delta_8k-ex9901.htm

Delta: State of the Airline

Richard Anderson

Chief Executive Officer

Delta: Building a Better Airline

Ed Bastian

President

Delta: Building A Better Airline

Higher revenues plus solid cost performance
drive $2.6 billion year-over-year improvement in
profitability for 2010

Aggressively reducing debt using ~$2 billion
annual free cash flow

Addressing gaps in customer product,
technology, facilities and fleet is key to
generating superior revenues and returns

Note: All results exclude special items

A successful 2010 with
room to improve in 2011

Derisking the business
through balance sheet
improvements

While making long-term
investments in the
business

Meeting Our Commitments Led To Successful 2010

• Improve financial performance		Increased pre-tax income $2.6 billion and operating margin 8 points
• Complete merger integration and deliver $1.3 billion in synergies		Technology integration complete, single operating certificate achieved and $1.5 billion in synergies realized
• Reallocate our fleet across the integrated network		Matched supply with demand, improved margins and reduced fleet by 90 aircraft
• Enhance the quality of our product		Initiated $1 billion product investment, revamped delta.com, and broke ground on new JFK terminal
• Maintain best-in-class cost structure		Kept consolidated ex-fuel unit costs flat to 2009 and consistent with 2007 levels
• Use free cash flow to aggressively reduce debt		Reduced adjusted net debt from $17 billion to $15 billion
• Target 10% return on invested capital		Will earn 10% ROIC in 2010

What We Said

What We Did

December Quarter In Line With Expectations

		December Quarter 2010
Operating margin		6 - 7%
Fuel price		$2.45
Total unrestricted liquidity		$5.3 billion

		December Quarter 2010 vs. December Quarter 2009
Consolidated non-fuel unit cost		Down 3 - 4%

System capacity		Up 7%
	Domestic	Up 5%
	International	Up 11%

Note: Unit costs exclude profit sharing expense

Achieved 2010 Return on Invested Capital Target

	2009	2010
Operating Income	$0.1 billion	$2.7 billion
Market value of equity (assuming $14/share)	$11.8 billion	$11.8 billion
Adjusted net debt	$16.8 billion	$15.8 billion
Total invested capital	$28.6 billion	$27.6 billion
Return on invested capital	0.3%	9.8%

Note: All results exclude special items

Strengthen Balance
Sheet

Top-Line Profitable
Growth

2011: Building A Better Airline

Focus ~$2 billion annual free cash flow toward net
debt reduction

Invest For The Future

Higher revenues and improved productivity from
targeted investments in airport facilities,
technology and on-board products

Improved economic environment, increased
corporate business and capacity discipline to
drive solid top-line growth

Economic
Growth

Passenger
Revenue

Ancillary
Businesses

• Macro environment
continues to improve

• Global Insights projects
worldwide GDP of 3%

– U.S. growth of 2 - 3%

– Stronger growth
expected in Asia-
Pacific

• Delta’s planned system
capacity increase of 1 - 3%
in line with GDP forecasts

• Solid passenger revenue
growth driven by unit
revenue increases
combined with higher
capacity

• PRASM expected to meet
2008 levels, despite
pressure from eliminating
smaller, high-RASM aircraft

• Expecting non-passenger
revenue to grow 5 - 10%
year over year

• More than $2 billion from
unbundled fees and
services

• Double digit revenue
improvements from
Commercial Aviation
Services businesses

Revenue Environment Continues to Improve

Economic momentum, company actions combine for profitable top line growth

Passenger Revenue Momentum Continues

Passenger Unit Revenue Change

2010 vs. 2007

(9%)

(5%)

(2%)

(5%)

(9%)

flat

+1%

(4%)

Revenue
vs. 2007

Capacity
vs. 2007

10%

15%

20%

25%

1Q10

2Q10

3Q10

4Q10

2010 vs. 2009

Domestic Revenue Momentum

10%

12%

14%

16%

18%

20%

1Q10

2Q10

3Q10

4Q10

2010 vs. 2007

(13%)

(10%)

(8%)

(10%)

(13%)

(7%)

(6%)

(9%)

Revenue
vs. 2007

Capacity
vs. 2007

Domestic Passenger Unit Revenue Change

2010 vs. 2009

10%

15%

20%

25%

30%

35%

1Q10

2Q10

3Q10

4Q10

International Revenue Momentum

2010 vs. 2007

(1%)

+4%

+7%

+3%

+2%

+16%

+7%

Revenue
vs. 2007

Capacity
vs. 2007

International Passenger Unit Revenue Change

2010 vs. 2009

Pacific

Transatlantic

Latin

Domestic

Capacity

GDP

Responsible Deployment of Capacity in 2011

Additions to key restricted business markets drive international growth

Majority of international
growth from additions to
Heathrow, Haneda, Beijing
and Shanghai

Restricted Market Capacity

Projected system capacity growth of 1 - 3%

Aggressively pursuing
corporate contracts

Corporate travel
momentum

Strong Traction With Corporate Revenue

Improved customer
service and support

• Broad sector strength has brought corporate
revenues back to 2007 levels

• Notable improvements in Autos and Banking

Broad sector strength, improved competitive position driving revenue growth

• Captured 2 pt. share increase vs. pre-merger levels

• Achieved targeted merger synergies

• $300 million in new contracts post-merger

• All contracts incorporate AF/KL joint venture

• Contracts in place with all Fortune 100 companies

• Ranked #1 in 3 of 5 categories in Morgan Stanley
Annual Global Travel Survey

• Most improved airline in Business Travel News survey

• Voted Best Airline for Travel Agent Support by
Recommend Magazine

Ancillary Businesses
expected to generate 5-10%
revenue growth for 2011

Ancillary Businesses Showing Strong Performance

Commercial
Aviation Services

$1.5 billion

Cargo

$900 million

SkyMiles

$1.6 billion

Unbundled
Ticketing

$2.1 billion

Diversified revenue base reduces economic volatility

Factors Point To Solid Earnings Growth for 2011

Solid earnings
improvement for 2011

• Profitable top line growth

• System capacity growth of 1 -
3%

• Manageable non-fuel unit cost
increases of 1 - 2%

• Fuel volatility creates
headwind - however, solid
hedge book in place

• Non-operating expense
savings from debt reduction

Operating Cash Flow

Capital Expenditures

$3 - $4 billion

Total Three-Year Projection

2010 - 2012

$9 - $10 billion

Adjusted Net Debt ($B)

Free Cash Flow

~$6 - 7 billion

Strong operating cash flow covers investments in product, facilities and fleet

Committed to Aggressive Debt Reduction

International

Domestic
Mainline

Regional Aircraft

• 175 aircraft

• Average age: 11 years

• Investment to create high
quality product (flat bed
seats, in-seat video)

• No imminent fleet renewal
needs

• 542 aircraft

• Average age: 15 years

• Investment in seating
capacity and winglets to drive
increased efficiency

• Using secondary market to
backfill capacity from
retirements, but will assess
our options beyond 2012

• 626 aircraft

• Average age: 7 years

• Investment in product to
create a consistent
experience (first class, wi-fi)

• Continuing to reduce
turboprops and 50-seat jets

Addressing Our Fleet Needs

Encouraged with progress, but more work remains to achieve this goal

10 - 12% operating margin

$5 billion EBITDAR

Minimize capital reinvestment
requirements

Use cash to delever the balance
sheet

Generate sustainable 10%+ return on invested capital

Path To Improving Shareholder Returns

Delta: Transforming Our Network

Glen Hauenstein

Executive Vice President - Network and Revenue
Management

What We Fly

• Transform domestic fleet and enhance ability
to compete in key, high-demand markets

• Focus on maximum return

Where We Fly

• Win in New York

• International growth in restricted access
markets

• Utilize alliances to maximize global reach

• Monetize First Class product

• Capitalize on point-of-sale opportunities with
Joint Venture partners

• Position for increased ancillary revenues

How We Sell

Delta: Transforming Our Network

Transforming the Domestic Fleet

• Post-merger fleet optimization
allows Delta to maintain footprint
with 9% fewer aircraft

• Backfilling retired planes with
MD-90s, with 17 deliveries
scheduled for 2011

• Evolving fleet enhances Delta’s
ability to compete in key high-
demand markets due to
preferred product, larger gauge
and best-in-class cost structure

Domestic Fleet

Single Class

Regionals

1,262

1,148

December

2009

December

2011

Serving the domestic network more efficiently while providing a superior product

Avg. Seats

% of Aircraft
With First Class

92 95

57% 69%

Two Class

Regionals

Mainline

reduction

	Change
Total Rev	5%
Total Cost	(14%)
Profit	$0.5M
Margin	21 pts
Unit Cost	(15%)
ASMs	1%
Passengers	1%
Load Factor	(0.6 pts)

Market Example: Atlanta to Daytona Beach

August 2009

Flights per Day: 7

Average Gauge: 66

August 2010

Flights per Day: 5

Average Gauge: 96

Schedule Change

Results

Atlanta to Daytona Beach reduced to 4 daily flights in September 2010 with an average
gauge of 138 seats, further improving market performance

Refleeting to a Higher Gauge Improves Market
Profitability

Improving Fleet Economics and Customer
Experience

• Expanding first class seating on
more than 60% of the mainline
domestic fleet

• No reduction to economy seat pitch

• Removal of unused galleys enables
additional seating, Improving
domestic fleet profitability

• Increased first class seating

compliments other domestic

customer experience

improvements, including:

– Refurbished aircraft interiors

– Wi-Fi

– Seat-back entertainment

Delta Domestic Growth,

1st Half 2011 vs. 1st Half 2009

ATA Carrier Domestic Growth,
1st Half 2011 vs. 1st Half 2009

Increasing gauge on domestic flying

Delta’s Fleet Mix Change is Unique to the Industry

Become New
York Airline of
Choice

Implement JFK
Facility Solution

Enhance Domestic
Network

• Focus on high-value business
travelers with enhanced
SkyPriority services

• Work closely with JV
operations team to improve on
-time performance, baggage
claims and passenger
misconnects

• Establish Delta / Air France /
KLM / Alitalia Joint Venture as
the premiere alliance in JFK

• $1.2B expansion and
enhancement to Terminal 4
with inter-terminal connections
to Terminal 3

• Relocation of Terminal 3
operations to Terminal 4 in
May 2013

• Increase number of flights with
two-class product in LGA and
on JFK feeder flights

• Work towards LGA slot
transfer solution

Grow share in world’s premiere market

Win in New York

LHR

Atlanta

Detroit

New York

Minneapolis

Boston

Miami

Existing Service

Enhanced Service

New Service

London-Heathrow and Tokyo-Haneda are unique opportunities to expand in the
world’s richest business markets

Tokyo-Haneda

London-Heathrow

Los Angeles

Detroit

HND

International Growth Centered on Highly Restricted
Markets

	Delta	Delta with Partners
Destinations	363	1,071
Countries Served	67	181
Daily Flights	6,103	16,212

Global Alliances Maximize Global Reach

Capitalize on point-of-sale
opportunities with JV partners

• Leverage established relationship to expand
North Atlantic customer base

• Improve Italy share through Alitalia’s entry into
the JV

Monetize First Class Product

• Increase percentage of first class up-sells

– Currently in the test phase, with positive
results

– Full implementation scheduled for 2Q11

• Enhance delta.com shopping experience to
better capture up-sell opportunities

• Restructure fare products to better align value
of product attributes and fare paid

• New e-commerce platform increases potential
for merchandising and other revenue benefits

Position for increased ancillary
revenues

Improving Revenue Production through Innovation

What We Fly

Focus on improving
margin

• Domestic focus on
largest markets,
including New York

• International growth in
richest business
markets with limited
access

• Transform domestic
fleet, increasing gauge
and reducing unit cost

• Increase flights with
two-class product to
meet needs of
business travelers

• Increase percentage of
first class seats sold

• Capitalize on point-of-
sale opportunities with
JV partners

• Position for increased
ancillary revenues

Where We Fly

How We Sell

Delta: Transforming Our Network

Delta: Enhancing the Customer Experience

Tim Mapes

Senior Vice President - Marketing

Enhancing the Customer Experience

Safe, clean, on-time, with your bags -
and a smile

Products, services designed
for the HVC

People, technology centered
on customer needs

Greater speed, customer recognition,
productivity-enabling tools, and unconditional
protection if things go wrong

Basics done well, consistently

Professionally-trained staff and intuitive,
industry-leading technology

Enhancing the Customer Experience

At Booking

iPhone app

delta.com

Blackberry app

Merchandising

Enhancing the Customer Experience

On the Ground

Enhancing the Customer Experience

On the Ground

Sky Club lounges

Enhancing the Customer Experience

In Flight

Flat bed seats

First Class on RJ’s

Seat-back AVOD

Enhancing the Customer Experience

Customer Service & CRM

1st Bag Free

In Summary

• In order to achieve superior rates of revenue
growth, a superior ratio of “promoters” to
“detractors” (net promoters) is required

• Delta has been making targeted investments
in the elements of the customer experience
high-value customers (HVC) value most

• Every 1% of share gain from the HVC market
segment = $130 million

Delta: Unlocking Innovation with Technology

Theresa Wise

Senior Vice President - Chief Information Officer

Information Technology Integration Successfully
Complete

• Balanced speed with differentiation

• Expedited results and minimized risks with simple, disaggregated
solutions

• Completed without disruption to Delta and its Customers

• Integration was a significant focus through mid-2010

– 1,130 man-years in IT alone

– Delivery momentum will carry over to next generation solutions

Network &

Revenue

Management

Sales &

Customer

Retention

Delivering a

Premium Travel

Experience

Operational

Excellence

Ongoing Information Technology Investments

• Investments target returns related to revenue, cost efficiency,
operational excellence and customer experience

• Development pace has accelerated June-December 2010 as focus
shifted from integration to strategic business needs

• $190M of IT investments are planned for 2011 focused on key
strategic initiatives and returns of over $500M annually as projects
complete

• Strategic areas of focus:

• Further optimization of pricing and inventory management

• Tools that support further segmenting the market with flexible product
and service offerings

• Integrated technology to support world-class joint ventures and alliances

• Simplified, next-generation reservations and ticketing

• Intuitive sales and customer relationship management

• Next-generation airport agent tools that simplify processes and improve
service

• Immediate, intelligent and intuitive self-service options that empower
customers throughout each journey

• World-class service recovery during irregular operations

• Next generation operations control and flight planning

• Real-time event data, infused with customer impact, for better, more
proactive operational decisions

• Modular, nimble crew scheduling and communication

Network &

Revenue

Management

Sales &

Customer

Retention

Delivering a

Premium Travel

Experience

Operational

Excellence

Information Technology: Strategic Focus Areas

Delta: Improving Operational Performance

Steve Gorman

Chief Operating Officer

Service Recovery

• Proactive compensation at First Point of Contact

• Irregular ops service centers

• Over 1,400 handheld units

• Automated standby rebooking

• Mishandled bag notification

Reducing
Misconnections

• Decision matrix for gate hold control

• Focus on international to domestic and regional
to mainline

Customer Service
Training

• Trained over 20,000 flight attendants, 3,000
pursers and 11,000 airport agents

• Basic principles of customer service and problem
-solving

Cabin Condition &
Cleaning

• Reduced service intervals

• Outside auditors

Differentiating Overall Customer Experience

Technology

Process

– Scanner usage

– Real-time staffing and dispatching

– Dedicated transfer drivers at hubs

– Revised bag loading protocol

DOT Mishandled Baggage Rate

-23%

-19%

-16%

Baggage Claims Steadily Decreasing

Delta: Reinforcing the Financial Foundation

Hank Halter

Chief Financial Officer

• Maintaining best-in-class unit cost
structure

• Utilize business leverage to mitigate
cost increases

• Targeted investments in customer service
and operational improvements

• Limited capital investment for aircraft and
aircraft modifications

• Targeting significant operating cash
flow which will enable strategic capital
investments

• Strong free cash flow will fund further
delevering of the balance sheet

Continued Cost
Leadership

Disciplined Capital
Spending

Prudent Balance
Sheet Management

Generate sustainable returns on invested capital

Delta: Reinforcing the Financial Foundation

Note: All figures exclude special items and profit sharing

Delta has 9% cost advantage compared to network peers

• Consolidated non-fuel unit costs
flat to 2009 resulting in 9% Delta
advantage versus industry

– Fleet retirements

– Technology functionality

– Divisional productivity

– Operational efficiency

2009

2010

2010
Network Average
excluding Delta

9% Advantage

Delta

Delta Maintains Cost Advantage to Network Peers

Critical that Delta maintains its cost advantage to network peers

Best-In-Class Cost Structure is Key Strength

Consolidated September YTD 2010
Non-Fuel Unit Cost (¢)

% Change vs.
September YTD 2009

6.42

6.62

7.34

8.18

8.58

9.15

9.30

Note: All figures exclude special items and profit sharing

Delta Consolidated Non-Fuel CASM (¢)

2009

8.24

8.28

2010

2011

Expected cost pressures:

• Selling and revenue-related

• Customer and product investment

• Maintenance volume timing

Key productivity initiatives:

• Limit variable and fixed cost increases
as capacity growth resumes to
generate business leverage

• Invest in productivity-enhancing
technology

• Grow operational efficiencies

• Fleet efficiencies through retirements

Targeted investments in product, employees and maintenance

Note: All figures exclude special items and profit sharing

+ 1-2%

Manageable Cost Increases Expected for 2011

% of Fuel Consumption Hedged

Note: Hedging portfolio data as of December 3, 2010. Portfolio value is prior to premium expense.

Average Crude Call

49%

39%

23%

41%

44%

Collars

Swaps

Call options

$85

$83

$85

$86

Downside Participation

83%

72%

87%

79%

93%

At current forward curve, Delta’s 2011 portfolio valued at $365 million

Projected Fuel Price

$2.47

$2.43

$2.46

$2.48

$2.51

Managing fuel price risk and volatility

Fuel Hedging Remains Important Strategy

Balance Sheet Repair and Strengthening Underway

2010 accomplishments:

• Projected to generate operating
cash flow of $2.9 billion

• $1.3 billion capital investments

– 17 aircraft deliveries

– Technology enhancements

– Onboard product
improvements

– Facility and infrastructure
renewal

• Paid down $1.7 billion debt

– $750 million delevering
initiatives in the September
quarter

Note: Liquidity includes cash, short term investments and undrawn credit facilities

Unrestricted Liquidity
December 2010 vs. December 2009 ($B)

$5.4

$2.9

($1.3)

($1.7)

$5.3

Disciplined Capital Spending Plan

Limited aircraft capex requirements enable targeted investments in customer and
operational efficiency/productivity and maximize free cash flow

• No near-term new aircraft
deliveries

• Strategic acquisitions of cost
effective used MD-90 aircraft

• Focused investments in customer
products and productivity-
enhancing tools

• Facility and infrastructure
investments

Capital Spending ($B)

Dramatic reduction in capital spending versus prior decade

$3.3

$1.4

$1.5

$1.3

Ground/
technology

Modifications

Aircraft

Scheduled Debt Maturities ($B)

• Scheduled debt maturities, combined
with delevering initiatives, will
strengthen Delta’s balance sheet and
reduce non-operating burden

• Free cash flow is expected to fund
Delta’s scheduled debt maturities

• Delevering initiatives

– Repurchasing debt

– Open market transactions and
private purchases

– Opportunistic refinancing using
lower effective current interest
rates

Balance Sheet Strengthening and Delevering
Underway

$1.9

$2.1

$2.5

EETC

Pacific routes

Other debt / capital leases

Exit facility

Amex

Delta Continues Prudent Balance Sheet Management

Note: Liquidity includes cash, short term investments and undrawn revolving credit facilities

Unrestricted Liquidity December 2011 vs. December 2010 ($B)

Liquidity

12/31/10

Liquidity

12/31/11

Net Debt

Maturities

$5.3

($1.8)

Net Investing

($1.5)

$3.3

Cash From

Operations

Operating cash flow enables strategic capital investment and delevering

Targeting positive free cash flow of $1.8B in 2011

Adjusted Net Debt ($B)

12/31/09

12/31/12

Lower non-operating burden reduces earnings volatility and enhances cash flow

Net Interest Expense ($B)

12/31/10
$15.0

Debt reductions and delevering actions drive $500 million in earnings improvement

Debt Reduction Drives Significant Earnings
Improvement

Targeting Sustainable Returns on Invested Capital

Building a Better
Airline

Transforming Our
Network

Enhancing the
Customer Experience

Unlocking Productivity
with Technology

Creating a Great
Place to Work

Reinforcing the
Financial Foundation

Improving Operational
Performance

Non-GAAP Financial Measures


We sometimes use information that is derived from our Condensed Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Certain of this information is considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. The non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

Delta is unable to reconcile certain forward-looking projections to GAAP, including (1) projected free cash flow, (2) earnings before interest, taxes, depreciation, amortization and aircraft rent (EBITDAR) and (3) consolidated non-fuel cost per available seat mile (CASM), as the nature or amount of special items cannot be estimated at this time.

Delta excludes special items because management believes the exclusion of these items is helpful to investors to evaluate the company’s recurring operational performance.

Delta presents net investing activities because management believes this metric is helpful to investors to evaluate the company’s investing activities.

Delta presents net debt maturities because management believes this metric is helpful to investors to evaluate the company’s debt-related activities.

Delta uses adjusted total debt, including aircraft rent, in addition to long-term adjusted debt and capital leases, to present estimated financial obligations. Delta reduces adjusted total debt by cash, cash equivalents and short-term investments, resulting in adjusted net debt, to present the amount of additional assets needed to satisfy the debt.

Delta presents return on invested capital (ROIC) as management believes it is helpful to investors in assessing the company's ability to generate returns using its invested capital. ROIC represents operating income excluding special items divided by the sum of average market value of equity and average adjusted net debt.

Delta presents consolidated CASM excluding aircraft fuel and related taxes because management believes the volatility in fuel prices impacts the comparability of year-over-year financial performance.

Consolidated CASM excludes ancillary businesses not associated with the generation of a seat mile. These businesses include aircraft maintenance and staffing services Delta provides to third parties, Delta’s vacation wholesale operations and its dedicated freighter operations, which we discontinued on December 31, 2009.

Delta excludes profit sharing expense from consolidated CASM because management believes the exclusion of this item provides a more meaningful comparison of the company’s results to the airline industry and prior year results.

Delta presents free cash flow because management believes this metric is helpful to investors to evaluate the company’s ability to generate cash.

Delta presents EBITDAR as management believes it is helpful to investors in utilizing EBITDAR as a proxy for operating cash flow on a period over period basis.

Pre-Tax Income


	Full Year 2010		Full Year
(in millions)	Projection		2009
Pre-tax income (loss)	$	0.7	$	(1.6	)
Items excluded:
Loss on extinguishment of debt		0.4		0.1
Restructuring and merger-related items		0.4		0.4

Pre-tax income (loss) excluding special items	$	1.5	$	(1.1	)

Operating Income & Margin


	Full Year 2010		Full Year
(in billions)	Projection		2009
Operating income (loss)	$	2.3	$	(0.3	)
Item excluded:
Restructuring and merger-related items		0.4		0.4

Operating income excluding special items	$	2.7	$	0.1

Total operating revenue	$	31.8	$	28.1

Operating margin excluding special items		8.5%		0.3%

Non-Fuel CASM



	Full Year 2010			Full Year			Nine Months Ended September 30,
	Projection			2009			2010			2009
CASM		12.66	¢		12.32	¢		12.55	¢		12.17	¢
Items excluded:
Ancillary businesses		(0.27	)		(0.31	)		(0.27	)		(0.32	)
Profit sharing		(0.14	)		-			(0.16	)		-
Restructuring and merger-related items		(0.19	)		(0.18	)		(0.19	)		(0.16	)
Aircraft fuel and related taxes		(3.82	)		(3.55	)		(3.75	)		(3.53	)
CASM excluding certain items		8.24	¢		8.28	¢		8.18	¢		8.16	¢

Net Investing Activities


	Full Year 2010
(in billions)	Projection
Net cash used in investing activities (GAAP)	$	1.9
Items excluded:
Purchase of short-term investments, net		(0.6	)

Net investing activities	$	1.3

Net Debt Maturities


	Full Year 2010
(in billions)	Projection
Net cash used in financing activities (GAAP)	$	2.6
Items excluded:
Pay down of revolving credit facility		(0.9	)

Net debt maturities	$	1.7

Adjusted Net Debt


	December 31, 2010
(in billions)	Projection					September 30, 2010					June 30, 2010					March 31, 2010
Debt and capital lease obligations	$	15.1				$	15.4				$	15.8				$	16.9
Plus: unamortized discount, net from purchase accounting and fresh start reporting		0.7					0.7					1.0					1.1
Adjusted debt and capital lease obligations			$	15.8				$	16.1				$	16.8				$	18.0
Plus: 7x last twelve months' aircraft rent				2.8					3.0					3.2					3.3
Adjusted total debt				18.6					19.1					20.0					21.3
Less: cash, cash equivalents and short-term investments				(3.6	)				(3.9	)				(4.4	)				(4.9	)
Adjusted net debt			$	15.0				$	15.2				$	15.6				$	16.4

(in billions)	December 31, 2009					September 30, 2009					June 30, 2009					March 31, 2009					December 31, 2008
Debt and capital lease obligations	$	17.2				$	17.7				$	16.6				$	16.6				$	16.6
Plus: unamortized discount, net from purchase accounting and fresh start reporting		1.1					1.2					1.3					1.4					1.5
Adjusted debt and capital lease obligations			$	18.3				$	18.9				$	17.9				$	18.0				$	18.1
Plus: 7x last twelve months' aircraft rent				3.4					3.4					3.4					3.5					3.4
Adjusted total debt				21.7					22.3					21.3					21.5					21.5
Less: cash, cash equivalents and short-term investments				(4.7	)				(5.5	)				(4.9	)				(4.5	)				(4.5	)
Adjusted net debt			$	17.0				$	16.8				$	16.4				$	17.0				$	17.0