Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

			Page
Report of Independent Registered Public Accounting Firm (PCAOB ID: 42)			53
Consolidated Balance Sheets - December 31, 2024 and 2023			55
Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022			56
Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022			57
Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022			58
Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 2022			59
Notes to the Consolidated Financial Statements			60
Note 1 - Summary of Significant Accounting Policies			60
Note 2 - Revenue Recognition			63
Note 3 - Fair Value Measurements			67
Note 4 - Investments			68
Note 5 - Goodwill and Intangible Assets			69
Note 6 - Debt			71
Note 7 - Leases			73
Note 8 - Airport Redevelopment			75
Note 9 - Employee Benefit Plans			76
Note 10 - Commitments and Contingencies			81
Note 11 - Income Taxes			84
Note 12 - Equity and Equity Compensation			86
Note 13 - Accumulated Other Comprehensive Loss			88
Note 14 - Segments			89
Note 15 - Earnings Per Share			91

Delta Air Lines, Inc. | 2024 Form 10-K						52

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of Delta Air Lines, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Delta Air Lines, Inc. (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, cash flows, and stockholders' equity for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 11, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. 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 and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Employee Benefit Plans - Net Asset Value Per Share (NAV) Asset Valuation

Description of the Matter			At December 31, 2024, the fair value of the Company’s benefit plan assets measured at fair value on a recurring basis totaled $15.7 billion, of which $12.4 billion do not have a readily determinable fair value and are measured at NAV as a practical expedient. Management determines the fair value of NAV assets by applying the methodologies described in Note 9 to the consolidated financial statements.
			Auditing the Company’s estimates of the fair value of its NAV assets required significant judgment, primarily resulting from the lag in the availability of data provided by the investment fund managers.

Delta Air Lines, Inc. | 2024 Form 10-K						53

How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting for the fair value measurement of its NAV assets, including controls over management’s assessment of the significant inputs and estimates affecting the fair value measurement.
			To test the fair value of plan assets measured at NAV, our audit procedures included, among others, evaluating the valuation methodologies used by the Company and comparing significant inputs and underlying data used in the Company's valuations to third-party source documentation. Additionally, we performed sensitivity analyses to evaluate the changes to the Company’s net periodic benefit that would result from changes in the fair value measurement, compared the Company’s asset performance results to applicable third-party benchmarks, and assessed management’s historical accuracy of estimating fair value by performing retrospective review procedures comparing the Company’s estimates of fair value as of the prior year end to the fair value NAV in the investment’s audited financial statements made available during the current year.

Loyalty Program - Mileage Breakage

Description of the Matter			At December 31, 2024, the Company’s aggregate current and noncurrent loyalty program deferred revenue balance was $8.8 billion. For the year ended December 31, 2024, the Company recognized $3.8 billion of revenue classified as loyalty travel awards within passenger revenue and $3.3 billion of revenue classified as loyalty program revenue within other revenue in the consolidated statement of operations. As disclosed in Note 2 to the consolidated financial statements, the Company defers revenue for mileage credits earned and recognizes loyalty travel awards in passenger revenue as the miles are redeemed and services are provided. In accounting for its loyalty program deferred revenue, the Company estimates the amount of mileage credits outstanding that are not expected to be redeemed (mileage breakage). The Company recognizes mileage breakage proportionally during the period in which the remaining mileage credits are redeemed. Under the Company’s loyalty program, mileage credits do not expire. Therefore, the Company uses statistical models to estimate mileage breakage based on historical redemption patterns.
			Auditing the mileage breakage estimate for the loyalty program required significant judgment. In particular, there is complexity and subjectivity in estimating mileage breakage based on expectations of future redemption patterns due to the absence of historical expirations as the Company’s mileage credits do not expire.
How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting for its loyalty program, including controls over management’s review of the estimation of the mileage breakage and the completeness and accuracy of the data underlying the mileage breakage estimate.
			To test the mileage breakage estimate, our audit procedures included, among others, involving an actuarial specialist to assist in assessing the method and assumptions used by the Company to develop the mileage breakage estimate and to independently develop a range of mileage breakage estimates and compare to the Company's estimate. Additionally, we tested the completeness and accuracy of the underlying mileage data used to develop the mileage breakage estimate.

			/s/ Ernst & Young LLP
We have served as the Company's auditor since 2006.
Atlanta, Georgia
February 11, 2025

Delta Air Lines, Inc. | 2024 Form 10-K						54

Financial Statements

DELTA AIR LINES, INC.

Consolidated Balance Sheets

						December 31,
(in millions, except share data)						2024						2023
ASSETS
Current Assets:
Cash and cash equivalents						$	3,069					$	2,741
Short-term investments						—						1,127
Accounts receivable, net of an allowance for uncollectible accounts of $18 and $17						3,224						3,130
Fuel, expendable parts and supplies inventories, net of an allowance for obsolescence of $120 and $123						1,428						1,314
Prepaid expenses and other						2,123						1,957
Total current assets						9,844						10,269
Noncurrent Assets:
Property and equipment, net of accumulated depreciation and amortization of $23,228 and $21,707						37,595						35,486
Operating lease right-of-use assets						6,644						7,004
Goodwill						9,753						9,753
Identifiable intangibles, net of accumulated amortization of $919 and $911						5,975						5,983
Equity investments						2,846						3,457
Other noncurrent assets						2,715						1,692
Total noncurrent assets						65,528						63,375
Total assets						$	75,372					$	73,644
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of debt and finance leases						$	2,175					$	2,983
Current maturities of operating leases						763						759
Air traffic liability						7,094						7,044
Accounts payable						4,650						4,446
Accrued salaries and related benefits						4,762						4,561
Loyalty program deferred revenue						4,314						3,908
Fuel card obligation						1,100						1,100
Other accrued liabilities						1,812						1,617
Total current liabilities						26,670						26,418
Noncurrent Liabilities:
Debt and finance leases						14,019						17,071
Pension, postretirement and related benefits						3,144						3,601
Loyalty program deferred revenue						4,512						4,512
Noncurrent operating leases						5,814						6,468
Deferred income taxes, net						2,176						908
Other noncurrent liabilities						3,744						3,561
Total noncurrent liabilities						33,409						36,121
Commitments and Contingencies
Stockholders' Equity:
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 654,571,606 and 654,671,194 shares issued						—						—
Additional paid-in capital						11,740						11,641
Retained earnings						8,783						5,650
Accumulated other comprehensive loss						(4,979)						(5,845)
Treasury stock, at cost, 8,098,971 and 11,224,246 shares						(251)						(341)
Total stockholders' equity						15,293						11,105
Total liabilities and stockholders' equity						$	75,372					$	73,644
The accompanying notes are an integral part of these Consolidated Financial Statements.

Delta Air Lines, Inc. | 2024 Form 10-K						55

Financial Statements

DELTA AIR LINES, INC.

Consolidated Statements of Operations

			Year Ended December 31,
(in millions, except per share data)			2024						2023						2022
Operating Revenue:
Passenger			$	50,894					$	48,909					$	40,218
Cargo			822						723						1,050
Other			9,927						8,416						9,314
Total operating revenue			61,643						58,048						50,582
Operating Expense:
Salaries and related costs			16,161						14,607						11,902
Aircraft fuel and related taxes			10,566						11,069						11,482
Ancillary businesses and refinery			5,416						4,172						5,756
Contracted services			4,228						4,041						3,345
Landing fees and other rents			3,150						2,563						2,181
Aircraft maintenance materials and outside repairs			2,616						2,432						1,982
Depreciation and amortization			2,513						2,341						2,107
Passenger commissions and other selling expenses			2,485						2,334						1,891
Regional carrier expense			2,328						2,200						2,051
Passenger service			1,788						1,750						1,453
Profit sharing			1,389						1,383						563
Aircraft rent			548						532						508
Pilot agreement and related expenses			—						864						—
Other			2,460						2,239						1,700
Total operating expense			55,648						52,527						46,921
Operating Income			5,995						5,521						3,661
Non-Operating (Expense)/Income:
Interest expense, net			(747)						(834)						(1,029)
Gain/(loss) on investments, net			(319)						1,263						(783)
Loss on extinguishment of debt			(39)						(63)						(100)
Miscellaneous, net			(232)						(279)						165
Total non-operating (expense)/income, net			(1,337)						87						(1,747)
Income Before Income Taxes			4,658						5,608						1,914
Income Tax Provision			(1,201)						(999)						(596)
Net Income			$	3,457					$	4,609					$	1,318
Basic Earnings Per Share			$	5.39					$	7.21					$	2.07
Diluted Earnings Per Share			$	5.33					$	7.17					$	2.06
The accompanying notes are an integral part of these Consolidated Financial Statements.

Delta Air Lines, Inc. | 2024 Form 10-K						56

Financial Statements

DELTA AIR LINES, INC.

Consolidated Statements of Comprehensive Income

			Year Ended December 31,
(in millions)			2024						2023						2022
Net Income			$	3,457					$	4,609					$	1,318
Other comprehensive income:
Net change in pension and other benefits			864						(44)						1,329
Net change in other			2						—						—
Total Other Comprehensive Income/(Loss)			866						(44)						1,329
Comprehensive Income			$	4,323					$	4,565					$	2,647

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

Delta Air Lines, Inc. | 2024 Form 10-K						57

Financial Statements

DELTA AIR LINES, INC.

Consolidated Statements of Cash Flows

			Year Ended December 31,
(in millions)			2024						2023						2022
Cash Flows From Operating Activities:
Net income			$	3,457					$	4,609					$	1,318
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			2,513						2,341						2,107
Deferred income taxes			1,155						980						591
(Gain)/loss on fair value investments			323						(1,283)						874
Pension, postretirement and postemployment payments greater than expense			(296)						(121)						(453)
Changes in certain assets and liabilities:
Receivables			(126)						(7)						(728)
Prepaids and other current assets			(241)						137						(1,026)
Air traffic liability			50						(1,216)						1,902
Loyalty program deferred revenue			407						538						324
Profit sharing			6						821						455
Other payables, deferred revenue and accrued liabilities			614						(285)						1,226
Other, net			163						(50)						(227)
Net cash provided by operating activities			8,025						6,464						6,363
Cash Flows From Investing Activities:
Property and equipment additions:
Flight equipment, including advance payments			(3,914)						(3,645)						(4,495)
Ground property and equipment, including technology			(1,226)						(1,678)						(1,871)
Purchase of equity investments			—						(152)						(870)
Purchase of short-term investments			—						(2,312)						(2,704)
Redemption of short-term investments			1,137						4,547						2,804
Other, net			264						92						212
Net cash used in investing activities			(3,739)						(3,148)						(6,924)
Cash Flows From Financing Activities:
Proceeds from long-term obligations			—						878						—
Payments on debt and finance lease obligations			(3,953)						(4,071)						(4,475)
Cash dividends			(321)						(128)						—
Other, net			14						(73)						(60)
Net cash used in financing activities			(4,260)						(3,394)						(4,535)
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash			26						(78)						(5,096)
Cash, cash equivalents and restricted cash at beginning of period			3,395						3,473						8,569
Cash, cash equivalents and restricted cash at end of period			$	3,421					$	3,395					$	3,473
Supplemental Disclosure of Cash Paid for Interest			$	1,001					$	1,164					$	1,261
Non-Cash Transactions:
Right-of-use assets acquired or modified under operating leases			$	327					$	661					$	531
Flight and ground equipment acquired or modified under finance leases			(17)						31						91
Operating leases converted to finance leases			25						84						342
Equity investments and other financings			—						—						330
The accompanying notes are an integral part of these Consolidated Financial Statements.

Delta Air Lines, Inc. | 2024 Form 10-K						58

Financial Statements

DELTA AIR LINES, INC.

Consolidated Statements of Stockholders' Equity

			Common Stock						Additional Paid-In Capital			Retained Earnings / (Accumulated Deficit)			Accumulated Other Comprehensive Loss			Treasury Stock
(in millions, except per share data)			Shares			Amount			Shares			Amount			Total
Balance at January 1, 2022			650			$	—		$	11,447		$	(148)		$	(7,130)		10			$	(282)		$	3,887
Net income			—			—			—			1,318			—			—			—			1,318
Other comprehensive income			—			—			—			—			1,329			—			—			1,329
Common stock issued for employee equity awards(1)			2			—			79			—			—			1			(31)			48
Balance at December 31, 2022			652			—			11,526			1,170			(5,801)			11			(313)			6,582
Net income			—			—			—			4,609			—			—			—			4,609
Dividends declared ($0.20 per share)			—			—			—			(129)			—			—			—			(129)
Other comprehensive loss			—			—			—			—			(44)			—			—			(44)
Common stock issued for employee equity awards(1)			3			—			115			—			—			—			(28)			87
Balance at December 31, 2023			655			—			11,641			5,650			(5,845)			11			(341)			11,105
Net income			—			—			—			3,457			—			—			—			3,457
Dividends declared ($0.50 per share)			—			—			—			(324)			—			—			—			(324)
Other comprehensive income			—			—			—			—			866			—			—			866
Common stock issued for employee equity awards(1)			(1)			—			31			—			—			(3)			90			121
Stock options exercised			1			—			68			—			—			—			—			68
Balance at December 31, 2024			655			$	—		$	11,740		$	8,783		$	(4,979)		8			$	(251)		$	15,293

(1)Treasury shares were withheld for payment of taxes, at a weighted average price per share of $40.84, $40.08 and $40.52 in 2024, 2023 and 2022, respectively.

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

Delta Air Lines, Inc. | 2024 Form 10-K						59

Notes to the Consolidated Financial Statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Delta Air Lines, Inc., a Delaware corporation, provides scheduled air transportation for passengers and cargo throughout the United States ("U.S.") and around the world. Our Consolidated Financial Statements include the accounts of Delta Air Lines, Inc. and our consolidated subsidiaries and have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"). We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity.

We have marketing alliances with other airlines to enhance our access to domestic and international markets. These arrangements may include codesharing, reciprocal loyalty program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, office co-location and other marketing agreements. We have received antitrust immunity for certain marketing arrangements, which enables us to offer a more integrated route network and develop common sales, marketing and discount programs for customers. Some of our marketing arrangements provide for the sharing of revenues and expenses. Revenues and expenses associated with the flights we operate under collaborative arrangements are presented on a gross basis in the applicable line items on our Consolidated Statements of Operations ("income statement").

We have 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.

Use of Estimates

We are required to make estimates and assumptions when preparing our Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the amounts reported in our Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates.

Recent Accounting Standards

Recently Adopted Standards

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This standard requires disclosure of significant segment expenses and other segment items by reportable segment. We adopted this standard effective January 1, 2024. See Note 14, "Segments," for further information regarding our segment reporting.

Standards Effective in Future Years

Income Taxes. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. This ASU is effective beginning January 1, 2025. Upon adoption of this ASU we expect to include certain additional disclosures in the effective income tax rate reconciliation in the footnotes to our Consolidated Financial Statements.

Disaggregation of Income Statement Expenses. In November 2024, the FASB issued ASU No. 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)." This standard requires disclosure of specific information about costs and expenses and becomes effective January 1, 2027. We are assessing the impact of this ASU and, upon adoption, may be required to include certain additional disclosures in the footnotes to our Consolidated Financial Statements.

Delta Air Lines, Inc. | 2024 Form 10-K						60

Notes to the Consolidated Financial Statements

Significant Accounting Policies

Our significant accounting policies are disclosed below or included within the topic-specific notes included herein.

Cash and Cash Equivalents and Short-Term Investments

Short-term, highly liquid investments with maturities of three months or less when purchased are classified as cash and cash equivalents. Investments with maturities of greater than three months, but not in excess of one year, when purchased were classified as short-term investments and stated at fair value. Investments with maturities beyond one year when purchased may be classified as short-term investments if they are expected to be available to support our short-term liquidity needs.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets ("balance sheets") that sum to the total of the same such amounts shown within the Consolidated Statements of Cash Flows ("cash flows statement").

Reconciliation of cash, cash equivalents and restricted cash
			December 31,
(in millions)			2024			2023			2022
Current assets:
Cash and cash equivalents			$	3,069		$	2,741		$	3,266
Restricted cash included in prepaid expenses and other			168			199			138
Noncurrent assets:
Restricted cash included in other noncurrent assets			184			455			69
Total cash, cash equivalents and restricted cash			$	3,421		$	3,395		$	3,473

Inventories

Fuel. As part of our strategy to mitigate the cost of the refining margin reflected in the price of jet fuel, our wholly owned subsidiary, Monroe Energy, LLC ("Monroe"), operates the Trainer oil refinery. Refined products (finished goods) and feedstock and blendstock inventories (work-in-process) are carried at the lower of cost and net realizable value. We use jet fuel in our airline operations that is produced by the refinery, procured through the exchanges with third parties of gasoline, diesel and other refined products ("non-jet fuel products") the refinery produces and purchased directly from third parties. Cost is determined using the first-in, first-out method. Costs include the raw material consumed plus direct manufacturing costs (such as labor, utilities and supplies) as incurred and an applicable portion of manufacturing overhead.

Expendables Parts and Supplies. Inventories of expendable parts related to flight equipment, which cannot be economically repaired, reconditioned or reused after removal from the aircraft, are carried at moving average cost and charged to aircraft maintenance materials and outside repairs as consumed. An allowance for obsolescence is provided over the remaining useful life of the related fleet. We also provide allowances for parts identified as excess or obsolete to reduce the carrying costs to the lower of cost or net realizable value. These parts are estimated to have residual value of 5% of the original cost.

Accounting for Refinery Related Buy/Sell Agreements

To the extent that we receive jet fuel for non-jet fuel products exchanged under buy/sell agreements, we account for these transactions as nonmonetary exchanges. We have recorded these nonmonetary exchanges at the carrying amount of the non-jet fuel products transferred within aircraft fuel and related taxes on the income statement.

Derivatives

Changes in fuel prices, interest rates and foreign currency exchange rates impact our results of operations. In an effort to manage our exposure to these risks, we may enter into derivative contracts and adjust our derivative portfolio as market conditions change. Our derivative contracts are recognized at fair value on our balance sheets and had net balances of $17 million and $5 million at December 31, 2024 and 2023, respectively. See Note 3, "Fair Value Measurements," for further information regarding our derivative contracts.

Delta Air Lines, Inc. | 2024 Form 10-K						61

Notes to the Consolidated Financial Statements

Long-Lived Assets

Our long-lived lived assets include property and equipment, net and operating lease right-of-use ("ROU") assets on our balance sheets. Our tangible assets consist primarily of flight equipment, which is mobile across geographic markets. Accordingly, assets are not allocated to specific geographic regions. See Note 7, "Leases," for further information regarding our leases. The following table summarizes our property and equipment:

Property and equipment by classification
						December 31,
(in millions, except for estimated useful life)			Estimated Useful Life			2024			2023
Flight equipment(1)			25-34 years			$	44,722		$	40,976
Ground property and equipment			3-40 years			10,695			9,986
Information technology-related assets			3-15 years			3,135			3,307
Flight and ground equipment under finance leases			Lease term or estimated useful life			1,196			1,862
Advance payments for equipment						1,075			1,062
Less: accumulated depreciation and amortization(2)						(23,228)			(21,707)
Total property and equipment, net						$	37,595		$	35,486

(1)Includes aircraft and associated engines and parts.

(2)Includes accumulated amortization for flight and ground equipment under finance leases in the amount of $371 million and $525 million at December 31, 2024 and 2023, respectively.

We record property and equipment at cost and depreciate or amortize these assets on a straight-line basis to their estimated residual values over their estimated useful lives. The estimated useful life for leasehold improvements is the shorter of lease term or estimated useful life. Depreciation and amortization expense related to our property and equipment was $2.5 billion, $2.3 billion and $2.1 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Residual values for owned aircraft, engines, spare parts and simulators are generally 5% to 10% of cost.

We capitalize certain internal and external costs incurred to develop and implement software and amortize those costs over an estimated useful life of three to fifteen years. Included in the depreciation and amortization expense discussed above, we recorded $324 million, $340 million and $307 million for amortization of capitalized software for the years ended December 31, 2024, 2023 and 2022, respectively. The net book value of these assets, which are included in information technology-related assets above, totaled $933 million and $932 million at December 31, 2024 and 2023, respectively.

We review flight equipment, ROU assets and other long-lived assets used in operations for impairment losses when events and circumstances indicate the assets may be impaired. Factors which could be indicators of impairment include, but are not limited to (1) a decision to permanently remove flight equipment or other long-lived assets from operations, (2) significant changes in the estimated useful life, (3) significant changes in projected cash flows, (4) permanent and significant declines in fleet fair values and (5) changes to the regulatory environment. For long-lived assets held for sale, we discontinue depreciation and record impairment losses when the carrying amount of these assets is greater than the fair value less the cost to sell.

To determine whether impairments exist for aircraft used in operations, we group assets at the fleet type level or at the contract level for aircraft operated by third-party regional carriers (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity, passenger mile yield, fuel and labor costs and other relevant factors. If an asset group is impaired, the impairment loss recognized is the amount by which the asset group's carrying amount exceeds its estimated fair value. We estimate aircraft fair values using published sources, appraisals and bids received from third parties, as available.

Fuel Card Obligation

We have a purchasing card with American Express for the purpose of buying jet fuel and crude oil. The card carried a maximum credit limit of $1.1 billion as of December 31, 2024 and must be paid monthly. At both December 31, 2024 and 2023, we had $1.1 billion outstanding on this purchasing card and the activity was classified as a financing activity in our cash flows statement.

Delta Air Lines, Inc. | 2024 Form 10-K						62

Notes to the Consolidated Financial Statements

Manufacturers' Credits

We periodically receive credits in connection with the acquisition of aircraft and engines or in connection with delivery delays or manufacturing defects. These credits are deferred until the aircraft and engines are delivered, and then applied as a reduction to the cost of the related equipment.

Maintenance Costs

We record maintenance costs related to our mainline and regional fleets in aircraft maintenance materials and outside repairs and regional carrier expense, respectively. Maintenance costs are expensed as incurred, except for costs incurred under power-by-the-hour contracts, which are expensed based on actual hours flown. Power-by-the-hour contracts transfer certain risk to third-party service providers and fix the amount we pay per flight hour or per flight cycle to the service provider in exchange for maintenance and repairs under a predefined maintenance program. Modifications that enhance the operating performance or extend the useful lives of airframes or engines are capitalized and amortized over the remaining estimated useful life of the asset or the remaining lease term, whichever is shorter.

Advertising Costs

We expense advertising costs in passenger commissions and other selling expenses in the year the advertising first takes place. Advertising expense was $438 million, $347 million and $302 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Commissions and Merchant Fees

Passenger sales commissions and merchant fees are recognized in passenger commissions and other selling expenses when the related revenue is recognized.

NOTE 2. REVENUE RECOGNITION

Passenger Revenue

Passenger revenue is composed of passenger ticket sales, loyalty travel awards and travel-related services performed in conjunction with a passenger’s flight.

Passenger revenue by category
			Year Ended December 31,
(in millions)			2024			2023			2022
Ticket			$	45,096		$	43,596		$	35,626
Loyalty travel awards			3,841			3,462			2,898
Travel-related services			1,957			1,851			1,694
Total passenger revenue			$	50,894		$	48,909		$	40,218

Ticket

Passenger Tickets. We defer sales of passenger tickets to be flown by us or that we sell on behalf of other airlines in our air traffic liability. Passenger revenue is recognized when we provide transportation. For tickets that we sell on behalf of other airlines, we reduce the air traffic liability when consideration is remitted to those airlines. The air traffic liability primarily includes sales of passenger tickets with scheduled departure dates in the future and travel credits, which can be applied as payment toward the cost of a ticket. We periodically evaluate the estimated air traffic liability and may record adjustments in our income statement. These adjustments relate primarily to tickets that expire unused ("ticket breakage") and items for which final settlement occurs in periods subsequent to the sale of the related tickets such as refunds, exchanges and transactions with other airlines.

We recognized approximately $6.5 billion, $7.4 billion and $4.2 billion in passenger revenue during the years ended December 31, 2024, 2023 and 2022, respectively, that had been recorded in our air traffic liability balance at the beginning of those periods.

Delta Air Lines, Inc. | 2024 Form 10-K						63

Notes to the Consolidated Financial Statements

Ticket Breakage. We estimate the value of ticket breakage and recognize revenue at the scheduled flight date. Our ticket breakage estimates are primarily based on historical experience, ticket contract terms and customers’ travel behavior.

Regional Carriers. Our regional carriers include both third-party regional carriers with which we have contract carrier agreements ("contract carriers") and Endeavor Air, Inc., our wholly owned subsidiary. Our contract carrier agreements are primarily structured as capacity purchase agreements where we purchase all or a portion of the contract carrier's capacity and are responsible for selling the seat inventory we purchase. We record revenue related to our capacity purchase agreements in passenger revenue and the related expenses in regional carrier expense. See Note 10, "Commitments and Contingencies," for additional information regarding contract carrier agreements.

Loyalty Travel Awards

Loyalty travel awards revenue is related to the redemption of mileage credits ("miles") for travel. We recognize loyalty travel awards revenue in passenger revenue as miles are redeemed and transportation is provided. See below for discussion of our loyalty program accounting policies.

Travel-Related Services

Travel-related services are primarily composed of services performed in conjunction with a passenger’s flight, including baggage fees, administrative fees and on-board sales. We recognize revenue for these services when the related transportation service is provided.

Loyalty Program

Our SkyMiles loyalty program generates customer loyalty by rewarding customers with incentives to travel on Delta. This program allows customers to earn miles by flying on Delta, Delta Connection carriers and other airlines that participate in the loyalty program. When traveling, customers earn miles primarily based on the passenger's loyalty program status, fare class and ticket price. Customers can also earn miles through participating companies. Miles are redeemable by customers for air travel on Delta and other participating airlines, access to Delta Sky Club and other program awards. To facilitate transactions with participating companies, we sell miles to non-airline businesses and other airlines.

The loyalty program includes two types of transactions that are considered revenue arrangements with multiple performance obligations (1) passenger ticket sales earning miles and (2) sale of miles to participating companies.

Passenger Ticket Sales Earning Miles. Passenger ticket sales earning miles provide customers with (1) miles earned and (2) air transportation, which are each considered performance obligations. We value each performance obligation on a standalone basis. To value the miles earned, we consider the quantitative value a passenger receives by redeeming miles for a ticket rather than paying cash, which is referred to as equivalent ticket value ("ETV"). Our estimate of ETV is adjusted for miles that are not likely to be redeemed ("mileage breakage"). We use statistical models to estimate mileage breakage based on historical redemption patterns. A change in assumptions regarding the redemption activity for miles or the estimated fair value of miles expected to be redeemed could have a material impact on our revenue in the year in which the change occurs and in future years. We recognize mileage breakage proportionally during the period in which the remaining miles are actually redeemed.

We defer revenue for the miles when earned and recognize loyalty travel awards in passenger revenue as the miles are redeemed and transportation is provided. We record the air transportation portion of the passenger ticket sales in air traffic liability and recognize passenger revenue when we provide transportation or if the ticket goes unused.

Sale of Miles to Participating Companies. Customers earn miles based on their spending with participating companies, such as credit card, ridesharing, retail, car rental and hotel companies, with which we have marketing agreements to sell miles. Our contracts to sell miles under these marketing agreements have multiple performance obligations. Payments are typically due to us monthly based on the volume of miles sold during the period, and the initial terms of our marketing contracts are from one to thirteen years. During the years ended December 31, 2024, 2023 and 2022, total cash sales from marketing agreements related to our loyalty program were $7.4 billion, $6.9 billion and $5.7 billion, respectively, which are allocated to travel and other performance obligations, as discussed below.

Delta Air Lines, Inc. | 2024 Form 10-K						64

Notes to the Consolidated Financial Statements

Our most significant arrangement to sell miles relates to our co-brand credit card relationship with American Express. Our agreements with American Express provide for joint marketing, grant certain benefits to Delta-American Express co-branded credit card holders ("cardholders") and American Express Membership Rewards program participants, and allow American Express to market its services or products using our customer database. Cardholders earn miles for making purchases using co-branded cards, and certain cardholders may also receive baggage fee waivers, lounge access, priority boarding and other benefits while traveling on Delta. Additionally, participants in the American Express Membership Rewards program may exchange their points for miles under the loyalty program. We sell miles to American Express which are then provided to their customers under the co-brand credit card program and the Membership Rewards program.

We account for marketing agreements, including those with American Express, by allocating the consideration to the individual products and services delivered. We allocate the value based on the relative selling prices of those products and services, which generally consist of award travel, baggage fee waivers, lounge access, priority boarding and the use of our brand. We determine our best estimate of the selling prices by using a discounted cash flow analysis using multiple inputs and assumptions, including (1) the expected number of miles awarded and number of miles redeemed, (2) ETV for the award travel obligation adjusted for mileage breakage, (3) published rates on our website for baggage fees, Delta Sky Club lounge access and other benefits while traveling on Delta, (4) brand value (using estimated royalties generated from the use of our brand) and (5) volume discounts provided to certain partners.

We defer the amount allocated to award travel as part of loyalty program deferred revenue and recognize loyalty travel awards in passenger revenue as the miles are redeemed and transportation is provided. Revenue allocated to services performed in conjunction with a passenger’s flight, such as baggage fee waivers, is recognized as travel-related services in passenger revenue when the related service is performed. Revenue allocated to Delta Sky Club lounge access is recognized as miscellaneous in other revenue as access is provided. Revenue allocated to the remaining performance obligations, primarily brand value, is recorded as loyalty program in other revenue as miles are delivered.

Current Activity of the Loyalty Program. Miles are combined in one homogeneous pool and are not separately identifiable. Therefore, the 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 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)			2024			2023			2022
Balance at January 1			$	8,420		$	7,882		$	7,559
Miles earned			4,463			4,173			3,419
Travel miles redeemed			(3,841)			(3,462)			(2,898)
Non-travel miles redeemed			(216)			(173)			(198)
Balance at December 31			$	8,826		$	8,420		$	7,882

The timing of mile redemptions can vary widely; however, the majority of new miles have historically been redeemed within two years of being earned. The loyalty program deferred revenue classified as a current liability represents our estimate of revenue expected to be recognized in the next twelve months based on projected redemptions, while the balance classified as a noncurrent liability represents our estimate of revenue expected to be recognized beyond twelve months.

Cargo Revenue

Cargo revenue is recognized when we provide the transportation.

Delta Air Lines, Inc. | 2024 Form 10-K						65

Notes to the Consolidated Financial Statements

Other Revenue

			Year Ended December 31,
(in millions)			2024			2023			2022
Refinery			$	4,642		$	3,379		$	4,977
Loyalty program			3,297			3,093			2,597
Ancillary businesses			772			840			846
Miscellaneous			1,216			1,104			894
Total other revenue			$	9,927		$	8,416		$	9,314

Refinery. This represents refinery sales to third parties. See Note 14, "Segments," for more information on revenue recognition within our refinery segment.

Loyalty Program. This relates to revenues from brand usage by third parties and other performance obligations embedded in miles sold, which are included within the total cash sales from marketing agreements, discussed above. This also includes the redemption of miles for non-travel awards.

Ancillary Businesses. This includes revenues from aircraft maintenance services we provide to third parties and our vacation package operations.

Miscellaneous. This is primarily composed of revenues related to lounge access, including access provided to certain American Express cardholders, codeshare agreements and certain other commercial relationships.

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 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 are summarized in the following table:

Revenue by geographic region
			Passenger Revenue												Operating Revenue
			Year Ended December 31,												Year Ended December 31,
(in millions)			2024			2023			2022						2024			2023			2022
Domestic			$	35,226		$	33,968		$	30,197					$	43,508		$	40,845		$	38,478
Atlantic			9,133			9,057			6,093						10,535			10,458			7,429
Latin America			3,995			3,798			2,889						4,564			4,292			3,334
Pacific			2,540			2,086			1,039						3,036			2,453			1,341
Total			$	50,894		$	48,909		$	40,218					$	61,643		$	58,048		$	50,582

Accounts Receivable

Accounts receivable primarily consist of amounts due from credit card companies from the sale of passenger tickets, ancillary businesses, refinery sales and other companies for the purchase of miles under the loyalty program. We provide an allowance for uncollectible accounts using an expected credit loss model which represents our estimate of expected credit losses over the lifetime of the asset.

Passenger Taxes and Fees

We are required to charge certain taxes and fees on our passenger tickets, including U.S. federal transportation taxes, federal security charges, airport passenger facility charges and foreign arrival and departure taxes. These taxes and fees are assessments on the customer for which we act as a collection agent and these amounts are not included in passenger revenue. We record a liability when the amounts are collected and reduce the liability when payments are made to the applicable government agency or operating carrier (i.e., for codeshare-related fees).

Delta Air Lines, Inc. | 2024 Form 10-K						66

Notes to the Consolidated Financial Statements

NOTE 3. FAIR VALUE MEASUREMENTS

Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. Each fair value measurement is classified into one of the following levels based on the information used in the valuation:

*•*Level 1. Observable inputs such as quoted prices in active markets.

*•*Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

*•*Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Assets and liabilities measured at fair value are based on the valuation techniques identified in the tables below. The valuation techniques are as follows:

*(a)*Market Approach. Prices and other relevant information generated by observable transactions involving identical or comparable assets or liabilities.

*(b)*Income Approach. Techniques to convert future amounts to a single present value amount based on market expectations (including present value techniques and option-pricing models).

Assets (Liabilities) Measured at Fair Value on a Recurring Basis**(1)**

			December 31, 2024												Valuation Technique
(in millions)			Total			Level 1			Level 2			Level 3
Cash equivalents			$	1,619		$	1,619		$	—		$	—		(a)
Restricted cash equivalents			351			351			—			—			(a)
Long-term investments and related			2,372			2,085			160			127			(a)(b)
Fuel hedge contracts			(17)			—			(17)			—			(a)(b)

			December 31, 2023												Valuation Technique
(in millions)			Total			Level 1			Level 2			Level 3
Cash equivalents			$	1,545		$	1,545		$	—		$	—		(a)
Restricted cash equivalents			653			653			—			—			(a)
Short-term investments
U.S. Government securities			859			204			655			—			(a)
Corporate obligations			218			—			218			—			(a)
Other fixed income securities			50			—			50			—			(a)
Long-term investments and related			2,867			2,614			134			119			(a)(b)
Fuel hedge contracts			5			—			5			—			(a)(b)

(1)See Note 9, "Employee Benefit Plans," for fair value of benefit plan assets.

Cash Equivalents and Restricted Cash Equivalents. Cash equivalents generally consist of money market funds. Restricted cash equivalents are recorded in other noncurrent assets and prepaid expenses and other on our balance sheets and generally consist of money market funds, time deposits, commercial paper and negotiable certificates of deposit, which primarily relate to proceeds from debt issued to finance, among other things, a portion of the construction costs for our new terminal facilities at New York's LaGuardia Airport as well as certain self-insurance obligations and airport commitments. 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 were 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.

Delta Air Lines, Inc. | 2024 Form 10-K						67

Notes to the 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 sheets. 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. During the year ended December 31, 2024 there were no material gains or losses related to investments classified as Level 3 as a result of fair value adjustments. See Note 4, "Investments," for further information on our long-term investments.

Fuel Hedge Contracts. A portion of our derivative contracts may be negotiated over-the-counter with counterparties without going through a public exchange. Accordingly, our fair value assessments give consideration to the risk of counterparty default (as well as our own credit risk). Such contracts would be classified as Level 2 within the fair value hierarchy. The remainder of our hedge contracts may be comprised of futures contracts, which are traded on a public exchange. These contracts would be classified within Level 1 of the fair value hierarchy. Our derivative contracts to hedge the financial risk from changing fuel prices are related to Monroe’s inventory. Our fuel hedge portfolio may consist of a combination of options, swaps or futures. Option and swap contracts are valued under income approaches using option pricing models and discounted cash flow models, respectively, based on data either readily observable in public markets, derived from public markets or provided by counterparties who regularly trade in public markets. Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices. We recognized losses of $31 million, $6 million and $394 million on our fuel hedge contracts in aircraft fuel and related taxes on our income statement for the years ended December 31, 2024, 2023 and 2022, respectively. See Note 14, "Segments," for further information on our Monroe refinery segment.

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 of the investee.

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)									December 31, 2024			December 31, 2023						December 31, 2024			December 31, 2023
Air France-KLM			Fair Value						3		%	3		%				$	62		$	110
China Eastern			Fair Value						2		%	2		%				155			134
Grupo Aeroméxico			Equity Method(1)						20		%	20		%				354			421
Hanjin-KAL			Fair Value(2)						15		%	15		%				507			561
LATAM			Fair Value						10		%	10		%				837			658
Unifi Aviation			Equity Method(3)						49		%	49		%				146			162
Wheels Up			Fair Value(4)						38		%	38		%				435			903
Other investments			Various															350			508
Equity investments																		$	2,846		$	3,457

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

(2)At December 31, 2024, 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)Our voting rights with respect to Wheels Up are capped at 29.9%. We elected to account for our investment under the fair value option.

Delta Air Lines, Inc. | 2024 Form 10-K						68

Notes to the Consolidated Financial Statements

Wheels Up. We concluded that Wheels Up is a variable interest entity ("VIE"). A VIE requires consolidation by the entity’s primary beneficiary. We determined that we are not the primary beneficiary after assessing the decision-making process for the significant activities of Wheels Up, concluding that Wheels Up's Board of Directors continues to possess the decision-making authority over the significant activities, and we do not control Wheels Up's Board. Based on this assessment, Wheels Up is not consolidated in our financial statements.

Our investment is subject to contractual transfer restrictions until September 2025 and thereafter will remain subject to certain, more limited transfer restrictions.

During the December 2024 quarter, Wheels Up entered into a five year Note Purchase Agreement with third parties which provides for the issuance of Revolving Equipment Notes in an aggregate principal amount not to exceed $332 million under a Revolving Equipment Notes Facility. We have provided credit support for the Revolving Equipment Notes Facility which effectively guarantees the Wheels Up payment obligations. As a result, and consistent with our fair value option election, we recorded the immaterial fair value of the guarantee in other noncurrent liabilities on our balance sheet.

Other Investments

This category includes various investments that are accounted for at fair value or under the equity method, depending on our ownership interest and the level of influence conveyed by our investment. Among others, this category includes our equity method investments in Virgin Atlantic and JFK IAT Member LLC and our fair value investment in CLEAR.

Virgin Atlantic. The carrying value of our investment in Virgin Atlantic remains zero as of December 31, 2024. We maintain our 49% equity interest and continue to track our share of Virgin Atlantic's losses under the equity method of accounting. These previously unrecognized losses are only recorded to the extent we make additional investments in Virgin Atlantic (i.e., additional shareholder support). As of December 31, 2024, we have approximately $480 million of unrecognized equity method losses related to our 49% interest in Virgin Atlantic.

CLEAR. In 2024, we sold in multiple transactions our equity ownership in Clear Secure, Inc. ("CLEAR"). This sale is recorded in gain/(loss) on investments, net on our income statement and cash proceeds are recorded in other, net within investing activities on our cash flows statement.

JFK IAT Member LLC. We have an equity method investment in JFK IAT Member LLC, which owns JFK International Air Terminal LLC ("IAT"), our landlord at the New York-JFK Airport. We have a long-term agreement with IAT to sublease space in Terminal 4 through 2043 ("Sublease") which requires us to pay certain fixed management fees. We determined that the investment is a VIE and assessed whether we have a controlling financial interest in IAT. Our rights under the Sublease, with respect to management of Terminal 4, are consistent with rights granted to an anchor tenant under a standard airport lease. Accordingly, we do not consolidate this entity in our Consolidated Financial Statements.

NOTE 5. GOODWILL AND INTANGIBLE ASSETS

Goodwill and Indefinite-Lived Intangible Assets

Our goodwill and identifiable intangible assets relate to the airline segment. We apply a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis (as of October 1) and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. We assess the value of our goodwill and indefinite-lived assets under either a qualitative or quantitative approach. Under a qualitative approach, we consider various market factors, including certain of the key assumptions listed below. We analyze these factors to determine if events and circumstances have affected the fair value of goodwill and indefinite-lived intangible assets. If we determine that it is more likely than not that the asset may be impaired, we use the quantitative approach to assess the asset's fair value and the amount of the impairment. Under a quantitative approach, we calculate the fair value of the asset incorporating the key assumptions listed below into our calculation.

Delta Air Lines, Inc. | 2024 Form 10-K						69

Notes to the Consolidated Financial Statements

We value goodwill and indefinite-lived intangible assets primarily using market and income approach valuation techniques. These measurements include the following key assumptions (1) forecasted revenues, expenses and cash flows, (2) current discount rates, (3) observable market transactions and (4) anticipated changes to the regulatory environment (e.g., changes in slot access and/or availability, additional Open Skies agreements or changes to antitrust approvals). These assumptions are consistent with those that hypothetical market participants would use. Because we are required to make estimates and assumptions when evaluating goodwill and indefinite-lived intangible assets for impairment, actual transaction amounts may differ materially from these estimates. We recognize an impairment charge if the asset's carrying value exceeds its estimated fair value.

Changes in certain events and circumstances could result in impairment or a change from indefinite-lived to definite-lived. Factors which could cause impairment include, but are not limited to (1) negative trends in our market capitalization, (2) reduced profitability resulting from lower passenger mile yields or higher input costs, (3) lower passenger demand as a result of weakened U.S. and global economies or other factors, (4) prolonged interruption to our operations, (5) changes to the regulatory environment, (6) operational or performance changes by other airlines and (7) strategic changes to our operations leading to diminished utilization of the intangible assets.

Identifiable Intangible Assets. Indefinite-lived assets are not amortized and consist of routes, slots, the Delta tradename and assets related to alliances and collaborative arrangements. Definite-lived intangible assets consist primarily of marketing and maintenance service agreements and are amortized on a straight-line basis or under the undiscounted cash flows method over the estimated economic life of the respective agreements. Costs incurred to renew or extend the term of an intangible asset are expensed as incurred.

During the December 2024 quarter, we performed qualitative assessments of goodwill and indefinite-lived intangible assets, including applicable factors noted above, and determined that there was no indication that the assets were impaired. Our qualitative assessments include analyses and weighting of all relevant factors that impact the fair value of our goodwill and indefinite-lived intangible assets. We previously performed quantitative assessments in the December 2023 quarter, noting no impairment of goodwill or indefinite-lived intangible assets.

Goodwill and indefinite-lived intangible assets by category
			Carrying Value at
(in millions)			December 31, 2024			December 31, 2023
Goodwill			$	9,753		$	9,753
International routes and slots			2,583			2,583
Airline alliances			1,863			1,863
Delta tradename			850			850
Domestic slots			622			622
Total			$	15,671		$	15,671

International Routes and Slots. This primarily relates to Pacific route authorities and slots at capacity-constrained airports in Asia, and slots at London-Heathrow airport.

Airline Alliances. This primarily relates to our commercial agreements with LATAM and our SkyTeam partners.

Domestic Slots. This primarily relates to our slots at New York-LaGuardia and Washington-Reagan National airports.

Delta Air Lines, Inc. | 2024 Form 10-K						70

Notes to the Consolidated Financial Statements

Definite-Lived Intangible Assets

Definite-lived intangible assets by category
			December 31, 2024									December 31, 2023
(in millions)			Gross Carrying Value			Accumulated Amortization						Gross Carrying Value			Accumulated Amortization
Marketing agreements			$	730		$	(712)					$	730		$	(708)
Maintenance contracts			192			(154)						192			(150)
Other			54			(53)						54			(53)
Total			$	976		$	(919)					$	976		$	(911)

Amortization expense was $9 million for the years ended December 31, 2024, 2023 and 2022. Based on our definite-lived intangible assets at December 31, 2024, we estimate that we will incur approximately $7 million of amortization expense annually from 2025 through 2029.

NOTE 6. DEBT

The following table summarizes our debt as of the dates indicated below:

Summary of outstanding debt by category
			Maturity Dates									Interest Rate(s) Per Annum at December 31, 2024									December 31,
(in millions)			2024			2023
Unsecured Payroll Support Program Loans(1)			2030			to			2031			1.00%									$	3,496		$	3,496
Unsecured notes			2026			to			2029			3.75%			to			7.38%			1,575			2,590
Financing arrangements secured by SkyMiles assets:
SkyMiles Notes(2)			2025			to			2028			4.50%			and			4.75%			3,970			4,518
SkyMiles Term Loan(2)(3)			2025			to			2027			8.37%									784			1,772
NYTDC Special Facilities Revenue Bonds(2)			2025			to			2045			4.00%			to			6.00%			3,591			3,656
Financing arrangements secured by aircraft:
Certificates(2)			2025			to			2028			2.00%			to			8.00%			992			1,591
Notes(2)(3)			2025			to			2033			6.62%			to			6.86%			87			165
Financing arrangements secured by slots, gates and/or routes:
Senior Secured Notes			2025									7.00%									812			838
Other financings(2)			2025			to			2030			2.51%			to			5.00%			66			67
Corporate Revolving Credit Facility			2026			to			2028			Undrawn									—			—
Other revolving credit facilities(3)			2025			to			2026			Undrawn									—			—
Total secured and unsecured debt																					15,373			18,693
Unamortized (discount)/premium and debt issuance cost, net and other																					(26)			(83)
Total debt																					15,347			18,610
Less: current maturities																					(1,801)			(2,625)
Total long-term debt																					$	13,546		$	15,985

(1)Interest rates on the Payroll Support Program 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 each loan in April 2025, January 2026 and April 2026.

(2)Due in installments.

(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.

Early Settlement of Outstanding Loans and Notes

During 2024, through early principal repayments and open market repurchases, we extinguished an aggregate principal amount of $844 million related to a portion of the SkyMiles Term Loan and various secured and unsecured notes. Collectively, these payments resulted in a $39 million loss on extinguishment of debt, which is recorded in non-operating expense in our income statement.

Delta Air Lines, Inc. | 2024 Form 10-K						71

Notes to the Consolidated Financial Statements

Availability Under Revolving Facilities

As of December 31, 2024, we had approximately $3.1 billion undrawn and available under our revolving credit facilities.

Corporate Revolving Credit Facility

During the September 2024 quarter, Delta received a second investment grade credit rating, which satisfied the collateral release conditions under the Corporate Revolving Credit Facility. As a result, the liens on collateral, including our Pacific route authorities and certain related other assets, were released during 2024. Additionally, the minimum collateral coverage ratio and minimum liquidity covenants were replaced by minimum fixed charge coverage ratio and minimum asset coverage ratio covenants.

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 Level 2 within the fair value hierarchy.

Fair value of outstanding debt
(in millions)			December 31, 2024			December 31, 2023
Net carrying amount			$	15,347		$	18,610
Fair value			$	15,300		$	18,400

Covenants

Our debt agreements contain various affirmative, negative and financial covenants. For example, certain credit facilities, including our SkyMiles financing agreements, contain, among other things, a minimum liquidity covenant. The minimum liquidity covenant requires us to maintain at least $2.0 billion of liquidity (defined as cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities). Our SkyMiles financing agreements include a debt service coverage ratio and also restrict our ability to, among other things, (1) modify the terms of the SkyMiles program, or otherwise change the policies and procedures of the SkyMiles program, in a manner that would reasonably be expected to materially impair repayment of the SkyMiles Debt, (2) sell pre-paid miles in excess of $550 million in the aggregate and (3) terminate or materially modify the intercompany arrangements governing the relationship between Delta and SkyMiles IP Ltd. with respect to the SkyMiles program. Certain of our debt agreements limit our ability to (1) incur liens under certain circumstances, (2) dispose of collateral and (3) engage in mergers and consolidations or transfer all or substantially all of our assets. The notes secured by our non-Pacific slots, gates and routes are also subject to a collateral coverage ratio.

Each of these restrictions is subject to certain exceptions and qualifications that are set forth in these debt agreements. We were in compliance with the covenants in our debt agreements at December 31, 2024.

Future Maturities

The following table summarizes scheduled maturities of our debt for the years succeeding December 31, 2024:

Future debt maturities
(in millions)			Total Debt						Amortization of Debt (Discount)/Premium and Debt Issuance Cost, net and other
2025			$	1,798					$	(29)
2026			2,313						(3)
2027			2,133						2
2028			1,884						—
2029			621						2
Thereafter			6,624						2
Total			$	15,373					$	(26)					$	15,347

Delta Air Lines, Inc. | 2024 Form 10-K						72

Notes to the Consolidated Financial Statements

NOTE 7. LEASES

We lease property and equipment under finance and operating leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of the fixed minimum lease payments over the term. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. We do not separate lease and nonlease components of contracts, except for regional aircraft and information technology ("IT") assets as discussed below.

We use the rate implicit in the lease to discount lease payments to present value, when readily determinable. As the rate implicit in the lease is rarely readily determinable, we use our incremental borrowing rate, which is based on the estimated interest rate for collateralized borrowing over a similar term of the lease at commencement date.

Some of our aircraft lease agreements include provisions for residual value guarantees. These guarantees represent an immaterial portion of our lease liability.

Aircraft

As of December 31, 2024, including aircraft operated by our regional carriers, we leased 170 aircraft, of which 55 were under finance leases and 115 were operating leases. Our aircraft leases had remaining lease terms of three months to 11 years.

In addition, we have regional aircraft leases that are embedded within our capacity purchase agreements and included in the ROU asset and lease liability. We allocated the consideration in each capacity purchase agreement to the lease and nonlease components based on their relative standalone fair values. Lease components of these agreements consist of 119 aircraft as of December 31, 2024 and nonlease components primarily consist of flight operations, in-flight and maintenance services. We determined our best estimate of the standalone fair value of the individual components by considering observable information including rates paid by our wholly owned subsidiary, Endeavor Air, Inc., and rates published by independent valuation firms. See Note 10, "Commitments and Contingencies," for additional information about our capacity purchase agreements.

Airport Facilities

Our facility leases are primarily for space at approximately 300 airports around the world that we serve. These leases reflect our use of airport terminals, office space, cargo warehouses and maintenance facilities. We generally lease space from government agencies that control the use of the airport, and as a result, these leases are classified as operating leases. The remaining lease terms vary from one month to 29 years. At the majority of the U.S. airports, the lease rates depend on airport operating costs or use of the facilities and are reset at least annually. Because of the variable nature of the rates, these leases are not recorded on our balance sheets.

Some airport facilities have fixed payment schedules, the most significant of which is New York-JFK which comprises the majority of our ground and other operating right of use asset and lease liability. For those airport leases with fixed payment schedules, we have recorded a ROU asset and lease liability representing the fixed component of the lease payments. See Note 8, "Airport Redevelopment," for more information on our significant airport redevelopment projects.

Other Ground Property and Equipment

We lease certain IT assets (including servers, mainframes, etc.), ground support equipment (including tugs, tractors, fuel trucks and de-icers) and various other equipment. The remaining lease terms range from one month to five years. Certain leased assets are embedded within various ground and IT service agreements. For ground service contracts, we have elected to include both the lease and nonlease components in the lease asset and lease liability balances on our balance sheets. For IT service contracts, we have elected to separate the lease and nonlease components and only the lease components are included in the lease asset and lease liability balances on our balance sheets. The amounts of these lease and nonlease components are not significant.

Delta Air Lines, Inc. | 2024 Form 10-K						73

Notes to the Consolidated Financial Statements

Lease Position

The table below presents the lease-related assets and liabilities recorded on the balance sheets.

Lease asset and liability balance sheet position by category
						December 31,
(in millions)			Classification on the Balance Sheets			2024			2023
Assets
Operating lease assets - Fleet(1)			Operating lease right-of-use assets			$	2,910		$	3,420
Operating lease assets - Ground and other			Operating lease right-of-use assets			3,734			3,584
Finance lease assets			Property and equipment, net			825			1,338
Total lease assets						$	7,469		$	8,342
Liabilities
Current
Operating - Fleet(1)			Current maturities of operating leases			$	551		$	552
Operating - Ground and other			Current maturities of operating leases			212			207
Finance			Current maturities of debt and finance leases			374			358
Noncurrent
Operating - Fleet(1)			Noncurrent operating leases			2,627			3,226
Operating - Ground and other			Noncurrent operating leases			3,187			3,242
Finance			Debt and finance leases			473			1,086
Total lease liabilities						$	7,424		$	8,671
Weighted-average remaining lease term
Operating leases						12 years			13 years
Finance leases						3 years			4 years
Weighted-average discount rate
Operating leases						4.28		%	3.73		%
Finance leases						3.53		%	3.12		%

(1)Includes mainline and regional aircraft leases, regional aircraft leases embedded within our capacity purchase arrangements and engine leases. The interest portion of straight-line rent expense related to fleet operating leases was $165 million and $189 million during the years ended December 31, 2024 and 2023, respectively.

Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases.

Lease cost by category
			Year Ended December 31,
(in millions)			2024			2023			2022
Finance lease cost
Amortization of leased assets			$	88		$	109		$	120
Interest of lease liabilities			54			42			45
Operating lease cost(1)			974			981			949
Short-term lease cost(1)			206			258			281
Variable lease cost(1)			2,902			2,230			1,859
Total lease cost			$	4,224		$	3,620		$	3,254

(1)Expenses are primarily classified within aircraft rent, landing fees and other rents and regional carrier expense on our income statement.

Delta Air Lines, Inc. | 2024 Form 10-K						74

Notes to the Consolidated Financial Statements

Other Information

The table below presents supplemental cash flow information related to leases.

Supplemental lease-related cash flow information
			Year Ended December 31,
(in millions)			2024			2023			2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases			$	1,225		$	1,230		$	809
Operating cash flows for finance leases			56			71			49
Financing cash flows for finance leases			190			264			363

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheets.

Future lease cash flows and reconciliation to the balance sheet
(in millions)			Operating Leases			Finance Leases
2025			$	993		$	395
2026			917			90
2027			880			268
2028			781			40
2029			620			28
Thereafter			4,183			76
Total minimum lease payments			8,374			897
Less: amount of lease payments representing interest			(1,797)			(50)
Present value of future minimum lease payments			6,577			847
Less: current obligations under leases			(763)			(374)
Long-term lease obligations			$	5,814		$	473

NOTE 8. AIRPORT REDEVELOPMENT

Los Angeles International Airport ("LAX")

In 2023, we substantially completed all construction for the LAX upgrade and modernization project that consolidates Terminals 2 and 3, as well as connects these terminals to the Tom Bradley International Terminal. The project cost approximately $2.5 billion.

A substantial majority of the project costs were funded through the Regional Airports Improvement Corporation ("RAIC"), a California public benefit corporation, using a revolving credit facility provided by a group of lenders. The credit facility was executed in 2017 and we have guaranteed the obligations of the RAIC under the credit facility. Loans made under the credit facility are being repaid with the proceeds from the City of Los Angeles' (the "City") purchase of completed project assets. Under the lease agreement and subsequent project component approvals by the City's Board of Airport Commissioners, the City appropriated approximately $1.8 billion to purchase completed project assets, representing the maximum allowable reimbursement by the City. Costs incurred in excess of the $1.8 billion maximum were not reimbursed by the City.

Our net project costs were approximately $700 million, of which approximately $350 million has been reflected as investing activities and approximately $350 million as operating activities in our cash flows statement since the project started in 2017.

Based on our assessment of the project, we concluded that we do not control the underlying assets being constructed, and therefore, we do not have the project asset or related obligation recorded on our balance sheets, except for certain assets recorded as leasehold improvements within property and equipment, net on our balance sheets.

Delta Air Lines, Inc. | 2024 Form 10-K						75

Notes to the Consolidated Financial Statements

We have recorded approximately $350 million as a ROU asset on our balance sheets related to certain costs incurred in excess of RAIC funding, though we have not recognized a ROU asset and lease liability on our balance sheets for the variable lease payments in our agreement with the City. See Note 7, "Leases" for more information on our ROU assets and lease liabilities.

New York-LaGuardia Airport

In 2024, we substantially completed all construction for the replacement of Terminals C and D of the New York-LaGuardia Airport with a new state-of-the-art terminal facility.

The project cost approximately $4.2 billion and was funded through debt issuance, existing cash and a Port Authority contribution of approximately $500 million. We entered into loan agreements to fund a portion of the construction, which are recorded on our balance sheets as debt with the proceeds reflected as restricted cash. Using funding primarily provided by these arrangements, we spent approximately $300 million, $500 million and $650 million during 2024, 2023 and 2022, respectively.

Based on our assessment of the project, we concluded that we did not control the underlying assets being constructed. Costs incurred by Delta are accounted for as leasehold improvements recorded in property and equipment, net on our balance sheets.

See Note 6, "Debt," for additional information on the debt (NYTDC Special Facilities Revenue Bonds) related to this redevelopment project.

NOTE 9. 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.

Defined Benefit Pension Plans. We sponsor defined benefit pension plans for eligible employees and retirees. These plans are generally closed to new entrants and frozen for future benefit accruals. Our funding obligations for qualified defined benefit plans are governed by the Employee Retirement Income Security Act and any additional applicable legislation. Under current legislation, any required funding would be amortized over a rolling 15-year period and calculated using a discount rate of no less than 4.75% through 2030. We estimate that there will be approximately $80 million of minimum funding requirements under these plans in 2025.

We also sponsor a market based cash balance defined benefit pension plan for eligible pilots that is funded by company contributions in excess of IRS limits in the 401(k) plan. We fund this plan with cash contributions as benefits are earned and invest those assets. The participants’ benefit is the sum of the contributions made on their behalf plus any positive return on the invested contributions. In estimating the related benefit obligation and net benefit cost, the expected long-term rate of return on plan assets is used in determining the interest crediting rate.

Defined Contribution Pension Plans. We sponsor several defined contribution plans. These plans generally cover different employee groups and employer contributions vary by plan. The costs associated with our defined contribution pension plans were approximately $1.3 billion, $1.2 billion and $1.0 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

Postretirement Healthcare Plans. We sponsor healthcare plans that provide benefits to eligible retirees and their dependents who are under age 65. We have generally eliminated company-paid post age 65 healthcare coverage, except for (1) subsidies available to a limited group of retirees and their dependents, (2) a group of retirees who retired prior to 1987 and (3) retiree medical accounts which provide a fixed dollar amount to eligible employees who retired under the 2012 voluntary workforce reduction programs or the 2020 voluntary early retirement and separation programs ("voluntary programs").

Postemployment Plans. We provide certain other welfare benefits to eligible former or inactive employees after employment but before retirement, primarily as part of the disability and survivorship plans. Substantially all employees are eligible for benefits under these plans in the event of death and/or disability.

Benefits under our postretirement and post employment plans are funded from current assets and employee contributions.

Delta Air Lines, Inc. | 2024 Form 10-K						76

Notes to the Consolidated Financial Statements

Benefit Obligations, Fair Value of Plan Assets and Funded Status

			Pension Benefits December 31,									Other Postretirement and Postemployment Benefits December 31,
(in millions)			2024			2023						2024			2023
Benefit obligation at beginning of period			$	15,911		$	15,811					$	3,503		$	3,664
Service cost(1)			233			95						92			71
Interest cost			820			855						182			200
Actuarial (gain)/loss			(738)			351						(50)			24
Benefits paid, including lump sums and annuities			(1,259)			(1,201)						(497)			(485)
Plan amendments			—			—						—			11
Participant contributions			—			—						30			18
Special termination benefits			—			—						5			—
Benefit obligation at end of period(2)			$	14,967		$	15,911					$	3,265		$	3,503
Fair value of plan assets at beginning of period			$	15,766		$	15,721					$	33		$	71
Actual gain on plan assets			1,142			1,142						(7)			3
Employer contributions			256			104						468			426
Participant contributions			—			—						30			18
Benefits paid, including lump sums and annuities			(1,259)			(1,201)						(497)			(485)
Fair value of plan assets at end of period			$	15,905		$	15,766					$	27		$	33
Funded status at end of period			$	938		$	(145)					$	(3,238)		$	(3,470)

(1)Service cost shown above relates to the market based cash balance plan. There is no service cost associated with traditional frozen defined benefit plans.

(2)At the end of each year presented, our accumulated benefit obligations for our pension plans are equal to the benefit obligations shown above.

During 2024, net actuarial gains decreased our benefit obligation primarily due to the increase in discount rates while net actuarial losses increased our benefit obligation primarily due to the decrease in discount rates during 2023. These gains and losses are recorded in AOCI and reflected in the table below. Amounts are generally amortized from AOCI over the expected future lifetime of plan participants.

Balance Sheet Position

			Pension Benefits December 31,									Other Postretirement and Postemployment Benefits December 31,
(in millions)			2024			2023						2024			2023
Other noncurrent assets			$	1,005		$	22					$	—		$	—
Current liabilities			(9)			(9)						(430)			(404)
Noncurrent liabilities			(58)			(158)						(2,808)			(3,066)
Funded status at end of period			$	938		$	(145)					$	(3,238)		$	(3,470)
Net actuarial loss			$	(5,407)		$	(6,474)					$	(103)		$	(162)
Prior service credit			—			—						(3)			1
Total accumulated other comprehensive loss, pre-tax			$	(5,407)		$	(6,474)					$	(106)		$	(161)

Certain pension plans have benefit obligations in excess of plan assets. These plans have aggregate projected benefit obligations of $67 million and are unfunded at December 31, 2024.

Delta Air Lines, Inc. | 2024 Form 10-K						77

Notes to the Consolidated Financial Statements

Net Periodic Cost/(Benefit)

			Pension Benefits Year Ended December 31,												Other Postretirement and Postemployment Benefits Year Ended December 31,
(in millions)			2024			2023			2022						2024			2023			2022
Service cost(1)			$	233		$	95		$	—					$	92		$	71		$	70
Interest cost			820			855			611						182			200			128
Expected return on plan assets			(1,062)			(1,060)			(1,319)						(2)			(1)			(17)
Amortization of prior service credit			—			—			—						(4)			(5)			(5)
Recognized net actuarial loss			248			240			255						18			14			56
Special termination benefits			—			—			—						5			—			—
Net periodic cost/(benefit)			$	239		$	130		$	(453)					$	291		$	279		$	232

(1)Service cost shown above 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 the income statement, while all other components are recorded within miscellaneous, net under non-operating expense.

Assumptions

We used the following actuarial assumptions to determine our benefit obligations and our net periodic cost/(benefit) for the periods presented:

			December 31,
Benefit Obligations**(1)**			2024			2023
Weighted average discount rate			5.71		%	5.31		%

			Year Ended December 31,
Net Periodic Cost/(Benefit)****(1)			2024			2023			2022
Weighted average discount rate			5.33		%	5.59		%	2.96		%
Weighted average expected long-term rate of return on plan assets			6.97		%	7.00		%	7.00		%
Assumed healthcare cost trend rate for the next year(2)			6.50		%	6.25		%	6.50		%

(1)Future employee compensation levels do not impact our frozen defined benefit pension plans or other postretirement plans and impact only a small portion of our other postemployment obligation.

(2)Healthcare cost trend rate is assumed to decline gradually to 5.00% by 2033 and remain unchanged thereafter.

Expected Long-Term Rate of Return. Our expected long-term rate of return on plan assets is based primarily on plan-specific investment studies using historical market return and volatility data. Modest excess return expectations versus some public market indices are incorporated into the return projections based on the actively managed structure of the investment programs and their records of achieving such returns historically. We also expect to receive a premium for investing in less liquid private markets. We review our rate of return on plan assets assumptions annually. Our annual investment performance for one particular year does not, by itself, significantly influence our evaluation. The investment strategy for our defined benefit pension plan assets is to earn a long-term return that meets or exceeds our annualized return target while taking an acceptable level of risk and maintaining sufficient liquidity to pay current benefits and other cash obligations of the plan. This is achieved by investing in a globally diversified mix of public and private equity, fixed income, real assets, hedge funds and other assets and instruments. Our weighted average expected long-term rate of return on assets for net periodic cost/(benefit) for the year ended December 31, 2024 was 6.97%.

Life Expectancy. Changes in life expectancy may significantly impact our benefit obligations and future net periodic cost/(benefit). Each year we review information published by the Society of Actuaries and other publicly available information to develop our best estimate of life expectancy for purposes of measuring pension and other postretirement and postemployment benefit obligations.

Delta Air Lines, Inc. | 2024 Form 10-K						78

Notes to the Consolidated Financial Statements

Benefit Payments

Benefit payments in the table below are based on the same assumptions used to measure the related benefit obligations. Actual benefit payments may vary significantly from these estimates. Benefits earned under our pension plans are expected to be paid from funded benefit plan trusts, while our other postretirement and postemployment benefits are funded from current assets. The following table summarizes the benefit payments that are expected to be paid in the years ending December 31:

Expected future benefit payments
(in millions)			Pension Benefits			Other Postretirement and Postemployment Benefits
2025			$	1,330		$	470
2026			1,350			470
2027			1,360			490
2028			1,350			500
2029			1,350			510
2030-2034			6,630			2,590

Plan Assets

We have adopted and implemented investment policies for our defined benefit pension plans that incorporate strategic asset allocation mixes intended to best meet the plans' long-term obligations, while maintaining an appropriate level of risk and liquidity. These asset portfolios employ a diversified mix of investments, which are reviewed periodically. Active management strategies are utilized where feasible in an effort to realize investment returns in excess of market indices. Derivatives in the plans are primarily used to manage risk and gain asset class exposure while preserving liquidity. As part of these strategies, the plans are required to hold cash collateral associated with certain derivatives. Our investment strategies target a mix of 20-40% growth-seeking assets, 25-35% income-generating assets and 35-45% risk-diversifying assets. Risk diversifying assets include hedge funds implementing long-short, market neutral and relative value strategies that invest primarily in publicly-traded equity, fixed income, foreign currency and commodity securities and are used to improve the impact of active management on the plans.

Benefit Plan Assets Measured at Fair Value on a Recurring Basis

Benefit plan assets relate to our defined benefit pension plans and certain of our postemployment benefit plans. These investments are presented net of the related benefit obligation in either other noncurrent assets or pension, postretirement and related benefits on the balance sheets depending on the funded status of each plan. See Note 3, "Fair Value Measurements," for a description of the levels within the fair value hierarchy and associated valuation techniques used to measure fair value. The following table shows our benefit plan assets by asset class.

Benefit plan assets measured at fair value on a recurring basis
			December 31, 2024												December 31, 2023												Valuation Technique
(in millions)			Level 1			Level 2			Total						Level 1			Level 2			Total
Fixed income and fixed income-related instruments			$	85		$	1,080		$	1,165					$	300		$	1,858		$	2,158					(a)(b)
Cash equivalents			330			138			468						471			685			1,156						(a)
Equities and equity-related instruments			978			3			981						647			122			769						(a)
Delta common stock			595			—			595						419			—			419						(a)
Real assets			—			25			25						11			236			247						(a)
Benefit plan assets			$	1,988		$	1,246		$	3,234					$	1,848		$	2,901		$	4,749
Investments measured at net asset value ("NAV")(1)									12,438												11,417
Total benefit plan assets									$	15,672											$	16,166

(1)Investments that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

Delta Air Lines, Inc. | 2024 Form 10-K						79

Notes to the Consolidated Financial Statements

Fixed Income and Fixed Income-Related Instruments. These investments include corporate bonds, government bonds, collateralized mortgage obligations and other asset-backed securities, and are generally valued at the bid price or the average of the bid and ask price. Prices are based on pricing models, quoted prices of securities with similar characteristics or broker quotes. Fixed income-related instruments include investments in securities traded on exchanges, including listed futures and options, which are valued at the last reported sale prices on the last business day of the year, or if not available, the last reported bid prices. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes.

Cash Equivalents. These investments primarily consist of high-quality, short-term obligations that are a part of institutional money market mutual funds that are valued using current market quotations or an appropriate substitute that reflects current market conditions.

Equities and Equity-Related Instruments. These investments include common stock and equity-related instruments. Common stock is valued at the closing price reported on the active market on which the individual securities are traded. Equity-related instruments include investments in securities traded on exchanges, including listed futures and options, which are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes.

Delta Common Stock. The Delta common stock investment is managed by an independent fiduciary.

Real Assets. These investments include commodities such as precious metals and precious metals-related instruments, some of which are valued at the closing price reported on the active market on which the individual instruments are traded, while others are priced based on pricing models, quoted prices of securities with similar characteristics or broker quotes.

The following table summarizes investments measured at fair value based on NAV per share as a practical expedient:

Benefit plan investment assets measured at NAV
			December 31, 2024												December 31, 2023
(in millions)			Fair Value			Redemption Frequency			Redemption Notice Period						Fair Value			Redemption Frequency			Redemption Notice Period
Hedge funds and hedge fund-related strategies			$	6,519		(1)			15-180 Days						$	6,175		(1)			7-180 Days
Commingled funds, private equity and private equity-related instruments(4)			2,351			(1) (2)			2-45 Days						2,279			(1) (2)			2-45 Days
Fixed income and fixed income-related instruments(4)			1,427			(1) (2)			1-180 Days						1,147			(1) (2)			1-180 Days
Real assets(4)			979			(2)			N/A						893			(2)			N/A
Balanced allocation			349			(5)			0 Days						100			(5)			0 Days
Other			813			(3)			2-10 Days						823			(3)			2-10 Days
Total investments measured at NAV			$	12,438											$	11,417

(1)Various. Includes funds with monthly or more frequent, quarterly and/or custom redemption frequencies as well as funds with a redemption window following the anniversary of the initial investment.

(2)Includes private funds that are closed-ended structures in which the plans' investments are generally not eligible for redemption.

(3)Includes funds with monthly or more frequent redemptions.

(4)Unfunded commitments were $1.3 billion for commingled funds, private equity and private equity-related instruments, $287 million for fixed income and fixed income-related instruments and $618 million for real assets at December 31, 2024.

(5)Includes funds with daily redemptions.

On an annual basis we assess the potential for adjustments to the fair value of all investments. Due to a lag in the availability of data for certain of these investments (this primarily applies to private equity, private equity-related strategies and real assets), we solicit valuation updates from the investment fund managers and use their information and corroborating data from public markets to determine any needed fair value adjustments.

Hedge Funds and Hedge Fund-Related Strategies. These investments are primarily made through shares of limited partnerships or similar structures for which a liquid secondary market does not exist.

Delta Air Lines, Inc. | 2024 Form 10-K						80

Notes to the Consolidated Financial Statements

Commingled Funds, Private Equity and Private Equity-Related Instruments. These investments include commingled funds invested in common stock, as well as private equity and private equity-related instruments. Commingled funds are valued based on quoted market prices of the underlying assets owned by the fund. Private equity and private equity-related instruments are typically valued quarterly by the fund managers using valuation models where one or more of the significant inputs into the model cannot be observed and which require the development of assumptions.

Fixed Income and Fixed Income-Related Instruments. These investments include private fixed income instruments that are typically valued monthly or quarterly by the fund managers or third-party valuation agents using valuation models where one or more of significant inputs into the model cannot be observed and which require the development of assumptions.

Real Assets. These investments include real estate, energy, timberland, agriculture and infrastructure. The valuation of real assets requires significant judgment due to the absence of quoted market prices as well as the inherent lack of liquidity and the long-term nature of these assets. Real assets are typically valued quarterly by the fund managers using valuation models where one or more of the significant inputs into the model cannot be observed and which require the development of assumptions*.*

Balanced Allocation. The investments include commingled funds invested in common stock and fixed income instruments. Commingled funds are valued based on quoted market prices of the underlying assets owned by the fund.

Other. Primarily includes globally-diversified, risk-managed commingled funds consisting mainly of equity, fixed income and commodity exposures.

Other

We also sponsor defined benefit pension plans for eligible employees in certain foreign countries. These plans did not have a material impact on our Consolidated Financial Statements in any period presented.

Profit Sharing Program

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.

For both the years ended December 31, 2024 and 2023, we recorded profit sharing expense of $1.4 billion under the program.

NOTE 10. COMMITMENTS AND CONTINGENCIES

Aircraft Purchase Commitments

Our future aircraft purchase commitments totaled approximately $18.3 billion at December 31, 2024:

Aircraft purchase commitments**(1)**
(in millions)			Total
2025			$	3,340
2026			5,020
2027			4,430
2028			3,880
2029			1,250
Thereafter			370
Total			$	18,290

(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.

Delta Air Lines, Inc. | 2024 Form 10-K						81

Notes to the Consolidated Financial Statements

Our future aircraft purchase commitments included the following aircraft at December 31, 2024:

Aircraft purchase commitments by fleet type
Fleet Type			Purchase Commitments
A220-300			72
A321-200neo			86
A330-900neo			7
A350-900			9
A350-1000			20
B-737-10			100
Total			294

Aircraft Orders

During 2024, we entered into a purchase agreement with Airbus for 20 A350-1000 aircraft, with an option to purchase an additional 20 widebody aircraft. Deliveries of these aircraft are scheduled to begin in 2026.

Also during 2024 we amended our purchase agreement with Boeing and received an updated delivery schedule for our Boeing 737-10 orders.

Contract Carrier Agreements

We have contract carrier agreements with regional carriers expiring through 2034. These agreements are structured as either capacity purchase or revenue proration agreements.

Capacity Purchase Agreements. Our contractual agreements with regional carriers are primarily capacity purchase arrangements, under which we control the scheduling, pricing, reservations, ticketing and seat inventories for the regional carriers' flights operating under our "DL" designator code. We are entitled to all ticket, cargo, mail, in-flight and ancillary revenues associated with the flights under these capacity purchase arrangements. We pay those airlines an amount, as defined in the applicable agreement, which is based on a determination of their cost of operating those flights and other factors intended to approximate market rates for those services.

The following table shows our minimum obligations at December 31, 2024 under our existing capacity purchase agreements with third-party regional carriers, excluding contract carrier payments accounted for as leases of aircraft, which are described in Note 7, "Leases." The obligations set forth in the table contemplate minimum levels of flying by the regional carriers under the respective agreements and also reflect assumptions regarding certain costs associated with the minimum levels of flying such as the cost of fuel, labor, maintenance, insurance, catering, property tax and landing fees. Accordingly, our actual payments under these agreements could differ materially from the minimum fixed obligations set forth in the table below.

Contract carrier minimum obligations
(in millions)			Amount
2025			$	1,750
2026			1,650
2027			1,590
2028			1,290
2029			710
Thereafter			680
Total			$	7,670

Delta Air Lines, Inc. | 2024 Form 10-K						82

Notes to the Consolidated Financial Statements

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 Consolidated Financial Statements.

Credit Card Processing Agreements

Our VISA/MasterCard and American Express credit card processing agreements provide that no cash reserve ("Reserve") is required, and no withholding of payment related to receivables collected will occur, except in certain circumstances, including when we do not maintain a required level of liquidity as outlined in the merchant processing agreements. In circumstances in which the credit card processor can establish a Reserve or withhold payments, the amount of the Reserve or payments that may be withheld would be equal to the potential liability of the credit card processor for tickets purchased with VISA/MasterCard or American Express credit cards, as applicable, that had not yet been used for travel. We did not have a Reserve or an amount withheld as of December 31, 2024 or 2023.

Other Contingencies

General Indemnifications

We are the lessee under many commercial real estate leases. It is common in these transactions for us, as the lessee, to agree to indemnify the lessor and the lessor's related parties for tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. This type of indemnity would typically make us responsible to indemnified parties for liabilities arising out of the conduct of, among others, contractors, licensees and invitees at, or in connection with, the use or occupancy of the leased premises. This indemnity often extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by either their sole or gross negligence or their willful misconduct.

Our aircraft and other equipment lease and financing agreements typically contain provisions requiring us, as the lessee or obligor, to indemnify the other parties to those agreements, including certain of those parties' related persons, against virtually any liabilities that might arise from the use or operation of the aircraft or other equipment.

We believe that our insurance would cover most of our exposure to liabilities and related indemnities associated with the commercial real estate leases and aircraft and other equipment lease and financing agreements described above. While our insurance does not typically cover environmental liabilities, we have insurance policies in place as required by applicable environmental laws.

Some of our aircraft and other financing transactions include provisions that require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to specified changes in law or regulations. In some of these financing transactions, we also bear the risk of changes in tax laws that would subject payments to non-U.S. lenders to withholding taxes.

We cannot reasonably estimate our potential future payments under the indemnities and related provisions described above because we cannot predict (1) when and under what circumstances these provisions may be triggered and (2) the amount that would be payable if the provisions were triggered because the amounts would be based on facts and circumstances existing at such time.

Delta Air Lines, Inc. | 2024 Form 10-K						83

Notes to the Consolidated Financial Statements

Employees Under Collective Bargaining Agreements

As of December 31, 2024, we had approximately 103,000 full-time equivalent employees, approximately 20% of whom were represented by unions.

Domestic airline employees represented by collective bargaining agreements by group
Employee Group			Approximate Number of Employees Represented						Union			Date on which Collective Bargaining Agreement Becomes Amendable
Delta Pilots			17,380						ALPA			December 31, 2026
Delta Flight Superintendents (Dispatchers)(1)			500						PAFCA			November 1, 2024
Endeavor Pilots			1,540						ALPA			January 1, 2029
Endeavor Flight Attendants			1,700						AFA			March 31, 2027

(1)We are in discussions with representatives of PAFCA regarding terms of the collective bargaining agreement that became amendable on November 1, 2024.

In addition to the domestic airline employee groups discussed above, approximately 200 refinery employees of our wholly owned subsidiary Monroe are represented by the United Steel Workers under an agreement that expires on February 28, 2026. This agreement is governed by the National Labor Relations Act, which generally allows either party to engage in self-help upon the expiration of the agreement. Certain of our employees outside the U.S. are represented by unions, work councils or other local representative groups.

Other

We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs.

NOTE 11. INCOME TAXES

Income Tax Provision

Components of income tax provision
			Year Ended December 31,
(in millions)			2024			2023			2022
Current tax provision:
Federal			$	—		$	—		$	—
State and local			(35)			(8)			(1)
International			(11)			(11)			(4)
Deferred tax (provision) benefit:
Federal			(1,038)			(896)			(525)
State and local			(117)			(84)			(66)
Income tax provision			$	(1,201)		$	(999)		$	(596)

Delta Air Lines, Inc. | 2024 Form 10-K						84

Notes to the Consolidated Financial Statements

The following table presents the principal reasons for the difference between the effective tax rate and the U.S. federal statutory income tax rate:

Reconciliation of statutory federal income tax rate to the effective income tax rate
			Year Ended December 31,
			2024			2023			2022
U.S. federal statutory income tax rate			21.0		%	21.0		%	21.0		%
State taxes, net of federal benefit			2.6			2.0			3.0
Permanent differences			1.0			0.7			1.0
Valuation allowance			1.9			(5.0)			7.3
Other			(0.7)			(0.9)			(1.1)
Effective income tax rate			25.8		%	17.8		%	31.2		%

Deferred Taxes

We account for deferred income taxes under the asset and liability method. We recognize deferred tax assets and liabilities based on the tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by current enacted tax rates. Deferred tax assets and liabilities are net by jurisdiction and are recorded as noncurrent on the balance sheets.

We have elected to recognize global intangible low tax income in the period it arises and do not recognize deferred taxes for basis differences that may reverse in future years.

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes.

Significant components of deferred income tax assets and liabilities
			December 31,
(in millions)			2024			2023
Deferred tax assets:
Net operating loss carryforwards			$	799		$	1,217
Capital loss carryforward			—			8
Pension, postretirement and other benefits			1,205			1,488
Investments			936			806
Deferred revenue			2,158			2,110
Lease liabilities			2,816			2,193
Other			608			709
Valuation allowance			(951)			(877)
Total deferred tax assets			$	7,571		$	7,654
Deferred tax liabilities:
Depreciation			$	7,040		$	5,570
Operating lease assets			1,369			1,533
Intangible assets			1,165			1,143
Other			78			73
Total deferred tax liabilities			$	9,652		$	8,319
Balance Sheet Position:
Other noncurrent assets			$	95		$	243
Deferred income taxes, net			2,176			908
Net deferred tax liabilities			$	2,081		$	665

Delta Air Lines, Inc. | 2024 Form 10-K						85

Notes to the Consolidated Financial Statements

Valuation Allowance

A valuation allowance is recorded to reduce deferred tax assets when necessary. We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. We establish valuation allowances if it is more likely than not that we will be unable to realize our deferred income tax assets. In making this determination, we consider available positive and negative evidence and make certain assumptions. We consider, among other things, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, our historical financial results and tax planning strategies.

At December 31, 2024 our net deferred tax liability balance was $2.1 billion, including a $951 million valuation allowance primarily related to certain net realized and unrealized capital losses and certain state net operating losses.

As of December 31, 2024, we had approximately $2.7 billion of U.S. federal pre-tax net operating loss carryforwards which we are expecting to utilize during 2025. These net operating loss carryforwards were primarily generated in 2020 and do not expire. Therefore, we have not recorded a valuation allowance on our deferred tax assets other than the certain net realized and unrealized capital losses and certain state net operating losses that have short expiration periods.

The following table presents the balance of our valuation allowance on our deferred income tax assets and the associated activity:

Valuation allowance activity
(in millions)			2024			2023
Balance at January 1			$	877		$	1,176
Tax provision			74			(299)
Balance at December 31			$	951		$	877

Other

The amount of, and changes to, our uncertain tax positions were not material in any of the years presented. We are currently under audit by the IRS for the 2024 and 2023 tax years.

NOTE 12. EQUITY AND EQUITY COMPENSATION

Equity

We are authorized to issue 2.0 billion shares of capital stock, of which up to 1.5 billion may be shares of common stock, par value $0.0001 per share, and up to 500 million may be shares of preferred stock.

Preferred Stock. We may issue preferred stock in one or more series. The Board of Directors is authorized (1) to fix the descriptions, powers (including voting powers), preferences, rights, qualifications, limitations and restrictions with respect to any series of preferred stock and (2) to specify the number of shares of any series of preferred stock. We have not issued any preferred stock.

Treasury Stock. We generally withhold shares of Delta common stock to cover employees' portion of required tax withholdings when employee equity awards vest. These shares are valued at cost, which equals the market price of the common stock on the date of vesting. The weighted average cost per share held in treasury was $31.06 and $30.37 as of December 31, 2024 and 2023, respectively.

Delta Air Lines, Inc. | 2024 Form 10-K						86

Notes to the Consolidated Financial Statements

Warrants. During 2020 and 2021, in connection with the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the "CARES Act") payroll support program ("PSP") and extensions, we issued warrants to the U.S Department of the Treasury to acquire more than 11.1 million shares of Delta common stock, which have subsequently been sold to a third party. The number of warrants outstanding slightly increased and the exercise price of the warrants slightly decreased since December 31, 2023 due to adjustments resulting from dividend payments during 2024. Key terms under each program as of December 31, 2024 are as follows:

Summary of payroll support program warrants
(in millions, except exercise price)			Number of Warrants			Exercise Price			Expiration Year
Payroll Support Program (PSP1)			6.9			$	23.99		2025
Payroll Support Program Extension (PSP2)			2.4			39.11			2026
Payroll Support Program 3 (PSP3)			1.9			47.05			2026
Total			11.2

Equity Compensation

Our broad-based equity and cash compensation plan provides for grants of restricted stock, restricted stock units, stock options, performance awards, including cash incentive awards and other equity-based awards (the "Plan"). Shares of common stock issued under the Plan may be made available from authorized, but unissued, common stock or common stock we acquire. If any shares of our common stock are covered by an award that expires, is canceled, forfeited or otherwise terminates without delivery of shares (including shares surrendered or withheld for payment of taxes related to an award), such shares will again be available for issuance under the Plan except for (1) any shares tendered in payment of an option, (2) shares withheld to satisfy any tax withholding obligation with respect to the exercise of an option or stock appreciation right ("SAR") or (3) shares covered by a stock-settled SAR or other awards that were not issued upon the settlement of the award. The Plan authorizes the issuance of up to 163 million shares of common stock. As of December 31, 2024, there were nine million shares available for future grants.

We make long-term incentive awards annually to eligible employees under the Plan. Generally, awards vest over time, subject to the employee's continued employment. Equity compensation expense, including awards payable in common stock or cash, is recognized in salaries and related costs over the employee's requisite service period (generally, the vesting period of the award) and totaled $236 million, $180 million and $150 million for the years ended December 31, 2024, 2023 and 2022, respectively. We record expense on a straight-line basis for awards with installment vesting. As of December 31, 2024, unrecognized costs related to unvested shares and stock options totaled $117 million. We expect substantially all unvested awards to vest and recognize forfeitures as they occur.

Restricted Stock. Restricted stock is common stock that may not be sold or otherwise transferred for a period of time and is subject to forfeiture in certain circumstances. The fair value of restricted stock awards is based on the closing price of the common stock on the grant date. As of December 31, 2024, there were 4.3 million unvested restricted stock awards. Restricted stock activity under the Plan for the years ended December 31, 2024, 2023 and 2022 is as follows:

Restricted stock award activity
			2024						2023						2022
			Restricted Stock Awards			Weighted-Average Grant Price			Restricted Stock Awards			Weighted-Average Grant Price			Restricted Stock Awards			Weighted-Average Grant Price
(in millions, except weighted avg grant price)
Outstanding at January 1			4.2			$	40.51		3.1			$	43.43		2.9			$	45.66
Granted			2.6			40.75			2.7			39.63			1.9			42.45
Vested			(2.3)			40.60			(1.5)			44.79			(1.6)			46.31
Forfeited			(0.2)			40.49			(0.1)			40.94			(0.1)			45.51
Outstanding at December 31			4.3			$	40.60		4.2			$	40.51		3.1			$	43.43

Delta Air Lines, Inc. | 2024 Form 10-K						87

Notes to the Consolidated Financial Statements

Stock Options. Stock options are granted with an exercise price equal to the closing price of Delta common stock on the grant date and generally have a 10-year term. We determine the fair value of stock options at the grant date using an option pricing model. As of December 31, 2024, there were 4.8 million outstanding exercisable stock option awards with a weighted average exercise price of $50.41. Stock option activity under the Plan for the years ended December 31, 2024, 2023 and 2022 is as follows:

Stock option activity
			2024						2023						2022
			Stock Options			Weighted-Average Exercise Price			Stock Options			Weighted-Average Exercise Price			Stock Options			Weighted-Average Exercise Price
(in millions, except weighted avg grant price)
Outstanding at January 1			6.2			$	50.42		6.2			$	50.40		6.2			$	50.41
Granted			—			—			—			—			—			—
Exercised(1)			(1.4)			50.35			—			39.78			—			—
Forfeited(1)			—			52.89			—			51.91			—			52.87
Outstanding at December 31			4.8			$	50.41		6.2			$	50.42		6.2			$	50.40

(1)Forfeitures in 2024, 2023 and 2022 and exercises in 2023 occurred, but round to zero in the table above.

Performance Awards. Performance awards are dollar-denominated long-term incentive opportunities which are payable in cash to all participants. Potential performance award payments range from 0%-200% of a target level and are contingent upon our achieving certain financial and operational goals over a three-year performance period.

Performance Restricted Stock Units (PRSU). Performance restricted stock units are long-term incentive opportunities that provide executive officers with the right to receive shares of Delta stock based on our achievement of certain performance conditions at the end of a three-year period. PRSUs were first granted to executive officers in 2022. Potential payouts range from 0%-300% of a target level for the grants in 2022 and 2023 and range from 0%-200% of a target level for the grants in 2024. Based on the closing stock price at year end and contingent on achieving the specified performance conditions, the maximum shares that could be issued were 6.0 million, 3.3 million and 1.3 million for the years ended December 31, 2024, 2023 and 2022 respectively.

NOTE 13. ACCUMULATED OTHER COMPREHENSIVE LOSS

Components of accumulated other comprehensive loss
(in millions)			Pension and Other Benefits Liabilities**(2)**			Other						Tax Effect			Total
Balance at January 1, 2022			$	(8,355)		$	41					$	1,184		$	(7,130)
Changes in value			1,419			—						(330)			1,089
Reclassifications into earnings(1)			312			—						(72)			240
Balance at December 31, 2022			(6,624)			41						782			(5,801)
Changes in value			(303)			(1)						71			(233)
Reclassifications into earnings(1)			246			—						(57)			189
Balance at December 31, 2023			(6,681)			40						796			(5,845)
Changes in value			859			2						(199)			662
Reclassifications into earnings(1)			265			—						(61)			204
Balance at December 31, 2024			$	(5,557)		$	42					$	536		$	(4,979)

(1)Amounts reclassified from AOCI for pension and other benefits liabilities are recorded in miscellaneous, net in non-operating expense in our income statement.

(2)Includes approximately $750 million of deferred income tax expense as a result of tax law changes and prior valuation allowance releases through continuing operations, that will not be recognized in net income until pension and other benefit obligations are fully extinguished.

Delta Air Lines, Inc. | 2024 Form 10-K						88

Notes to the Consolidated Financial Statements

NOTE 14. SEGMENTS

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") and is used in resource allocation and performance assessments. Our executive leadership team, the Delta Leadership Committee (“DLC”), is our CODM. The DLC regularly reviews information for our two operating segments: our airline segment and our refinery segment.

The DLC uses operating income to evaluate segment performance. The DLC is involved in determining and reviewing projected operating income as part of the annual plan process. Throughout the year, the DLC considers forecast to actual results and variances on a monthly and quarterly basis to allocate resources for the airline segment's fleet and network and to optimize the refinery segment's operations. The DLC also considers this information in strategic decisions related to capital allocations, including investments in fleet, ground, information technology and refinery assets, route and network development and human capital.

Airline Segment

Our airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the U.S. and around the world and includes our loyalty program, as well as other ancillary businesses. This allows us to benefit from an integrated revenue pricing and route network. Our flight equipment forms one fleet, which is deployed through a single route scheduling system. When making resource allocation decisions, our CODM evaluates aggregated flight profitability data, which considers fleet type and route economics, but gives no weight to the financial impact of the resource allocation decision on a geographic region or mainline/regional carrier basis. Our objective in making resource allocation decisions is to optimize our consolidated financial results.

Refinery Segment

Our Monroe subsidiary operates the Trainer oil refinery and related assets located near Philadelphia, Pennsylvania, as part of our strategy to mitigate the cost of the refining margin reflected in the price of jet fuel. Monroe's operations include pipelines and terminal assets that allow the refinery to supply jet fuel to our airline operations throughout the Northeastern U.S., including our New York hubs at LaGuardia and JFK.

Our refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel, as well as non-jet fuel products. We exchange the non-jet fuel products produced by the refinery with counterparties for jet fuel consumed in our airline operations. The gross fair value of the products exchanged under these agreements during the years ended December 31, 2024, 2023 and 2022 was $1.5 billion, $2.4 billion and $3.5 billion, respectively.

A refinery is subject to annual Environmental Protection Agency ("EPA") requirements to blend renewable fuels into the gasoline and on-road diesel fuel it produces. A refinery may meet its obligation by blending the necessary volumes of renewable fuels, by purchasing Renewable Identification Numbers ("RINs") in the open market or through a combination of blending and purchasing RINs. Because Monroe is able to blend only a small amount of renewable fuels, it must purchase the majority of its RINs requirement in the secondary market. Renewable fuel compliance costs are accrued in accounts payable each period as the RINs obligation is generated. Purchased RINs are carried at the lower of cost and net realizable value and are recorded in prepaid expenses and other. The RINs asset and obligation are retired when used to satisfy EPA requirements.

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. Our income tax provision is determined on a consolidated basis and is not calculated at the segment level.

Delta Air Lines, Inc. | 2024 Form 10-K						89

Notes to the Consolidated Financial Statements

Financial information by segment
(in millions)			Airline			Refinery						Intersegment Sales/Other						Consolidated
Year Ended December 31, 2024
Operating revenue			$	57,001		$	7,767					$	(3,125)		(1)			$	61,643
Airline salaries and related costs			16,161
Aircraft fuel and related costs			10,566
Refinery cost of goods sold(2)						7,234
Depreciation and amortization			2,513			113
Other segment items(3)			21,804			382
Operating income(4)			5,957			38												5,995
Interest expense, net			747			3						(3)						747
Other non-operating expense			590															590
Income before income taxes			4,620			35						3						4,658
Total assets, end of period			72,979			2,418						(25)						75,372
Capital expenditures			5,075			65												5,140
Year Ended December 31, 2023
Operating revenue			$	54,669		$	7,572					$	(4,193)		(1)			$	58,048
Airline salaries and related costs			14,607
Aircraft fuel and related costs			11,069
Refinery cost of goods sold(2)						6,665
Depreciation and amortization			2,341			94
Other segment items(3)			21,516			428
Operating income(4)			5,136			385												5,521
Interest expense, net			834			17						(17)						834
Other non-operating income			921															921
Income before income taxes			5,223			368						17						5,608
Total assets, end of period			71,529			2,174						(59)						73,644
Capital expenditures			5,088			235												5,323
Year Ended December 31, 2022
Operating revenue			$	45,605		$	10,706					$	(5,729)		(1)			$	50,582
Airline salaries and related costs			11,902
Aircraft fuel and related costs			11,482
Refinery cost of goods sold(2)						9,442
Depreciation and amortization			2,107			93
Other segment items(3)			17,230			394
Operating income(4)			2,884			777												3,661
Interest expense, net			1,029			12						(12)						1,029
Other non-operating expense			718															718
Income before income taxes			1,137			765						12						1,914
Total assets, end of period			69,355			3,039						(106)						72,288
Capital expenditures			6,217			149												6,366

(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 the 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. | 2024 Form 10-K						90

Notes to the Consolidated Financial Statements

Operating revenue intersegment sales/other
			Year Ended December 31,
(in millions)			2024			2023			2022
Sales to airline segment(1)			$	(1,421)		$	(1,535)		$	(1,976)
Exchanged products(2)			(1,473)			(2,354)			(3,475)
Sales of refined products			(231)			(304)			(278)
Total operating revenue intersegment sales/other			$	(3,125)		$	(4,193)		$	(5,729)

(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.

NOTE 15. 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 our computation:

Basic and diluted earnings per share
			Year Ended December 31,
(in millions, except per share data)			2024			2023			2022
Net income			$	3,457		$	4,609		$	1,318
Basic weighted average shares outstanding			641			639			638
Dilutive effect of share-based instruments			7			4			3
Diluted weighted average shares outstanding			648			643			641
Basic earnings per share			$	5.39		$	7.21		$	2.07
Diluted earnings per share			$	5.33		$	7.17		$	2.06

Delta Air Lines, Inc. | 2024 Form 10-K						91