Delta Air Lines sets $2.65B new credit facility

Q: How is Delta’s new $2.65 billion revolving credit facility structured?

The facility consists of a $1.325 billion three-year tranche and a $1.325 billion five-year tranche, plus an uncommitted standby letter of credit facility. Up to $250 million of each tranche can support letters of credit, offering flexibility for collateral and guarantee needs.

Q: What financial covenants apply to Delta Air Lines’ new credit facility?

Delta must maintain a Minimum Fixed Charge Coverage Ratio of 1.25:1 and a Minimum Asset Coverage Ratio of 1.25:1. These covenants help ensure earnings and asset values remain sufficient relative to interest, aircraft rent obligations, and outstanding amounts under the facility.

Q: Can Delta increase the size of its new revolving credit facility?

Yes. The agreement includes an accordion feature allowing total lender commitments to rise to $3.65 billion, subject to Delta’s request and certain conditions. This mechanism gives Delta potential additional borrowing capacity without negotiating a completely new facility.

Delta Air Lines entered into a new $2.650 billion revolving credit facility with JPMorgan Chase and other lenders, replacing its November 2023 facility.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Delta Air Lines entered into a new $2.650 billion revolving credit facility with JPMorgan Chase and other lenders, replacing its November 2023 facility. The new Credit Facility was undrawn at signing and will be used partly to refinance the prior agreement and for general corporate purposes.

The revolver includes a $1.325 billion three-year tranche, a $1.325 billion five-year tranche, and an uncommitted standby letter of credit facility, with up to $250 million of each tranche available for letters of credit. An accordion feature allows total commitments to increase to $3.65 billion, subject to conditions. Delta must maintain a Minimum Fixed Charge Coverage Ratio of 1.25:1 and a Minimum Asset Coverage Ratio of 1.25:1, and comply with customary covenants and events of default.

Insights

Delta refinances a large revolver, keeping liquidity flexible under standard covenants.

Delta Air Lines has arranged a new $2.650 billion revolving credit facility, split between three-year and five-year tranches, fully replacing its 2023 agreement. The facility was undrawn at signing, indicating it functions primarily as a liquidity backstop rather than immediate funding.

The agreement permits an accordion increase to $3.65 billion and includes an uncommitted standby letter of credit facility, giving Delta multiple tools for working capital and collateral needs. Pricing is tied to adjusted term SOFR or another index plus a margin, which embeds interest-rate exposure typical for variable-rate corporate lines.

Covenants require a Minimum Fixed Charge Coverage Ratio and Minimum Asset Coverage Ratio of 1.25:1, plus limits on liens and asset sales from a designated pool. These metrics, along with cross-default provisions to material debt, create ongoing discipline around leverage and asset coverage while preserving access to revolving liquidity.

8-K Event Classification

2 items: 1.01, 2.03

2 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Key Figures

New revolving credit facility size: $2.650 billion Three-year tranche: $1.325 billion Five-year tranche: $1.325 billion +4 more

7 metrics

New revolving credit facility size $2.650 billion Total commitments under new Credit Facility

Three-year tranche $1.325 billion Portion of revolving facility maturing in three years

Five-year tranche $1.325 billion Portion of revolving facility maturing in five years

Letters of credit capacity per tranche $250 million Maximum letters of credit from each tranche

Accordion maximum commitments $3.65 billion Potential increased aggregate commitments

Minimum Fixed Charge Coverage Ratio 1.25:1 Required financial covenant

Minimum Asset Coverage Ratio 1.25:1 Required asset coverage covenant

Key Terms

Minimum Fixed Charge Coverage Ratio, Minimum Asset Coverage Ratio, accordion feature, adjusted term SOFR, +2 more

6 terms

Minimum Fixed Charge Coverage Ratio financial

"These covenants include, among other things, (i) restrictions ... and (ii) the requirement for us to maintain the Minimum Fixed Charge Coverage Ratio"

Minimum Asset Coverage Ratio financial

"and (ii) the requirement for us to maintain the Minimum Fixed Charge Coverage Ratio and Minimum Asset Coverage Ratio set forth below."

accordion feature financial

"The Credit Facility contains an accordion feature under which the aggregate commitments can be increased up to $3.65 billion"

An accordion feature is a clause in a loan or financing agreement that allows a company to expand the size of a credit line or the amount of securities available under the same contract without drafting a completely new deal. Like a suitcase that can be extended to hold more items, it gives a company quick flexibility to raise extra money, which can help fund growth but may increase debt or dilute existing shareholders—so investors watch it for changes in risk and ownership.

adjusted term SOFR financial

"Borrowings under the three-year and five-year tranches bear interest at a variable rate equal to an adjusted term SOFR, or another index rate"

Adjusted term SOFR is a forward‑looking interest benchmark based on short‑term overnight Treasury repo rates, with a small extra amount added to reflect differences from legacy rates. Think of it as a quoted price that has been nudged to make payments comparable to older benchmarks; it matters to investors because it directly influences borrowing costs, bond yields and cash‑flow forecasts, affecting valuations and hedging outcomes.

standby letter of credit facility financial

"and a separate standby letter of credit facility, which remains uncommitted."

cross-default financial

"The Credit Facility contains events of default customary for similar financings, including a cross-default to other material indebtedness."

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What new credit facility did Delta Air Lines (DAL) enter into in June 2026?

Delta Air Lines entered into a new revolving credit facility totaling $2.650 billion. It replaces the company’s November 2023 credit agreement and is intended for refinancing that facility and for general corporate purposes, providing a substantial committed liquidity backstop.

How is Delta’s new $2.65 billion revolving credit facility structured?

The facility consists of a $1.325 billion three-year tranche and a $1.325 billion five-year tranche, plus an uncommitted standby letter of credit facility. Up to $250 million of each tranche can support letters of credit, offering flexibility for collateral and guarantee needs.

What financial covenants apply to Delta Air Lines’ new credit facility?

Delta must maintain a Minimum Fixed Charge Coverage Ratio of 1.25:1 and a Minimum Asset Coverage Ratio of 1.25:1. These covenants help ensure earnings and asset values remain sufficient relative to interest, aircraft rent obligations, and outstanding amounts under the facility.

Can Delta increase the size of its new revolving credit facility?

Yes. The agreement includes an accordion feature allowing total lender commitments to rise to $3.65 billion, subject to Delta’s request and certain conditions. This mechanism gives Delta potential additional borrowing capacity without negotiating a completely new facility.

What are the interest terms on Delta’s new credit facility?

Borrowings under the three-year and five-year tranches bear interest at a variable rate equal to adjusted term SOFR or another index rate, plus a specified margin. Undrawn letters of credit incur an annual fee at a rate set in the credit agreement, adding a cost for committed but unused capacity.

What events of default are associated with Delta’s new credit facility?

The facility includes customary events of default, including a cross-default to other material indebtedness. If an event of default occurs, outstanding obligations under the facility may be accelerated, making all amounts immediately due and payable, which heightens the importance of ongoing covenant compliance.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/12/2026 - 04:30 PM

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 11, 2026

DELTA AIR LINES, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-05424		58-0218548
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1030 Delta Boulevard, Atlanta, Georgia 30354-1989

(Address of principal executive offices)

Registrant’s telephone number, including area code: (404) 715-2191

Registrant’s Web site address: www.delta.com

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	DAL	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging 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. ☐

Item 1.01

Entry into a Material Definitive Agreement.

On June 11, 2026, Delta Air Lines, Inc. (“Delta,” “we,” “us” or “our”) entered into a credit agreement among Delta, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (the “Credit Facility”). The Credit Facility refinances Delta’s existing credit agreement, dated as of November 6, 2023 (as amended from time to time, the “Existing Credit Facility”), and replaces the Existing Credit Facility in its entirety. The proceeds of the borrowings under the Credit Facility will be used in part to refinance the Existing Credit Facility and for general corporate purposes. The Credit Facility was undrawn at the time we entered into it.

The Credit Facility contains a $2.650 billion revolving facility comprised of a $1.325 billion three-year tranche, a $1.325 billion five-year tranche and a separate standby letter of credit facility, which remains uncommitted. Up to $250 million of each of the three-year and the five-year tranches can also be used for the issuance of letters of credit. The Credit Facility contains an accordion feature under which the aggregate commitments can be increased up to $3.65 billion upon our request and subject to certain conditions.

Borrowings under the three-year and five-year tranches bear interest at a variable rate equal to an adjusted term SOFR, or another index rate, in each case plus a specified margin. Undrawn letters of credit under the Credit Facility will accrue a fee at a rate per annum set forth in the Credit Facility.

The Credit Facility contains affirmative, negative and financial covenants. These covenants include, among other things, (i) restrictions on our ability to place liens on, or to sell or otherwise dispose of, a designated pool of assets, and (ii) the requirement for us to maintain the Minimum Fixed Charge Coverage Ratio and Minimum Asset Coverage Ratio set forth below.

Minimum Fixed Charge Coverage Ratio⁽¹⁾			1.25:1
Minimum Asset Coverage Ratio⁽²⁾			1.25:1

⁽¹⁾	Defined as the ratio of (a) earnings before interest, taxes, depreciation, amortization and aircraft rent and other adjustments to net income to (b) the sum of gross cash interest expense (including the interest portion of our finance lease obligations) and cash aircraft rental expense (other than finance lease obligations), for the four fiscal quarters then most recently ended.
⁽²⁾	Defined as the ratio of (a) the value of the designated pool of unencumbered assets of Delta and its subsidiaries to (b) the sum of the aggregate outstanding obligations under the Credit Facility (other than cash collateralized letter of credit obligations).

The Credit Facility contains events of default customary for similar financings, including a cross-default to other material indebtedness. Upon the occurrence of an event of default, the outstanding obligations under the Credit Facility may be accelerated and become due and payable immediately.

Item 2.03

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference, insofar as it relates to the creation of a direct financial obligation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DELTA AIR LINES, INC.


	By:	/s/ Erik S. Snell
		Erik S. Snell
		Executive Vice President & Chief Financial Officer

Date: June 12, 2026

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

3 documents

Delta Air Lines sets $2.65B new credit facility

Rhea-AI Filing Summary

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