Delta Air Lines · Earnings release

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Delta Air Lines

Announces June Quarter 2025 Financial Results

Delivered June quarter results in line with April

guidance, with continued strength in diverse revenue streams driving double-digit margins

Expect September quarter earnings per share of

Restoring full year guidance with expectation

for earnings per share of $5.25 to $6.25 and free cash flow of $3 to $4 billion

Announced a 25 percent increase to dividend payment

beginning in September quarter

Delta Air Lines (NYSE: DAL) today reported financial results for the June quarter and provided its outlook for the September quarter

and full year 2025. Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.

“In the June quarter, Delta delivered record revenue on a 13 percent

operating margin, generating $1.8 billion in pre-tax profit and leading network peers across key operational metrics. This strong performance

is a direct reflection of the outstanding contributions of our people, who continue to set the bar for industry performance,” said

Ed Bastian, Delta’s chief executive officer.

“As we look to the second half of our centennial year, we remain focused

on executing our strategic priorities and managing the levers within our control to deliver strong earnings and cash flow. Reflecting

our confidence in the business, we are restoring financial guidance with an expectation for earnings per share of $5.25 to $6.25 and free

cash flow of $3 to $4 billion, consistent with our long-term free cash flow targets.”

June Quarter 2025 GAAP Financial Results

•

Operating revenue of $16.6 billion

•

Operating income of $2.1 billion with an operating margin of 12.6 percent

•

Pre-tax income of $2.6 billion with a pre-tax margin of 15.5 percent

•

Earnings per share of $3.27

•

Operating cash flow of $1.9 billion

•

Payments on debt and finance lease obligations of $2.9 billion

•

Total debt and finance lease obligations of $15.1 billion at quarter end

June Quarter 2025 Non-GAAP Financial Results

•

Operating revenue of $15.5 billion

•

Operating income of $2.0 billion with an operating margin of 13.2 percent

•

Pre-tax income of $1.8 billion with a pre-tax margin of 11.6 percent

•

Earnings per share of $2.10

•

Operating cash flow of $1.8 billion

1

Financial Guidance1

G1Earnings Per Share

Free Cash Flow ($B)

G2Gross Leverage2

Less than 2.5x

G3Total Revenue YoY

G4Operating Margin

G5Earnings Per Share

1Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures

2Adjusted debt to EBITDAR

Revenue Environment and

Outlook

“Delta generated record June quarter revenue of $15.5 billion, approximately

1 percent higher than prior year. Through the quarter, demand trends stabilized at levels that are flat to last year and we continued

to see resilience in our diverse, high-margin revenue streams. The team did a great job leveraging Delta’s structural advantages

to optimize performance in this environment,” said Glen Hauenstein, Delta’s president.

“For the September quarter, we expect total revenue to be flat to

up 4 percent compared to the prior year, with unit revenue trends expected to improve through the second half of the year as we continue

to adjust capacity and the industry further rationalizes supply.”

•

Record quarterly revenue: Delta’s total revenue was a record $15.5 billion, approximately 1 percent higher than the June

quarter of 2024 on 4 percent capacity growth. Adjusted total unit revenue (TRASM) was down 3 percent compared to prior year, consistent

with expectations.

•

Diversified revenue streams remain resilient: Diverse, high margin revenue streams contributed 59 percent of total revenue,

underpinning Delta’s differentiated business model. Premium revenue continued to outpace main cabin, growing 5 percent on a year-over-year

basis. Loyalty revenue was up 8 percent, driven by co-brand spend growth and card acquisitions. American Express remuneration was $2 billion,

up 10 percent year-over-year. Cargo and MRO revenue grew 7 percent and 29 percent, respectively.

•

International performed well through peak summer period: International revenue grew 2 percent during the quarter. Continued

restoration of the Transpacific network supported by double-digit capacity growth in the region drove record Pacific revenue, up 11 percent

compared to the second quarter of 2024. Strong demand for Transatlantic travel continued as Delta expanded service to European destinations

for the peak summer period with revenue growing 2 percent above record 2024 levels.

•

Corporate demand environment remains steady: Corporate sales* in the June quarter were up low-single digits over the prior

year, led by Domestic.

*Corporate sales represent the revenue

from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period

Cost Performance and Outlook

“Cost execution continues to be an important focus across the enterprise.

June quarter non-fuel unit cost growth of 2.7 percent was similar to the March quarter and in line with expectations,” said Dan

Janki, Delta’s chief financial officer. “We expect the September quarter will be our best non-fuel unit cost performance of

the year, with non-fuel unit costs flat to down compared to 2024. For the full year, we remain on track to deliver non-fuel unit cost

growth in the low-single digits year-over-year, consistent with our long-term target.”

2

June Quarter 2025 Cost Performance

•

Operating expense of $14.5 billion and adjusted operating expense of $13.5 billion

•

Adjusted non-fuel costs of $10.5 billion

•

Non-fuel CASM was 13.49¢, an increase of 2.7 percent year-over-year

•

Adjusted fuel expense of $2.5 billion was down 11 percent year-over-year

•

Adjusted fuel price of $2.26 per gallon decreased 14 percent year-over-year with a refinery loss of 1¢ per gallon

Balance Sheet, Cash and Liquidity

“During the first half of the year, we generated free cash flow of

$2 billion, supporting our full year expectation for $3 to $4 billion of free cash flow,” Janki said. “With strong cash generation,

we are well-positioned to deliver on our capital allocation priorities as we reinvest in the business, pay down $3 billion of debt this

year, and return cash to shareholders, including a 25 percent increase to our quarterly dividend beginning in the September quarter.”

•

Adjusted net debt of $16.3 billion at June quarter end, a reduction of $1.7 billion from

•

Payments on debt and finance lease obligations for the June quarter of $2.9 billion

•

Weighted average interest rate of 4.6 percent with

95 percent fixed rate debt and 5 percent variable rate debt

•

Adjusted operating cash flow in the June quarter of $1.8 billion, and with gross capital expenditures of $1.2 billion, free

cash flow was $733 million

•

Air Traffic Liability ended the quarter at $8.9 billion

•

Liquidity* of $6.4 billion at quarter-end, including $3.1 billion in undrawn revolver capacity

*Includes cash

and cash equivalents, short-term investments and undrawn revolving credit facilities

3

June Quarter 2025 Highlights

Operations, Network and Fleet

•

Recognized as the Best U.S. Airline by The Points Guy for the seventh consecutive year based on operational reliability, customer

experience, cost, reach and loyalty

•

Operated the most on-time airline in the June quarter, leading competitive set in on-time departures and arrivals and network peers

in completion factor1

•

Took delivery of 10 aircraft during the June quarter, bringing the total year-to-date to 19, including the A350-900, A330-900, A321neo

•

Retired 10 aircraft during the June quarter, bringing the total to 14 retirements year-to-date

•

Announced strengthened partnership with WestJet through a minority equity stake, supporting future benefits for travelers, including

an elevated, more seamless travel experience for customers worldwide, subject to regulatory approvals and satisfaction of other customary

closing conditions

•

Announced plans to build global partnership with IndiGo, Air France-KLM and Virgin Atlantic, connecting India with Europe and North

America in the future, subject to regulatory approvals

•

Expanded joint venture with LATAM to Argentina, enhancing connectivity with the U.S. and Canada

•

Launched nonstop flights from SLC to Seoul-Incheon, opening a new gateway between the U.S. and Asia

•

Announced nonstop service from SEA to Barcelona and Rome beginning May of 2026

•

Began operating Delta’s most expansive Transatlantic schedule ever, including new and increased service to Barcelona, Sicily, Copenhagen,

Dublin, Milan, Naples and more European destinations

Culture and People

•

Accrued $470 million toward profit sharing in the June quarter, resulting in $594 million accrued year-to-date

•

Provided a 4 percent base pay increase for eligible employees worldwide, the fourth consecutive annual increase since 2022, reflecting

Delta’s commitment to industry-leading pay for industry-leading performance

•

Named No. 3 in the Fortune ReturnOnLeadership® ranking of the top 100 companies in the Fortune 500 based on strong leadership,

strategic alignment and clear vision for the future, the highest-ranked airline

•

Recognized as one of the 50 most community-minded companies in the U.S. for the eighth consecutive year by Points of Light

•

Partnered with the Best Defense Foundation for the Normandy Legacy Flight for the fourth year, chartering over 20 WWII veterans to

Normandy, France to commemorate the 81st anniversary of D-Day

•

Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the eighth consecutive year with a record 16,178

units of blood collected at 386 blood drives in the last 12 months

•

Over 4,400 Delta volunteers completed 155 community service events and contributed over 8,600 hours of service across 8 countries

during Global Volunteer Month in April

Customer Experience and Loyalty

•

Ranked No. 1 in J.D. Power’s Premium Economy Satisfaction survey for the third consecutive year

•

Awarded Best Airline Staff in North America for fourth consecutive year at the Skytrax World Airline Awards

•

Launched Fly Delta app 7.0, enhancing the customer experience with real-time updates and seamless upgrade redemptions

•

Opened the Delta One Lounge in SEA with seating for over 200 customers, complementing the new Delta Sky Club one level below with

the two spaces totaling 24,000 square feet

•

Opened eighth and largest Delta Sky Club in ATL located in Concourse D, with seating for over 500 guests

•

Empowering customers with choice through the announcement of new product experiences tailored to individual budgets and priorities

on flights starting October 1

•

Named Best Global Airline for the Americas by the Airline Passenger Experience Association (APEX), further strengthening Delta’s

position as a global leader in premium travel

•

Launched Uber partnership enabling SkyMiles members to earn miles on select rides and deliveries; expanded to offer 6-12 months of

complimentary Uber One for select Delta American Express cardholders

•

Expanded partnership with Missoni to include a Delta One bedding set and a refreshed amenity kit

•

Continued the roll out of fast, free Wi-Fi for SkyMiles Members with 925 aircraft equipped and 95 percent of the mainline fleet expected

to be equipped by the end of 2025

Environmental Sustainability

•

Issued the 2024 Delta Difference Report, highlighting Delta’s continued commitment to a more sustainable future of travel while investing in its people and supporting local communities

•

Achieved 1 percent fuel burn savings from operational improvements, equating to 45 million gallons2 of jet fuel savings,

as a part of Delta’s decarbonization journey

1FlightStats

preliminary data for Delta flights system wide, Delta’s competitive set (AA, UA, B6, AS, WN, and DL) and Delta’s network

peers (AA, UA, and DL) from April 1 - June 30, 2025. On-time is defined as A0

2Compared

to 2019, and relative to what we would have used if Delta had not undertaken any fuel efficiency efforts, not including fleet renewal

4

June quarter results have been adjusted primarily for third-party refinery

sales and gains/losses on investments as described in the reconciliations in Note A.

GAAP

$

%

($ in millions except per share and unit costs)

Change

Change

Operating income

)

(7

)%

Operating margin

%

%

) pts

(7

)%

Pre-tax income

%

Pre-tax margin

%

%

pts

%

Net income

%

Diluted earnings per share

%

Operating revenue

)

–

%

Total revenue per available seat mile (TRASM) (cents)

)

(4

)%

Operating expense

1

%

Cost per available seat mile (CASM) (cents)

)

(3

)%

Fuel expense

)

)%

Average fuel price per gallon

)

)%

Operating cash flow

)

)%

Capital expenditures

)

(8

)%

Total debt and finance lease obligations

)

)%

Adjusted

$

%

($ in millions except per share and unit costs)

Change

Change

Operating income

)

) %

Operating margin

%

%

) pts

) %

Pre-tax income

)

) %

Pre-tax margin

%

%

) pts

) %

Net income

)

) %

Diluted earnings per share

)

) %

Operating revenue

1

%

TRASM (cents)

)

(3

)%

Operating expense

2

%

Non-fuel cost

7

%

Non-fuel unit cost (CASM-Ex) (cents)

%

Fuel expense

)

) %

Average fuel price per gallon

)

) %

Operating cash flow

)

) %

Free cash flow

)

) %

Gross capital expenditures

)

(4

) %

Adjusted net debt

)

) %

5

About Delta Air Lines Through exceptional service and

the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer.

There are 100,000 Delta people leading the way to deliver a world-class

customer experience on up to 5,000 peak day Delta and Delta Connection flights to more than 290 destinations on six continents, connecting

people to places and to each other.

Delta served more than 200 million customers in 2024 – safely,

reliably and with industry-leading customer service innovation – and was recognized by J.D. Power this year for being No. 1 in First/Business

and Premium Economy Passenger Satisfaction. The airline also was recognized as the top U.S. airline by the Wall Street Journal and as

North America’s most on-time airline in 2024 and our people earned the Platinum Award for Operational Excellence from

Cirium.

We remain committed to ensuring that the future of travel is connected,

personalized and enjoyable. Our people’s genuine, enduring motivation is to make every customer feel welcomed and cared for across every

point of their journey with us.

Headquartered in Atlanta, Delta operates significant hubs and key markets

in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and

LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.

As the leading global airline, Delta’s mission to connect the world

creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own

potential.

A founding member of the SkyTeam alliance and powered by innovative

and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and

WestJet, Delta brings more choice and competition to customers worldwide. Delta’s premium product line is elevated by its unique

partnership with Wheels Up Experience.

Delta is America’s most-awarded airline thanks to the

dedication, passion and professionalism of its people. In addition to the awards from J.D. Power and Cirium, Delta has been

recognized among Fast Company’s Most Innovative Companies; the World’s Most Admired Airline and one of the Best 100

Companies to Work For according to Fortune; one of Glassdoor’s Best Places to Work; the top carrier for business

travelers by Business Travel News; and topped 5 categories, including the Best U.S. Airline award, in Forbes Travel Guide’s

Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light as one of the most community minded

companies in the U.S. and the best U.S. airline by the Points Guy for the past seven years.

Forward Looking Statements

Statements made in this press release that

are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations,

commitments or strategies for the future, should be considered “forward-looking statements” under the Securities Act of 1933,

as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements

are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks

and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections,

goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties

include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners;

breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well

as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus

on privacy issues and data security; disruptions in our information technology infrastructure; our dependence on technology in our operations;

increases in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC (“Monroe”),

a wholly-owned subsidiary of Delta that operates the Trainer refinery; failure to receive the expected results or returns from our commercial

relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant

disruption in the operations or performance of third parties on which we rely; failure to comply with the financial and other covenants

in our financing agreements; labor-related disruptions; the effects on our business of seasonality and other factors beyond our control,

such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including

from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe’s refinery; failure

to comply with existing and future environmental regulations to which Monroe’s refinery operations are subject, including costs

related to compliance with renewable fuel standard regulations; significant damage to our reputation and brand, including from exposure

to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other

key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented to combat

them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended

interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft

or engines we operate; the effects of extensive regulatory and legal compliance requirements we are subject to; the impact of environmental

regulation, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks

associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or

political conditions in the markets in which we operate or volatility in currency exchange rates.

Additional information concerning risks and

uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange

Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other filings filed

with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent

our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by

law.

6

DELTA AIR LINES, INC.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Six Months Ended

(in millions, except per share data)

$ Change

% Change

$ Change

% Change

Operating Revenue:

Passenger

$

$

$

–

%

$

$

$

2

%

Cargo

7

%

%

Other

)

(2

)%

)

(3

)%

Total operating revenue

)

–

%

1

%

Operating Expense:

Salaries and related costs

%

9

%

Aircraft fuel and related taxes

)

)%

)

)%

Ancillary businesses and refinery

)

(4

)%

)

(6

)%

Contracted services

%

%

Landing fees and other rents

%

%

Regional carrier expense

%

%

Aircraft maintenance materials and outside repairs

)

)%

)

(9

)%

Passenger commissions and other selling expenses

1

–

%

2

–

%

Depreciation and amortization

)

(3

)%

)

(2

)%

Passenger service

4

%

4

%

Profit sharing

)

(9

)%

)

(8

)%

Aircraft rent

(1

)

(1

)%

–

–

%

Other

3

%

%

Total operating expense

1

%

2

%

Operating Income

)

(7

)%

)

(7

)%

Non-Operating Income/(Expense):

Interest expense, net

)

)

(9

)%

)

)

)%

Gain/(loss) on investments, net

)

NM

)

NM

Loss on extinguishment of debt

)

)

)%

)

)

)%

Miscellaneous, net

)

)

7

(9

)%

)

)

)%

Total non-operating income/(expense), net

)

NM

)

NM

Income Before Income Taxes

%

%

Income Tax Provision

)

)

(5

)%

)

)

(5

)%

Net Income

$

$

$

%

$

$

$

%

Basic Earnings Per Share

$

$

$

$

Diluted Earnings Per Share

$

$

$

$

Basic Weighted Average Shares Outstanding

Diluted Weighted Average Shares Outstanding

7

DELTA AIR LINES, INC.

Passenger Revenue

(Unaudited)

Three Months Ended

Six Months Ended

(in millions)

$ Change

% Change

$ Change

% Change

Ticket - Main cabin

$

$

$

)

(5

)%

$

$

$

)

(4

)%

Ticket - Premium products

5

%

6

%

Loyalty travel awards

%

%

Travel-related services

2

%

3

%

Passenger revenue

$

$

$

–

%

$

$

$

2

%

DELTA AIR LINES, INC.

Other Revenue

(Unaudited)

Three Months Ended

Six Months Ended

(in millions)

$ Change

% Change

$ Change

% Change

Refinery

$

$

$

)

(9

)%

$

$

$

)

)%

Loyalty program

2

%

2

%

Ancillary businesses

%

%

Miscellaneous

(9

)

(3

)%

5

1

%

Other revenue

$

$

$

)

(2

)%

$

$

$

)

(3

)%

DELTA

AIR LINES, INC.

Total

Revenue

(Unaudited)

Increase (Decrease)

Revenue

Change

Unit Revenue

Yield

Capacity

Domestic

$

(1

)%

(5

)%

(1

)%

4

%

Atlantic

2

%

(2

)%

(2

)%

4

%

Latin America

(1

)%

–

%

–

%

(1

)%

Pacific

%

(1

)%

(6

)%

%

Passenger Revenue

$

–

%

(4

)%

(2

)%

4

%

Cargo Revenue

7

%

Other Revenue

(2

)%

Total Revenue

$

–

%

(4

)%

Third Party Refinery Sales

)

Total Revenue, adjusted

$

1

%

(3

)%

8

DELTA AIR LINES, INC.

Statistical Summary

(Unaudited)

Three Months Ended

Six Months Ended

Change

Change

Revenue passenger miles (millions)

2

%

2

%

Available seat miles (millions)

4

%

4

%

Passenger mile yield (cents)

(2

)%

(1

)%

Passenger revenue per available seat mile (cents)

(4

)%

(3

)%

Total revenue per available seat mile (cents)

(4

)%

(3

)%

TRASM, adjusted - see Note A (cents)

(3

)%

(2

)%

Cost per available seat mile (cents)

(3

)%

(2

)%

CASM-Ex - see Note A (cents)

%

%

Passenger load factor

%

%

)pts

%

%

) pts

Fuel gallons consumed (millions)

4

%

5

%

Average price per fuel gallon

$

$

)%

$

$

)%

Average price per fuel gallon, adjusted - see Note A

$

$

)%

$

$

)%

9

DELTA AIR LINES, INC.

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

(in millions)

Cash Flows From Operating Activities:

Net income

$

$

Depreciation and amortization

(Gain) loss on fair value investments

)

Changes in air traffic liability

)

)

Changes in profit sharing

Changes in balance sheet and other, net

Net cash provided by operating activities

Cash Flows From Investing Activities:

Property and equipment additions:

Flight equipment, including advance payments

)

)

Ground property and equipment, including technology

)

)

Redemption of short-term investments

–

Other, net

Net cash used in investing activities

)

)

Cash Flows From Financing Activities:

Proceeds from long-term obligations

–

Payments on debt and finance lease obligations

)

)

Cash dividends

)

)

Other, net

)

)

Net cash used in financing activities

)

)

Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash Equivalents

)

Cash, cash equivalents and restricted cash equivalents at beginning of period

Cash, cash equivalents and restricted cash equivalents at end of period

$

The following table provides a reconciliation

of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the same such amounts shown

above:

Current assets:

Cash and cash equivalents

$

$

Restricted cash included in prepaid expenses and other

Other assets:

Restricted cash included in other noncurrent assets

Total cash, cash equivalents and restricted cash equivalents

$

$

DELTA AIR LINES, INC.

Consolidated Balance Sheets

(Unaudited)

(in millions)

ASSETS

Current Assets:

Cash and cash equivalents

$

$

Accounts receivable, net

Fuel, expendable parts and supplies inventories, net

Prepaid expenses and other

Total current assets

Property and Equipment, Net:

Property and equipment, net

Other Assets:

Operating lease right-of-use assets

Goodwill

Identifiable intangibles, net

Equity investments

Other noncurrent assets

Total other assets

Total assets

$

$

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Current maturities of debt and finance leases

$

$

Current maturities of operating leases

Air traffic liability

Accounts payable

Accrued salaries and related benefits

Loyalty program deferred revenue

Fuel card obligation

Other accrued liabilities

Total current liabilities

Noncurrent Liabilities:

Debt and finance leases

Noncurrent operating leases

Pension, postretirement and related benefits

Loyalty program deferred revenue

Deferred income taxes, net

Other noncurrent liabilities

Total noncurrent liabilities

Commitments and Contingencies

Stockholders’ Equity:

Total liabilities and stockholders’ equity

$

$

Note A: The following tables show reconciliations of non-GAAP financial

measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate exactly due to rounding.

Delta sometimes uses information (“non-GAAP

financial measures”) that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting

principles generally accepted in the U.S. (“GAAP”). Under the Securities and Exchange Commission rules, non-GAAP financial

measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or

superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly

comparable GAAP financial measures.

Forward Looking Projections. Delta

is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such as

those used in the reconciliations below will not be known until the end of the period and could be significant.

Adjustments. These reconciliations

include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, and

for the reasons indicated below:

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.

MTM adjustments and settlements

on hedges. Mark-to-market (“MTM”) adjustments are defined as fair value changes recorded in periods other than

the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge

in the contract settlement period, 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.

MTM adjustments on investments.Unrealized gains/losses result from our equity investments that are accounted for at fair value in non-operating expense. The gains/losses

are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies,

particularly those without publicly-traded shares. Adjusting for these gains/losses allows investors to better understand and analyze

our core operational performance in the periods shown.

Loss on extinguishment of debt.This adjustment relates to early termination of a portion of our debt. Adjusting for these losses allows investors to better understand

and analyze our core operational performance in the periods shown.

Operating Margin, adjusted

Three Months Ended

Operating margin

%

%

Adjusted for:

Third-party refinery sales

MTM adjustments and settlements on hedges

)

–

Operating margin, adjusted

%

%

Six Months Ended

Operating margin

%

Adjusted for:

Third-party refinery sales

MTM adjustments and settlements on hedges

)

Operating margin, adjusted

%

Pre-Tax Income, Net Income, and Diluted

Earnings per Share, adjusted

Three Months Ended

Three Months Ended

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$

$

)

$

$

Adjusted for:

MTM adjustments on investments

)

MTM adjustments and settlements on hedges

)

Loss on extinguishment of debt

Non-GAAP

$

$

)

$

$

Three Months Ended

Three Months Ended

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$

$

)

$

$

Adjusted for:

MTM adjustments on investments

MTM adjustments and settlements on hedges

1

Loss on extinguishment of debt

Non-GAAP

$

$

)

$

$

Six Months Ended

Pre-Tax

(in millions, except per share data)

Income

GAAP

$

Adjusted for:

MTM adjustments on investments

)

MTM adjustments and settlements on hedges

)

Loss on extinguishment of debt

Non-GAAP

$

Operating Revenue, adjusted and Total Revenue Per Available Seat Mile

(“TRASM”), adjusted

Three Months Ended

(in millions)

% Change

Operating revenue

$

$

$

Adjusted for:

Third-party refinery sales

)

)

)

Operating revenue, adjusted

$

$

$

1

%

Six Months Ended

(in millions)

% Change

Operating revenue

$

$

Adjusted for:

Third-party refinery sales

)

)

Operating revenue, adjusted

$

$

2

%

Three Months Ended

% Change

TRASM (cents)

Adjusted for:

Third-party refinery sales

)

)

TRASM, adjusted

(3

)%

Operating Income, adjusted

Three Months Ended

(in millions)

Operating income

$

$

Adjusted for:

MTM adjustments and settlements on hedges

)

1

Operating income, adjusted

$

$

Pre-Tax Margin, adjusted

Three Months Ended

Pre-tax margin

%

%

Adjusted for:

Third-party refinery sales

MTM adjustments on investments

)

MTM adjustments and settlements on hedges

)

–

Loss on extinguishment of debt

Pre-tax margin, adjusted

%

%

Operating Cash Flow, adjusted. We

present operating cash flow, adjusted because management believes adjusting for the following item provides a more meaningful measure

for investors:

Net cash flows related to certain

airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating

activities. 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 operating cash flow that is core to our operations in the periods shown.

Three Months Ended

(in millions)

Net cash provided by operating activities

$

$

Adjusted for:

Net cash flows related to certain airport construction projects and other

)

8

Operating cash flow, adjusted

$

$

Six Months Ended

(in millions)

Net cash provided by operating activities

$

Adjusted for:

Net cash flows related to certain airport construction projects and other

Net cash provided by operating activities, adjusted

$

Operating revenue, adjusted related to

premium products and diverse revenue streams

Three Months Ended

(in millions)

Operating revenue

$

Adjusted for:

Third-party refinery sales

)

Operating revenue, adjusted

$

Less: main cabin revenue

)

Operating revenue, adjusted related to premium products and diverse revenue streams

$

Percent of operating revenue, adjusted related to premium products and diverse revenue streams

%

Adjusted Non-Fuel Cost and Non-Fuel Unit

Cost or Cost per Available Seat Mile, (“CASM-Ex”)

We adjust operating expense and CASM for

certain items described above, as well as the following items and reasons described below:

Aircraft fuel and related taxes.The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel

and related taxes allows investors to 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.

Three Months Ended

(in millions)

Operating expense

$

$

Adjusted for:

Aircraft fuel and related taxes

)

)

Third-party refinery sales

)

)

Profit sharing

)

)

Non-Fuel Cost

$

$

Three Months Ended

% Change

CASM (cents)

Adjusted for:

Aircraft fuel and related taxes

)

)

)

Third-party refinery sales

)

)

)

Profit sharing

)

)

)

CASM-Ex