Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 001-5424 |
Entity Registrant Name | DELTA AIR LINES, INC. |
Entity Central Index Key | 0000027904 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 58-0218548 |
Entity Address, Address Line One | Post Office Box 20706 |
Entity Address, City or Town | Atlanta |
Entity Address, State or Province | GA |
Entity Address, Postal Zip Code | 30320-6001 |
City Area Code | 404 |
Local Phone Number | 715-2600 |
Title of 12(b) Security | Common Stock, par value $0.0001 per share |
Security Exchange Name | NYSE |
Trading Symbol | DAL |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 646,742,854 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 1,899 | $ 1,565 |
Accounts receivable, net of an allowance for uncollectible accounts of $14 and $12 at September 30, 2019 and December 31, 2018, respectively | 2,836 | 2,314 |
Fuel inventory | 568 | 592 |
Expendable parts and supplies inventories, net of an allowance for obsolescence of $94 and $102 at September 30, 2019 and December 31, 2018, respectively | 504 | 463 |
Prepaid expenses and other | 1,137 | 1,406 |
Total current assets | 6,944 | 6,340 |
Noncurrent Assets: | ||
Property and equipment, net of accumulated depreciation and amortization of $17,213 and $15,823 at September 30, 2019 and December 31, 2018, respectively | 30,796 | 28,335 |
Operating lease right-of-use assets | 5,815 | 5,994 |
Goodwill | 9,781 | 9,781 |
Identifiable intangibles, net of accumulated amortization of $871 and $862 at September 30, 2019 and December 31, 2018, respectively | 4,821 | 4,830 |
Cash restricted for airport construction | 753 | 1,136 |
Other noncurrent assets | 4,309 | 3,850 |
Total noncurrent assets | 56,275 | 53,926 |
Total assets | 63,219 | 60,266 |
Current Liabilities: | ||
Current maturities of long-term debt and finance leases | 2,196 | 1,518 |
Current maturities of operating leases | 844 | 955 |
Accounts payable | 3,470 | 2,976 |
Accrued salaries and related benefits | 3,119 | 3,287 |
Fuel card obligation | 439 | 1,075 |
Other accrued liabilities | 1,181 | 1,117 |
Total current liabilities | 20,211 | 18,578 |
Noncurrent Liabilities: | ||
Long-term debt and finance leases | 7,923 | 8,253 |
Pension, postretirement and related benefits | 8,457 | 9,163 |
Noncurrent operating leases | 5,441 | 5,801 |
Deferred income taxes, net | 1,245 | 163 |
Other noncurrent liabilities | 1,378 | 969 |
Total noncurrent liabilities | 27,940 | 28,001 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 655,694,564 and 688,136,306 shares issued at September 30, 2019 and December 31, 2018, respectively | 0 | 0 |
Additional paid-in capital | 11,177 | 11,671 |
Retained earnings | 11,772 | 10,039 |
Accumulated other comprehensive loss | (7,645) | (7,825) |
Treasury stock, at cost, 8,951,710 and 8,191,831 shares at September 30, 2019 and December 31, 2018, respectively | (236) | (198) |
Total stockholders' equity | 15,068 | 13,687 |
Total liabilities and stockholders' equity | 63,219 | 60,266 |
Air Traffic | ||
Current Liabilities: | ||
Deferred revenue liability | 5,762 | 4,661 |
Loyalty program | ||
Current Liabilities: | ||
Deferred revenue liability | 3,200 | 2,989 |
Noncurrent Liabilities: | ||
Loyalty program deferred revenue | $ 3,496 | $ 3,652 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Allowance for uncollectible accounts | $ 14 | $ 12 |
Allowance for obsolescence | 94 | 102 |
Noncurrent Assets: | ||
Accumulated depreciation and amortization | 17,213 | 15,823 |
Accumulated amortization | $ 871 | $ 862 |
Stockholders' Equity: | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, issued (shares) | 655,694,564 | 688,136,306 |
Treasury stock, at cost (shares) | 8,951,710 | 8,191,831 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Revenue: | ||||
Total operating revenue | $ 12,560 | $ 11,953 | $ 35,568 | $ 33,696 |
Operating Expense: | ||||
Salaries and related costs | 2,884 | 2,753 | 8,275 | 8,004 |
Aircraft fuel and related taxes | 2,239 | 2,498 | 6,508 | 6,693 |
Regional carriers expense, excluding fuel | 900 | 885 | 2,698 | 2,586 |
Contracted services | 685 | 562 | 1,974 | 1,646 |
Depreciation and amortization | 631 | 573 | 1,960 | 1,759 |
Passenger commissions and other selling expenses | 539 | 535 | 1,505 | 1,473 |
Aircraft maintenance materials and outside repairs | 424 | 371 | 1,334 | 1,233 |
Landing fees and other rents | 460 | 439 | 1,321 | 1,254 |
Profit sharing | 517 | 399 | 1,256 | 991 |
Ancillary businesses and refinery | 279 | 410 | 945 | 1,396 |
Passenger service | 345 | 329 | 938 | 892 |
Aircraft rent | 110 | 99 | 318 | 291 |
Other | 476 | 455 | 1,317 | 1,305 |
Total operating expense | 10,489 | 10,308 | 30,349 | 29,523 |
Operating Income | 2,071 | 1,645 | 5,219 | 4,173 |
Non-Operating (Expense)/Income: | ||||
Interest expense, net | (70) | (73) | (228) | (244) |
Unrealized gain/(loss) on investments, net | (35) | 50 | (17) | (171) |
Miscellaneous, net | (19) | 66 | (174) | 48 |
Total non-operating (expense)/income, net | (124) | 43 | (419) | (367) |
Income Before Income Taxes | 1,947 | 1,688 | 4,800 | 3,806 |
Income Tax Provision | (452) | (366) | (1,131) | (890) |
Net Income | $ 1,495 | $ 1,322 | $ 3,669 | $ 2,916 |
Basic Earnings Per Share (USD per share) | $ 2.32 | $ 1.93 | $ 5.61 | $ 4.20 |
Diluted Earnings Per Share (USD per share) | 2.31 | 1.92 | 5.59 | 4.18 |
Cash Dividends Declared Per Share (USD per share) | $ 0.40 | $ 0.35 | $ 1.10 | $ 0.96 |
Comprehensive Income | $ 1,545 | $ 1,393 | $ 3,849 | $ 3,002 |
Passenger | ||||
Operating Revenue: | ||||
Total operating revenue | 11,410 | 10,796 | 32,032 | 30,107 |
Cargo | ||||
Operating Revenue: | ||||
Total operating revenue | 189 | 226 | 567 | 651 |
Other | ||||
Operating Revenue: | ||||
Total operating revenue | $ 961 | $ 931 | $ 2,969 | $ 2,938 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net Cash Provided by Operating Activities | ||
Net Cash Provided by Operating Activities | $ 7,468 | $ 5,769 |
Property and equipment additions: | ||
Flight equipment, including advance payments | (2,774) | (2,833) |
Ground property and equipment, including technology | (1,090) | (972) |
Purchase of short-term investments | 0 | (145) |
Redemption of short-term investments | 206 | 490 |
Purchase of equity investments | (170) | 0 |
Other, net | 32 | 87 |
Net cash used in investing activities | (3,796) | (3,373) |
Cash Flows from Financing Activities: | ||
Payments on long-term debt and finance lease obligations | (2,805) | (2,741) |
Repurchase of common stock | (1,802) | (1,250) |
Cash dividends | (721) | (670) |
Proceeds from short-term obligations | 1,750 | 0 |
Proceeds from long-term obligations | 500 | 3,124 |
Fuel card obligation | (636) | (1) |
Other, net | (8) | (63) |
Net cash used in financing activities | (3,722) | (1,601) |
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash Equivalents | (50) | 795 |
Cash, cash equivalents and restricted cash equivalents at beginning of period | 2,748 | 1,853 |
Cash, cash equivalents and restricted cash equivalents at end of period | 2,698 | 2,648 |
Non-Cash Transactions: | ||
Right-of-use assets acquired under operating leases | 459 | 908 |
Operating leases converted to finance leases | 189 | 0 |
Flight and ground equipment acquired under finance leases | 619 | 69 |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash Equivalents | ||
Total cash, cash equivalents and restricted cash equivalents | $ 2,748 | $ 1,853 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |
Beginning balance at Dec. 31, 2017 | $ 12,530 | $ 0 | $ 12,053 | $ 8,256 | $ (7,621) | $ (158) | |
Beginning balance (shares) at Dec. 31, 2017 | 715 | 7 | |||||
Net income | 557 | 557 | |||||
Change in accounting principle and other | (245) | (139) | (106) | ||||
Dividends declared | (216) | (216) | |||||
Other comprehensive income | 46 | 46 | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | (26) | 10 | $ (36) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 1 | 1 | ||||
Stock options exercised | 1 | 1 | |||||
Stock options exercised (shares) | 1 | ||||||
Stock purchased and retired | (325) | (97) | (228) | ||||
Stock purchased and retired (shares) | (6) | ||||||
Ending balance at Mar. 31, 2018 | 12,322 | $ 0 | 11,967 | 8,230 | (7,681) | $ (194) | |
Ending balance (shares) at Mar. 31, 2018 | 711 | 8 | |||||
Beginning balance at Dec. 31, 2017 | 12,530 | $ 0 | 12,053 | 8,256 | (7,621) | $ (158) | |
Beginning balance (shares) at Dec. 31, 2017 | 715 | 7 | |||||
Net income | 2,916 | ||||||
Ending balance at Sep. 30, 2018 | 13,491 | $ 0 | 11,740 | 9,483 | (7,535) | $ (197) | |
Ending balance (shares) at Sep. 30, 2018 | 694 | 8 | |||||
Beginning balance at Mar. 31, 2018 | 12,322 | $ 0 | 11,967 | 8,230 | (7,681) | $ (194) | |
Beginning balance (shares) at Mar. 31, 2018 | 711 | 8 | |||||
Net income | 1,036 | 1,036 | |||||
Change in accounting principle and other | (13) | (13) | |||||
Dividends declared | (213) | (213) | |||||
Other comprehensive income | 75 | 75 | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | 27 | 29 | $ (2) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 0 | 0 | ||||
Stock purchased and retired | (600) | (189) | (411) | ||||
Stock purchased and retired (shares) | (12) | ||||||
Ending balance at Jun. 30, 2018 | 12,634 | $ 0 | 11,807 | 8,629 | (7,606) | $ (196) | |
Ending balance (shares) at Jun. 30, 2018 | 699 | 8 | |||||
Net income | 1,322 | 1,322 | |||||
Dividends declared | (242) | (242) | |||||
Other comprehensive income | 71 | 71 | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | 31 | 32 | $ (1) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 0 | 0 | ||||
Stock purchased and retired | (325) | (99) | (226) | ||||
Stock purchased and retired (shares) | (5) | ||||||
Ending balance at Sep. 30, 2018 | 13,491 | $ 0 | 11,740 | 9,483 | (7,535) | $ (197) | |
Ending balance (shares) at Sep. 30, 2018 | 694 | 8 | |||||
Beginning balance at Dec. 31, 2018 | 13,687 | $ 0 | 11,671 | 10,039 | (7,825) | $ (198) | |
Beginning balance (shares) at Dec. 31, 2018 | 688 | 8 | |||||
Net income | 730 | 730 | |||||
Dividends declared | (232) | (232) | |||||
Other comprehensive income | 59 | 59 | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | (8) | 27 | $ (35) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 2 | 1 | ||||
Stock purchased and retired | (1,325) | (444) | (881) | ||||
Stock purchased and retired (shares) | (26) | ||||||
Ending balance at Mar. 31, 2019 | 12,911 | $ 0 | 11,254 | 9,656 | (7,766) | $ (233) | |
Ending balance (shares) at Mar. 31, 2019 | 664 | 9 | |||||
Beginning balance at Dec. 31, 2018 | 13,687 | $ 0 | 11,671 | 10,039 | (7,825) | $ (198) | |
Beginning balance (shares) at Dec. 31, 2018 | 688 | 8 | |||||
Net income | 3,669 | ||||||
Ending balance at Sep. 30, 2019 | 15,068 | $ 0 | 11,177 | 11,772 | (7,645) | $ (236) | |
Ending balance (shares) at Sep. 30, 2019 | 656 | 9 | |||||
Beginning balance at Mar. 31, 2019 | 12,911 | $ 0 | 11,254 | 9,656 | (7,766) | $ (233) | |
Beginning balance (shares) at Mar. 31, 2019 | 664 | 9 | |||||
Net income | 1,443 | 1,443 | |||||
Dividends declared | (229) | (229) | |||||
Other comprehensive income | 72 | 72 | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | 29 | 31 | $ (2) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 0 | 0 | ||||
Stock purchased and retired | (268) | (84) | (184) | ||||
Stock purchased and retired (shares) | (5) | ||||||
Ending balance at Jun. 30, 2019 | 13,958 | $ 0 | 11,201 | 10,686 | (7,694) | $ (235) | |
Ending balance (shares) at Jun. 30, 2019 | 659 | 9 | |||||
Net income | 1,495 | 1,495 | |||||
Dividends declared | (261) | (261) | |||||
Other comprehensive income | 49 | 49 | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | 35 | 36 | $ (1) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 0 | 0 | ||||
Stock purchased and retired | (208) | (60) | (148) | ||||
Stock purchased and retired (shares) | (3) | ||||||
Ending balance at Sep. 30, 2019 | $ 15,068 | $ 0 | $ 11,177 | $ 11,772 | $ (7,645) | $ (236) | |
Ending balance (shares) at Sep. 30, 2019 | 656 | 9 | |||||
[1] | Weighted average price per share. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Treasury shares withheld for payment of taxes, weighted average price per share (USD per share) | $ 58.68 | $ 55.06 | $ 49.75 | $ 52.59 | $ 52.99 | $ 55.08 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Delta Air Lines, Inc. and our wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K for the year ended December 31, 2018 . Management believes the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair statement of results for the interim periods presented. Due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices and other factors, operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of operating results for the entire year. We reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. Recent Accounting Standards Comprehensive Income . In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220)." This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income/(loss) ("AOCI") to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard is effective for interim and annual reporting periods beginning after December 15, 2018. We adopted this standard effective January 1, 2019 with the election not to reclassify $1.2 billion of stranded tax effects, primarily related to our pension plans, from AOCI to retained earnings. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Passenger Revenue Passenger revenue is primarily composed of passenger ticket sales, loyalty travel awards and travel-related services performed in conjunction with a passenger’s flight. Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Ticket $ 10,029 $ 9,553 $ 27,986 $ 26,514 Loyalty travel awards 732 678 2,174 1,976 Travel-related services 649 565 1,872 1,617 Total passenger revenue $ 11,410 $ 10,796 $ 32,032 $ 30,107 We recognized approximately $3.7 billion in passenger revenue during the nine months ended September 30, 2019 that was recorded in our air traffic liability balance at December 31, 2018 . We expect the remaining balance of the December 31, 2018 liability to be recognized by the end of 2019 . Other Revenue Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Loyalty program $ 485 $ 369 $ 1,443 $ 1,075 Ancillary businesses and refinery 291 433 990 1,475 Miscellaneous 185 129 536 388 Total other revenue $ 961 $ 931 $ 2,969 $ 2,938 Loyalty Program Our SkyMiles loyalty program generates customer loyalty by rewarding customers with incentives to travel on Delta. This program allows customers to earn mileage credits by flying on Delta, Delta Connection and other airlines that participate in the loyalty program. When traveling, customers earn redeemable mileage credits based on the passenger's loyalty program status and ticket price. Customers can also earn mileage credits through participating companies such as credit card companies, hotels, car rental agencies and ridesharing companies. To facilitate transactions with participating companies, we sell mileage credits to non-airline businesses, customers and other airlines. Mileage credits are redeemable by customers in future periods for air travel on Delta and other participating airlines, membership in our Sky Club and other program awards. During the nine months ended September 30, 2019 and 2018 , total cash sales from marketing agreements related to our loyalty program were $3.1 billion and $2.6 billion , respectively, which are allocated to travel and other performance obligations. Our most significant contract to sell mileage credits relates to our co-brand credit card relationship with American Express. Our agreements with American Express provide for joint marketing, grant certain benefits to Delta-American Express co-branded credit card holders ("cardholders") and American Express Membership Rewards program participants, and allow American Express to market its services or products using our customer database. Cardholders earn mileage credits for making purchases using co-branded cards, and certain cardholders may also check their first bag for free, are granted discounted access to Delta Sky Club lounges and receive priority boarding and other benefits while traveling on Delta. Additionally, participants in the American Express Membership Rewards program may exchange their points for mileage credits under the loyalty program. We sell mileage credits at agreed-upon rates to American Express which are then provided to their customers under the co-brand credit card program and the Membership Rewards program. We account for marketing agreements, including those with American Express, consistent with the accounting method that allocates the consideration received to the individual products and services delivered. We allocate the value based on the relative selling prices of those products and services, which generally consist of award travel, priority boarding, baggage fee waivers, lounge access and the use of our brand. We determine our best estimate of the selling prices by considering a discounted cash flow analysis using multiple inputs and assumptions, including: (1) the expected number of miles awarded and number of miles redeemed, (2) equivalent ticket value ("ETV") for the award travel obligation, (3) published rates on our website for baggage fees, discounted access to Delta Sky Club lounges and other benefits while traveling on Delta and (4) brand value. Effective January 1, 2019, we amended our co-brand agreement with American Express, and we also amended other agreements with American Express during the current year. The new agreements increase the value we receive and extend the terms to 2029. The products and services delivered are consistent with previous agreements, and we continue to use the accounting method that allocates the consideration received based on the relative selling prices of those products and services. We defer the amount for award travel obligation as part of loyalty program deferred revenue and recognize loyalty travel awards in passenger revenue as the mileage credits are used for travel. 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 access Delta Sky Club lounges is recognized as miscellaneous in other revenue as access is provided. Revenue allocated to the remaining performance obligations, primarily brand value, is recorded as loyalty program in other revenue over time as miles are delivered. Current Activity of the Loyalty Program. Mileage credits are combined in one homogeneous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty deferred revenue balance at the beginning of the period as well as miles that were issued during the period. The table below presents the activity of the current and noncurrent loyalty liability and includes miles earned through travel and miles sold to participating companies, which are primarily through marketing agreements. (in millions) 2019 2018 Balance at January 1 $ 6,641 $ 6,321 Mileage credits earned 2,352 2,322 Travel mileage credits redeemed (2,175 ) (1,976 ) Non-travel mileage credits redeemed (122 ) (125 ) Balance at September 30 $ 6,696 $ 6,542 The timing of mileage redemptions can vary widely; however, the majority of new miles are redeemed within two years . Revenue by Geographic Region Operating revenue for the airline segment is recognized in a specific geographic region based on the origin, flight path and destination of each flight segment. The majority of the revenues of the refinery, consisting of fuel sales to the airline, have been eliminated in the Condensed Consolidated Financial Statements. The remaining operating revenue for the refinery segment is included in the domestic region. Our passenger and operating revenue by geographic region is summarized in the following tables: Passenger Revenue Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Domestic $ 7,971 $ 7,395 $ 22,755 $ 21,093 Atlantic 2,060 1,996 5,042 4,837 Latin America 683 675 2,298 2,228 Pacific 696 730 1,937 1,949 Total $ 11,410 $ 10,796 $ 32,032 $ 30,107 Operating Revenue Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Domestic $ 8,651 $ 8,125 $ 24,925 $ 23,480 Atlantic 2,336 2,244 5,788 5,494 Latin America 757 741 2,559 2,449 Pacific 816 843 2,296 2,273 Total $ 12,560 $ 11,953 $ 35,568 $ 33,696 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets (Liabilities) Measured at Fair Value on a Recurring Basis (in millions) September 30, Level 1 Level 2 Cash equivalents $ 1,489 $ 1,489 $ — Restricted cash equivalents 798 798 — Long-term investments 1,214 1,009 205 Hedge derivatives, net Fuel hedge contracts 22 15 7 Interest rate contracts 82 — 82 Foreign currency exchange contracts 21 — 21 (in millions) December 31, Level 1 Level 2 Cash equivalents $ 1,222 $ 1,222 $ — Restricted cash equivalents 1,183 1,183 — Short-term investments U.S. government and agency securities 50 45 5 Asset- and mortgage-backed securities 36 — 36 Corporate obligations 90 — 90 Other fixed income securities 27 — 27 Long-term investments 1,084 880 204 Hedge derivatives, net Fuel hedge contracts 15 20 (5 ) Interest rate contracts 1 — 1 Foreign currency exchange contracts (3 ) — (3 ) Cash Equivalents and Restricted Cash Equivalents. Cash equivalents generally consist of money market funds. Restricted cash equivalents generally consist of money market funds, time deposits, commercial paper and negotiable certificates of deposit, which primarily relate to proceeds from debt issued to finance a portion of the construction costs for our new terminal facilities at New York's LaGuardia Airport. The fair value of these cash equivalents is based on a market approach using prices generated by market transactions involving identical or comparable assets. Short-Term Investments. The fair values of our short-term investments were based on a market approach using industry standard valuation techniques that incorporated observable inputs such as quoted market prices, interest rates, benchmark curves, credit ratings of the security or other observable information and were recorded in prepaid expenses and other on the Consolidated Balance Sheet ("balance sheet"). Long-Term Investments. Our long-term investments that are measured at fair value primarily consist of equity investments, which are valued based on market prices or other observable transactions and are recorded in other noncurrent assets on our balance sheet. See Note 4 , "Investments," for further information on our equity investments. Hedge Derivatives. A portion of our derivative contracts are negotiated over-the-counter with counterparties without going through a public exchange. Accordingly, our fair value assessments give consideration to the risk of counterparty default (as well as our own credit risk). Such contracts are classified as Level 2 within the fair value hierarchy. The remainder of our hedge contracts are comprised of futures contracts, which are traded on a public exchange. These contracts are classified within Level 1 of the fair value hierarchy. • Fuel Contracts. Our fuel hedge portfolio consists of options, swaps and futures. Option and swap contracts are valued under income approaches using option pricing models and discounted cash flow models, respectively, based on data either readily observable in public markets, derived from public markets or provided by counterparties who regularly trade in public markets. Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices. • Interest Rate Contracts. Our interest rate derivatives are swap contracts, which are valued based on data readily observable in public markets. • Foreign Currency Exchange Contracts. Our foreign currency derivatives consist of forward contracts and are valued based on data readily observable in public markets. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS Long-Term Investments We have developed strategic relationships with a number of airlines and airline services companies through equity investments and other forms of cooperation and support. Our equity investments reinforce our commitment to strategic relationships, which improve our coordination with these companies and enable our customers to seamlessly connect to more destinations while enjoying a consistent, high-quality travel experience. Equity Method Investments We account for our investments in Aeroméxico, Virgin Atlantic and AirCo Aviation Services, LLC ("AirCo"), the parent company of DAL Global Services, LLC ("DGS"), under the equity method of accounting. Our portion of Aeroméxico's and Virgin Atlantic's financial results are recorded in miscellaneous, net in our Condensed Consolidated Statements of Operations and Comprehensive Income ("income statement") under non-operating expense, and our share of AirCo's financial results is recorded in contracted services in our income statement as this entity is integral to the operations of our business. If an eq uity method investment experiences a loss in fair value that is determined to be other than temporary, we will reduce our basis in the investment to fair value and record the loss in unrealized gain/(loss) on investments. • Aeroméxico . Our non-controlling investment in Grupo Aeroméxico, the parent company of Aeroméxico, is accounted for under the equity method. Grupo Aeroméxico's corporate bylaws (as authorized by the Mexican Foreign Investment Commission) limit our voting interest to 49% . However, due to Aeroméxico's share repurchase program, our equity stake in Grupo Aeroméxico has increased to 51% . The investment is recorded at $843 million as of September 30, 2019 . • Virgin Atlantic. We have a non-controlling 49% equity stake in Virgin Atlantic Limited, the parent company of Virgin Atlantic Airways, and similar non-controlling interests in certain affiliated Virgin Atlantic companies. Our investment in these Virgin Atlantic companies is recorded at $393 million as of September 30, 2019 . • AirCo . We have a non-controlling 49% equity stake in AirCo which is recorded at $123 million as of September 30, 2019 . AirCo is a subsidiary of Argenbright Holdings, LLC that provides aviation-related services, ground support equipment maintenance and security. In the September 2019 quarter we announced our plan to enter into a strategic alliance with LATAM Airlines Group S.A. ("LATAM"). Subject to regulatory approval, specifically requirements under the Hart-Scott-Rodino Antitrust Improvement Act, we plan to commence a tender offer for the acquisition of up to 20% of the common shares of LATAM at a price per share of $16 , to be funded with newly issued debt and available cash. In addition, to support the establishment of the strategic alliance, we will invest $350 million , $150 million of which was disbursed in the September 2019 quarter. Fair Value Investments We account for the following investments at fair value with adjustments to fair value recognized in unrealized gain/(loss) on investments within non-operating expense in our income statement. We recorded losses of $35 million and $17 million on our fair value investments during the three and nine months ended September 30, 2019 , respectively. These results were driven by changes in stock prices and foreign currency fluctuations. • Air France-KLM. We own 9% of the outstanding shares of Air France-KLM, which are recorded at $393 million as of September 30, 2019 . • GOL. We own 9% of the outstanding capital stock of GOL Linhas Aéreas Inteligentes, the parent company of VRG Linhas Aéreas (operating as GOL), through ownership of its preferred shares. Our ownership stake is recorded at $256 million as of September 30, 2019 . Additionally, GOL has a $300 million five -year term loan facility with third parties maturing in 2020, which we have guaranteed. Our guaranty is secured by GOL's ownership interest in Smiles, GOL's publicly traded loyalty program. Because GOL remains in compliance with the terms of its loan facility, we have not recorded a liability on our balance sheet as of September 30, 2019 . We plan to sell our GOL ownership stake and wind down our commercial agreements with GOL to facilitate the formation of our strategic alliance with LATAM. • China Eastern. We own a 3% equity interest in China Eastern, which is recorded at $226 million as of September 30, 2019 . • Korean. We have acquired 10% of the outstanding shares of Hanjin-KAL, the largest shareholder of Korean Air, during 2019 . This investment is recorded at $134 million as of September 30, 2019 . • Alclear Holdings, LLC ("CLEAR"). We own a 7% equity interest in CLEAR. • Republic Airways. We own a 17% equity interest in Republic Airways Holdings Inc. |
Derivatives and Risk Management
Derivatives and Risk Management | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management | DERIVATIVES AND RISK MANAGEMENT Changes in fuel prices, interest rates and foreign currency exchange rates impact our results of operations. In an effort to manage our exposure to these risks, we enter into derivative contracts and adjust our derivative portfolio as market conditions change. We recognize derivative contracts at fair value on our balance sheet. Fuel Price Risk Our derivative contracts to hedge the financial risk from changing fuel prices are primarily related to Monroe’s refining margins. Interest Rate Risk Our exposure to market risk from adverse changes in interest rates is primarily associated with our long-term debt obligations. Market risk associated with our fixed and variable rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. Foreign Currency Exchange Risk We are subject to foreign currency exchange rate risk because we have revenue and expense denominated in foreign currencies. To manage exchange rate risk, we execute both our international revenue and expense transactions in the same foreign currency to the extent practicable. From time to time, we may also enter into foreign currency option and forward contracts. Hedge Position as of September 30, 2019 (in millions) Volume Final Maturity Date Prepaid Expenses and Other Other Noncurrent Assets Other Accrued Liabilities Other Noncurrent Liabilities Hedge Derivatives, net Designated as hedges Interest rate contracts (fair value hedges) 1,872 U.S. dollars April 2028 $ 7 $ 75 $ — $ — $ 82 Not designated as hedges Foreign currency exchange contracts 397 Euros December 2020 9 12 — — 21 Fuel hedge contracts 14 gallons - crude oil and refined products July 2020 47 — (25 ) — 22 Total derivative contracts $ 63 $ 87 $ (25 ) $ — $ 125 Hedge Position as of December 31, 2018 (in millions) Volume Final Maturity Date Prepaid Expenses and Other Other Noncurrent Assets Other Accrued Liabilities Other Noncurrent Liabilities Hedge Derivatives, net Designated as hedges Interest rate contracts (fair value hedges) 1,893 U.S. dollars April 2028 $ — $ 8 $ (7 ) $ — $ 1 Foreign currency exchange contracts 6,934 Japanese yen November 2019 1 — — — 1 Not designated as hedges Foreign currency exchange contracts 397 Euros December 2020 13 — — (17 ) (4 ) Fuel hedge contracts 219 gallons - crude oil and refined products December 2019 30 — (15 ) — 15 Total derivative contracts $ 44 $ 8 $ (22 ) $ (17 ) $ 13 Balance Sheet Location of Hedged Item in Fair Value Hedges Carrying Amount of Hedge Instruments Cumulative Amount of Fair Value Hedge Adjustments (in millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Current maturities of long-term debt and finance leases $ (20 ) $ (11 ) $ 7 $ 7 Long-term debt and finance leases $ (1,759 ) $ (1,870 ) $ 75 $ (8 ) Offsetting Assets and Liabilities We have master netting arrangements with our counterparties giving us the right to offset hedge assets and liabilities. However, we have elected not to offset the fair value positions recorded on our balance sheets. The following table shows the net fair value positions by counterparty had we elected to offset. (in millions) Prepaid Expenses and Other Other Noncurrent Assets Other Accrued Liabilities Other Noncurrent Liabilities Hedge Derivatives, net September 30, 2019 Net derivative contracts $ 38 $ 87 $ — $ — $ 125 December 31, 2018 Net derivative contracts $ 35 $ — $ (13 ) $ (9 ) $ 13 Designated Hedge Gains (Losses) Gains (losses) related to our foreign currency exchange contracts designated as hedges are as follows: Gain (Loss) Reclassified from AOCI to Earnings Gain (Loss) Recognized in Other Comprehensive Income (in millions) 2019 2018 2019 2018 Three Months Ended September 30, Foreign currency exchange contracts (1) $ — $ (1 ) $ — $ 4 Nine Months Ended September 30, Foreign currency exchange contracts (1) $ — $ (4 ) $ — $ 4 (1) Earnings on our designated foreign currency exchange contracts are recorded in passenger revenue in the income statement. Not Designated Hedge Gains (Losses) Gains (losses) related to our foreign currency exchange and fuel contracts are as follows: Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income (in millions) 2019 2018 Three Months Ended September 30, Foreign currency exchange contracts Unrealized gain/(loss) on investments, net $ 18 $ (19 ) Fuel hedge contracts Aircraft fuel and related taxes 31 7 Total $ 49 $ (12 ) Nine Months Ended September 30, Foreign currency exchange contracts Unrealized gain/(loss) on investments, net $ 25 $ (12 ) Fuel hedge contracts Aircraft fuel and related taxes (5 ) (85 ) Total $ 20 $ (97 ) Credit Risk To manage credit risk associated with our fuel price, interest rate and foreign currency hedging programs, we evaluate counterparties based on several criteria including their credit ratings. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table summarizes our debt: Maturity Interest Rate(s) (1) Per Annum at September 30, December 31, (in millions) Dates September 30, 2019 2019 2018 Unsecured notes 2020 to 2028 2.60% to 4.38% $ 4,050 $ 4,050 Financing arrangements secured by aircraft: Certificates (2) 2019 to 2027 3.20% to 8.02% 1,999 1,837 Notes (2) 2019 to 2025 2.62% to 6.37% 1,246 1,787 NYTDC Special Facilities Revenue Bonds, Series 2018 (2) 2022 to 2036 4.00% to 5.00% 1,383 1,383 Other financings (2)(3) 2021 to 2030 3.02% to 8.75% 196 251 2018 Unsecured Revolving Credit Facility 2021 to 2023 undrawn variable — — Other revolving credit facilities 2020 to 2021 undrawn variable — — Total secured and unsecured debt 8,874 9,308 Unamortized premium and debt issue cost, net and other 151 60 Total debt 9,025 9,368 Less: current maturities (1,953 ) (1,409 ) Total long-term debt $ 7,072 $ 7,959 (1) Certain aircraft and other financings are comprised of variable rate debt. All variable rates are equal to LIBOR (generally subject to a floor) or another index rate, in each case plus a specified margin. (2) Due in installments. (3) Primarily includes unsecured bonds and debt secured by certain accounts receivable and real estate. 2019 Unsecured Term Loan In February 2019, we entered into a $1 billion term loan issued by two lenders, which was subsequently repaid by the end of the June 2019 quarter. We used the net proceeds of the term loan to accelerate planned 2019 repurchases under our share repurchase program. 2019-1 EETC We completed a $500 million offering of Pass Through Certificates, Series 2019-1 ("2019-1 EETC") utilizing a pass through trust during 2019. This amount is included in Certificates in the table above. The details of the 2019-1 EETC, which is secured by 14 aircraft, are shown in the table below: (in millions) Total Principal Fixed Interest Rate Issuance Date Final Maturity Date 2019-1 Class AA Certificates $ 425 3.204% March 2019 April 2024 2019-1 Class A Certificates 75 3.404% March 2019 April 2024 Total $ 500 Availability Under Revolving Credit Facilities The table below shows availability under revolving credit facilities, all of which were undrawn, as of September 30, 2019 : (in millions) 2018 Unsecured Revolving Credit Facility $ 2,650 Other revolving credit facilities 456 Total availability under revolving credit facilities $ 3,106 Fair Value of Debt Market risk associated with our fixed- and variable-rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. The fair value of debt, shown below, is principally based on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Long-term debt is primarily classified as Level 2 within the fair value hierarchy. (in millions) September 30, December 31, Total debt at par value $ 8,874 $ 9,308 Unamortized premium and debt issue cost, net and other 151 60 Net carrying amount $ 9,025 $ 9,368 Fair value $ 9,300 $ 9,400 Covenants We were in compliance with the covenants in our financings at September 30, 2019 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The following table shows the components of net periodic (benefit) cost: Pension Benefits Other Postretirement and Postemployment Benefits (in millions) 2019 2018 2019 2018 Three Months Ended September 30, Service cost $ — $ — $ 21 $ 21 Interest cost 208 195 34 32 Expected return on plan assets (297 ) (329 ) (12 ) (17 ) Amortization of prior service credit — — (2 ) (7 ) Recognized net actuarial loss 73 66 9 10 Settlements 2 — — — Net periodic (benefit) cost $ (14 ) $ (68 ) $ 50 $ 39 Nine Months Ended September 30, Service cost $ — $ — $ 63 $ 64 Interest cost 625 586 102 95 Expected return on plan assets (890 ) (988 ) (36 ) (50 ) Amortization of prior service credit — — (7 ) (20 ) Recognized net actuarial loss 219 199 29 27 Settlements 3 4 — — Net periodic (benefit) cost $ (43 ) $ (199 ) $ 151 $ 116 Service cost is recorded in salaries and related costs in the income statement while all other components are recorded within miscellaneous under non-operating expense. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Aircraft Purchase Commitments Our future aircraft purchase commitments, which enable our fleet transformation, totaled $13.9 billion at September 30, 2019 : (in millions) Total Three months ending December 31, 2019 $ 390 2020 2,900 2021 3,680 2022 3,330 2023 1,640 Thereafter 1,940 Total $ 13,880 Our future aircraft purchase commitments included the following aircraft at September 30, 2019 : Aircraft Type Purchase Commitments A220-100 20 A220-300 50 A321-200 33 A321-200neo 100 A330-900neo 31 A350-900 16 CRJ-900 8 Total 258 MD-90 Fleet Retirement As part of our ongoing fleet transformation, during the June 2019 quarter we committed to accelerating the retirement of our MD-90 fleet. This fleet will now be retired by the end of 2022, which is approximately two years earlier than previously planned. The decision to permanently retire 35 aircraft resulted in accelerated depreciation of $93 million during the nine months ended September 30, 2019, which is recorded in depreciation and amortization in our income statement. LATAM A350 Commitments We have agreed to acquire four A350 aircraft from LATAM, which are included in the table above. In addition, we plan to assume ten of LATAM's A350 purchase commitments from Airbus, with deliveries through 2025. See Note 4 , "Investments," for further information on our planned strategic alliance with LATAM. Legal Contingencies We are involved in various legal proceedings related to employment practices, environmental issues, antitrust and other matters concerning our business. We record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount of loss can be reasonably estimated. Although the outcome of the legal proceedings in which we are involved cannot be predicted with certainty, we believe that the resolution of current matters will not have a material adverse effect on our Condensed Consolidated Financial Statements. Other Contingencies General Indemnifications We are the lessee under many commercial real estate leases. It is common in these transactions for us, as the lessee, to agree to indemnify the lessor and the lessor's related parties for tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. This type of indemnity would typically make us responsible to indemnified parties for liabilities arising out of the conduct of, among others, contractors, licensees and invitees at, or in connection with, the use or occupancy of the leased premises. This indemnity often extends to related liabilities arising from the negligence of the indemnified parties but usually excludes any liabilities caused by either their sole or gross negligence or their willful misconduct. Our aircraft and other equipment lease and financing agreements typically contain provisions requiring us, as the lessee or obligor, to indemnify the other parties to those agreements, including certain of those parties' related persons, against virtually any liabilities that might arise from the use or operation of the aircraft or other equipment. We believe that our insurance would cover most of our exposure to liabilities and related indemnities associated with the commercial real estate leases and aircraft and other equipment lease and financing agreements described above. While our insurance does not typically cover environmental liabilities, we have insurance policies in place as required by applicable environmental laws. Some of our aircraft and other financing transactions include provisions that require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to specified changes in law or regulations. In some of these financing transactions, we also bear the risk of changes in tax laws that would subject payments to non-U.S. lenders to withholding taxes. We cannot reasonably estimate our potential future payments under the indemnities and related provisions described above because we cannot predict (1) when and under what circumstances these provisions may be triggered and (2) the amount that would be payable if the provisions were triggered because the amounts would be based on facts and circumstances existing at such time. Other We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables show the components of accumulated other comprehensive loss: (in millions) Pension and Other Benefit Liabilities (3) Derivative Contracts and Other Available-for-Sale Investments Total Balance at January 1, 2019 (net of tax effect of $1,492) $ (7,925 ) $ 100 $ — $ (7,825 ) Changes in value (net of tax effect of $2) (12 ) 4 — (8 ) Reclassifications into earnings (net of tax effect of $57) (1) 189 (1 ) — 188 Balance at September 30, 2019 (net of tax effect of $1,437) $ (7,748 ) $ 103 $ — $ (7,645 ) Balance at January 1, 2018 (net of tax effect of $1,400) $ (7,812 ) $ 85 $ 106 $ (7,621 ) Changes in value (net of tax effect of $6) 13 7 — 20 Reclassifications into retained earnings (net of tax effect of $61) (2) — — (106 ) (106 ) Reclassifications into earnings (net of tax effect of $51) (1) 164 8 — 172 Balance at September 30, 2018 (net of tax effect of $1,404) $ (7,635 ) $ 100 $ — $ (7,535 ) (1) Amounts reclassified from AOCI for pension and other benefit liabilities and for derivative contracts designated as foreign currency cash flow hedges are recorded in miscellaneous, net in non-operating expense and in passenger revenue, respectively, in the income statement. (2) The reclassification into retained earnings relates to our investments in GOL, China Eastern and other previously designated available-for-sale investments, and the related conversion to accounting for changes in fair value of these investments from AOCI to the income statement. (3) Includes $ 688 million of deferred income tax expense primarily related to pension and other benefit obligations that will not be recognized in net income until these obligations are fully extinguished. We consider all income sources, including other comprehensive income, in determining the amount of tax benefit allocated to continuing operations. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS Refinery Operations Our refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel, as well as non-jet fuel products. We use several counterparties to exchange the non-jet fuel products produced by the refinery for jet fuel consumed in our airline operations. The gross fair value of the products exchanged under these agreements during the three and nine months ended September 30, 2019 was $1.1 billion and $3.0 billion , respectively, compared to $1.1 billion and $3.1 billion for the three and nine months ended September 30, 2018 , respectively. Segment Reporting Segment results are prepared based on our internal accounting methods described below, with reconciliations to consolidated amounts in accordance with GAAP. Our segments are not designed to measure operating income or loss directly related to the products and services included in each segment on a stand-alone basis. (in millions) Airline Refinery Intersegment Sales/Other Consolidated Three Months Ended September 30, 2019 Operating revenue: $ 12,554 $ 1,505 $ 12,560 Sales to airline segment $ (304 ) (1) Exchanged products (1,143 ) (2) Sales of refined products (52 ) (3) Operating income 2,022 49 — 2,071 Interest expense, net 70 — — 70 Depreciation and amortization 606 25 — 631 Total assets, end of period 61,515 1,704 — 63,219 Capital expenditures 936 10 — 946 Three Months Ended September 30, 2018 Operating revenue: $ 11,845 $ 1,609 $ 11,953 Sales to airline segment $ (328 ) (1) Exchanged products (1,110 ) (2) Sales of refined products (63 ) (3) Operating income 1,633 12 — 1,645 Interest expense (income), net 84 (11 ) — 73 Depreciation and amortization 557 16 — 573 Total assets, end of period 57,965 1,958 — 59,923 Capital expenditures 923 39 — 962 (1) Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. (2) Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis. (3) These sales were at or near cost; accordingly, the margin on these sales is de minimis. (in millions) Airline Refinery Intersegment Sales/Other Consolidated Nine Months Ended September 30, 2019 Operating revenue: $ 35,474 $ 4,289 $ 35,568 Sales to airline segment $ (882 ) (1) Exchanged products (2,953 ) (2) Sales of refined products (360 ) (3) Operating income 5,167 52 — 5,219 Interest expense (income), net 247 (19 ) — 228 Depreciation and amortization 1,886 74 — 1,960 Capital expenditures 3,836 28 — 3,864 Nine Months Ended September 30, 2018 Operating revenue: $ 33,159 $ 4,767 $ 33,696 Sales to airline segment $ (866 ) (1) Exchanged products (3,081 ) (2) Sales of refined products (283 ) (3) Operating income 4,072 101 — 4,173 Interest expense (income), net 267 (23 ) — 244 Depreciation and amortization 1,711 48 — 1,759 Capital expenditures 3,738 67 — 3,805 (1) Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. (2) Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis. (3) These sales were at or near cost; accordingly, the margin on these sales is de minimis. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding restricted shares. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including stock options and restricted stock awards. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. The following table shows the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share data) 2019 2018 2019 2018 Net income $ 1,495 $ 1,322 $ 3,669 $ 2,916 Basic weighted average shares outstanding 646 686 654 695 Dilutive effect of share-based awards 2 2 2 2 Diluted weighted average shares outstanding 648 688 656 697 Basic earnings per share $ 2.32 $ 1.93 $ 5.61 $ 4.20 Diluted earnings per share $ 2.31 $ 1.92 $ 5.59 $ 4.18 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Delta Air Lines, Inc. and our wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K for the year ended December 31, 2018 . Management believes the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair statement of results for the interim periods presented. Due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices and other factors, operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of operating results for the entire year. We reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. |
Recent Accounting Standards | Recent Accounting Standards Comprehensive Income . In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220)." This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income/(loss) ("AOCI") to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard is effective for interim and annual reporting periods beginning after December 15, 2018. We adopted this standard effective January 1, 2019 with the election not to reclassify $1.2 billion of stranded tax effects, primarily related to our pension plans, from AOCI to retained earnings. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Passenger Revenue Passenger revenue is primarily composed of passenger ticket sales, loyalty travel awards and travel-related services performed in conjunction with a passenger’s flight. Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Ticket $ 10,029 $ 9,553 $ 27,986 $ 26,514 Loyalty travel awards 732 678 2,174 1,976 Travel-related services 649 565 1,872 1,617 Total passenger revenue $ 11,410 $ 10,796 $ 32,032 $ 30,107 Other Revenue Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Loyalty program $ 485 $ 369 $ 1,443 $ 1,075 Ancillary businesses and refinery 291 433 990 1,475 Miscellaneous 185 129 536 388 Total other revenue $ 961 $ 931 $ 2,969 $ 2,938 |
Schedule of activity in loyalty liability | The table below presents the activity of the current and noncurrent loyalty liability and includes miles earned through travel and miles sold to participating companies, which are primarily through marketing agreements. (in millions) 2019 2018 Balance at January 1 $ 6,641 $ 6,321 Mileage credits earned 2,352 2,322 Travel mileage credits redeemed (2,175 ) (1,976 ) Non-travel mileage credits redeemed (122 ) (125 ) Balance at September 30 $ 6,696 $ 6,542 |
Schedule of revenue by geographic region | Our passenger and operating revenue by geographic region is summarized in the following tables: Passenger Revenue Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Domestic $ 7,971 $ 7,395 $ 22,755 $ 21,093 Atlantic 2,060 1,996 5,042 4,837 Latin America 683 675 2,298 2,228 Pacific 696 730 1,937 1,949 Total $ 11,410 $ 10,796 $ 32,032 $ 30,107 Operating Revenue Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Domestic $ 8,651 $ 8,125 $ 24,925 $ 23,480 Atlantic 2,336 2,244 5,788 5,494 Latin America 757 741 2,559 2,449 Pacific 816 843 2,296 2,273 Total $ 12,560 $ 11,953 $ 35,568 $ 33,696 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets (liabilities) measured at fair value on a recurring basis | Assets (Liabilities) Measured at Fair Value on a Recurring Basis (in millions) September 30, Level 1 Level 2 Cash equivalents $ 1,489 $ 1,489 $ — Restricted cash equivalents 798 798 — Long-term investments 1,214 1,009 205 Hedge derivatives, net Fuel hedge contracts 22 15 7 Interest rate contracts 82 — 82 Foreign currency exchange contracts 21 — 21 (in millions) December 31, Level 1 Level 2 Cash equivalents $ 1,222 $ 1,222 $ — Restricted cash equivalents 1,183 1,183 — Short-term investments U.S. government and agency securities 50 45 5 Asset- and mortgage-backed securities 36 — 36 Corporate obligations 90 — 90 Other fixed income securities 27 — 27 Long-term investments 1,084 880 204 Hedge derivatives, net Fuel hedge contracts 15 20 (5 ) Interest rate contracts 1 — 1 Foreign currency exchange contracts (3 ) — (3 ) |
Derivatives and Risk Manageme_2
Derivatives and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of hedge positions | Hedge Position as of September 30, 2019 (in millions) Volume Final Maturity Date Prepaid Expenses and Other Other Noncurrent Assets Other Accrued Liabilities Other Noncurrent Liabilities Hedge Derivatives, net Designated as hedges Interest rate contracts (fair value hedges) 1,872 U.S. dollars April 2028 $ 7 $ 75 $ — $ — $ 82 Not designated as hedges Foreign currency exchange contracts 397 Euros December 2020 9 12 — — 21 Fuel hedge contracts 14 gallons - crude oil and refined products July 2020 47 — (25 ) — 22 Total derivative contracts $ 63 $ 87 $ (25 ) $ — $ 125 Hedge Position as of December 31, 2018 (in millions) Volume Final Maturity Date Prepaid Expenses and Other Other Noncurrent Assets Other Accrued Liabilities Other Noncurrent Liabilities Hedge Derivatives, net Designated as hedges Interest rate contracts (fair value hedges) 1,893 U.S. dollars April 2028 $ — $ 8 $ (7 ) $ — $ 1 Foreign currency exchange contracts 6,934 Japanese yen November 2019 1 — — — 1 Not designated as hedges Foreign currency exchange contracts 397 Euros December 2020 13 — — (17 ) (4 ) Fuel hedge contracts 219 gallons - crude oil and refined products December 2019 30 — (15 ) — 15 Total derivative contracts $ 44 $ 8 $ (22 ) $ (17 ) $ 13 |
Schedule of balance sheet location of hedged item in fair value hedges | Balance Sheet Location of Hedged Item in Fair Value Hedges Carrying Amount of Hedge Instruments Cumulative Amount of Fair Value Hedge Adjustments (in millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Current maturities of long-term debt and finance leases $ (20 ) $ (11 ) $ 7 $ 7 Long-term debt and finance leases $ (1,759 ) $ (1,870 ) $ 75 $ (8 ) |
Schedule of offsetting assets | The following table shows the net fair value positions by counterparty had we elected to offset. (in millions) Prepaid Expenses and Other Other Noncurrent Assets Other Accrued Liabilities Other Noncurrent Liabilities Hedge Derivatives, net September 30, 2019 Net derivative contracts $ 38 $ 87 $ — $ — $ 125 December 31, 2018 Net derivative contracts $ 35 $ — $ (13 ) $ (9 ) $ 13 |
Schedule of offsetting liabilities | The following table shows the net fair value positions by counterparty had we elected to offset. (in millions) Prepaid Expenses and Other Other Noncurrent Assets Other Accrued Liabilities Other Noncurrent Liabilities Hedge Derivatives, net September 30, 2019 Net derivative contracts $ 38 $ 87 $ — $ — $ 125 December 31, 2018 Net derivative contracts $ 35 $ — $ (13 ) $ (9 ) $ 13 |
Schedule of derivative gains (losses) | Designated Hedge Gains (Losses) Gains (losses) related to our foreign currency exchange contracts designated as hedges are as follows: Gain (Loss) Reclassified from AOCI to Earnings Gain (Loss) Recognized in Other Comprehensive Income (in millions) 2019 2018 2019 2018 Three Months Ended September 30, Foreign currency exchange contracts (1) $ — $ (1 ) $ — $ 4 Nine Months Ended September 30, Foreign currency exchange contracts (1) $ — $ (4 ) $ — $ 4 (1) Earnings on our designated foreign currency exchange contracts are recorded in passenger revenue in the income statement. Not Designated Hedge Gains (Losses) Gains (losses) related to our foreign currency exchange and fuel contracts are as follows: Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income (in millions) 2019 2018 Three Months Ended September 30, Foreign currency exchange contracts Unrealized gain/(loss) on investments, net $ 18 $ (19 ) Fuel hedge contracts Aircraft fuel and related taxes 31 7 Total $ 49 $ (12 ) Nine Months Ended September 30, Foreign currency exchange contracts Unrealized gain/(loss) on investments, net $ 25 $ (12 ) Fuel hedge contracts Aircraft fuel and related taxes (5 ) (85 ) Total $ 20 $ (97 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes our debt: Maturity Interest Rate(s) (1) Per Annum at September 30, December 31, (in millions) Dates September 30, 2019 2019 2018 Unsecured notes 2020 to 2028 2.60% to 4.38% $ 4,050 $ 4,050 Financing arrangements secured by aircraft: Certificates (2) 2019 to 2027 3.20% to 8.02% 1,999 1,837 Notes (2) 2019 to 2025 2.62% to 6.37% 1,246 1,787 NYTDC Special Facilities Revenue Bonds, Series 2018 (2) 2022 to 2036 4.00% to 5.00% 1,383 1,383 Other financings (2)(3) 2021 to 2030 3.02% to 8.75% 196 251 2018 Unsecured Revolving Credit Facility 2021 to 2023 undrawn variable — — Other revolving credit facilities 2020 to 2021 undrawn variable — — Total secured and unsecured debt 8,874 9,308 Unamortized premium and debt issue cost, net and other 151 60 Total debt 9,025 9,368 Less: current maturities (1,953 ) (1,409 ) Total long-term debt $ 7,072 $ 7,959 (1) Certain aircraft and other financings are comprised of variable rate debt. All variable rates are equal to LIBOR (generally subject to a floor) or another index rate, in each case plus a specified margin. (2) Due in installments. (3) Primarily includes unsecured bonds and debt secured by certain accounts receivable and real estate. |
Schedule of pass through certificates | The details of the 2019-1 EETC, which is secured by 14 aircraft, are shown in the table below: (in millions) Total Principal Fixed Interest Rate Issuance Date Final Maturity Date 2019-1 Class AA Certificates $ 425 3.204% March 2019 April 2024 2019-1 Class A Certificates 75 3.404% March 2019 April 2024 Total $ 500 |
Schedule of line of credit facilities | The table below shows availability under revolving credit facilities, all of which were undrawn, as of September 30, 2019 : (in millions) 2018 Unsecured Revolving Credit Facility $ 2,650 Other revolving credit facilities 456 Total availability under revolving credit facilities $ 3,106 |
Schedule of estimated fair value of debt instruments | The fair value of debt, shown below, is principally based on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Long-term debt is primarily classified as Level 2 within the fair value hierarchy. (in millions) September 30, December 31, Total debt at par value $ 8,874 $ 9,308 Unamortized premium and debt issue cost, net and other 151 60 Net carrying amount $ 9,025 $ 9,368 Fair value $ 9,300 $ 9,400 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of components net periodic (benefit) cost | The following table shows the components of net periodic (benefit) cost: Pension Benefits Other Postretirement and Postemployment Benefits (in millions) 2019 2018 2019 2018 Three Months Ended September 30, Service cost $ — $ — $ 21 $ 21 Interest cost 208 195 34 32 Expected return on plan assets (297 ) (329 ) (12 ) (17 ) Amortization of prior service credit — — (2 ) (7 ) Recognized net actuarial loss 73 66 9 10 Settlements 2 — — — Net periodic (benefit) cost $ (14 ) $ (68 ) $ 50 $ 39 Nine Months Ended September 30, Service cost $ — $ — $ 63 $ 64 Interest cost 625 586 102 95 Expected return on plan assets (890 ) (988 ) (36 ) (50 ) Amortization of prior service credit — — (7 ) (20 ) Recognized net actuarial loss 219 199 29 27 Settlements 3 4 — — Net periodic (benefit) cost $ (43 ) $ (199 ) $ 151 $ 116 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future aircraft purchase commitments | Our future aircraft purchase commitments, which enable our fleet transformation, totaled $13.9 billion at September 30, 2019 : (in millions) Total Three months ending December 31, 2019 $ 390 2020 2,900 2021 3,680 2022 3,330 2023 1,640 Thereafter 1,940 Total $ 13,880 Our future aircraft purchase commitments included the following aircraft at September 30, 2019 : Aircraft Type Purchase Commitments A220-100 20 A220-300 50 A321-200 33 A321-200neo 100 A330-900neo 31 A350-900 16 CRJ-900 8 Total 258 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of components of accumulated other comprehensive loss | The following tables show the components of accumulated other comprehensive loss: (in millions) Pension and Other Benefit Liabilities (3) Derivative Contracts and Other Available-for-Sale Investments Total Balance at January 1, 2019 (net of tax effect of $1,492) $ (7,925 ) $ 100 $ — $ (7,825 ) Changes in value (net of tax effect of $2) (12 ) 4 — (8 ) Reclassifications into earnings (net of tax effect of $57) (1) 189 (1 ) — 188 Balance at September 30, 2019 (net of tax effect of $1,437) $ (7,748 ) $ 103 $ — $ (7,645 ) Balance at January 1, 2018 (net of tax effect of $1,400) $ (7,812 ) $ 85 $ 106 $ (7,621 ) Changes in value (net of tax effect of $6) 13 7 — 20 Reclassifications into retained earnings (net of tax effect of $61) (2) — — (106 ) (106 ) Reclassifications into earnings (net of tax effect of $51) (1) 164 8 — 172 Balance at September 30, 2018 (net of tax effect of $1,404) $ (7,635 ) $ 100 $ — $ (7,535 ) (1) Amounts reclassified from AOCI for pension and other benefit liabilities and for derivative contracts designated as foreign currency cash flow hedges are recorded in miscellaneous, net in non-operating expense and in passenger revenue, respectively, in the income statement. (2) The reclassification into retained earnings relates to our investments in GOL, China Eastern and other previously designated available-for-sale investments, and the related conversion to accounting for changes in fair value of these investments from AOCI to the income statement. (3) Includes $ 688 million of deferred income tax expense primarily related to pension and other benefit obligations that will not be recognized in net income until these obligations are fully extinguished. We consider all income sources, including other comprehensive income, in determining the amount of tax benefit allocated to continuing operations. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Segment results are prepared based on our internal accounting methods described below, with reconciliations to consolidated amounts in accordance with GAAP. Our segments are not designed to measure operating income or loss directly related to the products and services included in each segment on a stand-alone basis. (in millions) Airline Refinery Intersegment Sales/Other Consolidated Three Months Ended September 30, 2019 Operating revenue: $ 12,554 $ 1,505 $ 12,560 Sales to airline segment $ (304 ) (1) Exchanged products (1,143 ) (2) Sales of refined products (52 ) (3) Operating income 2,022 49 — 2,071 Interest expense, net 70 — — 70 Depreciation and amortization 606 25 — 631 Total assets, end of period 61,515 1,704 — 63,219 Capital expenditures 936 10 — 946 Three Months Ended September 30, 2018 Operating revenue: $ 11,845 $ 1,609 $ 11,953 Sales to airline segment $ (328 ) (1) Exchanged products (1,110 ) (2) Sales of refined products (63 ) (3) Operating income 1,633 12 — 1,645 Interest expense (income), net 84 (11 ) — 73 Depreciation and amortization 557 16 — 573 Total assets, end of period 57,965 1,958 — 59,923 Capital expenditures 923 39 — 962 (1) Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. (2) Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis. (3) These sales were at or near cost; accordingly, the margin on these sales is de minimis. (in millions) Airline Refinery Intersegment Sales/Other Consolidated Nine Months Ended September 30, 2019 Operating revenue: $ 35,474 $ 4,289 $ 35,568 Sales to airline segment $ (882 ) (1) Exchanged products (2,953 ) (2) Sales of refined products (360 ) (3) Operating income 5,167 52 — 5,219 Interest expense (income), net 247 (19 ) — 228 Depreciation and amortization 1,886 74 — 1,960 Capital expenditures 3,836 28 — 3,864 Nine Months Ended September 30, 2018 Operating revenue: $ 33,159 $ 4,767 $ 33,696 Sales to airline segment $ (866 ) (1) Exchanged products (3,081 ) (2) Sales of refined products (283 ) (3) Operating income 4,072 101 — 4,173 Interest expense (income), net 267 (23 ) — 244 Depreciation and amortization 1,711 48 — 1,759 Capital expenditures 3,738 67 — 3,805 (1) Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. (2) Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis. (3) These sales were at or near cost; accordingly, the margin on these sales is de minimis. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table shows the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share data) 2019 2018 2019 2018 Net income $ 1,495 $ 1,322 $ 3,669 $ 2,916 Basic weighted average shares outstanding 646 686 654 695 Dilutive effect of share-based awards 2 2 2 2 Diluted weighted average shares outstanding 648 688 656 697 Basic earnings per share $ 2.32 $ 1.93 $ 5.61 $ 4.20 Diluted earnings per share $ 2.31 $ 1.92 $ 5.59 $ 4.18 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Billions | Jan. 01, 2019USD ($) |
ASU No. 2018-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Stranded tax effects in AOCI elected not to reclassify | $ 1.2 |
Revenue Recognition - Passenger
Revenue Recognition - Passenger Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 12,560 | $ 11,953 | $ 35,568 | $ 33,696 |
Passenger | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 11,410 | 10,796 | 32,032 | 30,107 |
Ticket | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 10,029 | 9,553 | 27,986 | 26,514 |
Loyalty travel awards | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 732 | 678 | 2,174 | 1,976 |
Travel-related services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 649 | $ 565 | $ 1,872 | $ 1,617 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Billions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Cash sales of mileage credits | $ 3.1 | $ 2.6 |
Majority of new miles redemption period (in years) | 2 years | |
Air Traffic | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized that was previously deferred | $ 3.7 |
Revenue Recognition - Other Rev
Revenue Recognition - Other Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 12,560 | $ 11,953 | $ 35,568 | $ 33,696 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 961 | 931 | 2,969 | 2,938 |
Loyalty program | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 485 | 369 | 1,443 | 1,075 |
Ancillary businesses and refinery | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 291 | 433 | 990 | 1,475 |
Miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 185 | $ 129 | $ 536 | $ 388 |
Revenue Recognition - Loyalty P
Revenue Recognition - Loyalty Program Liability (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Frequent Flyer Liability Activity [Roll Forward] | ||
Mileage credits earned | $ 2,352 | $ 2,322 |
Travel mileage credits redeemed | (2,175) | (1,976) |
Non-travel mileage credits redeemed | (122) | (125) |
Loyalty program | ||
Frequent Flyer Liability Activity [Roll Forward] | ||
Deferred revenue (current and noncurrent), beginning | 6,641 | 6,321 |
Deferred revenue (current and noncurrent), ending | $ 6,696 | $ 6,542 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 12,560 | $ 11,953 | $ 35,568 | $ 33,696 |
Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 8,651 | 8,125 | 24,925 | 23,480 |
Atlantic | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 2,336 | 2,244 | 5,788 | 5,494 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 757 | 741 | 2,559 | 2,449 |
Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 816 | 843 | 2,296 | 2,273 |
Passenger | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 11,410 | 10,796 | 32,032 | 30,107 |
Passenger | Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 7,971 | 7,395 | 22,755 | 21,093 |
Passenger | Atlantic | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 2,060 | 1,996 | 5,042 | 4,837 |
Passenger | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 683 | 675 | 2,298 | 2,228 |
Passenger | Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 696 | $ 730 | $ 1,937 | $ 1,949 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Net Asset (Liability) | ||
Cash equivalents | $ 1,489 | $ 1,222 |
Restricted cash equivalents | 798 | 1,183 |
Long-term investments | 1,214 | 1,084 |
U.S. government and agency securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 50 | |
Asset- and mortgage-backed securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 36 | |
Corporate obligations | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 90 | |
Other fixed income securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 27 | |
Fuel hedge contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | 22 | 15 |
Interest rate contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | 82 | 1 |
Foreign currency exchange contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | 21 | (3) |
Level 1 | ||
Fair Value, Net Asset (Liability) | ||
Cash equivalents | 1,489 | 1,222 |
Restricted cash equivalents | 798 | 1,183 |
Long-term investments | 1,009 | 880 |
Level 1 | U.S. government and agency securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 45 | |
Level 1 | Asset- and mortgage-backed securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 0 | |
Level 1 | Corporate obligations | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 0 | |
Level 1 | Other fixed income securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 0 | |
Level 1 | Fuel hedge contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | 15 | 20 |
Level 1 | Interest rate contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | 0 | 0 |
Level 1 | Foreign currency exchange contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | 0 | 0 |
Level 2 | ||
Fair Value, Net Asset (Liability) | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents | 0 | 0 |
Long-term investments | 205 | 204 |
Level 2 | U.S. government and agency securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 5 | |
Level 2 | Asset- and mortgage-backed securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 36 | |
Level 2 | Corporate obligations | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 90 | |
Level 2 | Other fixed income securities | ||
Fair Value, Net Asset (Liability) | ||
Short-term investments | 27 | |
Level 2 | Fuel hedge contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | 7 | (5) |
Level 2 | Interest rate contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | 82 | 1 |
Level 2 | Foreign currency exchange contracts | ||
Fair Value, Net Asset (Liability) | ||
Hedge derivatives, net | $ 21 | $ (3) |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Planned investment to support establishment of strategic alliance | $ 350,000,000 | $ 350,000,000 | ||
Payments to support establishment of strategic alliance | 150,000,000 | |||
Unrealized gain/(loss) on investments, net | $ (35,000,000) | $ 50,000,000 | $ (17,000,000) | $ (171,000,000) |
Grupo Aeromexico | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Voting interest limit per bylaws (percent) | 49.00% | 49.00% | ||
Equity method investment, ownership percentage | 51.00% | 51.00% | ||
Equity method investment | $ 843,000,000 | $ 843,000,000 | ||
Virgin Atlantic | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 49.00% | 49.00% | ||
Equity method investment | $ 393,000,000 | $ 393,000,000 | ||
AirCo | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 49.00% | 49.00% | ||
Equity method investment | $ 123,000,000 | $ 123,000,000 | ||
LATAM | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Planned ownership investment in strategic alliance, subject to regulatory approval (percent) | 20.00% | 20.00% | ||
Planned tender offer for shares in strategic alliance (USD per share) | $ 16 | $ 16 | ||
Air France-KLM | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests, ownership percentage | 9.00% | 9.00% | ||
Air France-KLM | Common stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests | $ 393,000,000 | $ 393,000,000 | ||
GOL | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests, ownership percentage | 9.00% | 9.00% | ||
GOL | Preferred stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests | $ 256,000,000 | $ 256,000,000 | ||
China Eastern | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests, ownership percentage | 3.00% | 3.00% | ||
Equity interests | $ 226,000,000 | $ 226,000,000 | ||
Korean | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests, ownership percentage | 10.00% | 10.00% | ||
Korean | Common stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests | $ 134,000,000 | $ 134,000,000 | ||
CLEAR | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests, ownership percentage | 7.00% | 7.00% | ||
Republic Airways | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests, ownership percentage | 17.00% | 17.00% | ||
Financial Guarantee | Term loan facility | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Guarantee borrowings on third party debt | $ 300,000,000 | |||
Guarantee borrowings on third party debt, term (in years) | 5 years |
Derivatives and Risk Manageme_3
Derivatives and Risk Management - Hedge Position (Details) € in Millions, ¥ in Millions, gal in Millions, $ in Millions | Sep. 30, 2019EUR (€)gal | Sep. 30, 2019USD ($)gal | Dec. 31, 2018EUR (€)gal | Dec. 31, 2018JPY (¥)gal | Dec. 31, 2018USD ($)gal |
Derivatives, Fair Value | |||||
Total derivative contracts, net | $ 125 | $ 13 | |||
Prepaid Expenses and Other | |||||
Derivatives, Fair Value | |||||
Total derivative contracts, assets | 63 | 44 | |||
Other Noncurrent Assets | |||||
Derivatives, Fair Value | |||||
Total derivative contracts, assets | 87 | 8 | |||
Other Accrued Liabilities | |||||
Derivatives, Fair Value | |||||
Total derivative contracts, liabilities | (25) | (22) | |||
Other Noncurrent Liabilities | |||||
Derivatives, Fair Value | |||||
Total derivative contracts, liabilities | 0 | (17) | |||
Foreign currency exchange contracts | Not designated as hedges | |||||
Derivatives, Fair Value | |||||
Derivative, notional amount | € | € 397 | € 397 | |||
Foreign currency exchange contracts, net | 21 | (4) | |||
Foreign currency exchange contracts | Not designated as hedges | Prepaid Expenses and Other | |||||
Derivatives, Fair Value | |||||
Foreign currency exchange contracts, assets | 9 | 13 | |||
Foreign currency exchange contracts | Not designated as hedges | Other Noncurrent Assets | |||||
Derivatives, Fair Value | |||||
Foreign currency exchange contracts, assets | 12 | 0 | |||
Foreign currency exchange contracts | Not designated as hedges | Other Accrued Liabilities | |||||
Derivatives, Fair Value | |||||
Foreign currency exchange contracts, liabilities | 0 | 0 | |||
Foreign currency exchange contracts | Not designated as hedges | Other Noncurrent Liabilities | |||||
Derivatives, Fair Value | |||||
Foreign currency exchange contracts, liabilities | $ 0 | $ (17) | |||
Fuel hedge contracts | Not designated as hedges | |||||
Derivatives, Fair Value | |||||
Derivative, nonmonetary notional amount | gal | 14 | 14 | 219 | 219 | 219 |
Fuel hedge contracts, net | $ 22 | $ 15 | |||
Fuel hedge contracts | Not designated as hedges | Prepaid Expenses and Other | |||||
Derivatives, Fair Value | |||||
Fuel hedge contracts, assets | 47 | 30 | |||
Fuel hedge contracts | Not designated as hedges | Other Noncurrent Assets | |||||
Derivatives, Fair Value | |||||
Fuel hedge contracts, assets | 0 | 0 | |||
Fuel hedge contracts | Not designated as hedges | Other Accrued Liabilities | |||||
Derivatives, Fair Value | |||||
Fuel hedge contracts, liabilities | (25) | (15) | |||
Fuel hedge contracts | Not designated as hedges | Other Noncurrent Liabilities | |||||
Derivatives, Fair Value | |||||
Fuel hedge contracts, liabilities | 0 | 0 | |||
Fair value hedges | Interest rate contracts | Designated as hedges | |||||
Derivatives, Fair Value | |||||
Derivative, notional amount | 1,872 | 1,893 | |||
Interest rate contract, net | 82 | 1 | |||
Fair value hedges | Interest rate contracts | Designated as hedges | Prepaid Expenses and Other | |||||
Derivatives, Fair Value | |||||
Interest rate contract, assets | 7 | 0 | |||
Fair value hedges | Interest rate contracts | Designated as hedges | Other Noncurrent Assets | |||||
Derivatives, Fair Value | |||||
Interest rate contract, assets | 75 | 8 | |||
Fair value hedges | Interest rate contracts | Designated as hedges | Other Accrued Liabilities | |||||
Derivatives, Fair Value | |||||
Interest rate contract, liabilities | 0 | (7) | |||
Fair value hedges | Interest rate contracts | Designated as hedges | Other Noncurrent Liabilities | |||||
Derivatives, Fair Value | |||||
Interest rate contract, liabilities | $ 0 | 0 | |||
Cash flow hedges | Foreign currency exchange contracts | Designated as hedges | |||||
Derivatives, Fair Value | |||||
Derivative, notional amount | ¥ | ¥ 6,934 | ||||
Foreign currency exchange contracts, net | 1 | ||||
Cash flow hedges | Foreign currency exchange contracts | Designated as hedges | Prepaid Expenses and Other | |||||
Derivatives, Fair Value | |||||
Foreign currency exchange contracts, assets | 1 | ||||
Cash flow hedges | Foreign currency exchange contracts | Designated as hedges | Other Noncurrent Assets | |||||
Derivatives, Fair Value | |||||
Foreign currency exchange contracts, assets | 0 | ||||
Cash flow hedges | Foreign currency exchange contracts | Designated as hedges | Other Accrued Liabilities | |||||
Derivatives, Fair Value | |||||
Foreign currency exchange contracts, liabilities | 0 | ||||
Cash flow hedges | Foreign currency exchange contracts | Designated as hedges | Other Noncurrent Liabilities | |||||
Derivatives, Fair Value | |||||
Foreign currency exchange contracts, liabilities | $ 0 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management - Balance Sheet Location of Hedged Item (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current maturities of long-term debt and finance leases | ||
Derivative [Line Items] | ||
Carrying amount of hedge instruments | $ (20) | $ (11) |
Cumulative amount of fair value hedge adjustments | 7 | 7 |
Long-term debt and finance leases | ||
Derivative [Line Items] | ||
Carrying amount of hedge instruments | (1,759) | (1,870) |
Cumulative amount of fair value hedge adjustments | $ 75 | $ (8) |
Derivatives and Risk Manageme_5
Derivatives and Risk Management - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative | ||
Total derivative contracts, net | $ 125 | $ 13 |
Prepaid Expenses and Other | ||
Derivative | ||
Net derivative contracts, assets | 38 | 35 |
Other Noncurrent Assets | ||
Derivative | ||
Net derivative contracts, assets | 87 | 0 |
Other Accrued Liabilities | ||
Derivative | ||
Net derivative contracts, liabilities | 0 | (13) |
Other Noncurrent Liabilities | ||
Derivative | ||
Net derivative contracts, liabilities | $ 0 | $ (9) |
Derivatives and Risk Manageme_6
Derivatives and Risk Management - Hedge Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Designated as hedges | Foreign currency exchange contracts | Passenger | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI to Earnings | $ 0 | $ (1) | $ 0 | $ (4) |
Designated as hedges | Foreign currency exchange contracts | Other comprehensive income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized | 0 | 4 | 0 | 4 |
Not designated as hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized | 49 | (12) | 20 | (97) |
Not designated as hedges | Foreign currency exchange contracts | Unrealized gain/(loss) on investments, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized | 18 | (19) | 25 | (12) |
Not designated as hedges | Fuel hedge contracts | Aircraft fuel and related taxes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized | $ 31 | $ 7 | $ (5) | $ (85) |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Debt, gross | $ 8,874 | $ 9,308 |
Unamortized premium and debt issue cost, net and other | 151 | 60 |
Total debt | 9,025 | 9,368 |
Less: current maturities | (1,953) | (1,409) |
Total long-term debt | $ 7,072 | 7,959 |
Unsecured notes | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Maturity dates range, start | Jan. 1, 2020 | |
Maturity dates range, end | Dec. 31, 2028 | |
Debt, gross | $ 4,050 | 4,050 |
Unsecured notes | Unsecured Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 2.60% | |
Unsecured notes | Unsecured Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 4.38% | |
Certificates | Secured Debt | ||
Debt Instrument [Line Items] | ||
Maturity dates range, start | Jan. 1, 2019 | |
Maturity dates range, end | Dec. 31, 2027 | |
Debt, gross | $ 1,999 | 1,837 |
Certificates | Secured Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 3.20% | |
Certificates | Secured Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 8.02% | |
Notes | Secured Debt | ||
Debt Instrument [Line Items] | ||
Maturity dates range, start | Jan. 1, 2019 | |
Maturity dates range, end | Dec. 31, 2025 | |
Debt, gross | $ 1,246 | 1,787 |
Notes | Secured Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 2.62% | |
Notes | Secured Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 6.37% | |
NYTDC Special Facilities Revenue Bonds, Series 2018 | Bonds | ||
Debt Instrument [Line Items] | ||
Maturity dates range, start | Jan. 1, 2022 | |
Maturity dates range, end | Dec. 31, 2036 | |
Debt, gross | $ 1,383 | 1,383 |
NYTDC Special Facilities Revenue Bonds, Series 2018 | Bonds | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 4.00% | |
NYTDC Special Facilities Revenue Bonds, Series 2018 | Bonds | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 5.00% | |
Other financings | Secured and Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Maturity dates range, start | Jan. 1, 2021 | |
Maturity dates range, end | Dec. 31, 2030 | |
Debt, gross | $ 196 | 251 |
Other financings | Secured and Unsecured Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 3.02% | |
Other financings | Secured and Unsecured Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate per annum (percent) | 8.75% | |
2018 Unsecured Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maturity dates range, start | Jan. 1, 2021 | |
Maturity dates range, end | Dec. 31, 2023 | |
Debt, gross | $ 0 | 0 |
Other revolving credit facilities | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maturity dates range, start | Jan. 1, 2020 | |
Maturity dates range, end | Dec. 31, 2021 | |
Debt, gross | $ 0 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) - 2019 Unsecured Term Loan - Term Loan | 1 Months Ended | 5 Months Ended |
Feb. 28, 2019USD ($)lender | Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,000,000,000 | |
Number of lenders | lender | 2 | |
Repayment of debt | $ 1,000,000,000 |
Debt - 2019-1 EETC (Details)
Debt - 2019-1 EETC (Details) - Secured Debt | 9 Months Ended |
Sep. 30, 2019USD ($)aircraft | |
Pass Through Certificates Series 2019-1 | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 500,000,000 |
Number of aircraft to secure debt | aircraft | 14 |
2019-1 Class AA Certificates | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 425,000,000 |
Fixed interest rate (percent) | 3.204% |
Final maturity date | Apr. 30, 2024 |
2019-1 Class A Certificates | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 75,000,000 |
Fixed interest rate (percent) | 3.404% |
Final maturity date | Apr. 30, 2024 |
Debt - Availability Under Revol
Debt - Availability Under Revolving Credit Facilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | $ 3,106 |
2018 Unsecured Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 2,650 |
Other revolving credit facilities | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | $ 456 |
Debt - Fair Value of Debt (Deta
Debt - Fair Value of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt | ||
Total debt at par value | $ 8,874 | $ 9,308 |
Unamortized premium and debt issue cost, net and other | 151 | 60 |
Total debt | 9,025 | 9,368 |
Fair value | $ 9,300 | $ 9,400 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net (Benefit) Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 208 | 195 | 625 | 586 |
Expected return on plan assets | (297) | (329) | (890) | (988) |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 73 | 66 | 219 | 199 |
Settlements | 2 | 0 | 3 | 4 |
Net periodic (benefit) cost | (14) | (68) | (43) | (199) |
Other Postretirement and Postemployment Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 21 | 21 | 63 | 64 |
Interest cost | 34 | 32 | 102 | 95 |
Expected return on plan assets | (12) | (17) | (36) | (50) |
Amortization of prior service credit | (2) | (7) | (7) | (20) |
Recognized net actuarial loss | 9 | 10 | 29 | 27 |
Settlements | 0 | 0 | 0 | 0 |
Net periodic (benefit) cost | $ 50 | $ 39 | $ 151 | $ 116 |
Commitments and Contingencies -
Commitments and Contingencies - Aircraft Purchase Commitments By Period (Details) - Future aircraft purchase commitments $ in Millions | Sep. 30, 2019USD ($) |
Future aircraft purchase commitments: | |
Three months ending December 31, 2019 | $ 390 |
2020 | 2,900 |
2021 | 3,680 |
2022 | 3,330 |
2023 | 1,640 |
Thereafter | 1,940 |
Total | $ 13,880 |
Commitments and Contingencies_2
Commitments and Contingencies - Aircraft Purchase Commitments By Aircraft (Details) - Future aircraft purchase commitments | Sep. 30, 2019aircraft |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 258 |
A220-100 | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 20 |
A220-300 | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 50 |
A321-200 | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 33 |
A321-200neo | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 100 |
A330-900neo | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 31 |
A350-900 | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 16 |
CRJ-900 | |
Future Purchase Commitments | |
Aircraft purchase commitments, minimum quantity required | 8 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($)aircraft | Sep. 30, 2019USD ($)aircraft | |
Future aircraft purchase commitments | ||
Commitments and Contingencies [Line Items] | ||
Future aircraft purchase commitments | $ | $ 13,880 | $ 13,880 |
MD-90 | ||
Commitments and Contingencies [Line Items] | ||
Time ahead of plan for fleet retirement (in years) | 2 years | |
Number of aircraft permanently retired | 35 | |
MD-90 Fleet Retirement | ||
Commitments and Contingencies [Line Items] | ||
Accelerated depreciation related to permanent fleet retirement | $ | $ 93 | |
LATAM | A350-900 | Future aircraft purchase commitments | ||
Commitments and Contingencies [Line Items] | ||
Number of aircraft agreed to acquire | 4 | 4 |
Number of aircraft commitments planned to be assumed | 10 | 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of AOCI Components (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Components of accumulated other comprehensive loss | ||
Beginning balance | $ 13,687 | $ 12,530 |
Ending balance | 15,068 | 13,491 |
AOCI beginning balance, tax effect | (1,492) | (1,400) |
Changes in value, tax effect | (2) | 6 |
Reclassifications into retained earnings, tax effect | (61) | |
Reclassifications into earnings, tax effect | 57 | 51 |
AOCI ending balance, tax effect | (1,437) | (1,404) |
Accumulated Other Comprehensive Income | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | (7,825) | (7,621) |
Changes in value (net of tax effect) | (8) | 20 |
Reclassifications into retained earnings (net of tax effect) | (106) | |
Reclassifications into earnings (net of tax effect) | 188 | 172 |
Ending balance | (7,645) | (7,535) |
Pension and Other Benefit Liabilities | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | (7,925) | (7,812) |
Changes in value (net of tax effect) | (12) | 13 |
Reclassifications into retained earnings (net of tax effect) | 0 | |
Reclassifications into earnings (net of tax effect) | 189 | 164 |
Ending balance | (7,748) | (7,635) |
Deferred income taxes related to pension obligation | 688 | 688 |
Derivative Contracts and Other | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | 100 | |
Changes in value (net of tax effect) | 4 | |
Reclassifications into earnings (net of tax effect) | (1) | |
Ending balance | 103 | |
Derivative Contracts and Other | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | 85 | |
Changes in value (net of tax effect) | 7 | |
Reclassifications into retained earnings (net of tax effect) | 0 | |
Reclassifications into earnings (net of tax effect) | 8 | |
Ending balance | 100 | |
Available-for-Sale Investments | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | 0 | 106 |
Changes in value (net of tax effect) | 0 | 0 |
Reclassifications into retained earnings (net of tax effect) | (106) | |
Reclassifications into earnings (net of tax effect) | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Segments - Narrative (Details)
Segments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information, Profit (Loss) | ||||
Operating revenue | $ 12,560 | $ 11,953 | $ 35,568 | $ 33,696 |
Intersegment Sales/Other | Exchanged products | ||||
Segment Reporting Information, Profit (Loss) | ||||
Operating revenue | $ (1,143) | $ (1,110) | $ (2,953) | $ (3,081) |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information, Profit (Loss) | |||||
Operating revenue | $ 12,560 | $ 11,953 | $ 35,568 | $ 33,696 | |
Operating income | 2,071 | 1,645 | 5,219 | 4,173 | |
Interest expense (income), net | 70 | 73 | 228 | 244 | |
Depreciation and amortization | 631 | 573 | 1,960 | 1,759 | |
Total assets, end of period | 63,219 | 59,923 | 63,219 | 59,923 | $ 60,266 |
Capital expenditures | 946 | 962 | 3,864 | 3,805 | |
Operating Segments | Airline | |||||
Segment Reporting Information, Profit (Loss) | |||||
Operating revenue | 12,554 | 11,845 | 35,474 | 33,159 | |
Operating income | 2,022 | 1,633 | 5,167 | 4,072 | |
Interest expense (income), net | 70 | 84 | 247 | 267 | |
Depreciation and amortization | 606 | 557 | 1,886 | 1,711 | |
Total assets, end of period | 61,515 | 57,965 | 61,515 | 57,965 | |
Capital expenditures | 936 | 923 | 3,836 | 3,738 | |
Operating Segments | Refinery | |||||
Segment Reporting Information, Profit (Loss) | |||||
Operating revenue | 1,505 | 1,609 | 4,289 | 4,767 | |
Operating income | 49 | 12 | 52 | 101 | |
Interest expense (income), net | 0 | (11) | (19) | (23) | |
Depreciation and amortization | 25 | 16 | 74 | 48 | |
Total assets, end of period | 1,704 | 1,958 | 1,704 | 1,958 | |
Capital expenditures | 10 | 39 | 28 | 67 | |
Intersegment Sales/Other | |||||
Segment Reporting Information, Profit (Loss) | |||||
Operating income | 0 | 0 | 0 | 0 | |
Interest expense (income), net | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Total assets, end of period | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Intersegment Sales/Other | Sales to airline segment | |||||
Segment Reporting Information, Profit (Loss) | |||||
Operating revenue | (304) | (328) | (882) | (866) | |
Intersegment Sales/Other | Exchanged products | |||||
Segment Reporting Information, Profit (Loss) | |||||
Operating revenue | (1,143) | (1,110) | (2,953) | (3,081) | |
Intersegment Sales/Other | Sales of refined products | |||||
Segment Reporting Information, Profit (Loss) | |||||
Operating revenue | $ (52) | $ (63) | $ (360) | $ (283) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation for Earnings Per Share Types (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 1,495 | $ 1,443 | $ 730 | $ 1,322 | $ 1,036 | $ 557 | $ 3,669 | $ 2,916 |
Basic weighted average shares outstanding (shares) | 646 | 686 | 654 | 695 | ||||
Dilutive effect of share-based awards (shares) | 2 | 2 | 2 | 2 | ||||
Diluted weighted average shares outstanding (shares) | 648 | 688 | 656 | 697 | ||||
Basic earnings per share (USD per share) | $ 2.32 | $ 1.93 | $ 5.61 | $ 4.20 | ||||
Diluted earnings per share (USD per share) | $ 2.31 | $ 1.92 | $ 5.59 | $ 4.18 |
Uncategorized Items - dal930201
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 46,000,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 54,000,000 |