Delta Air Lines has recently released its 10-K report, providing a detailed look at its financial performance and operations in 2024. The company operates scheduled air transportation for passengers and cargo domestically and internationally. It operates through two segments, Airline and Refinery, with a fleet of approximately 1,273 aircraft. The company sells tickets through various distribution channels, including delta.com and the Fly Delta app, and also provides aircraft maintenance and engineering support, repair, and overhaul services.
In 2024, Delta Air Lines reported an operating income of $6.0 billion, representing an improvement of $474 million compared to 2023. The company also paid profit sharing of $1.4 billion in February 2024 to its employees and will pay another $1.4 billion in February 2025.
The operating revenue for 2024 increased by $3.6 billion, or 6%, compared to 2023, primarily due to a 6% increase in capacity driven by continued strength in demand for domestic and international travel and premium products, as well as an increase in revenue related to refinery sales to third parties. However, the company faced significant disruptions in July 2024 due to the CrowdStrike-caused outage, which led to approximately $380 million in direct revenue impact related to approximately 7,000 flight cancellations over five days.
Total operating expense increased by $3.1 billion, or 6%, compared to 2023, primarily resulting from higher employee-related costs from increased wages and related expenses, higher volume-related expenses associated with the 6% increase in capacity, and an increase in expenses related to refinery sales to third parties.
During 2024, operating activities generated $8.0 billion, primarily from ticket sales and the sale of SkyMiles to partners. Total cash sales of SkyMiles to American Express were $7.4 billion during 2024, an increase of approximately 8% compared to 2023. However, the company had cash outflows of approximately $4.0 billion primarily related to the repayment of debt and finance leases.
The company's operating revenue increased $3.6 billion, or 6%, compared to 2023, related to a 6% increase in capacity resulting from continued strength in demand for domestic and international travel, particularly for premium products. The total revenue per available seat mile ("TRASM") remained flat as revenues increased at the same rate as capacity.
Delta Air Lines' 2024 Form 10-K provides a comprehensive overview of its financial performance, revenue breakdown, operating expenses, and non-operating results, offering investors and stakeholders valuable insights into the company's operations and financial health. The market has reacted to these announcements by moving the company's shares 2.1% to a price of $66.11. If you want to know more, read the company's complete 10-K report here.
