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ENVIRONMENT
Climate Risks and Opportunities
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Our exposure to climate-related risks and opportunities informs our approach to climate and decarbonization.
As part of an industry that operates globally and is difficult to decarbonize, airlines are susceptible to climate-related risks such as extreme weather and increasing fuel costs. Identifying and understanding those risks and their potential impacts on our business is an important part of framing our overall climate strategy in response to an ever-changing climate landscape.
Our Enterprise Risk Management (ERM) framework integrates specific climate risks into safety and security, operational, strategic, financial and legal and compliance risk assessments. In 2021, Delta conducted a climate scenario analysis to inform further and strengthen our understanding and management of potential climate-related risks.
Climate Scenario Analysis Methodology
The analysis followed the International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) frameworks to explore a range of plausible climate scenarios and evaluate potential business implications from transition and physical risks, respectively.

Process for Identifying Transition Risks

Risks arising from the transition to a low-carbon economy, including policy and legal, technology, market and reputation, may impact how we do business. To evaluate these risks, we applied three of the IEA’s 2021 World Energy Outlook (WEO) scenarios, including:
Net-Zero Emissions by 2050 (NZE) that sets out a pathway to achieve net-zero CO2 emissions by 2050 and is in line with limiting temperature increase to no more than 1.5°C
Sustainable Development Scenario (SDS) that is consistent with the “well below 2°C” goal of the Paris Agreement while achieving universal energy access and improving air quality
Stated Policies Scenario (STEPS) that reflects current policies that are already in place, as well as those announced by governments and under development
We show the emissions trajectory and temperature outcomes of the three scenarios used in the analysis to project a particular future state of the world. GDP and population growth assumptions were held consistent across scenarios. For each scenario, we evaluated broad cross-cutting policy frameworks, detailed transport sector policies in regions in which Delta operates and forecasted prices of carbon and crude oil.

Process for Identifying Physical Risks

The airline industry relies largely on business models concentrating operations in major airports globally. An extended interruption or disruption resulting from climate-related events, such as flooding in connection with rising sea levels at an airport where we have significant operations could have a material adverse effect on business. We evaluated 21 airport locations – 12 domestic and 9 international – strategically important to our business to better understand our exposure to potential climate-related disruptions. For each location, we conducted a physical risk assessment to evaluate the risk of flooding and sea level rise, extreme weather events and increased temperature.
The baseline scenario used was RCP 8.5 (Representative Concentration Pathway), the perceived worst-case high emissions scenario where emissions are allowed to exceed cautionary levels and global temperature rises by about 3.7°C by 2023. This scenario is projected to cause irreversible damage to our planet’s stability. When projecting an airport location to experience notable impact from certain physical risks like RCP 4.5, we used a lower emissions scenario where the global temperature rises only by about 1.8°C by 2100 to evaluate physical risks under a less dramatic scenario. Our physical risk assessment focused on 2050.

Key Transition Risks

Short-Term: Before 2025
Medium-Term: 2025-2035
Long-Term: 2036 and beyond
Policy/Legal
Potential Financial/Operational Impact
Carbon pricing mechanisms could increase the price of aircraft fuel and could significantly impact our operating costs. We may be exposed to duplicative emissions pricing if a “patchwork” of international carbon schemes are applied as opposed to a harmonized global approach.
An increase in SAF mandates in various jurisdictions may result in increased operating costs due to the SAF premium or penalty in cases where SAF supply is not sufficient to meet the mandate. Additional regulatory policies governing aircraft emissions in the U.S. or abroad may increase our compliance costs.
Time Horizon
Medium, Long
Management Strategies
We monitor emerging regulations to understand potential risks and opportunities.
We engage with policymakers and industry associations to advocate for solutions to decarbonize our industry and advocate for a global approach to addressing GHG emissions from international aviation.
Technology
Potential Financial/Operational Impact
Our climate goals rely on continued investment in fleet renewal, SAF and development of other technologies that are not commercially available or available at scale today. The cost to transition to lower emissions technology could result in increased capital investments in technology deployment, research and development (SAF or aircraft) or additional costs to adopt new technologies.
Time Horizon
Medium, Long
Management Strategies
We have established sustainability considerations as one of our key core pillars that guide our fleet strategy and our capital allocation decisions with respect to fleet. A commitment to efficiency improvements from fleet renewal is expected to reduce GHG emissions intensity until new aircraft technologies that will further reduce emissions are available at scale.
We are committed to engaging our stakeholders to help bring alternative fuels and new technologies to scale for the industry, including through public-private partnerships, such as the First Movers Coalition, focused on unlocking solutions for hard-to-abate sectors.
These partnerships and coalitions focus on bringing SAF to market faster by influencing policy developments to support the production of SAF.
Market
Potential Financial/Operational Impact
Business air travel could decline or recover at slower rates due to the increased use of alternatives such as virtual meetings and events. This could result in a decline in revenue.
Demand for short-haul, regional flights could shift to lower-carbon alternatives such as high-speed rail in certain regions. Although such shifts are not expected to be material to Delta, this could also result in a decline in revenue.
In addition to risks from potential changes to environmental regulation and policy, the transition to lower-carbon technologies, such as SAF, or changes in consumer preferences resulting from a negative perception of the environmental impact of air travel could materially adversely affect our business and financial results. For example, lower-carbon technologies such as SAF and direct air capture technologies are currently not available at scale and may take decades to develop, and the cost to transition to them could be prohibitively expensive without appropriate government policies and incentives in place.
Time Horizon
Short, Medium, Long
Management Strategies
We understand that climate change impacts from air travel are a concern for our customers, particularly corporate customers, as many are building “return to travel” programs that have business travel reduction goals in order to meet climate metrics. We have announced our intention to set ambitious science-based targets to address our GHG emissions while still providing efficient transport for our customers.
We also engage our corporate customers on sustainability by providing emissions data regarding their travel, along with opportunities to invest in SAF together to address our shared Scope 1 and Scope 3 emissions using an in-sector solution.
We believe our proactive climate strategy positions us to be an industry leader in sustainability to hedge against market shifts in consumer preferences.
Reputation
Potential Financial/Operational Impact
Our reputation among customers could be impacted if we fail to make progress toward and achieve our ambitious climate goals. Not meeting climate goals or not setting aggressive industry targets may result in customers, investors and NGOs seeking more substantial improvements in the commercial airline sector. These risks could impact Delta’s market share and revenue or result in a shift away from air travel more broadly.
Time Horizon
Medium, Long
Management Strategies
Maintaining our reputation and global brand is critical to our business. We have announced our intention to set ambitious climate goals and are diligently working to establish a transition plan to achieve our goals. We intend to reduce emissions through various levers as described above.
We also plan to continue to transparently communicate our actions and progress toward our goals and to work closely with our stakeholders to understand and seek to meet their expectations.
Risk Type
Potential Financial/Operational Impact
Time Horizon
Management Strategies
Policy/Legal
Carbon pricing mechanisms could increase the price of aircraft fuel and could significantly impact our operating costs. We may be exposed to duplicative emissions pricing if a “patchwork” of international carbon schemes are applied as opposed to a harmonized global approach.
An increase in SAF mandates in various jurisdictions may result in increased operating costs due to the SAF premium or penalty in cases where SAF supply is not sufficient to meet the mandate. Additional regulatory policies governing aircraft emissions in the U.S. or abroad may increase our compliance costs.
Medium, Long
We monitor emerging regulations to understand potential risks and opportunities.
We engage with policymakers and industry associations to advocate for solutions to decarbonize our industry and advocate for a global approach to addressing GHG emissions from international aviation.
Technology
Our climate goals rely on continued investment in fleet renewal, SAF and development of other technologies that are not commercially available or available at scale today. The cost to transition to lower emissions technology could result in increased capital investments in technology deployment, research and development (SAF or aircraft) or additional costs to adopt new technologies.
Medium, Long
We have established sustainability considerations as one of our key core pillars that guide our fleet strategy and our capital allocation decisions with respect to the fleet. A commitment to efficiency improvements from fleet renewal is expected to reduce GHG emissions intensity until new aircraft technologies that will further reduce emissions are available at scale.
We are committed to engaging our stakeholders to help bring alternative fuels and new technologies to scale for the industry, including through public-private partnerships, such as the First Movers Coalition, focused on unlocking solutions for hard-to-abate sectors.
These partnerships and coalitions focus on bringing SAF to market faster by influencing policy developments to support the production of SAF.
Market
Business air travel could decline or recover at slower rates due to the increased use of alternatives such as virtual meetings and events. This could result in a decline in revenue.
Demand for short-haul, regional flights could shift to lower-carbon alternatives such as high-speed rail in certain regions. Although such shifts are not expected to be material to Delta, this could also result in a decline in revenue.
In addition to risks from potential changes to environmental regulation and policy, the transition to lower-carbon technologies, such as SAF, or changes in consumer preferences resulting from a negative perception of the environmental impact of air travel could materially adversely affect our business and financial results. For example, lower-carbon technologies such as SAF and direct air capture are currently not available at scale and may take decades to develop and the cost to transition to them could be prohibitively expensive without appropriate government policies and incentives in place.
Short, Medium, Long
We understand that climate change impacts from air travel are a concern for our customers, particularly corporate customers, as many are building “return to travel” programs that have business travel reduction goals in order to meet climate metrics. We have announced our intention to set ambitious science-based targets to address our GHG emissions while still providing efficient transport for our customers.
We also engage our corporate customers on sustainability by providing emissions data regarding their travel, along with opportunities to invest in SAF together to address our shared Scope 1 and Scope 3 emissions using an in-sector solution.
We believe our proactive climate strategy positions us to be an industry leader in sustainability to hedge against market shifts in consumer preferences.
Reputation
Our reputation among customers could be impacted if we fail to make progress toward and achieve our ambitious climate goals. Not meeting climate goals or not setting aggressive industry targets may result in customers, investors and NGOs seeking more substantial improvements in the commercial airline sector. These risks could impact Delta’s market share and revenue or result in a shift away from air travel more broadly.
Medium, Long
Maintaining our reputation and global brand is critical to our business. We have announced our intention to set ambitious climate goals and are diligently working to establish a transition plan to achieve our goals. We intend to reduce emissions through various levers as described previously.
We also plan to continue to transparently communicate our actions and progress toward our goals and to work closely with our stakeholders to understand and seek to meet their expectations.

Key Physical Risks

Short-Term: Before 2025
Medium-Term: 2025-2035
Long-Term: 2036 and beyond
Our risk analysis assessed 21 of our most strategically important domestic and international airport locations and indicated that, with the exception of the airport noted below, the potential physical impacts (flooding and sea level rise, extreme weather events and increased temperature) under the scenarios used were projected to be negligible.
Acute Flooding
Potential Financial/Operational Impact
Under a worst-case emissions scenario (RCP 8.5), acute flooding events in at LaGuardia Airport (LGA) could potentially result in damage to airport infrastructure such as runways.
Time Horizon
Long
Management Strategies
We have completed major elements of construction for Delta’s new terminal at LGA that will help mitigate risks to Delta’s assets and critical systems. We are working with the Port Authority of NY and NJ to address the risk of flooding to the airport infrastructure.
Sea Level Rise
Potential Financial/Operational Impact
In both RCP 8.5 and RCP 4.5, chronic impacts from sea level rise in LGA could damage airport infrastructure and may therefore require increased investment in fortifying the locations. Such increased costs could be passed on to us and increase our operating costs.
Time Horizon
Long
Management Strategies
We are working with the airport authorities to understand the potential impacts of sea level rise, and the airports’ ability to fortify the shorelines, including at LGA. Additionally, we have the option to use alternative locations in certain highly impacted regions in case such risks become more significant in the future.
Extreme Weather Events
Potential Financial/Operational Impact
Extreme weather events such as hurricanes, typhoons and winter storms may continue to intensify and/or increase in frequency.
Additionally, weather events, such as hurricanes in the Gulf of Mexico, may lead to disruptions in our fuel supply chain and operations. These disruptions may result in increased fuel costs, increased costs in handling irregular operations or decreases in revenue.
Time Horizon
Short, Medium, Long
Management Strategies
Our operations and real estate teams continue to work to mitigate potential extreme weather event impacts on our operations and assets, including working with airports to enhance airport infrastructure and adapting our operational procedures to prepare for such events.
We monitor closely the likelihood of severe weather that could impact fuel supply and adjust fuel reserves at our hubs accordingly. Our efforts to diversify fuel supply, including expanding SAF in the fuel mix, are also intended to mitigate the risk of supply disruptions in the long term.
Increased Temperature
Potential Financial/Operational Impact
Extremely high temperatures (>114F) may exceed the allowed temperature certified by the FAA; however, such temperatures were found to be extremely rare for the airport locations that we evaluated.
Time Horizon
Long
Management Strategies
We monitor temperatures at our hubs frequently and evaluate the risk of acute temperature extremes. We continue to work with aircraft manufacturers to evaluate and improve the safety of our aircraft under these conditions.
Risk Type
Potential Financial/Operational Impact
Time Horizon
Management Strategies
Acute Flooding
Under a worst-case emissions scenario (RCP 8.5), acute flooding events in at LaGuardia Airport (LGA) could potentially result in damage to airport infrastructure such as runways.
Long
We have completed major elements of construction for Delta’s new terminal at LGA that will help mitigate risks to Delta’s assets and critical systems. We are working with the Port Authority of NY and NJ to address the risk of flooding to the airport infrastructure.
Sea Level Rise
In both RCP 8.5 and RCP 4.5, chronic impacts from sea level rise in LGA could damage airport infrastructure and may therefore require increased investment in fortifying the locations. Such increased costs could be passed on to us and increase our operating costs.
Long
We are working with the airport authorities to understand the potential impacts of sea level rise and the airports’ ability to fortify the shorelines, including at LGA. Additionally, we have the option to use alternative locations in certain highly impacted regions in case such risks become more significant in the future.
Extreme Weather Events
Extreme weather events such as hurricanes, typhoons and winter storms may continue to intensify and/or increase in frequency.
Additionally, weather events, such as hurricanes in the Gulf of Mexico, may lead to disruptions in our fuel supply chain and operations. These disruptions may result in increased fuel costs, increased costs in handling irregular operations or decreases in revenue.
Short, Medium, Long
Our operations and real estate teams continue to work to mitigate potential extreme weather event impacts on our operations and assets, including working with airports to enhance airport infrastructure and adapting our operational procedures to prepare for such events.
We monitor closely the likelihood of severe weather that could impact fuel supply and adjust fuel reserves at our hubs accordingly. Our efforts to diversify fuel supply, including expanding SAF in the fuel mix, are also intended to mitigate the risk of supply disruptions in the long term.
Increased Temperature
Extremely high temperatures (>114°F) may exceed the allowed temperature certified by the FAA; however, such temperatures were found to be extremely rare for the airport locations that we evaluated.
Long
We monitor temperatures at our hubs frequently and evaluate the risk of acute temperature extremes. We continue to work with aircraft manufacturers to evaluate and improve the safety of our aircraft under these conditions.

Key Opportunities

Short-Term: Before 2025
Medium-Term: 2025-2035
Long-Term: 2036 and beyond
Resource Efficiency
Potential Financial/Operational Impact
Continuing to increase operational efficiency and deploy technical improvements that result in aircraft fuel efficiency could lower our fuel expense and reduce our GHG emissions.
Time Horizon
Short, Medium, Long
Management Strategies
We plan to continue to renew our fleet by retiring less efficient aircraft and investing in newer generation models.
We have established sustainability considerations as one of our key core pillars that guide our fleet strategy and our capital allocation decisions with respect to fleet. We continue to identify opportunities to further improve fuel efficiency. The Carbon Council plans to continue to focus on initiatives to save fuel and avoid GHG emissions.
Energy Source
Potential Financial/Operational Impact
SAF is a proven solution to decarbonize aviation, although it is not available at scale today. Increasing the percentage of SAF in our fuel helps us diversify fuel supply sources and reduce cost exposure to fossil fuels and potential carbon pricing schemes in the long term.
Time Horizon
Medium, Long
Management Strategies
Delta has a goal of having 10% of our jet fuel consumption come from SAF by the end of 2030. To achieve this goal, we are regularly evaluating multiple feedstock and technology types to understand the potential life cycle emissions reduction from different types of SAF. We are also putting offtake agreements in place to secure supply.
Products and Services
Potential Financial/Operational Impact
As consumer awareness around climate change continues to grow, providing lower-emission air travel may improve our competitive position.
Time Horizon
Short, Medium, Long
Management Strategies
We have announced our intention to set ambitious climate goals and expect to utilize available levers, particularly fleet and alternative fuels to advance these goals. We have been partnering and will continue to partner with corporate customers to scale up SAF for lower-emission air travel. Additionally, we work alongside our partners throughout the value chain to stay informed about emerging technologies and incorporate available technologies into our services.
Markets
Potential Financial/Operational Impact
Investing in strategic offsetting projects that support the shift to a lower-carbon economy may strengthen our relationship with the communities that we invest in and unlock growth opportunities for green infrastructure in emerging economies.
Time Horizon
Short, Medium, Long
Management Strategies
We evaluate the types of offset projects in which we have invested to understand their potential co-benefits and extended market impacts beyond emission offsets.
We request projects that adhere to Delta’s guidelines and principles.
Resiliency
Potential Financial/Operational Impact
Work with our airport hubs, and our suppliers to better understand and develop capabilities that better protect our operations and assets from adverse climate physical impacts.
Time Horizon
Short, Medium, Long
Management Strategies
We regularly evaluate potential risks to our people, our business and our operation, including those to our critical systems. Our close relationship with our supplier partners and vendors provides us the capability to respond to short-term supply chain disruptions. Additionally, we work to diversify our fuel supply sources for both conventional fuel and SAF to increase resiliency in our fuel supply chain in the long term. Furthermore, we have identified opportunities to evaluate and analyze the potential impact of climate change on our business by conducting risk assessments and business impact analysis and integrating the findings into our risk mitigation strategies to better protect our company.
Opportunity Type
Potential Financial/Operational Impact
Time Horizon
Management Strategies
Resource Efficiency
Continuing to increase operational efficiency and deploy technical improvements that result in aircraft fuel efficiency could lower our fuel expense and reduce our GHG emissions.
Short, Medium, Long
We plan to continue to renew our fleet by retiring less efficient aircraft and investing in newer generation models.
We have established sustainability considerations as one of our key core pillars that guide our fleet strategy and our capital allocation decisions with respect to fleet. We continue to identify opportunities to further improve fuel efficiency. The Carbon Council plans to continue to focus on initiatives to save fuel and avoid GHG emissions.
Energy Source
SAF is a proven solution to decarbonize aviation, although it is not available at scale today. Increasing the percentage of SAF in our fuel helps us diversify fuel supply sources and reduce cost exposure to fossil fuels and potential carbon pricing schemes in the long term.
Medium, Long
Delta has a goal of having 10% of our jet fuel consumption come from SAF by the end of 2030. To achieve this goal, we are regularly evaluating multiple feedstock and technology types to understand the potential life cycle emissions reduction from different types of SAF. We are also putting offtake agreements in place to secure supply.
Products and Services
As consumer awareness around climate change continues to grow, providing lower-emission air travel may improve our competitive position.
Short, Medium, Long
We have announced our intention to set ambitious climate goals and expect to utilize available levers, particularly fleet and alternative fuels to advance these goals. We have been partnering and will continue to partner with corporate customers to scale up SAF for lower-emission air travel. Additionally, we work alongside our partners throughout the value chain to stay informed about emerging technologies and incorporate available technologies into our services.
Markets
Investing in strategic offsetting projects that support the shift to a lower-carbon economy may strengthen our relationship with the communities that we invest in and unlock growth opportunities for green infrastructure in emerging economies.
Short, Medium, Long
We evaluate the types of offset projects in which we have invested to understand their potential co-benefits and extended market impacts beyond emission offsets.
We request projects that adhere to Delta’s guidelines and principles.
Resiliency
Work with our airport hubs, and our suppliers to better understand and develop capabilities that better protect our operations and assets from adverse climate physical impacts.
Short, Medium, Long
We regularly evaluate potential risks to our people, our business and our operation, including those to our critical systems. Our close relationship with our supplier partners and vendors provides us the capability to respond to short-term supply chain disruptions. Additionally, we work to diversify our fuel supply sources for both conventional fuel and SAF to increase resiliency in our fuel supply chain in the long term. Furthermore, we have identified opportunities to evaluate and analyze the potential impact of climate change on our business by conducting risk assessments and business impact analysis and integrating the findings into our risk mitigation strategies to better protect our company.