Common-Size Income Statement
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Delta Air Lines Inc., common-size consolidated income statement
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).
- Passenger revenue
- Represents the largest portion of operating revenue, increasing from 84.42% in 2017 to a peak of nearly 90% by 2019, followed by a sharp decline to approximately 75% in 2020 and 2021, reflecting a significant impact likely due to external disruptions.
- Cargo revenue
- Maintained a relatively low and stable share around 1.6% to 1.95% through 2019, with a notable increase to around 3.5% in 2020 and 2021, suggesting a strategic shift or increased demand in cargo operations during that period.
- Other revenue
- Experienced a decline from approximately 13.8% in 2017 to below 9% by 2019, then sharply increased over 20% in 2020 and 2021, indicating diversification or growth in alternative revenue sources during challenging times for passenger services.
- Operating costs
- Aircraft fuel and related taxes consistently accounted for roughly 14% to 20% of operating revenue, peaking in 2018 and remaining relatively stable thereafter. Contracted services and landing fees showed marked increases as a percentage of operating revenue in 2020, more than doubling compared to prior years, then decreased somewhat in 2021 but remained elevated relative to pre-2020 levels. Regional carriers' expenses fluctuated significantly, with a decrease in 2019, a steep rise in 2020 to 14.5%, and a sharp reduction in 2021, reflecting operational adjustments. Other operational cost components such as maintenance, passenger service, and aircraft rent generally exhibited increases in 2020, followed by partial normalization in 2021.
- Cost of operating revenue
- Increased substantially in 2020 to over 62% of operating revenue from a baseline around 42% previously, before dropping to approximately 48% in 2021, indicating elevated operational expenses during the disrupted period and partial recovery subsequently.
- Gross profit
- Declined markedly in 2020 to around 37.5% from a stable range near 57%, recovering to nearly 52% in 2021 but remaining below pre-pandemic levels, demonstrating the financial impact on profitability during the crisis and ongoing pressure.
- Salaries and related costs
- Rose dramatically in 2020 to over 51% of operating revenue, more than doubling from the prior rate of approximately 24%, then improved in 2021 to 32.5%, indicating workforce cost pressures possibly linked to restructuring and operational disruptions.
- Ancillary businesses and refinery
- Showed negative contributions starting 2018, intensifying in 2020 and 2021 to double-digit losses relative to operating revenue, signaling challenges or investments in these segments during the period.
- Depreciation and amortization
- More than doubled as a percentage of operating revenue in 2020 compared to previous years, indicating higher asset-related charges or impairments, before reverting closer to earlier levels in 2021.
- Restructuring charges
- Absent prior to 2020, a significant charge of over 48% of operating revenue emerged in 2020, effectively eliminated by 2021, reflecting major restructuring activities during the crisis year.
- Government grant recognition
- Appeared only in 2020 and 2021, accounting for over 23% and 15% of operating revenue respectively, highlighting substantial support that likely mitigated financial distress during the pandemic.
- Operating income (loss)
- Experienced a steep drop into substantial loss in 2020, approximately negative 73% of operating revenue compared to positive margins near 15% in prior years. A moderate recovery to slightly above 6% was recorded in 2021.
- Interest expense and impairments
- Interest expense increased significantly during 2020 and 2021, while impairment losses peaked sharply in 2020 at over 14% of operating revenue, before declining markedly in 2021, reflecting financial strain and asset write-downs in the crisis year.
- Non-operating expenses
- Substantially escalated in 2020 to over 18% of operating revenue, retreating to under 5% in 2021, demonstrating high non-operational costs or losses during the pandemic period.
- Income before taxes and net income
- Both metrics followed a similar trajectory: consistent positive income through 2019, severe losses in 2020, and marginal positive results in 2021. The net income margin shrank from double digits pre-2020 to near zero (under 1%) in 2021, signaling ongoing recovery challenges.
- Income tax provisions
- Varied over the years, with a notable tax benefit in 2020 contributing positively to the bottom line during losses, then returning to a small tax expense in 2021.