Condensed Consolidated Statements of Operations and Comprehensive Income 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 32
Item 4. Controls and Procedures 32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and the 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 September 30, 2025, the related condensed consolidated statements of operations and comprehensive income and consolidated statements of stockholders' equity for the three-month and nine-month periods ended September 30, 2025 and 2024, condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2025 and 2024 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, 2024, the related consolidated statements of operations, comprehensive income, cash flows, and stockholders' equity for the year then ended, and the related notes (not presented herein); and in our report dated February 11, 2025, 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, 2024, 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
October 9, 2025
Delta Air Lines, Inc. | September 2025 Form 10-Q 2
Item 1. Financial Statements
Financial Statements
Consolidated Balance Sheets
Unaudited
| (in millions, except share data) | September 30,2025 | December 31,2024 |
|---|---|---|
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | ||
| Accounts receivable, net of allowance for uncollectible accounts of and | ||
| Fuel, expendable parts and supplies inventories, net of allowance for obsolescence of and | ||
| Prepaid expenses and other | ||
| Total current assets | ||
| Noncurrent Assets: | ||
| Property and equipment, net of accumulated depreciation and amortization of and | ||
| Operating lease right-of-use assets | ||
| Goodwill | ||
| Identifiable intangibles, net of accumulated amortization of and | ||
| Equity investments | ||
| Other noncurrent assets | ||
| Total noncurrent assets | ||
| Total assets | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Current maturities of debt and finance leases | ||
| Current maturities of operating leases | ||
| Air traffic liability | ||
| Accounts payable | ||
| Accrued salaries and related benefits | ||
| Loyalty program deferred revenue | ||
| Fuel card obligation | ||
| Other accrued liabilities | ||
| Total current liabilities | ||
| Noncurrent Liabilities: | ||
| Debt and finance leases | ||
| Noncurrent operating leases | ||
| Pension, postretirement and related benefits | ||
| Loyalty program deferred revenue | ||
| Deferred income taxes, net | ||
| Other noncurrent liabilities | ||
| Total noncurrent liabilities | ||
| Commitments and Contingencies | ||
| Stockholders' Equity: | ||
| Common stock at par value; shares authorized, and shares issued | ||
| Additional paid-in capital | ||
| Retained earnings | ||
| Accumulated other comprehensive loss | () | () |
| Treasury stock, at cost, and shares | () | () |
| Total stockholders' equity | ||
| Total liabilities and stockholders' equity | ||
| The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. |
Delta Air Lines, Inc. | September 2025 Form 10-Q 3
Financial Statements
Condensed Consolidated Statements of Operations and Comprehensive Income
Unaudited
| (in millions, except per share data) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Operating Revenue: | ||||
| Passenger | ||||
| Cargo | ||||
| Other | ||||
| Total operating revenue | ||||
| Operating Expense: | ||||
| Salaries and related costs | ||||
| Aircraft fuel and related taxes | ||||
| Ancillary businesses and refinery | ||||
| Contracted services | ||||
| Landing fees and other rents | ||||
| Regional carrier expense | ||||
| Aircraft maintenance materials and outside repairs | ||||
| Passenger commissions and other selling expenses | ||||
| Depreciation and amortization | ||||
| Passenger service | ||||
| Profit sharing | ||||
| Aircraft rent | ||||
| Other | ||||
| Total operating expense | ||||
| Operating Income | ||||
| Non-Operating Income/(Expense): | ||||
| Interest expense, net | () | () | () | () |
| Gain/(loss) on investments, net | () | |||
| Loss on extinguishment of debt | () | () | () | |
| Miscellaneous, net | () | () | () | () |
| Total non-operating income/(expense), net | () | |||
| Income Before Income Taxes | ||||
| Income Tax Provision | () | () | () | () |
| Net Income | ||||
| Basic Earnings Per Share | ||||
| Diluted Earnings Per Share | ||||
| Comprehensive Income | ||||
| The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. |
Delta Air Lines, Inc. | September 2025 Form 10-Q 4
Financial Statements
Condensed Consolidated Statements of Cash Flows
Unaudited
| (in millions) | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|
| Net Cash Provided by Operating Activities | ||
| Cash Flows from Investing Activities: | ||
| Property and equipment additions: | ||
| Flight equipment, including advance payments | () | () |
| Ground property and equipment, including technology | () | () |
| Redemption of short-term investments | ||
| Other, net | ||
| Net cash used in investing activities | () | () |
| Cash Flows from Financing Activities: | ||
| Proceeds from long-term obligations | ||
| Payments on debt and finance lease obligations | () | () |
| Cash dividends | () | () |
| Other, net | () | () |
| Net cash used in financing activities | () | () |
| Net Increase in Cash, Cash Equivalents and Restricted Cash Equivalents | ||
| Cash, cash equivalents and restricted cash equivalents at beginning of period | ||
| Cash, cash equivalents and restricted cash equivalents at end of period | ||
| Non-Cash Transactions: | ||
| Right-of-use assets acquired or modified under operating leases | ||
| Flight and ground equipment acquired or modified under finance leases | () | |
| Operating leases converted to finance leases | ||
| Debt agreements modified | ||
| 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: | ||
| September 30, | ||
| (in millions) | 2025 | 2024 |
| Current assets: | ||
| Cash and cash equivalents | ||
| Restricted cash included in prepaid expenses and other | ||
| Noncurrent assets: | ||
| Restricted cash included in other noncurrent assets | ||
| Total cash, cash equivalents and restricted cash equivalents | ||
| The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. |
Delta Air Lines, Inc. | September 2025 Form 10-Q 5
Financial Statements
Consolidated Statements of Stockholders' Equity
Unaudited
| (in millions, except per share data) | Common StockShares | Common StockAmount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury StockShares | Treasury StockAmount | Total |
|---|---|---|---|---|---|---|---|---|
| Balance at December 31, 2024 | 655 | — | $11,740 | $8,783 | $(4,979) | 8 | $(251) | |
| Net income | — | — | — | 240 | — | — | — | |
| Dividends declared ( per share) | — | — | — | (98) | — | — | — | (98) |
| Other comprehensive income | — | — | — | — | 41 | — | — | |
| Common stock issued for employee equity awards(1) | — | — | (51) | — | — | (1) | 13 | () |
| Stock options exercised | — | — | 9 | — | — | — | — | |
| Warrants exercised | 5 | — | — | — | — | — | — | — |
| Balance at March 31, 2025 | 660 | — | $11,698 | $8,925 | $(4,938) | 7 | $(238) | |
| Net income | — | — | — | 2,130 | — | — | — | |
| Dividends declared ($0.15 and $0.1875 per share) | — | — | — | (222) | — | — | — | (222) |
| Other comprehensive income | — | — | — | — | 39 | — | — | |
| Common stock issued for employee equity awards(1) | — | — | 46 | — | — | — | — | |
| Balance at June 30, 2025 | 660 | — | $11,744 | $10,833 | $(4,899) | 7 | $(238) | |
| Net income | — | — | — | 1,417 | — | — | — | |
| Dividends declared ( per share) | — | — | — | (124) | — | — | — | (124) |
| Other comprehensive income | — | — | — | — | 41 | — | — | |
| Common stock issued for employee equity awards(1) | — | — | 45 | — | — | — | 1 | |
| Stock options exercised | — | — | 2 | — | — | — | — | |
| Balance at September 30, 2025 | 659 | — | $11,791 | $12,126 | $(4,858) | 6 | $(237) |
(1) Treasury shares were withheld for payment of taxes, at a weighted average price per share of $67.95, $47.23, and $58.61 in the March 2025 quarter, June 2025 quarter and September 2025 quarter, respectively. Share counts in the table above may not calculate exactly due to rounding.
| (in millions, except per share data) | Common StockShares | Common StockAmount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury StockShares | Treasury StockAmount | Total |
|---|---|---|---|---|---|---|---|---|
| Balance at December 31, 2023 | 655 | — | $11,641 | $5,650 | $(5,845) | 11 | $(341) | |
| Net income | — | — | — | 37 | — | — | — | |
| Dividends declared ( per share) | — | — | — | (65) | — | — | — | (65) |
| Other comprehensive income | — | — | — | — | 52 | — | — | |
| Common stock issued for employee equity awards(1) | 2 | — | 47 | — | — | 1 | (25) | |
| Balance at March 31, 2024 | 657 | — | $11,688 | $5,622 | $(5,793) | 12 | $(366) | |
| Net income | — | — | — | 1,305 | — | — | — | |
| Dividends declared ($0.10 and $0.15 per share) | — | — | — | (162) | — | — | — | (162) |
| Other comprehensive income | — | — | — | — | 53 | — | — | |
| Common stock issued for employee equity awards(1) | (2) | — | (41) | — | — | (3) | 80 | |
| Balance at June 30, 2024 | 655 | — | $11,647 | $6,765 | $(5,740) | 9 | $(286) | |
| Net income | — | — | — | 1,272 | — | — | — | |
| Dividends declared ( per share) | — | — | — | (97) | — | — | — | (97) |
| Other comprehensive income | — | — | — | — | 49 | — | — | |
| Common stock issued for employee equity awards(1) | — | — | 39 | — | — | — | (3) | |
| Balance at September 30, 2024 | 655 | — | $11,686 | $7,940 | $(5,691) | 9 | $(289) |
(1) Treasury shares were withheld for payment of taxes, at a weighted average price per share of $39.83, $50.04, and $43.27 in the March 2024 quarter, June 2024 quarter and September 2024 quarter, respectively. Share counts in the table above may not calculate exactly due to rounding.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
Delta Air Lines, Inc. | September 2025 Form 10-Q 6
Notes to the Condensed 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, 2024.
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 and nine months ended September 30, 2025 are not necessarily indicative of operating results for the entire year.
Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes.
On July 4, 2025, the One Big Beautiful Bill Act, was signed into law. The legislation did not have a material impact on our income tax expense for the September 2025 quarter, and we do not expect it to materially change our effective income tax rate for 2025.
Recent Accounting Standards
Standards Effective in Future Years
In September 2025, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2025-06, "Targeted Improvements to the Accounting for Internal-Use Software." This standard is intended to improve the operability and application of guidance related to capitalized software development costs and becomes effective January 1, 2028. We are assessing the potential impact this ASU may have on our Consolidated Financial Statements upon adoption.
NOTE 2. REVENUE RECOGNITION
Passenger Revenue
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Ticket | ||||
| Loyalty travel awards | ||||
| Travel-related services | ||||
| Passenger revenue |
Ticket
We recognized approximately billion in passenger revenue during both the nine months ended September 30, 2025 and 2024, that had been recorded in our air traffic liability balance at the beginning of those periods.
Delta Air Lines, Inc. | September 2025 Form 10-Q 7
Notes to the Condensed Consolidated Financial Statements
Loyalty Travel Awards
Loyalty travel awards revenue is related to the redemption of mileage credits ("miles") for air travel. Our SkyMiles loyalty program allows customers to earn miles by flying on Delta, Delta Connection and other airlines that participate in the loyalty program. Customers can also earn miles through participating companies, such as credit card, retail, ridesharing, car rental and hotel 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 nine months ended September 30, 2025 and 2024, total cash sales from marketing agreements related to our loyalty program were $6.0 billion and $5.5 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) | 2025 | 2024 |
|---|---|---|
| Balance at January 1 | ||
| Miles earned | ||
| Miles redeemed for air travel | () | () |
| Miles redeemed for non-air travel and other | () | () |
| Balance at September 30 |
Travel-Related Services
Travel-related services are primarily composed of services performed in conjunction with a passenger’s flight and include baggage fees, administrative fees and on-board sales. We recognize revenue for these services when the related transportation service is provided.
Other Revenue
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Refinery | ||||
| Loyalty program | ||||
| Ancillary businesses | ||||
| Miscellaneous | ||||
| Other revenue |
Delta Air Lines, Inc. | September 2025 Form 10-Q 8
Notes to the Condensed 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
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Domestic | $9,103 | $8,652 | $26,521 | $26,033 |
| Atlantic | 2,977 | 3,029 | 7,221 | 7,159 |
| Latin America | 759 | 779 | 3,047 | 3,008 |
| Pacific | 667 | 647 | 2,063 | 1,879 |
| Total |
Operating revenue by geographic region
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Domestic | $11,561 | $10,609 | $33,032 | $32,216 |
| Atlantic | 3,423 | 3,418 | 8,353 | 8,209 |
| Latin America | 882 | 889 | 3,497 | 3,432 |
| Pacific | 807 | 761 | 2,479 | 2,227 |
| Total |
NOTE 3. FAIR VALUE MEASUREMENTS
Assets/(Liabilities) Measured at Fair Value on a Recurring Basis
| (in millions) | September 30,2025 | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|
| Cash equivalents | $2,364 | $2,364 | — | — |
| Restricted cash equivalents | 180 | 180 | — | — |
| Long-term investments and related | 3,391 | 3,051 | 185 | 155 |
| Fuel hedge contracts | 4 | — | 4 | — |
| (in millions) | December 31,2024 | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|
| Cash equivalents | $1,619 | $1,619 | — | — |
| Restricted cash equivalents | 351 | 351 | — | — |
| Long-term investments and related | 2,372 | 2,085 | 160 | 127 |
| Fuel hedge contracts | (17) | — | (17) | — |
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. Restricted cash equivalents 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 Consolidated Balance Sheet ("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.
Delta Air Lines, Inc. | September 2025 Form 10-Q 9
Notes to the Condensed Consolidated Financial Statements
Long-Term Investments and Related. 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 related to inventory at our wholly-owned subsidiary, Monroe Energy, LLC ("Monroe"). We recognized a loss of $21 million and a gain of $12 million on our fuel hedge contracts in aircraft fuel and related taxes on our Condensed Consolidated Statements of Operations and Comprehensive Income ("income statement") for the three and nine months ended September 30, 2025, respectively, compared to gains of $89 million and $9 million for the three and nine months ended September 30, 2024, respectively. The gain recognized during the first nine months of 2025 was composed of $21 million of mark-to-market gains and $9 million of settlement losses on contracts. Gains and losses on settled contracts are reflected within Monroe's operating results. See Note 9, "Segments," for further information on our refinery segment.
NOTE 4. INVESTMENTS
Equity investments ownership interest and carrying value
| (in millions) | Ownership InterestSeptember 30, 2025 | Ownership InterestDecember 31, 2024 | Carrying ValueSeptember 30, 2025 | Carrying ValueDecember 31, 2024 |
|---|---|---|---|---|
| Air France-KLM | 3% | 3% | $98 | $62 |
| China Eastern | 2% | 2% | 199 | 155 |
| Grupo Aeroméxico | 20% | 20% | 402 | 354 |
| Hanjin KAL | 15% | 15% | 712 | 507 |
| LATAM | 10% | 10% | 1,379 | 837 |
| Unifi Aviation | 49% | 49% | 132 | 146 |
| Wheels Up | 37% | 38% | 485 | 435 |
| Other investments | 476 | 350 | ||
| Equity investments |
(1) At September 30, 2025, we held 14.8% of the outstanding shares (including common and preferred), and 14.9% of the common shares, of Hanjin KAL.
(2) Our voting rights with respect to Wheels Up are capped at 29.9%.
Wheels Up. During the September 2025 quarter, we agreed to extend the contractual transfer restrictions on our investment in Wheels Up until May 2026 and thereafter will remain subject to certain, more limited transfer restrictions.
Delta Air Lines, Inc. | September 2025 Form 10-Q 10
Notes to the Condensed Consolidated Financial Statements
NOTE 5. DEBT
Summary of outstanding debt by category
| (in millions) | Maturity Dates | Interest Rate(s) Per Annum at September 30, 2025 | September 30, 2025 | December 31, 2024 |
|---|---|---|---|---|
| Unsecured Notes | 2030 | 7.38% | $3,575 | $1,575 |
| Unsecured Payroll Support Program Loans(1) | 2031 | 1.00% | 1,848 | 3,496 |
| Financing arrangements secured by SkyMiles assets: | ||||
| SkyMiles Notes(2) | 2028 | 4.75% | 3,559 | 3,970 |
| SkyMiles Term Loan(2)(3) | 2028 | 5.83% | 588 | 784 |
| NYTDC Special Facilities Revenue Bonds(2) | 2045 | 6.00% | 3,522 | 3,591 |
| Financing arrangements secured by aircraft: | ||||
| Certificates(2) | 2028 | 8.00% | 935 | 992 |
| Notes(2)(3) | 2033 | 6.57% | 80 | 87 |
| Financing arrangements secured by slots, gates and/or routes: | ||||
| Senior Secured Notes | 2025 | —% | — | 812 |
| Other financings | 2030 | 5.00% | 66 | 66 |
| Corporate Revolving Credit Facility(3) | 2028 | Undrawn | — | — |
| Other revolving credit facilities(3) | 2026 | Undrawn | — | — |
| Total secured and unsecured debt | ||||
| Unamortized (discount)/premium and debt issue cost, net and other | () | |||
| Total debt | ||||
| Less: current maturities | () | () | ||
| Total long-term debt |
(1) Interest rates on the Payroll Support Program ("PSP") Loans are 1.00% for the first five years and the applicable SOFR plus 2.00% in the final five years. The applicable interest rates will begin to adjust for the outstanding loans in January 2026 and April 2026.
(2) Due in installments during the years shown above.
(3) Certain financings are comprised of variable rate debt. All variable rates are equal to SOFR (generally subject to a floor) or another index rate, plus a specified margin.
2025 Unsecured Notes
In June 2025, we issued $2.0 billion in aggregate principal amounts of unsecured notes, consisting of $1.0 billion of 4.95% Notes due 2028 and $1.0 billion of 5.25% Notes due 2030 (collectively, the "Notes"). The Notes are included in Unsecured Notes in the table above. The net proceeds from the offering of the Notes were used to repay the PSP loan due 2030 included in Unsecured Payroll Support Program Loans in the table above and for general corporate purposes.
SkyMiles Credit Facility
In September 2025, we and our indirect wholly-owned subsidiary SkyMiles IP Ltd. entered into an amendment to the SkyMiles term loan credit and guaranty agreement (the "SkyMiles Credit Facility"). This amendment, among other things, (i) refinanced the existing term loans with the proceeds of replacement term loans bearing interest at a variable rate equal to an adjusted term SOFR, plus a reduced margin of 1.50% per annum, payable quarterly; (ii) extended the scheduled maturity from October 2027 to October 2028; (iii) reduced the principal amortization payments from 20% to 1% per year, payable quarterly; and (iv) added a prepayment premium of 1.00% payable in connection with a Repricing Event (as defined in the amended SkyMiles Credit Facility) occurring within six months following September 30, 2025.
Availability Under Revolving Credit Facilities
As of September 30, 2025, we had approximately $3.1 billion undrawn and available under our revolving credit facilities.
Delta Air Lines, Inc. | September 2025 Form 10-Q 11
Notes to the Condensed 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 1 or 2 within the fair value hierarchy.
Fair value of outstanding debt
| (in millions) | September 30,2025 | December 31,2024 |
|---|---|---|
| Net carrying amount | ||
| Fair value |
Covenants
Our debt agreements contain various affirmative, negative and financial covenants. We were in compliance with the covenants in our debt agreements at September 30, 2025.
NOTE 6. EMPLOYEE BENEFIT PLANS
We sponsor defined benefit and defined contribution pension plans, healthcare plans and disability and survivorship plans for eligible employees and retirees and their eligible family members.
Employee benefit plans net periodic cost
| (in millions)Three Months Ended September 30, | Pension Benefits2025 | Pension Benefits2024 | Other Postretirement and Postemployment Benefits2025 | Other Postretirement and Postemployment Benefits2024 |
|---|---|---|---|---|
| Service cost(1) | $95 | $88 | $33 | $23 |
| Interest cost | 208 | 201 | 45 | 45 |
| Expected return on plan assets | (267) | (263) | — | (1) |
| Amortization of prior service credit | — | — | (1) | (1) |
| Recognized net actuarial loss | 51 | 62 | 5 | 5 |
| Net periodic cost | $87 | $88 | $82 | $71 |
| Nine Months Ended September 30, | ||||
| Service cost(1) | $125 | $116 | $99 | $69 |
| Interest cost | 623 | 603 | 135 | 136 |
| Expected return on plan assets | (800) | (789) | (1) | (2) |
| Amortization of prior service credit | — | — | (3) | (3) |
| Recognized net actuarial loss | 151 | 186 | 15 | 14 |
| Net periodic cost | $99 | $116 | $245 | $214 |
(1) Service cost relates to the market based cash balance plan. There is no service cost associated with traditional frozen defined benefit plans.
Service cost is recorded in salaries and related costs in our income statement, while all other components are recorded within miscellaneous, net under non-operating expense.
We also sponsor defined benefit pension plans for eligible employees in certain foreign countries which have immaterial obligations. These plans are not included in the net periodic cost table above.
Delta Air Lines, Inc. | September 2025 Form 10-Q 12
Notes to the Condensed Consolidated Financial Statements
NOTE 7. COMMITMENTS AND CONTINGENCIES
Aircraft Purchase Commitments
Our future aircraft purchase commitments totaled approximately billion at September 30, 2025.
Aircraft purchase commitments(1)
| (in millions) | Total | Total |
|---|---|---|
| Three months ending December 31, 2025 | $900 | |
| 2026 | 3,460 | |
| 2027 | 5,880 | |
| 2028 | 4,110 | |
| 2029 | 1,290 | |
| Thereafter | 370 | |
| Total | $16,010 |
(1) The timing of these commitments is based on our contractual agreements with the aircraft manufacturers and remains uncertain due to supply chain, manufacturing and regulatory constraints. During the nine months ended September 30, 2025, we were notified that certain aircraft deliveries would be delayed from 2026 into future years. These new delivery dates are reflected in the table above.
Our future aircraft purchase commitments included the following aircraft at September 30, 2025:
| Aircraft purchase commitments by fleet typeAircraft Type | Purchase Commitments |
|---|---|
| A220-300 | 66 |
| A321-200neo | 71 |
| A350-900 | 6 |
| A350-1000 | 20 |
| B-737-10 | 100 |
| Total | 263 |
Legal Contingencies
We are involved in various legal proceedings related to employment practices, environmental issues, commercial disputes, antitrust and other regulatory 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
During the September 2025 quarter, we amended our collective bargaining agreement with the Delta Flight Superintendents (Dispatchers) represented by PAFCA. This new agreement covers approximately 500 employees and becomes amendable beginning August 1, 2030.
Delta Air Lines, Inc. | September 2025 Form 10-Q 13
Notes to the Condensed 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, 2025 | $(5,557) | $42 | $(4,979) | |
| Changes in value | — | (1) | — | () |
| Reclassifications into earnings(1) | 159 | — | () | |
| Balance at September 30, 2025 | $(5,398) | $41 | $(4,858) |
| Balance at January 1, 2024 | $(6,681) | $40 | $(5,845) | |
| Changes in value | — | 3 | — | |
| Reclassifications into earnings(1) | 197 | — | () | |
| Balance at September 30, 2024 | $(6,484) | $43 | $(5,691) |
(1) Amounts reclassified from accumulated other comprehensive loss for pension and other benefit liabilities are recorded in miscellaneous, net in non-operating expense in our income statement.
Delta Air Lines, Inc. | September 2025 Form 10-Q 14
Notes to the Condensed Consolidated Financial Statements
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 non-jet fuel products produced by the refinery for jet fuel consumed in our airline operations.
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)Three Months Ended September 30, 2025 | Airline | Refinery | Intersegment Sales/Other | Consolidated |
|---|---|---|---|---|
| Operating revenue | $(319) | |||
| Airline salaries and related costs | ||||
| Aircraft fuel and related costs | ||||
| Refinery cost of goods sold(2) | ||||
| Depreciation and amortization | ||||
| Other segment items(3) | ||||
| Operating income(4) | ||||
| Interest expense, net | (1) | |||
| Other non-operating income | () | () | ||
| Income before income taxes | 1 | |||
| Total assets, end of period | (18) | |||
| Capital expenditures | ||||
| Three Months Ended September 30, 2024 | ||||
| Operating revenue | $(829) | |||
| Airline salaries and related costs | ||||
| Aircraft fuel and related costs | ||||
| Refinery cost of goods sold(2) | ||||
| Depreciation and amortization | ||||
| Other segment items(3) | ||||
| Operating income/(loss)(4) | () | |||
| Interest expense/(income), net | () | 8 | ||
| Other non-operating income | () | () | ||
| Income/(loss) before income taxes | () | (8) | ||
| Total assets, end of period | (76) | |||
| Capital expenditures |
(1) See table below for detail of the intersegment operating revenue amounts.
(2) Refinery cost of goods sold are included within aircraft fuel and related taxes and ancillary businesses and refinery in our income statement.
(3) The nature of other segment items for the airline segment are shown on our income statement and for the refinery segment include salaries and related costs, maintenance, utilities and other expenses.
(4) Refinery segment operating results are included within aircraft fuel and related taxes in our income statement.
Delta Air Lines, Inc. | September 2025 Form 10-Q 15
Notes to the Condensed Consolidated Financial Statements
Financial information by segment
| (in millions)Nine Months Ended September 30, 2025 | Airline | Refinery | Intersegment Sales/Other | Consolidated |
|---|---|---|---|---|
| Operating revenue | $(1,533) | |||
| Airline salaries and related costs | ||||
| Aircraft fuel and related costs | ||||
| Refinery cost of goods sold(2) | ||||
| Depreciation and amortization | ||||
| Other segment items(3) | ||||
| Operating income(4) | ||||
| Interest expense, net | (3) | |||
| Other non-operating income | () | () | ||
| Income before income taxes | 3 | |||
| Capital expenditures | ||||
| Nine Months Ended September 30, 2024 | ||||
| Operating revenue | $(2,491) | |||
| Airline salaries and related costs | ||||
| Aircraft fuel and related costs | ||||
| Refinery cost of goods sold(2) | ||||
| Depreciation and amortization | ||||
| Other segment items(3) | ||||
| Operating income(4) | ||||
| Interest expense, net | (3) | |||
| Other non-operating expense | ||||
| Income before income taxes | 3 | |||
| Capital expenditures |
(1) See table below for detail of the intersegment operating revenue amounts.
(2) Refinery cost of goods sold are included within aircraft fuel and related taxes and ancillary businesses and refinery in our income statement.
(3) The nature of other segment items for the airline segment are shown on our income statement and for the refinery segment include salaries and related costs, maintenance, utilities and other expenses.
(4) Refinery segment operating results are included within aircraft fuel and related taxes in our income statement.
| Intersegment Sales/Other(in millions) | Intersegment Sales/OtherThree Months Ended September 30, 2025 | Intersegment Sales/OtherThree Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Sales to airline segment(1) | $() | $() | $() | $() |
| Exchanged products(2) | () | () | () | () |
| Sales of refined products | () | () | () | () |
| Total operating revenue intersegment sales/other | $(319) | $(829) | $(1,533) | $(2,491) |
(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.
Delta Air Lines, Inc. | September 2025 Form 10-Q 16
Notes to the Condensed Consolidated Financial Statements
NOTE 10. EARNINGS PER SHARE
We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding restricted shares. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based instruments, including stock options, restricted stock awards and warrants. 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 earnings per share:
Basic and diluted earnings per share
| (in millions, except per share data) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Net income | ||||
| Basic weighted average shares outstanding | ||||
| Dilutive effect of share-based instruments | ||||
| Diluted weighted average shares outstanding | ||||
| Basic earnings per share | ||||
| Diluted earnings per share |
Delta Air Lines, Inc. | September 2025 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 2024 Form 10-K.
September 2025 Quarter Financial Highlights
Our operating income for the September 2025 quarter was $1.7 billion, an increase of $287 million compared to the September 2024 quarter.
Revenue. Compared to the September 2024 quarter, our total revenue increased $1.0 billion. Passenger revenue increased $399 million compared to the September 2024 quarter on an increase in revenue for premium products, particularly from corporate customers, and loyalty travel awards, taking into account the impact of the CrowdStrike-caused outage on the September 2024 quarter. In July 2024, our operations were significantly disrupted by the CrowdStrike-caused outage. We estimate that this disruption led to a direct revenue impact of approximately $380 million related to approximately 7,000 flight cancellations over five days. Total revenue, adjusted (a non-GAAP financial measure, which excludes revenue related to refinery sales to third parties) increased in the September 2025 quarter by $603 million, or 4.1%, compared to the September 2024 quarter.
Operating Expense. Total operating expense in the September 2025 quarter increased $709 million, or 5%, compared to the September 2024 quarter, primarily due to costs associated with a 4% increase in capacity, higher expenses related to refinery sales to third parties and higher employee costs from increased wages, largely offset by lower aircraft fuel costs and higher costs in the September 2024 quarter associated with the CrowdStrike-caused outage. The 2024 CrowdStrike-caused outage and operational recovery resulted in approximately $170 million of additional operating expenses primarily due to customer expense reimbursements and crew-related costs. September 2024 quarter fuel expense was also approximately $50 million lower than it would have been as a result of the flight cancellations. Total operating expense, adjusted (a non-GAAP financial measure, which primarily excludes expenses related to refinery sales to third parties) in the September 2025 quarter increased $281 million, or 2%, compared to the September 2024 quarter, primarily for the reasons discussed above.
Our total operating cost per available seat mile ("CASM") increased 1% compared to the September 2024 quarter, while non-fuel unit cost ("CASM-Ex", a non-GAAP financial measure) increased 0.3%.
Cash Flow. Our cash, cash equivalents, short-term investments and aggregate undrawn principal amount available under our revolving credit facilities ("liquidity") as of September 30, 2025 was $6.9 billion.
During the September 2025 quarter, operating activities generated $1.8 billion, primarily from ticket sales and the sale of SkyMiles to our partners. Total cash sales to American Express were approximately $2.0 billion in the September 2025 quarter.
Cash flows used in investing activities during the quarter totaled $1.0 billion primarily from capital expenditures. These operating and investing activities yielded free cash flow (a non-GAAP financial measure) of $833 million in the September 2025 quarter. Additionally we had cash outflows of $459 million related to repayments of our debt and finance leases.
The non-GAAP financial measures referenced above for total revenue, adjusted, operating expense, adjusted, CASM-Ex and free cash flow are defined and reconciled in "Supplemental Information" below.
Delta Air Lines, Inc. | September 2025 Form 10-Q 18
Item 2. MD&A - Results of Operations
Results of Operations - Three Months Ended September 30, 2025 and 2024
Total Operating Revenue
| (in millions)(1) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | |
|---|---|---|---|
| Ticket - Main cabin | $6,063 | $6,309 | $(4)% |
| Ticket - Premium products | 5,796 | 5,336 | 9% |
| Loyalty travel awards | 1,108 | 978 | 13% |
| Travel-related services | 539 | 484 | 11% |
| Passenger revenue | $13,506 | $13,107 | $3% |
| Cargo | 233 | 196 | 19% |
| Other | 2,934 | 2,374 | 24% |
| Total operating revenue | $16,673 | $15,677 | $6% |
| TRASM (cents) | 21.09 | 20.58 | 2% |
| Third-party refinery sales | (1.87) | (1.42) | 32% |
| TRASM, adjusted(2) | 19.22 | 19.16 | 0.3% |
(1) Total amounts in the table above may not calculate exactly due to rounding.
(2) Total Revenue per available seat mile ("TRASM"), adjusted is a non-GAAP financial measure. For additional information on adjustments to TRASM, see "Supplemental Information" below.
Compared to the September 2024 quarter, total revenue increased $996 million, due to an increase in demand for premium products, particularly from corporate customers, refinery sales to third parties (included in Other revenue) and loyalty travel awards.
Passenger Revenue by Geographic Region
| (in millions) | Three Months Ended September 30, 2025 | Increase (Decrease)vs. Three Months Ended September 30, 2024Passenger Revenue | Increase (Decrease)vs. Three Months Ended September 30, 2024RPMs (Traffic) | Increase (Decrease)vs. Three Months Ended September 30, 2024ASMs (Capacity) | Increase (Decrease)vs. Three Months Ended September 30, 2024Passenger Mile Yield | Increase (Decrease)vs. Three Months Ended September 30, 2024PRASM | Increase (Decrease)vs. Three Months Ended September 30, 2024Load Factor |
|---|---|---|---|---|---|---|---|
| Domestic | $9,103 | 5% | 1% | 4% | 4% | 2% | pts |
| Atlantic | 2,977 | (2)% | 3% | 5% | (5)% | (7)% | pts |
| Latin America | 759 | (3)% | (3)% | (2)% | 1% | — | pt |
| Pacific | 667 | 3% | 10% | 7% | (6)% | (4)% | pts |
| Total | $13,506 | 3% | 2% | 4% | 1% | (1)% | pt |
Domestic
Domestic passenger revenue increased 5% in the September 2025 quarter compared to the September 2024 quarter on a 4% increase in capacity. Domestic revenue increased due to strong demand for our premium products, particularly from corporate customers.
International
International passenger revenue for the September 2025 quarter decreased compared to the September 2024 quarter. The decrease in the Atlantic region is primarily driven by lower main cabin revenue, while premium products continued to perform well, and a shift in some leisure travel out of peak summer months. The decrease in Latin America region revenue primarily relates to reduced demand for Mexico leisure markets. Pacific region revenue growth reflects our network restoration in addition to increased load factor, particularly to China and Japan.
Delta Air Lines, Inc. | September 2025 Form 10-Q 19
Item 2. MD&A - Results of Operations
Other Revenue
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | |
|---|---|---|---|
| Refinery | $1,476 | $1,083 | $36% |
| Loyalty program | 847 | 820 | 3% |
| Ancillary businesses | 256 | 161 | 59% |
| Miscellaneous | 355 | 310 | 15% |
| Other revenue | $2,934 | $2,374 | $24% |
Refinery. Refinery sales to third parties increased $393 million compared to the September 2024 quarter. See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales.
Loyalty Program. This relates to revenues from brand usage by third parties and other performance obligations embedded in miles sold, as well as 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.
Ancillary Businesses. This includes revenues from aircraft maintenance services we provide to third parties and our vacation package operations. The increase is attributable to higher volume of engine repairs by our aircraft maintenance services operation during the September 2025 quarter.
Miscellaneous. This is primarily composed of revenues related to lounge access, including access provided to certain American Express cardholders, codeshare agreements, international joint venture partnership contractual settlements and certain other commercial relationships.
Delta Air Lines, Inc. | September 2025 Form 10-Q 20
Item 2. MD&A - Results of Operations
Operating Expense
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | |
|---|---|---|---|
| Salaries and related costs | $4,443 | $4,231 | $5% |
| Aircraft fuel and related taxes | 2,570 | 2,747 | (6)% |
| Ancillary businesses and refinery | 1,724 | 1,250 | 38% |
| Contracted services | 1,166 | 1,069 | 9% |
| Landing fees and other rents | 921 | 832 | 11% |
| Regional carrier expense | 649 | 600 | 8% |
| Aircraft maintenance materials and outside repairs | 667 | 627 | 6% |
| Passenger commissions and other selling expenses | 645 | 643 | — |
| Depreciation and amortization | 614 | 643 | (5)% |
| Passenger service | 485 | 463 | 5% |
| Profit sharing | 392 | 320 | 23% |
| Aircraft rent | 135 | 137 | (1)% |
| Other | 578 | 718 | (19)% |
| Total operating expense | $14,989 | $14,280 | $5% |
Salaries and Related Costs. The increase in salaries and related costs primarily resulted from the implementation of base pay increases for eligible employees of 4% effective June 1, 2025, and 4% for Delta pilots on January 1, 2025.
Aircraft Fuel and Related Taxes. Aircraft fuel and related taxes decreased $177 million compared to the September 2024 quarter primarily due to an 8% decrease in the market price of jet fuel partially offset by an increase in consumption consistent with the 4% increase in capacity. We expect that fuel consumption for the remainder of 2025 will increase compared to 2024 aligned with capacity, partially offset by improvements in the fuel efficiency from our recent aircraft acquisitions. The refinery generated a benefit of five cents per gallon compared to an incremental cost of three cents per gallon in the September 2024 quarter. We expect jet fuel prices to remain dynamic.
See "Refinery Segment" below for additional details on the refinery's operations.
| Fuel expense and average price per gallon(in millions, except per gallon data) | Fuel expense and average price per gallonThree Months Ended September 30, 2025 | Fuel expense and average price per gallonThree Months Ended September 30, 2024 | Fuel expense and average price per gallonThree Months Ended September 30, | Fuel expense and average price per gallon · Average Price Per GallonThree Months Ended September 30, 2025 | Fuel expense and average price per gallon · Average Price Per GallonIncrease (Decrease) | |
|---|---|---|---|---|---|---|
| Fuel purchase cost(1) | $2,612 | $2,738 | $(126) | $2.30 | $2.50 | $(0.20) |
| Fuel hedge impact | 11 | (24) | 35 | 0.01 | (0.02) | 0.03 |
| Refinery segment impact | (53) | 33 | (86) | (0.05) | 0.03 | (0.08) |
| Total fuel expense | $2,570 | $2,747 | $(177) | $2.26 | $2.51 | $(0.25) |
(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 package operations. Refinery sales to third parties increased $393 million compared to the September 2024 quarter. See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales.
Landing Fees and Other Rents. The increase in landing fees and other rents resulted from higher rates charged by airports following extensive redevelopment projects at numerous facilities and more flights compared to the September 2024 quarter.
Profit Sharing. Profit sharing increased by $72 million due to higher quarterly results compared to the September 2024 quarter. Our profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual profit, as defined by the terms of the program, and 20% of annual profit above $2.5 billion.
Other. The decrease in other is primarily due to the impact of service recovery costs including customer expense reimbursements from the CrowdStrike-caused outage in the September 2024 quarter.
Delta Air Lines, Inc. | September 2025 Form 10-Q 21
Item 2. MD&A - Results of Operations
Results of Operations - Nine Months Ended September 30, 2025 and 2024
Total Operating Revenue
| (in millions)(1) | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | |
|---|---|---|---|
| Ticket - Main cabin | $17,771 | $18,450 | $(4)% |
| Ticket - Premium products | 16,402 | 15,377 | 7% |
| Loyalty travel awards | 3,140 | 2,798 | 12% |
| Travel-related services | 1,539 | 1,454 | 6% |
| Passenger revenue | $38,852 | $38,079 | $2% |
| Cargo | 654 | 574 | 14% |
| Other | 7,855 | 7,431 | 6% |
| Total operating revenue | $47,361 | $46,084 | $3% |
| TRASM (cents) | 21.04 | 21.30 | (1)% |
| Third-party refinery sales | (1.63) | (1.63) | — |
| TRASM, adjusted(2) | 19.41 | 19.67 | (1)% |
(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.
Unless otherwise discussed below, the changes in total revenue line items, as well as the underlying reasons for these changes, compared to the nine months ended September 30, 2024 are consistent with the discussion above under Results of Operations - Three Months Ended September 30, 2025 and 2024.
Compared to the nine months ended September 30, 2024, total revenue increased $1.3 billion, or 3%, on a 4% increase in capacity.
Passenger Revenue by Geographic Region
| (in millions) | Nine Months Ended September 30, 2025 | Increase (Decrease)vs. Nine Months Ended September 30, 2024Passenger Revenue | Increase (Decrease)vs. Nine Months Ended September 30, 2024RPMs (Traffic) | Increase (Decrease)vs. Nine Months Ended September 30, 2024ASMs (Capacity) | Increase (Decrease)vs. Nine Months Ended September 30, 2024Passenger Mile Yield | Increase (Decrease)vs. Nine Months Ended September 30, 2024PRASM | Increase (Decrease)vs. Nine Months Ended September 30, 2024Load Factor |
|---|---|---|---|---|---|---|---|
| Domestic | $26,521 | 2% | 1% | 4% | 1% | (2)% | pts |
| Atlantic | 7,221 | 1% | 3% | 3% | (2)% | (2)% | pts |
| Latin America | 3,047 | 1% | 1% | 2% | — | (1)% | pt |
| Pacific | 2,063 | 10% | 18% | 11% | (7)% | (1)% | pts |
| Total | $38,852 | 2% | 2% | 4% | — | (2)% | pts |
Domestic passenger revenue for the nine months ended September 30, 2025 increased on higher capacity compared to the nine months ended September 30, 2024. International passenger revenue for the nine months ended September 30, 2025 increased 2% on 4% higher capacity compared to the nine months ended September 30, 2024.
Other Revenue
| (in millions) | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | |
|---|---|---|---|
| Refinery | $3,680 | $3,520 | $5% |
| Loyalty program | 2,509 | 2,451 | 2% |
| Ancillary businesses | 710 | 554 | 28% |
| Miscellaneous | 956 | 906 | 6% |
| Other revenue | $7,855 | $7,431 | $6% |
Delta Air Lines, Inc. | September 2025 Form 10-Q 22
Item 2. MD&A - Results of Operations
Operating Expense
| (in millions) | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | |
|---|---|---|---|
| Salaries and related costs | $12,928 | $12,035 | $7% |
| Aircraft fuel and related taxes | 7,439 | 8,157 | (9)% |
| Ancillary businesses and refinery | 4,383 | 4,083 | 7% |
| Contracted services | 3,442 | 3,134 | 10% |
| Landing fees and other rents | 2,650 | 2,347 | 13% |
| Regional carrier expense | 1,913 | 1,731 | 11% |
| Aircraft maintenance materials and outside repairs | 1,904 | 1,990 | (4)% |
| Passenger commissions and other selling expenses | 1,869 | 1,865 | — |
| Depreciation and amortization | 1,823 | 1,878 | (3)% |
| Passenger service | 1,397 | 1,339 | 4% |
| Profit sharing | 986 | 964 | 2% |
| Aircraft rent | 408 | 411 | (1)% |
| Other | 1,864 | 1,872 | — |
| Total operating expense | $43,006 | $41,806 | $3% |
Unless otherwise discussed below, the changes in operating expense line items, as well as the underlying reasons for these changes, compared to the nine months ended September 30, 2024 are consistent with the discussion above under Results of Operations - Three Months Ended September 30, 2025 and 2024.
Aircraft Fuel and Related Taxes. Aircraft fuel and related taxes decreased $718 million compared to the nine months ended September 30, 2024 due to a 13% decrease in the market price per gallon of jet fuel. The refinery generated a one cent benefit per gallon compared to two cents per gallon in the nine months ended September 30, 2024.
See "Refinery Segment" below for additional details on the refinery's operations.
| Fuel expense and average price per gallon(in millions, except per gallon data) | Fuel expense and average price per gallonNine Months Ended September 30, 2025 | Fuel expense and average price per gallonNine Months Ended September 30, 2024 | Fuel expense and average price per gallonNine Months Ended September 30, | Fuel expense and average price per gallon · Average Price Per GallonNine Months Ended September 30, 2025 | Fuel expense and average price per gallon · Average Price Per GallonIncrease (Decrease) | |
|---|---|---|---|---|---|---|
| Fuel purchase cost(1) | $7,502 | $8,229 | $(727) | $2.33 | $2.66 | $(0.33) |
| Fuel hedge impact | (21) | 4 | (25) | (0.01) | — | (0.01) |
| Refinery segment impact | (42) | (76) | 34 | (0.01) | (0.02) | 0.01 |
| Total fuel expense | $7,439 | $8,157 | $(718) | $2.31 | $2.64 | $(0.33) |
(1) Market price for jet fuel at airport locations, including related taxes and transportation costs.
Contracted Services. The increase in contracted services results from inflationary rate increases in our operations and volume increases on a 4% increase in capacity.
Regional Carrier Expense. The increase in regional carrier expense primarily resulted from higher volume of regional flights.
Delta Air Lines, Inc. | September 2025 Form 10-Q 23
Item 2. MD&A - Non-Operating Results
Non-Operating Results
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Favorable (Unfavorable) | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | Favorable (Unfavorable) |
|---|---|---|---|---|---|---|
| Interest expense, net | $(171) | $(173) | $2 | $(521) | $(567) | $46 |
| Gain/(loss) on investments, net | 311 | 350 | (39) | 1,007 | (73) | 1,080 |
| Loss on extinguishment of debt | (6) | — | (6) | (26) | (36) | 10 |
| Miscellaneous, net | (41) | (13) | (28) | (143) | (146) | 3 |
| Total non-operating income/(expense), net | $93 | $164 | $(71) | $317 | $(822) | $1,139 |
Interest expense, net. Interest expense, net includes interest expense and interest income. This decreased compared to the prior year primarily due to reduced interest expense resulting from our debt reduction initiatives. During 2024, we made payments of $4.0 billion related to our debt and finance lease obligations. We have continued to pay down our debt during the nine months ended September 30, 2025 with $3.9 billion of payments on debt and finance lease obligations. During the June 2025 quarter, we issued $2.0 billion in aggregate principal amount of unsecured notes and used a portion of the proceeds to repay the Payroll Support Program loan due 2030 ("PSP1 Loan"). The new unsecured notes carry a lower interest rate than the repaid PSP1 Loan. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, and refinance higher cost debt.
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 certain companies, particularly those 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 certain loans and notes.
Miscellaneous, net. Miscellaneous, net primarily includes employee benefit plans net periodic cost, charitable contributions, our share of our equity method investments' results, dividends received from our equity investees and foreign exchange gains/(losses).
Income Taxes
In certain periods, we may have adjustments to our net deferred tax liabilities as a result of changes in prior year estimates, the valuation allowance on mark-to-market adjustments on our equity investments and tax laws enacted during the period, which will impact the effective tax rate for that period. Excluding the mark-to-market gains recognized in the nine months ended September 30, 2025, we project our annual effective tax rate for 2025 will be 24% to 25%.
On July 4, 2025, the One Big Beautiful Bill Act, was signed into law. The legislation did not have a material impact on our income tax expense for the September 2025 quarter, and we do not expect it to materially change our effective income tax rate for 2025.
Delta Air Lines, Inc. | September 2025 Form 10-Q 24
Item 2. MD&A - Refinery Segment
Refinery Segment
The refinery operated by Monroe primarily produces gasoline, diesel and jet fuel. Monroe exchanges 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 typically provides approximately 200,000 barrels per day, or approximately 75% of our consumption, for use in our airline operations. The refinery regularly optimizes its sales and exchange activities based on market conditions. A change in contractual agreements to buy and sell products with separate counterparties drove a decrease in exchanged products and increase in third party refinery sales during the current year compared to the prior year.
The refinery generated operating income of $42 million in the nine months ended September 30, 2025 compared to $76 million in the nine months ended September 30, 2024, primarily as a result of lower pricing of refined products.
For more information regarding the refinery's results, see Note 9 of the Notes to the Condensed Consolidated Financial Statements.
| Refinery segment financial information(in millions, except per gallon data) | Refinery segment financial informationThree Months Ended September 30, 2025 | Refinery segment financial informationThree Months Ended September 30, 2024 | Refinery segment financial informationIncrease (Decrease) | Refinery segment financial informationNine Months Ended September 30, 2025 | Refinery segment financial informationNine Months Ended September 30, 2024 | Increase (Decrease) |
|---|---|---|---|---|---|---|
| Exchanged products | $23 | $349 | $(326) | $549 | $1,147 | $(598) |
| Sales of refined products | 36 | 111 | (75) | 132 | 197 | (65) |
| Sales to airline segment | 260 | 369 | (109) | 852 | 1,147 | (295) |
| Third party refinery sales | 1,476 | 1,083 | 393 | 3,680 | 3,520 | 160 |
| Operating revenue | $1,795 | $1,912 | $(117) | $5,213 | $6,011 | $(798) |
| Operating income/(loss) | $53 | $(33) | $86 | $42 | $76 | $(34) |
| Refinery segment impact on airline average price per fuel gallon | $(0.05) | $0.03 | $(0.08) | $(0.01) | $(0.02) | $0.01 |
Operating Statistics
| Consolidated(1) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | % Increase (Decrease) | |
|---|---|---|---|---|
| Revenue passenger miles (in millions) ("RPM") | 67,621 | 66,310 | 2% | 2% |
| Available seat miles (in millions) ("ASM") | 79,054 | 76,162 | 4% | 4% |
| Passenger mile yield | 19.97 | 19.77 | 1% | — |
| Passenger revenue per available seat mile ("PRASM") | 17.08 | 17.21 | (1)% | (2)% |
| Total revenue per available seat mile ("TRASM") | 21.09 | 20.58 | 2% | (1)% |
| TRASM, adjusted(2) | 19.22 | 19.16 | 0.3% | (1)% |
| Cost per available seat mile ("CASM") | 18.96 | 18.75 | 1% | (1)% |
| CASM-Ex(2) | 13.35 | 13.30 | — | 2% |
| Passenger load factor | 86% | 87% | (1) | (2)%% |
| Fuel gallons consumed (in millions) | 1,138 | 1,096 | 4% | 4% |
| Average price per fuel gallon(3) | $2.26 | $2.51 | (10)% | $(12)% |
| Average price per fuel gallon, adjusted(2)(3) | $2.25 | $2.53 | (11)% | $(12)% |
(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. | September 2025 Form 10-Q 25
Item 2. MD&A - Fleet Information
Fleet Information
Our operating aircraft fleet, purchase commitments and options at September 30, 2025 are summarized in the following table.
Mainline aircraft information by fleet type
| Fleet Type | Current Fleet(1)Owned | Current Fleet(1)Finance Lease | Current Fleet(1)Operating Lease | Current Fleet(1)Total | Average Age (Years) | CommitmentsPurchase | CommitmentsOptions |
|---|---|---|---|---|---|---|---|
| A220-100 | 45 | — | — | 45 | 5.8 | ||
| A220-300 | 34 | — | — | 34 | 2.5 | 66 | |
| A319-100 | 57 | — | — | 57 | 23.6 | ||
| A320-200 | 48 | — | — | 48 | 29.0 | ||
| A321-200 | 77 | 8 | 42 | 127 | 6.8 | ||
| A321-200neo | 84 | — | — | 84 | 1.8 | 71 | 70 |
| A330-200 | 11 | — | — | 11 | 20.5 | ||
| A330-300 | 28 | — | 3 | 31 | 16.7 | ||
| A330-900neo | 32 | 2 | 5 | 39 | 2.8 | 10 | |
| A350-900 | 27 | — | 11 | 38 | 5.3 | 6 | 10 |
| A350-1000 | — | — | — | — | — | 20 | |
| B-717-200 | 80 | — | — | 80 | 24.0 | ||
| B-737-800 | 73 | 4 | — | 77 | 24.0 | ||
| B-737-900ER | 119 | 6 | 38 | 163 | 9.7 | ||
| B-737-10 | — | — | — | — | — | 100 | 30 |
| B-757-200 | 76 | — | — | 76 | 26.9 | ||
| B-757-300 | 16 | — | — | 16 | 22.6 | ||
| B-767-300ER | 39 | — | — | 39 | 29.1 | ||
| B-767-400ER | 21 | — | — | 21 | 24.7 | ||
| Total | 867 | 20 | 99 | 986 | 14.8 | 263 | 120 |
(1) Excludes certain aircraft we own or lease that are operated by regional carriers on our behalf shown in the table below.
The following table summarizes the aircraft operated by regional carriers on our behalf at September 30, 2025.
| Regional aircraft information by fleet type and carrierCarrier | Regional aircraft information by fleet type and carrier · Fleet Type(1)(2)CRJ-700 | Regional aircraft information by fleet type and carrier · Fleet Type(1)(2)CRJ-900 | Regional aircraft information by fleet type and carrier · Fleet Type(1)(2)Embraer 170 | Regional aircraft information by fleet type and carrier · Fleet Type(1)(2)Embraer 175 | Total |
|---|---|---|---|---|---|
| Endeavor Air, Inc.(3) | 18 | 122 | — | — | 140 |
| SkyWest Airlines, Inc. | 5 | 34 | — | 87 | 126 |
| Republic Airways, Inc. | — | — | 11 | 46 | 57 |
| Total | 23 | 156 | 11 | 133 | 323 |
(1) We own 202 and have operating leases for two of these regional aircraft. The remainder are owned or leased by SkyWest Airlines, Inc. or Republic Airways, Inc.
(2) Excluded from the total operating count above are one owned CRJ-700 aircraft and one operating leased CRJ-900 aircraft which are temporarily parked as of September 30, 2025.
(3) Endeavor Air, Inc. is a wholly owned subsidiary of Delta.
Delta Air Lines, Inc. | September 2025 Form 10-Q 26
Item 2. MD&A - Financial Condition and Liquidity
Financial Condition and Liquidity
As of September 30, 2025, we had $6.9 billion in cash, cash equivalents, short-term investments and aggregate undrawn principal amount available under our revolving credit facilities. We expect to meet our liquidity needs for the next twelve months with cash and cash equivalents and cash flows from operations. We expect to meet our long-term liquidity needs with cash flows from operations and financing arrangements.
Undrawn Lines of Credit. As of September 30, 2025, we had approximately $3.1 billion undrawn and available under our revolving credit facilities.
Sources and Uses of Liquidity
Operating Activities
We generated cash flows from operations of $6.1 billion in both the nine months ended September 30, 2025 and 2024. We expect to continue generating positive cash flows from operations during the remainder of 2025.
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.
Fuel. Fuel expense represented approximately 17% and 20% of our total operating expense for the nine months ended September 30, 2025 and 2024, respectively. The market price for jet fuel is dynamic, which can impact the comparability of our periodic cash flows from operations. Fuel consumption was higher during the three and nine months ended September 30, 2025 compared to the prior year period due to the increase in capacity. We expect that fuel consumption for the remainder of 2025 will increase compared to 2024 aligned with capacity, partially offset by improvements in the fuel efficiency from our recent aircraft acquisitions.
Profit Sharing. We paid $1.4 billion in profit sharing payments in February 2025 related to our 2024 pre-tax profit in recognition of our employees' contributions toward achieving the year's financial results.
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 eligible 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 nine months ended September 30, 2025, we accrued $986 million in profit sharing expense based on the year-to-date performance and current expectations for 2025 profit.
Sale of Miles to Participating Companies. Customers earn miles based on their spending with participating companies such as credit card, retail, ridesharing, car rental and hotel 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 $5.9 billion in the nine months ended September 30, 2025, an increase of 10% compared to the prior year period. See Note 2 of the Notes to the Condensed Consolidated Financial Statements for further information regarding the cash sales from marketing agreements.
Delta Air Lines, Inc. | September 2025 Form 10-Q 27
Item 2. MD&A - Financial Condition and Liquidity
Investing Activities
Capital Expenditures. Our capital expenditures were $3.6 billion and $3.8 billion for the nine months ended September 30, 2025 and 2024, respectively. 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. Our expected 2025 capital spend of approximately $5.0 billion will be primarily for aircraft, including deliveries and advance deposit payments, as well as fleet modifications and technology enhancements.
Financing Activities
Debt and Finance Leases. In the nine months ended September 30, 2025, we had cash outflows of $3.9 billion related to repayments of our debt and finance lease obligations. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, and refinance higher cost debt.
In June 2025, we issued $2.0 billion in aggregate principal amounts of unsecured notes, consisting of $1.0 billion of 4.95% Notes due 2028 and $1.0 billion of 5.25% Notes due 2030 (collectively, the "Notes"). The net proceeds from the offering of the Notes were used to repay the PSP1 Loan and for general corporate purposes.
In September 2025, we and our indirect wholly-owned subsidiary SkyMiles IP Ltd. entered into an amendment to the SkyMiles term loan credit and guaranty agreement (the "SkyMiles Credit Facility"). This amendment, among other things, (i) refinanced the existing term loans with the proceeds of replacement term loans bearing interest at a variable rate equal to an adjusted term SOFR, plus a reduced margin of 1.50% per annum, payable quarterly; (ii) extended the scheduled maturity from October 2027 to October 2028; (iii) reduced the principal amortization payments from 20% to 1% per year, payable quarterly; and (iv) added a prepayment premium of 1.00% payable in connection with a Repricing Event (as defined in the amended SkyMiles Credit Facility) occurring within six months following September 30, 2025.
In February 2025, Moody's credit rating agency upgraded its rating for Delta to Baa2, an investment grade rating. In the September 2025 quarter, Fitch Ratings upgraded its outlook for Delta to Positive from Stable.
See Note 5 of the Notes to the Condensed Consolidated Financial Statements for further information on our debt agreements.
Capital Return to Shareholders. On August 21, 2025 we paid the dividend previously declared in the June 2025 quarter for total cash dividends of $122 million. Total cash dividends for the nine months ended September 30, 2025 were $318 million.
On September 25, 2025, the Board of Directors approved and we will pay a quarterly dividend of $0.1875 per share on November 6, 2025 to shareholders of record as of October 16, 2025.
In the June 2025 quarter, the Board of Directors authorized a $1.0 billion opportunistic share repurchase program open through June 30, 2028. No shares were repurchased under this program through September 30, 2025.
Covenants. We were in compliance with the covenants in our debt agreements at September 30, 2025.
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. | September 2025 Form 10-Q 28
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:
- Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.
- MTM adjustments 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.
- 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.
Total revenue, adjusted reconciliation
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 |
|---|---|---|
| Total revenue | $16,673 | $15,677 |
| Adjusted for: | ||
| Third-party refinery sales | (1,476) | (1,083) |
| Total revenue, adjusted | $15,197 | $14,594 |
| Operating expense, adjusted reconciliation(in millions) | Operating expense, adjusted reconciliationThree Months Ended September 30, 2025 | 2024 |
|---|---|---|
| Operating expense | $14,989 | $14,280 |
| Adjusted for: | ||
| Third-party refinery sales | (1,476) | (1,083) |
| MTM adjustments and settlements on hedges | (11) | 24 |
| Operating expense, adjusted | $13,502 | $13,221 |
Delta Air Lines, Inc. | September 2025 Form 10-Q 29
Item 2. MD&A - Supplemental Information
| Fuel expense, adjusted reconciliation(in millions, except per gallon data) | Fuel expense, adjusted reconciliationThree Months Ended September 30, 2025 | Fuel expense, adjusted reconciliationThree Months Ended September 30, 2024 | Fuel expense, adjusted reconciliation · Average Price Per GallonThree Months Ended September 30, 2025 | Average Price Per Gallon2024 |
|---|---|---|---|---|
| Total fuel expense | $2,570 | $2,747 | $2.26 | $2.51 |
| Adjusted for: | ||||
| MTM adjustments and settlements on hedges | (11) | 24 | (0.01) | 0.02 |
| Total fuel expense, adjusted | $2,559 | $2,771 | $2.25 | $2.53 |
| Average Price Per Gallon | ||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | |||
| (in millions, except per gallon data) | 2025 | 2024 | 2025 | 2024 |
| Total fuel expense | $7,439 | $8,157 | $2.31 | $2.64 |
| Adjusted for: | ||||
| MTM adjustments and settlements on hedges | 21 | (4) | 0.01 | — |
| Total fuel expense, adjusted | $7,459 | $8,153 | $2.31 | $2.64 |
| TRASM, adjusted reconciliation | TRASM, adjusted reconciliationThree Months Ended September 30, 2025 | TRASM, adjusted reconciliationThree Months Ended September 30, 2024 | TRASM, adjusted reconciliationNine Months Ended September 30, 2025 | 2024 |
|---|---|---|---|---|
| TRASM (cents) | 21.09 | 20.58 | 21.04 | 21.30 |
| Adjusted for: | ||||
| Third-party refinery sales | (1.87) | (1.42) | (1.63) | (1.63) |
| TRASM, adjusted | 19.22 | 19.16 | 19.41 | 19.67 |
| CASM-Ex reconciliation | CASM-Ex reconciliationThree Months Ended September 30, 2025 | CASM-Ex reconciliationThree Months Ended September 30, 2024 | CASM-Ex reconciliationNine Months Ended September 30, 2025 | 2024 |
|---|---|---|---|---|
| CASM (cents) | 18.96 | 18.75 | 19.11 | 19.32 |
| Adjusted for: | ||||
| Aircraft fuel and related taxes | (3.25) | (3.61) | (3.30) | (3.77) |
| Third-party refinery sales | (1.87) | (1.42) | (1.63) | (1.63) |
| Profit sharing | (0.50) | (0.42) | (0.44) | (0.45) |
| CASM-Ex | 13.35 | 13.30 | 13.73 | 13.48 |
Delta Air Lines, Inc. | September 2025 Form 10-Q 30
Item 2. MD&A - Supplemental Information
Free Cash Flow
The following table shows a reconciliation of net cash provided by operating and used in investing activities (GAAP measures) 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:
- Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core 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.
Free cash flow reconciliation
| (in millions) | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 |
|---|---|---|
| Net cash provided by operating activities | $1,847 | |
| Net cash used in investing activities | (1,035) | |
| Adjusted for: | ||
| Pension plan contributions | 6 | |
| Net cash flows related to certain airport construction projects and other | 15 | |
| Free cash flow | $833 |
Delta Air Lines, Inc. | September 2025 Form 10-Q 31
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 identify and disclose important information timely and effectively. Our management, including our Chief Executive Officer and Chief Financial Officer, concluded that the controls and procedures were effective as of September 30, 2025 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 September 30, 2025, 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. The legal proceeding described below has been described previously, including in our form 10-K. The matter is described in this Form 10-Q to include developments in the case since we filed our Form 10-K. Except as presented below, there have been no material changes from the legal proceedings described in our Form 10-K.
Capacity Antitrust Litigation
In July 2015, a number of purported class action antitrust lawsuits were filed alleging that Delta, American, United, and Southwest had conspired to restrain capacity. The lawsuits were filed in the wake of media reports that the US Department of Justice had served civil investigative demands upon these carriers seeking documents and information relating to this subject. The lawsuits have been consolidated into a single Multi-District Litigation proceeding in the U.S. District Court for the District of Columbia. In August 2023, the Court denied the defendants’ motions for summary judgment that had been pending for over two years. In Fall 2023, we moved to certify the decision for an interlocutory appeal or for reconsideration, and in September 2025, the Court denied that motion in a brief decision. The case will proceed to class discovery. We believe the claims in these cases are without merit and are vigorously defending these lawsuits.
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.
Delta Air Lines, Inc. | September 2025 Form 10-Q 32
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 September 2025 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.
In the June 2025 quarter, the Board of Directors authorized a $1.0 billion opportunistic share repurchase program open through June 30, 2028. No shares were repurchased under this program through September 30, 2025.
Shares purchased / withheld from employee awards during the September 2025 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 |
|---|---|---|---|---|
| July 2025 | 3,566 | $49.42 | 3,566 | $1,000 |
| August 2025 | 4,105 | $55.37 | 4,105 | $1,000 |
| September 2025 | 23,848 | $60.54 | 23,848 | $1,000 |
| Total | 31,519 | 31,519 |
Delta Air Lines, Inc. | September 2025 Form 10-Q 33
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).* 10.1 Second Amendment to Term Loan Credit and Guaranty Agreement, entered into as of September 30, 2025, among SkyMiles IP Ltd., Delta Air Lines, Inc. and Barclays Bank PLC, as lender and as administrative agent. (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 September 30, 2025. 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 September 30, 2025. (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 September 30, 2025. 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 September 30, 2025, formatted in Inline XBRL (included in Exhibit 101) | | Incorporated by reference. |
Delta Air Lines, Inc. | September 2025 Form 10-Q 34