-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T/LuzelIfNDeOwew0UZs/2hfgeo8OA0Be4f+g8nuXMzvrhiwm7uAraauKpP4alQY 1GrFQ3Mx0nTD04rL5vKQsg== 0000950144-02-000841.txt : 20020414 0000950144-02-000841.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950144-02-000841 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020131 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELTA AIR LINES INC /DE/ CENTRAL INDEX KEY: 0000027904 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, SCHEDULED [4512] IRS NUMBER: 580218548 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05424 FILM NUMBER: 02522907 BUSINESS ADDRESS: STREET 1: HARTSFIELD ATLANTA INTL AIRPORT STREET 2: 1030 DELTA BLVD CITY: ATLANTA STATE: GA ZIP: 30320-6001 BUSINESS PHONE: 4047152600 MAIL ADDRESS: STREET 1: 1030 DELTA BLVD STREET 2: DEPT 971 CITY: ATLANTA STATE: GA ZIP: 30320-6001 FORMER COMPANY: FORMER CONFORMED NAME: DELTA AIR CORP DATE OF NAME CHANGE: 19660908 8-K 1 g74008e8-k.txt DELTA AIR LINES, INC. 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): January 31, 2002 DELTA AIR LINES, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-5424 58-0218548 - ---------------------------- ------------------------ ------------------ (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) Hartsfield Atlanta International Airport, Atlanta, Georgia 30320 ---------------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: (404) 715-2600 Not Applicable -------------- (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE Financial Results for the Quarter and the Year ended December 31, 2001 Delta Air Lines, Inc. (Delta) will today issue a press release reporting financial results for the quarter and the year ended December 31, 2001. The press release is attached as Exhibit 99.1. Delta also will be providing supplemental data for the quarter ended December 31, 2001 to certain analysts. The supplemental data is attached as Exhibit 99.2. Forward Looking Statements Statements in this Form 8-K including exhibits, oral statements made during our webcast conference call on January 31, 2002, and statements otherwise made by Delta or on Delta's behalf which are not historical facts, including statements about our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. Factors that could cause these differences include, but are not limited to: 1. the many effects on Delta and the airline industry from the terrorist attacks on the United States on September 11, 2001, including the following: a. the adverse impact of the terrorist attacks on the demand for air travel; b. the change in our operations and higher costs resulting from new airline security directives, including the Aviation and Transportation Security Act; c. the availability and cost of war risk and other insurance for Delta and for other critical participants in the air travel industry, such as the companies providing security services at airports; d. the extent to which Delta receives additional financial assistance under the Air Transportation Safety and System Stabilization Act; e. the credit downgrades of Delta and other airlines by Moody's Investors Service and Standard & Poor's, and the possibility of additional downgrades, to the extent it makes it more difficult and/or more costly for us to obtain financing; f. potential declines in the values of the aircraft in Delta's fleet or Delta's facilities and related assets impairment charges; g. additional terrorist activity and/or war; 2. general economic conditions, both in the United States and in our markets outside the United States, including the extent of the weakening in the US economy and the related decline in business and leisure travel; 3. competitive factors in our industry, such as mergers and acquisitions, the airline pricing environment, international alliances, codesharing programs, and capacity decisions by competitors; 4. outcomes of negotiations on collective bargaining agreements and other labor issues, including a pending union representation election among Delta's flight attendants and union organizing efforts among other employee groups; 5. changes in the availability or cost of aircraft fuel or fuel hedges; 6. disruptions to operations due to adverse weather conditions and air traffic control-related constraints; 7. fluctuations in foreign currency exchange rates; 8. actions by the United States or foreign governments, including the Federal Aviation Administration and other regulatory agencies; 9. the willingness of customers to travel generally, and with us specifically, which could be affected by factors such as our and the industry's safety record, and; 10. the outcome of our litigation. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of January 31, 2002, and which we have no current intention to update. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) EXHIBITS Exhibit 99.1 Press Release dated January 31, 2002 titled "Delta Reports Fourth Quarter, Full Year 2001 Results" Exhibit 99.2 Data sheet dated January 31, 2002 titled "Supplemental December 2001 Quarter Data" SIGNATURE 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/ Edward H. Bastian ----------------------------------- Edward H. Bastian Senior Vice President - Finance and Controller Date: January 31, 2002 EXHIBIT INDEX
Exhibit Number Description - -------------- ----------- Exhibit 99.1 Press Release dated January 31, 2002 titled "Delta Reports Fourth Quarter, Full Year 2001 Results" Exhibit 99.2 Data sheet dated January 31, 2002 titled "Supplemental December 2001 Quarter Data"
EX-99.1 3 g74008ex99-1.txt PRESS RELEASE, DATED JANUARY 31, 2002 EXHIBIT 99.1 CONTACT: Corporate Communications Investor Relations 404/715-2554 404/715-6679 DELTA REPORTS FOURTH QUARTER, FULL YEAR 2001 RESULTS ATLANTA, Jan. 31, 2002 -- Delta Air Lines (NYSE:DAL) today reported fourth quarter and full year 2001 results. The highlights are listed below: - - DELTA REPORTS FOURTH QUARTER LOSS OF $486 MILLION, OR $3.97 LOSS PER SHARE, EXCLUDING UNUSUAL ITEMS. ON THE SAME BASIS, FULL YEAR 2001 NET LOSS IS $1.0 BILLION, OR $8.46 LOSS PER SHARE. - - DELTA REPORTS FOURTH QUARTER LOSS OF $734 MILLION, OR $5.98 LOSS PER SHARE, INCLUDING UNUSUAL ITEMS. ON THE SAME BASIS, FULL YEAR 2001 NET LOSS IS $1.2 BILLION, OR $9.99 LOSS PER SHARE. - - DELTA MAINTAINS ONE OF THE INDUSTRY'S STRONGEST BALANCE SHEETS, ENDING 2001 WITH A CASH BALANCE OF $2.2 BILLION. - - DELTA TAKES AGGRESSIVE STEPS TO CONTROL CAPACITY, MANAGE LIQUIDITY AND REDUCE COSTS TO POSITION ITSELF AS AN INDUSTRY LEADER. Delta Air Lines reported a net loss of $486 million and a loss per share of $3.97 for the December 2001 quarter, excluding unusual items, as described below. This compares to net income of $79 million and diluted earnings per share of $0.60 for the December 2000 quarter. Including unusual items, the December 2001 quarter net loss and loss per share were $734 million and $5.98, respectively, compared to net income of $18 million and diluted earnings per share of $0.12 in the December 2000 quarter. The results are in line with previous announcements concerning fourth quarter expectations. "These results clearly reflect a year of challenges unlike any we've seen in the history of aviation," said Leo F. Mullin, chairman and chief executive officer. "Throughout these difficult times, Delta's team responded quickly, aggressively and strategically. As a result of our consistent focus on disciplined capacity control, a competitive network, strong capital infrastructure, and a motivated, primarily non-union employee base, Delta is extremely well-positioned to respond quickly and fully to the coming economic recovery." December 2001 quarter operating revenues declined 28.7 percent. Excluding unusual items, unit costs increased 1.6 percent, or 3.9 percent on a fuel price neutralized basis. Total operating expenses for the December 2001 quarter, excluding unusual items, decreased 10.0 percent. System available seat miles decreased 11.4 percent. However, after adjusting for reduced flying by some Delta pilots in December 2000, mainline capacity was down 15.0 percent for the quarter. Load factor for the quarter was 63.6 percent compared to 68.9 percent for the same period a year ago. Delta ended the quarter with a completion factor of 98.8 percent versus 95.4 percent during the same period last year. Delta's fuel hedging program saved Delta $22 million, pretax for the quarter. Delta has hedged 73 percent of its expected jet fuel requirements in the March 2002 quarter at an average price of $0.61 per gallon. For the full year 2001, Delta reported a net loss of $1.0 billion and loss per share of $8.46, excluding unusual items. Including unusual items, Delta reported a net loss of $1.2 billion and loss per share of $9.99. Delta's operating revenues declined 17.1 percent from calendar year 2000. Delta's unit cost, excluding unusual items, increased 4.8 percent, or 4.6 percent on a fuel price neutralized basis from the same period last year. "We managed through this most challenging period responsibly and aggressively," said M. Michele Burns, executive vice president and chief financial officer. "In this environment, our financial strategy continues to focus on capacity discipline, cost control and cash preservation." UNUSUAL ITEMS During the December 2001 quarter, unusual items, net of tax, totaled a $248 million charge compared to a charge of $61 million for the same period last year. For calendar year 2001, unusual items, net of tax, totaled a $189 million charge compared to a charge of $69 million for the full year 2000. See below for a detailed listing of unusual items for the December 2001 quarter and calendar year 2001.
IMPACT OF UNUSUAL ITEMS DECEMBER QUARTER 2001 NET OF TAX ($MM) EARNINGS PER SHARE --------------- ------------------ Net Loss Excluding Unusual Items $(486) $(3.97) Unusual Items: Stabilization Act compensation 288 2.34 Gain on sale of SkyWest 66 0.53 SFAS 133 15 0.12 Severance and early retirement (309) (2.51) Fleet impairment (188) (1.53) Discontinued capital projects and (90) (0.73) contracts Surplus pilots and grounded aircraft (19) (0.15) Other (11) (0.08) ---- ----- Total Unusual Items $(248) $(2.01) ----- ------ Net Loss Including Unusual Items $(734) $(5.98)
IMPACT OF UNUSUAL ITEMS CALENDAR YEAR 2001 NET OF TAX ($MM) EARNINGS PER SHARE --------------- ------------------ Net Loss Excluding Unusual Items $(1,027) $(8.46) Unusual Items: Stabilization Act compensation 392 3.18 Net gain on sale of investments 73 0.59 SFAS 133 41 0.33 Severance and early retirement (351) (2.85) Fleet impairment (225) (1.83) Discontinued capital projects and (90) (0.73) contracts Surplus pilots and grounded aircraft (19) (0.15) Other (10) (0.07) ---- ----- Total Unusual Items $ (189) $(1.53) ------- ------ Net Loss Including Unusual Items $(1,216) $(9.99)
FINANCIAL POSITION During the December 2001 quarter, excluding unusual items, net income fell by $565 million resulting from a 28.7 percent drop in revenue. This decline in revenue was mitigated by a 10.0 percent reduction in operating expense, excluding unusual items, achieved through headcount reductions, disciplined capacity reductions and discretionary spending reductions. In the non-unionized workforce, more than 95 percent of Delta's targeted headcount reductions were achieved through voluntary programs. Furthermore, Delta was able to react to the change in the demand environment by cutting scheduled capacity while maintaining the overall strategic value of the network. These efforts and reductions in discretionary spending enabled Delta to decrease operating expenses for the quarter. During the quarter, Delta recognized $288 million, net of tax from the U.S. Government under the Air Transportation Safety and System Stabilization Act that compensated Delta for a portion of its direct and incremental losses resulting from the Sept. 11 terrorist attacks. "The U.S. Government quickly recognized the immediate impact of Sept. 11 on the industry; we are extremely grateful for the prompt implementation of the Stabilization Act," said Mullin. Delta expects to receive up to $412 million, net of tax under this program. Delta also took actions during the December 2001 quarter to increase its liquidity. These actions included entering into a new short term $625 million secured credit facility. In addition, Delta sold a private placement of $730 million of European Enhanced Equipment Trust Certificates. As of Dec. 31, Delta's cash balance was $2.2 billion. "Facing a serious decrease in cash flow, we preserved liquidity through resourceful financing efforts in what is an extremely difficult capital markets environment," said Burns. SECURITY AND SAFETY During the December quarter, Delta worked with the Federal Government to create a balanced security program that will enhance the level of safety and security for the traveling public, while restoring the convenience of travel. "Providing safe, secure air travel is Delta's most important responsibility to our customers, family members, friends, and employees. We are constantly assessing ways that safety and security can be enhanced through methods that will also minimize the hassle-factor for our customers," said Mullin. Delta is firmly committed to implementing its security obligations and has worked diligently with the Federal Government to undertake the following security procedures: carrying Federal Air Marshals on an increased number of flights, fortifying cockpit doors, conducting random physical searches, restricting carry-on baggage allowances, conducting comprehensive aircraft searches, and using advanced technology and explosive detection systems (EDS). Delta also supports the development of Trusted Passenger Programs and United States Senator Max Cleland's proposed legislation to make willful violations of airport security a federal criminal offense. During 2001, Delta excelled in its corporate safety performance. For the first time in three years, Delta improved every safety metric in 2001, most by a wide margin. "The dedication and professionalism that Delta employees bring to this commitment is clearly reflected in Delta's excellent record for safety and compliance in 2001," said Frederick W. Reid, Delta's president and chief operating officer. NETWORK HIGHLIGHTS As a result of the events of Sept. 11, Delta announced a reduction in its mainline scheduled capacity, effective Nov. 1, 2001. These capacity reductions will remain in force into the first quarter of 2002. The pace of passenger revenue recovery will determine Delta's mainline capacity plans for the remainder of the year. Delta's commitment to its regional jet strategy has not wavered. Through the fourth quarter, Delta continued to rebuild from the effects of the Comair strike. Comair's service was fully restored to its pre-strike levels during January 2002. Delta's industry-leading regional jet program provides the opportunity to supplement frequencies and service to key cities. The regional jets also provide the flexibility of adjusting for demand changes within the marketplace. While focused on responding and recovering from the crisis of Sept. 11, Delta never lost sight of its strategic alliance goals. During the December 2001 quarter, Delta welcomed Alitalia as its newest SkyTeam partner. Delta also increased its network by adding two new codesharing partners: Aeroliteral, to strengthen Delta's service between the United States and Mexico; and SNCF-French Rail to provide rail service from Charles de Gaulle International Airport to eight destinations in France. Codesharing service with SkyTeam partner, Air France, was expanded to include eight new destinations in Europe, Africa and Asia, and with British European from the United Kingdom to several destinations in Europe. On Jan. 18, 2002, Delta and its European SkyTeam partners Air France, Alitalia, and CSA Czech Airlines received final approval from the U.S. Department of Transportation for antitrust immunity that will permit the carriers to implement a more integrated airline alliance. "DOT's approval significantly increases the strength of Delta's international network and the level of service and choice we bring to our customers," said Mullin. "In addition, the new opportunities open to SkyTeam as a result of the approval greatly enhance our competitive position among the world's international alliances, especially in light of the decision by American Airlines/British Airways to abandon their quest for antitrust immunity as part of oneworld." FLEET Delta's mainline fleet plan is now complete for 2002 and 2003. The changes, previously announced, embodied in this plan deliver both operational and cost efficiencies. The new 2002 and 2003 plan accelerates the retirement of Delta's entire Boeing 727 fleet by two years, defers delivery of 39 aircraft and commits to only 13 aircraft deliveries. Delta's regional jet fleet plan for 2002 has not changed. Delta will take delivery of 58 regional jets for ASA and Comair in 2002. Details of Delta's new fleet plan are attached. CUSTOMER SERVICE During the quarter, Delta leveraged its technology strengths and continued its focus on customer service. With heightened security measures and the resulting longer wait times, Delta took action to provide its customers with up-to-the-minute flight schedule information and gate assignments by out-bound paging, e-mail and telephone. Delta led the industry in providing a customer wait time feature on its Web site, delta.com. Passengers can check estimated peak and non-peak wait times for curbside check-in, ticket counters and security check points at approximately 140 airports. Customer feedback for these features has been highly positive. Delta.com recently ranked No. 1 in online customer approval in the Airline Web Site Tracking Study conducted by the NPD Group, Inc. Delta also increased the number of security lanes at Boston, New York La Guardia and Newark airports. Expedited service lanes have been added for Delta's SkyMiles Medallion passengers and virtual check-in is available via delta.com. In addition, Delta plans to install 300 additional kiosks during 2002, bringing the total number of kiosks to 400 systemwide. BUILDING FOR THE FUTURE The year 2002 will be a year of recovery for the industry. Delta will continue its aggressive management approach in assessing the revenue environment, implementing cost management practices and preserving its liquidity position. The company's financial structure, flexible balance sheet and strong employee base will enable Delta to invest appropriately in the business, thus solidifying Delta's ability to emerge as an industry leader. Delta will host a webcast to discuss its quarterly earnings today, Jan. 31, at 10:00 a.m. Eastern Standard Time. The webcast is available via the World Wide Web at www.delta.com/inside/investors/index.jsp. Delta Air Lines, the world's second largest carrier in terms of passengers carried and the leading U.S. airline across the Atlantic, offers more than 5,350 flights each day to 414 destinations in 73 countries on Delta, Delta Express, Delta Shuttle, Delta Connection carriers and Delta's worldwide partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. For more information, please go to delta.com. Statements in this news release which are not historical facts, including statements regarding our beliefs, expectations, estimates, intentions or strategies for the future, may be "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions, and expectations reflected in or suggested by the forward-looking statements. For a list of factors that could cause these differences, see the Form 8-K that we filed today. We have no current intention to update our forward-looking statements. ### DELTA AIR LINES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; In Millions, Except Share Data)
Three Months Twelve Months Ended Ended December 31, December 31, 2001 2000 2001 2000 (unaudited) (unaudited) (audited) Operating Revenues: Passenger $ 2,639 $ 3,751 $ 12,964 $ 15,657 Cargo 119 156 506 583 Other, net 105 109 409 501 Total operating revenues 2,863 4,016 13,879 16,741 Operating Expenses: Salaries and related costs 1,422 1,515 6,124 5,971 Aircraft fuel 368 540 1,817 1,969 Depreciation and amortization 310 307 1,283 1,187 Contracted services 258 263 1,016 966 Landing fees and other rents 192 188 780 771 Aircraft maintenance mat'ls and outside repairs 205 173 801 723 Aircraft rent 180 187 737 741 Other selling expenses 120 166 616 688 Passenger commissions 118 152 540 661 Passenger service 101 121 466 470 Asset writedowns and other non-recurring items 991 -- 1,119 108 Stabilization Act compensation (463) -- (634) -- Other 183 226 816 849 Total operating expenses 3,985 3,838 15,481 15,104 Operating Income (Loss) (1,122) 178 (1,602) 1,637 Other Income (Expense): Interest expense, net (128) (63) (410) (257) Net gains from sale of investments 108 -- 127 301 Fair value adjustments of SFAS 133 derivatives 24 (92) 68 (159) Misc. income(expense), net (17) (5) (47) 27 (13) (160) (262) (88) Income (Loss) Before Income Taxes (1,135) 18 (1,864) 1,549 Income Tax Benefit (Provision) 401 -- 648 (621) Net Income (Loss) Before Cumulative Effect of Change In Accounting Principle (734) 18 (1,216) 928
Cumulative Effect of Change in Accounting Principle -- -- -- (100) Net Income (Loss) (734) 18 (1,216) 828 Preferred Stock Dividends (4) (3) (14) (13) Net Income (Loss) Available To Common Shareowners $ (738) $ 15 $ (1,230) $ 815 Diluted Earnings (Loss) Per Share Before Cumulative Effect of Change in Acctg Principle $ (5.98) $ 0.12 $ (9.99) $ 7.05 Diluted Earnings (Loss) Per Share $ (5.98) $ 0.12 $ (9.99) $ 6.28 Net Income (Loss) Excluding Unusual Items* $ (486) $ 79 $ (1,027) $ 897 Diluted Earnings (Loss) Per Share Excluding Unusual Items* $ (3.97) $ 0.60 $ (8.46) $ 6.81 Operating Margin -39.2% 4.4% -11.5% 9.8% Weighted Average Shares Used In Diluted Income (Loss) Per Share Computation (000) 123,247 124,364 123,119 131,002 STATISTICAL SUMMARY: Revenue Psgr Miles (millions) 21,723 26,530 101,717 112,998 Available Seat Miles (millions)(1) 34,141 38,523 147,837 154,974 Passenger Mile Yield (cents) 12.14 14.14 12.74 13.86 Operating Revenue Per Available Seat Mile (cents) 8.38 10.43 9.39 10.80 Operating Cost per Available Seat Mile (cents) 11.67 9.96 10.47 9.75 Operating Cost Per Available Seat Mile - Excluding (2) 10.12 9.96 10.14 9.68 Passenger Load Factor (percent) 63.63 68.87 68.80 72.91 Breakeven Passenger Load Factor 90.69 65.60 77.31 65.29 Breakeven Passenger Load Factor - Excluding (2) 77.96 65.61 74.73 64.82 Psgrs Enplaned (thousands) 23,440 28,492 104,943 119,930 Revenue Ton Miles (millions) 2,520 3,142 11,752 13,058 Cargo Ton Miles (millions) 362 496 1,583 1,855 Cargo Ton Mile Yield (cents) 32.71 31.53 31.95 31.46 Fuel Gallons Consumed (millions) 593 721 2,649 2,922 Average Price Per Fuel Gallon, net of hedging gains (cents) 62.04 74.99 68.60 67.38 Number of Aircraft in Fleet at End of Period 814 831 814 831 Average Full-Time Equivalent Employees 78,700 83,500 82,200 82,100
(1) As a result of a pilot strike, Comair suspended its operations between March 26, 2001 and July 1, 2001. Accordingly, Comair had no Available Seat Miles (ASMs)during this period. Also, immediately following the September 11 terrorist attacks, the FAA closed U.S. airspace for several days. As a result, Delta, Comair and ASA had no ASMs during this period. (2) Statistics presented exclude unusual items discussed below. Unusual Items for 2001 include: Three months ended December 2001 - fair value adjustments related to SFAS 133 derivatives; a net gain on the sale of investments; charges resulting from the September 11, 2001 terrorist attacks including: fleet impairments, severance and early retirement, discontinued capital projects and contracts; current costs of surplus pilots and grounded aircraft, and Stabilization Act compensation related to the September 11, 2001 terrorist attacks. Twelve months ended December 2001 - items discussed above for the December 2001 quarter; fair value adjustments related to SFAS 133 derivatives for the March, June and September, 2001 quarters; a charge related to Delta's decision to accelerate the retirement of nine Boeing 737 aircraft; a gain on the sale of our investment in Equant, N.V.; an estimated charge for severance costs related to our announcement to reduce staffing; and Stabilization Act compensation related to the September 11, 2001 terrorist attacks. Unusual Items in 2000 include: Three months ended December 2000 - fair value adjustments related to SFAS 133 derivatives. Twelve months ended December 2000 - items discussed above for the December 2000 quarter; a special charge related to Delta's early retirement medical option; gains on Delta's equity investments in priceline.com; costs related to our decision to close our Pacific gateway in Portland, Oregon; the cumulative effect of the adoption of SFAS 133, as well as the fair value adjustment related to SFAS 133 for the September 2000 quarter; and a one-time, non-cash gain from our investment in Worldspan. SELECTED BALANCE SHEET DATA:
December 31, December 31, 2001 2000 (unaudited) (audited) Cash and cash equivalents $ 2,210 $ 1,364 Total Assets 23,603 21,931 Total debt, including current maturities and short-term obligations 9,304 5,859 Capital lease obligations, short-term and long-term 99 139 Total shareowners' equity 3,769 5,343
AIRCRAFT FLEET Our aircraft fleet, orders, options and rolling options at December 31, 2001 are summarized in the following table. Options have scheduled delivery slots. Rolling options replace options and are assigned delivery slots as options expire or are exercised.
CURRENT FLEET ----------------------------------------------------- ---------------- AIRCRAFT TYPE OWNED CAPITAL OPERATING TOTAL AVERAGE AGE ------------- LEASE LEASE ----------------------------------------------------- ---------------- B-727-200 40 -- 7 47 22.5 B-737-200 4 42 6 52 16.8 B-737-300 3 -- 20 23 15.3 B-737-800 67 -- -- 67 1.3 B-757-200 80 -- 41 121 10.3 B-767-200 15 -- -- 15 18.6 B-767-300 4 -- 24 28 11.9 B-767-300ER 51 -- 8 59 5.9 B-767-400 18 -- -- 18 1.0 B-777-200 7 -- -- 7 2.3 MD-11 8 -- 7 15 7.9 MD-88 63 -- 57 120 11.5 MD-90 16 -- -- 16 6.1 EMB-120 41 -- 7 48 11.3 ATR-72 4 -- 15 19 7.5 CRJ-100/200 38 -- 121 159 3.3 TOTAL 459 42 313 814 9.1 ===================================================== ================
DELIVERY IN CALENDAR YEAR ENDING -------------------------- AIRCRAFT ON FIRM ORDER 2002 2003 ---------------------- -------------------------- B-737-600/700/800 4 5 B-757-200 0 0 B-767-300/300ER 0 0 B-767-400 3 0 B-777-200 1 0 CRJ-100/200 40 20 CRJ-700 20 14 TOTAL 68 39 ==========================
DELIVERY IN CALENDAR YEAR ENDING --------------------------- ROLLING AIRCRAFT ON OPTION 2002 2003 OPTIONS ------------------ --------------------------- ------------ B-737-600/700/800 0 0 263 B-757-200 0 8 60 B-767-300/300ER 0 0 10 B-767-400 0 2 8 B-777-200 0 2 19 CRJ-100/200 0 24 0 CRJ-700 0 0 0 TOTAL 0 36 360 =========================== ============
EX-99.2 4 g74008ex99-2.txt DATA SHEET, DATED JANUARY 31, 2002 EXHIBIT 99.2 January 31, 2002 SUPPLEMENTAL DECEMBER 2001 QUARTER DATA In an effort to make more efficient use of the time allocated for this morning's conference call, we are providing detailed variance information on major expense items to assist you in analyzing Delta's December 2001 quarterly results. This information is intended to supplement that provided in the conference call (scheduled for 10:00 a.m. Eastern Time) and in the earnings release. December quarter revenue performance will be discussed in the conference call. DECEMBER 2001 QUARTER OPERATING EXPENSES VERSUS DECEMBER 2000 QUARTER - - Operating expenses, excluding asset writedowns and other special items, decreased 10.0% to $3.4 billion on an 11.4% decrease in capacity. Total operating expenses for the quarter increased 3.8% to $4.0 billion. - - Excluding asset writedowns and other special items, Delta's total unit cost increased 1.6% to 10.12 cents from 9.96 cents. Keeping fuel costs constant year over year, unit costs increased 3.9% to 10.35 cents from 9.97 cents. - - Salaries and related expense decreased 6.1% primarily as a result of staffing reductions across all workgroups. - - Total fuel expense decreased 31.9%. Total gallons consumed fell 17.8% primarily due to capacity reductions and fleet simplification. Delta's average fuel price per gallon, including hedge proceeds, fell 17.3% to 62.04 cents from 74.99 cents. - - Depreciation and amortization increased 1.0% due to the acquisition of new aircraft since December 31, 2000, offset by adjustments related to impaired and retired aircraft. - - Aircraft maintenance increased 18.5% primarily due to timing of engine repairs and increased volume at DCI. - - Other selling expenses decreased 27.7% due primarily to lower volumes of credit card transactions resulting from revenue and capacity reductions, as well as a reduction in advertising costs. - - Passenger commissions declined by 22.4% due to lower passenger demand and the continued development of lower cost distribution channels such as Delta.com. - - Passenger service decreased 16.5% due to lower volumes and reduced catering costs. - - Interest expense, net increased $65 million as a result of higher levels of debt outstanding. - - Net gains from sale of investments includes a $111 million gain on the sale of our investment in SkyWest. - - Miscellaneous expense, net increased $12 million primarily due to lower income from our equity investment in Worldspan. -----END PRIVACY-ENHANCED MESSAGE-----