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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 001-5424
dal-20210630_g1.jpg
DELTA AIR LINES, INC.
(Exact name of registrant as specified in its charter)
Delaware58-0218548
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
Post Office Box 20706
Atlanta, Georgia
30320-6001
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (404) 715-2600

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.0001 per shareDALNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer Non-accelerated filer 
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes No
Number of shares outstanding by each class of common stock, as of June 30, 2021:
Common Stock, $0.0001 par value - 639,914,878 shares outstanding
This document is also available through our website at http://ir.delta.com/.




Table of Contents
Page



Forward Looking Statements
Unless otherwise indicated or the context otherwise requires, the terms "Delta," "we," "us" and "our" refer to Delta Air Lines, Inc. and its subsidiaries.

FORWARD-LOOKING STATEMENTS

Statements in this Form 10-Q (or otherwise made by us or on our behalf) that are not historical facts, including statements about our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. Known material risk factors applicable to Delta are described in "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 ("Form 10-K"), other than risks that could apply to any issuer or offering. All forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report except as required by law.

Delta Air Lines, Inc. June 2021 Form 10-Q                                 1


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of
Delta Air Lines, Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of Delta Air Lines, Inc. (the Company) as of June 30, 2021, the related condensed consolidated statements of operations and comprehensive income/(loss) and consolidated statements of stockholders' equity for the three-month and six-month periods ended June 30, 2021 and 2020, the condensed consolidated statements of cash flows for the six-month periods ended June 30, 2021 and 2020 and the related notes (collectively referred to as the "condensed consolidated interim financial statements"). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2020, the related consolidated statements of operations, comprehensive loss, cash flows, and stockholders' equity for the year then ended, and the related notes (not presented herein); and in our report dated February 12, 2021, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2020, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.


/s/ Ernst & Young LLP
Atlanta, Georgia
July 14, 2021

Delta Air Lines, Inc. June 2021 Form 10-Q                                 2

Financial Statements

DELTA AIR LINES, INC.
Consolidated Balance Sheets
(Unaudited)
(in millions, except share data)June 30,
2021
December 31,
2020
ASSETS
Current Assets:
Cash and cash equivalents$10,357 $8,307 
Short-term investments4,873 5,789 
Accounts receivable, net of an allowance for uncollectible accounts of $80 and $89
2,258 1,396 
Fuel inventory641 377 
Expendable parts and supplies inventories, net of an allowance for obsolescence of $178 and $188
364 355 
Prepaid expenses and other1,173 1,180 
Total current assets19,666 17,404 
Noncurrent Assets:
Property and equipment, net of accumulated depreciation and amortization of $18,477 and $17,511
27,508 26,529 
Operating lease right-of-use assets5,653 5,733 
Goodwill9,753 9,753 
Identifiable intangibles, net of accumulated amortization of $888 and $883
6,006 6,011 
Cash restricted for airport construction929 1,556 
Equity investments2,143 1,665 
Deferred income taxes, net2,158 1,988 
Other noncurrent assets1,493 1,357 
Total noncurrent assets55,643 54,592 
Total assets$75,309 $71,996 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of debt and finance leases$2,372 $1,732 
Current maturities of operating leases638 678 
Air traffic liability6,798 4,044 
Accounts payable3,930 2,840 
Accrued salaries and related benefits2,215 2,086 
Loyalty program deferred revenue2,757 1,777 
Fuel card obligation1,100 1,100 
Other accrued liabilities3,763 1,670 
Total current liabilities23,573 15,927 
Noncurrent Liabilities:
Debt and finance leases26,679 27,425 
Noncurrent air traffic liability140 500 
Pension, postretirement and related benefits8,644 10,630 
Loyalty program deferred revenue4,644 5,405 
Noncurrent operating leases5,633 5,713 
Other noncurrent liabilities4,715 4,862 
Total noncurrent liabilities50,455 54,535 
Commitments and Contingencies
Stockholders' Equity:
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 649,637,387 and 647,352,203
shares issued
  
Additional paid-in capital11,396 11,259 
Accumulated deficit(953)(428)
Accumulated other comprehensive loss(8,882)(9,038)
Treasury stock, at cost, 9,722,509 and 9,169,683 shares
(280)(259)
Total stockholders' equity1,281 1,534 
Total liabilities and stockholders' equity$75,309 $71,996 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Delta Air Lines, Inc. June 2021 Form 10-Q                                 3

Financial Statements
DELTA AIR LINES, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(in millions, except per share data)2021202020212020
Operating Revenue:
Passenger$5,339 $678 $8,087 $8,247 
Cargo251 108 466 261 
Other1,536 682 2,723 1,552 
  Total operating revenue7,126 1,468 11,276 10,060 
Operating Expense:
Salaries and related costs2,328 2,127 4,530 4,989 
Aircraft fuel and related taxes1,487 372 2,504 1,967 
Ancillary businesses and refinery939 401 1,645 620 
Contracted services570 369 1,089 1,117 
Depreciation and amortization501 591 993 1,268 
Landing fees and other rents460 422 953 972 
Regional carrier expense403 338 804 914 
Aircraft maintenance materials and outside repairs287 43 581 512 
Passenger commissions and other selling expenses222 50 332 448 
Passenger service175 91 294 364 
Aircraft rent104 96 208 196 
Restructuring charges8 2,454 (36)2,454 
Government grant recognition(1,504)(1,280)(2,689)(1,280)
Other330 209 650 744 
Total operating expense6,310 6,283 11,858 15,285 
Operating Income/(Loss)816 (4,815)(582)(5,225)
Non-Operating Expense:
Interest expense, net(338)(194)(700)(273)
Impairments and equity method losses (2,058)(54)(2,318)
Gain/(loss) on investments, net211 8 473 (104)
Miscellaneous, net87 45 124 299 
Total non-operating expense, net(40)(2,199)(157)(2,396)
Income/(Loss) Before Income Taxes776 (7,014)(739)(7,621)
Income Tax (Provision)/Benefit(124)1,297 214 1,370 
Net Income/(Loss)$652 $(5,717)$(525)$(6,251)
Basic Earnings/(Loss) Per Share$1.02 $(9.01)$(0.82)$(9.83)
Diluted Earnings/(Loss) Per Share$1.02 $(9.01)$(0.82)$(9.83)
Cash Dividends Declared Per Share$ $ $ $0.40 
Comprehensive Income/(Loss)$730 $(5,756)$(369)$(6,199)
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Delta Air Lines, Inc. June 2021 Form 10-Q                                 4

Financial Statements
DELTA AIR LINES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
(in millions)20212020
Net Cash Provided by Operating Activities$2,557 $68 
Cash Flows from Investing Activities:
Property and equipment additions:
Flight equipment, including advance payments(527)(659)
Ground property and equipment, including technology(672)(559)
Proceeds from sale-leaseback transactions 465 
Purchase of short-term investments(5,587)(4,955)
Redemption of short-term investments6,494 654 
Purchase of equity investments (2,099)
Other, net258 107 
Net cash used in investing activities(34)(7,046)
Cash Flows from Financing Activities:
Proceeds from short-term obligations 3,261 
Proceeds from long-term obligations1,902 11,747 
Proceeds from sale-leaseback transactions 2,306 
Payments on debt and finance lease obligations(3,133)(1,712)
Repurchase of common stock (344)
Cash dividends (260)
Fuel card obligation 103 
Other, net111 (35)
Net cash (used in)/provided by financing activities(1,120)15,066 
Net Increase in Cash, Cash Equivalents and Restricted Cash Equivalents1,403 8,088 
Cash, cash equivalents and restricted cash equivalents at beginning of period10,055 3,730 
Cash, cash equivalents and restricted cash equivalents at end of period$11,458 $11,818 
Non-Cash Transactions:
Flight and ground equipment acquired under finance leases$779 $213 
Right-of-use assets acquired under operating leases259 393 
Other financings240  
The following table provides a reconciliation of cash, cash equivalents and restricted cash equivalents reported within the Consolidated Balance Sheets to the total of the same such amounts shown above:
June 30,
(in millions)20212020
Current assets:
Cash and cash equivalents$10,357 $11,366 
Restricted cash included in prepaid expenses and other172 113 
Noncurrent assets:
Cash restricted for airport construction929 339 
Total cash, cash equivalents and restricted cash equivalents$11,458 $11,818 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Delta Air Lines, Inc. June 2021 Form 10-Q                                 5

Financial Statements
DELTA AIR LINES, INC.
Consolidated Statements of Stockholders' Equity
(Unaudited)
Common StockAdditional
Paid-In Capital
Accumulated DeficitAccumulated
Other
Comprehensive Loss
Treasury Stock
(in millions, except per share data)SharesAmountSharesAmountTotal
Balance at December 31, 2020
647 $ $11,259 $(428)$(9,038)9 $(259)$1,534 
Net loss— — — (1,177)— — — (1,177)
Other comprehensive income— — — — 78 — — 78 
Common stock issued for employee equity awards(1)
2 — 23 — — 1 (20)3 
Government grant warrant issuance— — 44 — — — — 44 
Balance at March 31, 2021
649 $ $11,326 $(1,605)$(8,960)10 $(279)$482 
Net income— — — 652 — — — 652 
Other comprehensive income— — — — 78 — — 78 
Common stock issued for employee equity awards(1)
1 — 28 — —  (1)27 
Government grant warrant issuance— — 42 — — — — 42 
Balance at June 30, 2021
650 $ $11,396 $(953)$(8,882)10 $(280)$1,281 

(1)Treasury shares were withheld for payment of taxes, at a weighted average price per share of $38.35 and $46.21 in the March 2021 quarter and June 2021 quarter, respectively.


Common StockAdditional
Paid-In Capital
 Retained
Earnings
Accumulated
Other
Comprehensive Loss
Treasury Stock
(in millions, except per share data)SharesAmountSharesAmountTotal
Balance at December 31, 2019
652 $ $11,129 $12,454 $(7,989)9 $(236)$15,358 
Net loss— — — (534)— — — (534)
Dividends declared— — — (257)— — — (257)
Other comprehensive income— — — — 91 — — 91 
Common stock issued for employee equity awards(1)
1 — 29 — — 1 (34)(5)
Stock purchased and retired(6)— (104)(240)— — — (344)
Balance at March 31, 2020
647 $ $11,054 $11,423 $(7,898)10 $(270)$14,309 
Net loss— — — (5,717)— — — (5,717)
Other comprehensive loss— — — — (39)— — (39)
Common stock issued for employee equity awards(1)
 — 38 — —  (1)37 
Government grant warrant issuance— — 100 — — — — 100 
Balance at June 30, 2020
647 $ $11,192 $5,706 $(7,937)10 $(271)$8,690 

(1)Treasury shares were withheld for payment of taxes, at a weighted average price per share of $56.48 and $25.56 in the March 2020 quarter and June 2020 quarter, respectively.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
Delta Air Lines, Inc. June 2021 Form 10-Q                                 6

Notes to the Consolidated Financial Statements
DELTA AIR LINES, INC.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

NOTE 1. 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 consolidated 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, 2020.

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 impacts from the COVID-19 pandemic and the uncertain pace of recovery, seasonal variations in the demand for air travel, the volatility of aircraft fuel prices and other factors, operating results for the three and six months ended June 30, 2021 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.

Regional Carrier Expense

We previously allocated certain costs (such as landing fees and other rents, salaries and related costs and contracted services) to regional carrier expense in our Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) ("income statement") based on relevant statistics (such as passenger counts). Beginning in the March 2021 quarter we ceased performing this allocation and have reclassified the costs presented in prior periods to align with this presentation. This reclassification better reflects the nature of, and how management views, these regional carrier related expenses. This allocation was approximately $900 million in 2020, including approximately $160 million in the June 2020 quarter, and $1.4 billion in 2019, including approximately $360 million in the June 2019 quarter. The remaining amounts in regional carrier expense represent payments to our regional carriers under capacity purchase agreements and the expenses of our wholly owned regional subsidiary, Endeavor Air, Inc.


Delta Air Lines, Inc. June 2021 Form 10-Q                                 7

Notes to the Consolidated Financial Statements
NOTE 2. REVENUE RECOGNITION

Passenger Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)2021202020212020
Ticket$4,553 $568 $6,830 $7,078 
Loyalty travel awards428 45 669 588 
Travel-related services358 65 588 581 
Total passenger revenue$5,339 $678 $8,087 $8,247 

We recognized approximately $1.4 billion and $2.9 billion in passenger revenue during the six months ended June 30, 2021 and 2020, respectively, that had been recorded in our air traffic liability balance at the beginning of those periods.

In the March 2021 quarter, we announced the extension of the validity of all passenger tickets and travel credits purchased or expiring in 2021 to December 2022. In addition, we waived change fees for all tickets purchased through April 30, 2021, as well as eliminated change fees for domestic and international tickets originating from North America with the exception of Basic Economy tickets.

Other Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)2021202020212020
Ancillary businesses and refinery$962 $390 $1,688 $613 
Loyalty program439 269 807 743 
Miscellaneous135 23 228 196 
Total other revenue$1,536 $682 $2,723 $1,552 

Ancillary Businesses and Refinery. Ancillary businesses and refinery includes refinery sales to third parties, aircraft maintenance services we provide to third parties and our vacation wholesale operations.

Loyalty Program. Our SkyMiles loyalty program allows customers to earn mileage credits ("miles") by flying on Delta, Delta Connection and other airlines that participate in the loyalty program. Customers can also earn miles through participating companies, such as credit card companies, hotels, car rental agencies and ridesharing companies, who purchase miles from us. Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. During the six months ended June 30, 2021 and 2020, total cash sales from marketing agreements related to our loyalty program were $1.8 billion and $1.5 billion, respectively, which are allocated to travel and other performance obligations.

Current Activity of the Loyalty Program. Miles are combined in one homogeneous pool and are not separately identifiable. Therefore, the revenue is comprised of miles that were part of the loyalty program 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 program deferred revenue and includes miles earned through travel and miles sold to participating companies, which are primarily through marketing agreements.

Loyalty program activity
(in millions)20212020
Balance at January 1$7,182 $6,728 
Miles earned915 872 
Travel miles redeemed(669)(588)
Non-travel miles redeemed(27)(31)
Balance at June 30
$7,401 $6,981 

The timing of mile redemptions can vary widely; however, the majority of miles have historically been redeemed within two years of being earned.
Delta Air Lines, Inc. June 2021 Form 10-Q                                 8

Notes to the Consolidated Financial Statements
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. A significant portion of the refinery segment's revenues typically consists of fuel sales to support the airline, which is 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 by geographic region
Passenger Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)2021202020212020
Domestic$4,478 $564 $6,758 $6,165 
Atlantic288 64 430 882 
Latin America485 18 749 783 
Pacific88 32 150 417 
Total$5,339 $678 $8,087 $8,247 

Operating revenue by geographic region
Operating Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)2021202020212020
Domestic$5,894 $1,264 $9,262 $7,531 
Atlantic467 119 734 1,113 
Latin America586 26 967 889 
Pacific179 59 313 527 
Total$7,126 $1,468 $11,276 $10,060 



Delta Air Lines, Inc. June 2021 Form 10-Q                                 9

Notes to the Consolidated Financial Statements
NOTE 3. FAIR VALUE MEASUREMENTS

Assets Measured at Fair Value on a Recurring Basis
(in millions)June 30,
2021
Level 1Level 2Level 3
Cash equivalents$7,887 $7,887 $ $ 
Restricted cash equivalents1,101 1,101   
Short-term investments4,873 2,807 2,066  
Long-term investments1,888 1,230 557 101 
(in millions)December 31,
2020
Level 1Level 2Level 3
Cash equivalents$5,755 $5,755 $ $ 
Restricted cash equivalents1,747 1,747   
Short-term investments5,789 3,919 1,870  
Long-term investments1,417 948 38 431 

Cash Equivalents and Restricted Cash Equivalents. Cash equivalents generally consist of money market funds. Restricted cash equivalents are recorded in prepaid expenses and other and cash restricted for airport construction on our Consolidated Balance Sheet ("balance sheet"). 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, among other things, 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. Short-term investments consist of U.S. government and agency securities. The fair values of these investments are based on a market approach using industry standard valuation techniques that incorporate observable inputs such as quoted market prices, interest rates, benchmark curves, credit ratings of the security and other observable information.

As of June 30, 2021, the estimated fair value of our short-term investments was $4.9 billion. Of these investments, $4.2 billion are expected to mature in one year or less, with the remainder maturing by the end of 2022. Investments with maturities beyond one year when purchased are classified as short-term investments if they are expected to be available to support our short-term liquidity needs.

Long-Term Investments. Our long-term investments measured at fair value primarily consist of equity investments, which are valued based on market prices or other observable transactions and inputs, and are recorded in equity investments on our balance sheet. In the March 2021 quarter, Wheels Up entered into an agreement to merge with Aspirational Consumer Lifestyle Corp ("Aspirational"), a publicly-traded special purpose acquisition company. As of June 30, 2021, our investment in Wheels Up continues to be classified as Level 2. Consistent with our other equity investments that are traded on a public exchange, when Wheels Up shares are actively traded, this investment will be recharacterized as Level 1. In the June 2021 quarter, shares of Clear Secure, Inc. ("CLEAR") became publicly traded and as of June 30, 2021 our investment is classified as Level 1. In addition, our equity investments in other private companies are classified as Level 3 in the fair value hierarchy as their equity is not traded on a public exchange and our valuations incorporate certain unobservable inputs, including non-public equity issuances and forecasts provided by our investees. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values. See Note 4, "Investments," for further information on our equity investments.


Delta Air Lines, Inc. June 2021 Form 10-Q                                 10

Notes to the Consolidated Financial Statements
NOTE 4. INVESTMENTS

We have developed strategic relationships with a number of airlines and airline services companies through joint ventures and other forms of cooperation and support, including equity investments. Our equity investments reinforce our commitment to these relationships and generally enhance our ability to offer input to the investee on strategic issues and direction, in some cases through representation on the board of directors.

Changes in the valuation of investments accounted for at fair value are recorded in gain/(loss) on investments in our income statement within non-operating expense and are driven by changes in stock prices, other valuation techniques for investments in companies without publicly-traded shares and foreign currency fluctuations. We recorded gains of $211 million and $473 million on our fair value investments during the three and six months ended June 30, 2021 and gains of $8 million and losses of $104 million during the three and six months ended June 30, 2020, respectively.

Our share of Unifi Aviation's financial results is recorded in contracted services in our income statement as this entity is integral to the operations of our business, while our share of other equity method investees' financial results is recorded in impairments and equity method losses in our income statement under non-operating expense. If an investment accounted for under the equity method experiences a loss in value that is determined to be other than temporary, we will reduce our carrying value of the investment to fair value and record the loss in impairments and equity method losses in our income statement.

Equity investments ownership interest and carrying value
Accounting TreatmentOwnership InterestCarrying Value
(in millions)June 30, 2021December 31, 2020June 30, 2021December 31, 2020
Wheels UpFair Value24 %24 %$520 $210 
Hanjin-KALFair Value13 %13 %517 512 
Air France-KLMFair Value6 %9 %181 235 
China EasternFair Value3 %3 %197 201 
CLEARFair Value6 %6 %331 120 
Unifi AviationEquity Method49 %49 %162 154 
Other investmentsVarious234 233 
Equity investments$2,143 $1,665 

Wheels Up. In the March 2021 quarter, Wheels Up entered into a definitive agreement to become publicly-traded via a merger with Aspirational, and the transaction closed on July 13, 2021. Aspirational changed its name to Wheels Up Experience Inc. upon consummation of the transaction, and the Wheels Up common stock began trading on the New York Stock Exchange under the symbol UP. We account for our investment under the fair value option and will use the stock price to recognize fair value adjustments beginning in the September 2021 quarter.

Clear Secure, Inc. ("CLEAR"). In June 2021, CLEAR launched and priced an initial public offering of Class A common stock, which began trading on the New York Stock Exchange under the symbol YOU. Based on the June 30, 2021 closing price of those shares, our 6% ownership interest (on a fully exchanged and converted basis) in CLEAR is valued at $331 million.

Other Investments. This category includes various investments that are accounted for at fair value or under the equity method, depending on our ownership interest and the level of influence conveyed by our investment. Included therein are our investments in Grupo Aeroméxico, LATAM Airlines Group S.A. ("LATAM") and Virgin Atlantic, all of which are undergoing in-court or out-of-court restructurings, and the carrying values of these investments have been reduced to and remain zero at June 30, 2021. In order to support our relationships with these carriers, we have provided them with strategic and operational assistance through their restructurings. We have notes payable of approximately $530 million, which are recorded in current maturities of debt and finance leases, and receivables from those partners recorded within other noncurrent assets as of June 30, 2021, including $185 million related to our option to purchase certain obligations of a lender under Grupo Aeroméxico's restructuring process and that lender’s right to require our purchase of that portion of its obligations.

GOL. During 2020, we loaned GOL Linhas Aéreas Inteligentes, the parent company of GOL Linhas Aéreas (operating as GOL), $250 million to be used exclusively to repay the term loan we had previously guaranteed. In the June 2021 quarter, GOL repaid the outstanding balance of this loan in full.


Delta Air Lines, Inc. June 2021 Form 10-Q                                 11

Notes to the Consolidated Financial Statements
NOTE 5. DEBT

Summary of outstanding debt by category
MaturityInterest Rate(s) Per Annum atJune 30,December 31,
(in millions)DatesJune 30, 202120212020
Unsecured notes2022to20292.90%to7.38%$4,750 $5,350 
Unsecured Payroll Support Program Loan20301.00%1,648 1,648 
Unsecured Payroll Support Program Extension Loan20311.00%957  
Unsecured Payroll Support Program 3 Loan20311.00%891  
Financing arrangements secured by SkyMiles assets:
SkyMiles Notes(1)
2023to20284.50%and4.75%6,000 6,000 
SkyMiles Term Loan(1)(2)
2023to20274.75%3,000 3,000 
Financing arrangements secured by slots, gates and/or routes:
2020 Senior Secured Notes20257.00%3,500 3,500 
2020 Term Loann/an/a 1,493 
2018 Revolving Credit Facility(2)
2022to2023Undrawn  
Financing arrangements secured by aircraft:
Certificates(1)
2021to20282.00%to8.00%2,009 2,633 
Notes(1)(2)
2021to20330.71%to5.75%1,279 1,284 
NYTDC Special Facilities Revenue Bonds, Series 2020(1)
2026to20454.00%to5.00%1,511 1,511 
NYTDC Special Facilities Revenue Bonds, Series 2018(1)
2022to20364.00%to5.00%1,383 1,383 
Other financings(1)(2)
2021to20302.25%to8.00%594 412 
Other revolving credit facilities(2)
2022Undrawn  
Total secured and unsecured debt27,522 28,214 
Unamortized (discount)/premium and debt issue cost, net and other(257)(240)
Total debt27,265 27,974 
Less: current maturities(2,019)(1,443)
Total long-term debt$25,246 $26,531 
(1)Due in installments.
(2)Certain 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.

Unsecured Payroll Support Program Extension Loans

The Consolidated Appropriations Act, 2021 was enacted on December 27, 2020, and included an extension of the payroll support program created under the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") providing an additional $15 billion in grants and loans to the airline industry to be used for airline employee wages, salaries and benefits. In January 2021, we entered into a payroll support program extension agreement with the U.S. Department of the Treasury. During the six months ended June 30, 2021, we received a total of $3.3 billion in payroll support payments under this extension agreement, which must be used exclusively for the payment of employee wages, salaries and benefits and were conditioned on our agreement to refrain from conducting involuntary employee layoffs or furloughs from the date of the extension agreement through March 2021. Other conditions include prohibitions on share repurchases and dividends through March 2022 and certain limitations on executive compensation until October 2022. The Department of Transportation also has the authority until March 1, 2022 to require airlines that received payroll support program funds to maintain scheduled air service deemed necessary to any point served by the airline before March 1, 2020.

Delta Air Lines, Inc. June 2021 Form 10-Q                                 12

Notes to the Consolidated Financial Statements
These support payments consisted of $2.3 billion in a grant and $957 million in an unsecured 10-year low interest loan and, in return, we entered into a promissory note for the loan and issued warrants to the U.S. Department of the Treasury to acquire approximately 2.4 million shares of Delta common stock. The loan bears interest at an annual rate of 1.00% for the first five years and the applicable Secured Overnight Financing Rate ("SOFR") plus 2.00% in the final five years. The warrants have an initial exercise price of $39.73 per share, subject to adjustment in certain cases, and a five-year term. We have recorded the value of the promissory note and warrants on a relative fair value basis as $905 million of noncurrent debt, net of discount, and $52 million in additional paid in capital, respectively.

The American Rescue Plan Act of 2021 was enacted on March 11, 2021, and included a further extension of the payroll support program providing an additional $14 billion in grants and loans to the industry to be used for airline employee wages, salaries and benefits. In April 2021, we entered into a Payroll Support Program 3 Agreement with the U.S. Department of the Treasury. During the June 2021 quarter we received a total of $3.1 billion in payroll support payments under this agreement, which must be used exclusively for the payment of employee wages, salaries and benefits and is conditioned on our agreement to refrain from conducting involuntary employee layoffs or furloughs from the date of the agreement through September 30, 2021 or the date on which we have expended all of the payroll support, whichever is later. Other conditions include prohibitions on share repurchases and dividends through September 30, 2022 and certain limitations on executive compensation until April 1, 2023.