Item 2. MD&A - Results of Operations

Operating Expense

			Three Months Ended March 31,						Increase (Decrease)			% Increase (Decrease)
(in millions)			2022			2021
Salaries and related costs			$	2,826		$	2,202					$	624		28		%
Aircraft fuel and related taxes			2,092			1,017						1,075			106		%
Ancillary businesses and refinery			1,382			706						676			96		%
Contracted services			753			519						234			45		%
Depreciation and amortization			506			492						14			3		%
Landing fees and other rents			504			493						11			2		%
Regional carrier expense			491			401						90			22		%
Aircraft maintenance materials and outside repairs			465			294						171			58		%
Passenger commissions and other selling expenses			312			110						202			184		%
Passenger service			275			118						157			133		%
Aircraft rent			122			104						18			17		%
Restructuring charges			(5)			(44)						39			(89)		%
Government grant recognition			—			(1,186)						1,186			(100)		%
Other			408			322						86			27		%
Total operating expense			$	10,131		$	5,548					$	4,583		83		%

Salaries and Related Costs. During 2021, we continued to offer voluntary unpaid leaves of absence in response to the COVID-19 pandemic for periods ranging from 30 days up to 12 months and approximately 13,000 of our employees elected to take a leave of absence during the March 2021 quarter. In the March 2022 quarter we no longer offered these leaves of absence as the program terminated by the end of the September 2021 quarter. Additionally, we hired approximately 15,000 employees since the March 2021 quarter, of which approximately 4,000 were in the March 2022 quarter, in certain areas, including flight operations, reservations and customer care and airport customer service, in order to support our operations as demand and capacity returns. These actions resulted in higher salaries and related costs during the March 2022 quarter compared to the March 2021 quarter.

In March 2022, we announced that eligible employees will receive a 4% base pay increase, effective May 1, 2022.

Aircraft Fuel and Related Taxes. Fuel expense increased $1.1 billion compared to the March 2021 quarter primarily due to a 71% increase in the market price of jet fuel and a 38% increase in consumption on a comparable increase in capacity. We expect this elevated jet fuel cost to continue throughout 2022 due to recent market disruptions, further exacerbated by geopolitical events.

Additionally, during the March 2022 quarter, we purchased and retired $47 million of carbon offset credits which relate to a portion of our airline segment's 2021 carbon emissions. In the table below, these costs are shown in the carbon offset costs line item.

Fuel expense and average price per gallon
												Average Price Per Gallon
			Three Months Ended March 31,						Increase (Decrease)			Three Months Ended March 31,						Increase (Decrease)
(in millions, except per gallon data)			2022			2021						2022			2021
Fuel purchase cost(1)			$	2,102		$	895					$	1,207		$	2.81		$	1.64					$	1.17
Carbon offset costs			47			20						27			0.06			0.04						0.02
Fuel hedge impact			(4)			(23)						19			(0.01)			(0.04)						0.03
Refinery segment impact			(53)			125						(178)			(0.07)			0.23						(0.30)
Total fuel expense			$	2,092		$	1,017					$	1,075		$	2.79		$	1.87					$	0.92

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

Delta Air Lines, Inc. March 2022 Form 10-Q 24

Item 2. MD&A - Results of Operations

Ancillary Businesses and Refinery. Ancillary businesses and refinery includes expenses associated with refinery sales to third parties, aircraft maintenance services we provide to third parties and our vacation wholesale operations. Increased expenses were primarily related to refinery sales to third parties, which are at or near cost. The refinery cost of sales increased $647 million compared to the March 2021 quarter. The increase in third-party refinery sales resulted from higher pricing and production during the March 2022 quarter compared to the March 2021 quarter.

Contracted Services. During the March 2022 quarter, demand and capacity increased compared to the March 2021 quarter due to the ongoing recovery from the COVID-19 pandemic as discussed above. The continued restoration of our operations was the primary driver for the increase in contracted services.

Regional Carrier Expense. Regional carrier expense increased compared to the March 2021 quarter due to an increase in utilization as a result of the increased demand discussed above.

Aircraft Maintenance Materials and Outside Repairs. Maintenance expense increased compared to the March 2021 quarter as we returned aircraft to service and to support our operational reliability.

Passenger commissions and other selling expenses. Compared to the March 2021 quarter, passenger revenue increased 151% in the March 2022 quarter, which was the primary reason for the increase in passenger commissions and other selling expenses.

Passenger service. Passenger service increased compared to the March 2021 quarter due to the increased traffic discussed above.

Restructuring Charges. During 2020, we recorded restructuring charges for items such as fleet impairments and voluntary early retirement and separation programs following strategic business decisions in response to the COVID-19 pandemic. In the March 2022 quarter, we recognized $5 million of net adjustments to certain of those restructuring charges, representing changes in our estimates, compared to $44 million of net adjustments in the March 2021 quarter.

Government Grant Recognition. During the March 2021 quarter, we recognized $1.2 billion of government PSP grant proceeds as contra-expense that were used exclusively for the payment of employee wages, salaries and benefits.

Non-Operating Results

			Three Months Ended March 31,
(in millions)			2022			2021						Favorable (Unfavorable)
Interest expense, net			$	(274)		$	(361)					$	87
Equity method results			—			(54)						54
Gain/(loss) on investments, net			(147)			262						(409)
Loss on extinguishment of debt			(25)			(56)						31
Pension and related benefit/(expense)			73			107						(34)
Miscellaneous, net			(44)			(15)						(29)
Total non-operating expense, net			$	(417)		$	(117)					$	(300)

Interest expense, net. Interest expense, net includes interest expense and interest income. This decreased compared to the March 2021 quarter as a result of our debt reduction initiatives since the December 2020 quarter. During 2021, we made payments of approximately $5.8 billion related to our debt and finance leases, which included approximately $3.8 billion for early repayments. We have continued to pay down our debt in the March 2022 quarter with $1.4 billion of payments on debt and finance lease obligations, including $199 million for the early repurchase of various secured notes and unsecured notes through repurchases on the open market. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, during the remainder of 2022 and beyond.

Equity method results. Equity method results in 2021 reflected our share of Virgin Atlantic's equity method losses. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for additional information on our equity investments.

Delta Air Lines, Inc. March 2022 Form 10-Q 25

Item 2. MD&A - Non-Operating Results

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

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

Pension and related benefit/(expense). Pension and related benefit/(expense) reflects the net periodic benefit/(cost) of our pension and other postretirement and postemployment benefit plans. Based on our level of funding at year-end, we have modified the strategic asset allocation mix to reduce the investment risk of the portfolio. As a result of the lower risk profile of the portfolio, the weighted average expected long-term rate of return on our defined benefit pension plan assets for 2022 net periodic benefit cost is 7.0%.

Miscellaneous, net. Miscellaneous, net primarily includes foreign exchange gains/(losses) and charitable contributions.

Income Taxes

We project that our annual effective tax rate for 2022 will be approximately 25%. In certain interim periods, we may have adjustments to our net deferred tax assets as a result of changes in prior year estimates and tax laws enacted during the period, which will impact the effective tax rate for that interim period.

Refinery Segment

The refinery operated by Monroe primarily produces gasoline, diesel and jet fuel. Monroe exchanges the non-jet fuel products the refinery produces with third parties for jet fuel consumed in our airline operations. Historically, the jet fuel produced and procured through exchanging gasoline and diesel fuel produced by the refinery provided approximately 200,000 barrels per day, or approximately 75% of our pre-COVID-19 pandemic consumption, for use in our airline operations.

During the three months ended March 31, 2022, the refinery operated at near pre-pandemic production levels and a summary of the refinery results is shown below.

Refinery segment financial information
			Three Months Ended March 31,
(in millions, except per gallon data)			2022			2021						Increase (Decrease)			% Increase (Decrease)
Exchange products			$	809		$	503					$	306		61		%
Sales of refined products			26			4						22			NM
Sales to airline segment			291			—						291			NM
Third party refinery sales			1,187			540						647			120		%
Operating revenue			$	2,313		$	1,047					$	1,266		121		%
Operating income/(loss)			$	53		$	(125)					$	178		NM
Refinery segment impact on airline average price per fuel gallon			$	(0.07)		$	0.23					$	(0.30)		NM

Refinery revenues increased compared to the three months ended March 31, 2021 due primarily to higher pricing and production during the March 2022 quarter compared to the March 2021 quarter. The refinery generated operating income of $53 million in the March 2022 quarter compared to an operating loss of $125 million in the March 2021 quarter which was driven by the revenue increase described above, and partially offset by increased expense associated with the higher levels of production.

Delta Air Lines, Inc. March 2022 Form 10-Q 26

Item 2. MD&A - Refinery Segment

A refinery is subject to annual U.S. Environmental Protection Agency ("EPA") requirements to blend renewable fuels into the gasoline and on-road diesel fuel it produces. Alternatively, a refinery may purchase Renewable Identification Numbers ("RINs") from third parties in the secondary market. The Monroe refinery purchases the majority of its RINs in the secondary market. Observable RINs prices increased slightly during the March 2022 quarter and Monroe incurred $85 million in RINs compliance costs during the three months ended March 31, 2022 compared to $158 million in the three months ended March 31, 2021. The higher expense in the March 2021 quarter resulted from a larger increase in observable RINs prices during that period compared to the slight increase in the March 2022 quarter.

At March 31, 2022, we had a net fair value obligation of $430 million related to RINs compliance costs. Our obligation as of March 31, 2022 was calculated using the proposed Renewable Fuel Standard ("RFS") volume requirements, which were issued in December 2021. The EPA has not finalized the compliance deadlines to retire our obligations for 2020 and 2021, but we expect those deadlines to be within one year of the effective date of the new RFS volume requirements.

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

Operating Statistics

			Three Months Ended March 31,									2022 vs. 2021 Increase (Decrease)						2022 vs. 2019 Increase (Decrease)
Consolidated**(1)**			2022			2021			2019
Revenue passenger miles (in millions) ("RPM")			38,700			17,948			51,617			116			%			(25)			%
Available seat miles (in millions) ("ASM")			51,810			40,118			62,416			29			%			(17)			%
Passenger mile yield			17.85		¢	15.31		¢	17.93		¢	17			%			—			%
Passenger revenue per available seat mile ("PRASM")			13.33		¢	6.85		¢	14.83		¢	95			%			(10)			%
Total revenue per available seat mile ("TRASM")			18.04		¢	10.34		¢	16.78		¢	74			%			8			%
TRASM, adjusted(2)			15.75		¢	9.00		¢	16.63		¢	75			%			(5)			%
Cost per available seat mile ("CASM")			19.56		¢	13.83		¢	15.14		¢	41			%			29			%
CASM-Ex(2)			13.24		¢	13.01		¢	11.49		¢	2			%			15			%
Passenger load factor			75		%	45		%	83		%	30			pts			(8)			pts
Fuel gallons consumed (in millions)			751			545			962			38			%			(22)			%
Average price per fuel gallon(3)			$	2.79		$	1.87		$	2.06		49			%			35			%
Average price per fuel gallon, adjusted(2)(3)			$	2.79		$	1.91		$	2.04		46			%			37			%

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

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

(3)Includes the impact of fuel hedge activity, refinery segment results and carbon offset costs.

Delta Air Lines, Inc. March 2022 Form 10-Q 27

Item 2. MD&A - Fleet Information

Fleet Information

Our operating aircraft fleet, purchase commitments and options at March 31, 2022 are summarized in the following table.

Mainline aircraft information by fleet type
			Current Fleet**(1)**																		Commitments
Fleet Type			Owned			Finance Lease			Operating Lease			Total			Average Age (Years)						Purchase			Options
A220-100			41			4			—			45			2.3
A220-300			10			—			—			10			1.2						40			50
A319-100			55			2			—			57			20.1
A320-200			56			—			—			56			26.2
A321-200			69			22			36			127			3.3
A321-200neo			1			—			—			1			—						154			70
A330-200			11			—			—			11			17.0
A330-300			28			—			3			31			13.2
A330-900neo			6			3			5			14			1.5						23
A350-900			15			—			11			26			3.6						18
B-717-200			10			46			4			60			20.7
B-737-800			73			4			—			77			20.6
B-737-900ER			104			1			49			154			6.1						5
B-757-200			100			—			—			100			24.6
B-757-300			16			—			—			16			19.1
B-767-300ER			41			—			—			41			25.6
B-767-400ER			21			—			—			21			21.3
Total			657			82			108			847			14.0						240			120

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

The table below summarizes the aircraft operated by regional carriers on our behalf at March 31, 2022.

Regional aircraft information by fleet type and carrier
			Fleet Type**(1)**
Carrier			CRJ-200			CRJ-700			CRJ-900			Embraer 170			Embraer 175			Total
Endeavor Air, Inc.(2)			51			18			124			—			—			193
SkyWest Airlines, Inc.			9			6			44			—			71			130
Republic Airways, Inc.			—			—			—			11			46			57
Total			60			24			168			11			117			380

(1)Includes both active and temporarily parked aircraft.

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

Delta Air Lines, Inc. March 2022 Form 10-Q 28

Item 2. MD&A - Financial Condition and Liquidity

Financial Condition and Liquidity

As of March 31, 2022, we had $12.8 billion in cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities ("liquidity"). We expect to meet our liquidity needs for the next twelve months with cash and cash equivalents, short-term investments, restricted cash equivalents and cash flows from operations. We expect to meet our long-term liquidity needs with cash flows from operations and financing arrangements. We are continuing to evaluate the appropriate level of liquidity to maintain following the COVID-19 pandemic though, at least in the near term, we expect this level to be higher than the liquidity maintained prior to the pandemic. By 2024, we expect liquidity to be between $5 billion and $6 billion as we work to reduce our financial obligations and reinvest in the business.

Sources and Uses of Liquidity

Operating Activities

We generated positive cash flows from operations of $1.8 billion and $691 million in the three months ended March 31, 2022 and 2021, respectively. We expect to continue generating positive cash flows from operations during the remainder of 2022.

Our operating cash flow is impacted by the following factors:

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

Since the beginning of the COVID-19 pandemic in the March 2020 quarter, reduced demand for air travel has resulted in a lower level of advance bookings and the associated cash received than we have historically experienced, which has been impacting the typical seasonal trend of air traffic liability. However, domestic demand continued to improve throughout the March 2022 quarter as consumers have regained confidence to travel and increased ticket purchases for travel further in advance. Air traffic liability increased approximately $2.8 billion during the March 2022 quarter, which exceeds our historical seasonal build, reflecting the continued restoration of our business. Our air traffic liability remains above historical levels with no material change to the travel credit balance compared to December 31, 2021.

Fuel. Fuel expense represented approximately 21% and 18% of our total operating expense for the three months ended March 31, 2022 and 2021, respectively. The market price for jet fuel is volatile, which can impact the comparability of our periodic cash flows from operations. The average fuel price per gallon increased substantially during the March 2022 quarter. We expect this elevated jet fuel cost to continue throughout 2022 due to recent market disruptions, further exacerbated by geopolitical events. Fuel consumption was also higher in the March 2022 quarter compared to the March 2021 quarter due to the increase in capacity. We expect that fuel consumption will continue to increase throughout 2022 as we expect to return closer to pre-pandemic levels of capacity and demand for air travel, partially offset by increases in fuel efficiency of our fleet.

New York-JFK Airport Expansion. During 2021, the Port Authority of New York and New Jersey ("Port Authority") approved modified project plans to renovate Terminal 4 and add 10 new gates and other facilities enabling us to move out of Terminal 2 and consolidate our operations at Terminal 4. The project is estimated to cost approximately $1.5 billion and will be funded primarily with bonds issued in April 2022 by the New York Transportation Development Corporation ("NYTDC") for which our landlord, JFK International Air Terminal LLC, is the obligor. Additionally, in April 2022, we amended our sublease to provide for the Terminal 4 expansion project, including the adjustment of our subleased space and rentals. We have not completed our assessment of the project accounting, but we expect that this will increase our lease payments and lease liability and associated ROU asset in 2023. Construction started in late 2021, with Delta's portion of the project estimated to be complete by the end of 2023.

Delta Air Lines, Inc. March 2022 Form 10-Q 29

Item 2. MD&A - Financial Condition and Liquidity

Investing Activities

Short-Term Investments. During the three months ended March 31, 2022, we redeemed a net of $1.1 billion in short-term investments. See Note 3 of the Notes to the Condensed Consolidated Financial Statements for further information on these investments.

Capital Expenditures. Our capital expenditures were $1.8 billion and $438 million for the three months ended March 31, 2022 and 2021, respectively. Our capital expenditures are primarily related to the purchases of aircraft, airport construction projects, fleet modifications and technology enhancements.

We have committed to future aircraft purchases and have obtained, but are under no obligation to use, long-term financing commitments for a substantial portion of the purchase price of the aircraft. Excluding the New York-LaGuardia airport project discussed below, our expected 2022 capital expenditures of approximately $6.0 billion will be primarily for aircraft, including deliveries and advance deposit payments, as well as fleet modifications and technology enhancements and may vary depending on financing decisions.

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

We currently expect our net project costs to be approximately $3.5 billion and we bear the risks of project construction, including any potential cost over-runs. Using funding primarily provided by existing financing arrangements, we expect to spend approximately $750 million on this project during 2022, of which $223 million was incurred in the three months ended March 31, 2022.

Los Angeles International Airport ("LAX"). We have an ongoing terminal redevelopment project at LAX to modernize, update and provide post-security connection to Terminals 2 and 3. Construction is expected to be completed in 2023. The project is expected to cost approximately $2.3 billion. A substantial majority of the project costs are being funded through the Regional Airports Improvement Corporation ("RAIC"), a California public benefit corporation, using a revolving credit facility provided by a group of lenders. The credit facility was executed in 2017 and we have guaranteed the obligations of the RAIC under the credit facility. The revolving credit facility agreement was amended in January 2022, increasing the revolver capacity from $800 million to $1.1 billion.

Financing Activities

Debt and Finance Leases. In the three months ended March 31, 2022, we had cash outflows of approximately $1.4 billion related to repayments of our debt and finance lease obligations, including $199 million for the early repurchase of various secured notes and unsecured notes. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, during the remainder of 2022 and beyond.

The principal amount of our debt and finance leases was $25.8 billion at March 31, 2022.

Undrawn Lines of Credit

As of March 31, 2022, we had approximately $2.9 billion undrawn and available under our revolving credit facilities. In addition, we had approximately $400 million outstanding letters of credit as of March 31, 2022 that did not affect the availability of our revolving credit facilities.

Covenants

We were in compliance with the covenants in our debt agreements at March 31, 2022.

Delta Air Lines, Inc. March 2022 Form 10-Q 30

Item 2. MD&A - Critical Accounting Estimates

Critical Accounting Estimates

Except as set forth below, for information regarding our Critical Accounting Estimates, see the "Critical Accounting Estimates" section of "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K.

Defined Benefit Pension Plans

Expected Long-Term Rate of Return. Based on our level of funding at year-end, we have modified the strategic asset allocation mix to reduce the investment risk of the portfolio. As a result of the lower risk profile of the portfolio, the weighted average expected long-term rate of return on our defined benefit pension plan assets for 2022 net periodic benefit cost is 7.0%.

Delta Air Lines, Inc. March 2022 Form 10-Q 31

Item 2. MD&A - Supplemental Information

Supplemental Information

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

Included below are reconciliations of non-GAAP measures used within this Form 10-Q to the most directly comparable GAAP financial measures. Reconciliations below may not calculate exactly due to rounding. These reconciliations include certain adjustments to GAAP measures, which are directly related to the impact of COVID-19 and our response. These adjustments are made to provide comparability between the reported periods, if applicable, as indicated below:

• Restructuring charges. During 2020, we recorded restructuring charges for items such as fleet impairments and voluntary early retirement and separation programs following strategic business decisions in response to the COVID-19 pandemic. In the March 2022 quarter, we recognized $5 million of net adjustments to certain of those restructuring charges, representing changes in our estimates, compared to $44 million of net adjustments in the March 2021 quarter.

• Government grant recognition. We recognized $1.2 billion of the grant proceeds from the payroll support program extensions as contra-expense during the March 2021 quarter. We recognized the grant proceeds as contra-expense based on the periods that the funds were intended to compensate and have fully used all proceeds from the payroll support program extensions.

We also regularly adjust certain GAAP measures for the following items, if applicable, for the reasons indicated below:

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

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

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

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

*•*Delta Private Jets adjustment. Because we combined Delta Private Jets with Wheels Up in January 2020, we have excluded the impact of Delta Private Jets from 2019 results for comparability.

Operating expense, adjusted reconciliation
						Three Months Ended March 31,
(in millions)						2022						2021			2019
Operating expense						$	10,131					$	5,548		$	9,452
Adjusted for:
Restructuring charges						5						44			—
Government grant recognition						—						1,186			—
MTM adjustments and settlements on hedges						4						23			(8)
Third-party refinery sales						(1,187)						(540)			(48)
Delta Private Jets adjustment						—						—			(42)
Operating expense, adjusted						$	8,954					$	6,261		$	9,354

Delta Air Lines, Inc. March 2022 Form 10-Q 32

Item 2. MD&A - Supplemental Information

Fuel expense, adjusted reconciliation
												Average Price Per Gallon
			Three Months Ended March 31,									Three Months Ended March 31,
(in millions, except per gallon data)			2022			2021			2019			2022			2021			2019
Total fuel expense			$	2,092		$	1,017		$	1,978		$	2.79		$	1.87		$	2.06
Adjusted for:
MTM adjustments and settlements on hedges			4			23			(8)			0.01			0.04			(0.01)
Delta Private Jets adjustment			—			—			(7)			—			—			(0.01)
Total fuel expense, adjusted			$	2,097		$	1,040		$	1,963		$	2.79		$	1.91		$	2.04

TRASM, adjusted reconciliation
			Three Months Ended March 31,
			2022			2021			2019
TRASM (cents)			18.04		¢	10.34		¢	16.78		¢
Adjusted for:
Third-party refinery sales			(2.29)			(1.35)			(0.08)
Delta Private Jets adjustment			—			—			(0.07)
TRASM, adjusted			15.75		¢	9.00		¢	16.63		¢

CASM-Ex reconciliation
			Three Months Ended March 31,
			2022			2021			2019
CASM (cents)			19.56		¢	13.83		¢	15.14		¢
Adjusted for:
Restructuring charges			0.01			0.11			—
Government grant recognition			—			2.96			—
Aircraft fuel and related taxes			(4.04)			(2.54)			(3.17)
Third-party refinery sales			(2.29)			(1.35)			(0.08)
Profit sharing			—			—			(0.35)
Delta Private Jets adjustment			—			—			(0.05)
CASM-Ex			13.24		¢	13.01		¢	11.49		¢

Delta Air Lines, Inc. March 2022 Form 10-Q 33

Item 2. MD&A - Supplemental Information

Free Cash Flow

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

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

*•*Strategic investments and related. Cash flows related to our investments in and related transactions with other airlines are included in our GAAP investing activities. We adjust for this activity because it provides a more meaningful comparison to our airline industry peers.

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

Free cash flow reconciliation
			Three Months Ended March 31,
(in millions)			2022			2021			2019
Net cash provided by operating activities			$	1,771		$	691		$	1,942
Net cash used in investing activities			(749)			(60)			(1,096)
Adjusted for:
Net redemptions of short-term investments			(1,120)			(210)			(206)
Strategic investments and related			107			(19)			—
Net cash flows related to certain airport construction projects and other			188			308			111
Free cash flow			$	197		$	710		$	751

Delta Air Lines, Inc. March 2022 Form 10-Q 34

Item 3. Market Risk