filings.toolsItem 2. MD&A - Supplemental Information
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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) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Total fuel expense | $ | 2,410 | $ | 2,598 | $ | 2.47 | $ | 2.79 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| MTM adjustments and settlements on hedges | (22) | (27) | (0.02) | (0.03) | |||||||||||||||||||
| Total fuel expense, adjusted | $ | 2,388 | $ | 2,571 | $ | 2.45 | $ | 2.76 | |||||||||||||||
| TRASM, adjusted reconciliation | |||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| TRASM (cents) | 20.53 | ¢ | 20.98 | ¢ | |||||||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Third-party refinery sales | (1.55) | (1.81) | |||||||||||||||||||||
| TRASM, adjusted | 18.97 | ¢ | 19.17 | ¢ |
| CASM-Ex reconciliation | |||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| CASM (cents) | 19.69 | ¢ | 20.04 | ¢ | |||||||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Aircraft fuel and related taxes | (3.52) | (3.96) | |||||||||||||||||||||
| Third-party refinery sales | (1.55) | (1.81) | |||||||||||||||||||||
| Profit sharing | (0.18) | (0.19) | |||||||||||||||||||||
| CASM-Ex | 14.44 | ¢ | 14.08 | ¢ | |||||||||||||||||||
Free Cash Flow
The following table shows a reconciliation of net cash provided by operating and used in investing activities (GAAP measures) to free cash flow (a non-GAAP financial measure). We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Adjustments include:
*•*Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core operations.
*•*Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either reimbursed by a third party or funded with restricted cash specific to these projects.
| Free cash flow reconciliation | |||||||||||
| (in millions) | Three Months Ended March 31, 2025 | ||||||||||
| Net cash provided by operating activities | $ | 2,378 | |||||||||
| Net cash used in investing activities | (1,224) | ||||||||||
| Adjusted for: | |||||||||||
| Pension plan contributions | 10 | ||||||||||
| Net cash flows related to certain airport construction projects and other | 116 | ||||||||||
| Free cash flow | $ | 1,280 | |||||||||
| Delta Air Lines, Inc. | March 2025 Form 10-Q | 25 |
Item 3. Market Risk
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