Analysis of Debt
Total Debt (Carrying Amount)
Delta Air Lines Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Total debt and finance leases exhibited a trajectory of moderate growth from 2017 through 2019, followed by a substantial increase in 2020 and a slight contraction in 2021. The carrying amount of total obligations rose from 8,834 million US dollars in 2017 to 26,920 million US dollars by the end of 2021.
- Aggregate Debt Trends
- A period of steady escalation is observed between 2017 and 2019, with total debt increasing from 8,834 million US dollars to 11,160 million US dollars. This was followed by a sharp spike in 2020, where total debt reached 29,157 million US dollars, representing an increase of approximately 161% over the previous year. A moderate decrease occurred in 2021, bringing the total to 26,920 million US dollars.
- Analysis of Non-Current Obligations
- The vast majority of the debt increase is attributed to long-term liabilities. Debt and finance leases excluding current maturities grew from 6,592 million US dollars in 2017 to 8,873 million US dollars in 2019, before surging to 27,425 million US dollars in 2020. This indicates that the expansion of the balance sheet was driven primarily by long-term financing rather than short-term borrowing.
- Current Maturity Stability
- Current maturities of debt and finance leases remained relatively stable throughout the analyzed period. These obligations fluctuated between a low of 1,518 million US dollars in 2018 and a high of 2,287 million US dollars in 2019. Unlike the long-term debt, current maturities did not experience a proportional spike in 2020, remaining at 1,732 million US dollars.
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Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Debt | 26,900) |
| Finance leases | 1,836) |
| Total debt and finance leases (fair value) | 28,736) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.07 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance leases: 5.12%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 7.38% | 4,354) | 321) | |
| 1.00% | 3,496) | 35) | |
| 4.75% | 6,000) | 285) | |
| 4.75% | 2,820) | 134) | |
| 7.00% | 2,589) | 181) | |
| 8.00% | 1,932) | 155) | |
| 5.75% | 1,139) | 65) | |
| 5.00% | 1,511) | 76) | |
| 5.00% | 1,383) | 69) | |
| 8.00% | 68) | 5) | |
| 3.36% | 1,836) | 62) | |
| Total | 27,128) | 1,388) | |
| 5.12% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,388 ÷ 27,128 = 5.12%