Hey PCN, your silver wings may have been
clipped but your “Golden Wings” haven’t.
Why don’t you do something good for yourself and spouse and join the DGW.
See below:
Dear Mark,
Attached is
information on Delta Golden Wings Membership and a form to use when
joining. Please include this in your next PCN. It is great
what you do and we thank you!
DGW
DGW Dues for 2020
and Membership Form
Dear Prospective Delta Golden Wings Members:
Happy New Year! It is time to join the Delta Golden
Wings.. Dues are $20.00 per year for pilot members and $10.00 for spouses of
deceased pilot members. The Bylaws require dues to be paid by January 31st each
year.
How
do I submit my check for dues? Please print the attached Registration form and
submit it with your check.
This
form will also have information to place on our Roster. The Delta Golden Wings is the ONLY organization that keeps information on
retired pilot members.
Please
fill your information and enclose it with your check and mail to Jim Baird,
Treasurer of the DGW.Please contact the DGW Webmaster at this link, if you have
further questions. Thank you!
Your Delta Golden Wings Board of Directors
++++++++++++++++++++++++++++++++++++++++++++++++++++++++
A BUMPER year for your
favorite air line:
Delta Air Lines Announces December Quarter and Full Year
2019 Profit
Jan 14, 2020
December quarter 2019 pre-tax income of $1.4 billion, net
income of $1.1 billion and earnings per diluted share of $1.71
Full year 2019 pre-tax income of $6.2 billion and earnings per diluted share of $7.30, a nearly 30% increase over prior year
Record $1.6 billion profit sharing for Delta's 90,000 employees
Full year 2019 operating cash flow of $8.4 billion and $4.2 billion in free cash flow
Full year 2019 pre-tax income of $6.2 billion and earnings per diluted share of $7.30, a nearly 30% increase over prior year
Record $1.6 billion profit sharing for Delta's 90,000 employees
Full year 2019 operating cash flow of $8.4 billion and $4.2 billion in free cash flow
ATLANTA, Jan. 14, 2020 /PRNewswire/ -- Delta Air Lines
(NYSE: DAL) today reported financial results for the December quarter and full
year 2019 and provided its outlook for the March quarter 2020. Highlights of
the December quarter and full year 2019 results, including both GAAP and
adjusted metrics, are on page four and are incorporated here.
December Quarter Financial Highlights
Adjusted earnings per share of $1.70, a 31% increase year
over year; above guidance of $1.20 to $1.50 on stronger revenue, lower fuel and
a nine-cent net gain related to the unwinding of the GOL relationship
Total revenue grew to $11.4 billion, up 7% over prior year
when prior year period is adjusted for sale of DAL Global Services (DGS)
Total unit revenue (TRASM), adjusted, increased 2.4%,
exceeding expectations on strong holiday travel demand
Non-fuel operating expense on a unit basis (CASM-Ex) up 4.4%
compared to the prior year period, in line with the company's expectations of
4% to 5%
Full Year Financial Highlights
Adjusted earnings per share of $7.31, a 30% increase year
over year
Total revenue increased to a record $47 billion, up 7.5%
when prior year period is adjusted for third-party refinery sales and the sale
of DGS
Total expense increased 3.9% with CASM-Ex up 2%, in line
with the company's guidance and long-term cost targets
Delta's 90,000 employees will share a record $1.6 billion
profit sharing payout on Feb. 14
Generated $8.4 billion of operating cash flow and $4.2
billion of free cash flow
Returned $3 billion to shareholders through dividends and
share repurchases
"2019 was a truly outstanding year on all fronts – the
best in Delta's history operationally, financially and for our customers.
Our people, and their commitment to bringing best-in-class travel experiences
to our 200 million customers, are the foundation for our success. I'm
pleased to recognize their outstanding performance with a record $1.6 billion
in profit sharing for 2019," said Ed Bastian, Delta's chief executive
officer. "As we enter 2020, demand for travel is healthy and our brand
preference is growing, positioning Delta to deliver another year of strong
results, including earnings per share of $6.75 to $7.75."
March Quarter 2020 Outlook
|
1Q20 Forecast
|
|
|
Total revenue growth (year-over-year)
|
Up 5% to 7%
|
|
Pre-tax margin (year-over-year)
|
~ Flat
|
|
Fuel price, including taxes and refinery impact
|
$2.00 to $2.20
|
|
TRASM, adjusted (year-over-year)
|
Flat to up 2%
|
|
CASM-Ex (year-over-year)
|
Up 2% to 3%
|
|
See Note A for information about reconciliation of
projected non-GAAP financial measures
|
|
Revenue Environment
For the full year, operating revenue grew to nearly $47
billion, up 7.5% when prior year period is adjusted for third-party refinery
sales and the sale of DGS. Premium product ticket revenue increased 9% along
with strong double-digit percentage increases from loyalty and third-party
maintenance revenue.
Delta's operating revenue of $11.4 billion for the December
quarter improved 7.2% or $768 million over the prior year (adjusted for the
sale of DGS). This was driven by a 9% increase in premium product ticket
revenue, an 18% increase in loyalty revenue and a 31% increase in third-party
maintenance revenue, which was partially offset by 13% lower cargo
revenue.
December quarter passenger revenue by geographic region:
Domestic revenue grew 7.7% in the quarter on 1.6% higher
passenger unit revenue (PRASM) and 6% higher capacity. Domestic premium product
revenue grew 11% and corporate revenue grew 6%, driven by strength in business
and leisure demand through the holiday period. Revenue and margin improved in
all domestic hubs with revenue up 10% in coastal hubs and 6% in core hubs.
Atlantic revenue grew 0.8% in the quarter on 2.4% higher
capacity and a 1.6% decline in PRASM, driven almost entirely by foreign
exchange rates.
Latin revenue grew 6.7% on a 6.3% increase in unit revenue
and 0.4% higher capacity. This revenue improvement was driven by continued
double-digit unit revenue growth in Brazil and Mexico.
Pacific revenue was down 0.5% versus prior year on a 4.4%
decline in unit revenue primarily due to continued softness in China. This was
a 3.2 point improvement versus the September quarter on improved trends in
Japan and strong Delta Premium Select performance.
"Our industry-leading operational performance and the
unmatched service our people provide are the reasons why more customers than
ever are choosing to fly Delta. Investments in reliability, product and
service, airports and technology are reshaping customer perception and driving
record satisfaction scores and increasing brand preference." said Glen
Hauenstein, Delta's president. "We delivered $47 billion in revenue in
2019, a more than $3 billion increase when adjusted over prior year, while
sustaining a revenue premium to the industry of more than 110%. Demand trends
remain healthy and we expect momentum to continue in 2020, with revenue growth
of 5% to 7% in the March quarter."
Cost Performance
For 2019, total expense increased 3.9%, driven by higher
revenue- and capacity-related expenses, profit sharing, and pension expense,
which were partially offset by $501 million lower fuel cost. CASM-Ex for
2019 increased 2% versus prior year, reflecting Delta's continued investment in
our people, product and services.
Total expense for the December quarter increased 6.9% versus
the prior year on higher revenue- and capacity-related expenses and profit
sharing, which were partially offset by $315 million lower fuel cost.
CASM-Ex was up 4.4% for the December quarter compared to the prior year driven
by investment in our people, product and services, and a mark-up of
benefit-related balance sheet obligations.
Fuel expense decreased 14% relative to December quarter
2018. Delta's fuel price for the December quarter was $2.01 per gallon,
including a $24 million benefit from the refinery.
Non-operating expense for the quarter was $256 million
higher versus the prior year, driven primarily by pension expense and lower
mark-to-market adjustments on investments, including our investment in GOL, which
was sold during the December quarter 2019.
"Non-fuel unit costs for 2019 increased 2% versus prior
year, in line with our long-term cost target and reflecting Delta's continued
investment in our people, product and services," said Paul Jacobson,
Delta's chief financial officer. "These investments supporting our
long-term growth will continue into 2020, and we expect our non-fuel unit costs
will increase 2% to 3% for the March quarter and full year."
Cash Flow and Shareholder Returns
For the full year, Delta generated $8.4 billion of operating
cash flow and $4.2 billion of free cash flow. Full year cash flow is net
of $1 billion of voluntary pension contributions, including $500 million made
in the December quarter.
The company invested $4.5 billion into the business in 2019
including $954 million in the December quarter. This supported the
delivery of 88 new aircraft during the year. The company's ongoing fleet
transformation is driving higher customer satisfaction, premium seat growth and
improved fuel efficiency.
For the December quarter, Delta generated $969 million of
operating cash flow and $141 million of free cash flow. Delta returned
$484 million to shareholders, comprised of $225 million of share repurchases
and $259 million in dividends during the quarter. For the full year,
Delta returned $3 billion to shareholders, including $2 billion of
share repurchases and $980 million in dividends.
"Strong cash generation continues to set Delta apart
and enables consistent reinvestment in the business while maintaining cash
returns to owners at 70% of free cash flow," added Jacobson. "We
expect to generate free cash flow of $4 billion again this year, putting us on
track to deliver a three-year cumulative free cash flow of over $10 billion by
the end of 2020."
Strategic Highlights
In 2019, Delta achieved a number of milestones across its
five key strategic pillars.
Culture and People
Delta people earned $1.6 billion in profit sharing and $87
million in Shared Rewards, recognizing the outstanding performance of Delta's
90,000 employees through 2019.
Contributed over $60 million and 800,000 volunteer hours in
2019 as part of Delta's commitment to the communities we serve. Introduced The
Great Delta Give-Back, reinforcing commitment to the communities Delta serves
around the world by providing employees an annual paid day of service.
Operational Reliability
Delivered 281 days of zero mainline cancellations and 165
days of zero system cancellations through 2019, an improvement of 12% and 15%,
respectively, versus 2018.
Reached record completion factor in 2019 on a system and
mainline basis, with mainline completion factor of 99.83%.
Carried an all-time record 204 million customers in 2019, 6%
more than prior year with a record load factor of 86.3%.
Achieved 2% fuel efficiency improvement through fleet
renewal and other initiatives. Delta also entered into an agreement with Gevo
for 10 million gallons annually of sustainable aviation fuel.
Network and Partnerships
Strengthened global partnerships in all international
entities with: the announcement of a strategic alliance with LATAM Airlines
Group including completion of a tender offer to acquire a 20% equity stake; the
equity investment in Hanjin-KAL the largest shareholder of Korean Air; approval
by the U.S. DOT for anti-trust immunity for the expanded joint venture between
Delta, Air France, KLM and Virgin Atlantic.
Announced a combination between Delta Private Jets and
Wheels Up, a private aviation company, to create one of the world's largest owned
and managed fleets of private aircraft, with over 190 aircraft and 8,000
customers in the combined company.
Extended Delta's global reach with new service between
Amsterdam-Tampa, Boston-Edinburgh, Boston-Lisbon, Minneapolis-Mexico City,
Minneapolis-Seoul, New York JFK-Bogota, New York JFK-Mumbai and Seattle-Osaka.
Customer Experience and Loyalty
Announced an 11-year contract renewal between Delta and
American Express with contribution increasing from $4.1 billion in 2019 to
nearly $7 billion by 2023, including a complete relaunch where cardholders will
enjoy more ways to earn miles.
Added a record number of new SkyMiles Members in one year
with the number of new Members increasing at more than triple the rate of just
three years ago and added record 1.1 million new Delta American Express
cardholders, marking the third consecutive year of more than one million new
cardholders.
Debuted an industry-leading international Main Cabin
experience designed by flight attendants to elevate and differentiate the
customer experience on Delta featuring thoughtful touches like welcome
cocktails, hot towel service, bistro-style dining and more.
Took delivery of 88 new aircraft including the A220-100 and
A330-900neo, with in-flight entertainment, spacious overhead bins and memory
foam cushions throughout the aircraft for additional comfort.
Released the updated FlyDelta app, providing automatic
international check-in, integrated security wait times and the ability to
pre-select meals in Delta One and domestic First Class.
Awarded the No.1 airline in Business Travel News Airline
Survey for a record ninth consecutive year, sweeping all 11 categories.
Investment Grade Balance Sheet
Reported a 1.7x adjusted debt to EBITDAR ratio, toward the
lower end of our long-term leverage ratio target of 1.5x to 2.5x adjusted debt
to EBITDAR, which is expected to allow Delta to maintain investment grade
ratings through a business cycle.
Completed a $1.5 billion unsecured debt offering through a
mix of five- and 10-year notes at a blended rate of 3.24%, the lowest unsecured
rates achieved by Delta for these lengths of maturity in its history. The
proceeds from this offering were used to fund the acquisition of the 20% equity
stake in LATAM Airlines Group.
December Quarter and Full Year 2019 Results
Adjusted results primarily exclude the impact of
mark-to-market ("MTM") adjustments.
|
GAAP
|
Adjusted
|
GAAP
|
Adjusted
|
|||||||||||||
|
($ in millions except per share and unit costs)
|
4Q19
|
4Q18
|
4Q19
|
4Q18
|
FY19
|
FY18
|
FY19
|
FY18
|
||||||||
|
Net income
|
1,099
|
1,019
|
1,096
|
885
|
4,767
|
3,935
|
4,773
|
3,893
|
||||||||
|
Diluted earnings per share
|
1.71
|
1.49
|
1.70
|
1.30
|
7.30
|
5.67
|
7.31
|
5.61
|
||||||||
|
Operating revenue
|
11,439
|
10,742
|
11,437
|
10,668
|
47,007
|
44,438
|
46,910
|
43,645
|
||||||||
|
Total revenue per available seat mile (TRASM)
|
17.47
|
17.18
|
17.47
|
17.06
|
17.07
|
16.87
|
17.03
|
16.57
|
||||||||
|
Consolidated unit cost (CASM/CASM-Ex)
|
15.34
|
15.44
|
11.21
|
10.74
|
14.67
|
14.87
|
10.52
|
10.31
|
||||||||
About Delta
Delta Air Lines (NYSE: DAL) is the U.S. global airline leader in products, services, innovation, reliability and customer experience. Powered by its 90,000 people around the world, Delta continues to invest billions in its people, delivering a world-class travel experience and generating industry-leading shareholder returns. With its constant drive to invest, innovate and expand, Delta today is the No. 1 U.S. global airline by total revenue.
Delta Air Lines (NYSE: DAL) is the U.S. global airline leader in products, services, innovation, reliability and customer experience. Powered by its 90,000 people around the world, Delta continues to invest billions in its people, delivering a world-class travel experience and generating industry-leading shareholder returns. With its constant drive to invest, innovate and expand, Delta today is the No. 1 U.S. global airline by total revenue.
Forward Looking Statements
Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the availability of aircraft fuel; the impact of fuel hedging activity including rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with our fuel hedge contracts; the performance of our significant investments in airlines in other parts of the world; the possible effects of accidents involving our aircraft; breaches or security lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence on technology in our operations; the restrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third parties; failure or inability of insurance to cover a significant liability at Monroe's Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key employees; damage to our reputation and brand if we are exposed to significant adverse publicity through social media; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disruptions in service at major airports at which we operate; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdom related to the exit of the United Kingdom from the European Union; and the effects of the rapid spread of contagious illnesses.
Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the availability of aircraft fuel; the impact of fuel hedging activity including rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with our fuel hedge contracts; the performance of our significant investments in airlines in other parts of the world; the possible effects of accidents involving our aircraft; breaches or security lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence on technology in our operations; the restrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third parties; failure or inability of insurance to cover a significant liability at Monroe's Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key employees; damage to our reputation and brand if we are exposed to significant adverse publicity through social media; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disruptions in service at major airports at which we operate; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdom related to the exit of the United Kingdom from the European Union; and the effects of the rapid spread of contagious illnesses.
Additional information concerning risks and uncertainties
that could cause differences between actual results and forward-looking
statements is contained in our Securities and Exchange Commission filings,
including our Annual Report on Form 10-K for the fiscal year ended December 31,
2018. Caution should be taken not to place undue reliance on our
forward-looking statements, which represent our views only as of January 14,
2020 and which we have no current intention to update.
|
DELTA AIR LINES, INC.
|
|||||||||||||||||||||||
|
Consolidated Statements of Operations
|
|||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||||||||||
|
(in millions, except per share data)
|
2019
|
2018
|
$ Change
|
% Change
|
2019
|
2018
|
$ Change
|
% Change
|
|||||||||||||||
|
Operating Revenue:
|
|||||||||||||||||||||||
|
Passenger
|
$
|
10,245
|
$
|
9,647
|
$
|
598
|
6
|
%
|
$
|
42,277
|
$
|
39,755
|
$
|
2,522
|
6
|
%
|
|||||||
|
Cargo
|
187
|
214
|
(27)
|
(13)
|
%
|
753
|
865
|
(112)
|
(13)
|
%
|
|||||||||||||
|
Other
|
1,007
|
881
|
126
|
14
|
%
|
3,977
|
3,818
|
159
|
4
|
%
|
|||||||||||||
|
Total operating revenue
|
11,439
|
10,742
|
697
|
6
|
%
|
47,007
|
44,438
|
2,569
|
6
|
%
|
|||||||||||||
|
Operating Expense:
|
|||||||||||||||||||||||
|
Salaries and related costs
|
2,949
|
2,739
|
210
|
8
|
%
|
11,225
|
10,743
|
482
|
4
|
%
|
|||||||||||||
|
Aircraft fuel and related taxes
|
2,012
|
2,327
|
(315)
|
(14)
|
%
|
8,519
|
9,020
|
(501)
|
(6)
|
%
|
|||||||||||||
|
Regional carriers expense, excluding fuel
|
885
|
851
|
34
|
4
|
%
|
3,584
|
3,438
|
146
|
4
|
%
|
|||||||||||||
|
Contracted services
|
668
|
529
|
139
|
26
|
%
|
2,641
|
2,175
|
466
|
21
|
%
|
|||||||||||||
|
Depreciation and amortization
|
622
|
570
|
52
|
9
|
%
|
2,581
|
2,329
|
252
|
11
|
%
|
|||||||||||||
|
Passenger commissions and other selling
expenses |
488
|
468
|
20
|
4
|
%
|
1,993
|
1,941
|
52
|
3
|
%
|
|||||||||||||
|
Landing fees and other rents
|
440
|
408
|
32
|
8
|
%
|
1,762
|
1,662
|
100
|
6
|
%
|
|||||||||||||
|
Aircraft maintenance materials and outside repairs
|
417
|
341
|
76
|
22
|
%
|
1,751
|
1,575
|
176
|
11
|
%
|
|||||||||||||
|
Profit sharing
|
387
|
311
|
76
|
24
|
%
|
1,643
|
1,301
|
342
|
26
|
%
|
|||||||||||||
|
Passenger service
|
313
|
286
|
27
|
9
|
%
|
1,251
|
1,178
|
73
|
6
|
%
|
|||||||||||||
|
Ancillary businesses and refinery
|
299
|
299
|
—
|
—
|
%
|
1,245
|
1,695
|
(450)
|
(27)
|
%
|
|||||||||||||
|
Aircraft rent
|
105
|
103
|
2
|
2
|
%
|
423
|
394
|
29
|
7
|
%
|
|||||||||||||
|
Other
|
455
|
420
|
35
|
8
|
%
|
1,771
|
1,723
|
48
|
3
|
%
|
|||||||||||||
|
Total operating expense
|
10,040
|
9,652
|
388
|
4
|
%
|
40,389
|
39,174
|
1,215
|
3
|
%
|
|||||||||||||
|
Operating Income
|
1,399
|
1,090
|
309
|
28
|
%
|
6,618
|
5,264
|
1,354
|
26
|
%
|
|||||||||||||
|
Non-Operating Expense:
|
|||||||||||||||||||||||
|
Interest expense, net
|
(72)
|
(67)
|
(5)
|
7
|
%
|
(301)
|
(311)
|
10
|
(3)
|
%
|
|||||||||||||
|
Gain/(loss) on investments, net
|
136
|
208
|
(72)
|
(35)
|
%
|
119
|
38
|
81
|
NM
|
||||||||||||||
|
Miscellaneous, net
|
(66)
|
113
|
(179)
|
NM
|
(238)
|
160
|
(398)
|
NM
|
|||||||||||||||
|
Total non-operating (expense)/income, net
|
(2)
|
254
|
(256)
|
NM
|
(420)
|
(113)
|
(307)
|
NM
|
|||||||||||||||
|
Income Before Income Taxes
|
1,397
|
1,344
|
53
|
4
|
%
|
6,198
|
5,151
|
1,047
|
20
|
%
|
|||||||||||||
|
Income Tax Provision
|
(298)
|
(325)
|
27
|
(8)
|
%
|
(1,431)
|
(1,216)
|
(215)
|
18
|
%
|
|||||||||||||
|
Net Income
|
$
|
1,099
|
$
|
1,019
|
$
|
80
|
8
|
%
|
$
|
4,767
|
$
|
3,935
|
$
|
832
|
21
|
%
|
|||||||
|
Basic Earnings Per Share
|
$
|
1.71
|
$
|
1.50
|
$
|
7.32
|
$
|
5.69
|
|||||||||||||||
|
Diluted Earnings Per Share
|
$
|
1.71
|
$
|
1.49
|
$
|
7.30
|
$
|
5.67
|
|||||||||||||||
|
Basic Weighted Average Shares Outstanding
|
642
|
680
|
651
|
691
|
|||||||||||||||||||
|
Diluted Weighted Average Shares Outstanding
|
644
|
683
|
653
|
694
|
|||||||||||||||||||
|
DELTA AIR LINES, INC.
|
|||||||||||||||||||||||
|
Passenger Revenue
|
|||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||||||||||
|
(in millions)
|
2019
|
2018
|
$ Change
|
% Change
|
2019
|
2018
|
$ Change
|
% Change
|
|||||||||||||||
|
Ticket- Main cabin
|
$
|
5,238
|
$
|
5,056
|
$
|
182
|
4
|
%
|
$
|
21,919
|
$
|
21,196
|
$
|
723
|
3
|
%
|
|||||||
|
Ticket- Business cabin and premium products
|
3,684
|
3,380
|
304
|
9
|
%
|
14,989
|
13,754
|
1,235
|
9
|
%
|
|||||||||||||
|
Loyalty travel awards
|
726
|
675
|
51
|
8
|
%
|
2,900
|
2,651
|
249
|
9
|
%
|
|||||||||||||
|
Travel-related services
|
597
|
536
|
61
|
11
|
%
|
2,469
|
2,154
|
315
|
15
|
%
|
|||||||||||||
|
Total passenger revenue
|
$
|
10,245
|
$
|
9,647
|
$
|
598
|
6
|
%
|
$
|
42,277
|
$
|
39,755
|
$
|
2,522
|
6
|
%
|
|||||||
|
DELTA AIR LINES, INC.
|
|||||||||||||||||||||||
|
Other Revenue
|
|||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||||||||||
|
(in millions)
|
2019
|
2018
|
$ Change
|
% Change
|
2019
|
2018
|
$ Change
|
% Change
|
|||||||||||||||
|
Loyalty program
|
$
|
519
|
$
|
384
|
$
|
135
|
35
|
%
|
$
|
1,962
|
$
|
1,459
|
$
|
503
|
34
|
%
|
|||||||
|
Ancillary businesses and refinery
|
307
|
327
|
(20)
|
(6)
|
%
|
1,297
|
1,801
|
(504)
|
(28)
|
%
|
|||||||||||||
|
Miscellaneous
|
181
|
170
|
11
|
6
|
%
|
718
|
558
|
160
|
29
|
%
|
|||||||||||||
|
Total other revenue
|
$
|
1,007
|
$
|
881
|
$
|
126
|
14
|
%
|
$
|
3,977
|
$
|
3,818
|
$
|
159
|
4
|
%
|
|||||||
|
DELTA AIR LINES, INC.
|
|||||||
|
Total Revenue
|
|||||||
|
(Unaudited)
|
|||||||
|
Increase (Decrease)
|
|||||||
|
4Q19 versus 4Q18
|
|||||||
|
Change
|
Unit
|
||||||
|
Revenue
|
4Q19 ($M)
|
YoY
|
Revenue
|
Yield
|
Capacity
|
||
|
Domestic
|
$
|
7,612
|
7.7%
|
1.6%
|
1.4%
|
6.0%
|
|
|
Atlantic
|
1,338
|
0.8%
|
(1.6)%
|
(3.5)%
|
2.4%
|
||
|
Latin America
|
703
|
6.7%
|
6.3%
|
4.4%
|
0.4%
|
||
|
Pacific
|
591
|
(0.5)%
|
(4.4)%
|
(2.7)%
|
4.1%
|
||
|
Total Passenger
|
$
|
10,245
|
6.2%
|
1.4%
|
0.9%
|
4.7%
|
|
|
Cargo Revenue
|
187
|
(12.7)%
|
|||||
|
Other Revenue
|
1,007
|
14.3%
|
|||||
|
Total Revenue
|
$
|
11,439
|
6.5%
|
1.7%
|
|||
|
Third Party Refinery
Sales
|
(2)
|
||||||
|
Total Revenue, adjusted
|
$
|
11,437
|
7.2%
|
2.4%
|
|||
|
DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
|
|||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||||||
|
2019
|
2018
|
Change
|
2019
|
2018
|
Change
|
||||||||||||||
|
Revenue passenger miles (millions)
|
56,028
|
53,241
|
5.2
|
%
|
237,680
|
225,243
|
5.5
|
%
|
|||||||||||
|
Available seat miles (millions)
|
65,468
|
62,523
|
4.7
|
%
|
275,379
|
263,365
|
4.6
|
%
|
|||||||||||
|
Passenger mile yield (cents)
|
18.29
|
18.12
|
0.9
|
%
|
17.79
|
17.65
|
0.8
|
%
|
|||||||||||
|
Passenger revenue per available seat mile (cents)
|
15.65
|
15.43
|
1.4
|
%
|
15.35
|
15.09
|
1.7
|
%
|
|||||||||||
|
Total revenue per available seat mile (cents)
|
17.47
|
17.18
|
1.7
|
%
|
17.07
|
16.87
|
1.2
|
%
|
|||||||||||
|
TRASM, adjusted - see Note A (cents)
|
17.47
|
17.06
|
2.4
|
%
|
17.03
|
16.57
|
2.8
|
%
|
|||||||||||
|
Operating cost per available seat mile (cents)
|
15.34
|
15.44
|
(0.6)
|
%
|
14.67
|
14.87
|
(1.3)
|
%
|
|||||||||||
|
CASM-Ex - see Note A (cents)
|
11.21
|
10.74
|
4.4
|
%
|
10.52
|
10.31
|
2.0
|
%
|
|||||||||||
|
Passenger load factor
|
85.6
|
%
|
85.2
|
%
|
0.4
|
pts
|
86.3
|
%
|
85.5
|
%
|
0.8
|
pts
|
|||||||
|
Fuel gallons consumed (millions)
|
999
|
975
|
2.4
|
%
|
4,214
|
4,113
|
2.5
|
%
|
|||||||||||
|
Average price per fuel gallon
|
$
|
2.01
|
$
|
2.39
|
(15.9)
|
%
|
$
|
2.02
|
$
|
2.20
|
(8.2)
|
%
|
|||||||
|
Average price per fuel gallon, adjusted - see Note A
|
$
|
1.99
|
$
|
2.42
|
(17.7)
|
%
|
$
|
2.02
|
$
|
2.21
|
(8.5)
|
%
|
|||||||
|
Number of aircraft in fleet, end of period
|
1,062
|
1,025
|
37
|
||||||||||||||||
|
DELTA AIR LINES, INC.
|
|||||||
|
Consolidated Statements of Cash Flows
|
|||||||
|
(Unaudited)
|
|||||||
|
Three Months Ended
|
|||||||
|
December 31,
|
|||||||
|
(in millions)
|
2019
|
2018
|
|||||
|
Cash Flows From Operating Activities:
|
|||||||
|
Net income
|
$
|
1,099
|
$
|
1,019
|
|||
|
Depreciation and amortization
|
622
|
570
|
|||||
|
Deferred income taxes
|
324
|
504
|
|||||
|
Pension, postretirement and postemployment payments
greater than expense
|
(447)
|
(113)
|
|||||
|
Changes in air traffic liability
|
(647)
|
(873)
|
|||||
|
Changes in profit sharing
|
387
|
311
|
|||||
|
Other, net
|
(369)
|
(173)
|
|||||
|
Net cash provided by operating
activities
|
969
|
1,245
|
|||||
|
Cash Flows From Investing Activities:
|
|||||||
|
Property and equipment additions:
|
|||||||
|
Flight equipment, including
advance payments
|
(570)
|
(871)
|
|||||
|
Ground property and equipment,
including technology
|
(502)
|
(492)
|
|||||
|
Net redemptions of short-term investments
|
—
|
276
|
|||||
|
Other, net
|
293
|
67
|
|||||
|
Net cash used in investing
activities
|
(779)
|
(1,020)
|
|||||
|
Cash Flows From Financing Activities:
|
|||||||
|
Payments on long-term debt and finance lease obligations
|
(516)
|
(312)
|
|||||
|
Repurchases of common stock
|
(225)
|
(325)
|
|||||
|
Cash dividends
|
(259)
|
(238)
|
|||||
|
Proceeds from short-term obligations
|
—
|
113
|
|||||
|
Proceeds from long-term obligations
|
1,557
|
621
|
|||||
|
Other, net
|
285
|
16
|
|||||
|
Net cash provided by (used in)
financing activities
|
842
|
(125)
|
|||||
|
Net Increase in Cash, Cash Equivalents and Restricted Cash
Equivalents
|
1,032
|
100
|
|||||
|
Cash, cash equivalents and restricted cash equivalents at
beginning of period
|
2,698
|
2,648
|
|||||
|
Cash, cash equivalents and restricted cash equivalents at
end of period
|
$
|
3,730
|
$
|
2,748
|
|||
|
The following table provides a reconciliation of cash,
cash equivalents and restricted cash reported within the Consolidated Balance
Sheets to the total of the same such amounts shown above:
|
|||||||
|
Current assets:
|
|||||||
|
Cash and cash equivalents
|
$
|
2,882
|
$
|
1,565
|
|||
|
Restricted cash included in
prepaid expenses and other
|
212
|
47
|
|||||
|
Other assets:
|
|||||||
|
Cash restricted for airport
construction
|
636
|
1,136
|
|||||
|
Total cash, cash equivalents and restricted cash
equivalents
|
$
|
3,730
|
$
|
2,748
|
|||
|
DELTA AIR LINES, INC.
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
(Unaudited)
|
||||||||
|
December 31,
|
December 31,
|
|||||||
|
(in millions)
|
2019
|
2018
|
||||||
|
ASSETS
|
||||||||
|
Current Assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
2,882
|
$
|
1,565
|
||||
|
Accounts receivable, net
|
2,854
|
2,314
|
||||||
|
Fuel inventory
|
730
|
592
|
||||||
|
Expendable parts and supplies inventories, net
|
521
|
463
|
||||||
|
Prepaid expenses and other
|
1,262
|
1,406
|
||||||
|
Total current assets
|
8,249
|
6,340
|
||||||
|
Property and Equipment, Net:
|
||||||||
|
Property and equipment, net
|
31,311
|
28,335
|
||||||
|
Other Assets:
|
||||||||
|
Operating lease right-of-use assets
|
5,626
|
5,994
|
||||||
|
Goodwill
|
9,781
|
9,781
|
||||||
|
Identifiable intangibles, net
|
5,167
|
4,830
|
||||||
|
Cash restricted for airport construction
|
636
|
1,136
|
||||||
|
Other noncurrent assets
|
3,759
|
3,850
|
||||||
|
Total other assets
|
24,969
|
25,591
|
||||||
|
Total assets
|
$
|
64,529
|
$
|
60,266
|
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current Liabilities:
|
||||||||
|
Current maturities of long-term debt and finance leases
|
$
|
2,287
|
$
|
1,518
|
||||
|
Current maturities of operating leases
|
801
|
955
|
||||||
|
Air traffic liability
|
5,116
|
4,661
|
||||||
|
Accounts payable
|
3,266
|
2,976
|
||||||
|
Accrued salaries and related benefits
|
3,701
|
3,287
|
||||||
|
Loyalty program deferred revenue
|
3,219
|
2,989
|
||||||
|
Fuel card obligation
|
736
|
1,075
|
||||||
|
Other accrued liabilities
|
1,078
|
1,117
|
||||||
|
Total current liabilities
|
20,204
|
18,578
|
||||||
|
Noncurrent Liabilities:
|
||||||||
|
Long-term debt and finance leases
|
8,873
|
8,253
|
||||||
|
Pension, postretirement and related benefits
|
8,344
|
9,163
|
||||||
|
Loyalty program deferred revenue
|
3,509
|
3,652
|
||||||
|
Noncurrent operating leases
|
5,294
|
5,801
|
||||||
|
Deferred income taxes, net
|
1,478
|
163
|
||||||
|
Other noncurrent liabilities
|
1,387
|
969
|
||||||
|
Total noncurrent liabilities
|
28,885
|
28,001
|
||||||
|
Commitments and Contingencies
|
||||||||
|
Stockholders' Equity:
|
15,440
|
13,687
|
||||||
|
Total liabilities and stockholders' equity
|
$
|
64,529
|
$
|
60,266
|
||||
Note A: The following tables show reconciliations of
non-GAAP financial measures. The reasons Delta uses these measures are
described below. Reconciliations may not calculate due to rounding.
Delta sometimes uses information ("non-GAAP financial
measures") that is derived from the Consolidated Financial Statements, but
that is not presented in accordance with accounting principles generally
accepted in the U.S. ("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. The tables below show
reconciliations of non-GAAP financial measures used in this release to the most
directly comparable GAAP financial measures.
Forward Looking Projections. The Company is not able to
reconcile forward looking non-GAAP financial measures because the adjusting
items such as those used in the reconciliations below will not be known until
the end of the period and could be significant.
Free Cash Flow. 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. Cash flows related to our
investment in Hanjin-KAL, the largest shareholder of Korean Air, are included
in our GAAP investing activities. We adjust free cash flow for this activity
because it provides a more meaningful comparison to the airline industry.
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, which were primarily funded by
cash restricted for airport construction, to provide investors a better
understanding of the company's free cash flow and capital expenditures that are
core to our operational performance in the periods shown.
|
Three Months Ended
|
||||||
|
(in millions)
|
December 31, 2019
|
|||||
|
Net cash provided by operating activities
|
$
|
969
|
||||
|
Net cash used in investing activities
|
(779)
|
|||||
|
Adjustments:
|
||||||
|
Net cash flows related to certain
airport construction projects and other
|
(49)
|
|||||
|
Total free cash flow
|
$
|
141
|
||||
|
Year Ended
|
||||||
|
(in millions)
|
December 31, 2019
|
|||||
|
Net cash provided by operating activities
|
$
|
8,425
|
||||
|
Net cash used in investing activities
|
(4,563)
|
|||||
|
Adjustments:
|
||||||
|
Net redemptions of short-term
investments
|
(206)
|
|||||
|
Strategic investments
|
170
|
|||||
|
Net cash flows related to certain
airport construction projects and other
|
338
|
|||||
|
Total free cash flow
|
$
|
4,164
|
||||
Net Income, adjusted. We adjust net income for the following
items to determine net income, adjusted for the reasons described 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. Settlements represent cash received or paid
on hedge contracts settled during the applicable period.
Equity investment MTM adjustments. We record our
proportionate share of earnings/loss from our equity investments in Virgin Atlantic
and Aeroméxico in non-operating expense. We adjust for our equity method
investees' hedge portfolio MTM adjustments to allow investors to understand and
analyze our core operational performance in the periods shown.
MTM adjustments on investments. Unrealized gains/losses
on our equity investments in GOL, China Eastern, Air France-KLM and Korean Air,
which are accounted for at fair value in non-operating expense, are driven by
changes in stock prices and foreign currency. During the December 2019 quarter,
we sold our GOL investment, which generated a gain in adjusted results that had
previously been included in GAAP results. Adjusting for these gains/losses
allows investors to better understand and analyze our core operational
performance in the periods shown.
DGS sale adjustment. Because we sold DAL Global
Services, LLC ("DGS") in December 2018, we have excluded the impact
of DGS from 2018 results for comparability.
|
Three Months Ended
|
Three Months Ended
|
||||||
|
December 31, 2019
|
December 31, 2019
|
||||||
|
Net
|
Net Income
|
||||||
|
(in millions, except per share data)
|
Income
|
Per Diluted Share
|
|||||
|
GAAP
|
$
|
1,099
|
$
|
1.71
|
|||
|
Adjusted for:
|
|||||||
|
MTM adjustments and settlements
on hedges
|
17
|
||||||
|
Equity investment MTM adjustments
|
(1)
|
||||||
|
MTM adjustments on investments
|
(19)
|
||||||
|
Total adjustments
|
(3)
|
(0.01)
|
|||||
|
Non-GAAP
|
$
|
1,096
|
$
|
1.70
|
|||
|
Change year-over-year
|
31
|
%
|
|||||
|
Three Months Ended
|
Three Months Ended
|
||||||
|
December 31, 2018
|
December 31, 2018
|
||||||
|
Net
|
Net Income
|
||||||
|
(in millions, except per share data)
|
Income
|
Per Diluted Share
|
|||||
|
GAAP
|
$
|
1,019
|
$
|
1.49
|
|||
|
Adjusted for:
|
|||||||
|
MTM adjustments and settlements
on hedges
|
(26)
|
||||||
|
Equity investment MTM adjustments
|
43
|
||||||
|
MTM adjustments on investments
|
(146)
|
||||||
|
DGS sale adjustment
|
(5)
|
||||||
|
Total adjustments
|
(134)
|
(0.19)
|
|||||
|
Non-GAAP
|
$
|
885
|
$
|
1.30
|
|||
|
Year Ended
|
Year Ended
|
||||||
|
December 31, 2019
|
December 31, 2019
|
||||||
|
Net
|
Net Income
|
||||||
|
(in millions, except per share data)
|
Income
|
Per Diluted Share
|
|||||
|
GAAP
|
$
|
4,767
|
$
|
7.30
|
|||
|
Adjusted for:
|
|||||||
|
MTM adjustments and settlements
on hedges
|
11
|
||||||
|
Equity investment MTM adjustments
|
(11)
|
||||||
|
MTM adjustments on investments
|
6
|
||||||
|
Total adjustments
|
6
|
0.01
|
|||||
|
Non-GAAP
|
$
|
4,773
|
$
|
7.31
|
|||
|
Change year-over-year
|
30
|
%
|
|||||
|
Year Ended
|
Year Ended
|
||||||
|
December 31, 2018
|
December 31, 2018
|
||||||
|
Net
|
Net Income
|
||||||
|
(in millions, except per share data)
|
Income
|
Per Diluted Share
|
|||||
|
GAAP
|
$
|
3,935
|
$
|
5.67
|
|||
|
Adjusted for:
|
|||||||
|
MTM adjustments and settlements
on hedges
|
(26)
|
||||||
|
Equity investment MTM adjustments
|
14
|
||||||
|
MTM adjustments on investments
|
(7)
|
||||||
|
DGS sale adjustment
|
(23)
|
||||||
|
Total adjustments
|
(42)
|
(0.06)
|
|||||
|
Non-GAAP
|
$
|
3,893
|
$
|
5.61
|
|||
Operating Revenue, adjusted and Total Revenue Per Available
Seat Mile ("TRASM"), adjusted. We adjust operating revenue and
TRASM for refinery sales to third parties because refinery sales to third
parties are not related to our airline segment. Operating revenue, adjusted and
TRASM, adjusted therefore provide a more meaningful comparison of revenue from
our airline operations to the rest of the airline industry. We adjust for the
DGS sale for the same reason described above under the heading pre-tax income
and net income, adjusted.
|
Three Months Ended
|
||||||||||||
|
(in millions)
|
December 31, 2019
|
December 31, 2018
|
Change
|
|||||||||
|
Operating revenue
|
$
|
11,439
|
$
|
10,742
|
||||||||
|
Adjusted for:
|
||||||||||||
|
Third-party refinery sales
|
(2)
|
(11)
|
||||||||||
|
DGS sale adjustment
|
—
|
(63)
|
||||||||||
|
Operating revenue, adjusted
|
$
|
11,437
|
$
|
10,668
|
7.2
|
%
|
||||||
|
Year-over-year change
|
$
|
768
|
||||||||||
|
Year Ended
|
||||||||||||
|
(in millions)
|
December 31, 2019
|
December 31, 2018
|
Change
|
|||||||||
|
Operating revenue
|
$
|
47,007
|
$
|
44,438
|
||||||||
|
Adjusted for:
|
||||||||||||
|
Third-party refinery sales
|
(97)
|
(548)
|
||||||||||
|
DGS sale adjustment
|
—
|
(244)
|
||||||||||
|
Operating revenue, adjusted
|
$
|
46,910
|
$
|
43,645
|
7.5
|
%
|
||||||
|
Year-over-year change
|
$
|
3,265
|
||||||||||
|
Three Months Ended
|
||||||||||||
|
December 31, 2019
|
December 31, 2018
|
Change
|
||||||||||
|
TRASM (cents)
|
17.47
|
17.18
|
||||||||||
|
Adjusted for:
|
||||||||||||
|
Third-party refinery sales
|
—
|
(0.02)
|
||||||||||
|
DGS sale adjustment
|
—
|
(0.10)
|
||||||||||
|
TRASM, adjusted
|
17.47
|
17.06
|
2.4
|
%
|
||||||||
|
Year Ended
|
||||||||||||
|
December 31, 2019
|
December 31, 2018
|
Change
|
||||||||||
|
TRASM (cents)
|
17.07
|
16.87
|
||||||||||
|
Adjusted for:
|
||||||||||||
|
Third-party refinery sales
|
(0.04)
|
(0.21)
|
||||||||||
|
DGS sale adjustment
|
—
|
(0.09)
|
||||||||||
|
TRASM, adjusted
|
17.03
|
16.57
|
2.8
|
%
|
||||||||
Non-Fuel Unit Cost or Cost per Available Seat Mile,
("CASM-Ex"). We adjust CASM for the following items to determine
CASM-Ex for the reasons described below:
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 understand
and analyze our non-fuel costs and year-over-year financial performance.
Ancillary businesses and refinery. We adjust for
expenses related to aircraft maintenance we provide to third parties, our
vacation wholesale operations, our private jet operations as well as refinery
cost of sales to third parties. 2018 results also include staffing services performed
by DGS. Because these businesses are not related to the generation of a seat
mile, we adjust for the costs related to these areas to provide a more
meaningful comparison of the costs of our airline operations to the rest of the
airline industry.
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.
|
Three Months Ended
|
|||||||||||
|
December 31, 2019
|
December 31, 2018
|
Change
|
|||||||||
|
CASM (cents)
|
15.34
|
15.44
|
|||||||||
|
Adjusted for:
|
|||||||||||
|
Aircraft fuel and related taxes
|
(3.08)
|
(3.72)
|
|||||||||
|
Ancillary businesses and refinery
|
(0.46)
|
(0.48)
|
|||||||||
|
Profit sharing
|
(0.59)
|
(0.50)
|
|||||||||
|
CASM-Ex
|
11.21
|
10.74
|
4.4
|
%
|
|||||||
|
Year Ended
|
|||||||||||
|
December 31, 2019
|
December 31, 2018
|
Change
|
|||||||||
|
CASM (cents)
|
14.67
|
14.87
|
|||||||||
|
Adjusted for:
|
|||||||||||
|
Aircraft fuel and related taxes
|
(3.10)
|
(3.43)
|
|||||||||
|
Ancillary businesses and refinery
|
(0.45)
|
(0.64)
|
|||||||||
|
Profit sharing
|
(0.60)
|
(0.49)
|
|||||||||
|
CASM-Ex
|
10.52
|
10.31
|
2.0
|
%
|
|||||||
Capital Expenditures, net. We present net capital
expenditures because management believes investors should be informed that a
portion of these capital expenditures are reimbursed by a third party.
|
Three Months Ended
|
|||||
|
(in millions)
|
December 31, 2019
|
||||
|
Flight equipment, including advance payments
|
$
|
570
|
|||
|
Ground property and equipment, including technology
|
502
|
||||
|
Net cash flows related to certain airport construction
projects
|
(118)
|
||||
|
Capital expenditures, net
|
$
|
954
|
|||
|
Year Ended
|
|||||
|
(in millions)
|
December 31, 2019
|
||||
|
Flight equipment, including advance payments
|
$
|
3,344
|
|||
|
Ground property and equipment, including technology
|
1,592
|
||||
|
Net cash flows related to certain airport construction
projects
|
(448)
|
||||
|
Capital expenditures, net
|
$
|
4,488
|
|||
Adjusted Debt to Earnings Before Interest, Taxes,
Depreciation, Amortization and Rent ("EBITDAR"). We present
adjusted debt to EBITDAR because management believes this metric is helpful to
investors in assessing the company's overall debt profile. Adjusted debt
includes operating lease liabilities. We calculate EBITDAR by adding
depreciation and amortization to GAAP operating income and adjusting for the
fixed portion of operating lease expense.
|
(in billions)
|
December 31, 2019
|
||||
|
Debt and finance lease obligations
|
$
|
11
|
|||
|
Plus: Operating lease liability
|
6
|
||||
|
Adjusted Debt
|
$
|
17
|
|||
|
Year Ended
|
|||||
|
(in billions)
|
December 31, 2019
|
||||
|
GAAP operating income
|
$
|
7
|
|||
|
Adjusted for:
|
|||||
|
Depreciation and amortization
|
2
|
||||
|
Fixed portion of operating lease
expense
|
1
|
||||
|
EBITDAR
|
$
|
10
|
|||
|
Adjusted Debt to EBITDAR
|
1.7x
|
||||
Fuel expense, adjusted and Average fuel price per gallon,
adjusted. The tables below show the components of fuel expense, including
the impact of hedging and the refinery on fuel expense and average price per
gallon. We then adjust for MTM adjustments and settlements for the same reason
described under the heading pre-tax income and net income, adjusted.
|
Average Price Per Gallon
|
|||||||||||||||
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
(in millions, except per gallon data)
|
2019
|
2018
|
2019
|
2018
|
|||||||||||
|
Fuel purchase cost
|
$
|
2,013
|
$
|
2,318
|
$
|
2.02
|
$
|
2.38
|
|||||||
|
Fuel hedge impact
|
23
|
(33)
|
0.02
|
(0.03)
|
|||||||||||
|
Refinery segment impact
|
(24)
|
42
|
(0.03)
|
0.04
|
|||||||||||
|
Total fuel expense
|
$
|
2,012
|
$
|
2,327
|
$
|
2.01
|
$
|
2.39
|
|||||||
|
MTM adjustments and settlements
|
(23)
|
33
|
(0.02)
|
0.03
|
|||||||||||
|
Total fuel expense, adjusted
|
$
|
1,989
|
$
|
2,360
|
$
|
1.99
|
$
|
2.42
|
|||||||
|
Average Price Per Gallon
|
|||||||||||||||
|
Year Ended
|
Year Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
(in millions, except per gallon data)
|
2019
|
2018
|
2019
|
2018
|
|||||||||||
|
Fuel purchase cost
|
$
|
8,581
|
$
|
9,131
|
$
|
2.04
|
$
|
2.22
|
|||||||
|
Fuel hedge impact
|
14
|
(53)
|
—
|
(0.01)
|
|||||||||||
|
Refinery segment impact
|
(76)
|
(58)
|
(0.02)
|
(0.01)
|
|||||||||||
|
Total fuel expense
|
$
|
8,519
|
$
|
9,020
|
$
|
2.02
|
$
|
2.20
|
|||||||
|
MTM adjustments and settlements
|
(14)
|
53
|
—
|
0.01
|
|||||||||||
|
Total fuel expense, adjusted
|
$
|
8,505
|
$
|
9,073
|
$
|
2.02
|
$
|
2.21
|
|||||||
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Full post disclaimer in left column. PCN Home Page is located at: http://pcn.homestead.com/home01.html
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