PR Newswire
ATLANTA, April 22, 2020
ATLANTA, April 22, 2020 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the March quarter 2020 and outlined its response to the COVID-19 global pandemic.
"These are truly unprecedented times for all of us, including the airline industry. Government travel restrictions and stay-at-home orders have been effective in slowing the spread of the virus, but have also severely impacted near-term demand for air travel, reducing our expected June quarter revenues by 90 percent, compared to a year ago," said Ed Bastian, Delta's chief executive officer. "Delta is taking decisive action to prioritize the safety of our employees and customers while protecting our business and bolstering liquidity. I am especially proud of the incredible work the Delta people are doing to keep our nation's airways open, playing an active role in the fight against the virus."
Bastian continued, "I would like to thank the President, members of Congress, and the Administration for their bipartisan support of the Payroll Support Program under the CARES Act, which recognizes the important role the airlines play in the U.S. economy. The Payroll Support Program will help safeguard Delta jobs while positioning our nation for recovery."
Response to COVID-19
Network and Customer Experience
To address the challenges of COVID-19, the company is taking the following actions:
Community Response
Delta and its 90,000 employees are taking an active role in our nation's fight against the virus by:
Expense Management
The company expects June quarter total expenses to decline by approximately 50%, or $5 billion, over prior year due to reduced capacity, lower fuel and cost initiatives, including:
Balance Sheet, Cash and Liquidity
Delta's top financial priority remains preserving cash and enhancing liquidity. Accordingly, the company has taken the following actions:
CARES Act Relief
The company expects to receive relief from the Coronavirus Aid, Relief and Economic Security (CARES) Act in the following forms:
"With the significant impact of COVID-19 on Delta's revenue, we were burning $100 million per day at the end of March. Through our decisive actions, we expect that cash burn to moderate to approximately $50 million per day by the end of the June quarter," said Paul Jacobson, Delta's chief financial officer. "The decade of work we put into the balance sheet to lower debt and build unencumbered assets has been critical to our success in raising capital and we expect to end the June quarter with approximately $10 billion in liquidity."
March Quarter Results
Adjusted results primarily exclude the impact of mark-to-market ("MTM") adjustments.
GAAP | $ | % | ||||||
($ in millions except per share and unit costs) | 1Q20 | 1Q19 | ||||||
Pre-tax (loss)/income | (607) | 946 | (1,553) | NM | ||||
Net (loss)/income | (534) | 730 | (1,264) | NM | ||||
Diluted (loss)/earnings per share | (0.84) | 1.09 | (1.93) | NM | ||||
Operating revenue | 8,592 | 10,472 | (1,880) | (18) | % | |||
Fuel expense | 1,595 | 1,978 | (383) | (19) | % | |||
Average fuel price per gallon | 1.81 | 2.06 | (0.25) | (12) | % | |||
Consolidated unit cost (CASM) | 15.30 | 15.14 | 0.16 | 1 | % | |||
Total unit revenues (TRASM) | 14.59 | 16.78 | (2.19) | (13) | % |
Adjusted | $ | % | ||||||
($ in millions except per share and unit costs) | 1Q20 | 1Q19 | ||||||
Pre-tax (loss)/income | (422) | 831 | (1,254) | NM | ||||
Net (loss)/income | (326) | 639 | (965) | NM | ||||
Diluted (loss)/earnings per share | (0.51) | 0.96 | (1.47) | NM | ||||
Operating revenue | 8,592 | 10,381 | (1,789) | (17) | % | |||
Fuel expense | 1,602 | 1,963 | (361) | (18) | % | |||
Average fuel price per gallon | 1.82 | 2.04 | (0.23) | (11) | % | |||
Consolidated unit cost (CASM-Ex) | 12.58 | 11.49 | 1.09 | 9 | % | |||
Total unit revenues (TRASM, adjusted) | 14.59 | 16.63 | (2.04) | (12) | % |
Forward Looking Statements
Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. 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 and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the material adverse effect that the COVID-19 pandemic is having on our business; the impact of incurring significant debt in response to the pandemic; possible effects of accidents involving our aircraft; breaches or security lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence on technology in our operations; the performance of our significant investments in airlines in other parts of the world; the restrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third parties; the cost of aircraft fuel; the availability of aircraft fuel; failure or inability of insurance to cover a significant liability at Monroe's Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key employees; damage to our reputation and brand if we are exposed to significant adverse publicity; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disruptions in service at major airports at which we operate; the effects of extensive government regulation on our business; the impact of environmental regulation on our business; and the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdom related to the exit of the United Kingdom from the European Union.
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 filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of April 22, 2020, and which we have no current intention to update.
DELTA AIR LINES, INC. | |||||||||||
Consolidated Statements of Operations | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
(in millions, except per share data) | 2020 | 2019 | $ Change | % Change | |||||||
Operating Revenue: | |||||||||||
Passenger | $ | 7,569 | $ | 9,254 | $ | (1,685) | (18) | % | |||
Cargo | 152 | 192 | (40) | (21) | % | ||||||
Other | 871 | 1,026 | (155) | (15) | % | ||||||
Total operating revenue | 8,592 | 10,472 | (1,880) | (18) | % | ||||||
Operating Expense: | |||||||||||
Salaries and related costs | 2,771 | 2,639 | 132 | 5 | % | ||||||
Aircraft fuel and related taxes | 1,595 | 1,978 | (383) | (19) | % | ||||||
Regional carriers expense, excluding fuel | 902 | 893 | 9 | 1 | % | ||||||
Depreciation and amortization | 678 | 615 | 63 | 10 | % | ||||||
Contracted services | 675 | 632 | 43 | 7 | % | ||||||
Aircraft maintenance materials and outside repairs | 469 | 476 | (7) | (1) | % | ||||||
Landing fees and other rents | 467 | 419 | 48 | 11 | % | ||||||
Passenger commissions and other selling expenses | 358 | 427 | (69) | (16) | % | ||||||
Passenger service | 257 | 271 | (14) | (5) | % | ||||||
Ancillary businesses and refinery | 219 | 351 | (132) | (38) | % | ||||||
Aircraft rent | 100 | 102 | (2) | (2) | % | ||||||
Profit sharing | — | 220 | (220) | (100) | % | ||||||
Other | 511 | 429 | 82 | 19 | % | ||||||
Total operating expense | 9,002 | 9,452 | (450) | (5) | % | ||||||
Operating (Loss)/Income | (410) | 1,020 | (1,430) | NM | |||||||
Non-Operating Expense: | |||||||||||
Interest expense, net | (79) | (83) | 4 | (5) | % | ||||||
Gain/(loss) on investments, net | (112) | 100 | (212) | NM | |||||||
Miscellaneous, net | (6) | (91) | 85 | (93) | % | ||||||
Total non-operating expense, net | (197) | (74) | (123) | NM | |||||||
(Loss)/Income Before Income Taxes | (607) | 946 | (1,553) | NM | |||||||
Income Tax Benefit/(Provision) | 73 | (216) | 289 | NM | |||||||
Net (Loss)/Income | $ | (534) | $ | 730 | $ | (1,264) | NM | ||||
Basic (Loss)/Earnings Per Share | $ | (0.84) | $ | 1.10 | |||||||
Diluted (Loss)/Earnings Per Share | $ | (0.84) | $ | 1.09 | |||||||
Basic Weighted Average Shares Outstanding | 637 | 665 | |||||||||
Diluted Weighted Average Shares Outstanding | 637 | 667 | |||||||||
DELTA AIR LINES, INC. | |||||||||||
Passenger Revenue | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
(in millions) | 2020 | 2019 | $ Change | % Change | |||||||
Ticket- Main cabin | $ | 3,798 | $ | 4,721 | $ | (923) | (19.6) | % | |||
Ticket- Business cabin and premium products | 2,713 | 3,267 | (554) | (17.0) | % | ||||||
Loyalty travel awards | 543 | 692 | (149) | (21.5) | % | ||||||
Travel-related services | 515 | 574 | (59) | (10.3) | % | ||||||
Total passenger revenue | $ | 7,569 | $ | 9,254 | $ | (1,685) | (18.2) | % | |||
DELTA AIR LINES, INC. | |||||||||||
Other Revenue | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
(in millions) | 2020 | 2019 | $ Change | % Change | |||||||
Loyalty program | $ | 474 | $ | 474 | $ | — | — | % | |||
Ancillary businesses and refinery | 223 | 369 | (146) | (39.6) | % | ||||||
Miscellaneous | 174 | 183 | (9) | (4.9) | % | ||||||
Total other revenue | $ | 871 | $ | 1,026 | $ | (155) | (15.1) | % | |||
DELTA AIR LINES, INC. | ||||||||
Total Revenue | ||||||||
(Unaudited) | ||||||||
Increase (Decrease) | ||||||||
1Q20 versus 1Q19 | ||||||||
Revenue | 1Q20 ($M) | Change | Unit | Yield | Capacity | |||
Domestic | $ | 5,601 | (16.9)% | (16.0)% | (3.2)% | (1.1)% | ||
Atlantic | 818 | (23.8)% | (13.3)% | (5.5)% | (12.1)% | |||
Latin America | 765 | (11.2)% | (5.6)% | 1.5% | (5.9)% | |||
Pacific | 385 | (33.3)% | (9.3)% | 1.0% | (26.5)% | |||
Total Passenger | $ | 7,569 | (18.2)% | (13.3)% | (2.0)% | (5.7)% | ||
Cargo Revenue | 152 | (20.8)% | ||||||
Other Revenue | 871 | (15.1)% | ||||||
Total Revenue | $ | 8,592 | (18.0)% | (13.1)% | ||||
Third Party Refinery Sales | — | |||||||
Total Revenue, adjusted | $ | 8,592 | (17.2)% | (12.3)% | ||||
DELTA AIR LINES, INC. | |||||||||
Statistical Summary | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2020 | 2019 | Change | |||||||
Revenue passenger miles (millions) | 43,062 | 51,617 | (16.6) | % | |||||
Available seat miles (millions) | 58,885 | 62,416 | (5.7) | % | |||||
Passenger mile yield (cents) | 17.58 | 17.93 | (2.0) | % | |||||
Passenger revenue per available seat mile (cents) | 12.85 | 14.83 | (13.3) | % | |||||
Total revenue per available seat mile (cents) | 14.59 | 16.78 | (13.1) | % | |||||
TRASM, adjusted - see Note A (cents) | 14.59 | 16.63 | (12.3) | % | |||||
Operating cost per available seat mile (cents) | 15.30 | 15.14 | 1.0 | % | |||||
CASM-Ex - see Note A (cents) | 12.58 | 11.49 | 9.5 | % | |||||
Passenger load factor | 73.1 | % | 82.7 | % | (9.6) | pts | |||
Fuel gallons consumed (millions) | 880 | 962 | (8.5) | % | |||||
Average price per fuel gallon | $ | 1.81 | $ | 2.06 | (12.1) | % | |||
Average price per fuel gallon, adjusted - see Note A | $ | 1.82 | $ | 2.04 | (11.0) | % | |||
Number of aircraft in fleet, end of period | 677 | 1,039 | (362) |
DELTA AIR LINES, INC. | ||||||
Consolidated Statements of Cash Flows | ||||||
(Unaudited) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
(in millions) | 2020 | 2019 | ||||
Cash Flows From Operating Activities: | ||||||
Net (loss) income | $ | (534) | $ | 730 | ||
Depreciation and amortization | 678 | 615 | ||||
Deferred income taxes | 21 | 219 | ||||
Pension, postretirement and postemployment payments greater than expense | (75) | 3 | ||||
Change in receivables | 682 | (897) | ||||
Change in prepaids and other current assets | 343 | 162 | ||||
Changes in air traffic liability | 482 | 1,938 | ||||
Changes in profit sharing | (1,647) | (1,069) | ||||
Other, net | 408 | 241 | ||||
Net cash provided by operating activities | 358 | 1,942 | ||||
Cash Flows From Investing Activities: | ||||||
Property and equipment additions: | ||||||
Flight equipment, including advance payments | (629) | (1,059) | ||||
Ground property and equipment, including technology | (308) | (301) | ||||
Redemption of short-term investments | — | 206 | ||||
Acquisition of strategic investments | (2,099) | — | ||||
Other, net | 65 | 58 | ||||
Net cash used in investing activities | (2,971) | (1,096) | ||||
Cash Flows From Financing Activities: | ||||||
Payments on debt and finance lease obligations | (1,238) | (1,285) | ||||
Repurchase of common stock | (344) | (1,325) | ||||
Cash dividends | (260) | (233) | ||||
Proceeds from short-term obligations | 2,882 | 1,750 | ||||
Proceeds from long-term obligations | 3,962 | 500 | ||||
Other, net | 342 | (16) | ||||
Net cash provided by (used in) financing activities | 5,344 | (609) | ||||
Net Increase in Cash, Cash Equivalents and Restricted Cash Equivalents | 2,731 | 237 | ||||
Cash, cash equivalents and restricted cash equivalents at beginning of period | 3,730 | 2,748 | ||||
Cash, cash equivalents and restricted cash equivalents at end of period | $ 6,461 | $ 2,985 | ||||
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 | $ | 5,967 | $ | 1,910 | ||
Restricted cash included in prepaid expenses and other | 39 | 57 | ||||
Other assets: | ||||||
Cash restricted for airport construction | 455 | 1,018 | ||||
Total cash, cash equivalents and restricted cash equivalents | $ | 6,461 | $ | 2,985 |
DELTA AIR LINES, INC. | ||||||||
Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
March 31, | December 31, | |||||||
(in millions) | 2020 | 2019 | ||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 5,967 | $ | 2,882 | ||||
Accounts receivable, net | 2,280 | 2,854 | ||||||
Fuel inventory | 439 | 730 | ||||||
Expendable parts and supplies inventories, net | 535 | 521 | ||||||
Prepaid expenses and other | 1,054 | 1,262 | ||||||
Total current assets | 10,275 | 8,249 | ||||||
Property and Equipment, Net: | ||||||||
Property and equipment, net | 31,644 | 31,310 | ||||||
Other Assets: | ||||||||
Operating lease right-of-use assets | 5,488 | 5,627 | ||||||
Goodwill | 9,753 | 9,781 | ||||||
Identifiable intangibles, net | 6,019 | 5,163 | ||||||
Cash restricted for airport construction | 455 | 636 | ||||||
Equity investments | 3,684 | 2,568 | ||||||
Other noncurrent assets | 1,420 | 1,198 | ||||||
Total other assets | 26,819 | 24,973 | ||||||
Total assets | $ | 68,738 | $ | 64,532 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Current maturities of debt and finance leases | $ | 4,337 | $ | 2,287 | ||||
Current maturities of operating leases | 768 | 801 | ||||||
Air traffic liability | 5,598 | 5,116 | ||||||
Accounts payable | 3,337 | 3,266 | ||||||
Accrued salaries and related benefits | 1,844 | 3,701 | ||||||
Loyalty program deferred revenue | 1,099 | 3,219 | ||||||
Fuel card obligation | 1,100 | 736 | ||||||
Other accrued liabilities | 1,309 | 1,078 | ||||||
Total current liabilities | 19,392 | 20,204 | ||||||
Noncurrent Liabilities: | ||||||||
Debt and finance leases | 12,662 | 8,873 | ||||||
Pension, postretirement and related benefits | 8,285 | 8,452 | ||||||
Loyalty program deferred revenue | 5,718 | 3,509 | ||||||
Noncurrent operating leases | 5,204 | 5,294 | ||||||
Deferred income taxes, net | 1,502 | 1,456 | ||||||
Other noncurrent liabilities | 1,666 | 1,386 | ||||||
Total noncurrent liabilities | 35,037 | 28,970 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity: | 14,309 | 15,358 | ||||||
Total liabilities and stockholders' equity | $ | 68,738 | $ | 64,532 |
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 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 U.S. 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. The Company is not able to reconcile forward looking non-GAAP financial measures 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.
Pre-Tax (Loss)/Income and Net (Loss)/Income, adjusted. We adjust pre-tax (loss)/income and net (loss)/income for the following items to determine pre-tax (loss)/income and net (loss)/income, adjusted for the reasons described below. We include the income tax effect of adjustments when presenting net (loss)/income, adjusted.
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. Settlements represent cash received or paid on hedge contracts settled during the applicable period.
Equity investment MTM adjustments. We record our proportionate share of earnings/loss from our equity investments in Virgin Atlantic and Aeroméxico in non-operating expense. We adjust for our equity method investees' hedge portfolio MTM adjustments to allow investors to understand and analyze our core operational performance in the periods shown.
MTM adjustments on investments. Unrealized gains/losses on our equity investments in GOL, China Eastern, Air France-KLM and Hanjin-KAL, the largest shareholder of Korean Air, which are accounted for at fair value in non-operating expense, are driven by changes in stock prices and foreign currency. During the December 2019 quarter, we sold our GOL investment, which generated a gain in adjusted results that had previously been included in GAAP results. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.
Delta Private Jets adjustment. Because we combined Delta Private Jets with Wheels Up in January 2020, we have excluded the impact of Delta Private Jets from 2019 results for comparability.
Three Months Ended | Three Months Ended | ||||||||||||
March 31, 2020 | March 31, 2020 | ||||||||||||
Pre-Tax | Income | Net | Net Loss | ||||||||||
(in millions, except per share data) | Loss | Tax | Loss | Per Diluted Share | |||||||||
GAAP | $ | (607) | $ | 73 | $ | (534) | $ | (0.84) | |||||
Adjusted for: | |||||||||||||
MTM adjustments and settlements on hedges | (7) | 2 | (5) | ||||||||||
Equity investment MTM adjustments | 69 | (16) | 53 | ||||||||||
MTM adjustments on investments | 123 | 37 | 160 | ||||||||||
Total adjustments | 185 | 23 | 208 | 0.33 | |||||||||
Non-GAAP | $ | (422) | $ | 96 | $ | (326) | $ | (0.51) | |||||
Three Months Ended | Three Months Ended | ||||||||||||
March 31, 2019 | March 31, 2019 | ||||||||||||
Pre-Tax | Income | Net | Net Income | ||||||||||
(in millions, except per share data) | Income | Tax | Income | Per Diluted Share | |||||||||
GAAP | $ | 946 | $ | (216) | $ | 730 | $ | 1.09 | |||||
Adjusted for: | |||||||||||||
MTM adjustments and settlements on hedges | 8 | (2) | 6 | ||||||||||
Equity investment MTM adjustments | (21) | 5 | (16) | ||||||||||
MTM adjustments on investments | (100) | 20 | (80) | ||||||||||
Delta Private Jets adjustment | (1) | — | (1) | ||||||||||
Total adjustments | (115) | 23 | (91) | (0.13) | |||||||||
Non-GAAP | $ | 831 | $ | 193 | $ | 639 | $ | 0.96 | |||||
Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex"). We adjust CASM for the following items to determine CASM-Ex for the reasons described below. We adjust for the Delta Private Jets sale for the same reason described above under the heading pre-tax (loss)/income and net (loss)/income, adjusted.
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 understand and analyze our non-fuel costs and year-over-year financial performance.
Third-party refinery sales. We adjust CASM for refinery sales to third parties to determine CASM-Ex because these revenues are not related to our airline segment. CASM-Ex therefore provides a more meaningful comparison of revenue from our airline operations to the rest of the airline industry.
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 | |||||||||||
March 31, 2020 | March 31, 2019 | Change | |||||||||
CASM (cents) | 15.30 | 15.14 | |||||||||
Adjusted for: | |||||||||||
Aircraft fuel and related taxes | (2.72) | (3.17) | |||||||||
Third-party refinery sales | — | (0.08) | |||||||||
Profit sharing | — | (0.35) | |||||||||
Delta Private Jets adjustment | — | (0.05) | |||||||||
CASM-Ex | 12.58 | 11.49 | 9 | % | |||||||
Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted. We adjust operating revenue and TRASM for refinery sales to third parties for the same reason described under the heading non-fuel unit cost or cost per available seat mile. We adjust for the Delta Private Jets sale for the same reason described above under the heading pre-tax (loss)/income and net (loss)/income, adjusted. Operating revenue, adjusted and TRASM, adjusted therefore provide a more meaningful comparison of revenue from our airline operations to the rest of the airline industry.
Three Months Ended | ||||||||||||
(in millions) | March 31, 2020 | March 31, 2019 | Change | |||||||||
Operating revenue | $ | 8,592 | $ | 10,472 | ||||||||
Adjusted for: | ||||||||||||
Third-party refinery sales | — | (48) | ||||||||||
Delta Private Jets adjustment | — | (43) | ||||||||||
Operating revenue, adjusted | $ | 8,592 | $ | 10,381 | (17.2) | % | ||||||
Three Months Ended | ||||||||||||
March 31, 2020 | March 31, 2019 | Change | ||||||||||
TRASM (cents) | 14.59 | 16.78 | ||||||||||
Adjusted for: | ||||||||||||
Third-party refinery sales | — | (0.08) | ||||||||||
Delta Private Jets adjustment | — | (0.07) | ||||||||||
TRASM, adjusted | 14.59 | 16.63 | (12.3) | % | ||||||||
Fuel expense, adjusted and Average fuel price per gallon, adjusted. The tables below show the components of fuel expense, including the impact of hedging and the refinery on fuel expense and average price per gallon. We then adjust for MTM adjustments and settlements on hedges and the Delta Private Jets sale for the same reasons described under the heading pre-tax (loss)/income and net (loss)/ income, adjusted.
Average Price Per Gallon | |||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(in millions, except per gallon data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Fuel purchase cost | $ | 1,631 | $ | 1,936 | $ | 1.85 | $ | 2.01 | |||||||
Fuel hedge impact | (7) | 8 | (0.01) | 0.01 | |||||||||||
Refinery segment impact | (29) | 34 | (0.03) | 0.04 | |||||||||||
Total fuel expense | $ | 1,595 | $ | 1,978 | $ | 1.81 | $ | 2.06 | |||||||
MTM adjustments and settlements on hedges | 7 | (8) | 0.01 | (0.01) | |||||||||||
Delta Private Jets adjustment | — | (7) | — | (0.01) | |||||||||||
Total fuel expense, adjusted | $ | 1,602 | $ | 1,963 | $ | 1.82 | $ | 2.04 | |||||||
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SOURCE Delta Air Lines
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