EX-99.1 2 delta_8k-ex9901.htm PRESS RELEASE

Exhibit 99.1

 

DELTA 2007 logo

 

 

 

CONTACT:Corporate Communications
404-715-2554
news archive at news.delta.com

Investor Relations
404-715-2170

 

 

Delta Reports Financial and Operating Performance for June 2013

 

ATLANTA, July 2, 2013 – Delta Air Lines (NYSE: DAL) today reported financial and operating performance for June 2013.

 

Consolidated passenger unit revenue (PRASM) for the month of June increased 1.0% year over year, led by gains in the trans-Atlantic and Latin entities, which were partially offset by 1 point of system PRASM pressure from yen devaluation.

 

Delta completed 99.6% percent of its flights in June and ran an on-time arrival rate of 76.0% percent.

 

The company’s financial and operating performance is detailed below.

 

 

Preliminary Financial and Operating Results

 

June Consolidated PRASM change year over year 1.0%
Projected June quarter fuel price per gallon, adjusted $3.00 - $3.05
June Mainline completion factor 99.6%
June On-time performance (preliminary DOT A14) 76.0%

 

Note: Fuel price includes taxes, transportation, settled hedges, hedge premiums and refinery impact, but excludes mark to market adjustments on open hedges.

 

 

Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2013 World’s Most Admired Companies airline industry list, topping the list for the second time in three years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 330 destinations in 65 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry’s leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Additional information is available on delta.com, Twitter @Delta, Google.com/+Delta and Facebook.com/delta.

 

 

Forward Looking Statements

 

Statements in this press release that are not historical facts, including statements regarding 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. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements.  These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the availability of aircraft fuel; the impact of posting collateral in connection with our fuel hedge contracts; the impact of significant funding obligations with respect to defined benefit pension plans; the impact that our indebtedness may have on our financial and operating activities and our ability to incur additional debt; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; interruptions or disruptions in service at one of our hub airports; our dependence on technology in our operations; disruptions or security breaches of our information technology infrastructure; the ability of our credit card processors to take significant holdbacks in certain circumstances; the possible effects of accidents involving our aircraft; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; failure or inability of insurance to cover a significant liability at the Trainer refinery; the impact of environmental regulation on the Trainer refinery; our ability to retain management and key employees; our ability to use net operating losses to offset future taxable income; competitive conditions in the airline industry; the effects of extensive government regulation on our business; the effects of terrorist attacks; the effects of the rapid spread of contagious illnesses; and the costs associated with insurance.  

 

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2012.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of July 2, 2013, and which we have no current intention to update.

 

1
 

 

 

   Monthly Traffic Results (a)      Year to Date Traffic Results (a)  
                             
   Jun 2013   Jun 2012   Change      Jun 2013   Jun 2012   Change  
                                    
RPMs (000):                                   
Domestic   10,525,178    10,607,976    (0.8%)      55,764,088    56,179,373    (0.7%)  
Delta Mainline   8,545,554    8,471,387    0.9%       45,010,478    44,396,940    1.4%   
Regional   1,979,625    2,136,589    (7.3%)      10,753,610    11,782,433    (8.7%)  
International   7,941,054    7,724,107    2.8%       38,091,945    37,691,973    1.1%   
Latin America   1,278,187    1,204,662    6.1%       7,553,033    7,035,611    7.4%   
Delta Mainline   1,257,206    1,186,187    6.0%       7,442,798    6,950,588    7.1%   
Regional   20,981    18,475    13.6%       110,235    85,023    29.7%   
Atlantic   4,437,271    4,232,923    4.8%       18,483,992    18,837,572    (1.9%)  
Pacific   2,225,596    2,286,522    (2.7%)      12,054,920    11,818,790    2.0%   
Total System   18,466,232    18,332,083    0.7%       93,856,033    93,871,346    (0.0%)  
                                    
                                    
ASMs (000):                                   
Domestic   12,188,166    12,101,689    0.7%       67,135,352    67,036,816    0.1%   
Delta Mainline   9,751,023    9,537,949    2.2%       53,123,571    52,064,648    2.0%   
Regional   2,437,143    2,563,740    (4.9%)      14,011,781    14,972,168    (6.4%)  
International   8,909,832    8,714,927    2.2%       45,766,019    46,753,411    (2.1%)  
Latin America   1,502,616    1,455,444    3.2%       9,125,759    8,921,204    2.3%   
Delta Mainline   1,477,863    1,429,917    3.4%       8,980,044    8,790,531    2.2%   
Regional   24,753    25,527    (3.0%)      145,716    130,673    11.5%   
Atlantic   4,878,548    4,684,475    4.1%       22,363,369    23,321,753    (4.1%)  
Pacific   2,528,668    2,575,008    (1.8%)      14,276,891    14,510,454    (1.6%)  
Total System   21,097,997    20,816,616    1.4%       112,901,372    113,790,227    (0.8%)  
                                    
                                    
Load Factor:                                   
Domestic   86.4%    87.7%    (1.3) pts    83.1%    83.8%    (0.7) pts
Delta Mainline   87.6%    88.8%    (1.2) pts    84.7%    85.3%    (0.6) pts
Regional   81.2%    83.3%    (2.1) pts    76.7%    78.7%    (2.0) pts
International   89.1%    88.6%    0.5  pts    83.2%    80.6%    2.6  pts
Latin America   85.1%    82.8%    2.3  pts    82.8%    78.9%    3.9  pts
Delta Mainline   85.1%    83.0%    2.1  pts    82.9%    79.1%    3.8  pts
Regional   84.8%    72.4%    12.4  pts    75.7%    65.1%    10.6  pts
Atlantic   91.0%    90.4%    0.6  pts    82.7%    80.8%    1.9  pts
Pacific   88.0%    88.8%    (0.8) pts    84.4%    81.5%    2.9  pts
Total System   87.5%    88.1%    (0.6) pts    83.1%    82.5%    0.6  pts
                                    
Mainline Completion Factor   99.6%    99.6%    0.0  pts                  
                                    
Passengers Boarded   15,102,494    15,204,907    (0.7%)      80,137,412    80,700,243    (0.7%)  
                                    
Cargo Ton Miles (000):   195,566    206,586    (5.3%)      1,139,328    1,175,677    (3.1%)  

 

 

                               
Endnote:                              
a  Results include flights operated under contract carrier arrangements.                

 

 

2
 

 

Non-GAAP Reconciliations

 

Delta sometimes uses information ("non-GAAP financial measures") that is derived from our Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

 

Mark-to-market adjustments for fuel hedges recorded in periods other than the settlement period ("MTM adjustments"). We exclude MTM adjustments, which are based on market prices at the end of the reporting period and certain assumptions, as they are not necessarily indicative of the actual future value of the underlying hedge in the contract settlement period to assist investors in evaluating the company’s recurring core operational performance in the period shown.

 

Average Fuel Price Per Gallon

 

   (Projected) 
   Three Months Ended, 
Consolidated  June 30, 2013 
Average price per fuel gallon(1)   $3.13 to $3.18 
MTM adjustments   (0.13)
Average price per fuel gallon, adjusted   $3.00 to $3.05 

 

(1) Includes fuel expense incurred under contract carrier arrangements and the impact of fuel hedge activity

3