Name: Delta Air Lines Inc. (NYSE:DAL) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Delta Air Lines Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	280)	(12,385)	4,767)	3,935)	3,577)
Restructuring charges	5)	4,111)	—)	—)	—)
Depreciation and amortization	1,998)	2,312)	2,581)	2,329)	2,235)
Deferred income taxes	115)	(3,110)	1,473)	1,364)	2,071)
Pension, postretirement and postemployment payments (greater) less than expense	(2,038)	898)	(922)	(790)	(3,302)
Impairments and equity method losses	337)	2,432)	62)	60)	—)
Receivables	(981)	1,168)	(775)	108)	(328)
Fuel inventory	(318)	354)	(139)	324)	(397)
Noncurrent assets	(76)	210)	111)	(221)	—)
Air traffic liability	1,814)	(572)	454)	297)	262)
Loyalty program deferred revenue	376)	455)	87)	319)	192)
Profit sharing	108)	(1,650)	354)	233)	(51)
Other payables, deferred revenue and accrued liabilities	1,986)	240)	144)	(418)	992)
Noncurrent liabilities	(399)	1,185)	(16)	47)	—)
Changes in certain assets and liabilities	2,510)	1,390)	220)	689)	670)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities	2,927)	8,033)	3,414)	3,652)	1,674)
Other, net	57)	559)	244)	(573)	(103)
Net cash provided by (used in) operating activities	3,264)	(3,793)	8,425)	7,014)	5,148)
Flight equipment, including advance payments	(1,596)	(896)	(3,344)	(3,704)	(2,704)
Ground property and equipment, including technology	(1,651)	(1,003)	(1,592)	(1,464)	(1,187)
Property and equipment additions	(3,247)	(1,899)	(4,936)	(5,168)	(3,891)
Proceeds from sale-leaseback transactions	—)	465)	—)	—)	—)
Purchase of equity investments	—)	(2,099)	(170)	—)	(1,245)
Sale of equity investments	—)	—)	279)	28)	—)
Purchase of short-term investments	(12,655)	(13,400)	—)	(145)	(925)
Redemption of short-term investments	15,036)	7,608)	206)	766)	584)
Other, net	(32)	87)	58)	126)	111)
Net cash used in investing activities	(898)	(9,238)	(4,563)	(4,393)	(5,366)
Proceeds from short-term obligations	—)	3,261)	1,750)	—)	—)
Proceeds from long-term obligations	1,902)	22,790)	2,057)	3,745)	2,454)
Proceeds from sale-leaseback transactions	—)	2,306)	—)	—)	—)
Payments on debt and finance lease obligations	(5,834)	(8,559)	(3,320)	(3,052)	(1,258)
Repurchase of common stock	—)	(344)	(2,027)	(1,575)	(1,677)
Cash dividends	—)	(260)	(980)	(909)	(731)
Fuel card obligation	—)	364)	(339)	7)	636)
Other, net	80)	(202)	(21)	58)	(154)
Net cash provided by (used in) financing activities	(3,852)	19,356)	(2,880)	(1,726)	(730)
Net increase (decrease) in cash, cash equivalents and restricted cash	(1,486)	6,325)	982)	895)	(948)
Cash, cash equivalents and restricted cash at beginning of period	10,055)	3,730)	2,748)	1,853)	2,762)
Cash, cash equivalents and restricted cash at end of period	8,569)	10,055)	3,730)	2,748)	1,814)

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 trajectory from 2017 to 2021 is characterized by a period of stable growth followed by a severe liquidity crisis in 2020 and a subsequent recovery phase in 2021. The operating cash flow demonstrates a significant volatility, shifting from a peak of 8.4 billion US$ in 2019 to a deficit of 3.8 billion US$ in 2020, before returning to a positive position of 3.3 billion US$ in 2021.

Operating Cash Flow Dynamics: Net income experienced a dramatic reversal in 2020, recording a loss of 12.4 billion US$, which was partially offset by non-cash adjustments including 4.1 billion US$ in restructuring charges and 2.4 billion US$ in impairments. By 2021, operating cash flow was bolstered by a substantial increase in air traffic liabilities (1.8 billion US$) and other payables (2.0 billion US$), indicating a significant build-up of unearned revenue as operations resumed.
Investment and Capital Expenditure Trends: Capital expenditures for flight equipment and ground property remained consistent between 2017 and 2019, typically ranging from 3.9 billion US$ to 5.2 billion US$ annually. A contraction in spending occurred in 2020, with total property and equipment additions dropping to 1.9 billion US$, before rebounding to 3.2 billion US$ in 2021. Additionally, a high volume of short-term investment activity is observed in 2020 and 2021, with purchases exceeding 12 billion US$ in both years, largely offset by redemptions to manage immediate liquidity needs.
Financing and Liquidity Strategy: To counteract the operational losses of 2020, a massive financing effort was implemented, evidenced by 22.8 billion US$ in proceeds from long-term obligations. This influx of capital allowed the company to maintain a liquidity cushion, increasing the cash position to 10.1 billion US$ by the end of 2020. This strategy involved a shift away from shareholder returns; common stock repurchases and cash dividends, which totaled billions between 2017 and 2019, were drastically reduced in 2020 and entirely suspended by 2021.
Debt Obligations and Repayments: Payments on debt and finance lease obligations saw a sharp increase during the crisis period, reaching 8.6 billion US$ in 2020 and 5.8 billion US$ in 2021, compared to an average of approximately 2.5 billion US$ in the preceding three years. This suggests a period of intense balance sheet restructuring and debt servicing following the large-scale borrowing events of 2020.

Overall, the data reveals a strategic pivot from a growth and shareholder-distribution model to a survival and liquidity-preservation model during the 2020 downturn. The recovery in 2021 is marked by a return to positive operating cash flow and a resumption of capital investment, funded by the liquidity reserves established through aggressive debt financing in the prior year.

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