Originally Posted by
emma dog
I'm bored today and looked up the 2023 Annual Report. I'm not an accountant or financial person, so...
I can't find anything that provides direct expense information. However, pg. 39 shows "Other Revenue," and the table says the Misc column is mostly composed of lounge access... which came in at $1.1B for 2023.
Note 8 discusses airport redevelopment. At the bottom of pg 80, they discuss the $1.6B renovation of JFK, which mentions 10 gates, a club, and the DeltaOne lounge. Interestingly, because it's leased space, Delta says they don't control the underlying assets therefore don't include the project asset or obligation on their balance sheet. All of the airport leases, including for maintenance facilities in ATL, are consolidated onto pg. 82. I don't see any breakout by airport, nor do I see anything that would indicate contract terms for the bartenders (since they work for the catering companies) or other employees.
So the answer is... we'll never know.
Wow - that's pretty good insight.
As they taught us in business school, "always look the footnotes."
With that said, as you note, lounges are a combination of CapEx (building them out, kiosks/TV/machinery, renovations, etc.) and OpEx (which is a ton of things - labor, food, beverages, rent, etc.).