.

Profit Sharing. Our broad-based employee profit sharing program provides that for each year in which we have an annual pre-tax profit, as defined by the terms of the program, we will pay a specified portion of that profit to employees. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. During the three months ended March 31, 2023, we accrued $72 million in profit sharing expense based on the year-to-date performance and current expectations for 2023 profit.

We paid $563 million in profit sharing in February 2023 related to our 2022 pre-tax profit in recognition of our employees' contributions toward achieving the year's financial results.

Pilot Agreement Payment. In March 2023, Delta pilots ratified a new four-year Pilot Working Agreement effective January 1, 2023. The agreement includes numerous work rule changes and pay rate increases during the four-year term, including an initial pay rate increase of 18%. The agreement also includes a provision for a one-time payment upon ratification in the March 2023 quarter of $735 million. Additionally, we recorded adjustments to other benefit-related items of approximately $130 million.

Sale of Miles to Participating Companies. Customers earn miles based on their spending with participating companies such as credit card companies, hotels, car rental agencies and ridesharing companies with which we have marketing agreements to sell miles. Payments are typically due to us monthly based on the volume of miles sold during the period. Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. Total cash sales to American Express were $1.7 billion in the March 2023 quarter, an increase of approximately 38% compared to the March 2022 quarter.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 26

Item 2. MD&A - Financial Condition and Liquidity

Investing Activities

Short-Term Investments. During the three months ended March 31, 2023, we purchased a net of $102 million in short-term investments. See Note 3 of the Notes to the Condensed Consolidated Financial Statements for further information on these investments.

Capital Expenditures. Our capital expenditures were $1.0 billion and $1.8 billion for the three months ended March 31, 2023 and 2022, respectively. Our capital expenditures are primarily related to the purchases of aircraft, airport construction projects, fleet modifications and technology enhancements.

We have committed to future aircraft purchases and have obtained, but are under no obligation to use, long-term financing commitments for a substantial portion of the purchase price of the aircraft. Excluding the New York-LaGuardia airport project discussed below, our expected 2023 capital spend of approximately $5.5 billion will be primarily for aircraft, including deliveries and advance deposit payments, as well as fleet modifications and technology enhancements and may vary depending on financing decisions.

New York-LaGuardia Redevelopment. As part of the terminal redevelopment project at LaGuardia Airport, we are partnering with the Port Authority to replace Terminals C and D with a new state-of-the-art terminal facility. Construction is ongoing and is being phased to limit passenger inconvenience. Due to an acceleration effort that commenced in 2020, completion is expected by 2025.

We currently expect our net project costs to be approximately $4.3 billion and we bear the risks of project construction, including any potential cost over-runs. Using funding primarily provided by existing financing arrangements, we expect to spend approximately $500 million on this project during 2023, of which $109 million was incurred in the three months ended March 31, 2023.

Los Angeles International Airport ("LAX"). We have an ongoing terminal redevelopment project at LAX to modernize, update and provide post-security connection to Terminals 2 and 3. Construction is expected to be completed in 2023 with a total cost of approximately $2.4 billion. A substantial majority of the project costs are being funded through the Regional Airports Improvement Corporation ("RAIC"), a California public benefit corporation, using a revolving credit facility provided by a group of lenders. We have guaranteed the obligations of the RAIC under the credit facility and the revolving credit facility agreement was most recently amended in January 2023, decreasing the revolver capacity to $700 million.

Financing Activities

Debt and Finance Leases. In the three months ended March 31, 2023, we had cash outflows of $1.2 billion related to repayments of our debt and finance lease obligations, including $468 million of principal amounts for the early repurchase of various secured notes and a portion of the SkyMiles Term Loan on the open market and made early principal repayments of $227 million on various notes secured by aircraft. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities. In the March 2023 quarter, both Fitch and S&P credit rating agencies upgraded outlooks for Delta to stable and positive, respectively.

The principal amount of our debt and finance leases was $22.1 billion at March 31, 2023.

Undrawn Lines of Credit

As of March 31, 2023, 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, 2023 that did not affect the availability of our revolving credit facilities.

Covenants

We were in compliance with the covenants in our debt agreements at March 31, 2023.

Critical Accounting Estimates

There have been no material changes in our Critical Accounting Estimates from the information provided in the "Critical Accounting Estimates" section of "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 27

Item 2. MD&A - Supplemental Information

Supplemental Information

We sometimes use information (non-GAAP financial measures) that is derived from the Condensed Consolidated Financial Statements, but that is not presented in accordance with GAAP. Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

Included below are reconciliations of non-GAAP measures used within this Form 10-Q to the most directly comparable GAAP financial measures. Reconciliations below may not calculate exactly due to rounding. These reconciliations include certain adjustments to GAAP measures to provide comparability between the reported periods, if applicable, and for the reasons indicated below:

•MTM adjustments and settlements on hedges. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts settled during the applicable period.

•One-time pilot agreement expenses. In March 2023, Delta pilots ratified a new four-year Pilot Working Agreement effective January 1, 2023. The agreement includes numerous work rule changes and pay rate increases during the four-year term, including an initial pay rate increase of 18%. The agreement also includes a provision for a one-time payment upon ratification in the March 2023 quarter of $735 million. Additionally, we recorded adjustments to other benefit-related items of approximately $130 million. Adjusting for these expenses allows investors to better understand and analyze our core cost performance.

•Restructuring charges. During 2020, we recorded restructuring charges for items such as fleet impairments and voluntary early retirement and separation programs following strategic business decisions in response to the COVID-19 pandemic. During 2022, we recognized adjustments to certain of those restructuring charges, representing changes in our estimates.

•Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.

•Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance.

•Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Operating income/(loss), adjusted reconciliation
	Three Months Ended March 31,
(in millions)	2023		2022
Operating loss	$	(277)	$	(783)
Adjusted for:
MTM adjustments and settlements on hedges	(41)		(4)
One-time pilot agreement expenses	864		—
Restructuring charges	—		(5)
Operating income/(loss), adjusted	$	546	$	(793)

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 28

Item 2. MD&A - Supplemental Information

Operating expense, adjusted reconciliation
	Three Months Ended March 31,
(in millions)	2023		2022
Operating expense	$	13,036	$	10,131
Adjusted for:
MTM adjustments and settlements on hedges	41		4
Third-party refinery sales	(916)		(1,187)
One-time pilot agreement expenses	(864)		—
Restructuring charges	—		5
Operating expense, adjusted	$	11,296	$	8,954

Fuel expense, adjusted reconciliation
					Average Price Per Gallon
	Three Months Ended March 31,				Three Months Ended March 31,
(in millions, except per gallon data)	2023		2022		2023		2022
Total fuel expense	$	2,676	$	2,092	$	3.01	$	2.79
Adjusted for:
MTM adjustments and settlements on hedges	41		4		0.05		0.01
Total fuel expense, adjusted	$	2,718	$	2,097	$	3.06	$	2.79

TRASM, adjusted reconciliation
	Three Months Ended March 31,
	2023		2022
TRASM (cents)	20.80	¢	18.04	¢
Adjusted for:
Third-party refinery sales	(1.49)		(2.29)
TRASM, adjusted	19.30	¢	15.75	¢

CASM-Ex reconciliation
	Three Months Ended March 31,
	2023		2022
CASM (cents)	21.25	¢	19.56	¢
Adjusted for:
Aircraft fuel and related taxes	(4.36)		(4.04)
Third-party refinery sales	(1.49)		(2.29)
Profit sharing	(0.12)		—
One-time pilot agreement expenses	(1.41)		—
Restructuring charges	—		0.01
CASM-Ex	13.86	¢	13.24	¢

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 29

Item 2. MD&A - Supplemental Information

Free Cash Flow

The following table shows a reconciliation of net cash provided by operating activities (a GAAP measure) to free cash flow (a non-GAAP financial measure). We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Adjustments include:

•Net purchases of short-term investments. Net purchases of short-term investments represent the net purchase and sale activity of investments and marketable securities in the period, including gains and losses. We adjust for this activity to provide investors a better understanding of the company's free cash flow generated by our operations.

•Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either reimbursed by a third party or funded with restricted cash specific to these projects.

•Financed aircraft acquisitions. This adjustment reflects aircraft deliveries that are leased as capital expenditures. The adjustment is based on their original contractual purchase price or an estimate of the aircraft's fair value and provides a more meaningful view of our investing activities.

•Pilot agreement payment. In March 2023, Delta pilots ratified a new four-year Pilot Working Agreement effective January 1, 2023. The agreement includes numerous work rule changes and pay rate increases during the four-year term, including an initial pay rate increase of 18%. The agreement also includes a provision for a one-time payment upon ratification in the March 2023 quarter of $735 million. We adjust for this item to provide investors a better understanding of our recurring free cash flow generated by our operations.

Free cash flow reconciliation
	Three Months Ended March 31,
(in millions)	2023
Net cash provided by operating activities	$	2,235
Net cash used in investing activities	(1,100)
Adjusted for:
Net purchases of short-term investments	102
Net cash flows related to certain airport construction projects and other	19
Financed aircraft acquisitions	(137)
Pilot agreement payment	735
Free cash flow	$	1,853

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 30

Item 3. Market Risk

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in market risk from the information provided in "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Our management, including our Chief Executive Officer and Chief Financial Officer, performed an evaluation of our disclosure controls and procedures, which have been designed to permit us to effectively identify and timely disclose important information. Our management, including our Chief Executive Officer and Chief Financial Officer, concluded that the controls and procedures were effective as of March 31, 2023 to ensure that material information was accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

During the three months ended March 31, 2023, we did not make any changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

"Item 3. Legal Proceedings" of our Form 10-K includes a discussion of our legal proceedings. There have been no material changes from the legal proceedings described in our Form 10-K.

ITEM 1A. RISK FACTORS

“Item 1A. Risk Factors” of our Form 10-K includes a discussion of our known material risk factors, other than risks that could apply to any issuer or offering. There have been no material changes from the risk factors described in our Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table presents information with respect to purchases of common stock we made during the March 2023 quarter. The table reflects shares withheld from employees to satisfy certain tax obligations due in connection with grants of stock under the Delta Air Lines, Inc. Performance Compensation Plan (the "Plan"). The Plan provides for the withholding of shares to satisfy tax obligations. It does not specify a maximum number of shares that can be withheld for this purpose. The shares of common stock withheld to satisfy tax withholding obligations may be deemed to be "issuer purchases" of shares that are required to be disclosed pursuant to this Item.

Shares purchased / withheld from employee awards during the March 2023 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 2023	26,294	$	38.80	26,294	$	—
February 2023	575,067	$	39.78	575,067	$	—
March 2023	2,334	$	36.74	2,334	$	—
Total	603,695			603,695

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 31

ITEM 6. EXHIBITS

(a) Exhibits    

3.1(a)    Delta's Amended and Restated Certificate of Incorporation (Filed as Exhibit 3.1 to Delta's Current Report on Form 8-K as filed on April 30, 2007).*

3.1 (b)    Amendment to Amended and Restated Certificate of Incorporation (Filed as Exhibit 3.1 to Delta's Current Report on Form 8-K as filed on June 27, 2014).*

3.2    Delta's Bylaws (Filed as Exhibit 3.1 to Delta's Current Report on Form 8-K as filed on December 9, 2022).*

4.1    Description of Registrant's Securities (Filed as Exhibit 4.1 to Delta's Annual Report on Form 10-K for the year ended December 31, 2020).*

15    Letter from Ernst & Young LLP regarding unaudited interim financial information

31.1    Certification by Delta's Chief Executive Officer with respect to Delta's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023

31.2    Certification by Delta's Chief Financial Officer with respect to Delta's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023

32    Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code by Delta's Chief Executive Officer and Chief Financial Officer with respect to Delta's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023

101.INS    Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.

101.SCH    Inline XBRL Taxonomy Extension Schema Document

101.CAL    Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF    Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB    Inline XBRL Taxonomy Extension Labels Linkbase Document

101.PRE    Inline XBRL Taxonomy Extension Presentation Linkbase Document

104    The cover page from this Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL (included in Exhibit 101)

_______________

*    Incorporated by reference.

**    Portions of this exhibit have been omitted as confidential information.

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 32

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Delta Air Lines, Inc.
	(Registrant)
	/s/ William C. Carroll
	William C. Carroll
	Senior Vice President - Controller
	(Principal Accounting Officer)
April 13, 2023

Delta Air Lines, Inc. | March 2023 Form 10-Q                                 33

EX-15

Exhibit 15

April 13, 2023

The Board of Directors and Stockholders of

Delta Air Lines, Inc.

We are aware of the incorporation by reference in the Registration Statements (Form S-3 No.’s 333-262678 and 333-238725 and Form S-8 No.’s 333-142424, 333-149308, 333-154818, 333-151060 and 333-212525) of Delta Air Lines, Inc. for the registration of its securities of our report dated April 13, 2023 relating to the unaudited condensed consolidated interim financial statements of Delta Air Lines, Inc. that are included in its Form 10-Q for the quarter ended March 31, 2023.

/s/ Ernst & Young LLP

EX-31.1

Exhibit 31.1

I, Edward H. Bastian, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Delta Air Lines, Inc. ("Delta") for the quarterly period ended March 31, 2023;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Delta as of, and for, the periods presented in this report;

4.Delta's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Delta and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Delta, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of Delta's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in Delta's internal control over financial reporting that occurred during Delta's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Delta's internal control over financial reporting; and

5.Delta's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Delta's auditors and the Audit Committee of Delta's Board of Directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Delta's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in Delta's internal control over financial reporting.

April 13, 2023	/s/ Edward H. Bastian
	Edward H. Bastian
	Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Daniel C. Janki, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Delta Air Lines, Inc. ("Delta") for the quarterly period ended March 31, 2023;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Delta as of, and for, the periods presented in this report;

4.Delta's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Delta and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Delta, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of Delta's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in Delta's internal control over financial reporting that occurred during Delta's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Delta's internal control over financial reporting; and

5.Delta's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Delta's auditors and the Audit Committee of Delta's Board of Directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Delta's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in Delta's internal control over financial reporting.

April 13, 2023	/s/ Daniel C. Janki
	Daniel C. Janki
	Executive Vice President and Chief Financial Officer

EX-32

Exhibit 32

April 13, 2023

Securities and Exchange Commission

100 F Street, NE

Washington, D.C. 20549

Ladies and Gentlemen:

     The certifications set forth below are hereby submitted to the Securities and Exchange Commission pursuant to, and solely for the purpose of complying with, Section 1350 of Chapter 63 of Title 18 of the United States Code in connection with the filing on the date hereof with the Securities and Exchange Commission of the quarterly report on Form 10-Q of Delta Air Lines, Inc. ("Delta") for the quarterly period ended March 31, 2023 (the "Report").

     Each of the undersigned, the Chief Executive Officer and the Executive Vice President and Chief Financial Officer, respectively, of Delta, hereby certifies that, as of the end of the period covered by the Report:

1.such Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Delta.

/s/ Edward H. Bastian

Edward H. Bastian

Chief Executive Officer 

/s/ Daniel C. Janki

Daniel C. Janki

Executive Vice President and Chief Financial Officer

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Cover	3 Months Ended
	Mar. 31, 2023 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-5424
Entity Registrant Name	DELTA AIR LINES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	58-0218548
Entity Address, Address Line One	Post Office Box 20706
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30320-6001
City Area Code	404
Local Phone Number	715-2600
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	DAL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000027904
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	642,716,623

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 3,215	$ 3,266
Short-term investments	3,396	3,268
Accounts receivable, net of allowance for uncollectible accounts of $24 and $23	3,224	3,176
Fuel, expendable parts and supplies inventories, net of allowance for obsolescence of $134 and $136	1,379	1,424
Prepaid expenses and other	2,187	1,877
Total current assets	13,401	13,011
Noncurrent Assets:
Property and equipment, net of accumulated depreciation and amortization of $20,881 and $20,370	33,249	33,109
Operating lease right-of-use assets	7,067	7,036
Goodwill	9,753	9,753
Identifiable intangibles, net of accumulated amortization of $904 and $902	5,990	5,992
Equity investments	2,249	2,128
Deferred income taxes, net	432	325
Other noncurrent assets	993	934
Total noncurrent assets	59,733	59,277
Total assets	73,134	72,288
Current Liabilities:
Current maturities of debt and finance leases	2,136	2,359
Current maturities of operating leases	724	714
Accounts payable	4,754	5,106
Accrued salaries and related benefits	2,828	3,288
Fuel card obligation	1,100	1,100
Other accrued liabilities	2,003	1,779
Total current liabilities	28,417	25,940
Noncurrent Liabilities:
Debt and finance leases	19,823	20,671
Pension, postretirement and related benefits	3,730	3,707
Noncurrent operating leases	6,877	6,866
Other noncurrent liabilities	3,614	4,074
Total noncurrent liabilities	38,457	39,766
Commitments and Contingencies
Stockholders' Equity:
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 653,855,351 and 651,800,786 shares issued	0	0
Additional paid-in capital	11,544	11,526
Retained earnings	807	1,170
Accumulated other comprehensive loss	(5,754)	(5,801)
Treasury stock, at cost, 11,138,728 and 10,535,033 shares	(337)	(313)
Total stockholders' equity	6,260	6,582
Total liabilities and stockholders' equity	73,134	72,288
Air traffic
Current Liabilities:
Deferred revenue liability, current	11,187	8,160
Noncurrent Liabilities:
Loyalty program deferred revenue		100
Loyalty program
Current Liabilities:
Deferred revenue liability, current	3,685	3,434
Noncurrent Liabilities:
Loyalty program deferred revenue	$ 4,413	$ 4,448

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Allowance for uncollectible accounts	$ 24	$ 23
Allowance for obsolescence	134	136
Noncurrent Assets:
Accumulated depreciation and amortization	20,881	20,370
Accumulated amortization	$ 904	$ 902
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)	653,855,351	651,800,786
Treasury stock, at cost (shares)	11,138,728	10,535,033

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Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Revenue:
Total operating revenue	$ 12,759	$ 9,348
Operating Expense:
Salaries and related costs	3,386	2,826
Aircraft fuel and related taxes	2,676	2,092
Ancillary businesses and refinery	1,125	1,382
Contracted services	1,010	753
Pilot agreement and related expenses	864	0
Aircraft maintenance materials and outside repairs	585	465
Landing fees and other rents	584	504
Depreciation and amortization	564	506
Regional carrier expense	559	491
Passenger commissions and other selling expenses	500	312
Passenger service	416	275
Aircraft rent	132	122
Profit sharing	72	0
Other	563	403
Total operating expense	13,036	10,131
Operating Loss	(277)	(783)
Non-Operating Expense:
Interest expense, net	(227)	(274)
Gain/(loss) on investments, net	122	(147)
Loss on extinguishment of debt	(22)	(25)
Pension and related (expense)/benefit	(61)	73
Miscellaneous, net	(41)	(44)
Total non-operating expense, net	(229)	(417)
Loss Before Income Taxes	(506)	(1,200)
Income Tax Benefit	143	260
Net Loss	$ (363)	$ (940)
Basic Loss Per Share (USD per share)	$ (0.57)	$ (1.48)
Diluted Loss Per Share (USD per share)	$ (0.57)	$ (1.48)
Comprehensive Loss	$ (316)	$ (881)
Passenger
Operating Revenue:
Total operating revenue	10,411	6,907
Cargo
Operating Revenue:
Total operating revenue	209	289
Other
Operating Revenue:
Total operating revenue	$ 2,139	$ 2,152

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Cash Provided by Operating Activities
Net Cash Provided by Operating Activities	$ 2,235	$ 1,771
Property and equipment additions:
Flight equipment, including advance payments	(630)	(1,276)
Ground property and equipment, including technology	(370)	(490)
Purchase of short-term investments	(999)	(226)
Redemption of short-term investments	897	1,346
Purchase of equity investments	0	(100)
Other, net	2	(3)
Net cash used in investing activities	(1,100)	(749)
Cash Flows from Financing Activities:
Payments on debt and finance lease obligations	(1,166)	(1,443)
Other, net	(13)	(13)
Net cash used in financing activities	(1,179)	(1,456)
Net Decrease in Cash, Cash Equivalents and Restricted Cash Equivalents	(44)	(434)
Cash, cash equivalents and restricted cash equivalents at beginning of period	3,473	8,569
Cash, cash equivalents and restricted cash equivalents at end of period	3,429	8,135
Non-Cash Transactions:
Flight and ground equipment acquired under finance leases	25	33
Right-of-use assets acquired under operating leases	208	359
Operating leases converted to finance leases	30	9
Equity investments and other financings	0	330
Current Assets:
Cash and cash equivalents	3,215	7,705
Restricted cash included in prepaid expenses and other	160	170
Noncurrent Assets:
Restricted cash included in other noncurrent assets	54	260
Total cash, cash equivalents and restricted cash equivalents	$ 3,429	$ 8,135

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Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions		Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Beginning balance (shares) at Dec. 31, 2021			650,000,000
Beginning balance at Dec. 31, 2021		$ 3,887	$ 0	$ 11,447	$ (148)	$ (7,130)	$ (282)
Beginning balance, Treasury Stock (shares) at Dec. 31, 2021							10,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(940)			(940)
Other comprehensive income		59				59
Common stock issued for employee equity awards (shares)	[1]		2,000,000				1,000,000
Common stock issued for employee equity awards	[1]	(15)		15			$ (30)
Ending balance (shares) at Mar. 31, 2022			652,000,000
Ending balance at Mar. 31, 2022		2,991	$ 0	11,462	(1,088)	(7,071)	$ (312)
Ending balance, Treasury Stock (shares) at Mar. 31, 2022							11,000,000
Beginning balance (shares) at Dec. 31, 2022			652,000,000
Beginning balance at Dec. 31, 2022		$ 6,582	$ 0	11,526	1,170	(5,801)	$ (313)
Beginning balance, Treasury Stock (shares) at Dec. 31, 2022		10,535,033					11,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		$ (363)			(363)
Other comprehensive income		47				47
Common stock issued for employee equity awards (shares)	[2]		2,000,000
Common stock issued for employee equity awards	[2]	(6)		18			$ (24)
Ending balance (shares) at Mar. 31, 2023			654,000,000
Ending balance at Mar. 31, 2023		$ 6,260	$ 0	$ 11,544	$ 807	$ (5,754)	$ (337)
Ending balance, Treasury Stock (shares) at Mar. 31, 2023		11,138,728					11,000,000

[1] Treasury shares were withheld for payment of taxes, at a weighted average price per share of $41.00 in the March 2022 quarter.

[2] Treasury shares were withheld for payment of taxes, at a weighted average price per share of $39.73 in the March 2023 quarter.

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Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Treasury shares withheld for payment of taxes, weighted average price per share (USD per share)	$ 39.73	$ 41.00

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2023

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, 2022.

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 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, 2023 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

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Passenger Revenue

	Three Months Ended March 31,
(in millions)	2023		2022
Ticket	$	9,239	$	5,986
Loyalty travel awards	743		543
Travel-related services	429		378
Total passenger revenue	$	10,411	$	6,907

Ticket

We recognized approximately $3.9 billion and $2.2 billion in passenger revenue during the three months ended March 31, 2023 and 2022, respectively, that had been recorded in our air traffic liability balance at the beginning of those periods.

As of March 31, 2023, our air traffic liability was recorded as a current liability. As of December 31, 2022, our air traffic liability was $8.3 billion, of which $100 million was included in other noncurrent liabilities on our Consolidated Balance Sheet ("balance sheet").

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. Loyalty travel awards revenue is related to the redemption of miles for air travel. 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, 2023 and 2022, total cash sales from marketing agreements related to our loyalty program were $1.7 billion and $1.2 billion, respectively, which are allocated to travel and other performance obligations.

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.

Loyalty program activity
(in millions)	2023		2022
Balance at January 1	$	7,882	$	7,559
Miles earned	999		658
Miles redeemed for air travel	(743)		(543)
Miles redeemed for non-air travel and other	(40)		(30)
Balance at March 31	$	8,098	$	7,644

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

	Three Months Ended March 31,
(in millions)	2023		2022
Refinery	$	916	$	1,187
Loyalty program	726		571
Ancillary businesses	231		209
Miscellaneous	266		185
Total other revenue	$	2,139	$	2,152

Refinery. This represents refinery sales to third parties. See Note 9, "Segments," for more information on revenue recognition within our refinery segment.

Loyalty Program. Loyalty program revenue relates 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 derived from the total cash sales from marketing agreements, discussed above.

Ancillary Businesses. Ancillary businesses revenue represents revenues from aircraft maintenance services we provide to third parties and our vacation wholesale operations.

Miscellaneous. Miscellaneous is primarily composed of revenues related to Delta Sky Club lounge access, including access provided to certain American Express cardholders, and codeshare agreements.

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:

Passenger revenue by geographic region
	Passenger Revenue
	Three Months Ended March 31,
(in millions)	2023		2022
Domestic	$	7,594	$	5,563
Atlantic	1,244		539
Latin America	1,132		680
Pacific	441		125
Total	$	10,411	$	6,907

Operating revenue by geographic region
	Operating Revenue
	Three Months Ended March 31,
(in millions)	2023		2022
Domestic	$	9,396	$	7,549
Atlantic	1,548		776
Latin America	1,280		811
Pacific	535		212
Total	$	12,759	$	9,348

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTSAssets/(Liabilities) Measured at Fair Value on a Recurring Basis

(in millions)	March 31, 2023		Level 1		Level 2		Level 3
Cash equivalents	$	2,231	$	2,231	$	—	$	—
Restricted cash equivalents	213		213		—		—
Short-term investments
U.S. Government securities	1,501		162		1,339		—
Corporate obligations	1,756		—		1,756		—
Asset-backed securities	37		—		37		—
Other fixed income securities	102		—		102		—
Long-term investments	1,572		1,424		38		110
Fuel hedge contracts	(6)		—		(6)		—

(in millions)	December 31, 2022		Level 1		Level 2		Level 3
Cash equivalents	$	2,021	$	2,021	$	—	$	—
Restricted cash equivalents	206		206		—		—
Short-term investments
U.S. Government securities	1,587		122		1,465		—
Corporate obligations	1,614		—		1,614		—
Other fixed income securities	67		—		67		—
Long-term investments	1,450		1,305		38		107
Fuel hedge contracts	(47)		—		(47)		—

Cash Equivalents and Restricted Cash Equivalents. Cash equivalents generally consist of money market funds. Restricted cash equivalents generally consist of money market funds, time deposits, commercial paper and negotiable certificates of deposit, which primarily relate to certain self-insurance obligations and airport commitments as well as 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. Restricted cash equivalents are recorded in prepaid expenses and other and other noncurrent assets on our balance sheet. 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. The fair values of our short-term 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, 2023, the estimated fair value of our short-term investments was $3.4 billion. Of these investments, $3.0 billion are expected to mature in one year or less, with the remainder maturing in the second quarter of 2024. 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. 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 contracts, most of which have a duration of less than three months. 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 gains of $31 million and losses of $240 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 the three months ended March 31, 2023 and 2022, respectively. The gains recognized during the three months ended March 31, 2023 were composed of $41 million of mark-to-market gains and $10 million of settlements on contracts. The losses recognized during the March 2022 quarter were composed of $244 million of settlements on contracts and $4 million of mark-to-market gains. 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

3 Months Ended

Mar. 31, 2023

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.

Equity investments ownership interest and carrying value
	Accounting Treatment	Ownership Interest				Carrying Value
(in millions)		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Air France-KLM	Fair Value	3	%	3	%	$	135	$	97
China Eastern	Fair Value	2	%	2	%	184		189
CLEAR	Fair Value	5	%	5	%	217		227
Grupo Aeroméxico	Equity Method(1)	20	%	20	%	410		412
Hanjin KAL	Fair Value(2)	15	%	15	%	351		296
LATAM	Fair Value	10	%	10	%	455		403
Unifi Aviation	Equity Method(3)	49	%	49	%	164		165
Wheels Up	Fair Value(4)	21	%	21	%	33		54
Other investments	Various					300		285
Equity investments						$	2,249	$	2,128

(1)Results are included in miscellaneous, net in our income statement under non-operating expense.

(2)At March 31, 2023, we held 14.8% of the outstanding shares (including common and preferred), and 14.9% of the common shares, of Hanjin KAL.

(3)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 many of our airport locations.

(4)We elected to account for our investment under the fair value option.

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DEBT

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

DEBT

DEBT

Summary of outstanding debt by category
	Maturity			Interest Rate(s) Per Annum at			March 31,		December 31,
(in millions)	Dates			March 31, 2023			2023		2022
Unsecured Payroll Support Program Loans	2030	to	2031	1.00%			$	3,496	$	3,496
Unsecured notes	2023	to	2029	2.90%	to	7.38%	2,997		2,997
Financing arrangements secured by SkyMiles assets:
SkyMiles Notes(1)	2023	to	2028	4.50%	and	4.75%	5,007		5,144
SkyMiles Term Loan(1)(2)	2023	to	2027	8.56%			2,478		2,820
NYTDC Special Facilities Revenue Bonds(1)	2024	to	2045	4.00%	to	5.00%	2,778		2,838
Financing arrangements secured by aircraft:
Certificates(1)	2023	to	2028	2.00%	to	8.00%	1,790		1,802
Notes(1)(2)	2023	to	2033	6.11%	to	7.22%	553		813
Financing arrangements secured by slots, gates and/or routes:
2020 Senior Secured Notes	2025			7.00%			1,274		1,542
2018 Revolving Credit Facility(2)	2024	to	2025	Undrawn			—		—
Other financings(1)(2)	2023	to	2030	2.51%	to	5.00%	67		67
Other revolving credit facilities(2)	2023			Undrawn			—		—
Total secured and unsecured debt							$	20,440	$	21,519
Unamortized (discount)/premium and debt issue cost, net and other							(120)		(138)
Total debt							$	20,320	$	21,381
Less: current maturities							(1,830)		(2,055)
Total long-term debt							$	18,490	$	19,326

(1)Due in installments during the years shown above.

(2)Certain financings are comprised of variable rate debt. All variable rates are equal to LIBOR (generally subject to a floor), Secured Overnight Financing Rate ("SOFR") or another index rate plus a specified margin.

Availability Under Revolving Credit Facilities

As of March 31, 2023, 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, 2023 that did not affect the availability of our revolving credit facilities.

Early Settlement of Outstanding Notes

In the March 2023 quarter, we repurchased a principal amount of $468 million of various secured notes and a portion of the SkyMiles Term Loan on the open market and made early principal repayments of $227 million on various notes secured by aircraft. These payments resulted in a $22 million loss on extinguishment of debt recorded in non-operating expense in our income statement.

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.

Fair value of outstanding debt
(in millions)	March 31, 2023		December 31, 2022
Net carrying amount	$	20,320	$	21,381
Fair value	$	19,900	$	20,700

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, 2023.

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EMPLOYEE BENEFIT PLANS

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

Employee benefit plans net periodic cost (benefit)
	Pension Benefits				Other Postretirement and Postemployment Benefits
(in millions)	2023		2022		2023		2022
Three Months Ended March 31,
Service cost	$	—	$	—	$	18	$	18
Interest cost	213		153		50		32
Expected return on plan assets	(264)		(330)		—		(4)
Amortization of prior service credit	—		—		(1)		(1)
Recognized net actuarial loss	60		64		3		13
Net periodic cost (benefit)	$	9	$	(113)	$	70	$	58

Service cost is recorded in salaries and related costs in our income statement, while all other components are recorded within pension and related (expense)/benefit under non-operating expense.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Aircraft Purchase Commitments

Our future aircraft purchase commitments totaled approximately $18.7 billion at March 31, 2023.

Aircraft purchase commitments(1)
(in millions)	Total
Nine months ending December 31, 2023	$	2,360
2024	4,460
2025	4,290
2026	3,830
2027	2,580
Thereafter	1,200
Total	$	18,720

(1)The timing of these commitments is based on our contractual agreements with the aircraft manufacturers and may be subject to change based on modifications to those agreements or changes in delivery schedules.

Our future aircraft purchase commitments included the following aircraft at March 31, 2023:

Aircraft purchase commitments by fleet type
Aircraft Type	Purchase Commitments
A220-300	59
A321-200neo	130
A330-900neo	17
A350-900	16
B-737-10	100
Total	322

Legal Contingencies

We are involved in various legal proceedings related to employment practices, environmental issues, antitrust 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.

Employees Under Collective Bargaining Agreements

In March 2023, Delta pilots ratified a new four-year Pilot Working Agreement effective January 1, 2023. The agreement includes numerous work rule changes and pay rate increases during the four-year term, including an initial pay rate increase of 18%. The agreement also includes a provision for a one-time payment upon ratification in the March 2023 quarter of $735 million. Additionally, we recorded adjustments to other benefit-related items of approximately $130 million. These items are recorded within pilot agreement and related expenses in our income statement.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

Components of accumulated other comprehensive loss
(in millions)	Pension and Other Benefit Liabilities		Other		Tax Effect		Total
Balance at January 1, 2023	$	(6,624)	$	41	$	782	$	(5,801)
Reclassifications into earnings(1)	62		—		(15)		47
Balance at March 31, 2023	$	(6,562)	$	41	$	767	$	(5,754)

Balance at January 1, 2022	$	(8,355)	$	41	$	1,184	$	(7,130)
Reclassifications into earnings(1)	77		—		(18)		59
Balance at March 31, 2022	$	(8,278)	$	41	$	1,166	$	(7,071)

(1)Amounts reclassified from accumulated other comprehensive loss for pension and other benefit liabilities are recorded in pension and related (expense)/benefit in non-operating expense in our income statement.

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SEGMENTS

3 Months Ended

Mar. 31, 2023

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 from 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, 2023 and 2022 was $714 million and $809 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.

Financial information by segment
(in millions)	Airline		Refinery			Intersegment Sales/Other			Consolidated
Three Months Ended March 31, 2023
Operating revenue:	$	11,843	$	2,352					$	12,759
Sales to airline segment						$	(596)	(1)
Exchanged products						(714)		(2)
Sales of refined products						(126)
Operating (loss)/income	(499)		222		(3)	—			(277)
Interest expense, net	227		4			(4)			227
Depreciation and amortization	564		23			(23)		(3)	564
Total assets, end of period	70,183		3,005			(54)			73,134
Net fair value obligations, end of period	—		(38)			—			(38)
Capital expenditures	971		29			—			1,000
Three Months Ended March 31, 2022
Operating revenue:	$	8,161	$	2,313					$	9,348
Sales to airline segment						$	(291)	(1)
Exchanged products						(809)		(2)
Sales of refined products						(26)
Operating (loss)/income	(836)		53		(3)	—			(783)
Interest expense, net	274		2			(2)			274
Depreciation and amortization	506		23			(23)		(3)	506
Total assets, end of period	71,392		2,382			(26)			73,748
Net fair value obligations, end of period	—		(430)			—			(430)
Capital expenditures	1,749		17			—			1,766

(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 for jet fuel from the refinery by reference to the market index for the primary delivery location, which is New York Harbor.

(2)Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis.

(3)Refinery segment operating results, including depreciation and amortization, are included within aircraft fuel and related taxes in our income statement.

Fair Value Obligations

The net fair value obligations presented in the table above are related to renewable fuel compliance costs and presented net of any related assets or fixed price purchase agreements. Their value is 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, 2023 was calculated using the U.S. Environmental Protection Agency's ("EPA") Renewable Fuel Standard ("RFS") volume requirements, which were finalized in 2022 for 2021 and 2022 obligations, and proposed in 2022 for 2023 obligations. In March 2023, we settled a portion of our 2021 RINs obligation with the EPA. We expect to settle the remaining 2021 and our entire 2022 RINs obligation by the 2022 compliance deadline, which the EPA has not yet finalized.

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LOSS PER SHARE

3 Months Ended

Mar. 31, 2023

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 earnings per share calculation are not material. The following table shows the computation of basic and diluted loss per share:

Basic and diluted loss per share
	Three Months Ended March 31,
(in millions, except per share data)	2023		2022
Net loss	$	(363)	$	(940)
Basic weighted average shares outstanding	639		637
Dilutive effect of share-based instruments	—		—
Diluted weighted average shares outstanding	639		637
Basic loss per share	$	(0.57)	$	(1.48)
Diluted loss per share	$	(0.57)	$	(1.48)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2023

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, 2022.

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 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, 2023 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.

Cash Equivalents and Restricted Cash Equivalents

Cash Equivalents and Restricted Cash Equivalents. Cash equivalents generally consist of money market funds. Restricted cash equivalents generally consist of money market funds, time deposits, commercial paper and negotiable certificates of deposit, which primarily relate to certain self-insurance obligations and airport commitments as well as 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. Restricted cash equivalents are recorded in prepaid expenses and other and other noncurrent assets on our balance sheet. 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 and Long-Term Investments

Short-Term Investments. The fair values of our short-term 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.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. 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

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 contracts, most of which have a duration of less than three months. 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.

Fair Value Investments

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

Equity Method Investments. We record our share of our equity method investees' financial results in our income statement

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REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of disaggregation of revenue

Passenger Revenue

	Three Months Ended March 31,
(in millions)	2023		2022
Ticket	$	9,239	$	5,986
Loyalty travel awards	743		543
Travel-related services	429		378
Total passenger revenue	$	10,411	$	6,907

Other Revenue

	Three Months Ended March 31,
(in millions)	2023		2022
Refinery	$	916	$	1,187
Loyalty program	726		571
Ancillary businesses	231		209
Miscellaneous	266		185
Total other revenue	$	2,139	$	2,152

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.

Loyalty program activity
(in millions)	2023		2022
Balance at January 1	$	7,882	$	7,559
Miles earned	999		658
Miles redeemed for air travel	(743)		(543)
Miles redeemed for non-air travel and other	(40)		(30)
Balance at March 31	$	8,098	$	7,644

Schedule of revenue by geographic region

Our passenger and operating revenue by geographic region is summarized in the following tables:

Passenger revenue by geographic region
	Passenger Revenue
	Three Months Ended March 31,
(in millions)	2023		2022
Domestic	$	7,594	$	5,563
Atlantic	1,244		539
Latin America	1,132		680
Pacific	441		125
Total	$	10,411	$	6,907

Operating revenue by geographic region
	Operating Revenue
	Three Months Ended March 31,
(in millions)	2023		2022
Domestic	$	9,396	$	7,549
Atlantic	1,548		776
Latin America	1,280		811
Pacific	535		212
Total	$	12,759	$	9,348

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023

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

(in millions)	March 31, 2023		Level 1		Level 2		Level 3
Cash equivalents	$	2,231	$	2,231	$	—	$	—
Restricted cash equivalents	213		213		—		—
Short-term investments
U.S. Government securities	1,501		162		1,339		—
Corporate obligations	1,756		—		1,756		—
Asset-backed securities	37		—		37		—
Other fixed income securities	102		—		102		—
Long-term investments	1,572		1,424		38		110
Fuel hedge contracts	(6)		—		(6)		—

(in millions)	December 31, 2022		Level 1		Level 2		Level 3
Cash equivalents	$	2,021	$	2,021	$	—	$	—
Restricted cash equivalents	206		206		—		—
Short-term investments
U.S. Government securities	1,587		122		1,465		—
Corporate obligations	1,614		—		1,614		—
Other fixed income securities	67		—		67		—
Long-term investments	1,450		1,305		38		107
Fuel hedge contracts	(47)		—		(47)		—

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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Summary of equity investments ownership and carrying value - fair value

Equity investments ownership interest and carrying value
	Accounting Treatment	Ownership Interest				Carrying Value
(in millions)		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Air France-KLM	Fair Value	3	%	3	%	$	135	$	97
China Eastern	Fair Value	2	%	2	%	184		189
CLEAR	Fair Value	5	%	5	%	217		227
Grupo Aeroméxico	Equity Method(1)	20	%	20	%	410		412
Hanjin KAL	Fair Value(2)	15	%	15	%	351		296
LATAM	Fair Value	10	%	10	%	455		403
Unifi Aviation	Equity Method(3)	49	%	49	%	164		165
Wheels Up	Fair Value(4)	21	%	21	%	33		54
Other investments	Various					300		285
Equity investments						$	2,249	$	2,128

(1)Results are included in miscellaneous, net in our income statement under non-operating expense.

(2)At March 31, 2023, we held 14.8% of the outstanding shares (including common and preferred), and 14.9% of the common shares, of Hanjin KAL.

(3)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 many of our airport locations.

(4)We elected to account for our investment under the fair value option.

Summary of equity investments ownership and carrying value - equity method

Equity investments ownership interest and carrying value
	Accounting Treatment	Ownership Interest				Carrying Value
(in millions)		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Air France-KLM	Fair Value	3	%	3	%	$	135	$	97
China Eastern	Fair Value	2	%	2	%	184		189
CLEAR	Fair Value	5	%	5	%	217		227
Grupo Aeroméxico	Equity Method(1)	20	%	20	%	410		412
Hanjin KAL	Fair Value(2)	15	%	15	%	351		296
LATAM	Fair Value	10	%	10	%	455		403
Unifi Aviation	Equity Method(3)	49	%	49	%	164		165
Wheels Up	Fair Value(4)	21	%	21	%	33		54
Other investments	Various					300		285
Equity investments						$	2,249	$	2,128

(1)Results are included in miscellaneous, net in our income statement under non-operating expense.

(2)At March 31, 2023, we held 14.8% of the outstanding shares (including common and preferred), and 14.9% of the common shares, of Hanjin KAL.

(3)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 many of our airport locations.

(4)We elected to account for our investment under the fair value option.

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DEBT (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of debt

Summary of outstanding debt by category
	Maturity			Interest Rate(s) Per Annum at			March 31,		December 31,
(in millions)	Dates			March 31, 2023			2023		2022
Unsecured Payroll Support Program Loans	2030	to	2031	1.00%			$	3,496	$	3,496
Unsecured notes	2023	to	2029	2.90%	to	7.38%	2,997		2,997
Financing arrangements secured by SkyMiles assets:
SkyMiles Notes(1)	2023	to	2028	4.50%	and	4.75%	5,007		5,144
SkyMiles Term Loan(1)(2)	2023	to	2027	8.56%			2,478		2,820
NYTDC Special Facilities Revenue Bonds(1)	2024	to	2045	4.00%	to	5.00%	2,778		2,838
Financing arrangements secured by aircraft:
Certificates(1)	2023	to	2028	2.00%	to	8.00%	1,790		1,802
Notes(1)(2)	2023	to	2033	6.11%	to	7.22%	553		813
Financing arrangements secured by slots, gates and/or routes:
2020 Senior Secured Notes	2025			7.00%			1,274		1,542
2018 Revolving Credit Facility(2)	2024	to	2025	Undrawn			—		—
Other financings(1)(2)	2023	to	2030	2.51%	to	5.00%	67		67
Other revolving credit facilities(2)	2023			Undrawn			—		—
Total secured and unsecured debt							$	20,440	$	21,519
Unamortized (discount)/premium and debt issue cost, net and other							(120)		(138)
Total debt							$	20,320	$	21,381
Less: current maturities							(1,830)		(2,055)
Total long-term debt							$	18,490	$	19,326

(1)Due in installments during the years shown above.

(2)Certain financings are comprised of variable rate debt. All variable rates are equal to LIBOR (generally subject to a floor), Secured Overnight Financing Rate ("SOFR") or another index rate plus a specified margin.

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.

Fair value of outstanding debt
(in millions)	March 31, 2023		December 31, 2022
Net carrying amount	$	20,320	$	21,381
Fair value	$	19,900	$	20,700

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EMPLOYEE BENEFIT PLANS (Tables)

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Schedule of components net periodic (benefit) cost

Employee benefit plans net periodic cost (benefit)
	Pension Benefits				Other Postretirement and Postemployment Benefits
(in millions)	2023		2022		2023		2022
Three Months Ended March 31,
Service cost	$	—	$	—	$	18	$	18
Interest cost	213		153		50		32
Expected return on plan assets	(264)		(330)		—		(4)
Amortization of prior service credit	—		—		(1)		(1)
Recognized net actuarial loss	60		64		3		13
Net periodic cost (benefit)	$	9	$	(113)	$	70	$	58

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of future aircraft purchase commitments

Our future aircraft purchase commitments totaled approximately $18.7 billion at March 31, 2023.

Aircraft purchase commitments(1)
(in millions)	Total
Nine months ending December 31, 2023	$	2,360
2024	4,460
2025	4,290
2026	3,830
2027	2,580
Thereafter	1,200
Total	$	18,720

(1)The timing of these commitments is based on our contractual agreements with the aircraft manufacturers and may be subject to change based on modifications to those agreements or changes in delivery schedules.

Our future aircraft purchase commitments included the following aircraft at March 31, 2023:

Aircraft purchase commitments by fleet type
Aircraft Type	Purchase Commitments
A220-300	59
A321-200neo	130
A330-900neo	17
A350-900	16
B-737-10	100
Total	322

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of components of accumulated other comprehensive loss

Components of accumulated other comprehensive loss
(in millions)	Pension and Other Benefit Liabilities		Other		Tax Effect		Total
Balance at January 1, 2023	$	(6,624)	$	41	$	782	$	(5,801)
Reclassifications into earnings(1)	62		—		(15)		47
Balance at March 31, 2023	$	(6,562)	$	41	$	767	$	(5,754)

Balance at January 1, 2022	$	(8,355)	$	41	$	1,184	$	(7,130)
Reclassifications into earnings(1)	77		—		(18)		59
Balance at March 31, 2022	$	(8,278)	$	41	$	1,166	$	(7,071)

(1)Amounts reclassified from accumulated other comprehensive loss for pension and other benefit liabilities are recorded in pension and related (expense)/benefit in non-operating expense in our income statement.

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SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2023

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.

Financial information by segment
(in millions)	Airline		Refinery			Intersegment Sales/Other			Consolidated
Three Months Ended March 31, 2023
Operating revenue:	$	11,843	$	2,352					$	12,759
Sales to airline segment						$	(596)	(1)
Exchanged products						(714)		(2)
Sales of refined products						(126)
Operating (loss)/income	(499)		222		(3)	—			(277)
Interest expense, net	227		4			(4)			227
Depreciation and amortization	564		23			(23)		(3)	564
Total assets, end of period	70,183		3,005			(54)			73,134
Net fair value obligations, end of period	—		(38)			—			(38)
Capital expenditures	971		29			—			1,000
Three Months Ended March 31, 2022
Operating revenue:	$	8,161	$	2,313					$	9,348
Sales to airline segment						$	(291)	(1)
Exchanged products						(809)		(2)
Sales of refined products						(26)
Operating (loss)/income	(836)		53		(3)	—			(783)
Interest expense, net	274		2			(2)			274
Depreciation and amortization	506		23			(23)		(3)	506
Total assets, end of period	71,392		2,382			(26)			73,748
Net fair value obligations, end of period	—		(430)			—			(430)
Capital expenditures	1,749		17			—			1,766

(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 for jet fuel from the refinery by reference to the market index for the primary delivery location, which is New York Harbor.

(2)Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis.

(3)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

Mar. 31, 2023

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:

Basic and diluted loss per share
	Three Months Ended March 31,
(in millions, except per share data)	2023		2022
Net loss	$	(363)	$	(940)
Basic weighted average shares outstanding	639		637
Dilutive effect of share-based instruments	—		—
Diluted weighted average shares outstanding	639		637
Basic loss per share	$	(0.57)	$	(1.48)
Diluted loss per share	$	(0.57)	$	(1.48)

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REVENUE RECOGNITION - Passenger Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Operating revenue	$ 12,759	$ 9,348
Passenger
Disaggregation of Revenue [Line Items]
Operating revenue	10,411	6,907
Ticket
Disaggregation of Revenue [Line Items]
Operating revenue	9,239	5,986
Loyalty travel awards
Disaggregation of Revenue [Line Items]
Operating revenue	743	543
Travel-related services
Disaggregation of Revenue [Line Items]
Operating revenue	$ 429	$ 378

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REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue recognized that was previously deferred	$ 3,900	$ 2,200
Cash sales of mileage credits	$ 1,700	$ 1,200
Redemption period for majority of new miles (in years)	2 years
Air traffic
Disaggregation of Revenue [Line Items]
Contract with customer, liability			$ 8,300
Contract with customer, liability, noncurrent			$ 100

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REVENUE RECOGNITION - Loyalty Program Liability (Details) - Loyalty program - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Loyalty program activity
Current and noncurrent deferred revenue, beginning	$ 7,882	$ 7,559
Miles earned	999	658
Miles redeemed for air travel	(743)	(543)
Miles redeemed for non-air travel and other	(40)	(30)
Current and noncurrent deferred revenue, ending	$ 8,098	$ 7,644

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REVENUE RECOGNITION - Other Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Operating revenue	$ 12,759	$ 9,348
Other
Disaggregation of Revenue [Line Items]
Operating revenue	2,139	2,152
Refinery
Disaggregation of Revenue [Line Items]
Operating revenue	916	1,187
Loyalty program
Disaggregation of Revenue [Line Items]
Operating revenue	726	571
Ancillary businesses
Disaggregation of Revenue [Line Items]
Operating revenue	231	209
Miscellaneous
Disaggregation of Revenue [Line Items]
Operating revenue	$ 266	$ 185

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REVENUE RECOGNITION - Revenue by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Operating revenue	$ 12,759	$ 9,348
Domestic
Disaggregation of Revenue [Line Items]
Operating revenue	9,396	7,549
Atlantic
Disaggregation of Revenue [Line Items]
Operating revenue	1,548	776
Latin America
Disaggregation of Revenue [Line Items]
Operating revenue	1,280	811
Pacific
Disaggregation of Revenue [Line Items]
Operating revenue	535	212
Passenger
Disaggregation of Revenue [Line Items]
Operating revenue	10,411	6,907
Passenger | Domestic
Disaggregation of Revenue [Line Items]
Operating revenue	7,594	5,563
Passenger | Atlantic
Disaggregation of Revenue [Line Items]
Operating revenue	1,244	539
Passenger | Latin America
Disaggregation of Revenue [Line Items]
Operating revenue	1,132	680
Passenger | Pacific
Disaggregation of Revenue [Line Items]
Operating revenue	$ 441	$ 125

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FAIR VALUE MEASUREMENTS - Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Cash equivalents	$ 2,231	$ 2,021
Restricted cash equivalents	213	206
Long-term investments	1,572	1,450
Fuel hedge contracts	(6)	(47)
Short-term investments
Fair Value
Short-term investments	1,501	1,587
Corporate obligations
Fair Value
Short-term investments	1,756	1,614
Asset-backed securities
Fair Value
Short-term investments	37
Other fixed income securities
Fair Value
Short-term investments	102	67
Level 1
Fair Value
Cash equivalents	2,231	2,021
Restricted cash equivalents	213	206
Long-term investments	1,424	1,305
Fuel hedge contracts	0	0
Level 1 | Short-term investments
Fair Value
Short-term investments	162	122
Level 1 | Corporate obligations
Fair Value
Short-term investments	0	0
Level 1 | Asset-backed securities
Fair Value
Short-term investments	0
Level 1 | Other fixed income securities
Fair Value
Short-term investments	0	0
Level 2
Fair Value
Cash equivalents	0	0
Restricted cash equivalents	0	0
Long-term investments	38	38
Fuel hedge contracts	(6)	(47)
Level 2 | Short-term investments
Fair Value
Short-term investments	1,339	1,465
Level 2 | Corporate obligations
Fair Value
Short-term investments	1,756	1,614
Level 2 | Asset-backed securities
Fair Value
Short-term investments	37
Level 2 | Other fixed income securities
Fair Value
Short-term investments	102	67
Level 3
Fair Value
Cash equivalents	0	0
Restricted cash equivalents	0	0
Long-term investments	110	107
Fuel hedge contracts	0	0
Level 3 | Short-term investments
Fair Value
Short-term investments	0	0
Level 3 | Corporate obligations
Fair Value
Short-term investments	0	0
Level 3 | Asset-backed securities
Fair Value
Short-term investments	0
Level 3 | Other fixed income securities
Fair Value
Short-term investments	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 3,396		$ 3,268
Short-term investments expected to mature in one year or less	3,000
Fuel hedge contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (loss) on derivatives recognized	31	$ (240)
Mark-to-market adjustments	41	244
Loss on settlement	$ 10	$ 4

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INVESTMENTS - Equity Investments Ownership Interest and Carrying Value (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Equity Investments
Equity investments	$ 2,249	$ 2,128
Air France-KLM
Equity Investments
Ownership interest (percent)	3.00%	3.00%
Carrying value	$ 135	$ 97
China Eastern
Equity Investments
Ownership interest (percent)	2.00%	2.00%
Carrying value	$ 184	$ 189
CLEAR
Equity Investments
Ownership interest (percent)	5.00%	5.00%
Carrying value	$ 217	$ 227
Hanjin-KAL
Equity Investments
Ownership interest (percent)	15.00%	15.00%
Carrying value	$ 351	$ 296
Hanjin-KAL | Common and Preferred Shares
Equity Investments
Ownership interest (percent)	14.80%
Hanjin-KAL | Common Stock
Equity Investments
Ownership interest (percent)	14.90%
LATAM
Equity Investments
Ownership interest (percent)	10.00%	10.00%
Carrying value	$ 455	$ 403
Other investments
Equity Investments
Carrying value	$ 300	$ 285
Wheels Up
Equity Investments
Ownership interest (percent)	21.00%	21.00%
Carrying value	$ 33	$ 54
Grupo Aeromexico
Equity Investments
Ownership interest (percent)	20.00%	20.00%
Carrying value	$ 410	$ 412
Unifi Aviation
Equity Investments
Ownership interest (percent)	49.00%	49.00%
Carrying value	$ 164	$ 165

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DEBT - Summary of Debt (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Debt, gross	$ 20,440	$ 21,519
Unamortized (discount)/premium and debt issue cost, net and other	(120)	(138)
Total debt	20,320	21,381
Less: current maturities	(1,830)	(2,055)
Total long-term debt	$ 18,490	19,326
Unsecured Payroll Support Program Loans | Unsecured debt
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2030
Maturity dates range, end	Dec. 31, 2031
Interest rate per annum (percent)	1.00%
Debt, gross	$ 3,496	3,496
Unsecured notes | Unsecured debt
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2023
Maturity dates range, end	Dec. 31, 2029
Debt, gross	$ 2,997	2,997
Unsecured notes | Unsecured debt | Minimum
Debt Instrument [Line Items]
Interest rate per annum (percent)	2.90%
Unsecured notes | Unsecured debt | Maximum
Debt Instrument [Line Items]
Interest rate per annum (percent)	7.38%
SkyMiles Notes | Secured debt
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2023
Maturity dates range, end	Dec. 31, 2028
Debt, gross	$ 5,007	5,144
SkyMiles Notes | Secured debt | Minimum
Debt Instrument [Line Items]
Interest rate per annum (percent)	4.50%
SkyMiles Notes | Secured debt | Maximum
Debt Instrument [Line Items]
Interest rate per annum (percent)	4.75%
SkyMiles Term Loan | Secured debt
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2023
Maturity dates range, end	Dec. 31, 2027
Interest rate per annum (percent)	8.56%
Debt, gross	$ 2,478	2,820
NYTDC Special Facilities Revenue Bonds | Bonds
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2023
Maturity dates range, end	Dec. 31, 2045
Debt, gross	$ 2,778	2,838
NYTDC Special Facilities Revenue Bonds | Bonds | Minimum
Debt Instrument [Line Items]
Interest rate per annum (percent)	4.00%
NYTDC Special Facilities Revenue Bonds | Bonds | Maximum
Debt Instrument [Line Items]
Interest rate per annum (percent)	5.00%
Financing secured by aircraft - Certificates | Secured debt
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2023
Maturity dates range, end	Dec. 31, 2028
Debt, gross	$ 1,790	1,802
Financing secured by aircraft - Certificates | Secured debt | Minimum
Debt Instrument [Line Items]
Interest rate per annum (percent)	2.00%
Financing secured by aircraft - Certificates | Secured debt | Maximum
Debt Instrument [Line Items]
Interest rate per annum (percent)	8.00%
Financing secured by aircraft - Notes | Secured debt
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2023
Maturity dates range, end	Dec. 31, 2033
Debt, gross	$ 553	813
Financing secured by aircraft - Notes | Secured debt | Minimum
Debt Instrument [Line Items]
Interest rate per annum (percent)	6.11%
Financing secured by aircraft - Notes | Secured debt | Maximum
Debt Instrument [Line Items]
Interest rate per annum (percent)	7.22%
2020 Senior Secured Notes | Secured debt
Debt Instrument [Line Items]
Maturity date	Dec. 31, 2025
Interest rate per annum (percent)	7.00%
Debt, gross	$ 1,274	1,542
2018 Revolving Credit Facility | Revolving credit facility
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2024
Maturity dates range, end	Dec. 31, 2025
Debt, gross	$ 0	0
Other financings | Secured and unsecured debt
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2023
Maturity dates range, end	Dec. 31, 2030
Debt, gross	$ 67	67
Other financings | Secured and unsecured debt | Minimum
Debt Instrument [Line Items]
Interest rate per annum (percent)	2.51%
Other financings | Secured and unsecured debt | Maximum
Debt Instrument [Line Items]
Interest rate per annum (percent)	5.00%
Other revolving credit facilities | Revolving credit facility
Debt Instrument [Line Items]
Maturity date	Dec. 31, 2025
Debt, gross	$ 0	$ 0
Other revolving credit facilities | Secured and unsecured debt
Debt Instrument [Line Items]
Maturity dates range, start	Jan. 01, 2023

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DEBT - Availability Under Revolving Credit Facilities (Details) $ in Millions	Mar. 31, 2023 USD ($)
Revolving credit facility
Debt Instrument [Line Items]
Undrawn credit facilities	$ 2,900
Letter of Credit
Debt Instrument [Line Items]
Outstanding letters of credit that do not affect availability of revolvers	$ 400

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DEBT - Early Settlement of Outstanding Notes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Extinguishment of Debt [Line Items]
Repaid principal	$ 227
Loss on extinguishment of debt	22	$ 25
Secured and unsecured debt
Extinguishment of Debt [Line Items]
Repurchase amount	468
Loss on extinguishment of debt	$ 22

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DEBT - Fair Value of Debt (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt
Net carrying amount	$ 20,320	$ 21,381
Fair value	$ 19,900	$ 20,700

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EMPLOYEE BENEFIT PLANS - Components of Net Periodic (Benefit) Cost (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Pension Benefits
Defined Benefit Plan Disclosure
Service cost	$ 0	$ 0
Interest cost	213	153
Expected return on plan assets	(264)	(330)
Amortization of prior service credit	0	0
Recognized net actuarial loss	60	64
Net periodic cost (benefit)	9	(113)
Other Postretirement and Postemployment Benefits
Defined Benefit Plan Disclosure
Service cost	18	18
Interest cost	50	32
Expected return on plan assets	0	(4)
Amortization of prior service credit	(1)	(1)
Recognized net actuarial loss	3	13
Net periodic cost (benefit)	$ 70	$ 58

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COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2023	Jan. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Future aircraft purchase commitments	$ 18,700	$ 18,700
Collective bargaining agreement term	4 years
Pilot pay rate increase			18.00%
Pilot agreement expense		735
Adjustments to other benefit-related items		$ 130

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COMMITMENTS AND CONTINGENCIES - Aircraft Commitments by Year (Details) $ in Millions	Mar. 31, 2023 USD ($)
Future aircraft purchase commitments:
Total	$ 18,700
Future aircraft purchase commitments
Future aircraft purchase commitments:
Nine months ending December 31, 2023	2,360
2023	4,460
2024	4,290
2025	3,830
2026	2,580
Thereafter	1,200
Total	$ 18,720

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COMMITMENTS AND CONTINGENCIES - Aircraft Commitments by Fleet Type (Details) (Details) - Future aircraft purchase commitments	Mar. 31, 2023 aircraft
Future Purchase Commitments
Aircraft purchase commitments, minimum quantity required	322
A220-300
Future Purchase Commitments
Aircraft purchase commitments, minimum quantity required	59
A321-200neo
Future Purchase Commitments
Aircraft purchase commitments, minimum quantity required	130
A330-900neo
Future Purchase Commitments
Aircraft purchase commitments, minimum quantity required	17
A350-900
Future Purchase Commitments
Aircraft purchase commitments, minimum quantity required	16
B-737-10
Future Purchase Commitments
Aircraft purchase commitments, minimum quantity required	100

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Attributable to Parent, Net of Tax
Beginning balance, tax effect	$ 782	$ 1,184
Beginning balance	6,582	3,887
Reclassifications into earnings, tax effect	(15)	(18)
Reclassification into earnings (net of tax effect)	47	59
Ending balance, tax effect	767	1,166
Ending balance	6,260	2,991
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax
Beginning balance	(5,801)	(7,130)
Ending balance	(5,754)	(7,071)
Pension and Other Benefits Liabilities
AOCI Attributable to Parent, Net of Tax
Beginning balance, AOCI before tax	(6,624)	(8,355)
Reclassifications into earnings	62	77
Ending balance, AOCI before tax	(6,562)	(8,278)
Other
AOCI Attributable to Parent, Net of Tax
Beginning balance, AOCI before tax	41	41
Reclassifications into earnings	0	0
Ending balance, AOCI before tax	$ 41	$ 41

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SEGMENTS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information, Profit (Loss)
Operating revenue	$ 12,759	$ 9,348
Intersegment Sales/Other | Exchanged products
Segment Reporting Information, Profit (Loss)
Operating revenue	$ (714)	$ (809)

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SEGMENTS - Segment Reporting (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information, Profit (Loss)
Operating revenue	$ 12,759	$ 9,348
Operating income (loss)	(277)	(783)
Interest expense, net	227	274
Depreciation and amortization	564	506
Total assets, end of period	73,134	73,748	$ 72,288
Net fair value obligations, end of period	(38)	(430)
Capital expenditures	1,000	1,766
Operating Segments | Airline
Segment Reporting Information, Profit (Loss)
Operating revenue	11,843	8,161
Operating income (loss)	(499)	(836)
Interest expense, net	227	274
Depreciation and amortization	564	506
Total assets, end of period	70,183	71,392
Net fair value obligations, end of period	0	0
Capital expenditures	971	1,749
Operating Segments | Refinery
Segment Reporting Information, Profit (Loss)
Operating revenue	2,352	2,313
Operating income (loss)	222	53
Interest expense, net	4	2
Depreciation and amortization	23	23
Total assets, end of period	3,005	2,382
Net fair value obligations, end of period	(38)	(430)
Capital expenditures	29	17
Intersegment Sales/Other
Segment Reporting Information, Profit (Loss)
Operating income (loss)	0	0
Interest expense, net	(4)	(2)
Depreciation and amortization	(23)	(23)
Total assets, end of period	(54)	(26)
Net fair value obligations, end of period	0	0
Capital expenditures	0	0
Intersegment Sales/Other | Sales to airline segment
Segment Reporting Information, Profit (Loss)
Operating revenue	(596)	(291)
Intersegment Sales/Other | Exchanged products
Segment Reporting Information, Profit (Loss)
Operating revenue	(714)	(809)
Intersegment Sales/Other | Sales of refined products
Segment Reporting Information, Profit (Loss)
Operating revenue	$ (126)	$ (26)

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LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net loss	$ (363)	$ (940)
Basic weighted average shares outstanding (shares)	639	637
Dilutive effect of share-based awards (shares)	0	0
Diluted weighted average shares outstanding (shares)	639	637
Basic loss per share (USD per share)	$ (0.57)	$ (1.48)
Diluted loss per share (USD per share)	$ (0.57)	$ (1.48)