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What changed in Delta Air Lines's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Delta Air Lines's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+273 added−298 removedSource: 10-K (2026-02-11) vs 10-K (2025-02-11)

Top changes in Delta Air Lines's 2025 10-K

273 paragraphs added · 298 removed · 209 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

47 edited+7 added−22 removed36 unchanged
Biggest changeWe acquire a significant amount of jet fuel from Monroe and through strategic agreements associated with the refinery that Monroe has with third parties. The cost of the jet fuel we purchase under these arrangements remains subject to volatility, including from the cost of crude oil.
Biggest changeThe cost of the jet fuel we purchase under these arrangements remains subject to volatility, including from the cost of crude oil. In addition, we have historically purchased a significant amount of aircraft fuel in addition to what we obtain from Monroe.
The compromise of our or our business partners’ or third-party service providers’ technology systems could result in legal claims or proceedings, liability, fines or other regulatory enforcement actions, disruption to our operations and damage to our reputation, any or all of which could adversely affect our business. The costs to remediate these incidents could be material.
The compromise of our or our business partners’ or third-party service providers’ technology systems could result in disruption to our operations, damage to our reputation and legal claims or proceedings, liability, fines or other regulatory enforcement actions, any or all of which could adversely affect our business. The costs to remediate these incidents could be material.
A significant individual, sustained or repeated failure of our information technology infrastructure, including third-party networks, software-as-a-service applications, cloud services, or technology that we utilize and on which we depend, could impact our operations and our customer service, result in loss of revenue, increased costs and damage our reputation.
A significant individual, sustained or repeated failure of our information technology infrastructure, including third-party networks, software-as-a-service applications, cloud services, or technology that we utilize and on which we depend, could impact our operations and our customer service, result in loss of revenue and increased costs, and damage our reputation.
To the extent that the operations of a third-party on which we rely is significantly disrupted or if these third parties experience significant performance issues (including failing to satisfy any applicable performance standards) or fail to meet any applicable compliance requirements, our revenue may be reduced, our expenses may be increased and our reputation may be harmed, any or all of which could result in a material adverse effect on our business and results of operations.
To the extent that the operations of a third-party on which we rely are significantly disrupted or if these third parties experience significant performance issues (including failing to satisfy any applicable performance standards) or fail to meet any applicable compliance requirements, our revenue may be reduced, our expenses may be increased and our reputation may be harmed, any or all of which could result in a material adverse effect on our business and results of operations.
In addition, foreign governments may enact or allow airports to enact similar restrictions, which could adversely impact our international operations or require significant expenditures in order for our aircraft to comply with the restrictions. For example, in 2022, to reduce noise, the Netherlands announced a multi-phase plan to reduce the maximum number of flights authorized annually at Amsterdam’s Schiphol Airport.
In addition, foreign governments may enact or allow airports to enact similar restrictions, which could adversely impact our international operations or require significant expenditures in order for our aircraft to comply with the restrictions. For example, in 2022, the Netherlands announced a multi-phase plan to reduce noise by reducing the maximum number of flights authorized annually at Amsterdam’s Schiphol Airport.
Snell, Age 48: Executive Vice President - Chief Customer Experience Officer of Delta since January 2025; Senior Vice President - Airport Customer Service, Cargo Operations, Ground Support Equipment and Global Clean (June 2022 - December 2024); Senior Vice President - Operations & Customer Center, Operations Analytics, and Delta Connection (October 2020 - June 2022); Senior Vice President - Corporate Planning (March 2020 - October 2020); Senior Vice President - Operations & Customer Center (September 2018 - March 2020); Vice President - Operations & Customer Center (March 2017 - August 2018); Vice President - Delta Connection (November 2015 - March 2017); Chief Executive Officer of Delta Global Services and Delta Private Jets (March 2015 - November 2015).
Snell, Age 49: Executive Vice President - Chief Customer Experience Officer of Delta since January 2025; Senior Vice President - Airport Customer Service, Cargo Operations, Ground Support Equipment and Global Clean (June 2022 - December 2024); Senior Vice President - Operations & Customer Center, Operations Analytics, and Delta Connection (October 2020 - June 2022); Senior Vice President - Corporate Planning (March 2020 - October 2020); Senior Vice President - Operations & Customer Center (September 2018 - March 2020); Vice President - Operations & Customer Center (March 2017 - August 2018); Vice President - Delta Connection (November 2015 - March 2017); Chief Executive Officer of Delta Global Services and Delta Private Jets (March 2015 - November 2015).
Breaches or lapses in the security of the technology systems we use and rely on could compromise the data stored within them and consequently expose us to liability, disruption to our operations and damage to our reputation, any or all of which could have a material adverse effect on our business.
Breaches or lapses in the security of the technology systems we use and rely on could compromise the data stored within them and consequently disrupt our operations, damage our reputation and expose us to liability, any or all of which could have a material adverse effect on our business.
Carter, Age 61: Executive Vice President - Chief External Affairs Officer of Delta since October 2022; Executive Vice President - Chief Legal Officer of Delta (July 2015 - October 2022); Partner of Dorsey & Whitney LLP (1999 - 2015), including co-chair of Securities Litigation and Enforcement practice group, chair of Policy Committee and chair of trial department. Daniel C.
Carter, Age 62: Executive Vice President - Chief External Affairs Officer of Delta since October 2022; Executive Vice President - Chief Legal Officer of Delta (July 2015 - October 2022); Partner of Dorsey & Whitney LLP (1999 - 2015), including co-chair of Securities Litigation and Enforcement practice group, chair of Policy Committee and chair of trial department. Daniel C.
Janki, Age 56: Executive Vice President - Chief Financial Officer of Delta since July 2021; Senior Vice President of General Electric Company (GE) and Chief Executive Officer of GE Power Portfolio (October 2020 - June 2021); Senior Vice President, Business and Portfolio Transformation of GE (2018 - 2020); Senior Vice President, Treasurer and Global Business Operations of GE (2014 - 2017); Senior Vice President, CEO of GE Energy Management (2012 - 2013).
Janki, Age 57: Executive Vice President - Chief Financial Officer of Delta since July 2021; Senior Vice President of General Electric Company (GE) and Chief Executive Officer of GE Power Portfolio (October 2020 - June 2021); Senior Vice President, Business and Portfolio Transformation of GE (2018 - 2020); Senior Vice President, Treasurer and Global Business Operations of GE (2014 - 2017); Senior Vice President, CEO of GE Energy Management (2012 - 2013).
Hauenstein, Age 64: President of Delta since May 2016; Executive Vice President - Chief Revenue Officer of Delta (August 2013 - May 2016); Executive Vice President - Network Planning and Revenue Management of Delta (April 2006 - July 2013); Executive Vice President and Chief of Network and Revenue Management of Delta (August 2005 - April 2006); Vice General Director - Chief Commercial Officer and Chief Operating Officer of Alitalia (2003 - 2005); Senior Vice President- Network of Continental Airlines (2003); Senior Vice President - Scheduling of Continental Airlines (2001 - 2003); Vice President Scheduling of Continental Airlines (1998 - 2001).
Hauenstein, Age 65: President of Delta since May 2016; Executive Vice President - Chief Revenue Officer of Delta (August 2013 - May 2016); Executive Vice President - Network Planning and Revenue Management of Delta (April 2006 - July 2013); Executive Vice President and Chief of Network and Revenue Management of Delta (August 2005 - April 2006); Vice General Director - Chief Commercial Officer and Chief Operating Officer of Alitalia (2003 - 2005); Senior Vice President- Network of Continental Airlines (2003); Senior Vice President - Scheduling of Continental Airlines (2001 - 2003); Vice President Scheduling of Continental Airlines (1998 - 2001).
The airline industry may face additional regulation of aircraft emissions in the U.S. and abroad and become subject to further taxes, charges or additional requirements to obtain permits or purchase allowances or emission credits for GHG emissions in various jurisdictions. For example, in 2023, the EU adopted legislation that imposes a SAF mandate on fuel supplied at EU airports.
The airline industry may face additional regulation of aircraft emissions in the U.S. and abroad and could become subject to further taxes, charges or additional requirements to obtain permits or purchase allowances or emission credits for GHG emissions in various jurisdictions. For example, in 2023, the EU adopted legislation that established a SAF mandate on fuel supplied at EU airports.
Laughter, Age 54: President - Delta TechOps and Chief of Operations since October 2023; Executive Vice President - Chief of Operations of Delta (June 2021 - October 2023); Senior Vice President and Chief of Operations of Delta (October 2020 - June 2021); Senior Vice President - Flight Operations of Delta (March 2020 - October 2020); Senior Vice President - Corporate Safety, Security and Compliance of Delta (August 2013 - March 2020); Senior Vice President - Maintenance Operations of Delta (March 2008 - July 2013); Vice President - Maintenance of Delta (December 2005 - March 2008).
Laughter, Age 55: President - Delta TechOps and Chief of Operations since October 2023; Executive Vice President - Chief of Operations of Delta (June 2021 - October 2023); Senior Vice President and Chief of Operations of Delta (October 2020 - June 2021); Senior Vice President - Flight Operations of Delta (March 2020 - October 2020); Senior Vice President - Corporate Safety, Security and Compliance of Delta (August 2013 - March 2020); Senior Vice President - Maintenance Operations of Delta (March 2008 - July 2013); Vice President - Maintenance of Delta (December 2005 - March 2008).
We have also invested in significant upgrades to technology infrastructure and other supporting systems and a transition to cloud-based technologies. The performance, reliability and security of the technology we use are critical to our ability to serve customers.
We have also invested in significant upgrades to technology infrastructure and other supporting systems and have largely completed a transition to cloud-based technologies. The performance, reliability and security of the technology we use are critical to our ability to serve customers.
Shortages in fuel supplies could have negative effects on our business and results of operations. Unplanned disruptions or interruptions of production at the refinery could have a negative impact on our ability to acquire jet fuel needed for our operations.
Shortages in fuel supplies could have negative effects on our business and results of operations. Unplanned disruptions or interruptions of production at Monroe's refinery could have a negative impact on our ability to acquire jet fuel needed for our operations.
Alain Bellemare, Age 63: President - International of Delta since January 2021; Chief Executive Officer of Bombardier (February 2015 - March 2020); President and Chief Executive Officer of United Technologies Corporation Propulsion & Aerospace Systems (June 2011 - February 2015). Peter W.
Alain Bellemare, Age 64: President - International of Delta since January 2021; Chief Executive Officer of Bombardier (February 2015 - March 2020); President and Chief Executive Officer of United Technologies Corporation Propulsion & Aerospace Systems (June 2011 - February 2015). Peter W.
Rahul Samant, Age 58: Executive Vice President - Chief Information Officer of Delta since January 2018; Senior Vice President and Chief Information Officer of Delta (February 2016 - December 2017); Senior Vice President and Chief Digital Officer of American International Group, Inc.
Rahul Samant, Age 59: Executive Vice President - Chief Information Officer of Delta since January 2018; Senior Vice President and Chief Information Officer of Delta (February 2016 - December 2017); Senior Vice President and Chief Digital Officer of American International Group, Inc.
In 2017, ICAO also adopted aircraft certification standards to reduce carbon dioxide ("CO 2 ") emissions from new aircraft. The new aircraft certification standards applied to new fleet types in 2020 and will apply to in-production aircraft no later than 2028. These standards will not apply to existing in-service aircraft.
Item 1. Business In 2017, ICAO also adopted aircraft certification standards to reduce carbon dioxide ("CO 2 ") emissions from new aircraft. The new aircraft certification standards applied to new fleet types in 2020 and will apply to in-production aircraft no later than 2028. These standards will not apply to existing in-service aircraft.
In 2021, the EPA finalized GHG emission standards for new aircraft engines designed to implement the ICAO standards on the same timeframe contemplated by ICAO, and these standards have been upheld in response to legal challenges. Like the ICAO standards, the final EPA standards do not apply to engines on in-service aircraft.
In 2021, the EPA finalized GHG emission standards for new aircraft engines designed to implement the ICAO standards on the same timeframe contemplated by ICAO, and these standards were upheld in response to legal challenges. Like the ICAO standards, the final EPA standards do not apply to engines on in-service aircraft.
In addition, any accident involving an aircraft that we operate or an aircraft that is operated by an airline that is one of our regional carriers or codeshare, alliance or joint venture partners could create a negative public perception about safety and reliability for aviation authorities and the public, which could harm our reputation, resulting in air travelers being reluctant to fly on our aircraft and therefore harm our business.
In addition, any accident involving an aircraft or aircraft type that we operate or that is operated by another airline, including our regional carriers or codeshare, alliance or joint venture partners, could create a negative public perception about safety and reliability for aviation authorities and the public, which could harm our reputation, resulting in air travelers being reluctant to fly on our aircraft and therefore harm our business.
High fuel costs or cost increases, including in the cost of crude oil, could have a material adverse effect on our results of operations. Our results of operations are significantly impacted by changes in the price of aircraft fuel. Fuel costs represented 19%, 21% and 24% of our operating expense in 2024, 2023 and 2022, respectively.
High fuel costs or cost increases, including in the cost of crude oil, could have a material adverse effect on our results of operations. Our results of operations are significantly impacted by changes in the price of aircraft fuel. Fuel costs represented 17%, 19% and 21% of our operating expense in 2025, 2024 and 2023, respectively.
The secure operation of our networks and systems, and those of our business partners and third-party service providers, on which this type of information is processed is critical to our business operations and strategy. These networks and systems are subject to an increasing threat of continually evolving cybersecurity risks, which we must manage.
The secure operation of our networks and systems, and those of our business partners and third-party service providers, on which this type of information is processed is critical to our business operations and strategy. These networks and systems are subject to high levels of threat of continually evolving cybersecurity risks, which we must manage.
At times in the past, we often were not able to increase our fares to offset fully the effect of increases in fuel costs, and we may not be able to do so in the future. Delta Air Lines, Inc. | 2024 Form 10-K 18 Item 1A.
At times in the past, we often were not able to increase our fares to offset fully the effect of increases in fuel costs, and we may not be able to do so in the future. Delta Air Lines, Inc. | 2025 Form 10-K 17 Item 1A.
Business Additional regulation could result in taxation, regulatory or permitting requirements from multiple jurisdictions for the same operations and significant costs for us and the airline industry. In addition to direct costs, such regulation could result in increased fuel costs passed through from fuel suppliers affected by any such regulations.
Additional regulation could result in taxation, regulatory or permitting requirements from multiple jurisdictions for the same operations and significant costs to the airline industry, including Delta. In addition to direct costs, such regulation could result in increased fuel costs passed through from fuel suppliers affected by any such regulations.
Information on our website, including our investor relations website, is not incorporated into this Form 10-K or our other securities filings and is not a part of those filings. Delta Air Lines, Inc. | 2024 Form 10-K 16 Item 1A. Risk Factors ITEM 1A.
Information on our website, including our investor relations website, is not incorporated into this Form 10-K or our other securities filings and is not a part of those filings. Delta Air Lines, Inc. | 2025 Form 10-K 15 Item 1A. Risk Factors ITEM 1A.
Allison C. Ausband, Age 62: Executive Vice President - Chief People Officer of Delta since January 2025; Executive Vice President - Chief Customer Experience Officer of Delta (June 2021 - December 2024); Senior Vice President - In-Flight Service of Delta (September 2014 - May 2021); Vice President - Reservation Sales and Customer Care of Delta (January 2010 - September 2014).
Ausband, Age 63: Executive Vice President - Chief People Officer of Delta since January 2025; Executive Vice President - Chief Customer Experience Officer of Delta (June 2021 - December 2024); Senior Vice President - In-Flight Service of Delta (September 2014 - May 2021); Vice President - Reservation Sales and Customer Care of Delta (January 2010 - September 2014).
Delta Air Lines, Inc. | 2024 Form 10-K 17 Item 1A. Risk Factors Disruptions of our information technology infrastructure could interfere with our operations, possibly having a material adverse effect on our business.
Delta Air Lines, Inc. | 2025 Form 10-K 16 Item 1A. Risk Factors Disruptions of our information technology infrastructure could interfere with our operations, possibly having a material adverse effect on our business.
While we have initiatives and disaster recovery plans in place to prevent or mitigate disruptions, we experienced a global outage caused by a faulty update by cybersecurity vendor CrowdStrike in July 2024 that resulted in global information technology outages of Windows-based systems. The faulty software update significantly affected our information technology systems, disrupting our operations.
While we have initiatives and disaster recovery plans in place to prevent or mitigate disruptions, we have experienced a significant disruption in the past, such as the global outage caused by a faulty update by cybersecurity vendor CrowdStrike in July 2024 that resulted in global information technology outages of Windows-based systems and significantly affected our information technology systems, disrupting our operations.
Sear, Age 59: Executive Vice President - Global Sales of Delta since February 2016; Senior Vice President - Global Sales of Delta (December 2011 - February 2016); Vice President - Global Sales of Delta (October 2008 - December 2011); Vice President - Sales & Customer Care of Northwest Airlines, Inc. (June 2005 - October 2008). Erik S.
Sear, Age 60: Executive Vice President - Global Sales of Delta since February 2016; Senior Vice President - Global Sales of Delta (December 2011 - February 2016); Vice President - Global Sales of Delta (October 2008 - December 2011); Vice President - Sales & Customer Care of Northwest Airlines, Inc. (June 2005 - October 2008).
However, the constantly changing nature of the threats means that we may not be able to prevent all information security breaches or misuse of data. In addition, as cybercriminals become more sophisticated, the cost of proactive defensive measures continues to increase.
However, the constantly changing nature of the threats means that we may not be able to prevent all information security breaches or misuse of data. In addition, as cybercriminals become more sophisticated, including through the use of AI-enabled technologies, the cost of proactive defensive measures continues to increase.
We have made and continue to make significant investments in customer facing technology such as delta.com, the FlyDelta mobile application, in-flight wireless internet, check-in kiosks, customer service applications, application of biometric technology, airport information displays and related initiatives, including security for these initiatives.
We have made and continue to make significant investments in customer facing technology such as delta.com, the Delta app, in-flight wireless internet, check-in kiosks, customer service applications, application of biometric technology, airport information displays, new AI-based tools and services, and related initiatives, including security for these initiatives.
The CRAF Program has only been activated three times since it was created in 1951, most recently in 2021 to support the military’s effort to evacuate people from Afghanistan following the withdrawal of U.S. troops from the country. Delta Air Lines, Inc. | 2024 Form 10-K 14 Item 1. Business Information About Our Executive Officers Edward H.
The CRAF Program has only been activated three times since it was created in 1951, most recently in 2021 to support the military’s effort to evacuate people from Afghanistan following the withdrawal of U.S. troops from the country. Delta Air Lines, Inc. | 2025 Form 10-K 13 Item 1.
While we work closely with these carriers, we do not have control over their operations or business methods. To the extent that the operations of any of these carriers are disrupted over an extended period or their actions have a significant adverse effect on our operations, our results of operations could be materially adversely affected.
To the extent that the operations of any of these carriers are disrupted over an extended period or their actions have a significant adverse effect on our operations, our results of operations could be materially adversely affected.
Management's Discussion and Analysis.” While we continue to invest in improvements to our preventative initiatives and disaster recovery plans, the measures we have in place may not be adequate to prevent future business disruptions and any material adverse financial and reputational consequences to our business.
While we continue to invest in improvements to our preventative initiatives and disaster recovery plans, the measures we have in place may not be adequate to prevent future business disruptions and any material adverse financial and reputational consequences to our business. Failure of the technology we use to perform effectively could have a material adverse effect on our business.
We rely on the operations and performance of third parties in a number of areas that are important to our business, including third-party regional carriers, international alliance partners and ground operation providers at some airports. While we have agreements with certain of these third parties that define expected service performance, we do not have direct control over their operations.
We rely on the operations and performance of third parties in a number of areas that are important to our business, including third-party regional carriers, international alliance partners, technology service providers and ground operation providers at some airports.
(January 2015 - February 2016); Senior Vice President and Global Head, Application Development and Management of American International Group, Inc. (September 2012 - December 2014); Managing Director of Bank of America (1999 - September 2012). Steven M.
(January 2015 - February 2016); Senior Vice President and Global Head, Application Development and Management of American International Group, Inc. (September 2012 - December 2014); Managing Director of Bank of America (1999 - September 2012). As previously announced, Mr. Samant will retire from Delta effective March 1, 2026. Steven M.
If this technology does not perform effectively, including as a result of the implementation or integration of new or upgraded technologies or systems, our business and operations can be negatively affected, which could be material. As discussed above, the faulty CrowdStrike software update significantly affected our information technology systems, disrupting our operations.
If our technology initiatives and capabilities do not perform effectively or accurately, including as a result of the implementation or integration of new or upgraded technologies or systems, our business and operations can be negatively affected, which could be material.
Delta Air Lines, Inc. | 2024 Form 10-K 19
Delta Air Lines, Inc. | 2025 Form 10-K 18
The methods used to obtain unauthorized access, disable or degrade service or sabotage systems are constantly evolving and may be difficult to anticipate or to detect for long periods of time.
The methods used to obtain unauthorized access, disable or degrade service or sabotage systems are constantly evolving and may be difficult to anticipate or to detect for long periods of time. Threat actors are also increasingly leveraging advanced technologies, including the use of AI and automated tools, to enhance the scale, speed and effectiveness of cyberattacks.
In November 2023, the Netherlands suspended the initial phase of the plan, and in 2024, the Netherlands Supreme Court found that the Dutch government’s flight reduction plan was unlawful. The Dutch government has issued a revised plan, which is under review with the European Commission.
In November 2023, the Netherlands suspended the initial phase of the plan, and in 2024, the Netherlands Supreme Court found that the Dutch government’s flight reduction plan was unlawful. The Dutch government has issued a revised plan, which is the subject of renewed litigation brought by airlines, including Delta and KLM, and by groups representing residents around Schiphol Airport.
Fuel prices are highly volatile and at times have adjusted substantially in relatively short periods of time. Between 2022 and 2024, our average fuel price per gallon has ranged from a monthly high of $4.25 in June 2022 to a monthly low of $2.29 in November 2024.
Fuel prices are highly volatile and at times have increased substantially in relatively short periods of time. Between 2023 and 2025, our average fuel price per gallon has ranged from a monthly high of $3.22 in October 2023 to a monthly low of $2.20 in August 2025. We acquire a significant amount of jet fuel from Monroe.
Delta Air Lines, Inc. | 2024 Form 10-K 15 Item 1. Business Additional Information Our company website is located at www.delta.com and our investor relations website is located at ir.delta.com.
Additional Information Our company website is located at www.delta.com and our investor relations website is located at ir.delta.com.
Bastian, Age 67: Chief Executive Officer of Delta since May 2016; President of Delta (September 2007 - May 2016); President of Delta and Chief Executive Officer Northwest Airlines, Inc.
Business Information About Our Executive Officers as of December 31, 2025 Edward H. Bastian, Age 68: Chief Executive Officer of Delta since May 2016; President of Delta (September 2007 - May 2016); President of Delta and Chief Executive Officer Northwest Airlines, Inc.
For example, substantially all of our tickets are issued to our customers as electronic tickets, and a significant number of our customers check in for flights using our website, airport kiosks and our FlyDelta mobile application.
We are dependent on technology initiatives and capabilities to provide customer service and operational effectiveness in order to compete in the current business environment. For example, substantially all of our tickets are issued to our customers as electronic tickets, and a significant number of our customers check in for flights using our website, airport kiosks and the Delta app.
Because passengers often purchase tickets well in advance of their travel, a significant rapid increase in fuel price may result in the fare charged not covering that increase.
Our aircraft fuel purchase contracts alone do not provide material protection against price increases as these contracts typically establish the price based on industry standard market price indices. Because passengers often purchase tickets well in advance of their travel, a significant rapid increase in fuel price could result in the fare charged not covering that increase.
The mandate requires that, of the jet fuel supplied in the EU, 2% must be SAF beginning in 2025, and the percentage increases incrementally over time to 70% in 2050. This mandate is expected to increase the cost of SAF in the EU.
Beginning in 2025, the mandate required 2% of the jet fuel supplied in the EU to be SAF, and the percentage increases incrementally over time to 70% in 2050. This mandate has increased SAF prices in the EU for the airline industry. In 2024, the UK also adopted SAF mandate legislation, and other countries are also considering mandates.
Neither the outcome of the review of the plan, nor the impact of its implementation, can be determined at this time. Refinery Matters .
This litigation questions the lawfulness of the renewed plan. The outcome of this litigation cannot be determined at this time. Refinery Matters .
For example, the DOT's approval of and antitrust immunity grant for our joint cooperation agreement with Aeroméxico is subject to a pending renewal application with the DOT, which was tentatively dismissed pursuant to an Order to Show Cause issued by the DOT on January 26, 2024.
On September 15, 2025, the DOT issued a final order terminating the antitrust immunity for our joint cooperation agreement with Aeroméxico and directed us and Aeroméxico to wind down certain joint operations that were covered by the immunity by January 1, 2026.
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Item 1. Business In 2024, the U.S. Environmental Protection Agency (the "EPA") finalized regulations defining certain per- and polyfluoroalkyl substances ("PFAS") as "hazardous substances" under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), and the EPA also finalized standards regulating PFAS under the Safe Drinking Water Act.
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As previously announced, Mr. Hauenstein will retire from Delta effective February 28, 2026. Allison C.
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PFAS are man-made chemicals that have been used in a wide variety of consumer and industrial products, including the firefighting foams used to extinguish fuel-based fires at airports and refineries. Numerous states have adopted regulations governing PFAS as well.
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Delta Air Lines, Inc. | 2025 Form 10-K 14 Item 1. Business Erik S.
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The EPA’s final rule under CERCLA, and analogous state laws could subject airports, airlines, and refineries, among others, to potential liability for cleanup of historical PFAS contamination associated with use of PFAS-containing firefighting foam.
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New and emerging technologies, including AI‑based tools and services, may not perform as intended, may be difficult to implement, integrate or scale, or may require ongoing training, monitoring and refinement.
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In addition, some states have adopted legislation prohibiting the manufacture, sale, distribution and/or use of firefighting foam containing intentionally added PFAS, which may require transition to alternative fire suppression systems. Delta has been developing plans to transition its aircraft maintenance hangars to systems that do not contain intentionally added PFAS.
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In addition, if we are unable to develop or deploy new technologies, including AI‑enabled capabilities, as quickly or effectively as our competitors, or if our investments do not deliver expected benefits, our ability to compete and meet customer expectations could be adversely affected. As discussed above, the faulty CrowdStrike software update significantly affected our information technology systems, disrupting our operations.
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The ultimate impact and associated cost to Delta of these legislative and regulatory developments cannot be predicted at this time. GHG Emissions . Aviation industry GHG emissions, particularly carbon emissions, and their impact on climate change have become a focus in the international community and within the U.S.
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We and Aeroméxico subsequently filed a petition in the United States Court of Appeals for the Eleventh Circuit for judicial review of the DOT final order. On November 12, 2025, the Court granted a stay of the final order pending the resolution of the case, the timing and outcome of which cannot be predicted at this time.
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In 2016, the International Civil Aviation Organization ("ICAO") formally adopted a global, market-based emissions offset program known as the Carbon Offsetting and Reduction Scheme for International Aviation ("CORSIA"). This program establishes a goal for the aviation industry to achieve carbon-neutral growth in international aviation beginning in 2021.
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In the meantime, we and Aeroméxico continue to operate under the joint cooperation agreement. We are dependent on these other carriers for significant aspects of our network in the regions in which they operate. While we work closely with these carriers, we do not have control over their operations or business methods.
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Any growth above the baseline would need to be addressed using either eligible carbon offsets or a lower carbon fuel. ICAO set the baseline for establishing airlines’ obligations under CORSIA for 2021 to 2023 based on 2019 travel, and in 2022 set a new, more stringent CORSIA baseline of 85% of 2019, which will apply from 2024 through 2035.
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While we have agreements with certain of these third parties that define expected service performance, we do not have direct control over their operations.
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The pilot phase of the CORSIA program ran from 2021 through 2023, and is being followed by a first phase of the program beginning in 2024 and a second phase beginning in 2027. Countries can voluntarily participate in the pilot and first phase, and the United States agreed to participate in these voluntary phases.
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Participation in the second phase is mandatory for certain countries, including the United States. The U.S. government has not yet enacted legislation to mandate that U.S. operators participate in CORSIA. Nonetheless, we have voluntarily submitted verified emissions reports on our annual international emissions.
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While airlines had no offsetting obligations during the pilot phase of CORSIA as a result of the impact of the COVID-19 pandemic on international travel, we expect that international airline emissions will likely exceed the new baseline during the next phase (2024 – 2026).
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Because certain CORSIA program details remain to be developed and could potentially be affected by political developments in participating countries or the results of the initial phases of the program, the impact of CORSIA cannot be predicted at this time. However, CORSIA is expected to increase operating costs for airlines that operate internationally.
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Additionally, the EU requires its member states to implement regulations to include aviation in its Emissions Trading Scheme ("ETS").
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Under these regulations, any airline with flights originating or landing in the European Economic Area ("EEA") is subject to the ETS and, beginning in 2012, was required to purchase emissions allowances if the airline exceeds the number of free allowances allocated to it under the ETS.
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The initial scope of the ETS, however, was narrowed so that it would apply only to flights within the EEA through 2023 to align with the pilot phase of CORSIA. In 2023, the EU adopted new legislation extending this narrow scope of the EU ETS until 2027.
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It also requires a review of CORSIA’s effectiveness in 2026, which could potentially lead to expansion of the EU ETS to include all flights departing the EU and EEA.
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As a result of the United Kingdom’s ("UK") withdrawal from the EU, UK flights are no longer part of the EU ETS and are instead regulated under a separate UK ETS scheme. UK ETS is applicable to UK domestic flights and flights from the UK to EEA countries.
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In 2024, the UK also adopted legislation that imposes a SAF mandate on producers that supply fuel to UK airports, and other countries are also considering similar mandates. Delta Air Lines, Inc. | 2024 Form 10-K 13 Item 1.
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However, in June 2023, the EPA finalized RFS volume requirements for 2023, 2024 and 2025, which has ameliorated the historical volatility in market prices for RINs.
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The operational disruption resulted in flight delays and approximately 7,000 cancellations of Delta flights over five days, impacting 1.4 million customers. The CrowdStrike-caused outage and resulting operational disruption adversely impacted our results of operations as discussed in more detail in “Item 7.
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Failure of the technology we use to perform effectively could have a material adverse effect on our business. We are dependent on technology initiatives and capabilities to provide customer service and operational effectiveness in order to compete in the current business environment.
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In addition, we have historically purchased a significant amount of aircraft fuel in addition to what we obtain from Monroe. Our aircraft fuel purchase contracts alone do not provide material protection against price increases as these contracts typically establish the price based on industry standard market price indices.
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The existing immunity remains in effect pending final adjudication of the renewal application, the timing and outcome of which cannot be predicted at this time. We are dependent on these other carriers for significant aspects of our network in the regions in which they operate.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

38 edited+3 added−2 removed78 unchanged
Biggest changeThe FAA from time to time issues directives and other regulations relating to the maintenance and operation of aircraft that necessitate significant expenditures and could carry operational implications. We expect to continue incurring significant expenses to comply with the FAA’s regulations.
Biggest changeAirlines are subject to extensive regulatory and legal compliance requirements that result in significant costs and may have material adverse effects on our business. For instance, the FAA from time to time issues directives and other regulations relating to the maintenance and operation of aircraft that necessitate significant expenditures and could carry operational implications.
Item 1A. Risk Factors Agreements governing our debt, including our credit facilities and our SkyMiles financing agreements, include financial and other covenants. Certain of these covenants impose restrictions on our business, and failure to comply with any of the covenants in these agreements could result in events of default.
Item 1A. Risk Factors Agreements governing our debt, including our credit facilities and our SkyMiles financing agreements, include financial and other covenants. Certain of these covenants could impose restrictions on our business, and failure to comply with any of the covenants in these agreements could result in events of default.
Terrorist attacks, geopolitical conflict or security events, or the fear or threat of any of these events, even if not made directly on or involving the airline industry, could have a significant negative impact on us by discouraging passengers from flying, leading to decreased ticket sales and increased refunds.
Terrorist attacks, geopolitical conflict or security events, or the fear or threat of any of these events, even if not made directly on or involving the airline industry, could have a significant negative impact on us by discouraging or preventing passengers from flying, leading to decreased ticket sales and increased refunds.
Although we dedicate significant resources to manage compliance with global privacy and information security obligations, this challenging regulatory environment may pose material risks to our business, including increased operational burdens and costs, regulatory enforcement, and legal claims or proceedings.
Although we dedicate significant resources to manage compliance with global privacy, information security and AI-related obligations, this challenging regulatory environment may pose material risks to our business, including increased operational burdens and costs, regulatory enforcement, and legal claims or proceedings.
The airline industry also faces competition from surface transportation and technological alternatives such as virtual meetings, teleconferencing or videoconferencing. Increased competition from these sectors in both the domestic and international markets may have a material adverse effect on our business, financial condition and results of operations.
To a lesser extent, the airline industry also faces competition from surface transportation and technological alternatives such as virtual meetings, teleconferencing or videoconferencing. Increased competition from these sectors in both the domestic and international markets may have a material adverse effect on our business, financial condition and results of operations.
Terrorist attacks, geopolitical conflict or security events, or the fear or threat of any of these events, could have a significant adverse effect on our business. Despite significant security measures at airports and airlines, the airline industry remains a high profile target for terrorist groups.
Terrorist attacks, geopolitical conflict or security events, or the fear or threat of any of these events, could have a significant adverse effect on our business. Despite significant security measures implemented at airports and airlines, the airline industry remains a high profile target for terrorist groups and cyber threat actors.
Delta Air Lines, Inc. | 2024 Form 10-K 20 Item 1A. Risk Factors An environmental or other incident associated with the operation of the Monroe refinery could have a material adverse effect on our consolidated financial results if insurance is unable to cover a significant liability. In addition, such an incident could damage our reputation.
Delta Air Lines, Inc. | 2025 Form 10-K 19 Item 1A. Risk Factors An environmental or other incident associated with the operation of the Monroe refinery could have a material adverse effect on our consolidated financial results if insurance is unable to cover a significant liability. In addition, such an incident could damage our reputation.
PFAS are man-made chemicals that have been used in a wide variety of consumer and industrial products, including the firefighting foams used to extinguish fuel-based fires at airports and refineries. Numerous states have adopted regulations governing PFAS as well.
PFAS are man-made chemicals that have been used in a wide variety of consumer and industrial products, including the firefighting foams used to extinguish fuel-based fires at airports and refineries. Numerous states have also adopted regulations governing PFAS.
Failure to implement measures to improve the air traffic control system could lead to increased delays and inefficiencies in flight operations as demand for U.S. air travel increases, having a material adverse effect on our operations.
Failure to implement measures to improve the air traffic control system could lead to capacity constraints as well as increased delays and inefficiencies in flight operations as demand for U.S. air travel increases, having a material adverse effect on our operations.
Demand for air travel is typically higher in the June and September quarters, particularly in our international markets, because there is more vacation travel during these periods than during the remainder of the year. The seasonal shifting of demand causes our financial results to vary on a quarterly basis.
Demand for air travel has historically been higher in the June and September quarters, particularly in our international markets, because there is more vacation travel during these periods than during the remainder of the year. Seasonal shifting of demand causes our financial results to vary on a quarterly basis.
Our business is labor intensive, utilizing large numbers of pilots, flight attendants, aircraft maintenance technicians, ground support personnel and other personnel. As of December 31, 2024, 20% of our workforce, primarily pilots, was unionized.
Our business is labor intensive, utilizing large numbers of pilots, flight attendants, aircraft maintenance technicians, ground support personnel and other personnel. As of December 31, 2025, approximately 20% of our workforce, primarily pilots, was unionized.
Our operations were, and could in the future be, negatively affected further if our employees are quarantined or sickened as a result of exposure to a disease outbreak, or as a result of a similar public health crisis, or if they are subject to additional governmental curfews or " shelter in place " health orders or similar restrictions.
Our operations could be negatively affected further if our employees are quarantined or sickened as a result of exposure to a disease outbreak, or as a result of a similar public health crisis, or if they are subject to additional governmental curfews or " shelter in place " health orders or similar restrictions.
Certain of our hubs are among the most congested airports in the United States and have been, and could in the future be, the subject of regulatory action that might limit the number of flights and/or increase costs of operations at certain times or throughout the day. Air traffic control inefficiencies can also enhance these pressures.
Certain of our hubs are among the most congested airports in the United States and have been, and could in the future be, the subject of regulatory action that might limit the number of flights and/or increase costs of operations at certain times or throughout the day. Air traffic control inefficiencies or inadequate staffing levels can also exacerbate these pressures.
As a result of the discretionary nature of air travel, the airline industry has been cyclical and particularly sensitive to changes in economic conditions. Because we operate globally, our business is subject to economic and political conditions throughout the world.
As a result of the discretionary nature of air travel, the airline industry has been cyclical and particularly sensitive to changes in economic conditions, as well as related consumer perceptions. Because we operate globally, our business is subject to economic and political conditions throughout the world.
Furthermore, we may be unable to attract and retain additional qualified senior management and other key personnel as needed in the future. Delta Air Lines, Inc. | 2024 Form 10-K 22 Item 1A.
Furthermore, we may be unable to attract and retain additional qualified senior management and other key personnel as needed in the future. Delta Air Lines, Inc. | 2025 Form 10-K 21 Item 1A.
In particular, the imposition of significant tariffs with respect to aircraft that we are not able to mitigate could substantially increase our costs, which in turn could have a material adverse effect on our financial results. Some of our operations are in high-risk legal compliance environments.
In particular, the imposition of significant new tariffs or increases in existing tariffs with respect to aircraft or related parts that we are not able to mitigate could substantially increase our costs, which in turn could have a material adverse effect on our financial results. Some of our operations are in high-risk legal compliance environments.
We are continuing to develop our climate strategy and transition plan; however, our ability to execute on such a plan is subject to substantial risks and uncertainties, as it is dependent on the actions of governments and third parties and will require, among other things, significant capital investment, including from third parties, research and development from manufacturers and other stakeholders, along with government policies and incentives to reduce the cost, and incent production, of SAF and other technologies that are not presently in existence or available at scale.
Our ability to execute on such a plan and achieve our goals is subject to substantial risks and uncertainties, as it is dependent on the actions of governments and third parties and will require, among other things, significant capital investment, including from third parties, research and development from manufacturers and other stakeholders, along with government policies and incentives to reduce the cost, and incent production, of SAF and other technologies that are not presently in existence or available at scale.
The legislation also provides for a review of the effectiveness of CORSIA in 2026 that could, if CORSIA is not deemed sufficiently effective, lead to the application of EU ETS to all flights departing the EU and EEA. Also in 2023, the EU adopted legislation that will impose a SAF mandate on fuel supplied at EU airports.
The legislation also provides for a review of the effectiveness of CORSIA in 2026 that could, if CORSIA is not deemed sufficiently effective, lead to the application of EU ETS to all flights departing the EU and EEA, which would increase costs. Also in 2023, the EU adopted legislation that established a SAF mandate on fuel supplied at EU airports.
If unfavorable economic conditions occur, particularly for an extended period, our business, financial condition and results of operations may be adversely affected.
If unfavorable economic conditions or negative consumer perceptions occur, particularly for an extended period, our business, financial condition and results of operations may be adversely affected.
An interruption or disruption at an airport or facility where we have significant operations, whether resulting from air traffic control delays, failure of computer systems or technology infrastructure, weather events or natural disasters, or performance issues from third-party service providers, if sustained for an extended period of time, could have a material adverse effect on our business, financial condition and results of operations.
An interruption or disruption at an airport or facility where we have significant operations, whether resulting from air traffic control delays, interruptions in other government services or staffing shortages (including as a result of prolonged government shutdowns), failure of computer systems or technology infrastructure, weather events or natural disasters, or performance issues from third-party service providers, if sustained for an extended period of time, could have a material adverse effect on our business, financial condition and results of operations.
Certain airports have also adopted, and others could in the future adopt, greenhouse gas emission or climate-related goals and requirements that could impact our operations or require us to make changes or investments in our infrastructure.
Certain airports have also adopted, and others could in the future adopt, greenhouse gas emission or climate-related goals and requirements that could impact our operations or require us to make changes or investments in our infrastructure. We are monitoring and evaluating the potential impact of such developments.
In order to address aircraft carbon dioxide emissions, the International Civil Aviation Organization (ICAO), a United Nations specialized agency, formally adopted a global, market-based emission offset program known as CORSIA. This program establishes a goal for the aviation industry to achieve carbon-neutral growth in international aviation beginning in 2021 through the use of carbon offsets and/or lower carbon aviation fuel.
In order to address aircraft carbon dioxide emissions, the International Civil Aviation Organization ("ICAO"), a United Nations specialized agency, formally adopted a global, market-based emissions offset program known as CORSIA. This program established a goal for the aviation industry to achieve carbon-neutral growth in international aviation beginning in 2021.
Political disruptions and instability around the world can negatively impact the demand and network availability for air travel. Additionally, any deterioration in global trade relations, such as increased tariffs or other trade barriers, could result in a decrease in the demand for international air travel.
Political disruptions and instability around the world can negatively impact the demand and network availability for air travel. Additionally, any deterioration in global trade relations, such as new or increased tariffs or other trade barriers, could result in a decrease in the demand for international air travel. Delta Air Lines, Inc. | 2025 Form 10-K 25 Item 1B.
The airline industry is highly competitive, marked by significant competition with respect to routes, fares, schedules (both timing and frequency), operational reliability, services, products, customer service and loyalty programs.
The airline industry is highly competitive, marked by significant competition with respect to routes, fares, schedules (both timing and frequency), operational reliability, services, products, customer service and loyalty programs. Over the last 20 years, the industry has evolved significantly both domestically and internationally.
We and other U.S. carriers are subject to U.S. and foreign data privacy and security laws that are not consistent in all countries in which we operate and which are continuously evolving, requiring ongoing monitoring and updates to our privacy and information security programs.
We and other U.S. carriers are subject to U.S. and foreign data privacy and security laws, as well as emerging laws and regulations governing the use of AI, that are not consistent in all countries in which we operate and which are continuously evolving, requiring ongoing monitoring and updates to our privacy, information security and AI governance programs.
The measures governments and private parties implemented in order to stem the spread of the COVID-19 pandemic, and the general concern about the virus among travelers, had a material adverse effect on the demand for worldwide air travel compared to historical levels, and consequently upon our business for an extended period.
The measures governments and private parties implement in order to stem the spread of a disease outbreak or other public threat, such as the COVID-19 pandemic, and the general concern among travelers about such a disease outbreak or public threat have had, and may in the future have, a material adverse effect on the demand for worldwide air travel compared to historical levels, and consequently upon our business for an extended period.
Delta Air Lines, Inc. | 2024 Form 10-K 23 Item 1A. Risk Factors Our domestic operations are subject to significant competition from traditional network carriers, including American Airlines and United Airlines, national point-to-point carriers, including Alaska Airlines, JetBlue Airways and Southwest Airlines, and other discount or ultra-low-cost carriers, including Allegiant Air, Avelo Airlines, Breeze Airways, Frontier Airlines and Spirit Airlines.
Risk Factors Our domestic operations are subject to significant competition from traditional network carriers, including American Airlines and United Airlines, national point-to-point carriers, including Alaska Airlines, JetBlue Airways and Southwest Airlines, and other discount or ultra-low-cost carriers, including Allegiant Air, Frontier Airlines and Spirit Airlines.
To the extent we are unable to respond in a timely and appropriate manner to adverse publicity, our brand and reputation may be damaged. Delta Air Lines, Inc. | 2024 Form 10-K 21 Item 1A.
To the extent we are unable to respond in a timely and appropriate manner to adverse publicity, including content that is false or misleading, our brand and reputation may be damaged. Delta Air Lines, Inc. | 2025 Form 10-K 20 Item 1A.
For example, in 2024, the EPA finalized regulations defining certain per- and polyfluoroalkyl substances ("PFAS") as "hazardous substances" under the Comprehensive Environmental Response Compensation and Liability Act ("CERCLA"), and the EPA also finalized regulations establishing drinking water standards for certain PFAS under the Safe Drinking Water Act.
For example, in 2024, the EPA finalized regulations defining certain PFAS as "hazardous substances" under CERCLA, and the EPA also finalized standards for regulating certain PFAS under the Safe Drinking Water Act.
ICAO set the baseline for establishing airlines’ obligations under CORSIA for 2021 to 2023 based on 2019 travel, and in 2022 set a new, more stringent CORSIA baseline of 85% of 2019, which will apply from 2024 through 2035.
Any growth above the baseline would need to be addressed using eligible carbon offsets and/or lower carbon fuel. ICAO set the baseline for establishing airlines’ obligations under CORSIA for 2021 to 2023 based on 2019 travel, and in 2022 set a new, more stringent CORSIA baseline of 85% of 2019, which will apply from 2024 through 2035.
The mandate initially requires that, of the jet fuel supplied in the EU, 2% must be SAF beginning in 2025, and the percentage increases incrementally over time to 70% in 2050. This mandate is expected to increase the cost of SAF in the EU. In 2024, the UK also adopted SAF mandate legislation, and other countries are considering mandates.
Beginning in 2025, the mandate required 2% of the jet fuel supplied in the EU to be SAF, and the percentage increases incrementally over time to 70% in 2050. This mandate has increased SAF prices in the EU for the airline industry. In 2024, the UK also adopted SAF mandate legislation, and other countries are also considering mandates.
Risk Factors Inefficiencies in the U.S. air traffic control system, which is regulated by the FAA, can result in delays and disruptions of air traffic, especially during peak travel periods in certain congested markets.
Delta Air Lines, Inc. | 2025 Form 10-K 23 Item 1A. Risk Factors Inefficiencies in the U.S. air traffic control system, which is regulated by the FAA, including outdated technology and inadequate staffing levels have resulted, and may in the future result, in delays and disruptions of air traffic, especially during peak travel periods in certain congested markets.
Delta Air Lines, Inc. | 2024 Form 10-K 25 Item 1A. Risk Factors Future regulatory action concerning climate change, aircraft emissions and noise could have a significant effect on the airline industry.
The ultimate impact and associated cost to Delta of these legislative and regulatory developments related to PFAS, including firefighting foam, cannot be predicted at this time. Delta Air Lines, Inc. | 2025 Form 10-K 24 Item 1A. Risk Factors Future regulatory action concerning climate change, aircraft emissions and noise could have a significant effect on the airline industry.
In addition, some states have adopted legislation prohibiting the manufacture, sale, distribution and/or use of firefighting foam containing intentionally added PFAS, which may require the transition to alternative fire suppression systems. The ultimate impact and associated cost to Delta of these legislative and regulatory developments related to PFAS, including firefighting foam, cannot be predicted at this time.
In addition, some states have adopted legislation prohibiting the manufacture, sale, distribution and/or use of firefighting foam containing intentionally added PFAS, which may require the transition to alternative fire suppression systems. Delta has developed and is implementing plans to transition the fire suppression systems in affected aircraft maintenance hangars to systems that do not contain intentionally added PFAS.
Because certain CORSIA program details remain to be developed and could potentially be affected by political developments in participating countries or the results of the initial phases of the program, the impact of CORSIA cannot be predicted at this time. However, compliance with CORSIA is expected to increase operating costs for airlines that operate internationally.
Because CORSIA has not yet been implemented in the United States and could potentially be affected by political developments in participating countries or the results of the initial phases of the program, the impact of CORSIA cannot be predicted at this time.
Consolidation in the airline industry, changes in international alliances, the creation of immunized joint ventures and the rise of subsidized government-sponsored international carriers have altered and will continue to alter the competitive landscape in the industry, resulting in the formation of airlines and alliances with increased financial resources, more extensive global networks and competitive cost structures.
Consolidation, international alliances, immunized joint ventures and subsidized government-sponsored international carriers have shaped the competitive landscape in the industry, resulting in airlines and alliances with significant financial resources, extensive global networks and competitive cost structures. Delta Air Lines, Inc. | 2025 Form 10-K 22 Item 1A.
For example, we have established ambitious goals to reduce our greenhouse gas emissions. Achieving these ambitious goals will require significant capital investment from manufacturers and other stakeholders, as we are unable to achieve these goals using our existing fleet, current technologies and available fuel sources.
Our climate strategy and transition plan is continuing to develop and evolve. We have established ambitious goals to reduce our greenhouse gas emissions, which we are unable to achieve using our existing fleet, current technologies and available fuel sources.
In addition, a directive or other regulation that has a significant operational impact on us could have a material adverse impact on our financial results. Delta Air Lines, Inc. | 2024 Form 10-K 24 Item 1A.
We expect to continue incurring significant expenses to comply with the FAA’s regulations. In addition, a directive or other regulation that has a significant operational impact on us–including, for example, a temporary reduction in flights at high-traffic airports to address air traffic control staffing challenges–could have a material adverse impact on our financial results.
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Similar disease outbreaks or public health threats that may arise in the future could have similarly adverse effects on our business.
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AI‑enabled tools may also be used to generate, manipulate or amplify inaccurate, misleading or fabricated content, including social media posts, images or videos, which may be difficult to promptly identify or correct.
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Airlines are subject to extensive regulatory and legal compliance requirements that result in significant costs and may have material adverse effects on our business. There have also been recent legal developments in the United States that may change the way historical obligations have been interpreted or applied.
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However, compliance with CORSIA is expected to increase operating costs for airlines subject to the program that operate internationally.
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Unresolved Staff Comments ITEM 1B. UNRESOLVED STAFF COMMENTS None.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn addition to information provided in these meetings, members of our Board also have access to internal and external education on cybersecurity risks. The Board also benefits from the expertise of one of our members who has significant experience in management of cybersecurity companies.
Biggest changeIn 2025, the Audit Committee received updates on information security matters at all of its regular meetings. In addition to information provided in these meetings, all members of our Board also have access to internal and external education on cybersecurity risks.
We have established a dedicated Information Technology Risk team tasked with the goal of ensuring that risk remediation activities are carried out consistently and that risk remediation controls are operating as intended and within established thresholds. Enterprise-wide training is a vital component to reducing risk and protecting customers, employees and company information.
We have established a dedicated Information Technology Risk team tasked with the goal of ensuring that risk remediation activities are carried out consistently and that risk remediation controls are operating as intended. Enterprise-wide training is a vital component to reducing risk and protecting customers, employees and company information.
We describe whether and how risks related to cybersecurity threats are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition, in Item 1A of this Annual Report on Form 10-K, which disclosures are incorporated by reference in this Item 1C. Delta Air Lines, Inc. | 2024 Form 10-K 27 Item 1C.
We describe whether and how risks related to cybersecurity threats are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition, in Item 1A of this Annual Report on Form 10-K, which disclosures are incorporated by reference in this Item 1C. Delta Air Lines, Inc. | 2025 Form 10-K 26 Item 1C.
Our cybersecurity incident response plan includes processes for communication about cybersecurity incidents to appropriate levels of management, including to the Risk Council and Leadership Committee, as well as the Audit Committee and the Board, as merited. Delta Air Lines, Inc. | 2024 Form 10-K 28 Item 2. Properties
Our cybersecurity incident response plan includes processes for communication about cybersecurity incidents to appropriate levels of management, including to the Delta Risk Council and Delta Leadership Committee, as well as the Audit Committee and the Board, as merited. Delta Air Lines, Inc. | 2025 Form 10-K 27 Item 2. Properties
Our information security team is led by our Senior Vice President & Chief Information Security Officer, who reports directly to our Executive Vice President - Chief Information Officer. Leadership of the information security team has extensive dedicated cybersecurity experience.
The Board also benefits from the expertise of one of our members who has significant experience in management of cybersecurity companies. Our information security team is led by our Senior Vice President & Chief Information Security Officer, who reports directly to our Executive Vice President - Chief Information Officer. Leadership of the information security team has extensive dedicated cybersecurity experience.
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In 2024, the Audit Committee received updates on information security matters at two of its regular meetings. In addition, our Chief Information Officer, our Chief Information Security Officer, other members of our information technology leadership team provided a general overview of information technology matters, including cybersecurity, in a special session with all members of our Board of Directors.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeDuring 2024, we entered into a purchase agreement with Airbus for 20 A350-1000 aircraft, with an option to purchase an additional 20 widebody aircraft. Deliveries of these aircraft are scheduled to begin in 2026. Also during 2024 we amended our purchase agreement with Boeing and received an updated delivery schedule for our Boeing 737-10 orders.
Biggest changeDeliveries of the B-787-10 aircraft will begin in 2031. On January 27, 2026, we entered into a definitive agreement with Airbus S.A.S. to purchase 16 Airbus A330-900 aircraft and 15 Airbus A350-900 aircraft, with an option to purchase up to an additional 20 widebody aircraft.
ITEM 2. PROPERTIES Flight Equipment Our operating aircraft fleet, purchase commitments and options at December 31, 2024 are summarized in the following table.
ITEM 2. PROPERTIES Flight Equipment Our operating aircraft fleet, purchase commitments and options at December 31, 2025 are summarized in the following table.
The following table summarizes the aircraft operated by regional carriers on our behalf at December 31, 2024. Regional aircraft information by fleet type and carrier Fleet Type (1)(2) Carrier CRJ-700 CRJ-900 Embraer 170 Embraer 175 Total Endeavor Air, Inc.
The following table summarizes the aircraft operated by regional carriers on our behalf at December 31, 2025. Regional aircraft information by fleet type and carrier Fleet Type (1) Carrier CRJ-700 CRJ-900 Embraer 170 Embraer 175 Total Endeavor Air, Inc.
We lease ticket counters, gate areas, operating facilities and other terminal space in most of the airports that we serve. At most airports, we have entered into use agreements which provide for the non-exclusive use of runways, taxiways and other improvements and facilities. Landing fees under these agreements normally are based on the number of landings and weight of aircraft.
At most airports, we have entered into use agreements which provide for the non-exclusive use of runways, taxiways and other improvements and facilities. Landing fees under these agreements normally are based on the number of landings and weight of aircraft.
Mainline aircraft information by fleet type Current Fleet (1) Commitments Fleet Type Owned Finance Lease Operating Lease Total Average Age (Years) Purchase Options A220-100 45 — — 45 5.0 — — A220-300 28 — — 28 2.2 72 — A319-100 57 — — 57 22.8 — — A320-200 55 — — 55 28.9 — — A321-200 70 15 42 127 6.0 — — A321-200neo 69 — — 69 1.4 86 70 A330-200 11 — — 11 19.8 — — A330-300 28 — 3 31 15.9 — — A330-900neo 25 2 5 32 2.6 7 10 A350-900 24 — 11 35 4.9 9 10 A350-1000 — — — — — 20 — B-717-200 48 32 — 80 23.3 — — B-737-800 73 4 — 77 23.3 — — B-737-900ER 114 — 49 163 9.0 — — B-737-10 — — — — — 100 30 B-757-200 88 — — 88 26.9 — — B-757-300 16 — — 16 21.9 — — B-767-300ER 40 — — 40 28.4 — — B-767-400ER 21 — — 21 24.0 — — Total 812 53 110 975 14.9 294 120 (1) Excludes certain aircraft we own or lease that are operated by regional carriers on our behalf shown in the table below.
Mainline aircraft information by fleet type Current Fleet (1) Commitments Fleet Type Owned Finance Lease Operating Lease Total Average Age (Years) Purchase Options A220-100 45 — — 45 6.0 — — A220-300 36 — — 36 2.7 64 — A319-100 57 — — 57 23.8 — — A320-200 46 — — 46 29.0 — — A321-200 77 8 42 127 7.0 — — A321-200neo 87 — — 87 2.0 68 70 A330-200 11 — — 11 20.8 — — A330-300 28 — 3 31 16.9 — — A330-900neo 32 2 5 39 3.0 — 10 A350-900 29 — 11 40 5.3 4 10 A350-1000 — — — — — 20 — B-717-200 80 — — 80 24.3 — — B-737-800 73 4 — 77 24.3 — — B-737-900ER 119 6 38 163 10.0 — — B-737-10 — — — — — 100 30 B-757-200 76 — — 76 27.1 — — B-757-300 16 — — 16 22.9 — — B-767-300ER 37 — — 37 29.0 — — B-767-400ER 21 — — 21 25.0 — — Total 870 20 99 989 14.8 256 120 (1) Excludes certain aircraft we own or lease that are operated by regional carriers on our behalf shown in the table below.
Ground Facilities Airline Operations We lease most of the land and buildings that we occupy. Our largest aircraft maintenance base, various equipment maintenance, cargo, flight kitchen and training facilities and most of our principal offices are located at or near the Atlanta airport on land leased from the City of Atlanta.
Our largest aircraft maintenance base, various equipment maintenance, cargo, flight kitchen and training facilities and most of our principal offices are located at or near the Atlanta airport on land leased from the City of Atlanta. We lease ticket counters, gate areas, operating facilities and other terminal space in most of the airports that we serve.
Our contractual purchase commitments for additional aircraft as of December 31, 2024 are detailed in the following table: Aircraft purchase commitments by fleet type Delivery in Calendar Years Ending Aircraft Purchase Commitments (1) 2025 2026 2027 After 2027 Total A220-300 10 16 22 24 72 A321-200neo 21 29 30 6 86 A330-900neo 7 — — — 7 A350-900 5 4 — — 9 A350-1000 — 4 4 12 20 B-737-10 — 20 20 60 100 Total 43 73 76 102 294 (1) The timing of these commitments is based on our contractual agreements with the aircraft manufacturers and remains uncertain due to supply chain, manufacturing and regulatory constraints.
Our contractual purchase commitments for additional aircraft as of December 31, 2025 are detailed in the following table: Aircraft purchase commitments by fleet type Delivery in Calendar Years Ending Aircraft Purchase Commitments (1) 2026 2027 2028 After 2028 Total A220-300 24 18 10 12 64 A321-200neo 20 42 6 — 68 A350-900 4 — — — 4 A350-1000 — 8 12 — 20 B-737-10 — 27 39 34 100 Total 48 95 67 46 256 (1) The timing of these commitments is based on our contractual agreements with the aircraft manufacturers and remains uncertain due to supply chain, manufacturing and regulatory constraints.
Properties Aircraft Purchase Commitments As part of a multi-year effort, we have been investing in new aircraft to provide an improved customer experience, greater fuel efficiency that results in reduced carbon emissions, better operating economics and more premium products.
(2) Endeavor Air, Inc. is a wholly owned subsidiary of Delta. Delta Air Lines, Inc. | 2025 Form 10-K 28 Item 2. Properties Aircraft Purchase Commitments As part of a multi-year effort, we have been investing in new aircraft to provide an improved customer experience, more premium products, better operating economics and greater fuel efficiency.
(3) 9 122 — — 131 SkyWest Airlines, Inc. 7 36 — 86 129 Republic Airways, Inc. — — 11 46 57 Total 16 158 11 132 317 (1) We own 195 and have operating leases for two of these regional aircraft. The remainder are owned or leased by SkyWest Airlines, Inc. or Republic Airways, Inc.
(2) 19 125 — — 144 SkyWest Airlines, Inc. 5 32 — 87 124 Republic Airways, Inc. — — 11 46 57 Total 24 157 11 133 325 (1) We own 202 and have operating leases for three of these regional aircraft. The remainder are owned or leased by SkyWest Airlines, Inc. or Republic Airways, Inc.
The facilities include pipelines and terminal assets that allow the refinery to supply jet fuel to our airline operations throughout the Northeastern U.S., including our New York hubs at LaGuardia and JFK. Delta Air Lines, Inc. | 2024 Form 10-K 30 Item 3. Legal Proceedings
We own our reservations centers in Atlanta, Minnesota and North Dakota. Refinery Operations Our Monroe subsidiaries own and operate the Trainer refinery and related assets in Pennsylvania. The facilities include pipelines and terminal assets that allow the refinery to supply jet fuel to our airline operations throughout the northeastern U.S., including our New York City hubs at LaGuardia and JFK.
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(2) Excluded from the total operating count above are nine CRJ-700 and one CRJ-900 which are owned and temporarily parked as of December 31, 2024. (3) Endeavor Air, Inc. is a wholly owned subsidiary of Delta. Delta Air Lines, Inc. | 2024 Form 10-K 29 Item 2.
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In addition to the aircraft purchase commitments above, on January 12, 2026, we entered into a definitive agreement with The Boeing Company to acquire 30 Boeing 787-10 aircraft, with an option to purchase up to an additional 30 of the same aircraft. The B-787-10 aircraft will include GEnx engines manufactured by General Electric.
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We own our Atlanta reservations center, other real property in Atlanta and reservations centers in North Dakota and Minnesota. Refinery Operations Our Monroe subsidiaries own and operate the Trainer refinery and related assets in Pennsylvania.
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The A330-900 aircraft will be powered by the Trent 7000 engine and the A350-900 aircraft will utilize the Trent XWB-84 EP engine, both manufactured by Rolls-Royce. Deliveries of the aircraft will begin in 2029. Ground Facilities Airline Operations We lease most of the land and buildings that we occupy.
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Delta Air Lines, Inc. | 2025 Form 10-K 29 Item 3. Legal Proceedings

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeIn Fall 2023, we moved to certify the decision for an interlocutory appeal or for reconsideration, and briefing related to that motion is now complete. We believe the claims in these cases are without merit and are vigorously defending these lawsuits.
Biggest changeIn Fall 2023, we moved to certify the decision for an interlocutory appeal or for reconsideration, and in September 2025, the Court denied that motion in a brief decision. The case will proceed to class discovery. We believe the claims in these cases are without merit and are vigorously defending these lawsuits.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeShares purchased / withheld from employee awards during the December 2024 quarter Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value (in millions) of Shares That May Yet Be Purchased Under the Plan or Programs October 2024 9,168 $ 49.98 9,168 $ — November 2024 2,845 $ 63.62 2,845 $ — December 2024 2,383 $ 63.02 2,383 $ — Total 14,396 14,396
Biggest changeShares purchased / withheld from employee awards during the December 2025 quarter Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value (in millions) of Shares That May Yet Be Purchased Under the Plan or Programs October 2025 7,646 $ 56.17 7,646 $ 1,000 November 2025 6,160 $ 61.88 6,160 $ 1,000 December 2025 3,583 $ 66.61 3,583 $ 1,000 Total 17,389 17,389
Market Information Issuer Purchases of Equity Securities The following table presents information with respect to purchases of common stock we made during the December 2024 quarter. The table reflects shares withheld from employees to satisfy certain tax obligations due in connection with grants of stock under the Delta Air Lines, Inc. Performance Compensation Plan (the "Plan").
Item 5. Market Information Issuer Purchases of Equity Securities The following table presents information with respect to purchases of common stock we made during the December 2025 quarter. The table reflects shares withheld from employees to satisfy certain tax obligations due in connection with grants of stock under the Delta Air Lines, Inc. Performance Compensation Plan (the "Plan").
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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is listed on the New York Stock Exchange ("NYSE") under the trading symbol DAL. Holders As of January 31, 2025, there were approximately 2,100 holders of record of our common stock.
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In the June 2025 quarter, the Board of Directors authorized a $1.0 billion opportunistic share repurchase program open through June 30, 2028. No shares were repurchased under this program through December 31, 2025.
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Dividends After suspending dividends in March 2020, our Board of Directors re-instated a quarterly dividend program in 2023 with $0.10 per share dividend payments in both the September and December quarters.
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During 2024, we continued our quarterly dividend program with $0.10 per share payments in the March 2024 and June 2024 quarters, and $0.15 per share payments in the September 2024 and December 2024 quarters.
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The Board expects to be able to continue to pay cash dividends for the foreseeable future, subject to applicable limitations under Delaware law and compliance with covenants in certain of our credit facilities. Dividend payments are dependent upon our results of operations, financial condition, cash requirements, future prospects and other factors deemed relevant by the Board of Directors.
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Stock Performance Graph The following graph compares the cumulative total returns during the period from December 31, 2019 to December 31, 2024 of our common stock to the Standard & Poor's 500 Stock Index and the NYSE ARCA Airline Index.
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The comparison assumes $100 was invested on December 31, 2019 in each of our common stock and the indices and assumes that all dividends were reinvested. Delta Air Lines, Inc. | 2024 Form 10-K 32 Item 5.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeThe CrowdStrike-caused outage and operational recovery resulted in approximately $170 million of additional operating expenses primarily due to customer expense reimbursements and crew-related costs. Fuel expense was approximately $50 million lower than it would have been as a result of the flight cancellations. Total operating expense, adjusted (a non-GAAP financial measure) increased $2.7 billion, or 5%, compared to 2023.
Biggest changeIn addition, approximately $170 million of additional operating expenses were incurred in 2024 associated with the Crowdstrike-caused outage primarily due to customer expense reimbursements and crew-related costs. Total operating expense, adjusted (a non-GAAP financial measure) increased $1.5 billion, or 3%, compared to 2024. Current year adjustments were primarily to exclude expenses related to refinery sales to third parties.
Discussion and analysis of 2022 and year-to-year comparisons between 2023 and 2022 not included in this Form 10-K can be found in "Item 7. Management's Discussion and Analysis" of our Annual Report on Form 10-K for the year ended December 31, 2023.
Discussion and analysis of 2023 and year-to-year comparisons between 2024 and 2023 not included in this Form 10-K can be found in "Item 7. Management's Discussion and Analysis" of our Annual Report on Form 10-K for the year ended December 31, 2024.
As a result of our strong performance in 2023 and 2024, we paid profit sharing of $1.4 billion in February 2024 to our employees and will pay another $1.4 billion in February 2025 in recognition of these achievements. Revenue.
As a result of our strong performance in 2024 and 2025, we paid profit sharing of $1.4 billion in February 2025 to our employees and will pay another $1.3 billion in February 2026 in recognition of these achievements. Revenue.
ITEM 6. (RESERVED) Delta Air Lines, Inc. | 2024 Form 10-K 33 Item 7. MD&A ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section of Form 10-K does not address certain items regarding the year ended December 31, 2022.
ITEM 6. (RESERVED) Delta Air Lines, Inc. | 2025 Form 10-K 32 Item 7. MD&A ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section of Form 10-K does not address certain items regarding the year ended December 31, 2023.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited Consolidated Financial Statements and the related notes and other financial information as well as the material risk factors included elsewhere in this Annual Report on Form 10-K. 2024 Financial Overview Our 2024 operating income was $6.0 billion, an improvement of $474 million compared to 2023, and operating income, adjusted (a non-GAAP financial measure) was $6.0 billion, a decrease of $318 million compared to 2023.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited Consolidated Financial Statements and the related notes and other financial information as well as the material risk factors included elsewhere in this Annual Report on Form 10-K. 2025 Financial Overview Our 2025 operating income was $5.8 billion, a decrease of $173 million compared to 2024, and operating income, adjusted (a non-GAAP financial measure) was $5.8 billion, a decrease of $212 million compared to 2024.
Our total operating cost per available seat mile ("CASM") of 19.30 cents was comparable to 2023, primarily due to lower fuel expense and a 6% increase in capacity offset by higher expenses associated with the increase in capacity and related to refinery sales to third parties.
Our total operating cost per available seat mile ("CASM") of 19.31 cents was comparable to 2024, primarily due to lower fuel expense and a 3% increase in capacity offset by higher employee costs.
Total operating expense increased $3.1 billion, or 6%, compared to 2023, primarily resulting from higher employee-related costs from increased wages and related expenses, higher volume-related expenses associated with the 6% increase in capacity and an increase in expenses related to refinery sales to third parties.
Adjustments were to exclude refinery sales to third parties. Operating Expense. Total operating expense increased $1.9 billion, or 3%, compared to 2024, primarily due to higher employee costs from increased wages, costs associated with a 3% increase in capacity, and higher expenses related to refinery sales to third parties. These increases were partially offset by lower aircraft fuel costs.
Non-fuel unit costs ("CASM-Ex", a non-GAAP financial measure), which excludes fuel, expenses related to refinery sales to third parties and other items, increased 2.8% to 13.54 cents compared to 2023. Non-Operating Results.
Non-fuel unit costs ("CASM-Ex", a non-GAAP financial measure), which excludes fuel, expenses related to refinery sales to third parties and other items, increased 2.4% to 13.86 cents compared to 2024, which was in line with our long-term target of low-single digit growth, on higher employee costs and investments in the customer experience. Non-Operating Results.
Compared to 2023, our 2024 operating revenue increased $3.6 billion, or 6%, primarily due to a 6% increase in capacity driven by continued strength in demand for domestic and international travel and premium products, as well as an increase in revenue related to refinery sales to third parties.
Compared to 2024, our 2025 operating revenue increased $1.7 billion, or 3%, primarily due to a 3% increase in capacity driven by continued strength in demand for premium products, particularly from corporate customers, growth in loyalty travel awards, increased refinery sales to third parties and growth of our Delta TechOps third-party maintenance, repair and overhaul ("MRO") business.
Operating income, adjusted in 2023 excluded one-time pilot agreement expenses and other items. The changes in operating income and operating income, adjusted are primarily resulting from increases in both revenue and operating expenses as described below.
The decreases in operating income and operating income, adjusted primarily result from nearly offsetting increases in both revenue and operating expenses, as described below.
Total non-operating expense was $1.3 billion in 2024, compared to total non-operating income of $87 million in 2023, primarily due to mark-to-market gains on certain of our equity investments in 2023 partially offset by lower expenses in 2024 associated with our debt reduction initiatives. Cash Flow.
Total non-operating income was $363 million in 2025, compared to total non-operating expense of $1.3 billion in 2024, primarily due to mark-to-market gains on certain of our equity investments in 2025 compared to losses in 2024. Cash Flow. During 2025, operating activities generated $8.3 billion, primarily from ticket sales and the sale of SkyMiles to our partners.
Also, during 2024 we had cash outflows of approximately $4.0 billion primarily related to repayment of our debt and finance leases, including approximately $1.1 billion for early repayments and the remainder from scheduled maturities.
After adjusting for our strategic investment in WestJet and certain other items, these results generated $4.6 billion of free cash flow (a non-GAAP financial measure) in 2025. Also, during 2025 we had financing cash outflows of $4.8 billion related to repayment of our debt and finance leases, including $2.9 billion for early repayments and the remainder for scheduled maturities.
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, 2024 was $6.1 billion. The non-GAAP financial measures of operating income, adjusted, total revenue, adjusted, total operating expense, adjusted, CASM-Ex and free cash flow used above are defined and reconciled in "Supplemental Information" below.
The non-GAAP financial measures of operating income, adjusted, total revenue, adjusted, total operating expense, adjusted, CASM-Ex and free cash flow used above are defined and reconciled in "Supplemental Information" below. Delta Air Lines, Inc. | 2025 Form 10-K 33
During 2024, operating activities generated $8.0 billion, primarily from ticket sales and the sale of SkyMiles to our partners. Total cash sales of SkyMiles to American Express were $7.4 billion during 2024, an increase of approximately 8% compared to 2023.
Remuneration from American Express related to the SkyMiles program were $8.2 billion during 2025, an increase of approximately 11% compared to 2024. Investing activities resulted in net cash outflows of approximately $4.2 billion, primarily for capital expenditures.
Total revenue, adjusted (a non-GAAP financial measure) increased in 2024 by $2.3 billion, or 4.3%, compared to 2023. Adjustments were to exclude revenue related to refinery sales to third parties. In July 2024, our operations were significantly disrupted by the CrowdStrike-caused outage.
In addition, revenue increased year over year due to the Crowdstrike-caused outage in 2024, which led to a direct revenue impact of approximately $380 million related to approximately 7,000 flight cancellations over five days. Total revenue, adjusted (a non-GAAP financial measure) increased in 2025 by $1.3 billion, or 2.3%, compared to 2024.
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We estimate that this disruption led to a direct revenue impact of approximately $380 million related to approximately 7,000 flight cancellations over five days, which reduced our expected year-over-year capacity growth by approximately 0.4 percentage points during 2024. Operating Expense.
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Our proceeds from long-term obligations primarily related to the issuance of $2.0 billion in aggregate principal amount of unsecured notes. 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, 2025 was $7.4 billion.
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Current year adjustments were primarily to exclude expenses related to refinery sales to third parties, while prior year adjustments also excluded the pilot agreement and related expenses.
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Investing activities resulted in net cash outflows of approximately $3.7 billion, primarily for $5.1 billion of capital expenditures, partially offset by $1.1 billion of net redemptions of short-term investments. After adjusting for certain activities, these results generated $3.4 billion of free cash flow (a non-GAAP financial measure) in 2024.
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Delta Air Lines, Inc. | 2024 Form 10-K 34 Item 7.
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MD&A - Results of Operations Results of Operations Operating Revenue Year Ended December 31, Increase (Decrease) % Increase (Decrease) (in millions) (1) 2024 2023 Ticket - Main cabin $ 24,497 $ 24,477 $ 20 — % Ticket - Premium products 20,599 19,119 1,480 8 % Loyalty travel awards 3,841 3,462 379 11 % Travel-related services 1,957 1,851 106 6 % Total passenger revenue $ 50,894 $ 48,909 $ 1,985 4 % Cargo 822 723 99 14 % Other 9,927 8,416 1,511 18 % Total operating revenue $ 61,643 $ 58,048 $ 3,595 6 % TRASM (cents) 21.37 ¢ 21.34 ¢ 0.03 ¢ — % Third-party refinery sales (2) (1.61) (1.24) (0.37) 30 % TRASM, adjusted (cents) 19.76 ¢ 20.10 ¢ (0.34) ¢ (1.6) % (1) Total amounts in the table above may not calculate exactly due to rounding.
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(2) For additional information on adjustments to TRASM, see "Supplemental Information" below.
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Operating Revenue Our operating revenue increased $3.6 billion, or 6%, compared to 2023 related to a 6% increase in capacity resulting from continued strength in demand for domestic and international travel, particularly for our premium products (including Delta One, First Class, Delta Premium Select and Delta Comfort+), as well as increased revenue related to refinery sales to third parties and loyalty travel awards.
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Total revenue per available seat mile ("TRASM") remained flat as revenues increased at the same rate as capacity. See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales recorded in other revenue, during each period. Passenger Revenue by Geographic Region Increase (Decrease) vs.
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Year Ended December 31, 2023 (in millions) Year Ended December 31, 2024 Passenger Revenue RPMs (Traffic) ASMs (Capacity) Passenger Mile Yield PRASM Load Factor Domestic $ 35,226 4 % 5 % 5 % (1) % (1) % — pts Atlantic 9,133 1 % 1 % — % — % 1 % 1 pt Latin America 3,995 5 % 14 % 15 % (8) % (8) % — pts Pacific 2,540 22 % 30 % 32 % (6) % (7) % (1) pt Total passenger revenue $ 50,894 4 % 6 % 6 % (2) % (2) % — pts Domestic Domestic passenger unit revenue ("PRASM") for 2024 decreased 1% compared to 2023 due to a 4% increase in revenue on a 5% increase in capacity.
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Domestic revenue in 2024 was above 2023 levels as we experienced strong demand across the domestic network.
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We generated higher growth in premium products revenue compared to main cabin with the delivery of new aircraft that include more premium seat capacity and an increase in yield in premium products compared to main cabin, as we see more consumers choosing these premium offerings. Delta Air Lines, Inc. | 2024 Form 10-K 35 Item 7.
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MD&A - Results of Operations International International passenger revenue for 2024 increased 5% with capacity up 8% compared to 2023. Revenue in each international region increased in 2024, with the Pacific growing at the greatest rate as we continue to restore capacity in the region.
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Demand for transatlantic travel remained at high levels throughout 2024 with revenue increasing slightly on flat capacity compared to 2023. Revenue growth in the Atlantic was led by demand for travel to European leisure destinations and our premium product offerings.
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Latin America region revenue increased during 2024 compared to 2023, due to strong demand for leisure destinations in South America and the Caribbean on a 15% increase in capacity. We continued to build on the strength of our joint venture with LATAM in South America through additional routes, greater network connectivity, and a more streamlined airport experience.
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The Pacific region benefited from improved demand for travel to the region, particularly to South Korea and Japan, on 32% increased capacity. Our performance in South Korea benefited from the strength of our joint venture partnership with Korean Air, which enables passengers to more seamlessly connect to over 80 destinations in Asia.
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Revenue from flights to Japan increased due to higher demand for travel from the United States due in part to weakness in the Japanese Yen compared to the U.S. dollar.
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Other Revenue Year Ended December 31, Increase (Decrease) % Increase (Decrease) (in millions) 2024 2023 Refinery $ 4,642 $ 3,379 $ 1,263 37 % Loyalty program 3,297 3,093 204 7 % Ancillary businesses 772 840 (68) (8) % Miscellaneous 1,216 1,104 112 10 % Total other revenue $ 9,927 $ 8,416 $ 1,511 18 % Refinery.
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This represents refinery sales of non-jet fuel products to third parties. These sales increased $1.3 billion compared to 2023. 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.
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This relates to revenues from brand usage by third parties and other performance obligations embedded in miles sold, as well as redemption of miles for non-air travel and other awards. These revenues are mainly driven by customer spend on American Express cards and new cardholder acquisitions.
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Revenues from our relationship with American Express increased compared to 2023 driven by co-brand card spend growth and card account acquisitions. Ancillary Businesses. This includes revenues from aircraft maintenance services we provide to third parties and our vacation package operations. Miscellaneous.
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This is primarily composed of revenues related to lounge access, including access provided to certain American Express cardholders, codeshare agreements and certain other commercial relationships. The increase in revenues was primarily driven by codeshare agreements and other commercial relationships. Delta Air Lines, Inc. | 2024 Form 10-K 36

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeMD&A - Supplemental Information Total revenue, adjusted reconciliation Year Ended December 31, (in millions) 2024 2023 Total revenue $ 61,643 $ 58,048 Adjusted for: Third-party refinery sales (4,642) (3,379) Total revenue, adjusted $ 57,001 $ 54,669 Operating expense, adjusted reconciliation Year Ended December 31, (in millions) 2024 2023 Operating expense $ 55,648 $ 52,527 Adjusted for: Third-party refinery sales (4,642) (3,379) MTM adjustments and settlements on hedges (21) 52 One-time pilot agreement expenses — (864) Operating expense, adjusted $ 50,985 $ 48,335 Fuel expense, adjusted and Average fuel price per gallon, adjusted reconciliations Average Price Per Gallon Year Ended December 31, Year Ended December 31, (in millions, except per gallon data) 2024 2023 2024 2023 Total fuel expense $ 10,566 $ 11,069 $ 2.57 $ 2.82 Adjusted for: MTM adjustments and settlements on hedges (21) 52 (0.01) 0.01 Total fuel expense, adjusted $ 10,544 $ 11,121 $ 2.56 $ 2.83 TRASM, adjusted reconciliation Year Ended December 31, (in cents) 2024 2023 TRASM 21.37 ¢ 21.34 ¢ Adjusted for: Third-party refinery sales (1.61) (1.24) TRASM, adjusted 19.76 ¢ 20.10 ¢ CASM-Ex reconciliation Year Ended December 31, (in cents) 2024 2023 CASM 19.30 ¢ 19.31 ¢ Adjusted for: Aircraft fuel and related taxes (3.66) (4.07) Third-party refinery sales (1.61) (1.24) Profit sharing (0.48) (0.51) One-time pilot agreement expenses — (0.32) CASM-Ex 13.54 ¢ 13.17 ¢ Delta Air Lines, Inc. | 2024 Form 10-K 48 Item 7.
Biggest changeMD&A - Supplemental Information Fuel expense, adjusted and Average fuel price per gallon, adjusted reconciliations Average Price Per Gallon Year Ended December 31, Year Ended December 31, (in millions, except per gallon data) 2025 2024 2025 2024 Total fuel expense $ 9,819 $ 10,566 $ 2.30 $ 2.57 Adjusted for: MTM adjustments and settlements on hedges 17 (21) — (0.01) Total fuel expense, adjusted $ 9,836 $ 10,544 $ 2.30 $ 2.56 TRASM, adjusted reconciliation Year Ended December 31, (in cents) 2025 2024 TRASM 21.26 ¢ 21.37 ¢ Adjusted for: Third-party refinery sales (1.70) (1.61) TRASM, adjusted 19.56 ¢ 19.76 ¢ CASM-Ex reconciliation Year Ended December 31, (in cents) 2025 2024 CASM 19.31 ¢ 19.30 ¢ Adjusted for: Aircraft fuel and related taxes (3.29) (3.66) Third-party refinery sales (1.70) (1.61) Profit sharing (0.45) (0.48) CASM-Ex 13.86 ¢ 13.54 ¢ Delta Air Lines, Inc. | 2025 Form 10-K 48 Item 7.
Customers earn miles based on their spending with participating companies, such as credit card, ridesharing, retail, car rental and hotel companies, with which we have marketing agreements to sell miles. Our contracts to sell miles under these marketing agreements have multiple performance obligations.
Customers earn miles based on their spending with participating companies, such as credit card, car rental, ridesharing, retail, and hotel companies, with which we have marketing agreements to sell miles. Our contracts to sell miles under these marketing agreements have multiple performance obligations.
Changes in life expectancy may significantly impact our benefit obligations and future net periodic cost/(benefit). Each year we review information published by the Society of Actuaries and other publicly available information to develop our best estimate of life expectancy for purposes of measuring pension and other postretirement and postemployment benefit obligations. Funding.
Changes in life expectancy may significantly impact our benefit obligations and future net periodic cost. Each year we review information published by the Society of Actuaries and other publicly available information to develop our best estimate of life expectancy for purposes of measuring pension and other postretirement and postemployment benefit obligations.
Full-time equivalent employees exclude employees of regional carriers that we do not own. (2) Non-GAAP financial measures are defined and reconciled to TRASM, CASM and average fuel price per gallon, respectively, in "Supplemental Information" below. (3) Includes the impact of refinery segment results and fuel hedge activity. Delta Air Lines, Inc. | 2024 Form 10-K 39 Item 7.
Full-time equivalent employees exclude employees of regional carriers that we do not own. (2) Non-GAAP financial measures are defined and reconciled to TRASM, CASM and average fuel price per gallon, respectively, in "Supplemental Information" below. (3) Includes the impact of refinery segment results and fuel hedge activity. Delta Air Lines, Inc. | 2025 Form 10-K 39 Item 7.
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, 2024. 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.
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, 2025. 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.
See Note 9 of the Notes to the Consolidated Financial Statements for more information on our employee benefit obligations. Profit Sharing. 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.
See Note 8 of the Notes to the Consolidated Financial Statements for more information on our employee benefit obligations. Profit Sharing. 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.
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, 2024, as a result of an increase in the amount of revenue deferred associated with the miles earned. Sale of Miles to Participating Companies.
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, 2025, as a result of an increase in the amount of revenue deferred associated with the miles earned. Sale of Miles to Participating Companies.
In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. We pay profit sharing annually in February. We paid $1.4 billion in 2024 to our employees in recognition of their contributions toward meeting our financial goals.
In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. We pay profit sharing annually in February. We paid $1.4 billion in 2025 to our employees in recognition of their contributions toward meeting our financial goals.
We were in compliance with the covenants in our debt agreements at December 31, 2024. See Note 6 of the Notes to the Consolidated Financial Statements for more information on the covenants in our debt agreements. Delta Air Lines, Inc. | 2024 Form 10-K 42 Item 7.
We were in compliance with the covenants in our debt agreements at December 31, 2025. See Note 6 of the Notes to the Consolidated Financial Statements for more information on the covenants in our debt agreements. Delta Air Lines, Inc. | 2025 Form 10-K 42 Item 7.
This is achieved by investing in a globally diversified mix of public and private equity, fixed income, real assets, hedge funds and other assets and instruments. The expected long-term rate of return on our defined benefit pension plan assets is 6.97%.
This is achieved by investing in a globally diversified mix of public and private equity, fixed income, real assets, hedge funds and other assets and instruments. The expected long-term rate of return on our defined benefit pension plan assets is 6.96%.
We sell miles to American Express which are then provided to their customers under the co-brand credit card program and the Membership Rewards program. Delta Air Lines, Inc. | 2024 Form 10-K 43 Item 7.
We sell miles to American Express which are then provided to their customers under the co-brand credit card program and the Membership Rewards program. Delta Air Lines, Inc. | 2025 Form 10-K 43 Item 7.
TRASM, adjusted - The amount of total revenue earned per ASM during a reporting period, adjusted for the item shown above in "Supplemental Information." Delta Air Lines, Inc. | 2024 Form 10-K 50 Item 7A. Market Risk
TRASM, adjusted - The amount of total revenue earned per ASM during a reporting period, adjusted for the item shown above in "Supplemental Information." Delta Air Lines, Inc. | 2025 Form 10-K 50 Item 7A. Market Risk
We determine our discount rate on our measurement date primarily by reference to annualized rates earned on high-quality fixed income investments and yield-to-maturity analyses specific to our estimated future benefit payments for each plan. We used a weighted average discount rate to value the obligations of 5.71% and 5.31% at December 31, 2024 and 2023, respectively.
We determine our discount rate on our measurement date primarily by reference to annualized rates earned on high-quality fixed income investments and yield-to-maturity analyses specific to our estimated future benefit payments for each plan. We used a weighted average discount rate to value the obligations of 5.50% and 5.71% at December 31, 2025 and 2024, respectively.
Miles are redeemable by customers for air travel on Delta and other participating airlines, access to Delta Sky Club and other program awards. To facilitate transactions with participating companies, we sell miles to non-airline businesses and other airlines.
Miles are redeemable by customers for air travel on Delta and other participating airlines, access to Delta Sky Clubs, and other program awards. To facilitate transactions with participating companies, we sell miles to non-airline businesses and other airlines.
During the year ended December 31, 2024, we recorded $1.4 billion in profit sharing expense based on 2024 pre-tax profit, which we will pay to employees in February 2025. Delta Air Lines, Inc. | 2024 Form 10-K 40 Item 7. MD&A - Financial Condition and Liquidity Contract Carrier Obligations.
During the year ended December 31, 2025, we recorded $1.3 billion in profit sharing expense based on 2025 pre-tax profit, which we will pay to employees in February 2026. Delta Air Lines, Inc. | 2025 Form 10-K 40 Item 7. MD&A - Financial Condition and Liquidity Contract Carrier Obligations.
We determine our best estimate of the selling prices by using a discounted cash flow analysis using multiple inputs and assumptions, including (1) the expected number of miles awarded and number of miles redeemed, (2) ETV for the award travel obligation adjusted for mileage breakage, (3) published rates on our website for baggage fees, Delta Sky Club lounge access and other benefits while traveling on Delta, (4) brand value (using estimated royalties generated from the use of our brand) and (5) volume discounts provided to certain partners.
We determine our best estimate of the selling prices by using a discounted cash flow analysis using multiple inputs and assumptions, including (1) the expected number of miles awarded and number of miles redeemed, (2) ETV for the award travel obligation adjusted for mileage breakage, (3) published rates on our website for baggage fees, lounge access and priority boarding while traveling on Delta, (4) brand value (using estimated royalties generated from the use of our brand) and (5) volume discounts provided to certain partners.
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.
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.
Revenue allocated to services performed in conjunction with a passenger’s flight, such as baggage fee waivers, is recognized as travel-related services in passenger revenue when the related service is performed. Revenue allocated to Delta Sky Club lounge access is recognized as miscellaneous in other revenue as access is provided.
Revenue allocated to services performed in conjunction with a passenger’s flight, such as baggage fee waivers, is recognized as travel-related services in passenger revenue when the related service is performed. Revenue allocated to lounge access is recognized as miscellaneous in other revenue as access is provided.
For more information about our income taxes, see Note 11 of the Notes to the Consolidated Financial Statements. Delta Air Lines, Inc. | 2024 Form 10-K 38 Item 7. MD&A - Refinery Segment Refinery Segment The refinery operated by our wholly owned subsidiary Monroe primarily produces gasoline, diesel and jet fuel.
For more information about our income taxes, see Note 10 of the Notes to the Consolidated Financial Statements. Delta Air Lines, Inc. | 2025 Form 10-K 37 Item 7. MD&A - Refinery Segment Refinery Segment The refinery operated by our wholly owned subsidiary, Monroe, primarily produces gasoline, diesel and jet fuel.
Sources and Uses of Liquidity Operating Activities Operating activities in 2024 provided $8.0 billion of cash flow compared to $6.5 billion in 2023. We expect to continue generating cash flows from operations during 2025. Our operating cash flow is impacted by the following factors: Seasonality of Advance Ticket Sales .
Sources and Uses of Liquidity Operating Activities Operating activities in 2025 provided $8.3 billion of cash flow compared to $8.0 billion in 2024. We expect to continue generating cash flows from operations during 2026. Our operating cash flow is impacted by the following factors: Seasonality of Advance Ticket Sales .
Our capital expenditures (i.e., property and equipment additions in our Consolidated Statements of Cash Flows ("cash flows statement")) were $5.1 billion and $5.3 billion in 2024 and 2023, respectively. Our capital expenditures are primarily related to the purchases of aircraft, airport construction projects (discussed below), fleet modifications and technology enhancements.
Our capital expenditures (i.e., property and equipment additions in our Consolidated Statements of Cash Flows ("cash flows statement")) were $4.5 billion and $5.1 billion in 2025 and 2024, respectively. Our capital expenditures are primarily related to the purchases of aircraft, fleet modifications, airport construction projects and technology enhancements.
We recognize mileage breakage proportionally during the period in which the remaining miles are actually redeemed. At December 31, 2024, the aggregate deferred revenue balance associated with the SkyMiles program was $8.8 billion.
We recognize mileage breakage proportionally during the period in which the remaining miles are actually redeemed. At December 31, 2025, the aggregate deferred revenue balance associated with the SkyMiles program was $9.3 billion.
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.
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 8 of the Notes to the Consolidated Financial Statements. Recent Accounting Standards Recently Adopted Standards Income Taxes.
MD&A - Financial Condition and Liquidity Financial Condition and Liquidity As of December 31, 2024, we had $6.1 billion in cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities ("liquidity").
MD&A - Financial Condition and Liquidity Financial Condition and Liquidity As of December 31, 2025, we had $7.4 billion in cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities ("liquidity").
As described further in Note 6 of the Notes to the Consolidated Financial Statements, as of December 31, 2024, scheduled maturities of our debt in 2025 are $1.8 billion, with maturities from 2026 through 2029 ranging between $600 million and $2.3 billion annually. As of December 31, 2024, scheduled maturities after 2029 aggregate to $6.6 billion.
As described further in Note 6 of the Notes to the Consolidated Financial Statements, as of December 31, 2025, scheduled maturities of our debt in 2026 are $1.4 billion, with maturities from 2027 through 2030 ranging between $600 million and $3.5 billion annually. As of December 31, 2025, scheduled maturities after 2030 aggregate to $4.8 billion.
Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. Total cash sales to American Express were $7.4 billion during 2024, an increase of 8% compared to the prior year. See Note 2 of the Notes to the Consolidated Financial Statements for further information regarding the cash sales from marketing agreements. Fuel .
Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. Remuneration from American Express was $8.2 billion during 2025, an increase of 11% compared to the prior year. See Note 2 of the Notes to the Consolidated Financial Statements for further information regarding the cash sales from marketing agreements. Fuel .
Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts settled during the applicable period. • One-time pilot agreement expenses.
Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts settled during the applicable period. • Third-party refinery sales.
During 2024, we continued our quarterly dividend program with $0.10 per share payments in the March 2024 and June 2024 quarters and $0.15 per share payments in the September 2024 and December 2024 quarters. Total dividend payments during the year ended December 31, 2024 were $321 million.
During 2025, we continued our quarterly dividend program with $0.15 per share payments in the March 2025 and June 2025 quarters and $0.1875 per share payments in the September 2025 and December 2025 quarters. Total dividend payments during the year ended December 31, 2025 were $440 million.
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: Benefit plan effects of change in assumptions used Change in Assumption Effect on 2025 Pension Cost/(Benefit) Effect on Accrued Pension Liability at December 31, 2024 0.50% decrease in weighted average discount rate $ 12 million $ 674 million 0.50% increase in weighted average discount rate $ (12) million $ (624) million 1.00% decrease in expected long-term rate of return on assets $ 154 million $ — 1.00% increase in expected long-term rate of return on assets $ (154) million $ — Life Expectancy .
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: Benefit plan effects of change in assumptions used Change in Assumption Effect on 2026 Pension Cost/(Benefit) Effect on Accrued Pension Liability at December 31, 2025 0.50% decrease in weighted average discount rate $ 14 million $ 673 million 0.50% increase in weighted average discount rate $ (13) million $ (622) million 1.00% decrease in expected long-term rate of return on assets $ 168 million $ — 1.00% increase in expected long-term rate of return on assets $ (168) million $ — Life Expectancy .
Income Taxes Our effective tax rate was 26% and 18% for 2024 and 2023, respectively. Our effective tax rate is impacted by net pre-tax income or loss recognized on our equity investments, which are considered capital assets for tax purposes, because realized capital losses can only be deducted against realized capital gains.
Our effective tax rate is impacted by net pre-tax income or loss recognized on our equity investments, which are considered capital assets for tax purposes, because realized capital losses can only be deducted against realized capital gains.
On February 6, 2025, the Board of Directors approved and we will pay a quarterly dividend of $0.15 per share on March 20, 2025 to shareholders of record as of February 27, 2025. Undrawn Lines of Credit. As of December 31, 2024 we had approximately $3.1 billion undrawn and available under our revolving credit facilities. Covenants.
On February 4, 2026, the Board of Directors approved and we will pay a quarterly dividend of $0.1875 per share on March 19, 2026 to shareholders of record as of February 26, 2026. Undrawn Lines of Credit. As of December 31, 2025 we had approximately $3.1 billion undrawn and available under our revolving credit facilities. Covenants.
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.
The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance. • Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Our expected 2025 capital spend of approximately $5.0 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. As described in Part I, Item 1.
Our expected 2026 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.
In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. This ASU is effective beginning January 1, 2025.
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. We adopted this standard effective January 1, 2025.
Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's free cash flow that is core to our operations.
We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's free cash flow and capital expenditures that are core to our operations. • Strategic investments and related.
Operating Statistics Year Ended December 31, Consolidated (1) 2024 2023 Revenue passenger miles (in millions) 246,145 232,241 Available seat miles (in millions) 288,394 272,033 Passenger mile yield 20.68 ¢ 21.06 ¢ Passenger revenue per available seat mile ("PRASM") 17.65 ¢ 17.98 ¢ Total revenue per available seat mile ("TRASM") 21.37 ¢ 21.34 ¢ TRASM, adjusted (2) 19.76 ¢ 20.10 ¢ Cost per available seat mile ("CASM") 19.30 ¢ 19.31 ¢ CASM-Ex (2) 13.54 ¢ 13.17 ¢ Passenger load factor 85 % 85 % Fuel gallons consumed (in millions) 4,114 3,926 Average price per fuel gallon (3) $ 2.57 $ 2.82 Average price per fuel gallon, adjusted (2)(3) $ 2.56 $ 2.83 Approximate full-time equivalent employees, end of period 103,000 103,000 (1) Includes the operations of our regional carriers under capacity purchase agreements.
MD&A - Operating Statistics Operating Statistics Year Ended December 31, Consolidated (1) 2025 2024 Revenue passenger miles (in millions) 249,578 246,145 Available seat miles (in millions) 298,045 288,394 Passenger mile yield 20.74 ¢ 20.68 ¢ Passenger revenue per available seat mile ("PRASM") 17.37 ¢ 17.65 ¢ Total revenue per available seat mile ("TRASM") 21.26 ¢ 21.37 ¢ TRASM, adjusted (2) 19.56 ¢ 19.76 ¢ Cost per available seat mile ("CASM") 19.31 ¢ 19.30 ¢ CASM-Ex (2) 13.86 ¢ 13.54 ¢ Passenger load factor 84 % 85 % Fuel gallons consumed (in millions) 4,269 4,114 Average price per fuel gallon (3) $ 2.30 $ 2.57 Average price per fuel gallon, adjusted (2)(3) $ 2.30 $ 2.56 Approximate full-time equivalent employees, end of period 103,000 103,000 (1) Includes the operations of our regional carriers under capacity purchase agreements.
In addition, we have employee benefit obligations relating primarily to projected future benefit payments from our unfunded postretirement and postemployment plans. Benefit payments for these obligations are expected to be approximately $500 million on an annual basis over the next five years.
Payments to defined contribution plans were approximately $1.4 billion during the year ended December 31, 2025. In addition, we have employee benefit obligations relating primarily to projected future benefit payments from our unfunded postretirement and postemployment plans. Benefit payments for these obligations are expected to be approximately $500 million on an annual basis over the next five years.
As described further in Note 7 of the Notes to the Consolidated Financial Statements, as of December 31, 2024 we had a total of $8.4 billion of minimum operating lease obligations. These minimum lease payments range from approximately $600 million to $1.0 billion on an annual basis over the next five years. Other Obligations.
As described further in Note 7 of the Notes to the Consolidated Financial Statements, as of December 31, 2025 we had a total of $7.8 billion of minimum operating lease obligations. These minimum lease payments decrease on an annual basis from approximately $1.0 billion in 2026 to $500 million in 2030. Other Obligations.
We had no minimum funding requirements in 2024, and estimate that there will be approximately $80 million of minimum funding requirements under these plans in 2025.
We had minimum funding requirements of $70 million during 2025 and estimate that there will be approximately $5 million of minimum funding requirements under these plans in 2026.
As of December 31, 2024, we had approximately $2.7 billion of U.S. federal pre-tax net operating loss carryforwards which we are expecting to utilize during 2025. These net operating loss carryforwards were primarily generated in 2020 and do not expire. We expect our annual effective tax rate to be between 23% and 25% for 2025.
As of December 31, 2025, we had approximately $2.4 billion of U.S. federal pre-tax net operating loss carryforwards which we are expecting to utilize during 2026. These net operating loss carryforwards were primarily generated in 2020 and do not expire.
Delta Air Lines, Inc. | 2024 Form 10-K 45 Item 7.
Delta Air Lines, Inc. | 2025 Form 10-K 35 Item 7.
Delta Air Lines, Inc. | 2024 Form 10-K 44 Item 7. MD&A - Critical Accounting Estimates When we evaluate goodwill for impairment using a quantitative approach, we estimate the fair value of the reporting unit by considering both comparable public company multiples (a market approach) and projected discounted future cash flows (an income approach).
When we evaluate goodwill for impairment using a quantitative approach, we estimate the fair value of the reporting unit by considering both comparable public company multiples (a market approach) and projected discounted future cash flows (an income approach).
Ancillary Businesses and Refinery. Ancillary businesses and refinery includes expenses associated with refinery sales to third parties, aircraft maintenance services we provide to third parties and our vacation package operations. The increase in these expenses was primarily related to higher refinery sales to third parties, which increased $1.3 billion compared to 2023.
Ancillary Businesses and Refinery. Ancillary businesses and refinery includes expenses associated with refinery sales to third parties, MRO and our vacation package operations. The increase in these expenses was primarily related to higher refinery sales to third parties, which increased $435 million compared to 2024.
During the years ended December 31, 2024, 2023 and 2022, total cash sales from marketing agreements related to our loyalty program were $7.4 billion, $6.9 billion and $5.7 billion, respectively, which are allocated to travel and other performance obligations, as discussed below. Our most significant arrangement to sell miles relates to our co-brand credit card relationship with American Express.
During the years ended December 31, 2025, 2024 and 2023, total cash sales from marketing agreements related to our loyalty program were $8.0 billion, $7.4 billion and $6.9 billion, respectively, which are allocated to travel and other performance obligations, as discussed below.
As described further in Note 7 of the Notes to the Consolidated Financial Statements, as of December 31, 2024 we had a total of $897 million of minimum finance lease obligations. These minimum lease payments range from approximately $30 million to $400 million on an annual basis over the next five years. Capital Returns to Shareholders.
As described further in Note 7 of the Notes to the Consolidated Financial Statements, as of December 31, 2025 we had a total of $870 million of minimum finance lease obligations. These minimum lease payments are generally decreasing on an annual basis from approximately $300 million in 2026 to $100 million in 2030. Capital Returns to Shareholders.
As of December 31, 2024 the total of these minimum amounts was $7.7 billion and range from approximately $700 million to $1.8 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. Operating Lease Obligations.
As of December 31, 2025 the total of these minimum amounts was $6.0 billion, decreasing on an annual basis from approximately $1.8 billion in 2026 to $300 million in 2030. See Note 9 of the Notes to the Consolidated Financial Statements for more information on our contract carrier obligations. Operating Lease Obligations.
Free cash flow reconciliation Year Ended December 31, (in millions) 2024 Net cash provided by operating activities $ 8,025 Net cash used in investing activities (3,739) Adjusted for: Net redemptions of short-term investments (1,137) Net cash flows related to certain airport construction projects and other 276 Free cash flow $ 3,424 Delta Air Lines, Inc. | 2024 Form 10-K 49 Item 7.
Free cash flow reconciliation Year Ended December 31, (in millions) 2025 Net cash provided by operating activities $ 8,342 Net cash used in investing activities (4,186) Adjusted for: Pension plan contributions 70 Net cash flows related to certain airport construction projects and other 141 Strategic investments and related 276 Free cash flow $ 4,643 Delta Air Lines, Inc. | 2025 Form 10-K 49 Item 7.
Fuel expense represented approximately 19% of our total operating expense during 2024. The market price for jet fuel is volatile, which can impact the comparability of our periodic cash flows from operations. The average fuel price per gallon decreased in 2024. We expect continued higher market price volatility compared to historical levels due to geopolitical events.
Fuel expense represented approximately 17% of our total operating expense during 2025. The market price for jet fuel is volatile, which can impact the comparability of our periodic cash flows from operations. The average fuel price per gallon decreased in 2025. Fuel prices have historically been volatile due to many factors, including geopolitical events.
Adjusting for these expenses allows investors to better understand and analyze our core cost performance. • Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry. • Aircraft fuel and related taxes.
Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry. • Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance.
Fuel expense decreased $503 million compared to 2023 primarily due to a 12% decrease in the market price of jet fuel partially offset by a 5% increase in consumption on a 6% increase in capacity, resulting in a 1% improvement in fuel efficiency.
Fuel expense decreased $747 million compared to 2024 primarily due to a 9% decrease in the market price of jet fuel partially offset by a 4% increase in consumption on a 3% increase in capacity.
We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Adjustments include: • Net redemptions of short-term investments.
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: • Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities.
As of December 31, 2024, the funded status for these plans recorded on our balance sheets was $938 million, which is the net of our benefit obligation of $15.0 billion and plan assets of $15.9 billion.
These plans are generally closed to new entrants and frozen for future benefit accruals. As of December 31, 2025, the funded status for these plans recorded on our balance sheets was $2.3 billion, which is the net of our benefit obligation of $15.0 billion and plan assets of $17.3 billion.
During the December 2024 quarter, we performed qualitative assessments of goodwill and indefinite-lived intangible assets, including applicable factors noted above, and determined that there was no indication that the assets were impaired. Our qualitative assessments include analyses and weighting of all relevant factors that impact the fair value of our goodwill and indefinite-lived intangible assets.
Definite-lived assets consist primarily of marketing and maintenance service agreements. During the December 2025 quarter, we performed qualitative assessments of goodwill and indefinite-lived intangible assets, including applicable factors noted above, and determined that there was no indication that the assets were impaired.
Salaries and Related Costs. The increase in salaries and related costs primarily resulted from the implementation of base pay increases for eligible employees of 5% effective June 1, 2024 and for Delta pilots on January 1, 2024. In June 2024 we also increased our minimum starting wage for domestic mainline employees to $19 per hour.
The increase in salaries and related costs primarily resulted from the implementation of base pay increases for eligible employees of 5% effective June 1, 2024 and 4% effective June 1, 2025, and 4% for Delta pilots on January 1, 2025. Aircraft Fuel and Related Taxes.
Based on applicable interest rates and scheduled debt maturities as of December 31, 2024, these interest obligations total approximately $3.0 billion and range from approximately $200 million to $600 million on an annual basis over the next five years. Finance Lease Obligations.
Based on applicable interest rates and scheduled debt maturities as of December 31, 2025, these interest obligations total approximately $2.4 billion, decreasing on an annual basis from approximately $500 million in 2026 to $200 million in 2030. Finance Lease Obligations.
Goodwill . Our goodwill balance, which is related to the airline segment, was $9.8 billion at December 31, 2024. Identifiable Intangible Assets. Our identifiable intangible assets, which are related to the airline segment, had a net carrying amount of $6.0 billion at December 31, 2024, of which $5.9 billion related to indefinite-lived intangible assets.
Our identifiable intangible assets, which are related to the airline segment, had a net carrying amount of $6.0 billion at December 31, 2025, of which $5.9 billion related to indefinite-lived intangible assets. Indefinite-lived assets are not amortized and consist of routes, slots, the Delta tradename and assets related to alliances and collaborative arrangements.
Fuel expense and average price per gallon Average Price Per Gallon Year Ended December 31, Increase (Decrease) Year Ended December 31, Increase (Decrease) (in millions, except per gallon data) 2024 2023 2024 2023 Fuel purchase cost (1) $ 10,583 $ 11,506 $ (923) $ 2.57 $ 2.93 $ (0.36) Fuel hedge impact 21 (52) 73 0.01 (0.01) 0.02 Refinery segment impact (38) (385) 347 (0.01) (0.10) 0.09 Total fuel expense $ 10,566 $ 11,069 $ (503) $ 2.57 $ 2.82 $ (0.25) (1) Market price for jet fuel at airport locations, including related taxes and transportation costs.
Fuel expense and average price per gallon Average Price Per Gallon Year Ended December 31, Increase (Decrease) Year Ended December 31, Increase (Decrease) (in millions, except per gallon data) 2025 2024 2025 2024 Fuel purchase cost (1) $ 9,993 $ 10,583 $ (590) $ 2.34 $ 2.57 $ (0.23) Fuel hedge impact (17) 21 (38) — 0.01 (0.01) Refinery segment impact (157) (38) (119) (0.04) (0.01) (0.03) Total fuel expense $ 9,819 $ 10,566 $ (747) $ 2.30 $ 2.57 $ (0.27) (1) Market price for jet fuel at airport locations, including related taxes and transportation costs.
Non-Operating Results Year Ended December 31, Favorable (Unfavorable) (in millions) 2024 2023 Interest expense, net $ (747) $ (834) $ 87 Gain/(loss) on investments, net (319) 1,263 (1,582) Loss on extinguishment of debt (39) (63) 24 Miscellaneous, net (232) (279) 47 Total non-operating (expense)/income, net $ (1,337) $ 87 $ (1,424) Interest expense, net.
Non-Operating Results Year Ended December 31, Favorable (Unfavorable) (in millions) 2025 2024 Interest expense, net $ (679) $ (747) $ 68 Gain/(loss) on investments, net 1,212 (319) 1,531 Loss on extinguishment of debt (26) (39) 13 Miscellaneous, net (144) (232) 88 Total non-operating income/(expense), net $ 363 $ (1,337) $ 1,700 Interest expense, net.
Assumptions include, among other things, the actual and projected market performance of assets, statutory requirements and demographic data for participants. Investments Valued at Net Asset Value ("NAV") Per Share. On an annual basis we assess the potential for adjustments to the fair value of all investments.
Estimates of future funding requirements are based on various assumptions and can vary materially from actual funding requirements. Assumptions include, among other things, the actual and projected market performance of assets, statutory requirements and demographic data for participants. Investments Valued at Net Asset Value ("NAV") Per Share.
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. The jet fuel produced and procured through exchanging gasoline and diesel fuel produced by the refinery typically provides approximately 200,000 barrels per day, or approximately 75% of our consumption, for use in our airline operations.
The refinery provides approximately 200,000 barrels per day, or approximately 75% of our consumption, for use in our airline operations through the production of jet fuel and through exchanges and sales of gasoline and diesel fuel produced by the refinery.
We previously performed quantitative assessments in the December 2023 quarter, noting no impairment of goodwill or indefinite-lived intangible assets. For additional information on our goodwill and indefinite-lived intangible assets' significant accounting policies and the related fair values and book values, see Note 5 of the Notes to the Consolidated Financial Statements.
For additional information on our goodwill and indefinite-lived intangible assets' significant accounting policies and the related fair values and book values, see Note 5 of the Notes to the Consolidated Financial Statements. Defined Benefit Pension Plans We sponsor defined benefit pension plans for eligible employees and retirees.
See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales. Landing Fees and Other Rents. The increase in landing fees and other rents resulted from higher rates charged by airports following extensive redevelopment projects at numerous facilities and more flights compared to 2023. Delta Air Lines, Inc. | 2024 Form 10-K 37 Item 7.
The increase in landing fees and other rents resulted from higher rates charged by airports following extensive redevelopment projects at numerous facilities and more flights compared to 2024. Regional Carrier Expense. The increase in regional carrier expense primarily resulted from higher volume of regional flights and annual rate increases. Delta Air Lines, Inc. | 2025 Form 10-K 36 Item 7.
A refinery may meet its obligation by blending the necessary volumes of renewable fuels, by purchasing Renewable Identification Numbers ("RINs") in the open market or through a combination of blending and purchasing RINs. Because Monroe is able to blend only a small amount of renewable fuels, it must purchase the majority of its RINs requirement in the secondary market.
A refinery is subject to annual EPA requirements to blend renewable fuels into the gasoline and on-road diesel fuel it produces. A refinery may meet its obligation by blending the necessary volumes of renewable fuels, by purchasing Renewable Identification Numbers ("RINs") in the open market, or through a combination of blending and purchasing RINs.
See Note 14 of the Notes to the Consolidated Financial Statements for further information regarding our segment reporting. Standards Effective in Future Years Income Taxes.
See Note 10 of the Notes to the Consolidated Financial Statements for our income tax disclosures. Standards Effective in Future Years Disaggregation of Income Statement Expenses.
We are assessing the impact of this ASU and, upon adoption, may be required to include certain additional disclosures in the footnotes to our Consolidated Financial Statements. Supplemental Information We sometimes use information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with GAAP. Under the U.S.
We are assessing the impact of this ASU and, upon adoption, may be required to include certain additional disclosures in the footnotes to our Consolidated Financial Statements. Internal Use Software.
The refinery regularly optimizes its sales and exchange activities of non-jet fuel products based on market conditions and the availability of counterparties for exchanges.
The refinery regularly optimizes its sales and exchange activities of non-jet fuel products based on market conditions and the availability of counterparties for exchanges. The volume of exchange transactions has declined in recent years due to changes in the counterparties used to supply jet fuel and our related buy/sell agreements.
Our funding obligations for qualified defined benefit plans are governed by ERISA and any additional applicable legislation. Under current legislation, 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.
Under current legislation, 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 recent legislation makes our funding obligations for these plans more predictable, factors outside our control continue to have an impact on the funding requirements.
See Note 4 of the Notes to the Consolidated Financial Statements for additional information on our equity investments measured at fair value on a recurring basis. Net unrealized gains on our equity method investments during 2023 were primarily related to Wheels Up, Hanjin-KAL and LATAM. Loss on extinguishment of debt.
See Note 4 of the Notes to the Consolidated Financial Statements for additional information on our equity investments measured at fair value on a recurring basis. Loss on extinguishment of debt. This reflects the losses incurred in the early repayment of debt referenced above. Miscellaneous, net.
MD&A - Results of Operations Operating Expense Year Ended December 31, Increase (Decrease) % Increase (Decrease) (1) (in millions) 2024 2023 Salaries and related costs $ 16,161 $ 14,607 $ 1,554 11 % Aircraft fuel and related taxes 10,566 11,069 (503) (5) % Ancillary businesses and refinery 5,416 4,172 1,244 30 % Contracted services 4,228 4,041 187 5 % Landing fees and other rents 3,150 2,563 587 23 % Aircraft maintenance materials and outside repairs 2,616 2,432 184 8 % Depreciation and amortization 2,513 2,341 172 7 % Passenger commissions and other selling expenses 2,485 2,334 151 6 % Regional carrier expense 2,328 2,200 128 6 % Passenger service 1,788 1,750 38 2 % Profit sharing 1,389 1,383 6 — % Aircraft rent 548 532 16 3 % Pilot agreement and related expenses — 864 (864) NM Other 2,460 2,239 221 10 % Total operating expense $ 55,648 $ 52,527 $ 3,121 6 % (1) Certain variances are labeled as not meaningful ("NM") throughout management's discussion and analysis.
MD&A - Results of Operations Operating Expense Year Ended December 31, Increase (Decrease) % Increase (Decrease) (in millions) 2025 2024 Salaries and related costs $ 17,520 $ 16,161 $ 1,359 8 % Aircraft fuel and related taxes 9,819 10,566 (747) (7) % Ancillary businesses and refinery 5,987 5,416 571 11 % Contracted services 4,617 4,228 389 9 % Landing fees and other rents 3,564 3,150 414 13 % Regional carrier expense 2,553 2,328 225 10 % Passenger commissions and other selling expenses 2,485 2,485 — — % Depreciation and amortization 2,443 2,513 (70) (3) % Aircraft maintenance materials and outside repairs 2,432 2,616 (184) (7) % Passenger service 1,855 1,788 67 4 % Profit sharing 1,337 1,389 (52) (4) % Aircraft rent 542 548 (6) (1) % Other 2,388 2,460 (72) (3) % Total operating expense $ 57,542 $ 55,648 $ 1,894 3 % Salaries and Related Costs.
See Note 9 of the Notes to the Consolidated Financial Statements for additional information on our employee benefit plans. Aircraft Fuel and Related Taxes.
For additional information on our significant accounting policies related to the loyalty program, see Note 2 of the Notes to the Consolidated Financial Statements.
Employee Benefit Obligations. We sponsor defined benefit and defined contribution pension plans for eligible employees and retirees. Our funding obligations for defined benefit plans are governed by the Employee Retirement Income Security Act ("ERISA") and any additional applicable legislation.
Our funding obligations for defined benefit plans are governed by the Employee Retirement Income Security Act ("ERISA") and any additional applicable legislation. We had minimum funding requirements of $70 million during 2025 and estimate that there will be approximately $5 million of minimum funding requirements under these plans in 2026.
Operating income, adjusted reconciliation Year Ended December 31, (in millions) 2024 2023 Operating income $ 5,995 $ 5,521 Adjusted for: MTM adjustments and settlements on hedges 21 (52) One-time pilot agreement expenses — 864 Operating income, adjusted $ 6,016 $ 6,334 Delta Air Lines, Inc. | 2024 Form 10-K 47 Item 7.
Operating income, adjusted reconciliation Year Ended December 31, (in millions) 2025 2024 Operating income $ 5,822 $ 5,995 Adjusted for: MTM adjustments and settlements on hedges (17) 21 Operating income, adjusted $ 5,804 $ 6,016 Total revenue, adjusted reconciliation Year Ended December 31, (in millions) 2025 2024 Total revenue $ 63,364 $ 61,643 Adjusted for: Third-party refinery sales (5,077) (4,642) Total revenue, adjusted $ 58,287 $ 57,001 Operating expense, adjusted reconciliation Year Ended December 31, (in millions) 2025 2024 Operating expense $ 57,542 $ 55,648 Adjusted for: Third-party refinery sales (5,077) (4,642) MTM adjustments and settlements on hedges 17 (21) Operating expense, adjusted $ 52,483 $ 50,985 Delta Air Lines, Inc. | 2025 Form 10-K 47 Item 7.
This reflects the losses incurred in the early repayment of debt referenced above. Miscellaneous, net. Miscellaneous, net primarily includes employee benefit plans net periodic cost, charitable contributions, our share of our equity method investments' results and foreign exchange gains/(losses). See Note 4 of the Notes to the Consolidated Financial Statements for additional information on our equity investments.
Miscellaneous, net primarily includes employee benefit plans net periodic cost, charitable contributions, our share of our equity method investments' results, dividend income from our equity investments and foreign exchange gains/(losses). The decrease compared to 2024 primarily relates to lower employee benefit plan costs and an increase in dividend income.
Refinery segment financial information Year Ended December 31, % Increase (Decrease) (in millions, except per gallon data) 2024 2023 Exchanged products $ 1,473 $ 2,354 (37) % Sales of refined products 231 304 (24) % Sales to airline segment 1,421 1,535 (7) % Third-party refinery sales 4,642 3,379 37 % Operating revenue $ 7,767 $ 7,572 3 % Operating income $ 38 $ 385 (90) % Refinery segment impact on average price per fuel gallon $ (0.01) $ (0.10) (90) % A refinery is subject to annual EPA requirements to blend renewable fuels into the gasoline and on-road diesel fuel it produces.
Refinery segment financial information Year Ended December 31, % Increase (Decrease) (1) (in millions, except per gallon data) 2025 2024 Exchanged products $ 580 $ 1,473 (61) % Sales of refined products 154 231 (33) % Sales to airline segment 1,150 1,421 (19) % Third-party sales 5,077 4,642 9 % Operating revenue $ 6,961 $ 7,767 (10) % Operating income $ 157 $ 38 NM Refinery segment impact on average price per fuel gallon $ (0.04) $ (0.01) NM (1) Certain variances are labeled as not meaningful ("NM") throughout management's discussion and analysis.
As capacity increased throughout the year, fuel consumption was higher in 2024 than 2023. We expect fuel consumption to increase in 2025 aligned with capacity, partially offset by improvements in the fuel efficiency of our fleet.
As capacity increased throughout the year, fuel consumption was higher in 2025 than 2024. We expect fuel consumption to increase in 2026 generally aligned with capacity. Employee Benefit Obligations. We sponsor defined benefit and defined contribution pension plans for eligible employees and retirees.
As of December 31, 2024, we had approximately $9.3 billion of such obligations, which range from approximately $400 million to $1.3 billion on an annual basis over the next five years. Income Taxes. We expect to utilize our remaining net operating loss carryforwards during 2025.
As of December 31, 2025, we had approximately $11.2 billion of such obligations, decreasing on an annual basis from approximately $1.4 billion in 2026 to $800 million in 2030. Income Taxes.
See Note 10 of the Notes to the Consolidated Financial Statements for additional information regarding our aircraft purchase commitments, which totaled approximately $18.3 billion as of December 31, 2024. New York-LaGuardia Redevelopment. In 2024, we substantially completed all construction for the replacement of Terminals C and D of the New York-LaGuardia Airport with a new state-of-the-art terminal facility.
See Note 9 of the Notes to the Consolidated Financial Statements for additional information regarding our aircraft purchase commitments, which totaled approximately $15.4 billion as of December 31, 2025. Strategic Investment in WestJet. In October 2025, we acquired a 12.7% equity stake in WestJet for $276 million.
See Note 6 of the Notes to the Consolidated Financial Statements for further information on the effect of these ratings changes on our debt agreements. The principal amount of our debt and finance leases was $16.2 billion at December 31, 2024. Future Debt Obligations.
The principal amount of our debt and finance leases was $14.1 billion at December 31, 2025. Future Debt Obligations.
Interest expense, net includes interest expense and interest income. This decreased compared to 2023 primarily on reduced interest expense resulting from our debt reduction initiatives, which was partially offset by lower interest income. We are reducing the total amount of interest expense by pre-paying our debt in addition to periodic amortization payments and scheduled maturities.
Interest expense, net includes interest expense and interest income. This decreased compared to the prior year primarily due to reduced interest expense resulting from our debt reduction initiatives. During 2024, we made payments of $4.0 billion related to our debt and finance lease obligations.
Monroe incurred $203 million in RINs compliance costs during 2024, compared to $323 million incurred in 2023. For more information regarding the refinery's results, see Note 14 of the Notes to the Consolidated Financial Statements.
For more information regarding the refinery's results, see Note 14 of the Notes to the Consolidated Financial Statements. Delta Air Lines, Inc. | 2025 Form 10-K 38 Item 7.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeWe 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. During 2024, we recorded a net loss of $319 million related to the valuation of our fair value investments compared to a net gain of $1.3 billion in 2023.
Biggest changeWe 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. During 2025, we recorded a net gain of $1.2 billion related to the valuation of our fair value investments compared to a net loss of $319 million in 2024.
A 10% change in the value of those respective currencies against the U.S. dollar would have an approximately $160 million impact on our financial statements. Equity Investment Risk We own equity investments in a number of airlines and airline service companies, which are subject to equity price risk.
A 10% change in the value of those respective currencies against the U.S. dollar would have an approximately $290 million impact on our financial statements. Equity Investment Risk We own equity investments in a number of airlines and airline service companies, which are subject to equity price risk.
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. Our derivative contracts to hedge the financial risk from changing fuel prices are related to Monroe’s inventory.
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. Substantially all of our derivative contracts to hedge the financial risk from changing fuel prices are related to Monroe’s inventory.
The rates used in our variable-rate debt are based on Secured Overnight Financing Rate ("SOFR"), or another index rate, which in certain cases is subject to a floor.
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.
As of December 31, 2024, we had long-term investments recorded at fair value of $2.4 billion and, therefore, a 10% change in the fair value of these investments would have an approximately $240 million impact on our financial results. See Note 3 and Note 4 of the Notes to the Consolidated Financial Statements for further information on our investments.
As of December 31, 2025, we had long-term investments recorded at fair value of $3.6 billion and, therefore, a 10% change in the fair value of these investments would have an approximately $360 million impact on our financial results. See Note 3 and Note 4 of the Notes to the Consolidated Financial Statements for further information on our investments.
An increase of 100 basis points in average annual interest rates would have decreased the estimated fair value of our fixed-rate debt by $620 million at December 31, 2024 and would have increased the annual interest expense on our variable-rate debt and variable-rate leases by $12 million.
An increase of 100 basis points in average annual interest rates would have decreased the estimated fair value of our fixed-rate debt by $470 million at December 31, 2025 and would have increased the annual interest expense on our variable-rate debt and variable-rate leases by $11 million.
Delta Air Lines, Inc. | 2024 Form 10-K 51 Financial Statements
Delta Air Lines, Inc. | 2025 Form 10-K 51 Financial Statements
From time to time, we may also enter into foreign currency option and forward contracts. At December 31, 2024 we had no open foreign currency options or forward contracts. As of December 31, 2024, our investments denominated in foreign currencies (AirFrance-KLM, China Eastern, Hanjin-KAL and LATAM) were recorded at a fair value of $1.6 billion.
From time to time, we may also enter into foreign currency option and forward contracts. At December 31, 2025 we had no open foreign currency options or forward contracts. As of December 31, 2025, our investments denominated in foreign currencies (Air France-KLM, China Eastern, Hanjin-KAL and LATAM) were recorded at a fair value of $2.9 billion.
Market risk associated with our variable-rate debt and variable-rate leases relates to the potential negative impact to future earnings from an increase in interest rates. At December 31, 2024, we had $14.5 billion of fixed-rate debt, $0.9 billion of variable-rate debt and $0.4 billion of variable-rate leases.
Market risk associated with our variable-rate debt and variable-rate leases relates to the potential negative impact to future earnings from an increase in interest rates. At December 31, 2025, we had $12.6 billion of fixed-rate debt, $0.7 billion of variable-rate debt and $0.4 billion of variable-rate leases.