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Delta Air Lines Inc. (NYSE:DAL)

This company has been moved to the archive! The financial data has not been updated since July 13, 2022.

Common-Size Income Statement

Delta Air Lines Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Passenger 75.32 75.36 89.94 89.46 84.42
Cargo 3.45 3.56 1.60 1.95 1.77
Other 21.23 21.08 8.46 8.59 13.81
Operating revenue 100.00% 100.00% 100.00% 100.00% 100.00%
Aircraft fuel and related taxes -18.84 -18.58 -18.12 -20.30 -13.90
Contracted services -8.09 -10.40 -5.62 -4.89 -5.30
Landing fees and other rents -6.75 -8.88 -3.75 -3.74 -3.70
Regional carriers expense -5.81 -14.50 -7.62 -7.74 -10.92
Aircraft maintenance materials and outside repairs -4.69 -4.81 -3.72 -3.54 -4.83
Passenger service -2.53 -3.06 -2.66 -2.65 -2.59
Aircraft rent -1.44 -2.33 -0.90 -0.89 -0.85
Cost of operating revenue -48.15% -62.56% -42.40% -43.75% -42.09%
Gross profit 51.85% 37.44% 57.60% 56.25% 57.91%
Salaries and related costs -32.54 -51.21 -23.88 -24.18 -25.30
Ancillary businesses and refinery -13.23 -10.44 -2.65 -3.81 0.00
Depreciation and amortization -6.68 -13.52 -5.49 -5.24 -5.42
Passenger commissions and other selling expenses -3.19 -3.40 -4.24 -4.37 -4.33
Restructuring charges 0.06 -48.08 0.00 0.00 0.00
Profit sharing -0.36 0.00 -3.50 -2.93 -2.58
Government grant recognition 15.09 23.08 0.00 0.00 0.00
Other -4.70 -6.80 -3.77 -3.88 -5.45
Operating income (loss) 6.31% -72.94% 14.08% 11.85% 14.82%
Interest expense, net -4.28 -5.43 -0.64 -0.70 -0.96
Impairments and equity method losses -1.13 -14.23 -0.13 -0.14 0.00
Gain (loss) on investments, net 0.19 -0.61 0.25 0.09 0.00
Loss on extinguishment of debt -1.07 -0.05 0.00 0.00 0.00
Pension and related benefit (expense) 1.51 1.28 -0.14 0.00 0.00
Miscellaneous, net -0.20 0.80 -0.24 0.50 -0.04
Non-operating expense, net -4.98% -18.24% -0.89% -0.25% -1.00%
Income (loss) before income taxes 1.33% -91.18% 13.19% 11.59% 13.82%
Income tax (provision) benefit -0.39 18.73 -3.04 -2.74 -5.15
Net income (loss) 0.94% -72.45% 10.14% 8.86% 8.67%

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).

The financial performance from 2017 to 2021 exhibits a pattern of relative stability followed by a severe contraction in 2020 and a partial recovery in 2021.

Revenue Composition Trends
Passenger revenue, the primary income driver, remained dominant between 84.42% and 89.94% of total operating revenue from 2017 to 2019, before declining to approximately 75% in 2020 and 2021. Cargo revenue experienced a modest increase, rising from 1.77% in 2017 to 3.45% by 2021. Other revenue streams saw a substantial expansion, increasing from 8.46% in 2019 to 21.23% in 2021, suggesting a shift in the revenue mix during the period of operational volatility.
Operating Cost Analysis
The cost of operating revenue remained relatively stable between 42.09% and 43.75% from 2017 to 2019, but spiked to 62.56% in 2020. This increase was driven by higher relative costs for contracted services and landing fees. Aircraft fuel and related taxes remained a significant expense, peaking at 20.30% of revenue in 2018 and stabilizing around 18.84% by 2021. Gross profit margins, which hovered around 57% in the pre-2020 period, dropped to 37.44% in 2020 before recovering to 51.85% in 2021.
Operating Income and Extraordinary Items
Operating margins were consistent between 11.85% and 14.82% from 2017 to 2019. A severe contraction occurred in 2020, with operating income falling to -72.94%. This deficit was primarily caused by salaries and related costs surging to 51.21% of revenue and a substantial restructuring charge of 48.08%. These losses were partially mitigated by government grant recognition, which contributed 23.08% of operating revenue in 2020 and 15.09% in 2021. By 2021, operating income returned to a positive margin of 6.31%.
Net Profitability and Non-Operating Impact
Net income margins were stable at approximately 8.67% to 10.14% from 2017 to 2019. In 2020, net income plummeted to -72.45% of revenue, influenced by non-operating expenses and impairments that reached 18.24% of revenue. While profitability was restored in 2021, the net income margin remained narrow at 0.94%, indicating that while the core operation recovered, the full return to pre-crisis profitability levels had not yet been achieved.

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