−Removed: We are the leading U.S.
−Removed: global airline serving 200 million customers every year.
−Removed: We connect customers across our expansive global network to more than 300 destinations in over 50 countries.
−Removed: We are the world’s largest airline by total revenues and the most profitable with five consecutive years of $5 billion or more in pre-tax income.
−Removed: We are committed to industry-leading safety and reliability and are consistently among the industry’s best performers.
−Removed: Our employees provide world-class travel experiences for our customers and give back to the communities where they live, work and serve.
−Removed: Our people and service are our strongest competitive advantage creating significant customer satisfaction improvements.
−Removed: Other key competitive advantages include operational reliability, our global network, customer loyalty and our investment grade balance sheet.
−Removed: We have diversified revenue streams beyond the basic sale of an airline ticket in order to reduce the impact of cyclicality on our results.
−Removed: Our growing partnership with American Express provides a co-brand revenue stream tied to broader consumer spending.
−Removed: Our focus in recent years on premium products and customer segmentation has enhanced our revenue growth and reduced reliance on the most price sensitive customer segment.
−Removed: We also maintain complementary portfolio businesses, such as our Maintenance, Repair and Overhaul (“MRO”) division, where we are well positioned for significant organic growth through contractual agreements with jet engine manufacturers.
−Removed: We are incorporated under the laws of the State of Delaware.
−Removed: Our principal executive offices are located at Hartsfield- Jackson Atlanta International Airport in Atlanta, Georgia.
−Removed: Our telephone number is (404) 715-2600 and our internet address is www.delta.com.
−Removed: Information contained on our website is not part of, and is not incorporated by reference in, this Form 10-K.
−Removed: The Delta Brand
−Removed: We have the world’s most valuable airline brand, one that is mentioned not just among the best global airlines, but also alongside top consumer brands.
−Removed: Over the last decade, we significantly improved the quality and reliability of our operations.
−Removed: As a result, customer satisfaction scores have more than tripled.
−Removed: With operational excellence and best-in-class service, we are earning our customers' trust and preference.
−Removed: Our continued investment in operations, product, service, airports and technology are reshaping customer perception of our brand and driving increased customer loyalty.
−Removed: Our Global Network and Fleet
−Removed: We offer more than 5,000 daily departures and as many as 15,000 affiliated departures including the premier SkyTeam alliance, of which Delta is a founding member.
−Removed: We generate over 70% of our passenger revenue from our domestic network, centered around high-margin core hubs in Atlanta, Minneapolis-St.
−Removed: Paul, Detroit and Salt Lake City.
−Removed: These core hub positions complement strong coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK and Seattle.
−Removed: We have agreements with domestic regional carriers that operate as Delta Connection ® to feed traffic to our domestic hubs.
−Removed: We serve the Transatlantic, Transpacific and Latin America markets directly on Delta and through joint ventures with global airline partners.
−Removed: Internationally, we have significant hubs and market presence in Amsterdam, London-Heathrow, Mexico City, Paris-Charles de Gaulle and Seoul-Incheon.
−Removed: We will become the largest U.S.
−Removed: carrier to Tokyo-Haneda in 2020 as we consolidate operations in Tokyo, the preferred airport for the local and corporate markets.
−Removed: Through innovative alliances with Aeroméxico, Air France-KLM, China Eastern, Korean Air, Virgin Atlantic and Virgin Australia and alliances pending regulatory approval with LATAM Airlines and WestJet, we are bringing more choice to customers worldwide.
−Removed: Our strategic relationships with these international airlines are an important part of our business as they improve our access to markets around the world and enable us to provide customers a more seamless global travel experience across our alliance network.
−Removed: We and our alliance partners collectively serve over 140 countries and more than 900 destinations around the world, extending our network reach to cover approximately 98% of global gross domestic product.
−Removed: The most significant of these arrangements are commercial joint ventures that include joint sales and marketing coordination, co-location of airport facilities and other commercial cooperation arrangements.
−Removed: In some cases, we have reinforced strategic alliances through equity investments where we have opportunity to create deep relationships and maximize commercial cooperation.
−Removed: Our network is supported by a fleet of over 1,000 aircraft that is varied in size and capabilities, giving us flexibility to adjust aircraft to the network.
−Removed: We are currently refreshing our fleet, acquiring new, more fuel efficient aircraft with increased premium seating, to replace older aircraft.
−Removed: We are also reducing our fleet complexity with fewer aircraft types.
−Removed: The evolution from a legacy fleet to a more optimal fleet suited to the scale of our network will provide substantial efficiency benefits and further efforts to reduce our carbon footprint.
−Removed: Expanded Products and Services
−Removed: Over the last decade we have fundamentally transformed our business.
−Removed: We have invested in our people, our product and our reliability to alter the commodity-like nature of air travel.
−Removed: We have a retail oriented, merchandised approach to distribution with well-defined and differentiated products for our customers.
−Removed: Through improved product segmentation, we offer distinct travel experiences with clear value propositions that enable customer choice.
−Removed: In 2019, approximately one-third of our passenger revenues were from premium products, which include Delta One ® , Delta Premium Select, First Class and Delta Comfort+ ® .
−Removed: Main Cabin products, including Basic Economy, represented approximately half of our revenue in 2019 and provide varying levels of pre-travel flexibility as well as our exceptional service onboard the aircraft.
−Removed: Our tickets are sold through various distribution channels, with 52% of tickets sold through direct channels.
−Removed: These include digital channels, such as delta.com and the Fly Delta app, and our reservations specialists where we deliver more direct, personalized interactions with our customers at reduced distribution costs.
−Removed: Indirect distribution channels include online travel agencies and traditional "brick and mortar" agencies.
−Removed: We make fare and product information widely available across those channels, ensuring customers always receive the best information and service options.
−Removed: We are implementing merchandising initiatives across our distribution channels to allow customers to better understand our product offerings, make it easier to buy the products they desire and increase customer satisfaction.
−Removed: This merchandising effort is most effective in Delta's digital channels where customers can compare all product options in a single, easy to understand display.
−Removed: Innovative Technology to Improve Service and Efficiency
−Removed: Our objective is to make technology a strategic differentiator.
−Removed: We continue to invest in technological improvements that support our operations and provide tools for our employees.
−Removed: These investments include improvements to infrastructure and technology architecture to unify and improve access to data sources and continue innovations in customer facing applications.
−Removed: This digital transformation is enhancing interactions with our customers and allows our people to deliver more personalized service, further enhancing the customer experience and strengthening our brand.
−Removed: Through the development of innovative new technologies, we can better serve customers and give our employees the best tools.
−Removed: For our customers, we are making investments in the Fly Delta app, in the airport and onboard our aircraft.
−Removed: We are evolving the Fly Delta app into a digital travel concierge for our customers to offer convenient services on the day of travel and deliver thoughtful notifications to make their travel journeys more seamless.
−Removed: In the airport, we are investing to create a smoother, less stressful travel experience.
−Removed: On board the aircraft, we continue to invest in in-flight entertainment with the most seat-back screens in the sky and free messaging.
−Removed: For our employees, we are investing in applications that allow our people to have more meaningful interactions with our customers, as well as tools to make our employees safer and better able to do their jobs.
−Removed: Customer Loyalty Program
−Removed: Our SkyMiles ® loyalty program is designed to grow customer loyalty by offering incentives to customers to increase travel on Delta.
−Removed: As Delta's brand has strengthened, the SkyMiles ® program has seen an acceleration in membership growth.
−Removed: We see opportunity to continue this momentum as we increase customer engagement and expand mileage redemption options and revamp our co-brand card offerings.
−Removed: The loyalty program allows program members to earn mileage credit ("miles") for award redemptions such as flights and upgrades, by flying on Delta, our regional carriers and other participating airlines.
−Removed: Miles may also be earned by using certain services offered by program participants, such as credit card companies, hotels, car rental agencies and ridesharing companies.
−Removed: In addition, individuals may purchase miles.
−Removed: Miles do not expire, but are subject to the program rules.
−Removed: We reserve the right to terminate the program with six months advance notice, and to change the program's terms and conditions at any time without notice.
−Removed: Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express.
−Removed: In early 2019, we amended our primary co-brand agreement and other related agreements with American Express.
−Removed: The new agreements increase the amount of total benefit that we receive and extend the duration of the relationship to 2029.
−Removed: In 2019, cash sales from American Express totaled $4 billion, which is expected to grow to nearly $7 billion by 2023.
−Removed: Loyalty program miles can be redeemed for air travel (including upgrades) on Delta and participating airlines, for membership in our Delta Sky Clubs® and for other awards.
−Removed: We are expanding redemption opportunities and recently began enabling customers to redeem miles for bag fees.
−Removed: We offer last-seat availability for travel awards on our own flights (including most Delta Connection flights).
−Removed: Miles are subject to certain transfer restrictions and travel awards on partner airlines are subject to capacity-controlled seating.
−Removed: In 2019, 8.9% of revenue miles flown on Delta were from award travel, as program members redeemed miles in the loyalty program for 20 million award redemptions.
−Removed: Joint Ventures, Equity Investments and Alliances
−Removed: Joint Venture Agreements.
−Removed: We have implemented four separate joint venture arrangements with foreign carriers, each of which has been granted antitrust immunity from the U.S.
−Removed: Department of Transportation ("DOT").
−Removed: We have reinforced a number of the agreements through equity investments in those carriers.
−Removed: Each of our joint venture arrangements provides for joint commercial cooperation with the relevant partner within the geographic scope of the arrangement, including the sharing of revenues and/or profits and losses generated by the parties on the joint venture routes, as well as joint marketing and sales, coordinated pricing and revenue management, network and schedule planning and other coordinated activities with respect to the parties' operations on joint venture routes.
−Removed: Our implemented commercial joint ventures consist of the following:
−Removed: • A combined joint venture with Air France, KLM and Virgin Atlantic with respect to transatlantic traffic flows.
−Removed: In addition to the joint venture, we own a non-controlling 49% equity stake in Virgin Atlantic Limited, the parent company of Virgin Atlantic Airways and a non-controlling 9% ownership stake in the parent company of Air France and KLM.
−Removed: • A joint venture with Aeroméxico with respect to trans-border traffic flows between the U.S.
−Removed: In addition to the joint venture, we own a non-controlling 51% equity stake in Grupo Aeroméxico, S.A.B.
−Removed: de C.V., the parent company of Aeroméxico.
−Removed: In addition, we and Aeroméxico have established a joint venture relating to an airframe MRO operation located in Queretaro, Mexico.
−Removed: • A joint venture with Korean Air with respect to traffic flows between the United States and certain countries in Asia.
−Removed: In addition to the joint venture, we own a 10% equity stake in Hanjin-KAL, the largest shareholder of Korean Air.
−Removed: • A joint venture with Virgin Australia and its affiliated carriers with respect to traffic flows between North America and Australia/New Zealand.
−Removed: We have entered into a joint venture agreement with WestJet with respect to trans-border traffic flows between the U.S.
−Removed: Canadian authorities have approved the joint venture, but it remains subject to required approvals of the U.S.
−Removed: In 2019, we entered into a framework agreement with LATAM Airlines Group S.A.
−Removed: (“LATAM”) to form a strategic alliance.
−Removed: Pursuant to that agreement, we acquired a non-controlling 20% equity stake in LATAM in January 2020.
−Removed: The parties are in the process of finalizing definitive agreements to implement the strategic alliance and once finalized, the agreements will be submitted for approval by regulatory authorities.
−Removed: Pursuant to the framework agreement, we agreed to make transition payments to LATAM totaling $350 million, $200 million of which was disbursed in 2019, and also agreed to acquire four A350 aircraft from LATAM and plan to assume ten of LATAM’s A350 purchase commitments from Airbus, with deliveries through 2025.
−Removed: In order to facilitate the formation of our strategic alliance with LATAM, we have sold our ownership stake in GOL and are winding down our commercial agreements.
−Removed: Enhanced Commercial Agreements with China Eastern.
−Removed: We own a 3% equity interest in China Eastern, with whom we have a strategic joint marketing and commercial cooperation arrangement covering traffic flows between China and the U.S., which includes reciprocal codesharing, loyalty program participation, airport lounge access and joint sales cooperation.
−Removed: In addition to our marketing alliance agreements with individual foreign airlines, we are a member of the SkyTeam global airline alliance.
−Removed: The other members of SkyTeam are Aeroflot, Aerolíneas Argentinas, Aeroméxico, Air Europa, Air France, Alitalia, China Airlines, China Eastern, CSA Czech Airlines, Garuda Indonesia, Kenya Airways, KLM, Korean Air, Middle East Airlines, Saudi Arabian Airlines, Tarom, Vietnam Airlines and Xiamen Airlines.
−Removed: Through alliance arrangements with other SkyTeam carriers, Delta is able to link its network with the route networks of the other member airlines, providing opportunities to increase connecting traffic while offering enhanced customer service through reciprocal codesharing and loyalty program participation, airport lounge access and cargo operations.
−Removed: Regional Carriers
−Removed: We have air service agreements with domestic regional air carriers that feed traffic to our route system by serving passengers primarily in small and medium-sized cities in the domestic market.
−Removed: These arrangements enable us to better match capacity with demand in these markets.
−Removed: Approximately 15% of our passenger revenue in 2019 was related to flying by regional air carriers.
−Removed: Through our regional carrier program, Delta Connection ® , we have contractual arrangements with regional carriers to operate aircraft using our "DL" designator code.
−Removed: We currently have contractual arrangements with:
−Removed: • Compass Airlines, LLC ("Compass") and GoJet Airlines, LLC ("GoJet"), both subsidiaries of Trans States Holdings, Inc.
−Removed: ("Trans States");
−Removed: • Endeavor Air, Inc., a wholly owned subsidiary of ours;
−Removed: • Republic Airline, Inc.
−Removed: ("Republic"), a subsidiary of Republic Airways Holdings, Inc.;
−Removed: • SkyWest Airlines, Inc., a subsidiary of SkyWest, Inc.
−Removed: We have agreed with each of Compass and GoJet not to renew our existing arrangements and end our relationship with each by the end of 2020.
−Removed: Our contractual agreements with regional carriers primarily are 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.
−Removed: We are entitled to all ticket, cargo, mail, in-flight and ancillary revenues associated with these flights.
−Removed: 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.
−Removed: These capacity purchase agreements are long-term agreements, usually with initial terms of at least ten years, which grant us the option to extend the initial term.
−Removed: Certain of these agreements provide us the right to terminate the entire agreement, or in some cases remove some of the aircraft from the scope of the agreement, for convenience at certain future dates.
−Removed: SkyWest Airlines operates some flights for us under a revenue proration agreement.
−Removed: This proration agreement establishes a fixed dollar or percentage division of revenues for tickets sold to passengers traveling on connecting flight itineraries.
−Removed: Global Impact
−Removed: As we connect people with communities, experiences and each other, we are committed to doing our part to build a better world.
−Removed: Giving back to the communities where we live, work and serve is part of our culture, and we have pledged to give one percent of our annual net income back to communities across the globe.
−Removed: As a purpose-driven and values-led company, we are committed to reducing our environmental impact.
−Removed: We were among the leaders in the industry to offer comprehensive onboard recycling to our passengers and are working to reduce our use of single-use plastics.
−Removed: The chief focus of reducing our impact on the environment is jet fuel, which is the primary contributor to our carbon footprint.
−Removed: We continue to focus on increasing fuel efficiency as we replace older aircraft with more fuel-efficient jets and improve the efficiency of our existing aircraft through operational efforts.
−Removed: Other Businesses
−Removed: Through our global network, our cargo operations are able to connect the world's major freight gateways.
−Removed: We generate cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft.
−Removed: We are a member of SkyTeam Cargo, a global airline cargo alliance, whose other members are Aeroflot, Aerolíneas Argentinas, Aeroméxico Cargo, Air France-KLM Cargo, Alitalia Cargo, China Airlines Cargo, China Cargo Airlines, Czech Airlines Cargo, Korean Air Cargo and Saudia Cargo.
−Removed: SkyTeam Cargo offers a global network spanning six continents.
−Removed: Related Businesses
−Removed: We have several other businesses arising from our airline operations.
−Removed: In 2019, the total revenue from these businesses was approximately $1.2 billion.
−Removed: • In addition to providing maintenance and engineering support for our fleet of over 1,000 mainline and regional aircraft, our MRO operation, known as Delta TechOps, serves aviation and airline customers from around the world.
−Removed: • Our vacation wholesale subsidiary, Delta Vacations, provides vacation packages to third-party consumers.
−Removed: • Delta Private Jets, until January 2020 a wholly-owned subsidiary, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.
−Removed: In January 2020, we combined Delta Private Jets with Wheels Up, establishing one of the world’s largest owned and managed fleets of private aircraft.
−Removed: We now own an equity stake in Wheels Up.
−Removed: Our results of operations are significantly impacted by changes in the price and availability of aircraft fuel.
−Removed: We purchase most of our aircraft fuel under contracts that establish the price based on various market indices and therefore do not provide material protection against price increases or assure the availability of our fuel supplies.
−Removed: We also purchase aircraft fuel on the spot market, from off-shore sources and under contracts that permit the refiners to set the price.
−Removed: The following table shows our aircraft fuel consumption and costs.
−Removed: Year Gallons Consumed (1)
−Removed: (in millions)
−Removed: (in millions)
−Removed: Average Price Per Gallon (1)(2)
−Removed: Percentage of Total Operating Expense (1)(2)
−Removed: 2019 4,214 $ 8,519 $ 2.02 21.1 %
−Removed: 2018 4,113 $ 9,020 $ 2.20 23.0 %
−Removed: 2017 4,032 $ 6,756 $ 1.68 19.2 %
−Removed: (1) Includes the operations of our regional carriers operating under capacity purchase agreements.
−Removed: (2) Includes the impact of fuel hedge activity and refinery segment results.
−Removed: Monroe Energy
−Removed: Our wholly owned subsidiaries, Monroe Energy, LLC and MIPC, LLC (collectively, "Monroe") operate the Trainer refinery and related assets located near Philadelphia, Pennsylvania.
−Removed: The facilities 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.
−Removed: These companies are distinct from us, operating under their own management teams and with their own boards of managers.
−Removed: We own Monroe as part of our strategy to mitigate the cost of the refining margin reflected in the price of jet fuel, as well as to maintain sufficiency of supply to our New York operations.
−Removed: Refinery Operations.
−Removed: The facility is capable of refining approximately 200,000 barrels of crude oil per day.
−Removed: In addition to jet fuel, the refinery's production consists of gasoline, diesel and other refined petroleum products ("non-jet fuel products").
−Removed: Monroe sources domestic and foreign crude oil supply from a variety of providers.
−Removed: Strategic Agreements.
−Removed: Monroe exchanges the non-jet fuel products the refinery produces with third parties for jet fuel consumed in our airline operations.
−Removed: Fuel Hedging Program
−Removed: Our derivative contracts to hedge the financial risk from changing fuel prices are primarily related to Monroe’s inventory.
−Removed: We may utilize different contract and commodity types in this program and frequently test their economic effectiveness against our financial targets.
−Removed: We closely monitor the hedge portfolio and rebalance the portfolio based on market conditions, which may result in locking in gains or losses on hedge contracts prior to their settlement dates.
−Removed: Fuel Supply Availability
−Removed: We are currently able to obtain adequate supplies of aircraft fuel, including fuel produced by Monroe or procured through the exchange of non-jet fuel products the refinery produces, and crude oil for Monroe's operations.
−Removed: However, it is impossible to predict the future availability or price of aircraft fuel and crude oil.
−Removed: Weather-related events, natural disasters, political disruptions or wars involving oil-producing countries, changes in governmental policy concerning aircraft fuel production, transportation, taxes or marketing, changes in refining capacity, environmental concerns and other unpredictable events may result in future fuel supply shortages and fuel price increases.
−Removed: The airline industry is highly competitive, marked by significant competition with respect to routes, fares, schedules (both timing and frequency), services, products, customer service and loyalty programs.
−Removed: The industry has evolved through mergers and new entry, both domestically and internationally, and evolution in international alliances.
−Removed: Consolidation in the airline industry, the presence of subsidized government sponsored international carriers, changes in international alliances and the creation of immunized joint ventures have altered, and will continue to alter, the competitive landscape in the industry, resulting in the formation of airlines and alliances with significant financial resources, extensive global networks and competitive cost structures.
−Removed: Our domestic operations are subject to competition from traditional network carriers, including American Airlines and United Airlines, national point-to-point carriers, including Alaska Airlines, JetBlue Airways and Southwest Airlines, and other discount or ultra low-cost carriers, including Spirit Airlines, Frontier Airlines and Allegiant Air, some of which may have lower costs than we do and provide service at low fares to destinations served by us.
−Removed: Point-to-point, discount and ultra low-cost carriers place significant competitive pressure on network carriers in the domestic market.
−Removed: In particular, we face significant competition at our domestic hubs and key airports either directly at those airports or at the hubs of other airlines that are located in close proximity to our hubs and key airports.
−Removed: We also face competition in smaller to medium-sized markets from regional jet operations of other carriers.
−Removed: International
−Removed: Our international operations are subject to competition from both foreign and domestic carriers.
−Removed: Competition from government-owned and subsidized carriers in the Gulf region, including Emirates, Etihad Airways and Qatar Airways, is significant.
−Removed: These carriers have large numbers of international widebody aircraft on order and have increased service to the U.S.
−Removed: These carriers' government subsidies have allowed them to grow quickly, reinvest in their product and expand their global presence at the expense of U.S.
−Removed: Through alliance and other marketing and codesharing agreements with foreign carriers, U.S.
−Removed: carriers have increased their ability to sell international transportation, such as services to and beyond traditional European and Asian gateway cities.
−Removed: Similarly, foreign carriers have obtained increased access to interior U.S.
−Removed: passenger traffic beyond traditional U.S.
−Removed: gateway cities through these relationships.
−Removed: In particular, alliances formed by domestic and foreign carriers, including SkyTeam, the Star Alliance (among United Airlines, Lufthansa German Airlines, Air Canada and others) and the oneworld alliance (among American Airlines, British Airways, Qantas and others) have enhanced competition in international markets.
−Removed: In addition, several joint ventures among U.S.
−Removed: and foreign carriers, including our joint ventures, have received grants of antitrust immunity allowing the participating carriers to coordinate schedules, pricing, sales and inventory.
−Removed: Other joint ventures that have received antitrust immunity include a transatlantic alliance among United Airlines, Air Canada and Lufthansa German Airlines, a transpacific joint venture between United Airlines and All Nippon Airways, a transatlantic joint venture among American Airlines, British Airways and Iberia, a transpacific joint venture between American Airlines and Japan Air Lines and a transpacific joint venture between American Airlines and Qantas.
−Removed: Regulatory Matters
−Removed: The DOT and the Federal Aviation Administration (the "FAA") exercise regulatory authority over air transportation in the U.S.
−Removed: The DOT has authority to issue certificates of public convenience and necessity required for airlines to provide domestic air transportation.
−Removed: An air carrier that the DOT finds fit to operate is given authority to operate domestic and international air transportation (including the carriage of passengers and cargo).
−Removed: Except for constraints imposed by regulations regarding "Essential Air Services," which are applicable to certain small communities, airlines may terminate service to a city without restriction.
−Removed: The DOT has jurisdiction over certain economic and consumer protection matters, such as unfair or deceptive practices and methods of competition, advertising, denied boarding compensation, baggage liability and disabled passenger transportation.
−Removed: The DOT also has authority to review certain joint venture agreements between domestic and international carriers.
−Removed: The DOT engages in regulation of economic matters such as transactions involving allocation of "slots" or similar regulatory mechanisms which limit the rights of carriers to conduct operations at airports where such mechanisms are in place.
−Removed: The FAA has primary responsibility for matters relating to the safety of air carrier flight operations, including airline operating certificates, control of navigable air space, flight personnel, aircraft certification and maintenance and other matters affecting air safety.
−Removed: Authority to operate international routes and international codesharing arrangements is regulated by the DOT and by the governments of the foreign countries involved.
−Removed: International certificate authorities are also subject to the approval of the U.S.
−Removed: President for conformance with national defense and foreign policy objectives.
−Removed: The Transportation Security Administration and the U.S.
−Removed: Customs and Border Protection, each a division of the Department of Homeland Security, are responsible for certain civil aviation security matters, including passenger and baggage screening at U.S.
−Removed: airports and international passenger prescreening prior to entry into or departure from the U.S.
−Removed: Airlines are also subject to various other federal, state, local and foreign laws and regulations.
−Removed: For example, the U.S.
−Removed: Department of Justice has jurisdiction over airline competition matters.
−Removed: Postal Service has authority over certain aspects of the transportation of mail.
−Removed: Labor relations in the airline industry, as discussed below, are generally governed by the Railway Labor Act with oversight by the National Mediation Board.
−Removed: Environmental matters are regulated by various federal, state, local and foreign governmental entities.
−Removed: Privacy of passenger and employee data is regulated by domestic and foreign laws and regulations.
−Removed: Fares and Rates
−Removed: Airlines set ticket prices in all domestic and most international city pairs with minimal governmental regulation, and the industry is characterized by significant price competition.
−Removed: Certain international fares and rates are subject to the jurisdiction of the DOT and the governments of the foreign countries involved.
−Removed: Many of our tickets are sold by travel agents, and fares are subject to commissions, overrides and discounts paid to travel agents, brokers and wholesalers.
−Removed: Route Authority
−Removed: Our flight operations are authorized by certificates of public convenience and necessity and also by exemptions and limited-entry frequency awards issued by the DOT.
−Removed: The requisite approvals of other governments for international operations are controlled by bilateral agreements (and a multilateral agreement in the case of the U.S.
−Removed: and the European Union) with, or permits or approvals issued by, foreign countries.
−Removed: Because international air transportation is governed by bilateral or other agreements between the U.S.
−Removed: and the foreign country or countries involved, changes in U.S.
−Removed: or foreign government aviation policies could result in the alteration or termination of such agreements, diminish the value of our international route authorities or otherwise affect our international operations.
−Removed: Bilateral agreements between the U.S.
−Removed: and various foreign countries served by us are subject to renegotiation from time to time.
−Removed: government has negotiated "Open Skies" agreements with many countries, which allow unrestricted access between the U.S.
−Removed: and the foreign markets.
−Removed: Certain of our international route authorities are subject to periodic renewal requirements.
−Removed: We request extension of these authorities when and as appropriate.
−Removed: While the DOT usually renews temporary authorities on routes where the authorized carrier is providing a reasonable level of service, there is no assurance this practice will continue in general or with respect to a specific renewal.
−Removed: Dormant route authorities may not be renewed in some cases, especially where another U.S.
−Removed: carrier indicates a willingness to provide service.
−Removed: Airport Access
−Removed: Operations at three major domestic airports and certain foreign airports served by us are regulated by governmental entities through allocations of "slots" or similar regulatory mechanisms.
−Removed: Each slot represents the authorization to land at or take off from the particular airport during a specified time period.
−Removed: In the U.S., the FAA currently regulates the allocation of slots, slot exemptions, operating authorizations, or similar capacity allocation mechanisms at Reagan National in Washington, D.C.
−Removed: and LaGuardia and JFK in the New York City area.
−Removed: Our operations at these airports generally require the allocation of slots or analogous regulatory authorizations.
−Removed: Similarly, our operations at Tokyo's Haneda airport, London's Heathrow airport and other international airports are regulated by local slot coordinators pursuant to the International Air Transport Association's Worldwide Scheduling Guidelines and applicable local law.
−Removed: We currently have sufficient slots or analogous authorizations to operate our existing flights, and we have generally been able to obtain the rights to expand our operations and to change our schedules.
−Removed: There is no assurance, however, that we will be able to do so in the future because, among other reasons, such allocations are subject to changes in governmental policies.
−Removed: Environmental Matters
+Added: Environmental Regulation and Related Matters
Our operations are subject to a number of international, federal, state and local laws and regulations governing protection of the environment, including regulation of greenhouse gases and other air emissions, noise reduction, water discharges, aircraft drinking water, storage and use of petroleum and other regulated substances, and the management and disposal of hazardous waste, substances and materials.
9 unchanged sentences
Participation in the second phase is mandatory for certain countries, including the United States.
−Removed: We submitted our CORSIA Emissions Monitoring Plan to the FAA in 2019 and are monitoring emissions for the 2019-2020 baseline period.
+Added: government has not yet enacted legislation to mandate that U.S.
+Added: operators participate in CORSIA.
+Added: However, Delta submitted our CORSIA Emissions Monitoring Plan to the FAA in 2019 and in 2020, submitted our verified emissions report for 2019 international emissions.
In 2017, ICAO also adopted new aircraft certification standards to reduce carbon dioxide (CO2) emissions from aircraft.
−Removed: The new aircraft certification standards apply to new aircraft types in 2020 and to new in-production aircraft starting in 2023 but no later than 2028.
+Added: The new aircraft certification standards apply to new fleet types in 2020 and to new in-production aircraft starting in 2023 but no later than 2028.
These standards will not apply to existing in-service aircraft.
1 unchanged sentence
In 2016, the U.S.
−Removed: Environmental Protection Agency ("EPA") issued a final finding under the Clean Air Act that greenhouse gases threaten the public health and welfare, and further determined that aircraft cause or contribute to greenhouse gases.
−Removed: The endangerment finding does not establish standards, but triggers an obligation for the EPA to regulate greenhouse gas emissions from aircraft.
−Removed: The EPA has historically implemented air emissions control standards adopted by ICAO;
−Removed: however, the EPA has yet to issue regulations to regulate greenhouse gas emissions from aircraft pursuant to the 2016 endangerment finding.
−Removed: We may face additional regulation of aircraft emissions in the U.S.
+Added: Environmental Protection Agency ("EPA") issued a final finding under the Clean Air Act that greenhouse gases threaten the public health and welfare, and further determined that certain classes of aircraft engines cause or contribute to greenhouse gases.
+Added: The endangerment finding did not establish standards, but triggered an obligation for the EPA to regulate greenhouse gas emissions from certain aircraft engines.
+Added: In January 2021, the EPA finalized greenhouse gas emission standards for new aircraft engines designed to implement the ICAO standards on the same timeframe contemplated by ICAO.
+Added: Like the ICAO standards, the final EPA standards would not apply to engines on in-service aircraft.
+Added: The final standards have been challenged by several states and environmental groups, and the Biden administration has announced plans to review these final standards along with others issued by the prior administration.
+Added: The outcome of the legal challenge and administrative review cannot be predicted at this time.
+Added: The airline industry may face additional regulation of aircraft emissions in the U.S.
and abroad and become subject to further taxes, charges or additional requirements to obtain permits or purchase allowances or emission credits for greenhouse gas emissions in various jurisdictions.
1 unchanged sentence
In addition to direct costs, such regulation could result in increased fuel costs passed through from fuel suppliers affected by any such regulations.
−Removed: We are monitoring and evaluating the potential impact of such legislative and regulatory developments.
−Removed: We seek to minimize the impact of carbon emissions from our operations through reductions in our fuel consumption and other efforts, and have realized reductions in our carbon emission levels since 2005.
−Removed: We have reduced the fuel needs of our aircraft fleet through the retirement of older aircraft and replacement with newer, more fuel efficient aircraft.
+Added: Certain airports have also adopted, and others could in the future adopt, greenhouse gas emission or climate-related goals and requirements that could impact our operations or require us to make changes or investments in our infrastructure.
+Added: We are monitoring and evaluating the potential impact of such developments.
+Added: In February 2020, we announced plans to invest $1 billion in the next ten years in our effort to achieve carbon neutrality.
+Added: As part of this plan, we seek to minimize the impact of carbon emissions from our operations and build on the reductions realized since 2005.
+Added: We have improved the fuel efficiency of our aircraft through the retirement of older aircraft and their replacement with newer, more fuel efficient aircraft.
In addition, we have implemented fuel saving procedures in our flight and ground support operations that further reduce carbon emissions.
−Removed: We are also supporting efforts to develop alternative fuels and efforts to modernize the air traffic control system in the U.S.
−Removed: as part of our efforts to reduce our emissions and minimize our impact on the environment.
+Added: We are also supporting efforts to develop sustainable alternative fuels and efforts to modernize the air traffic control system in the U.S.
+Added: to further reduce our emissions and minimize our impact on the environment.
+Added: Beyond carbon reduction efforts, we expect carbon removal through investment in innovative projects and technologies and stakeholder engagement through coalitions intended to advance carbon reduction to be important aspects of our journey to carbon neutrality.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 12
The Airport Noise and Capacity Act of 1990 recognizes the rights of operators of airports with noise problems to implement local noise abatement programs so long as such programs do not interfere unreasonably with interstate or foreign commerce or the national air transportation system.
4 unchanged sentences
Monroe's operation of the Trainer refinery is subject to numerous environmental laws and extensive regulations, including those relating to the discharge of materials into the environment, waste management, pollution prevention measures and greenhouse gas and other air emissions.
−Removed: Under the Energy Independence and Security Act of 2005 and 2007, the Renewable Fuel Standard ("RFS") was created, setting up specific targets of renewable fuel to be used in the U.S.
+Added: Under the Energy Policy Act of 2005, as expanded by the Energy Independence and Security Act of 2007, the Renewable Fuel Standard ("RFS") was created, setting up specific targets of renewable fuel to be used in the U.S.
economy by mandating the blending of renewable fuels into gasoline and on-road diesel ("Transportation Fuels").
1 unchanged sentence
that are blended into Transportation Fuels to demonstrate compliance with this obligation.
−Removed: A refiner may meet its obligation under RFS by blending the necessary volumes of renewable fuels with Transportation Fuels or by purchasing RINs in the open market or through a combination of blending and purchasing RINs.
−Removed: Because Monroe blends only a small amount of renewable fuels, it must purchase the majority of its RINs requirement in the secondary market.
+Added: A refinery may meet its obligation under RFS by blending the necessary volumes of renewable fuels with Transportation Fuels or by purchasing RINs in the open market or through a combination of blending and purchasing RINs.
+Added: 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 or obtain a waiver from the EPA.
Market prices for RINs have been volatile, marked by periods of sharp increases and decreases primarily in response to predictions about what the EPA and/or the U.S.
11 unchanged sentences
The CRAF Program has only been activated twice since it was created in 1951.
−Removed: Employee Matters
−Removed: Railway Labor Act
−Removed: Our relations with labor unions representing our airline employees in the U.S.
−Removed: are governed by the Railway Labor Act.
−Removed: Under the Railway Labor Act, a labor union seeking to represent an unrepresented craft or class of employees is required to file with the National Mediation Board ("NMB") an application alleging a representation dispute, along with authorization cards signed by at least 50% of the employees in that craft or class.
−Removed: The NMB then investigates the dispute and, if it finds the labor union has obtained a sufficient number of authorization cards, conducts an election to determine whether to certify the labor union as the collective bargaining representative of that craft or class.
−Removed: A labor union will be certified as the representative of the employees in a craft or class if more than 50% of votes cast are for representation.
−Removed: A certified labor union would commence negotiations toward a collective bargaining agreement with the employer.
−Removed: Under the Railway Labor Act, a collective bargaining agreement between an airline and a labor union does not expire, but instead becomes amendable as of a stated date.
−Removed: Either party may request that the NMB appoint a federal mediator to participate in the negotiations for a new or amended agreement.
−Removed: If no agreement is reached in mediation, the NMB may determine, at any time, that an impasse exists and offer binding arbitration.
−Removed: If either party rejects binding arbitration, a 30-day "cooling off" period begins.
−Removed: At the end of this 30-day period, the parties may engage in “self help,” unless the U.S.
−Removed: President appoints a Presidential Emergency Board ("PEB") to investigate and report on the dispute.
−Removed: The appointment of a PEB maintains the "status quo" for an additional 60 days.
−Removed: If the parties do not reach agreement during this period, the parties may then engage in self help.
−Removed: Self help includes, among other things, a strike by the union or the imposition of proposed changes to the collective bargaining agreement by the airline.
−Removed: Congress and the President have the authority to prevent self help by enacting legislation that, among other things, imposes a settlement on the parties.
−Removed: Collective Bargaining
−Removed: As of December 31, 2019, we had approximately 91,000 full-time equivalent employees, approximately 19% of whom were represented by unions.
−Removed: The following table shows our domestic airline employee groups that are represented by unions.
−Removed: Employee Group Approximate Number of Active Employees Represented Union Date on which Collective Bargaining Agreement Becomes Amendable
−Removed: Delta Pilots 13,082 ALPA December 31, 2019
−Removed: Delta Flight Superintendents (Dispatchers) 443 PAFCA November 1, 2024
−Removed: Endeavor Air Pilots 1,872 ALPA January 1, 2024
−Removed: Endeavor Air Flight Attendants
−Removed: 1,492 AFA December 31, 2018
−Removed: We are in discussions with representatives of our pilots and Endeavor Air flight attendants regarding terms of amendable collective bargaining agreements.
−Removed: In addition to the domestic airline employee groups discussed above, 199 refinery employees of Monroe are represented by the United Steel Workers under an agreement that expires on February 28, 2022.
−Removed: This agreement is governed by the National Labor Relations Act ("NLRA"), which generally allows either party to engage in self help upon the expiration of the agreement.
−Removed: Labor unions periodically engage in organizing efforts to represent various groups of our employees, including at our operating subsidiaries, that are not represented for collective bargaining purposes.
−Removed: Information About Our Executive Officers
−Removed: Bastian, Age 62 :
−Removed: Chief Executive Officer of Delta since May 2016;
−Removed: President of Delta (September 2007 - May 2016);
−Removed: President of Delta and Chief Executive Officer Northwest Airlines, Inc.
−Removed: (October 2008 - December 2009);
−Removed: President and Chief Financial Officer of Delta (September 2007 - October 2008);
−Removed: Executive Vice President and Chief Financial Officer of Delta (July 2005 - September 2007);
−Removed: Chief Financial Officer of Acuity Brands (June 2005 - July 2005);
−Removed: Senior Vice President - Finance and Controller of Delta (2000 - April 2005);
−Removed: Vice President and Controller of Delta (1998 - 2000).
−Removed: Carter, Age 56 :
−Removed: Executive Vice President - Chief Legal Officer of Delta since July 2015;
−Removed: Partner of Dorsey & Whitney LLP (1999 - 2015), including co-chair of Securities Litigation and Enforcement practice group, chair of Policy Committee and chair of trial department.
−Removed: Hauenstein, Age 59 :
−Removed: President of Delta since May 2016;
−Removed: Executive Vice President - Chief Revenue Officer of Delta (August 2013 - May 2016);
−Removed: Executive Vice President - Network Planning and Revenue Management of Delta (April 2006 - July 2013);
−Removed: Executive Vice President and Chief of Network and Revenue Management of Delta (August 2005 - April 2006);
−Removed: Vice General Director - Chief Commercial Officer and Chief Operating Officer of Alitalia (2003 - 2005);
−Removed: Senior Vice President- Network of Continental Airlines (2003);
−Removed: Senior Vice President - Scheduling of Continental Airlines (2001 - 2003);
−Removed: Vice President Scheduling of Continental Airlines (1998 - 2001).
−Removed: Jacobson, Age 48:
−Removed: Executive Vice President - Chief Financial Officer of Delta since August 2013;
−Removed: Senior Vice President and Chief Financial Officer of Delta (March 2012 - July 2013);
−Removed: Senior Vice President and Treasurer of Delta (December 2007 - March 2012);
−Removed: Vice President and Treasurer of Delta (August 2005 - December 2007).
−Removed: Lentsch, Age 56 :
−Removed: Executive Vice President - Flying/Air Operations of Delta since August 2018;
−Removed: Senior Vice President - Delta Connection and Delta Global Services, CEO - Endeavor Air (April 2017 - August 2018);
−Removed: Senior Vice President - Airport Customer Service and Airline Operations of Delta (September 2013 - April 2017);
−Removed: Senior Vice President - Minnesota Operations of Delta (June 2009 - September 2013);
−Removed: Senior Vice President - Flight Operations of Northwest Airlines, Inc.
−Removed: (October 2008 - June 2009);
−Removed: Vice President - Flight Operations of Northwest Airlines, Inc.
−Removed: (October 2007 - October 2008);
−Removed: Vice President - Customer Service - Minneapolis of Northwest Airlines, Inc.
−Removed: (May 2006 - October 2007);
−Removed: Vice President - Station Operations of Northwest Airlines, Inc.
−Removed: (July 2005 - May 2006).
−Removed: Rahul Samant, Age 53:
−Removed: Executive Vice President - Chief Information Officer of Delta since January 2018;
−Removed: Senior Vice President and Chief Information Officer of Delta (February 2016 - December 2017);
−Removed: Senior Vice President and Chief Digital Officer of American International Group, Inc.
−Removed: (January 2015 - February 2016);
−Removed: Senior Vice President and Global Head, Application Development and Management of American International Group, Inc.
−Removed: (September 2012 - December 2014);
−Removed: Managing Director of Bank of America (1999 - September 2012).
−Removed: Sear, Age 54 :
−Removed: President, International and Executive Vice President - Global Sales of Delta since February 2016;
−Removed: Senior Vice President - Global Sales of Delta (December 2011 - February 2016);
−Removed: Vice President - Global Sales of Delta (October 2008 - December 2011);
−Removed: Vice President - Sales & Customer Care of Northwest Airlines, Inc.
−Removed: (June 2005 - October 2008).
−Removed: Smith, Age 61:
−Removed: Executive Vice President and Chief People Officer of Delta since October 2014;
−Removed: Senior Vice President - In-Flight Service of Delta (March 2007 - September 2014);
−Removed: Vice President - Marketing of Delta (November 2005 - February 2007);
−Removed: President of Song (January 2005 - October 2005);
−Removed: Vice President - Marketing and Customer Service of Song (November 2002 - December 2004).
−Removed: Gil West, Age 59:
−Removed: Senior Executive Vice President and Chief Operating Officer of Delta since February 2016;
−Removed: Executive Vice President and Chief Operating Officer of Delta (March 2014 - February 2016);
−Removed: Senior Vice President - Airport Customer Service and Technical Operations of Delta (February 2012 - February 2014);
−Removed: Senior Vice President - Airport Customer Service of Delta (March 2008 - January 2012);
−Removed: President and Chief Executive Officer of Laidlaw Transit Services (2006 - 2007).
Additional Information
−Removed: We make available free of charge on our website at ir.delta.com our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and amendments to those reports as soon as reasonably practicable after these reports are filed with or furnished to the Securities and Exchange Commission.
+Added: We make available free of charge on our website at ir.delta.com our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and amendments to those reports as soon as reasonably practicable after these reports are filed with or furnished to the Securities and Exchange Commission ("SEC").
Information on our website is not incorporated into this Form 10-K or our other securities filings and is not a part of those filings.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 13
+Added: In addition to the other information set forth in this report, you should carefully consider the following material risk factors applicable to Delta.
+Added: As described below, these risks could materially affect our business, financial condition or results of operations in the future.
+Added: Risk Factors Relating to Delta
+Added: The rapid spread of the COVID-19 virus, the persistence of the resulting pandemic and measures implemented to combat it have had, and will continue to have, a material adverse effect on our business.
+Added: Moreover, the longer the pandemic persists, the more material the ultimate effects are likely to be.
+Added: It is likely that there will be future negative effects that we cannot presently predict, including near term effects.
+Added: The rapid spread of COVID-19 and the persistence of the resulting pandemic, as well as the measures governments and private parties have implemented in order to stem the spread of this pandemic, have had, and are continuing to have a material adverse effect on the demand for worldwide air travel, and consequently upon our business.
+Added: Among other effects of the COVID-19 pandemic affecting air travel and our business:
+Added: • In the United States, which is our primary market, the federal government has discouraged travel and encouraged social distancing efforts and limits on gathering size.
+Added: • Numerous travel advisories and restrictions have been implemented, some of which remain in place, between the United States and specific countries, and many foreign governments have placed restrictions or quarantines on citizens of other countries, including citizens of the U.S., flying into their countries.
+Added: For instance, the U.S.
+Added: and numerous other countries are now requiring airline passengers to provide negative COVID-19 test results prior to travel into their countries.
+Added: • State and local governments have issued travel restrictions, quarantines and advisories and health-related curfews or “shelter in place” orders which dissuade or restrict air travel.
+Added: • Employers in both the public and private sectors have issued instructions to employees to work from home and/or are otherwise dissuading or restricting air travel.
+Added: • Business conventions and conferences, concerts and similar entertainment have been and continue to be cancelled.
+Added: Many popular tourist destinations have been, and remain, closed, or operations are curtailed.
+Added: Significant sporting events have been, and occasionally continue to be, cancelled or held with limited or no spectators.
+Added: All of these adjustments reduce the demand for both business air travel (which has historically driven our most profitable ticket sales) and leisure air travel.
+Added: • Travelers are discouraged from air travel to destinations where COVID-19 is particularly virulent.
+Added: • Widespread consumer confidence in air travel may not return until large-scale vaccination has occurred, and contagion or virus-related deaths linked or alleged to be linked to travel on aircraft, whether accurate or not, may hinder restoration of this confidence and, if related to our aircraft, injure our reputation.
+Added: • Travelers may be dissuaded from flying due to possible enhanced COVID-19-related screening measures, which have been implemented to varying degrees and in different ways across multiple markets we serve, or due to the concern that additional travel restrictions implemented between their departure and return may affect their ability to return to their homes.
+Added: These effects related to the COVID-19 pandemic are negatively impacting air travel in general, which in turn are materially adversely affecting our revenues, results of operations and financial condition.
+Added: Although certain of the restrictions above have eased in some places, the ongoing pandemic, including large outbreaks, resurgences of COVID-19 in various regions and appearances of new variants of the virus, has resulted, and may continue to result, in their reinstitution.
+Added: The effectiveness of the available vaccines against certain of these new variants is also unknown.
+Added: Moreover, additional currently unknown restrictions or other events dissuading air travel may occur in the future as a result of the pandemic (including possibly in the near term), lengthening the negative effects of the COVID-19 pandemic on our business.
+Added: For example, the federal government is contemplating whether to require COVID-19 testing in advance of domestic travel.
+Added: Our operations have been, and could in the future be, negatively affected further if our employees are quarantined or sickened as a result of exposure to COVID-19, or if they are subject to additional governmental COVID-19 curfews or “shelter in place” health orders or similar restrictions.
+Added: Measures restricting the ability of our airport or in-flight employees to come to work may cause a further deterioration in our service or operations, all of which could negatively affect our business.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 14
+Added: In response to the crisis, we have taken steps to mitigate the effects on our business, which themselves may have negative consequences with respect to our business and operations.
+Added: For example, we have significantly reduced our flight capacity and have blocked middle seats on flights through at least April 30, 2021.
+Added: However, the cost savings achievable with temporary capacity reductions will not completely eliminate the costs related to unused capacity.
+Added: In addition, to protect the safety of our employees and customers, we have implemented significant additional cleaning measures on all of our aircraft and at the airports in which we operate.
+Added: Furthermore, we have waived air travel booking change fees to a broad extent and extended the ability to rebook that travel through December 2022 in order to encourage travelers to book air travel (or not cancel already booked travel) despite the inherent uncertainty caused by the COVID-19 pandemic.
+Added: Despite these efforts, we have experienced significant ticket cancellations.
+Added: Cancellations, the waiver, and in many cases elimination, of change fees and other refunds have negatively affected our revenues and liquidity.
+Added: Ultimately, cost-saving measures that we implemented in 2020, or may consider in the future, have not made up, and will not in the future make-up, for the loss in cash as a result of decreased ticket sales and cancellations and could also negatively affect our service to customers.
+Added: The pandemic is also having a material adverse effect on third parties whose services we utilize, including other carriers with which we have commercial relationships (international carriers and regional carriers in the Delta Connection program) and providers of ground services at some airports, which may also negatively affect our service to customers.
+Added: We are unable to predict how long conditions related to the pandemic will persist, when effective vaccines will be broadly available, when vaccination will be widespread globally, when travel advisories and restrictions will be lifted, what additional measures may be introduced by governments or private parties or what effect any such additional measures may have on air travel and our business.
+Added: The overall situation remains fluid, and it is impossible to predict the timing of future material developments and whether they will occur in the near, medium or long term.
+Added: Depending on the duration of the pandemic, such negative developments may occur over the entirety of the pandemic.
+Added: At this time, we are also not able to predict the extent to which the COVID-19 pandemic may result in permanent changes to our customers' behavior, with such changes including but not limited to a permanent reduction in business travel as a result of increased usage of "virtual" meetings and "teleconferencing" products and more broadly, a general reluctance to travel by consumers, each of which could have a material impact on our business.
+Added: Collectively, the foregoing circumstances have had, and are continuing to have, a material adverse effect on our business, results of operations and financial condition.
+Added: Future disease outbreaks or similar public health threats could have similar effects.
+Added: The impact of the COVID-19 pandemic may also exacerbate other risks discussed in this Form 10-K and in other filings we make from time to time with the SEC.
+Added: We have a significant amount of fixed obligations and incurred significant amounts of new debt in a short period in response to the COVID-19 pandemic.
+Added: Insufficient liquidity may have a material adverse effect on our financial condition and business.
+Added: We have a significant amount of existing fixed obligations, including aircraft lease and debt financings, leases of airport property and other facilities, and other material cash obligations.
+Added: In response to the effects that the COVID-19 pandemic is having on our business, we have incurred and may continue to seek significant amounts of additional liquidity through the issuance of debt securities or through bilateral and syndicated secured and/or unsecured credit facilities and through the entry into sale-leaseback transactions.
+Added: In addition, we have substantial commitments for capital expenditures.
+Added: We had approximately $16.7 billion in cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities ("liquidity") as of December 31, 2020;
+Added: however, our future liquidity could be negatively affected by the risk factors discussed in this Form 10-K, and in other filings we may make from time to time with the SEC.
+Added: If our liquidity is materially diminished, we might not be able to timely pay our leases and debts or comply with certain financial covenants in our financing and credit card processing agreements or with other material provisions of our contractual obligations.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 15
+Added: Agreements governing our debt, including our credit facilities and our SkyMiles financing agreements, include financial and other covenants.
+Added: Certain of these covenants impose restrictions on our business, and failure to comply with any of the covenants in these agreements could result in events of default.
+Added: Our debt agreements contain various affirmative, negative and financial covenants, including our credit facilities and our SkyMiles financing agreements, each of which contains a minimum liquidity covenant.
+Added: Certain of our debt agreements also contain collateral coverage ratios, and our SkyMiles financing agreements contain a debt service coverage ratio.
+Added: A decline in these coverage ratios, including due to factors that are beyond our control, could require us to post additional collateral or trigger an early amortization event.
+Added: Our SkyMiles financing agreements also restrict our ability to, among other things, change the policies and procedures of the SkyMiles program in a manner that would reasonably be expected to materially impair repayment of our SkyMiles debt.
+Added: Complying with certain of the covenants in our debt agreements and other restrictive covenants that may be contained in any future debt agreements could limit our ability to operate our business and to take advantage of business opportunities that are in our long-term interest.
+Added: The terms of any future indebtedness we may incur could include more restrictive covenants.
+Added: While the covenants in our debt agreements are subject to important exceptions and qualifications, if we fail to comply with them and are unable to obtain a waiver or amendment, refinance the indebtedness subject to these covenants or take other mitigating actions, an event of default would result.
+Added: These arrangements also contain other events of default customary for such financings.
+Added: If an event of default were to occur, the lenders or noteholders could, among other things, declare outstanding amounts due and payable and where applicable and subject to the terms of relevant collateral agreements, repossess collateral, including aircraft or other valuable assets.
+Added: In addition, an event of default or acceleration of indebtedness under one agreement could result in an event of default under other of our financing agreements.
+Added: The acceleration of significant indebtedness could require us to seek to renegotiate, repay or refinance the obligations under our financing arrangements, and there is no assurance that such renegotiation or refinancing efforts would be successful.
+Added: We are at risk of losses and adverse publicity stemming from a serious accident involving our aircraft or aircraft of our airline partners.
+Added: An aircraft crash or other serious accident involving our aircraft or those of our airline partners could expose Delta to significant liability.
+Added: Although we believe that our insurance coverage is appropriate, we may be forced to bear substantial losses from an accident in the event that the coverage was not sufficient.
+Added: In addition, any accident involving an aircraft that we operate or an aircraft that is operated by an airline that is one of our regional carriers or codeshare, alliance or joint venture partners could create a negative public perception about safety and reliability for aviation authorities and the public, which could harm our reputation, resulting in air travelers being reluctant to fly on our aircraft and therefore harm our business.
+Added: Breaches or lapses in the security of the technology systems we use and rely on and the data stored within them could compromise sensitive information and expose us to liability, possibly having a material adverse effect on our business.
+Added: As a regular part of our ordinary business operations, we collect and store sensitive data, including information necessary for our operations, personal information of our passengers and employees and information of our business partners.
+Added: The secure operation of the networks and systems on which this type of information is stored, processed and maintained is critical to our business operations and strategy.
+Added: Our information systems and those of our service providers are subject to an increasing threat of continually evolving cybersecurity risks, and the increase in work-from-home arrangements since the onset of the COVID-19 pandemic has the potential to enhance these risks.
+Added: We expect unauthorized parties to continue to attempt to gain access to our systems or information, or those of our business partners and service providers, including through fraud or other means of deception, or introduction of malicious code, such as viruses, worms, Trojan horses and ransomware.
+Added: If successful, these actions could cause harm to our computer systems or compromise data stored on our computer networks or those of our business partners and service providers.
+Added: Hardware or software we or our business partners or service providers develop, acquire or use in connection with our systems may contain defects that could unexpectedly compromise information security.
+Added: For example, we were notified in 2018 that a third-party vendor of chat services for Delta and other companies determined we had been involved in a cyber incident for a short period in 2017.
+Added: We have incurred remedial, legal and other costs in connection with this incident but the costs are not material to our financial position or results of operations.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 16
+Added: The methods used to obtain unauthorized access, disable or degrade service or sabotage systems are constantly evolving and may be difficult to anticipate or to detect for long periods of time.
+Added: As a result of these types of risks and regular attacks on our systems, we regularly review and update procedures and processes to prevent and protect against unauthorized access to our systems and information and inadvertent misuse of data.
+Added: In addition to continuously assessing risk and reviewing our procedures, processes and technologies, we continue to educate our people about these risks and to monitor, review and update the process and control requirements we expect third parties and vendors to leverage and implement for the protection of information regarding our customers, employees or business partners that is in their care.
+Added: However, the constantly changing nature of the threats means that we may not be able to prevent all information security breaches or misuse of data.
+Added: The compromise of our or our business partners’ or service providers’ technology systems resulting in the loss, disclosure, misappropriation of, or access to, our information or that of our customers, employees or business partners or failure to comply with ever-evolving regulatory obligations or contractual obligations with respect to such information could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy of personal information, disruption to our operations and damage to our reputation, any or all of which could adversely affect our business.
+Added: The costs to remediate breaches and similar system compromises that do occur could be material.
+Added: In addition, as cybercriminals become more sophisticated, the cost of proactive defensive measures continues to increase.
+Added: Disruptions of our information technology infrastructure could interfere with our operations, possibly having a material adverse effect on our business.
+Added: Disruptions in our information technology network could result from a technology error or failure impacting our internal systems, whether hosted internally at our data centers or externally at third-party locations, or large scale external interruption in technology infrastructure support on which we depend, such as power, telecommunications or the internet.
+Added: The operation of our technology systems and the use of related data may also be vulnerable to a variety of other sources of interruption, including natural disasters, terrorist attacks, computer viruses, hackers and other security issues.
+Added: A significant individual, sustained or repeated failure of our information technology infrastructure, including third-party networks we utilize and on which we depend, could impact our operations and our customer service, result in increased costs and damage our reputation.
+Added: While we have in place initiatives to prevent disruptions and disaster recovery plans (including the creation of a back-up data center) and continue to invest in improvements to these initiatives and plans, we have previously experienced infrastructure disruptions and these measures may not be adequate to prevent a future business disruption and any material adverse financial and reputational consequences to our business.
+Added: Failure of the technology we use to perform effectively could have a material adverse effect on our business.
+Added: We are dependent on technology initiatives to provide customer service and operational effectiveness in order to compete in the current business environment.
+Added: For example, substantially all of our tickets are issued to our customers as electronic tickets, and a growing number of our customers check in using our website, airport kiosks and our mobile device applications.
+Added: We have made and continue to make significant investments in customer facing technology such as delta.com, mobile device applications, in-flight wireless internet, check-in kiosks, customer service applications, application of biometric technology, airport information displays and related initiatives, including security for these initiatives.
+Added: We are also investing in significant upgrades to technology infrastructure and other supporting systems and transitioning to cloud-based technologies.
+Added: The performance, reliability and security of the technology we use are critical to our ability to serve customers.
+Added: If this technology does not perform effectively, including as a result of the implementation or integration of new or upgraded technologies or systems, our business and operations would be negatively affected, which could be material.
+Added: Our commercial relationships with airlines in other parts of the world and the investments that we have in certain of those carriers may not produce the results or returns we expect.
+Added: An important part of our strategy to expand our global network has been to develop and expand strategic relationships with a number of airlines through joint ventures and other forms of cooperation and support, including equity investments.
+Added: We expect to continue exploring ways to deepen our alliance relationships with other carriers as part of our global business strategy.
+Added: These relationships and investments involve significant challenges and risks, including that they may not generate the expected financial results or that we may not realize a satisfactory return on our investment.
+Added: We are dependent on these other carriers for significant aspects of our network in the regions in which they operate.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 17
+Added: The COVID-19 pandemic has significantly impacted the operations of our airline partners and could adversely affect the expansion of strategic relationships in the future.
+Added: These carriers have incurred significant financial losses as a result of the pandemic, and some have been or may be forced to seek protection under applicable bankruptcy laws.
+Added: For example, since the onset of the pandemic, LATAM Airlines and Grupo Aeroméxico filed voluntary proceedings to reorganize under Chapter 11 of the United States bankruptcy code, Virgin Australia entered voluntary administration in Australia in order to recapitalize its business and repudiated our joint venture agreement, and Virgin Atlantic undertook a voluntary recapitalization process in the U.K.
+Added: and instituted ancillary proceedings in support of that process in the U.S.
+Added: As discussed further in Note 5 of the Notes to the Consolidated Financial Statements, the effects of the COVID-19 pandemic, along with these actions, caused us to reduce our carrying value in the equity investments we have in certain of these carriers to zero.
+Added: If any airline partners that seek to restructure are unable to do so successfully or if our commercial arrangements with these partners are not maintained, any investments or other assets associated with those partners could become impaired, and our business and results of operations could be materially adversely affected.
+Added: A significant disruption in, or other problems with respect to, the operations or performance of third parties on which we rely, including third-party carriers, could have a material adverse effect on our business and results of operations.
+Added: We rely on the operations and performance of third parties in a number of areas that are important to our business, including third-party regional carriers, international alliance partners and ground operation providers at some airports.
+Added: While we have agreements with certain of these third parties that define expected service performance, we do not have direct control over their operations.
+Added: To the extent that the operations of a third party on which we rely is significantly disrupted, or if these third parties experience significant performance issues (including failing to satisfy any applicable performance standards) or fail to meet any applicable compliance requirements, our revenue may be reduced, our expenses may be increased and our reputation may be harmed, any or all of which could result in a material adverse effect on our business and results of operations.
+Added: We may never realize the full value of our intangible assets or our long-lived assets, causing us to record impairments that may materially adversely affect our results of operations.
+Added: In accordance with applicable accounting standards, we are required to test our goodwill and other indefinite-lived intangible assets for impairment on an annual basis, or more frequently where there is an indication of impairment.
+Added: In addition, we are required to test certain of our other assets for impairment where there is any indication that an asset may be impaired.
+Added: During the fiscal year ended December 31, 2020, we recorded significant impairment and related charges related to acceleration of our fleet simplification strategy and the write-down of investments in certain airline partners, stemming from the impact of the COVID-19 pandemic.
+Added: We may be required to recognize losses in the future due to, among other factors, extreme fuel price volatility, tight credit markets, government regulatory changes, decline in the fair values of certain tangible or intangible assets, such as aircraft, route authorities, and airport slots, unfavorable trends in historical or forecasted results of operations and cash flows and an uncertain economic environment, as well as other uncertainties.
+Added: A further impairment charge could have a material adverse effect on our results of operations.
+Added: Employee strikes and other labor-related disruptions may have a material adverse effect on our operations.
+Added: Our business is labor intensive, utilizing large numbers of pilots, flight attendants, aircraft maintenance technicians, ground support personnel and other personnel.
+Added: As of December 31, 2020, 23% of our workforce, primarily pilots, was unionized.
+Added: Relations between air carriers and labor unions in the United States are governed by the Railway Labor Act, which provides that a collective bargaining agreement between an airline and a labor union does not expire, but instead becomes amendable as of a stated date.
+Added: The Railway Labor Act generally prohibits strikes or other types of self-help actions both before and after a collective bargaining agreement becomes amendable, unless and until the collective bargaining processes required by the Railway Labor Act have been exhausted.
+Added: The collective bargaining agreement with our pilots became amendable on December 31, 2019 and we are in discussions with the representative of the pilots regarding terms of the agreement under the auspices of the NMB.
+Added: Separately, the NLRA governs Monroe’s relations with the union representing their employees, which generally allows self help after a collective bargaining agreement expires.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 18
+Added: If we or our subsidiaries are unable to reach agreement with any of our unionized work groups on future negotiations regarding the terms of their collective bargaining agreements or if additional segments of our workforce become unionized, we may be subject to work interruptions or stoppages, subject to the requirements of the Railway Labor Act or the NLRA, as the case may be.
+Added: Strikes or labor disputes with our unionized employees may have a material adverse effect on our ability to conduct business.
+Added: Likewise, if third-party regional carriers with which we have contract carrier agreements are unable to reach agreement with their unionized work groups in current or future negotiations regarding the terms of their collective bargaining agreements, those carriers may be subject to work interruptions or stoppages, subject to the requirements of the Railway Labor Act, which could have a material adverse effect on our operations.
+Added: Our results can fluctuate due to the effects of weather, natural disasters and seasonality.
+Added: Our results of operations are impacted by severe weather, natural disasters and seasonality.
+Added: Severe weather conditions and natural disasters (or other environmental events) can significantly disrupt service and create air traffic control problems.
+Added: These events decrease revenue and can also increase costs.
+Added: In addition, increases in the frequency, severity or duration of thunderstorms, hurricanes, typhoons or other severe weather events, including from changes in the global climate, could result in increases in delays and cancellations, turbulence-related injuries and fuel consumption to avoid such weather, any of which could result in loss of revenue and higher costs.
+Added: In addition, demand for air travel is typically higher in the June and September quarters, particularly in our international markets, because there is more vacation travel during these periods than during the remainder of the year.
+Added: The seasonal shifting of demand causes our financial results to vary on a seasonal basis.
+Added: Because of fluctuations in our results from weather, natural disasters and seasonality, results of operations for a historical period are not necessarily indicative of results of operations for a future period and results of operations for an interim period are not necessarily indicative of results of operations for an entire year.
+Added: Our business and results of operations are dependent on the price of aircraft fuel.
+Added: High fuel costs or cost increases, including in the cost of crude oil, could have a material adverse effect on our results of operations.
+Added: Our results of operations are significantly impacted by changes in the price of aircraft fuel.
+Added: Over the last decade, fuel prices have been highly volatile and at times have increased substantially.
+Added: From 2017 to 2020, our average annual fuel price per gallon, including the impact of fuel hedges, has varied from $1.64 to $2.20 with year to year variations ranging from a decrease of 19% to an increase of 31%.
+Added: We acquire a significant amount of jet fuel from Monroe and through strategic agreements that Monroe has with third parties.
+Added: The cost of the fuel we purchase under these arrangements remains subject to volatility in the cost of crude oil and jet fuel.
+Added: In addition, we have historically purchased a significant amount of aircraft fuel in addition to what we obtain from Monroe.
+Added: Our aircraft fuel purchase contracts alone do not provide material protection against price increases as these contracts typically establish the price based on industry standard market price indices.
+Added: The competitive nature of the airline industry may affect our ability to pass along rapidly increasing fuel costs to our customers.
+Added: In addition, because passengers often purchase tickets well in advance of their travel, a significant rapid increase in fuel price may result in the fare charged not covering that increase.
+Added: At times in the past, we often were not able to increase our fares to offset fully the effect of increases in fuel costs, and we may not be able to do so in the future.
+Added: Significant extended disruptions in the supply of aircraft fuel, including from Monroe, could have a material adverse effect on our operations and results of operations.
+Added: Weather-related events, natural disasters, political disruptions or wars involving oil-producing countries, changes in governmental policy concerning aircraft fuel production, transportation or taxes, changes in refining capacity, environmental concerns and other unpredictable events may impact crude oil and fuel supply and could result in shortages in the future.
+Added: Shortages in fuel supplies could have negative effects on our results of operations and financial condition.
+Added: Because we acquire a significant amount of our jet fuel from Monroe, the disruption or interruption of production at the refinery could have an impact on our ability to acquire jet fuel needed for our operations.
+Added: Disruptions or interruptions of production at the refinery could result from various sources including a major accident or mechanical failure, interruption of supply or delivery of crude oil, work stoppages relating to organized labor issues, or damage from severe weather or other natural or man-made disasters, including acts of terrorism.
+Added: If the refinery were to experience an interruption in operations, disruptions in fuel supplies could have negative effects on our results of operations and financial condition.
+Added: In addition, the financial benefits from the operation of the refinery could be materially adversely affected (to the extent not recoverable through insurance) because of lost production and repair costs.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 19
+Added: If Monroe's cost of producing non-jet fuel products exceeds the value it receives for those products, the financial benefits we expect to achieve through the ownership of the refinery and our consolidated results of operations could be materially adversely affected.
+Added: An environmental or other incident associated with the operation of the Monroe refinery could have a material adverse effect on our consolidated financial results if insurance is unable to cover a significant liability.
+Added: In addition, such an incident could damage our reputation.
+Added: Monroe's refining operations are subject to various hazards unique to refinery operations, including explosions, fires, toxic emissions and natural catastrophes.
+Added: Monroe could incur substantial losses, including cleanup costs, fines and other sanctions and third-party claims, and its operations could be interrupted, as a result of such an incident.
+Added: Monroe's insurance coverage does not cover all potential losses, costs or liabilities, and Monroe could suffer losses for uninsurable or uninsured risks or in amounts greater than its insurance coverage.
+Added: In addition, Monroe's ability to obtain and maintain adequate insurance may be affected by conditions in the insurance market over which it has no control.
+Added: If Monroe were to incur a significant liability for which it is not fully insured or for which insurance companies do not or are unable to provide coverage, this could have a material adverse effect on our consolidated financial results of operations or consolidated financial position.
+Added: In addition, because of our ownership of Monroe, the occurrence of an environmental or other incident could result in damage to our reputation, which could have a material adverse effect on our financial results.
+Added: The operation of the refinery by Monroe is subject to significant environmental regulation.
+Added: Failure to comply with environmental regulations or the enactment of additional regulation could have a material adverse effect on our consolidated financial results.
+Added: Monroe’s operations are subject to extensive environmental, health and safety laws and regulations, including those relating to the discharge of materials into the environment, waste management, pollution prevention measures and greenhouse gas emissions, which are subject to change over time.
+Added: Monroe could incur fines and other sanctions, cleanup costs and third-party claims as a result of violations of or liabilities under environmental, health and safety requirements, which if significant, could have a material adverse effect on our consolidated financial results.
+Added: In addition, the enactment of new, more stringent environmental laws and regulations, including any laws or regulations relating to greenhouse gas emissions, could significantly increase the level of expenditures required for Monroe or restrict its operations.
+Added: In particular, under the Energy Independence and Security Act of 2007, the EPA has adopted RFS that mandates the blending of renewable fuels into Transportation Fuels.
+Added: RINs are assigned to renewable fuels produced or imported into the U.S.
+Added: that are blended into Transportation Fuels to demonstrate compliance with this obligation.
+Added: A refinery may meet its obligation under RFS by blending the necessary volumes of renewable fuels with Transportation Fuels or by purchasing RINs in the open market or through a combination of blending and purchasing RINs.
+Added: Because Monroe is able to blend only a small amount of renewable fuels, it must purchase the majority of its RIN requirement in the secondary market or obtain a waiver from the EPA.
+Added: As a result, Monroe is exposed to the market price of RINs.
+Added: Market prices for RINs have been volatile, marked by periods of sharp increases and decreases primarily in response to predictions about what the EPA and/or the U.S.
+Added: Congress will do with respect to compliance obligations.
+Added: We cannot predict these actions or the future prices of RINs.
+Added: During 2020, Monroe's operating loss was driven in part by an increase in RINs prices.
+Added: Monroe’s purchase of RINs at elevated prices in the future could have a material impact on our consolidated results of operations and cash flows.
+Added: Existing laws or regulations could change, and the minimum volumes of renewable fuels that must be blended with refined petroleum products may increase.
+Added: Increases in the volume of renewable fuels that must be blended into Monroe’s products could limit the refinery’s production if sufficient numbers of RINs are not available for purchase or relief from this requirement is not obtained, which could have a material adverse effect on our consolidated financial results.
+Added: If we lose senior management and other key employees and they are not replaced by individuals with comparable skills, or we otherwise fail to maintain our company culture, our business and results of operations could be materially adversely affected.
+Added: We are dependent on the experience and industry knowledge of our officers and other key employees to design and execute our business plans.
+Added: If we experience a substantial turnover in our leadership and other key employees and we are not able to replace these persons with individuals with comparable skills, or we otherwise fail to maintain our company culture, our performance could be materially adversely impacted.
+Added: Furthermore, we may be unable to attract and retain additional qualified senior management and other key personnel as needed in the future.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 20
+Added: Significant damage to our reputation and brand, including as a result of significant adverse publicity, could materially adversely affect our business and financial results.
+Added: Maintaining our reputation and global brand are critical to our business.
+Added: We operate in a highly visible, public environment with significant, real-time exposure to traditional and social media.
+Added: Adverse publicity, whether justified or not, can rapidly spread, including through social or digital media.
+Added: In particular, passengers can use social media to portray interactions with Delta, without context, in a manner that can be quickly and broadly disseminated.
+Added: To the extent we are unable to respond in a timely and appropriate manner to adverse publicity, our brand and reputation may be damaged.
+Added: Our reputation and brand could also be adversely impacted by, among other things, failure to make progress toward and achieve our environmental sustainability and diversity, equity and inclusion goals, as well as public pressure from investors or policy groups to change our policies or negative public perception of the environmental impact of air travel.
+Added: Significant damage to our reputation and brand could have a material adverse effect on our business and financial results.
+Added: Delta Air Lines, Inc.
+Added: 2020 Form 10-K 21
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