Delta Air Lines Inc (DAL)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	5,995,000	5,521,000	3,661,000	1,886,000	-12,469,000
Interest expense	US$ in thousands	—	42,000	45,000	55,000	32,000
Interest coverage		—	131.45	81.36	34.29	-389.66

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $5,995,000K ÷ $—K
= —

Delta Air Lines Inc's interest coverage ratio has shown significant fluctuations over the years, indicating varying levels of financial strength in meeting its interest obligations. As of December 31, 2020, the interest coverage ratio was significantly negative at -389.66, suggesting financial distress and a potential inability to cover interest payments using its operating income.

However, there was a significant improvement in the interest coverage ratio by December 31, 2021, where it stood at 34.29. This indicates that Delta Air Lines Inc's ability to cover its interest expenses had substantially improved compared to the previous year. The ratio continued to improve in the subsequent years, reaching 81.36 by December 31, 2022, and further increasing to 131.45 by December 31, 2023.

The data for December 31, 2024, is represented as "—," which may indicate that the figure is not available or not applicable for that period.

Overall, the trend in Delta Air Lines Inc's interest coverage ratio shows a positive trajectory, with a significant turnaround from a negative ratio to a solid position of being able to cover its interest expenses comfortably in the later years. This improvement signifies better financial stability and a reduced risk of defaulting on interest payments.