Delta lowers debt ratio to 2.9x in Q1 by repaying $700 million debt

By Devika Patel

Knoxville, Tenn., April 11 – Delta Air Lines, Inc. cut its leverage ratio to 2.9x as of March 31 after $700 million of debt repayments in the last quarter.

“Debt reduction remains a top priority,” executive vice president and chief financial officer Dan Janki said on the company’s first quarter ended March 31 earnings conference call on Wednesday.

“Our leverage ratio improved to 2.9x during the quarter [and] we repaid $700 million of debt, including $400 million of scheduled maturities and $300 million of additional debt initiatives,” Janki said on the call.

“We are on track to improve full year leverage,” Janki stated in a Wednesday press release.

“We expect to repay at least $4 billion of debt this year and continue to be opportunistic in accelerating debt reduction,” Janki said on the call.

“We are currently investment-grade rated at Moody’s and BB+ at both S&P and Fitch, with all agencies now on positive outlook following updates from Fitch and Moody’s during the quarter,” he said on the call.

Free cash flow was $1.4 billion for the quarter.

Liquidity was $7.4 billion at quarter-end, including $2.9 billion in undrawn revolver capacity.

Cash and cash equivalents were $3,877,000,000 as of March 31, 2024, compared to $2,741,000,000 as of Dec. 31, 2023.

Debt and finance leases were $16,555,000,000 as of March 31, 2024, compared to $17,071,000,000 as of Dec. 31, 2023.

Current maturities of debt and finance leases were $2,809,000,000 as of March 31, 2024, compared to $2,983,000,000 as of Dec. 31, 2023.

Delta is a commercial airline based in Atlanta.

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