QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We have market risk exposure related to fuel prices, interest rates and foreign currency exchange rates.
+Added: We have market risk exposure related to fuel prices, interest rates, foreign currency exchange rates and changes in the market value of equity investments.
Market risk is the potential negative impact of adverse changes in these prices or rates on our Consolidated Financial Statements.
6 unchanged sentences
Changes in fuel prices materially impact our results of operations.
−Removed: A one cent increase in the cost of jet fuel would result in approximately $40 million of additional annual fuel expense based on annual pre-COVID-19 pandemic consumption of approximately four billion gallons of jet fuel.
−Removed: As a result of the reduced capacity from the COVID-19 pandemic, our jet fuel consumption during 2022 of 3.4 billion gallons was lower than our historical and expected future consumption.
−Removed: Our derivative contracts to hedge the financial risk from changing fuel prices are primarily related to Monroe’s inventory.
+Added: A one cent increase in the cost of jet fuel per gallon would result in approximately $40 million of additional annual fuel expense based on annual consumption of approximately four billion gallons of jet fuel.
+Added: Our derivative contracts to hedge the financial risk from changing fuel prices are related to Monroe’s inventory.
Interest Rate Risk
3 unchanged sentences
At December 31, 2023, we had $16.8 billion of fixed-rate debt, $1.9 billion of variable-rate debt and $583 million of variable-rate leases.
−Removed: The rates used in our variable-rate debt are based on LIBOR, or another index rate, which in certain cases is subject to a floor.
+Added: The rates used in our variable-rate debt are based on SOFR, or another index rate, which in certain cases is subject to a floor.
+Added: At December 31, 2023 we no longer had LIBOR-based debt or finance leases.
An increase of 100 basis points in average annual interest rates would have decreased the estimated fair value of our fixed-rate debt by $716 million at December 31, 2023 and would have increased the annual interest expense on our variable-rate debt and variable-rate leases by $25 million.
−Removed: In March 2021, the administrator of LIBOR announced that the publication of certain LIBOR settings ceased after December 2021 and publication of the remainder of the LIBOR settings will cease after June 2023.
−Removed: At December 31, 2022, we had no exposure to the discontinued LIBOR settings and had approximately $1.4 billion of LIBOR-based debt and finance leases maturing after June 2023, all of which include mechanisms for replacing the applicable reference rate, which we do not expect to be materially different from LIBOR.
Foreign Currency Exchange Risk
3 unchanged sentences
At December 31, 2023 we had no open foreign currency options or forward contracts.
+Added: Equity Investment Risk
+Added: We own equity investments in a number of airlines and airline service companies, which are subject to equity price risk.
+Added: We often hold our equity securities for long periods and short-term price volatility has occurred in the past and will occur in the future, impacting the volatility of our financial results.
+Added: During 2023, we recorded a net gain of $1.3 billion related to the valuation of our fair value investments.
+Added: As of December 31, 2023, we have long-term investments recorded at fair value of $2.9 billion and, therefore, a 10% change in the fair value of these investments would have an approximately $290 million impact on our financial results.
+Added: See Note 3 and Note 4 of the Notes to the Consolidated Financial Statements for further information on our investments.
Delta Air Lines, Inc.
−Removed: | 2022 10-K 57
+Added: | 2023 Form 10-K 54
Financial Statements
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.