MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
−Removed: Our business and operating results continue to be significantly impacted by the COVID-19 pandemic.
−Removed: However, as described further below, we have seen improvement in our business beginning in March 2021 and progressing through 2021.
−Removed: Given the drastic and unprecedented impact of the pandemic on our operating results in 2020, we believe that for the financial highlights discussion below, a comparison of our results in 2021 to both 2020 and 2019 allows for a better understanding of the full impact of the COVID-19 pandemic and the progress of our recovery.
+Added: During 2022, our recovery from the impact of the COVID-19 pandemic continued and is continuing into 2023.
+Added: Given the drastic and unprecedented impact of the pandemic on our operating results in 2020 and 2021, we believe that a comparison of our results in 2022 to both 2021 and 2019 in this overview section allows for a better understanding of the full impact of the COVID-19 pandemic and the progress of our recovery.
This section of Form 10-K, however, does not address certain items regarding the year ended December 31, 2020.
3 unchanged sentences
The table below shows certain key financial measures for the years ended December 31, 2022, 2021 and 2019:
−Removed: Year Ended December 31, 2021 vs 2020 % Increase (Decrease) (1)
−Removed: 2021 vs 2019 % Increase (Decrease) (1)
+Added: Year Ended December 31, 2022 vs 2021 % Increase (Decrease) 2022 vs 2019 % Increase (Decrease)
(in millions) 2022 2021 2019
1 unchanged sentence
Total operating expense 46,921 28,013 40,389 67 % 16 %
−Removed: Total non-operating expense, net (1,488) (3,118) (420) (52) % NM
−Removed: Income/(loss) before income taxes 398 (15,587) 6,198 NM (94) %
−Removed: (1) Certain variances are labeled as not meaningful ("NM") throughout management's discussion and analysis.
−Removed: Financial Highlights - 2021 Compared to 2019
−Removed: Our pre-tax income for 2021 was $398 million, which includes recognition of $4.5 billion in grants from the Payroll Support Program Extension ("PSP2") and Payroll Support Program 3 ("PSP3").
−Removed: This is a $5.8 billion decrease compared to 2019 primarily due to the impact of the COVID-19 pandemic on our business which resulted in a 36% decrease in revenue, partially offset by a reduction in operating expense, including the government grant recognition.
−Removed: Pre-tax loss, adjusted (a non-GAAP financial measure) which excludes the government grant recognition and other items was $3.4 billion, a decrease of $9.6 billion compared to 2019.
−Removed: Compared to 2019, our operating revenue decreased $17.1 billion, or 36% due to reduced demand resulting from the COVID-19 pandemic.
−Removed: The length and severity of the reduction in travel demand due to the COVID-19 pandemic remains uncertain;
−Removed: however, with continued distribution of effective vaccines and easing of travel advisories and restrictions, we believe customer confidence will continue to grow, leading to increased demand during 2022.
−Removed: We expect domestic leisure travel to exceed 2019 levels in 2022, while we expect business travel to continue to return as many companies are expected to expand "return to office" plans throughout 2022.
−Removed: International demand recovery has been uneven as the COVID-19 variants and related travel restrictions impact various countries within our international network, though we believe demand will begin accelerating in the second half of 2022 as travel restrictions are lifted.
−Removed: We continue to monitor risks to the pace of recovery from COVID-19 variants, the effectiveness of vaccine programs and travel advisories and restrictions.
−Removed: We are planning for our system capacity to be approximately 15% lower in the March 2022 quarter than the March 2019 quarter and approximately 10% lower for the full year of 2022 compared to 2019.
+Added: Operating income 3,661 1,886 6,618 94 % (45) %
+Added: Available seat miles ("ASM" or "capacity") 233,226 194,474 275,379 20 % (15) %
+Added: 2022 Financial Overview
+Added: Our 2022 operating income was $3.7 billion, an improvement of $1.8 billion compared to 2021, while operating income, adjusted (a non-GAAP financial measure) which excludes restructuring charges and other items was $3.6 billion, an increase of $6.1 billion compared to 2021.
+Added: The increases in operating income and operating income, adjusted were primarily due to the continued recovery in the demand for air travel during 2022, which resulted in a 69% increase in operating revenue on a 20% increase in system capacity.
+Added: Operating income in 2021 included a benefit of $4.5 billion from the recognition of payroll support program ("PSP") grants, driving the smaller year-over-year increase than operating income, adjusted, which excluded the grants benefit in 2021.
+Added: Our 2022 operating income decreased $3.0 billion compared to 2019 primarily due to an increase in operating costs, including a 35% increase in fuel cost, and lower passenger revenue due to system capacity that was 15% lower as we continued to restore our operations from the effects of the COVID-19 pandemic.
+Added: Operating income, adjusted (a non-GAAP financial measure) decreased $3.1 billion compared to 2019.
+Added: Compared to 2021, our 2022 operating revenue increased $20.7 billion, or 69%, primarily due to continued recovery in travel demand from the COVID-19 pandemic and higher refinery sales to third parties.
+Added: Improvement in premium products revenue resulted from both a shift in the mix of seats on our aircraft following the retirement of certain fleets in 2020 and delivery of new aircraft since that time, as well as incremental increase in demand, particularly from leisure customers.
+Added: Compared to 2019, our operating revenue increased $3.6 billion, or 8%, due primarily to higher refinery sales to third parties, partially offset by the revenue impact from 15% lower capacity.
+Added: We are planning for our 2023 system capacity to fully recover to or exceed 2019 capacity levels.
Operating Expense.
−Removed: Total operating expense decreased $12.4 billion, or 31%, compared to 2019, primarily resulting from recognition of the grants from PSP2 and PSP3, lower volume-related expenses (mainly fuel and passenger commissions and other selling expenses), lower salaries and related costs and profit sharing expense, and significant cost reduction measures taken across all aspects of our operation in response to the COVID-19 pandemic.
−Removed: These decreases were partially offset by an increase in expenses related to refinery sales to third parties, reflected in ancillary business and refinery expense, as well as recovery related and transition costs incurred (e.g., aircraft reactivation, hiring, training, overtime and reservations volume) as we return closer to pre-pandemic levels of demand and capacity.
−Removed: Total operating expense, adjusted (a non-GAAP financial measure) decreased $10.9 billion, or 27% compared to 2019.
+Added: Total operating expense increased $18.9 billion, or 67%, compared to 2021, primarily resulting from higher fuel costs, due to both an increase in fuel price and increased consumption as capacity was restored, as well as higher salaries and related costs, higher volume-related expenses associated with the increase in capacity and demand and an increase in expenses related to refinery sales to third parties, reflected in ancillary business and refinery expense.
+Added: The increase also resulted from $4.5 billion of PSP grants recognized during 2021, which reduced expenses in that year.
+Added: Total operating expense, adjusted (a non-GAAP financial measure) which excludes expenses related to refinery sales to third parties, contra-expense from the recognition of PSP grants in 2021 and other items, increased $12.8 billion, or 44%, compared to 2021.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 34
+Added: | 2022 10-K 33
MD&A - Financial Highlights
−Removed: Our total operating cost per available seat mile ("CASM") decreased 2% to 14.40 cents compared to 2019, primarily due to the cost reductions discussed above and partially offset by a 29% decrease in capacity.
−Removed: Non-fuel unit costs ("CASM-Ex", a non-GAAP financial measure) increased 11% to 12.12 cents due to the 29% decrease in capacity, despite a decline in adjusted operating expenses.
−Removed: Minimizing unit cost increases is important to delivering on our overall financial objectives.
−Removed: During 2022, however, we expect non-fuel unit costs to increase 7%-10% compared to 2019.
−Removed: This expected unit cost increase is primarily due to 2022 capacity projected to be lower than 2019, costs associated with rebuilding our network, investments to support an elevated customer experience and our premium brand focus, and inflation and labor cost escalation in the underlying business.
−Removed: We expect non-fuel unit cost increases compared to 2019 to moderate in future years as we return to and exceed pre-pandemic capacity and benefit from cost reduction measures implemented during 2020 that were structural in nature.
−Removed: We have experienced, and expect to continue experiencing, increased cost inflation as a result of global macroeconomic trends, actions we took in response to the COVID-19 pandemic and labor shortages at our suppliers.
−Removed: Actions we have taken to mitigate the impact of expected inflation include leveraging scale and efficiency in our underlying business through improved asset utilization and seeking productivity improvements through increased scale efficiencies and technology enhancements.
−Removed: Non-Operating Results.
−Removed: Total non-operating expense was $1.5 billion in 2021, $1.1 billion higher than 2019, primarily due to higher interest expense as a result of our increased debt balances due to the financing arrangements entered into during 2020.
−Removed: Our liquidity at December 31, 2021 was $14.2 billion, an $8.2 billion increase compared to December 31, 2019 as a result of proceeds from loans and debt issuances and other liquidity initiatives.
−Removed: During 2021, operating activities provided $3.3 billion, including $4.5 billion from the payroll support program grants, which was partially offset by the $1.5 billion in contributions we made to our defined benefit pension plans.
−Removed: During 2021, we incurred approximately $900 million of net investing cash outflows, primarily for $3.2 billion capital expenditures, partially offset by $2.4 billion of net redemptions of short-term investments.
−Removed: Capital expenditures primarily related to the purchase of aircraft, fleet modifications, our airport redevelopment projects and technology enhancements.
−Removed: These results generated $1.3 billion of free cash flow (a non-GAAP financial measure) in 2021 compared to $4.2 billion in 2019.
−Removed: Also, during 2021 we had cash outflows of approximately $5.8 billion related to repayments of our debt and finance leases, including approximately $3.8 billion for early repayments and the remainder from scheduled maturities.
−Removed: The non-GAAP financial measures pre-tax loss, adjusted, operating expense, adjusted, CASM-Ex and free cash flow used above are defined and reconciled in "Supplemental Information" below.
−Removed: Financial Highlights - 2021 Compared to 2020
−Removed: Our 2021 pre-tax income improved $16.0 billion compared to 2020.
−Removed: This was primarily due to the restructuring charges, investment impairments and equity method losses recorded during 2020 and a partial recovery in the demand for air travel during 2021, which resulted in a 75% increase in revenue.
−Removed: Pre-tax loss, adjusted (a non-GAAP financial measure) was $3.4 billion, an increase of $5.6 billion compared to 2020.
−Removed: Compared to 2020, our 2021 operating revenue increased $12.8 billion, or 75%, primarily due to increased travel demand.
−Removed: Operating Expense.
−Removed: Total operating expense decreased $1.6 billion, or 5%, compared to 2020, primarily resulting from the reduction in restructuring charges and recognition of the PSP2 and PSP3 grants.
−Removed: These decreases were almost fully offset by higher volume-related expenses associated with the increase in capacity and demand, mainly fuel and aircraft maintenance and higher salaries and related costs and an increase in expenses related to refinery sales to third parties, reflected in ancillary business and refinery expense.
+Added: Our total operating cost per available seat mile ("CASM") increased 40% to 20.12 cents compared to 2021, primarily due to the higher costs discussed above.
+Added: Non-fuel unit costs ("CASM-Ex", a non-GAAP financial measure), which excludes fuel, expenses related to refinery sales to third parties, contra-expense from the recognition of PSP grants in 2021 and other items, increased 6% to 12.87 cents.
+Added: Total operating expense increased $6.5 billion, or 16%, compared to 2019, primarily resulting from higher fuel costs and an increase in expenses related to refinery sales to third parties.
Total operating expense, adjusted (a non-GAAP financial measure) increased $2.0 billion, or 5% compared to 2019.
−Removed: Our CASM decreased 35% to 14.40 cents compared to 2020, primarily due to a 45% increase in capacity and reduction in operating expense from the reduction in restructuring charges and recognition of the PSP2 and PSP3 grants as noted above.
−Removed: CASM-Ex (a non-GAAP financial measure) decreased 22% to 12.12 cents.
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 35
−Removed: MD&A - Financial Highlights
+Added: Our CASM increased 37% compared to 2019, primarily due to the higher costs discussed above and a 15% decrease in capacity.
+Added: CASM-Ex (a non-GAAP financial measure) increased 18% compared to 2019.
+Added: During 2023, we expect non-fuel unit costs to decrease compared to 2022 as we restore our network to pre-pandemic levels, better utilizing our assets.
+Added: We expect to reduce our investments in rebuilding the network as we progress through the year while improving our operational efficiency and managing inflationary pressures including labor cost increases.
Non-Operating Results.
−Removed: Total non-operating expense was $1.5 billion in 2021, $1.6 billion lower than 2020 primarily due to impairments and our proportionate share of equity method losses related to our investments in LATAM and Grupo Aeroméxico in 2020, which were zero in 2021, and mark-to-market gains on certain of our other equity investments.
−Removed: These decreases were partially offset by higher interest expense as a result of our increased debt balances due to the financing arrangements entered into during 2020 and losses on debt extinguishment.
−Removed: The $1.3 billion of free cash flow generated in 2021 compared to $4.3 billion of negative free cash flow in 2020.
−Removed: Environmental Sustainability
−Removed: During 2021, we built on our previously announced plan to invest $1.0 billion through the end of 2030 toward airline carbon neutrality by committing to, among other things, set medium- and long-term climate goals that are aligned with applicable SBTi frameworks, as described further in Part I, Item 1, "Business - Environmental Sustainability." We expect our path toward achievement of these ambitious climate goals to depend heavily on increased use of SAF, which is not presently available at scale or at prices competitive to jet fuel, and improved fuel efficiency from fleet renewal and operational initiatives.
−Removed: During 2021, we signed agreements with numerous corporate and agency customers to offset the premium from our SAF purchases.
−Removed: While we do not expect a material adverse effect on our Consolidated Financial Statements in the near term from the use of SAF, we are unable to predict the financial impact of increased use of SAF on our Consolidated Financial Statements over the longer term, as government policies and incentives for, and sufficient third-party investment in, SAF are necessary to make its use in larger quantities commercially and economically feasible.
−Removed: In addition, our fleet renewal efforts will require extensive capital investment in future periods.
−Removed: In the near-term and subject to market dynamics, we also expect to continue the purchase and retirement of verified carbon offsets in support of our $1.0 billion airline carbon neutrality goal.
−Removed: During 2021, we incurred $95 million of expense related to carbon offsets.
−Removed: This amount consists of $30 million to address 13 million metric tons of carbon emissions generated by our airline segment from March 1 to December 31, 2020 through carbon offsets, as well as an additional $65 million for the purchase and retirement of carbon offsets related to a portion of our airline segment's 2021 carbon emissions.
−Removed: The cost of carbon offsets increased significantly during 2021 and will likely continue to do so, which could adversely affect our financial results as we purchase such offsets either in support of our $1.0 billion airline carbon neutrality goal or in satisfaction of future obligations under CORSIA, which are described further in Part I, Item 1, "Business - Environmental Regulation."
+Added: Total non-operating expense was $1.7 billion in 2022, $259 million higher than 2021 primarily due to higher mark-to-market losses on certain of our equity investments, partially offset by reduced losses on our equity method investments, lower interest expense as a result of our debt reduction initiatives and lower losses on extinguishment of debt.
+Added: Total non-operating expense was $1.3 billion higher than 2019, primarily due to higher mark-to-market losses on certain of our equity investments and higher interest expense as a result of our increased debt balances due to the financing arrangements entered into during 2020.
+Added: During 2022, operating activities provided cash flows of $6.4 billion, primarily on improving ticket sales, and incurred approximately $6.9 billion of net investing cash outflows, primarily for $6.4 billion of capital expenditures.
+Added: After adjusting for strategic investments and certain other activities, these results generated $244 million of free cash flow (a non-GAAP financial measure) in 2022.
+Added: Also, during 2022 we had cash outflows of approximately $4.5 billion related to repayments of our debt and finance leases, including approximately $2.3 billion for early repayments and the remainder from scheduled maturities.
+Added: Our cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities ("liquidity") at December 31, 2022 was $9.4 billion.
+Added: The non-GAAP financial measures operating income, adjusted, operating expense, adjusted, CASM-Ex and free cash flow used above are defined and reconciled in "Supplemental Information" below.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 36
+Added: | 2022 10-K 34
MD&A - Results of Operations
4 unchanged sentences
Ticket - Main cabin $ 20,396 $ 11,393 $ 9,003 79 %
−Removed: Ticket - Business cabin and premium products 7,713 4,294 3,419 80 %
+Added: Ticket - Premium products 15,230 7,946 7,284 92 %
Loyalty travel awards 2,898 1,786 1,112 62 %
11 unchanged sentences
Operating Revenue
−Removed: Our operating revenue increased $12.8 billion, or 75%, compared to the year ended December 31, 2020 due primarily to increased demand in 2021 as a result of the continued recovery from the COVID-19 pandemic.
−Removed: The increase in operating revenue, on a 45% increase in capacity, generated a 21% increase in total revenue per available seat mile ("TRASM") and a 16% increase in TRASM, adjusted (a non-GAAP financial measure) compared to 2020.
+Added: Our operating revenue increased $20.7 billion, or 69%, compared to the year ended December 31, 2021 due primarily to increased demand in 2022 as a result of the continued recovery from the COVID-19 pandemic and higher third-party refinery sales.
+Added: The increase in operating revenue, on a 20% increase in system capacity, generated a 41% increase in total revenue per available seat mile ("TRASM") and a 43% increase in TRASM, adjusted (a non-GAAP financial measure) compared to 2021.
See "Refinery Segment" below for additional details on the refinery's operations, including third-party refinery sales recorded in other revenue, during each period.
−Removed: We have historically generated cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft.
−Removed: In 2020, following the onset of the COVID-19 pandemic, reduced industry cargo capacity drove a significant increase in our cargo yield, and we also generated cargo revenue through the operation of cargo-only charter flights (i.e., using aircraft in our fleet not being utilized for passenger travel to fly cargo internationally).
−Removed: This trend continued in 2021, and we would expect capacity constraints and elevated market yields to continue through 2022 while the industry rebuilds international networks to pre-pandemic levels.
−Removed: Compared to 2020, we flew additional cargo volume as international networks returned, coupled with a continued increase in yield driven by a combination of constrained capacity and increased demand.
Passenger Revenue by Geographic Region
5 unchanged sentences
Atlantic 6,093 243 % 194 % 110 % 17 % 63 % 23 pts
−Removed: Latin America 1,873 68 % 82 % 79 % (8) % (6) % 1 pt
+Added: Latin America 2,889 54 % 24 % (5) % 25 % 62 % 19 pts
Pacific 1,039 159 % 211 % 8 % (17) % 139 % 44 pts
Total passenger revenue $ 40,218 79 % 45 % 20 % 23 % 49 % 15 pts
+Added: Domestic passenger unit revenue ("PRASM") for the year ended December 31, 2022 increased 48% compared to the year ended December 31, 2021 as a result of stronger demand and higher levels of traffic due to the ongoing recovery from the COVID-19 pandemic throughout 2022.
+Added: Domestic revenue in 2022 was above 2021 levels and near pre-pandemic levels, even though capacity was not fully restored, as consumers continue to return to travel.
+Added: We believe spending patterns for services are returning to historical levels compared to spending on goods.
+Added: We also experienced higher growth in premium product revenue (including Delta One, First Class, Delta Premium Select and Delta Comfort+) compared to main cabin with the delivery of new aircraft that include more premium seat capacity and an increase in premium product yield compared to main cabin, as we see more consumers choosing these premium offerings.
+Added: In 2023, we expect domestic capacity to be restored to pre-pandemic levels through growth in our core hubs in Atlanta, Minneapolis-St.
+Added: Paul, Detroit and Salt Lake City.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 37
+Added: | 2022 10-K 35
MD&A - Results of Operations
−Removed: Domestic passenger unit revenue ("PRASM") for the year ended December 31, 2021 increased 27% with capacity up 45% compared to the year ended December 31, 2020 as a result of the low levels of capacity and demand during 2020 due to the COVID-19 pandemic and the ongoing recovery throughout 2021.
−Removed: Beginning in the latter half of the March 2021 quarter, we began to see bookings, primarily leisure, improve from the low levels of 2020.
−Removed: Throughout 2021, demand continued to improve, with some variability in periods of rising COVID-19 cases attributable to variants of the virus.
−Removed: We remain optimistic about the ultimate recovery of business travel which has been recovering at a slower pace than consumer.
−Removed: We expect this demand to continue to be led by small- and medium-sized businesses and accelerate in the first half of 2022 as more corporate offices reopen;
−Removed: we are, however, unable to fully predict the pace of that recovery.
International
−Removed: International passenger revenue for the year ended December 31, 2021 increased 43% with capacity up 45% compared to the year ended December 31, 2020 as travel to certain destinations has resumed or increased.
−Removed: Additionally, while some countries have removed or eased travel restrictions, many countries maintained or reinstituted international testing requirements and travel restrictions, which have restrained demand in the short term but are expected to support the long-term recovery of international air travel.
+Added: International passenger revenue for the year ended December 31, 2022 increased 147% with capacity up 47% compared to the year ended December 31, 2021, with the Atlantic region experiencing the most significant improvement, as travel to many European destinations resumed or increased.
In November 2021, travel restrictions on most fully vaccinated foreign visitors to the United States were lifted.
1 unchanged sentence
by many foreign nationals possible for the first time in 18 months.
−Removed: Despite this policy change, we expect the significantly lower international demand environment to continue through at least the beginning of 2022, with the recovery pace continuing to trail domestic travel.
−Removed: The Atlantic and Pacific regions continue to be the most impacted by the restrictions described above.
−Removed: However, during 2021, we began, resumed or increased our service to certain countries in the Atlantic region based on their lifting or easing of travel restrictions.
−Removed: Travel in the Pacific region is largely limited to essential travel, and we expect only small demand improvements until government restrictions ease with minimal improvement until at least the second half of 2022.
−Removed: We will continue to be agile in the restoration of our international network based on changes in government restrictions and consumer demand.
−Removed: The Latin America region has shown the most recovery of the international regions, with continued demand improvement for leisure destinations in the Caribbean, Mexico and Central America.
−Removed: We expect this trend to continue through 2022 with the recovery in the Atlantic and Pacific regions lagging behind Latin America.
+Added: Further, in June 2022, the United States lifted its testing requirement for international travel.
+Added: Both of these changes have had a positive impact on international demand.
+Added: Most countries in our network have removed or eased travel restrictions, resulting in revenue improvement across all international regions.
+Added: The Atlantic region showed strong demand improvement during 2022 as western European countries removed or eased travel restrictions in the first half of 2022.
+Added: Revenue in this region was near pre-pandemic levels as travelers continue to show increased desire for transatlantic travel.
+Added: This has been led by demand for leisure destinations such as Italy, Spain and Greece and improving business demand.
+Added: Latin America region revenue was also near pre-pandemic levels during 2022, due to continued strong demand for leisure destinations in Mexico, the Caribbean and Central America.
+Added: Also, in 2022, final regulatory approval was granted for our trans-American joint venture agreement with LATAM.
+Added: This agreement combines our highly complementary route networks between North and South America, with the goal of providing customers with a seamless travel experience and industry-leading connectivity.
+Added: Beginning in the December 2022 quarter, we and LATAM began adding capacity on certain Latin America routes and introduced one new route between Los Angeles and São Paulo, Brazil.
+Added: The Pacific region continues to be the most impacted by travel restrictions, although we experienced demand improvement during 2022 following South Korea and Australia reopening to international travelers and the recent easing of travel restrictions to Japan.
+Added: Throughout 2022, China still maintained international testing requirements and travel restrictions, which continued to restrain demand in the Pacific region.
+Added: We expect the increasing revenue trends in all international regions to continue into 2023 as demand for international locations continues to be strong and countries continue to reopen and remove or ease remaining travel restrictions.
+Added: For example, in January 2023 China ended most of its pandemic-related travel restrictions and we expect to increase capacity based on demand during 2023.
Ticket Validity Flexibility
−Removed: In order to provide our customers more flexibility and time to plan or rebook their travel, we made the following changes to our ticket and travel credit expiration dates.
−Removed: In the March 2021 quarter, we announced the extension of the validity of all passenger tickets and travel credits purchased or expiring in 2021 to December 31, 2022, which allowed for tickets to be rebooked through December 31, 2022 for travel through 2023.
−Removed: In January 2022, we announced that all existing travel credit holders will have until December 31, 2023 to rebook their ticket for travel throughout 2024.
−Removed: Additionally, all Delta customers with upcoming 2022 travel or who purchase a ticket in 2022 will also have the flexibility to rebook their ticket through December 31, 2023, and travel throughout 2024.
−Removed: During 2020, with the exception of Basic Economy, we eliminated change fees for all tickets originating in North America and waived change fees for tickets originating outside of North America.
−Removed: We also implemented a temporary waiver that allowed Basic Economy tickets with travel for 2021, which are normally non-changeable, to be changed without paying a fee regardless of origin or destination.
−Removed: Starting January 1, 2022, Basic Economy tickets may be cancelled for a fee to receive a partial ticket credit.
−Removed: We do not expect the updated change fee policies to materially affect our revenue in future periods;
−Removed: however, our estimates of revenue that will be recognized for tickets that expire unused ("ticket breakage") may vary in future periods due to the extension of the validity of passenger tickets and travel credits.
+Added: In order to provide our customers more flexibility and time to plan their travel, travel credit holders as of January 2022 and customers who purchased a ticket in 2022 are able to rebook their ticket through December 31, 2023 for travel throughout 2024.
+Added: Delta has eliminated change fees for tickets originating in the United States, Canada, Europe and Africa (excluding Basic Economy tickets).
+Added: A change fee waiver continues to apply for travel originating in Asia and the Pacific.
+Added: Starting in 2022, Basic Economy tickets may be cancelled for a charge to receive a partial ticket credit.
+Added: We estimate the value of ticket breakage and recognize revenue at the scheduled flight date.
+Added: Our ticket breakage estimates are primarily based on historical experience, ticket contract terms and customers’ travel behavior.
+Added: Given the impact of the COVID-19 pandemic on customer behavior and changes made in ticket validity terms, as well as the elimination of change fees for most tickets, our estimates of revenue that will be recognized from the air traffic liability for unused tickets may vary in future periods.
+Added: See Note 2 of the Notes to the Consolidated Financial Statements for additional information about passenger ticket sales.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 38
+Added: | 2022 10-K 36
MD&A - Results of Operations
8 unchanged sentences
This represents refinery sales to third parties.
−Removed: These sales, which are at or near cost, increased $2.1 billion compared to 2020.
−Removed: The increase in third-party refinery sales resulted from the refinery's shift to producing and selling more non-jet fuel products due to the lower level of demand for jet fuel compared to historical levels, in addition to higher pricing during 2021.
+Added: These sales increased $1.7 billion compared to 2021.
+Added: The increase in third-party refinery sales resulted from higher pricing and production during 2022 compared to 2021.
See "Refinery Segment" below for additional details on the refinery's operations, including third-party refinery sales recorded in other revenue, during each period.
Loyalty Program.
−Removed: Loyalty program revenues relate to brand usage by third parties and other performance obligations embedded in miles sold, including redemption of miles for non-travel awards.
+Added: This relates to brand usage by third parties and other performance obligations embedded in miles sold, including redemption of miles for non-travel awards.
These revenues are mainly driven by customer spend on American Express cards and new cardholder acquisitions.
−Removed: As co-brand card spend and card acquisitions continue to be strong, revenues from our relationship with American Express increased in the year ended December 31, 2021 compared to 2020.
+Added: On continued strength in co-brand card spend and card acquisitions, revenues from our relationship with American Express increased in 2022 compared to 2021.
Ancillary Businesses.
−Removed: Ancillary businesses includes aircraft maintenance services we provide to third parties and our vacation wholesale operations.
+Added: This includes aircraft maintenance services we provide to third parties and our vacation wholesale operations.
Miscellaneous.
−Removed: Miscellaneous revenue is primarily composed of lounge access, including access provided to certain American Express cardholders, and codeshare revenues.
+Added: This is primarily composed of lounge access, including access provided to certain American Express cardholders, and codeshare revenues.
Compared to 2021, these transactions have increased due to the ongoing recovery of our business that continued to materialize in 2022.
1 unchanged sentence
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 39
+Added: | 2022 10-K 37
MD&A - Results of Operations
12 unchanged sentences
Passenger service 1,453 756 697 92 %
+Added: Profit sharing 563 108 455 421 %
Aircraft rent 508 430 78 18 %
Restructuring charges (124) (19) (105) 553 %
−Removed: Profit sharing 108 — 108 NM
Government grant recognition — (4,512) 4,512 (100) %
1 unchanged sentence
Total operating expense $ 46,921 $ 28,013 $ 18,908 67 %
−Removed: In response to the reduced demand and related reduction in revenue following the onset of the COVID-19 pandemic in early 2020, we quickly reduced capacity to more closely align with demand, implemented cost saving initiatives related to our fleet and operations, offered employees voluntary separation programs and delayed or eliminated nearly all discretionary spending.
−Removed: During 2021, distribution of vaccines continued, travel restrictions and advisories eased and customer confidence continued to grow despite the negative impact of COVID-19 virus variants in the second half of 2021.
−Removed: As a result, we saw revenue and capacity return and related operating expense line items increase.
−Removed: The continued restoration of our operations was the primary driver for the increases in contracted services, landing fees and other rents, passenger commissions and other selling expenses, passenger service and other expense.
+Added: During 2021, travel demand began to recover from the low levels experienced during the height of the COVID-19 pandemic.
+Added: This recovery in demand continued to accelerate during 2022.
+Added: As a result, operating expenses increased in conjunction with the increases in demand and capacity discussed above.
+Added: The continued restoration of our operations was the primary driver for the increases in most operating expense line items, particularly contracted services, aircraft maintenance materials and outside repairs, passenger commissions and other selling expenses and passenger service.
Other year-over-year fluctuations are discussed below.
Salaries and Related Costs.
−Removed: In the second half of 2020, approximately 18,000 employees elected to participate in voluntary separation programs, which initially reduced our workforce by approximately 20%, though some of those positions have subsequently been filled.
−Removed: Since the beginning of 2021, we have hired approximately 11,000 employees in certain areas, including flight operations, airport customer service and reservations and customer care, in order to support our operations as demand and capacity return.
−Removed: Beginning in March 2020 and continuing through December 2020, we reduced salaries by 100% for our CEO and 50% for our officers.
−Removed: In addition, we reduced work hours by 25% for all other management and most front-line employee work groups.
−Removed: On January 1, 2021, employees were restored to full work hours, officer salaries were restored and during 2021 we recalled approximately 1,700 pilots from inactive status back to active service.
−Removed: Additionally, we offered voluntary unpaid leaves of absence for periods ranging from 30 days up to 12 months and approximately 50,000 and 20,000 of our employees elected to take a leave of absence at various times throughout 2020 and 2021, respectively.
−Removed: These actions resulted in higher salaries and related costs in 2021 compared to 2020.
+Added: We hired approximately 25,000 employees during 2022 principally in flight operations, in-flight service, reservations and customer care, TechOps and airport customer service, in order to support our operations as demand and capacity returned.
+Added: These hiring actions and a 4% base pay increase effective May 1, 2022 for eligible employees resulted in the increase in salaries and related costs in 2022 compared to 2021.
+Added: The increase also results from the ending of the voluntary unpaid leave of absence program we offered in response to the COVID-19 pandemic during 2021.
+Added: During 2022, we no longer offered these leaves of absence as the program terminated in September 2021.
+Added: In early 2023, we announced a 5% base pay increase for eligible employees effective April 1, 2023.
+Added: Delta and ALPA reached an Agreement in Principle on a new collective bargaining agreement in December 2022.
+Added: In January 2023, a tentative agreement was ratified by ALPA’s Delta Master Executive Council ( " MEC " ) and is subject to ratification by Delta’s pilots through a vote that is scheduled to close on March 1, 2023.
+Added: In addition to various work rule changes and an 18% pay rate increase in 2023, the tentative agreement includes a provision for a one-time payment of approximately $700 million upon pilot ratification.
+Added: As voting on the tentative agreement has not closed and there is significant uncertainty about the outcome of this process, we have not accrued for this one-time payment as of December 31, 2022.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 40
+Added: | 2022 10-K 38
MD&A - Results of Operations
Aircraft Fuel and Related Taxes.
−Removed: Fuel expense increased $2.5 billion compared to 2020 primarily due to a 44% increase in consumption on a 45% increase in capacity, and a 31% increase in the market price of jet fuel.
−Removed: Additionally, during 2021, we purchased and retired $95 million of carbon offsets, of which $30 million relates to 13 million metric tons of carbon emissions generated by our airline segment from March 1 to December 31, 2020 as well as $65 million which relates to a portion of 2021 carbon emissions generated by our airline segment.
+Added: Fuel expense increased $5.8 billion compared to 2021 primarily due to a 78% increase in the market price of jet fuel and a 23% increase in consumption as capacity was restored.
+Added: Additionally, during 2022, we purchased and retired $116 million of carbon offsets which relate to a portion of our airline segment's 2021 and March 2022 quarter carbon emissions.
+Added: During 2021, we purchased and retired $95 million of carbon offsets, which related to a portion of our airline segment's 2020 and 2021 carbon emissions.
In the table below, these costs are shown in the carbon offset costs line item.
+Added: As we continue to work on accelerating our long-term, net-zero greenhouse gas emissions goal, our vision of the path forward will require multiple initiatives, centered on a long-term strategy of decarbonization;
+Added: we therefore expect substantially all of our investment going forward will be focused on solutions other than carbon offsets.
Fuel expense and average price per gallon
12 unchanged sentences
Ancillary businesses and refinery includes expenses associated with refinery sales to third parties, aircraft maintenance services we provide to third parties and our vacation wholesale operations.
−Removed: Increased expenses were primarily related to refinery sales to third parties, which are at or near cost and increased $2.1 billion compared to 2020.
−Removed: The increase compared to 2020 was driven by higher pricing during 2021, with lower production and demand for both jet and non-jet fuel products during 2020.
−Removed: The cost of aircraft maintenance services we provide to third parties increased compared to 2020 due to the increase in flights operated worldwide in 2021.
−Removed: Depreciation and Amortization.
−Removed: Depreciation and amortization decreased compared to 2020 primarily due to the aircraft that were retired or impaired during 2020.
−Removed: As we acquire new aircraft to provide an improved customer experience, greater fuel efficiency and thus reduced carbon emissions, better operating economics and more premium products, we expect depreciation expense to increase in future years.
+Added: Increased expenses were primarily related to refinery sales to third parties, which increased $1.7 billion compared to 2021.
+Added: The increase compared to 2021 was driven by higher pricing and production during 2022.
+Added: The cost of aircraft maintenance services we provide to third parties increased compared to 2021 due to the increase in flights and aircraft operated during 2022.
Regional Carrier Expense.
−Removed: Regional carrier expense increased compared to 2020 due to an increase in utilization as a result of the increased demand discussed above.
−Removed: Until 2021, we allocated certain costs (such as landing fees and other rents, salaries and related costs and contracted services) to regional carrier expense in our Consolidated Statements of Operations ("income statement") based on relevant statistics (such as passenger counts).
−Removed: Beginning in 2021 we ceased performing this allocation and have reclassified the costs presented in prior periods to align with this presentation.
−Removed: This reclassification better reflects the nature of, and how management views, these regional carrier related expenses.
−Removed: This allocation was approximately $900 million in 2020.
−Removed: The amounts in regional carrier expense under the current presentation represent the accrual of payments to our regional carriers under capacity purchase agreements, maintenance costs related to our regional fleet and the expenses of our wholly owned regional subsidiary, Endeavor Air, Inc.
−Removed: Aircraft Maintenance Materials and Outside Repairs.
−Removed: Maintenance expense increased compared to 2020 as we returned aircraft to service and to support our operational reliability.
−Removed: The increase compared to 2020 was particularly pronounced due to the significantly reduced capacity during 2020 and the large number of aircraft we had parked during that time.
−Removed: Aircraft Rent.
−Removed: Most aircraft operating lease expenses are recorded in aircraft rent and are contractually fixed.
−Removed: Therefore, the increase in aircraft rent was more muted than our other operating expense line items when compared to 2020.
+Added: Regional carrier expense increased compared to 2021 due to an increase in contract carrier rates and wages, while capacity was constrained due to a shortage of regional jet pilots.
Restructuring Charges.
During 2020, we recorded restructuring charges of $8.2 billion for items such as fleet impairments and voluntary early retirement and separation programs following strategic business decisions in response to the COVID-19 pandemic.
−Removed: In the year ended December 31, 2021, we recognized $19 million of adjustments to certain of those restructuring charges, representing changes in our estimates.
+Added: In the years ended December 31, 2022 and 2021, we recognized $124 million and $19 million, respectively, of adjustments to certain of those restructuring charges, representing changes in our estimates or the outcome of contract negotiations.
See Note 15 of the Notes to the Consolidated Financial Statements for additional information about the restructuring charges recorded in 2020.
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 41
−Removed: MD&A - Results of Operations
Profit Sharing.
−Removed: To recognize the extraordinary efforts of our employees through the pandemic, we will make a special profit-sharing payment to eligible employees in February 2022, based on the adjusted pre-tax profit earned during the second half of 2021.
+Added: Profit sharing increased by $455 million during 2022 due to higher profit during the year.
+Added: Our profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual profit, as defined by the terms of the program, and 20% of annual profit above $2.5 billion.
+Added: For the year ended December 31, 2021, we recorded a special profit sharing expense of $108 million, based on the adjusted pre-tax profit earned during the second half of the year, to recognize the extraordinary efforts of our employees through the pandemic.
Government Grant Recognition.
−Removed: During the year ended December 31, 2021, we received a total of $6.4 billion under the PSP2 and PSP3 agreements with the U.S.
+Added: During the year ended December 31, 2021, we received a total of $6.4 billion under PSP agreements with the U.S.
Department of the Treasury, which we were required to use exclusively for the payment of employee wages, salaries and benefits.
The support payments included grants totaling $4.5 billion that were recognized as contra-expense in 2021 over the period that the funds were used.
−Removed: The amount recognized in 2021 exceeded the amount recognized during 2020 due to the increase in grants received during the year.
−Removed: See Note 6 of the Notes to the Condensed Consolidated Financial Statements for additional information on PSP2 and PSP3.
+Added: Delta Air Lines, Inc.
+Added: | 2022 10-K 39
+Added: MD&A - Non-Operating Results
Non-Operating Results
2 unchanged sentences
Interest expense, net $ (1,029) $ (1,279) $ 250
−Removed: Impairments and equity method losses (337) (2,432) 2,095
+Added: Impairments and equity method results (20) (337) 317
Gain/(loss) on investments, net (783) 56 (839)
Loss on extinguishment of debt (100) (319) 219
−Removed: Pension and related benefit/(expense) 451 219 232
+Added: Pension and related benefit 292 451 (159)
Miscellaneous, net (107) (60) (47)
2 unchanged sentences
Interest expense, net includes interest expense and interest income.
−Removed: This increased as a result of the additional interest expense related to financing arrangements entered into during 2020.
−Removed: See Note 6 of the Notes to the Consolidated Financial Statements for additional information on recent financings and repayments.
−Removed: We have begun reducing the total amount of interest expense by pre-paying our debt in addition to periodic amortization payments and scheduled maturities.
−Removed: This began with early repayments made during the December 2020 quarter and continued with multiple early repayments during 2021 including the early repayment of our $1.5 billion secured term loan, approximately $450 million of various Enhanced Equipment Trust Certificates ("EETCs"), approximately $850 million of certain notes through a cash tender offer and $647 million of other secured certificates, unsecured notes and a portion of the SkyMiles Term Loan through repurchases on the open market.
+Added: This decreased as compared to 2021 as a result of our debt reduction initiatives during 2021 and 2022.
+Added: See Note 6 of the Notes to the Consolidated Financial Statements for additional information on our debt reduction initiatives.
+Added: We are reducing the total amount of interest expense by pre-paying our debt in addition to periodic amortization payments and scheduled maturities.
+Added: During 2021, we made payments of approximately $5.8 billion related to our debt and finance leases, which included approximately $3.8 billion for early repayments.
+Added: We have continued to pay down our debt during 2022 with $4.5 billion of payments on debt and finance lease obligations, including early repayment activities of $1.5 billion of certain notes through a cash tender offer in the September 2022 quarter and $778 million in principal for the early repurchase of various secured and unsecured notes through repurchases on the open market.
We will continue to seek opportunities to pre-pay our debt, in addition to periodic amortization payments and scheduled maturities, during 2023 and beyond.
−Removed: Impairments and equity method losses.
−Removed: Impairments and equity method losses in 2021 reflect our share of Virgin Atlantic's equity method losses.
−Removed: Impairments and equity method losses in 2020 reflected our share of LATAM and Grupo Aeroméxico's equity method results prior to their respective bankruptcy filings, our share of Virgin Atlantic's equity method results and the impairments reducing the basis of these investments to zero during the June 2020 quarter.
+Added: Impairments and equity method results.
+Added: Equity method results in 2022 consist of our share of Aeroméxico's net results and in 2021 reflected our share of Virgin Atlantic's net results.
See Note 4 of the Notes to the Consolidated Financial Statements for additional information on our equity investments.
2 unchanged sentences
Loss on extinguishment of debt.
−Removed: Loss on extinguishment of debt reflects the losses incurred in the early repayment of the notes, outstanding term loan and EETCs mentioned above.
+Added: Loss on extinguishment of debt reflects the losses incurred in the early repayment of debt referenced above.
See Note 6 of the Notes to the Consolidated Financial Statements for additional information on the early repayment of debt.
−Removed: Pension and related benefit/(expense).
−Removed: Pension and related benefit/(expense) reflects the net periodic benefit/(cost) of our pension and other postretirement and postemployment benefit plans.
−Removed: Based on our current level of funding, we have modified, and continue to evaluate, the asset allocation mix to reduce the investment risk of the portfolio.
−Removed: The lower risk profile of the portfolio is projected to result in a lower expected long-term rate of return on plan assets in 2022.
−Removed: We expect pension and related benefits to decline in 2022 compared to 2021.
+Added: Pension and related benefit.
+Added: Pension and related benefit reflects the net periodic benefit/(cost) of our pension and other postretirement and postemployment benefit plans.
+Added: Based on our funded status as of December 31, 2021, we modified the strategic asset allocation mix in 2022 to reduce the investment risk of the portfolio.
+Added: Based on the portfolio's risk profile, we lowered the weighted average expected long-term rate of return on our defined benefit pension plan assets for 2022 net periodic benefit cost to 7.00%.
See Note 9 of the Notes to the Consolidated Financial Statements for additional information on our employee benefit plans.
Miscellaneous, net.
−Removed: Miscellaneous, net primarily includes foreign exchange gains/(losses) and charitable contributions.
−Removed: Miscellaneous, net in 2020 included the $240 million gain recognized as a result of the combination of Delta Private Jets with Wheels Up in January 2020.
+Added: Miscellaneous, net primarily includes charitable contributions and foreign exchange gains/(losses).
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 42
+Added: | 2022 10-K 40
MD&A - Income Taxes
Our effective tax rate for 2022 was 31%.
+Added: We expect our annual effective tax rate to be between 23% and 26% for 2023.
+Added: Our effective tax rate in 2022 was impacted by mark-to-market adjustments on our equity investments which are considered capital assets for tax purposes.
As of December 31, 2022 , w e had approximately $5.4 billion of U.S.
federal pre-tax net operating loss carryforwards, of which $1.5 billion was generated prior to 2018 and will not begin to expire until 2029.
−Removed: Under current tax law, the remaining amount has no expiration.
+Added: Under current tax law, the remaining net operating loss carryforwards do not expire.
+Added: The Inflation Reduction Act ("IRA") was enacted into law on August 16, 2022.
+Added: Included in the IRA was a provision to implement a 15% corporate alternative minimum tax on corporations whose average annual adjusted financial statement income during the most recently-completed three-year period exceeds $1.0 billion.
+Added: This provision is effective for tax years beginning after December 31, 2022.
+Added: We are in the process of evaluating the provisions of the IRA, but we do not currently believe the IRA will have a material impact on our reported results, cash flows or financial position.
For more information about our income taxes, see Note 11 of the Notes to the Consolidated Financial Statements.
2 unchanged sentences
Monroe has agreements in place to exchange the non-jet fuel products the refinery produces with third parties for jet fuel consumed in our airline operations.
−Removed: Historically, the jet fuel produced and procured through exchanging gasoline and diesel fuel produced by the refinery provided approximately 200,000 barrels per day, or approximately 75% of our pre-COVID-19 pandemic consumption, for use in our airline operations.
−Removed: The refinery’s production has also been altered by the dramatic change in economic conditions caused by the COVID-19 pandemic.
−Removed: During 2021, the refinery progressively increased operations, ending the year at near pre-pandemic levels.
+Added: The jet fuel produced and procured through exchanging gasoline and diesel fuel produced by the refinery provided approximately 200,000 barrels per day, or approximately 75% of our pre-COVID-19 pandemic consumption, for use in our airline operations.
Refinery segment financial information
6 unchanged sentences
Operating revenue $ 10,706 $ 6,054 77 %
−Removed: Operating loss $ (2) $ (216) (99) %
−Removed: Refinery segment impact on average price per fuel gallon $ — $ 0.11 (100) %
−Removed: Refinery revenues increased from $3.1 billion in 2020 to $6.1 billion in 2021, primarily driven by the increase in third-party refinery sales.
−Removed: The increase in third-party refinery sales resulted from the refinery's shift to producing and selling more non-jet fuel products due to the lower level of demand for jet fuel compared to historical levels, in addition to higher pricing during 2021.
−Removed: The refinery decreased its operating loss from $216 million in 2020 to $2 million in 2021 mainly due to the increased production and pricing, partially offset by higher Renewable Identification Numbers ("RINs") compliance costs discussed below.
−Removed: A refinery is subject to annual EPA requirements to blend renewable fuels into the gasoline and on-road diesel fuel it produces.
+Added: Operating income (loss) $ 777 $ (2) NM
+Added: Refinery segment impact on average price per fuel gallon $ (0.23) $ — NM
+Added: (1) Certain variances are labeled as not meaningful ("NM").
+Added: Refinery revenues increased from $6.1 billion in 2021 to $10.7 billion in 2022, primarily driven by the increase in third-party refinery sales and sales to the airline segment.
+Added: The increase in third-party refinery sales resulted from higher pricing and production during 2022 compared to 2021.
+Added: The refinery recorded an operating loss of $2 million in 2021 compared to operating income of $777 million in 2022 mainly due to the increased production and pricing, partially offset by higher Renewable Identification Numbers ("RINs") compliance costs discussed below.
+Added: A refinery is subject to annual Environmental Protection Agency ("EPA") requirements to blend renewable fuels into the gasoline and on-road diesel fuel it produces.
Alternatively, a refinery may purchase RINs from third parties in the secondary market.
The Monroe refinery purchases the majority of its RINs in the secondary market.
−Removed: Monroe incurred $422 million in RINs compliance costs during 2021, of which $98 million related to accrual rate increases on the prior year obligation, in addition to $172 million accrued in 2020.
−Removed: Observable RIN prices increased significantly through the first half of 2021, ending 2021 at nearly double the market price at the end of 2020.
−Removed: At December 31, 2021, we had a net fair value obligation of $497 million.
−Removed: Our obligation as of December 31, 2021 was calculated using the EPA's proposed Renewable Fuel Standard ("RFS") volume requirements for 2020 and 2021, which were issued in December 2021.
−Removed: The EPA has not finalized the compliance deadlines to retire our obligations for 2020 and 2021, but we expect those deadlines to be within one year of the effective date of the new RFS volume requirements.
+Added: Monroe incurred $576 million in RINs compliance costs during 2022, compared to $422 million incurred in 2021.
+Added: Observable RINs prices increased through the first half of 2022 and remained at these higher rates through the second half of the year.
+Added: At December 31, 2022, we had a net fair value obligation related to RINs of $226 million.
+Added: Our obligation as of December 31, 2022 was calculated using the U.S.
+Added: EPA Renewable Fuel Standard ("RFS") volume requirements, which were finalized in the June 2022 quarter.
+Added: During the December 2022 quarter, we retired our 2020 RINs assets to settle our 2020 obligations prior to the compliance deadline.
+Added: We expect to settle our 2021 and 2022 obligations in the first half of 2023.
For more information regarding the refinery's results, see Note 14 of the Notes to the Consolidated Financial Statements.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 43
+Added: | 2022 10-K 41
MD&A - Operating Statistics
22 unchanged sentences
(2) Non-GAAP financial measures are defined and reconciled to TRASM, CASM and average fuel price per gallon, respectively, in "Supplemental Information" below.
−Removed: (3) Includes the impact of fuel hedge activity, refinery segment results and carbon offset costs.
+Added: (3) Includes the impact of refinery segment results, carbon offset costs and fuel hedge activity.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 44
+Added: | 2022 10-K 42
MD&A - Financial Condition and Liquidity
Financial Condition and Liquidity
−Removed: As of December 31, 2021, we had $14.2 billion in cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities.
+Added: As of December 31, 2022, we had $9.4 billion in cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities ("liquidity").
We expect to meet our liquidity needs for the next twelve months with cash and cash equivalents, short-term investments, restricted cash equivalents and cash flows from operations.
We expect to meet our long-term liquidity needs with cash flows from operations and financing arrangements.
−Removed: We are continuing to evaluate the appropriate level of liquidity to maintain following the COVID-19 pandemic though, at least in the near term, we expect this level to be higher than the liquidity maintained prior to the pandemic.
−Removed: By 2024, we expect liquidity to be between $5 billion and $6 billion as we work to reduce our financial obligations and reinvest in the business.
Sources and Uses of Liquidity
Operating Activities
−Removed: Operating activities in 2021 provided $3.3 billion, including funds received from the government support programs described in "Financing Activities" below, compared to using $3.8 billion in 2020.
+Added: Operating activities in 2022 provided $6.4 billion of cash flow compared to $3.3 billion in 2021.
+Added: Operating activities in 2021 included $4.5 billion in funds received from payroll support program grants.
We expect to continue generating positive cash flows from operations during 2023.
4 unchanged sentences
The air traffic liability typically increases during the winter and spring months as advanced ticket sales grow prior to the summer peak travel season and decreases during the summer and fall months.
−Removed: However, the reduction in demand for air travel due to the COVID-19 pandemic resulted in a lower level of advance bookings and the associated cash received than we have historically experienced which has impacted the typical seasonal trend of air traffic liability since March 2020.
−Removed: Domestic demand has improved since the latter half of the March 2021 quarter as consumers have regained confidence to travel and increased ticket purchases for travel further in advance.
−Removed: We experienced small moderations in demand growth during parts of the second half of 2021 due to a rise in COVID-19 cases attributable to COVID-19 virus variants.
−Removed: Our air traffic liability remains above historical levels with travel credits representing approximately 45% of the balance as of December 31, 2021.
−Removed: This compares to approximately 65% as of December 31, 2020 and approximately 20% prior to the onset of the COVID-19 pandemic.
+Added: Beginning with the COVID-19 pandemic in the March 2020 quarter through 2021, reduced demand for air travel resulted in a lower level of advance bookings and the associated cash received than we had historically experienced, which had been impacting the typical seasonal trend of air traffic liability.
+Added: However, demand improved during 2022 as consumers regained confidence to travel and increased ticket purchases for travel further in advance.
+Added: As a result, air traffic liability began returning to the usual seasonal trend in 2022.
Fuel expense represented approximately 24% of our total operating expense during 2022.
The market price for jet fuel is volatile, which can impact the comparability of our periodic cash flows from operations.
−Removed: The average fuel price per gallon increased in 2021.
+Added: The average fuel price per gallon increased substantially in 2022.
+Added: While prices have recently moderated, we expect elevated jet fuel prices in comparison to historical levels to continue during the beginning of 2023 due to current market conditions, further exacerbated by geopolitical events.
As capacity and demand increased throughout the year, fuel consumption was higher in 2022 than 2021 as well.
−Removed: We expect that fuel consumption will continue to increase throughout 2022 as we return closer to pre-pandemic levels of demand for air travel, partially offset by increases in fuel efficiency of our fleet.
+Added: We expect that fuel consumption will continue to increase throughout 2023 as we return to pre-pandemic levels of capacity, partially offset by increases in the fuel efficiency of our fleet.
We expect our commitment to environmental sustainability to depend on increased use of SAF, which is not presently available at scale or at prices competitive to jet fuel.
10 unchanged sentences
Assumptions include, among other things, the actual and projected market performance of assets, statutory requirements and demographic data for participants.
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 45
−Removed: MD&A - Financial Condition and Liquidity
In addition, we have employee benefit obligations relating primarily to projected future benefit payments from our unfunded postretirement and postemployment plans.
See Note 9 of the Notes to the Consolidated Financial Statements for more information on our employee benefit obligations.
+Added: Delta Air Lines, Inc.
+Added: | 2022 10-K 43
+Added: MD&A - Financial Condition and Liquidity
Voluntary Separation Programs.
In 2020, we recorded a $3.4 billion charge associated with voluntary early retirement and separation programs and other employee benefit charges.
−Removed: Approximately $575 million of this charge was disbursed in cash payments to participants during 2021 in addition to $720 million disbursed in 2020.
+Added: Approximately $440 million, $575 million and $720 million was disbursed in cash payments to participants in the voluntary programs during 2022, 2021 and 2020 respectively.
We anticipate that a total of approximately $300 million in cash payments will be made to participants in the voluntary separation programs in 2023 and the remaining payments in 2024 and beyond.
1 unchanged sentence
Our broad-based employee profit sharing program provides that, for each year in which we have an annual pre-tax profit, as defined by the terms of the program, we will pay a specified portion of that profit to employees.
−Removed: We did not have a profit sharing payment for 2020 based on the pre-tax loss incurred in that year.
−Removed: To recognize the extraordinary efforts of our employees through the pandemic, we will make a special profit-sharing payment to eligible employees in February 2022, based on the adjusted pre-tax profit earned during the second half of 2021.
−Removed: We will pay $108 million in profit sharing in February 2022.
−Removed: Government Support Programs.
−Removed: See "Financing Activities" below for discussion of the impact to our liquidity from the government support programs in 2020 and 2021.
−Removed: We included $4.5 billion and $3.9 billion of grants received in our operating cash flow for the years ended December 31, 2021 and 2020, respectively.
+Added: In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items.
+Added: We pay profit sharing annually in February.
+Added: To recognize the extraordinary efforts of our employees through the pandemic, we made a special profit-sharing payment of $108 million to eligible employees in February 2022, based on the adjusted pre-tax profit earned during the second half of 2021.
+Added: During the year ended December 31, 2022, we recorded $563 million in profit sharing expense based on 2022 pre-tax profit, which we will pay to employees in February 2023.
Contract Carrier Obligations.
1 unchanged sentence
These minimum amounts are based on the required minimum levels of flying by the regional carriers under the respective agreements and assumptions regarding the costs associated with such minimum levels of flying.
−Removed: As of December 31, 2021 the total of these minimum amounts was $11.7 billion, which range from approximately $1.5 billion to $1.6 billion on an annual basis over the next five years.
+Added: As of December 31, 2022 the total of these minimum amounts was $10.6 billion and are approximately $1.6 billion on an annual basis over the next five years.
See Note 10 of the Notes to the Consolidated Financial Statements for more information on our contract carrier obligations.
3 unchanged sentences
New York-JFK Airport Expansion.
−Removed: In 2015, we completed two phases of redevelopment at New York-JFK's Terminal 4 to facilitate convenient connections for our passengers and improve coordination with our SkyTeam alliance partners.
+Added: We are enhancing and expanding our facilities at Terminal 4 of JFK to strengthen our competitive position and offer a premium travel experience for customers in New York City.
Terminal 4 is operated by JFK International Air Terminal LLC ("IAT"), a private party, under its lease with the Port Authority of New York and New Jersey ("Port Authority").
−Removed: In December 2010, we entered into a 33-year agreement with IAT to sublease space in Terminal 4.
−Removed: Also, in 2010, the Port Authority issued approximately $800 million principal amount of special project bonds (the "Series 8 Bonds") to fund the majority of the project.
−Removed: In December 2020, the NYTDC issued approximately $611 million principal amount of special project bonds to refinance the outstanding balance of the Series 8 Bonds.
−Removed: During 2021, we signed an amendment to the Sublease for additional gates at JFK, increasing our lease obligation by $1.2 billion.
−Removed: We continue to plan for further expansion of Terminal 4 and during 2021, the Port Authority approved modified project plans to renovate Terminal 4 and add 10 new gates enabling us to move out of Terminal 2 and consolidate our operations at Terminal 4.
−Removed: The project is estimated to cost approximately $1.5 billion, and we expect to amend the Sublease in the March 2022 quarter.
−Removed: Construction started in late 2021 with the project estimated to be complete by the end of 2023.
+Added: We have a long-term agreement with IAT to sublease space in Terminal 4 through 2043 ("Sublease").
+Added: In 2021, the Port Authority approved plans to renovate and expand Terminal 4 in order to facilitate Delta's relocation from Terminal 2 and consolidation of its operations into Terminal 4.
+Added: The project will add 10 new gates and other complementary facilities, including an additional Delta Sky Club and a new Delta One lounge.
+Added: The project is estimated to cost approximately $1.6 billion and will be funded primarily with bonds issued in 2022 by the New York Transportation Development Corporation ("NYTDC") for which our landlord, IAT, is the obligor.
+Added: The majority of project costs are being used to expand or modify Delta's leased premises.
+Added: Construction started in late 2021 and Delta's portion of the project is estimated to be complete by early 2024.
+Added: In 2022, we amended our Sublease to provide for the expansion project, including the adjustment of our subleased space and rentals.
+Added: We have recognized a right-of-use ("ROU") asset and lease liability representing the fixed component of the lease payments for this facility and as the majority of the project either expands or modifies Delta’s leased premises, our lease liability will increase upon completion.
+Added: As of December 31, 2022, our lease liability related to this Sublease was $2.3 billion.
+Added: See Note 7 of the Notes to the Consolidated Financial Statements for more information on our ROU assets and lease liabilities.
Other Obligations.
2 unchanged sentences
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 46
+Added: | 2022 10-K 44
MD&A - Financial Condition and Liquidity
1 unchanged sentence
Short-Term Investments.
−Removed: In 2021 we redeemed a net of $2.4 billion in short-term investments.
−Removed: See Note 3 of the Notes to the Consolidated Financial Statements for further information on these investments.
+Added: In 2022 we redeemed a net of $100 million in short-term investments.
+Added: See Note 1 and Note 3 of the Notes to the Consolidated Financial Statements for further information on these investments.
Capital Expenditures.
2 unchanged sentences
We have committed to future aircraft purchases and have obtained, but are under no obligation to use, long-term financing commitments for a substantial portion of the purchase price of the aircraft.
−Removed: Excluding the New York-LaGuardia airport project discussed below, our expected 2022 capital expenditures of approximately $6.0 billion, which may vary depending on financing decisions, will be primarily for aircraft, including deliveries and advance deposit payments, as well as fleet modifications and technology enhancements.
+Added: Excluding the New York-LaGuardia airport project discussed below, our expected 2023 capital spend of approximately $5.5 billion, which may vary depending on financing decisions, will be primarily for aircraft, including deliveries and advance deposit payments, as well as fleet modifications and technology enhancements.
As described in Part I, Item 1.
5 unchanged sentences
The facility will also offer direct access between the parking garage and terminal and improved roadways and drop-off/pick-up areas.
−Removed: The design of the new terminal will integrate sustainable technologies and improvements in energy efficiency.
Construction is underway and is being phased to limit passenger inconvenience.
Due to an acceleration effort that commenced in 2020, completion is expected by 2025.
+Added: In 2019, we opened Concourse G, the first of four new concourses, housing seven of the 37 new gates.
+Added: In 2022, we achieved a significant milestone by opening the headhouse (including the Delta Sky Club), the terminal roadways and Concourse E - the second of four new concourses to be built.
+Added: Additionally, we opened four of 12 planned new gates on Concourse F.
In connection with the redevelopment, during 2017, we entered into an amended and restated terminal lease with the Port Authority with a term through 2050.
Pursuant to the lease agreement, as amended to date, we will (1) fund (through debt issuance and existing cash) and undertake the design, management and construction of the terminal and certain off-premises supporting facilities, (2) receive a Port Authority contribution of approximately $500 million to facilitate construction of the terminal and other supporting infrastructure, (3) be responsible for all operations and maintenance during the term of the lease and (4) have preferential rights to all gates in the terminal subject to Port Authority requirements with respect to accommodation of designated carriers.
+Added: The project is expected to cost $4.3 billion.
We currently expect our net project cost to be approximately $3.8 billion and we bear the risks of project construction, including any potential cost over-runs.
−Removed: Using funding primarily provided by existing financing arrangements, we spent approximately $950 million, which is primarily reflected in investing activities in our cash flows statement, during 2021, bringing the total amount spent on the project to date to approximately $2.5 billion.
−Removed: We expect to spend approximately $750 million during 2022, of which a majority will be paid using cash restricted for airport construction.
−Removed: See Note 6 of the Notes to the Consolidated Financial Statements for additional information on the debt related to this redevelopment project, the New York Transportation Development Corporation ("NYTDC") Special Facilities Revenue Bonds, Series 2018 and NYTDC Special Facilities Revenue Bonds, Series 2020.
−Removed: In 2019, we opened Concourse G, the first of four new concourses, housing seven of the 37 new gates.
−Removed: Not only did the new Concourse G provide the first direct impact to the Delta passenger experience, it also represented the first major phasing milestone.
−Removed: The next major milestone will be the opening of the headhouse and Concourse E, which is scheduled for the second quarter of 2022.
+Added: We entered into loan agreements to fund a portion of the construction, which are recorded on our Consolidated Balance Sheets ("balance sheets") as debt with the proceeds reflected as restricted cash.
+Added: Using funding primarily provided by these arrangements, we spent approximately $650 million, $950 million and $600 million during 2022, 2021 and 2020, respectively, bringing the total amount spent on the project to date to approximately $3.2 billion.
+Added: We expect to spend approximately $500 million during 2023.
Los Angeles International Airport ("LAX") Construction.
−Removed: We executed a modified lease agreement during 2016 with the City of Los Angeles (the "City"), which owns and operates LAX, and announced plans to modernize, upgrade and provide post-security connection to Terminals 2 and 3.
−Removed: Construction is underway, which includes a new centralized ticketing and arrival hall, a new security checkpoint, core infrastructure to support the City's planned airport people mover, ramp improvements and a post-security connector to the north side of the Tom Bradley International Terminal.
−Removed: Given reduced passenger volumes resulting from the COVID-19 pandemic, we accelerated the construction schedule for this project in 2020.
−Removed: Additionally, in 2020, we enhanced the project’s scope to include a more customer-friendly design of Terminal 3, an expanded Delta Sky Club and baggage system upgrades designed to increase the terminals’ operational efficiency going forward.
−Removed: Construction is expected to be completed in 2023.
+Added: As part of the terminal redevelopment project at LAX, we are modernizing, upgrading, and providing post-security connection to Terminals 2 and 3.
+Added: We announced this project and executed a modified lease agreement during 2016 with the City of Los Angeles (the "City"), which owns and operates LAX.
+Added: This project includes a new centralized ticketing and arrival hall, a new security checkpoint, core infrastructure to support the City's planned airport people mover, ramp improvements and a post-security connector to the north side of the Tom Bradley International Terminal.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 47
+Added: | 2022 10-K 45
MD&A - Financial Condition and Liquidity
1 unchanged sentence
A substantial majority of the project costs are being funded through the Regional Airports Improvement Corporation ("RAIC"), a California public benefit corporation, using a revolving credit facility provided by a group of lenders.
−Removed: The credit facility was executed in 2017 and amended in 2020, and we have guaranteed the obligations of the RAIC under the credit facility.
−Removed: The revolving credit facility agreement was amended again in January 2022, increasing the revolver capacity from $800 million to $1.1 billion.
+Added: The credit facility was executed in 2017 and we have guaranteed the obligations of the RAIC under the credit facility.
+Added: The revolving credit facility agreement was most recently amended in January 2023, decreasing the revolver capacity from $800 million to $700 million.
Loans made under the credit facility are being repaid with the proceeds from the City’s purchase of completed project assets.
2 unchanged sentences
We currently expect our net project costs to be approximately $600 million, of which approximately $350 million has been reflected as investing activities in our cash flows statement since the project started in 2017.
−Removed: In 2021, $487 million was spent on this project, with $450 million paid by the credit facility and $37 million paid directly by Delta.
−Removed: Approximately $500 million is expected to be spent on the project during 2022, with $325 million to be paid by the credit facility and $175 million to be paid directly by Delta.
+Added: Given reduced passenger volumes resulting from the COVID-19 pandemic, we accelerated the construction schedule for this project in 2020.
+Added: Additionally, we enhanced the project’s scope to include a more customer-friendly design of Terminal 3, an expanded Delta Sky Club and baggage system upgrades designed to increase the terminals’ operational efficiency going forward.
+Added: In 2022, we opened a new consolidated headhouse for both terminals, which includes ticketing, security, baggage claim and a new Delta Sky Club lounge and have a total of 11 of 14 planned new gates now open in Terminal 3.
+Added: Construction is expected to be completed in 2023.
Equity Investments.
−Removed: To support our international presence, we are investing in Virgin Atlantic, Grupo Aeroméxico and LATAM as each carrier emerges from restructuring or recapitalization processes.
−Removed: After investing approximately $630 million in these carriers during 2021, we expect to invest another approximately $600 million during 2022 for a total combined investment of new capital in these carriers of approximately $1.2 billion.
−Removed: Upon completion of their respective processes, we expect to receive an approximately 20% equity stake in Grupo Aeroméxico and an approximately 10% equity stake in LATAM, while maintaining our 49% equity stake in Virgin Atlantic.
+Added: To support our international presence, during 2022 we invested an aggregate amount of $757 million in Grupo Aeroméxico and LATAM as each carrier emerged from restructuring processes.
+Added: Upon completion of their respective processes, we received a 20% equity stake in Grupo Aeroméxico and a 10% equity stake in LATAM.
See Note 4 of the Notes to the Consolidated Financial Statements for additional information on our equity investments
1 unchanged sentence
Debt and Finance Leases.
−Removed: See Note 6 of the Notes to the Consolidated Financial Statements for additional information on recent financings and repayments.
−Removed: In 2021, we had cash outflows of approximately $5.8 billion related to repayments of our debt and finance leases, including approximately $3.8 billion for the early repayment of the term loan secured by certain of our slots, gates and routes, various EETCs, certain notes through a cash tender offer and other various unsecured notes, secured certificates and SkyMiles term loan.
+Added: In 2022, we had cash outflows of approximately $4.5 billion related to repayments of our debt and finance leases, including approximately $2.3 billion for the early repayment of certain notes through a cash tender offer and other various secured and unsecured notes.
We will continue to seek opportunities to pre-pay our debt, in addition to periodic amortization payments and scheduled maturities, during 2023 and beyond.
+Added: See Note 6 of the Notes to the Consolidated Financial Statements for additional information on recent repayment activity.
The principal amount of our debt and finance leases was $23.2 billion at December 31, 2022.
5 unchanged sentences
In addition to payment of scheduled debt maturities, we expect to continue paying down our debt in 2023, and therefore reduce our future interest obligations.
−Removed: Our current ratings from the three major credit rating agencies are summarized in the table below:
−Removed: Credit agency ratings information
−Removed: Rating Agency Current Rating Outlook
−Removed: Fitch BB+ Negative
−Removed: Moody's Baa3 Stable
−Removed: Standard & Poor's BB Stable
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 48
−Removed: MD&A - Financial Condition and Liquidity
Finance Lease Obligations.
3 unchanged sentences
As of December 31, 2022 we had approximately $2.9 billion undrawn and available under our revolving credit facilities.
−Removed: In addition, we had $300 million outstanding letters of credit as of December 31, 2021 that did not affect the availability under our revolvers.
+Added: In addition, we had $400 million of outstanding letters of credit as of December 31, 2022 that did not affect the availability under our revolvers.
We were in compliance with the covenants in our debt agreements at December 31, 2022.
1 unchanged sentence
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 49
+Added: | 2022 10-K 46
MD&A - Critical Accounting Estimates
Critical Accounting Estimates
−Removed: Our critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our consolidated results of operations or financial condition.
+Added: Our critical accounting estimates are those estimates made in accordance with generally accepted accounting principles in the U.S.
+Added: ("GAAP") that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our consolidated results of operations or financial condition.
Accordingly, the actual results may differ materially from these estimates.
14 unchanged sentences
We use statistical models to estimate mileage breakage based on historical redemption patterns.
−Removed: A change in assumptions to the redemption activity for miles or the estimated fair value of miles expected to be redeemed could have a material impact on our revenue in the year in which the change occurs and in future years.
+Added: A change in assumptions regarding the redemption activity for miles or the estimated fair value of miles expected to be redeemed could have a material impact on our revenue in the year in which the change occurs and in future years.
We recognize mileage breakage proportionally during the period in which the remaining miles are actually redeemed.
At December 31, 2022, the aggregate deferred revenue balance associated with the SkyMiles program was $7.9 billion.
−Removed: A hypothetical 10% change in the number of outstanding miles estimated to be redeemed would result in an impact of approximately $140 million on total operating revenue recognized for the year ended December 31, 2021.
+Added: A hypothetical 10% change in the number of outstanding miles estimated to be redeemed would result in an impact of less than 1% of total operating revenue recognized for the year ended December 31, 2022.
We defer revenue for the miles when earned and recognize loyalty travel awards in passenger revenue as the miles are redeemed and transportation is provided.
We record the air transportation portion of the passenger ticket sales in air traffic liability and recognize passenger revenue when we provide transportation or if the ticket goes unused.
−Removed: A hypothetical 10% increase in our estimate of the ETV of a mile would have decreased total operating revenue by approximately $60 million for the year ended December 31, 2021, as a result of an increase in the amount of revenue deferred associated with the miles earned.
+Added: A hypothetical 10% increase in our estimate of the ETV of a mile would have decreased total operating revenue by less than 1% for the year ended December 31, 2022, as a result of an increase in the amount of revenue deferred associated with the miles earned.
Sale of Miles to Participating Companies.
9 unchanged sentences
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 50
+Added: | 2022 10-K 47
MD&A - Critical Accounting Estimates
8 unchanged sentences
however, the majority of new miles have historically been redeemed within two years of being earned.
−Removed: The loyalty program deferred revenue classified as a current liability represents our current estimate of revenue expected to be recognized in the next twelve months based on projected redemptions, while the balance classified as a noncurrent liability represents our current estimate of revenue expected to be recognized beyond twelve months.
−Removed: Compared to pre-pandemic levels, a larger portion of mile redemptions is projected to occur beyond twelve months and is therefore reflected as a noncurrent liability as of December 31, 2021.
−Removed: We will continue to monitor redemptions as the situation evolves.
+Added: The loyalty program deferred revenue classified as a current liability represents our estimate of revenue expected to be recognized in the next twelve months based on projected redemptions, while the balance classified as a noncurrent liability represents our estimate of revenue expected to be recognized beyond twelve months.
For additional information on our significant accounting policies related to the loyalty program, see Note 2 of the Notes to the Consolidated Financial Statements.
5 unchanged sentences
Travel credits are typically issued as a result of ticket cancellations prior to their expiration dates.
−Removed: We periodically evaluate the estimated air traffic liability and may record adjustments in our income statement.
−Removed: These adjustments relate primarily to refunds, exchanges, ticket breakage, transactions with other airlines and other items for which final settlement occurs in periods subsequent to the sale of the related tickets at amounts other than the original sales price.
−Removed: We have experienced significant ticket cancellations, particularly in the early months of the pandemic in 2020.
−Removed: During 2020, with the exception of Basic Economy, we eliminated change fees for all tickets originating in North America and waived change fees for tickets originating outside of North America.
−Removed: In the March 2021 quarter, we announced the extension of the validity of all passenger tickets and travel credits purchased or expiring in 2021 to December 31, 2022, which allowed for tickets to be rebooked through December 31, 2022 for travel through 2023.
−Removed: In January 2022, we announced that all existing travel credit holders will have until December 31, 2023 to rebook their ticket for travel throughout 2024.
−Removed: Additionally, all Delta customers with upcoming 2022 travel or who purchase a ticket in 2022 will also have the flexibility to rebook their ticket through December 31, 2023, and travel throughout 2024.
+Added: We periodically evaluate the estimated air traffic liability and may record adjustments in our Consolidated Statement of Operations ("income statement").
+Added: These adjustments relate primarily to ticket breakage, refunds, exchanges, transactions with other airlines and other items for which final settlement occurs in periods subsequent to the sale of the related tickets at amounts other than the original sales price.
+Added: During the COVID-19 pandemic, we experienced significant ticket cancellations, particularly in the early months of 2020.
+Added: Delta has eliminated change fees for tickets originating in the United States, Canada, Europe and Africa (excluding Basic Economy tickets).
+Added: In order to provide our customers more flexibility and time to plan their travel, travel credit holders as of January 2022 and customers who purchased a ticket in 2022 are able to rebook their ticket through December 31, 2023 for travel throughout 2024.
We estimate the value of ticket breakage and recognize revenue at the scheduled flight date.
1 unchanged sentence
Given the impact of the COVID-19 pandemic on customer behavior and changes made in ticket validity terms, as well as the elimination of change fees for most tickets, our estimates of revenue that will be recognized from the air traffic liability for unused tickets may vary in future periods.
−Removed: Travel credits represented approximately 45% of the air traffic liability as of December 31, 2021.
−Removed: This compares to approximately 65% as of December 31, 2020 and approximately 20% prior to the onset of the COVID-19 pandemic.
+Added: At December 31, 2022, the aggregate air traffic liability balance was $8.3 billion.
+Added: A hypothetical 10% change in the amount of travel credits estimated to expire unused would result in an impact of less than 1% of total operating revenue for the year ended December 31, 2022.
For additional information on our significant accounting policies related to passenger ticket sales, see Note 2 of the Notes to the Consolidated Financial Statements.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 51
+Added: | 2022 10-K 48
MD&A - Critical Accounting Estimates
Long-Lived Assets
−Removed: Our long-lived lived assets, including flight equipment, which consists of aircraft and associated engines and parts, operating lease right-of-use ("ROU") assets and other long-lived assets, which have a recorded value of approximately $36.0 billion at December 31, 2021, are recorded in property and equipment, net and operating lease right-of-use assets on our balance sheets.
+Added: Our long-lived lived assets, including flight equipment, which consists of aircraft and associated engines and parts, operating ROU assets and other long-lived assets, which have a recorded value of approximately $40.1 billion at December 31, 2022, are recorded in property and equipment, net and operating lease right-of-use assets on our balance sheets.
This value is based on various factors, including the assets' acquisition costs, estimated useful lives, salvage values, discounted lease payments and lease terms.
5 unchanged sentences
We estimate aircraft fair values using published sources, appraisals and bids received from third parties, as available.
−Removed: As a result of the COVID-19 pandemic and our response, we made decisions to remove certain aircraft from active service and to early retire certain fleets.
−Removed: We evaluated our fleet during 2020 and determined that only the fleet types discussed in Note 15 of the Notes to the Consolidated Financial Statements were impaired, as the future cash flows from the operation of other fleet types through the respective retirement dates exceeded the carrying value.
−Removed: This resulted in impairment and other related charges of $4.4 billion, recorded in restructuring charges in our income statement.
+Added: As a result of the COVID-19 pandemic and our response, we made decisions to remove certain aircraft from active service and to early retire certain fleet types.
+Added: We evaluated our fleet for impairment, determining that only certain fleet types were impaired, as the future cash flows from the operation of these fleet types through the respective retirement dates were lower than the carrying value.
+Added: This resulted in impairment and other related charges of $4.4 billion during 2020, recorded in restructuring charges in our income statement.
These charges were calculated using Level 3 fair value inputs based primarily upon recent market transactions and third-party bids, which were corroborated with published pricing guides and our assessment of existing market conditions based on industry knowledge.
The effects of the COVID-19 pandemic created additional estimation uncertainty as there was a limited market for aircraft and limited data on how the COVID-19 pandemic affected the fair value of aircraft.
−Removed: Due to the recovery in demand that we have experienced throughout 2021, we decided not to retire any additional aircraft and returned to service a majority of the aircraft that were temporarily parked in 2020.
−Removed: We recorded no further impairments during 2021.
−Removed: As we gained updated information during the year, we updated estimates to the 2020 fleet-related impairment charges and recorded adjustments of $19 million to certain of the restructuring charges during 2021.
+Added: Due to the recovery in demand that we experienced throughout 2021 and 2022, we decided not to retire any additional aircraft and returned to service a majority of the aircraft that were temporarily parked in 2020.
+Added: We recorded no further impairments during 2021 or 2022.
Following the impairment charges, the aggregate net book value of these aircraft as of December 31, 2022 and December 31, 2021 was approximately $220 million and $340 million, respectively, with the reduction in 2022 primarily due to aircraft sales.
10 unchanged sentences
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 52
+Added: | 2022 10-K 49
MD&A - Critical Accounting Estimates
12 unchanged sentences
Definite-lived assets consist primarily of marketing and maintenance service agreements.
+Added: In the September 2022 quarter, final regulatory approval was granted for our trans-American joint venture agreement with LATAM.
+Added: This agreement combines our highly complementary route networks between North and South America, with the goal of providing customers with a seamless travel experience and industry-leading connectivity.
+Added: Approval was granted for a 10-year period with a subsequent reassessment and extension process.
+Added: This agreement supports our strategic partnership with LATAM and the value of our $1.2 billion alliance-related indefinite-lived intangible asset.
+Added: We believe the LATAM joint venture agreement will generate growth opportunities, building upon Delta's and LATAM's global footprint.
+Added: We have classified our LATAM alliance intangible asset as indefinite-lived as we expect to indefinitely receive the economic benefits from the relationship, similar to other joint venture arrangements between U.S.
+Added: and foreign carriers that have been cleared by competition authorities in relevant foreign jurisdictions and granted antitrust immunity from the U.S.
+Added: Department of Transportation ("DOT").
+Added: Antitrust immunity grants are generally subject to reporting requirements and periodic reassessment processes administered by the DOT.
+Added: We have determined that there are currently no material legal, regulatory, contractual, competitive, economic or other factors that limit the useful life of our LATAM alliance-related intangible asset.
In 2022, we performed qualitative assessments of our goodwill and indefinite-lived intangible assets, including applicable factors noted in "Key Assumptions" above, and determined that there was no indication that the assets were impaired.
4 unchanged sentences
These plans are closed to new entrants and frozen for future benefit accruals.
−Removed: As of December 31, 2021, the unfunded benefit obligation for these plans recorded on our Consolidated Balance Sheets ("balance sheets") was $1.6 billion.
+Added: As of December 31, 2022, the unfunded benefit obligation for these plans recorded on our balance sheets was $90 million.
We had no minimum funding requirements in 2021 or 2022, and have no such requirements in 2023.
However, we voluntarily contributed $1.5 billion to these plans during 2021.
−Removed: The most critical assumptions impacting our defined benefit pension plan obligations and net periodic benefit cost are the discount rate, the expected long-term rate of return on plan assets and life expectancy of plan participants.
+Added: The most critical assumptions impacting our defined benefit pension plan obligations, plan assets and net periodic benefit cost are the discount rate, the expected long-term rate of return on plan assets and life expectancy of plan participants.
+Added: Delta Air Lines, Inc.
+Added: | 2022 10-K 50
+Added: MD&A - Critical Accounting Estimates
Weighted Average Discount Rate.
1 unchanged sentence
We used a weighted average discount rate to value the obligations of 5.62% and 2.97% at December 31, 2022 and 2021, respectively.
−Removed: Our weighted average discount rate for net periodic benefit cost in each of the past three years has varied from the rate selected on our measurement date, ranging from 2.65% to 4.33%.
Expected Long-Term Rate of Return.
3 unchanged sentences
We review our rate of return on plan assets assumptions annually.
−Removed: Our annual investment performance for one particular year does not, by itself, significantly influence our evaluation.
−Removed: Our weighted average expected long-term rate of return on assets for net periodic benefit cost for the year ended December 31, 2021 was 8.98%.
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 53
−Removed: MD&A - Critical Accounting Estimates
The investment strategy for our defined benefit pension plan assets is to earn a long-term return that meets or exceeds our annualized return target while taking an acceptable level of risk and maintaining sufficient liquidity to pay current benefits and other cash obligations of the plan.
−Removed: Based on our current level of funding, we have modified, and continue to evaluate, the asset allocation mix to reduce the investment risk of the portfolio.
−Removed: The lower risk profile of the portfolio is projected to result in a lower expected long-term rate of return on plan assets in 2022.
+Added: Based on our funded status as of December 31, 2021, we modified the strategic asset allocation mix in 2022 to reduce the investment risk of the portfolio.
+Added: Based on the portfolio's risk profile, we lowered the weighted average expected long-term rate of return on our defined benefit pension plan assets for 2022 net periodic benefit cost to 7.00%.
The impact of a 0.50% change in weighted average discount rate and 1.00% change in expected long-term rate of return on assets are shown in the table below:
4 unchanged sentences
December 31, 2022
−Removed: 0.50% decrease in weighted average discount rate $ (17) million $ 1.2 billion
−Removed: 0.50% increase in weighted average discount rate $ 14 million $ (1.1) billion
+Added: 0.50% decrease in weighted average discount rate $ (5) million $ 743 million
+Added: 0.50% increase in weighted average discount rate $ — million $ (685) million
1.00% decrease in expected long-term rate of return on assets $ 152 million $ —
8 unchanged sentences
Under the Pension Protection Act of 2006, we elected alternative funding rules so that the unfunded liability for a frozen defined benefit plan may be amortized over a fixed 17-year period and is calculated using an 8.85% discount rate until the 17-year period expires for all frozen defined benefit plans by the end of 2024.
−Removed: Upon expiration, under recent legislation passed in 2021, any required funding would be amortized over a rolling 15-year period and calculated using a discount rate of no less than 4.75% through 2030.
+Added: Upon expiration, under legislation passed in 2021, any required funding would be amortized over a rolling 15-year period and calculated using a discount rate of no less than 4.75% through 2030.
While this recent legislation makes our funding obligations for these plans more predictable, factors outside our control continue to have an impact on the funding requirements.
4 unchanged sentences
These investments valued using NAV as a practical expedient are typically valued on a monthly or quarterly basis by third-party administrators, valuation agents or fund managers with an annual audit performed by an independent third-party, but certain of these investments have a lag in the availability of data.
−Removed: This primarily applies to private equity, private equity-related strategies and real assets.
We solicit valuation updates from the investment fund managers and use their information and corroborating data from public markets to determine any needed fair value adjustments.
For additional information on our significant accounting policies related to defined benefit pension plans, see Note 9 of the Notes to the Consolidated Financial Statements.
+Added: Delta Air Lines, Inc.
+Added: | 2022 10-K 51
+Added: MD&A - Critical Accounting Estimates
Income Tax Valuation Allowance
5 unchanged sentences
and global economies, (3) forecast of airline revenue trends, (4) estimate of future fuel prices and (5) future impact of taxable temporary differences.
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 54
−Removed: MD&A - Critical Accounting Estimates
−Removed: At December 31, 2021 our net deferred tax asset balance was $1.3 billion , including an $833 million valuation allowance primarily related to capital loss carryforwards and certain state net operating losses.
−Removed: Although we have recent cumulative losses, we have a history of significant earnings prior to the onset of the COVID-19 pandemic.
−Removed: While we expect to return to sustained profitability as the effects of the pandemic subside and to generate sufficient taxable income to utilize our federal net operating loss carryforwards before any expire, the generation of future taxable income is dependent on many factors, including those which are out of our control, such as the demand for air travel and overall health of the economy.
+Added: At December 31, 2022 our net deferred tax asset balance was $301 million , including a $1.2 billion valuation allowance primarily related to certain net realized and unrealized capital losses and certain state net operating losses.
+Added: Although we have cumulative losses since the onset of the pandemic, we have a history of significant earnings prior to the onset of the COVID-19 pandemic.
+Added: During 2022, we returned to profitability, as our business continued to recover from the impact of the pandemic.
+Added: We are expecting to generate sufficient taxable income to utilize our federal net operating loss carryforwards before any expire.
+Added: However, the generation of future taxable income is dependent on many factors, including those which are out of our control, such as the demand for air travel and overall health of the economy.
As such, there are no guarantees that a valuation allowance will not be required against some or all of our deferred tax assets in future periods.
1 unchanged sentence
Under current tax law, federal net operating losses generated after 2017 do not expire.
−Removed: Therefore, we have not recorded a valuation allowance on our deferred tax assets other than the capital loss carryforwards and certain state net operating losses that have short expiration periods.
+Added: Therefore, we have not recorded a valuation allowance on our deferred tax assets other than the certain net realized and unrealized capital losses and certain state net operating losses that have short expiration periods.
For additional information on our significant accounting policies related to income taxes, see Note 11 of the Notes to the Consolidated Financial Statements.
Recent Accounting Standards
−Removed: Government Assistance .
−Removed: In 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No.
−Removed: 2021-10, "Government Assistance (Topic 832):
−Removed: Disclosures by Business Entities about Government Assistance." This ASU will require certain disclosures about the significant terms and conditions of material government assistance agreements in order to provide more consistent information to users of the financial statements.
−Removed: This standard is effective for annual reporting periods beginning after December 15, 2021, and early adoption is permitted.
−Removed: We determined that our material government assistance agreements are the payroll support program agreements under the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") and the program extensions, and we adopted the new standard in 2021.
−Removed: See Note 6 of the Notes to the Consolidated Financial Statements where we reflect the requirements of this new standard as it relates to our payroll support program disclosures.
+Added: Standards Effective in Future Years
+Added: Fair Value of Equity Investments.
+Added: In June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.
+Added: 2022-03, "Fair Value Measurement (Topic 820):
+Added: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." Under this standard, a contractual restriction on the sale of an equity security is not considered in measuring the security's fair value.
+Added: The standard also requires certain disclosures for equity securities that are subject to contractual restrictions.
+Added: The ASU becomes effective January 1, 2024.
+Added: Upon adoption, we do not believe it will have a material impact on the valuation of our equity investments;
+Added: however, we may be required to include additional disclosures to the extent we have material equity investments subject to contractual sale restrictions.
+Added: Supplier Finance Program Obligations.
+Added: In September 2022, the FASB issued ASU No.
+Added: 2022-04, "Liabilities—Supplier Finance Programs (Subtopic 405-50)." This standard requires disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations.
+Added: The new standard does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations.
+Added: The ASU becomes effective January 1, 2023, except for the rollforward requirement, which becomes effective January 1, 2024.
+Added: Upon adoption, we may be required to include additional disclosures to the extent we have material supplier finance program obligations.
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 55
+Added: | 2022 10-K 52
MD&A - Supplemental Information
3 unchanged sentences
Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.
−Removed: Reconciliations below may not calculate exactly due to rounding.
Included below are reconciliations of non-GAAP measures used within this Form 10-K to the most directly comparable GAAP financial measures.
These reconciliations include certain adjustments to GAAP measures, which are directly related to the impact of COVID-19 and our response.
+Added: Reconciliations below may not calculate exactly due to rounding.
These adjustments are made to provide comparability between the reported periods, if applicable, as indicated below:
1 unchanged sentence
During 2020, we recorded restructuring charges of $8.2 billion for items such as fleet impairments and voluntary early retirement and separation programs following strategic business decisions in response to the COVID-19 pandemic.
−Removed: In the year ended December 31, 2021, we recognized $19 million of adjustments to certain of those restructuring charges, representing changes in our estimates.
+Added: In the years ended December 31, 2022 and 2021, we recognized $124 million and $19 million, respectively, of adjustments to certain of those restructuring charges, representing changes in our estimates or the outcome of contract negotiations.
• Government grant recognition.
−Removed: We recognized $4.5 billion and $3.9 billion of the grant proceeds from the payroll support program extensions as a contra-expense during 2021 and 2020, respectively.
−Removed: We recognized the grant proceeds as contra-expense based on the periods that the funds were intended to compensate and have fully used all proceeds from the payroll support program extensions.
−Removed: • Impairments and equity method losses.
−Removed: These adjustments relate to recording our share of losses recorded by our equity method investees.
−Removed: Additionally, during 2020, we recognized charges from write-downs of our investments in LATAM and Grupo Aeroméxico following their financial losses and separate Chapter 11 bankruptcy filings, and the write-down of our investment in Virgin Atlantic based on our share of its losses.
−Removed: • Pension settlement charges.
−Removed: These charges were recognized in connection with the voluntary early retirement and separation programs that were offered to our employees in 2020.
−Removed: • Loss on extinguishment of debt.
−Removed: This adjustment relates to the early termination of a portion of our debt.
+Added: We recognized $4.5 billion of the grant proceeds from the payroll support program extensions as a contra-expense during 2021.
+Added: We recognized the grant proceeds as contra-expense based on the periods that the funds were intended to compensate and fully used all proceeds from the payroll support program extensions during that year.
• Special profit-sharing payment.
This adjustment is exclusive to 2021.
−Removed: To recognize the extraordinary efforts of our employees through the pandemic, we will make a special profit-sharing payment to eligible employees in February 2022, based on the adjusted pre-tax profit earned during the second half of 2021.
+Added: To recognize the extraordinary efforts of our employees through the pandemic, we made a special profit-sharing payment to eligible employees in February 2022, based on the adjusted pre-tax profit earned during the second half of 2021.
This adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
4 unchanged sentences
Settlements represent cash received or paid on hedge contracts settled during the applicable period.
−Removed: • Equity investment MTM adjustments.
−Removed: We record our proportionate share of losses from our equity investments in non-operating expense.
−Removed: As a result of Grupo Aeroméxico's and LATAM’s bankruptcy filings in 2020, we discontinued accounting for these investments under the equity method at that time as we no longer had significant influence with those investees.
−Removed: We adjust for our equity method investees' hedge portfolio MTM adjustments to allow investors to understand and analyze our core operational performance in the periods shown.
−Removed: • MTM adjustments on investments.
−Removed: Unrealized gains/losses result from our equity investments that are accounted for at fair value in non-operating expense.
−Removed: The gains/losses are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in companies without publicly-traded shares.
−Removed: Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 56
−Removed: MD&A - Supplemental Information
+Added: • Delta Private Jets adjustment .
+Added: Because we combined Delta Private Jets with Wheels Up in January 2020, we have excluded the impact of Delta Private Jets from 2019 results for comparability.
• Third-party refinery sales.
6 unchanged sentences
We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
−Removed: • Delta Private Jets adjustment .
−Removed: Because we combined Delta Private Jets with Wheels Up in January 2020, we have excluded the impact of Delta Private Jets from 2019 results for comparability.
−Removed: Pre-tax (loss)/income, adjusted reconciliation
+Added: Delta Air Lines, Inc.
+Added: | 2022 10-K 53
+Added: MD&A - Supplemental Information
+Added: Operating income, adjusted reconciliation
Year Ended December 31,
(in millions) 2022 2021 2019
−Removed: Pre-tax income/(loss) $ 398 $ (15,587) $ 6,198
+Added: Operating income
+Added: $ 3,661 $ 1,886 $ 6,618
Adjusted for:
1 unchanged sentence
Government grant recognition
−Removed: Impairments and equity method losses 337 2,172 —
−Removed: Pension settlement charges — 36 —
−Removed: Loss on extinguishment of debt 319 — —
−Removed: Special profit sharing payment 108 — —
MTM adjustments and settlements on hedges 29 9 14
−Removed: Equity investment MTM adjustments — (19) (14)
−Removed: MTM adjustments on investments (56) 119 13
+Added: Special profit sharing payment
Delta Private Jets adjustment — — 3
−Removed: Pre-tax (loss)/income, adjusted $ (3,415) $ (8,996) $ 6,214
+Added: Operating income/(loss), adjusted
+Added: $ 3,566 $ (2,527) $ 6,636
Operating expense, adjusted reconciliation
5 unchanged sentences
Government grant recognition — 4,512 —
−Removed: Special profit sharing payment (108) — —
MTM adjustments and settlements on hedges (29) (9) (14)
+Added: Special profit sharing payment — (108) —
Third-party refinery sales (4,977) (3,229) (97)
1 unchanged sentence
Operating expense, adjusted $ 42,039 $ 29,197 $ 40,082
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 57
−Removed: MD&A - Supplemental Information
Fuel expense, adjusted and Average fuel price per gallon, adjusted reconciliations
15 unchanged sentences
TRASM, adjusted 19.55 ¢ 13.71 ¢ 16.97 ¢
+Added: Delta Air Lines, Inc.
+Added: | 2022 10-K 54
+Added: MD&A - Supplemental Information
CASM-Ex reconciliation
11 unchanged sentences
CASM-Ex 12.87 ¢ 12.12 ¢ 10.88 ¢
−Removed: Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 58
−Removed: MD&A - Supplemental Information
Free Cash Flow
−Removed: The following table shows a reconciliation of net cash provided by/(used in) operating activities (a GAAP measure) to free cash flow (a non-GAAP financial measure).
+Added: The following table shows a reconciliation of net cash provided by operating activities (a GAAP measure) to free cash flow (a non-GAAP financial measure).
We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives.
Adjustments include:
−Removed: • Net (redemptions)/purchases of short-term investments.
−Removed: Net (redemptions)/purchases of short-term investments represent the net purchase and sale activity of investments and marketable securities in the period, including gains and losses.
+Added: • Net redemptions of short-term investments.
+Added: Net redemptions of short-term investments represent the net purchase and sale activity of investments and marketable securities in the period, including gains and losses.
We adjust for this activity to provide investors a better understanding of the company's free cash flow generated by our operations.
5 unchanged sentences
We have adjusted for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either reimbursed by a third-party or funded with restricted cash specific to these projects.
+Added: • Financed aircraft acquisitions.
+Added: This adjustment reflects aircraft deliveries that are leased as capital expenditures.
+Added: The adjustment is based on their original contractual purchase price or an estimate of the aircraft's fair value and provides a more meaningful view of our investing activities.
Free cash flow reconciliation
1 unchanged sentence
(in millions) 2022
−Removed: Net cash provided by/(used in) operating activities $ 3,264 $ (3,793) $ 8,425
+Added: Net cash provided by operating activities $ 6,363
Net cash used in investing activities (6,924)
Adjusted for:
−Removed: Net (redemptions)/purchases of short-term investments (2,381) 5,792 (206)
+Added: Net redemptions of short-term investments (100)
Strategic investments and related 701
Net cash flows related to certain airport construction projects and other 409
+Added: Financed aircraft acquisitions (206)
Free cash flow $ 244
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 59
+Added: | 2022 10-K 55
MD&A - Glossary of Defined Terms
7 unchanged sentences
CASM-Ex - The amount of operating cost incurred per ASM during a reporting period, adjusted for the items shown above in "Supplemental Information."
−Removed: Free Cash Flow - Represents the cash available for use for debt service or general corporate initiatives.
+Added: Free Cash Flow - A measure of net cash from operating and investing activities, adjusted for items shown above in "Supplemental Information." Represents the cash available for use for debt service or general corporate initiatives.
+Added: Liquidity - Includes our cash and cash-like assets, including cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities.
Load Factor - A measure of utilized available seating capacity calculated by dividing RPMs by ASMs for a reporting period.
2 unchanged sentences
The amount of passenger revenue earned per ASM during a reporting period.
−Removed: PRASM is also referred to as "unit revenue."
+Added: PRASM is also referred to as "passenger unit revenue."
RPM - Revenue Passenger Mile.
−Removed: One revenue-paying passenger transported one mile.
+Added: One revenue-paying passenger transported one mile is one RPM.
RPMs equal the number of revenue passengers during a reporting period multiplied by the number of miles flown by those passengers during that period.
4 unchanged sentences
Delta Air Lines, Inc.
−Removed: 2021 Form 10-K 60
+Added: | 2022 10-K 56
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.