8-K

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): April 21, 2005

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.)

P.O. Box 20706, Atlanta, Georgia 30320-6001

(Address of principal executive offices)

Registrant’s telephone number, including area code: (404) 715-2600

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):

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

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

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

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

Item 2.02 Results of Operations and Financial Condition.

Delta Air Lines, Inc. (Delta) today issued a press release reporting financial results for the quarter ended March 31, 2005. The press release is furnished as Exhibit 99.1. The information furnished in this Form 8-K shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission.

Item 7.01 Regulation FD Disclosure.

Delta also will be providing supplemental data for the March 2005 quarter to certain analysts. The supplemental data is furnished as Exhibit 99.2. The information furnished in this Form 8-K shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

Exhibit 99.1 Press Release dated April 21, 2005 titled “Delta Air Lines Reports Results for March 2005 Quarter”

Exhibit 99.2 Supplemental Information dated April 21, 2005 titled “Supplemental March 2005 Quarter Data”

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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/  Michael J. Palumbo
Date: April 21, 2005		Michael J. Palumbo Executive Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit Number	Description
Exhibit 99.1	Press Release dated April 21, 2005 titled “Delta Air Lines Reports Results for March 2005 Quarter”
Exhibit 99.2	Supplemental Information dated April 21, 2005 titled “Supplemental March 2005 Quarter Data”

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EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE DISTRIBUTION

CONTACT: Corporate Communications 404-715-2554 Investor Relations 404-715-6679

Delta Air Lines Reports Results for March 2005 Quarter

ATLANTA, April 21, 2005 - Delta Air Lines (NYSE: DAL) today reported results for the quarter ended March 31, 2005, and other significant news. The key points are, Delta:

· Reports a first quarter net loss of $1.1 billion, or $7.64 loss per share.

· Excluding the special items described below, reports a first quarter net loss of $684 million, or $4.89 loss per share.

· Is achieving the targets set forth in its transformation plan, as demonstrated by a 12.7 percent year over year reduction in mainline unit costs, excluding fuel expense and the special items described below.¹ Including fuel expense and special items, mainline unit costs increased 11.9 percent compared to the March 2004 quarter.

· Maintains cash balance, ending quarter with $1.8 billion in unrestricted cash and cash equivalents and short-term investments.

Delta Air Lines reported a net loss of $1.1 billion and a loss per share of $7.64 for the March 2005 quarter. In the March 2004 quarter, Delta reported a net loss of $383 million and a loss per share of $3.12.

Excluding the special items described below, the March 2005 quarter net loss and loss per share were $684 million and $4.89, respectively, compared to a net loss of $598 million and a loss per share of $4.86 in the March 2004 quarter.²

“Today’s financial results clearly are disappointing,” said Gerald Grinstein, Delta’s chief executive officer. “Record-breaking fuel prices are masking the many crucial, large-scale, core initiatives our airline implemented during the quarter. The issue is simple: including fuel, Delta is not on plan, but excluding fuel, we are better than plan. Also, as competitive and cost pressures - - including fuel - continue to grow, we are aggressively pursuing opportunities to further reduce our cost structure and also maintain liquidity levels.”

Financial Performance

First quarter operating revenues increased 3.3 percent, while passenger unit revenues decreased 2.9 percent, compared to the March 2004 quarter. These results are in line with the company’s expectations. The load factor for the March 2005 quarter was 74.4 percent, a 3.9 point increase as compared to the March 2004 quarter. System capacity rose 6.0 percent and mainline capacity increased 6.5 percent from the prior-year quarter. Detailed traffic, capacity, load factor, yield and passenger unit revenue information is provided in Note 2 attached below.

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Due to sharply higher fuel costs and the special items described below, operating expenses for the March 2005 quarter increased 17.5 percent from the March 2004 quarter and unit costs increased 10.9 percent. Excluding the special items described below, operating expenses for the March 2005 quarter increased 4.0 percent from the corresponding period in the prior year.

Excluding the special items described below, consolidated system unit costs decreased 1.9 percent and mainline unit costs decreased 3.9 percent as compared to the prior year period. Excluding fuel expense and the special items described below, unit costs for the consolidated system decreased 9.9 percent and mainline unit costs decreased 12.7 percent. Fuel expense increased 54.0 percent, or $310 million, with approximately 94 percent of the increase resulting from higher fuel prices. Average fuel price per gallon for the March 2005 quarter was $1.42, a 49 percent increase over the prior year period.

“To date, we have implemented changes in our business to a degree, and at a rate, that has never been done before. By the end of the March 2005 quarter, we had implemented initiatives intended to achieve over 80 percent of our transformation plan targets and expect to implement actions by the end of September 2005 to realize materially all of our targeted benefits,” said Michael J. Palumbo, Delta’s executive vice president and chief financial officer. “However, historically high fuel prices are a significant challenge, defining the need for even more change.”

Guidance on capacity, unit costs and other items is provided below.

Liquidity and Financial Transactions

At March 31, 2005, Delta had $2.2 billion in cash and cash equivalents and short-term investments, of which $1.8 billion was unrestricted. Cash flow from operations was positive $165 million in the March 2005 quarter, including the sale of short term investments. Capital expenditures for the quarter were approximately $160 million, including $85 million for aircraft delivered under seller financing. Delta expects its funding obligation in 2005 for its defined benefit pension and defined contribution plans will be approximately $450 million, of which $220 million of required contributions were made during the March 2005 quarter. Cash debt maturities for 2005 are expected to be approximately $630 million, of which $130 million was paid during the March 2005 quarter.

During the March 2005 quarter, Delta exchanged $176 million principal amount of enhanced equipment trust certificates (EETCs) due in November 2005 for a like aggregate principal amount of EETCs due in September 2006 and January 2008. Additionally, Delta borrowed the final $250 million installment under its financing agreement with American Express.

Transformation Plan

On Sept. 8, 2004, Delta outlined key elements of its transformation plan, which is intended to deliver approximately $5 billion in annual benefits by the end of 2006 (as compared to 2002), while also improving the service Delta provides to its customers. By the end of 2004, Delta had achieved $2.3 billion of its targeted transformation plan objectives. Delta believes that it remains on track to achieve the remaining $2.7 billion in targeted benefits.

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As previously announced, during the March 2005 quarter, Delta implemented several key initiatives as part of its transformation plan:

SimpliFares^TM

On Jan. 5, 2005, Delta announced the expansion of its SimpliFares initiative within the 48 contiguous United States. To date, traffic stimulation has been less than expected, but yield declines have also been less than anticipated. The net result is that this initiative is on track with Delta’s revenue expectations.

Hub Redesign

On Jan. 31, 2005, Delta (1) implemented Operation Clockwork, the redesign of its primary hub in Atlanta to a continuous, “un-banked” hub and (2) dehubbed its Dallas/Ft. Worth operations. Together, these actions restructured over 51 percent of Delta’s network. As a result of Operation Clockwork, Delta was able to redeploy the equivalent of 19 aircraft gained through operational efficiencies.

Outsourcing

During the March 2005 quarter, Delta announced plans to outsource (1) certain of its human resources and payroll functions, resulting in expected cost savings of approximately $40 million over seven years as well as allowing Delta to forego significant capital expenditures and (2) heavy maintenance visits (HMVs) on its MD-88, MD-90, B757 and B767 aircraft. The outsourcing of HMVs, combined with additional efficiencies gained from consolidating certain other maintenance work from Tampa to Atlanta, is expected to yield savings of approximately $240 million over five years.

Explanation of Special Items

March 2005 Quarter Special Items

In the March 2005 quarter, Delta recorded special items totaling a net $387 million charge. These items, which did not impact the Company’s cash balance at March 31, 2005, are described below:

(1)	A $453 million charge related to certain employee initiatives under Delta’s transformation plan. This charge primarily reflects the cost of pension benefits related to (1) the planned reduction of 6,000-7,000 non-pilot jobs and (2) the partial freeze of benefit accruals under the pilot defined benefit plan;
(2)	A $68 million settlement charge related to the company’s defined benefit pension plan for pilots (Pilot Plan). This charge relates to the lump sum distributions under the Pilot Plan for 265 pilots who retired. As a result of the lump sum distributions, Delta must accelerate the recognition of actuarial losses in accordance with SFAS 883;
(3)	A $10 million charge related to the retirement of six B737-200 aircraft in conjunction with the transformation plan; and
(4)	A $144 million benefit from a reduction in Delta’s required deferred income tax asset reserve.

March 2004 Quarter Special Items

In the March 2004 quarter, Delta recorded a special item to recognize a $215 million income tax benefit due to its loss recorded for that period.

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Consolidated Statements of Operations

The attached Consolidated Statements of Operations for the three month periods ended March 31, 2005 and 2004 show Delta’s net loss as reported under accounting principles generally accepted in the United States (GAAP), as well as net loss excluding the special items described above. Delta believes this information is helpful to investors to evaluate recurring operational performance because the special items recognized in the March 2005 quarter are not representative of recurring operations. Additionally, Delta excludes the tax benefit recognized in the March 2004 quarter because, in the June 2004 quarter, Delta recorded an additional valuation allowance against its deferred income tax assets and also discontinued recognition of tax benefits for current period losses. For further information, please see Note 1 to the attached Consolidated Statements of Operations.

2005 Guidance

Historically high fuel prices are creating serious challenges for Delta and other airlines. Based on Delta’s expected fuel consumption for 2005, every one cent increase in the average annual cost per gallon of jet fuel drives approximately $25 million in additional fuel expense per year. Delta’s business plan assumes an average fuel price per gallon in 2005 of $1.22. The forward curve for crude oil currently implies substantially higher prices for 2005 than our business plan, and we have no hedges or contractual arrangements in place that would reduce our jet fuel costs below market prices.

Capital expenditures for the June 2005 quarter are estimated to be approximately $350 million, including $210 million for aircraft. Capital expenditures for 2005 are estimated to be approximately $1 billion, including $570 million for aircraft. All of Delta’s regional jet aircraft deliveries in 2005 will be financed under existing agreements. The remaining mainline aircraft to be delivered in 2005 are scheduled to be sold to a third party immediately upon delivery from the manufacturer, pursuant to a previously announced agreement.

The following table includes certain projected information for the periods presented.

	Year-Over-Year Changes
	Q2 2005	Full Year 2005
Capacity	Up 5% to 7%	Up 6% to 8%
Consolidated unit costs, excluding fuel expense and special items4 (vs. prior year unit costs, excluding fuel expense and special items)	Down 11% to 13%	Down 11% to 13%
Mainline unit costs, excluding fuel expense and special items4 (vs. prior year unit costs, excluding fuel expense and special items)	Down 13% to 15%	Down 13% to 15%

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Other Matters

Attached to this press release are Delta’s Consolidated Statements of Operations for the three months ended March 31, 2005 and 2004; a statistical summary for those periods; selected balance sheet data as of March 31, 2005, and Dec. 31, 2004; and a reconciliation of certain GAAP to non-GAAP financial measures.

Delta will host a webcast to discuss its quarterly results today, April 21, 2005 at 10:00 a.m. Eastern Daylight Time. The webcast is available via the Internet at www.delta.com/inside/investors/index.jsp.

Delta is the world’s second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 490 destinations in 85 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other 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 visit delta.com.

Endnotes

¹ Delta presents mainline unit costs excluding fuel expense and special items because management believes (a) the record high fuel prices during the March 2005 quarter mask the progress the Company achieved toward its transformation plan targets and (b) the exclusion of the special items is helpful to investors to evaluate the Company’s recurring operational performance.

² Note 1 to the attached Consolidated Statements of Operations shows a reconciliation of Delta’s net loss reported under accounting principles generally accepted in the United States (GAAP) to the net loss excluding special items, as well as reconciliations of other financial measures including and excluding special items.

³ SFAS No. 88, “Employers’ Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits.”

⁴ Delta is unable to reconcile this financial measure to unit costs under GAAP for the future periods presented because Delta cannot project in the future periods presented (1) the special items that may occur or (2) fuel costs due to the current volatility in the market.

Statements in this news release that are not historical facts, including statements regarding Delta’s estimates, beliefs, expectations, intentions, strategies or projections, 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, beliefs, expectations, intentions, strategies and projections reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to reduce operating expenses, our ability to obtain necessary financing or debt payment deferrals to meet our liquidity needs, our ability to comply with financial covenants in our loan agreements, our pension plan funding obligations, pilot early retirements, the cost of aircraft fuel, the effect of credit ratings downgrades, interruptions or disruptions in service at one of our hub airports, our increasing dependence on technology in our operations, labor issues, the effects of terrorist attacks, restructurings by competitors and competitive conditions in the airline industry. Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in Delta’s Securities and Exchange Commission filings, including its Form S-3, filed with the Commission on April 14, 2005. Caution should be taken not to place undue reliance on Delta’s forward-looking statements, which represent Delta’s views only as of April 21, 2005, and which Delta has no current intention to update.

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DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)
	Three Months Ended
	March 31,						Percent
	2005			2004			Change
(in millions, except share data)
OPERATING REVENUES:
Passenger:
Mainline	$	2,649		$	2,560			3.5	%
Regional Affiliates		690			681			1.3	%
Cargo		132			122			8.2	%
Other, net		176			166			6.0	%
Total operating revenues		3,647			3,529			3.3	%
OPERATING EXPENSES:
Salaries and related costs		1,411			1,609			-12.3	%
Aircraft fuel		884			574			54.0	%
Depreciation and amortization		313			307			2.0	%
Contracted services		272			241			12.9	%
Contract carrier arrangements		204			237			-13.9	%
Landing fees and other rents		215			217			-0.9	%
Aircraft maintenance materials and outside repairs		177			157			12.7	%
Aircraft rent		143			181			-21.0	%
Passenger commissions and other selling expenses		192			173			11.0	%
Passenger service		84			78			7.7	%
Pension settlements, asset writedowns, restructuring and related items		531			-			100	%
Other		178			143			24.5	%
Total operating expenses		4,604			3,917			17.5	%
OPERATING LOSS		(957	)		(388	)		-146.6	%
OTHER INCOME (EXPENSE):
Interest expense		(268	)		(194	)		-38.1	%
Interest income		14			13			7.7	%
Fair value adjustments of SFAS 133 derivatives		(2	)		(23	)		91.3	%
Miscellaneous expense, net		(2	)		(6	)		66.7	%
Total other expense, net		(258	)		(210	)		-22.9	%
LOSS BEFORE INCOME TAXES		(1,215	)		(598	)		-103.2	%
INCOME TAX BENEFIT		144			215			-33.0	%
NET LOSS		(1,071	)		(383	)		-179.6	%
PREFERRED STOCK DIVIDENDS		(5	)		(4	)		-25.0	%
NET LOSS ATTRIBUTABLE TO COMMON
SHAREOWNERS	$	(1,076	)	$	(387	)		-178.0	%
BASIC AND DILUTED LOSS PER SHARE	$	(7.64	)	$	(3.12	)		-144.9	%
NET LOSS EXCLUDING SPECIAL ITEMS - see Note 1	$	(684	)	$	(598	)		-14.4	%
BASIC AND DILUTED LOSS PER SHARE
EXCLUDING SPECIAL ITEMS - see Note 1	$	(4.89	)	$	(4.86	)		-0.6	%
WEIGHTED AVERAGE SHARES USED IN BASIC AND
DILUTED LOSS PER SHARE COMPUTATION:		140,924,006			123,879,082			13.8	%
OPERATING MARGIN		-26.2	%		-11.0	%		-15.2 pts

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DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
	Three Months Ended
	March 31,						Percent
	2005			2004			Change
Consolidated:
Revenue Passenger Miles (millions) 1		28,176			25,199			11.8	%
Available Seat Miles (millions) 1		37,877			35,749			6.0	%
Passenger Mile Yield 1		11.85	¢		12.86	¢		-7.9	%
Operating Revenue Per Available Seat Mile 1		9.63	¢		9.87	¢		-2.4	%
Passenger Revenue Per Available Seat Mile 1		8.81	¢		9.07	¢		-2.9	%
Operating Cost Per Available Seat Mile 1		12.16	¢		10.96	¢		10.9	%
Operating Cost Per Available Seat Mile - excluding special items - see Note 1 1		10.75	¢		10.96	¢		-1.9	%
Operating Costs Per Available Seat Mile - excluding fuel expense and special items - see Note 1 1		8.42	¢		9.35	¢		-9.9	%
Passenger Load Factor 1		74.39	%		70.49	%		3.9	pts
Breakeven Passenger Load Factor 1		95.71	%		78.92	%		16.8	pts
Breakeven Passenger Load Factor - excluding special items - see Note 1 1		83.88	%		78.92	%		5.0	pts
Passengers Enplaned (thousands) 1		29,230			27,356			6.9	%
Fuel Gallons Consumed (millions)		624			603			3.5	%
Average Price Per Fuel Gallon, net of hedging gains		141.72	¢		95.23	¢		48.8	%
Number of Aircraft in Fleet, End of Period		841			838			0.4	%
Full-Time Equivalent Employees, End of Period		66,500			69,900			-4.9	%
Mainline:
Revenue Passenger Miles (millions)		24,485			21,814			12.2	%
Available Seat Miles (millions)		32,461			30,486			6.5	%
Operating Cost Per Available Seat Mile		11.62	¢		10.38	¢		11.9	%
Operating Cost Per Available Seat Mile - excluding special Items - see Note 1		9.98	¢		10.38	¢		-3.9	%
Operating Costs Per Available Seat Mile - excluding fuel expense and special items - see Note 1		7.72	¢		8.84	¢		-12.7	%
Number of Aircraft in Fleet, End of Period		535			550			-2.7	%
1 The 2005 and 2004 statistics above include our contract carrier arrangements with Chautauqua Airlines, Inc., FLYi, Inc. and SkyWest Airlines, Inc.

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DELTA AIR LINES, INC.
Selected Balance Sheet Data
	March 31,		December 31,
	2005		2004
	(Unaudited)
(in millions)
Cash and cash equivalents	$	1,646	$	1,463
Short-term investments		169		336
Restricted cash, including noncurrent		361		350
Total assets		21,737		21,801
Total debt and capital leases, including current maturities		14,068		13,898
Total shareowners' deficit		6,629		5,796

Note 1: The following tables show reconciliations of certain financial measures adjusted for the items shown below.
	Three Months Ended
	March 31,
(in millions)	2005			2004
Net loss	($1,071)			($383)
Items excluded:
Pension and related charges		521			-
Aircraft charges		10			-
Income tax benefit		(144	)		(215	)
Total items excluded		387			(215	)
Net loss excluding special items		($684	)		($598	)
Basic and diluted loss per share		($7.64	)		($3.12	)
Items excluded:
Pension and related charges		3.70			-
Aircraft charges		0.07			-
Income tax benefit		(1.02	)		(1.74	)
Total items excluded		2.75			(1.74	)
Basic and diluted loss per share, excluding special items		($4.89	)		($4.86	)
(in millions)
Operating expenses	$	4,604		$	3,917
Items excluded:
Pension and related charges		(521	)		-
Aircraft charges		(10	)		-
Total items excluded		(531	)		-
Operating expenses excluding special items	$	4,073		$	3,917

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	Three Months Ended
	March 31,
	2005		2004
CASM	12.16	¢	10.96	¢
Items excluded:
Pension and related charges	(1.38	)	-
Aircraft charges	(0.03	)	-
Total items excluded	(1.41	)	-
CASM excluding special items	10.75		10.96
Fuel expense	(2.33	)	(1.61	)
CASM excluding fuel expense and special items	8.42	¢	9.35	¢
Mainline CASM	11.62	¢	10.38	¢
Items excluded:
Pension and related charges	(1.61	)	-
Aircraft charges	(0.03	)	-
Total items excluded	(1.64	)	-
Mainline CASM excluding	9.98	¢	10.38	¢
Fuel expense	(2.26	)	(1.54	)
Mainline CASM excluding fuel expense and special items	7.72	¢	8.84	¢
Breakeven load factor	95.71	%	78.92	%
Items excluded:
Pension and related charges	(11.61	)	-
Aircraft charges	(0.22	)	-
Total items excluded	(11.83	)	-
Breakeven load factor excluding special items	83.88	%	78.92	%

	Three
	Months Ended
Capital Expenditures	March 31,
(in millions)	2005
Cash used by investing activities - GAAP
Flight equipment additions	$	223
Ground property & equipment additions		66
Add:
Aircraft seller financing		85
Less:
Sale of aircraft during the quarter 1		(182	)
Boston airport terminal project expenditures		(32	)
Other		(1	)
Capital expenditures	$	159

1 In October 2003, we entered into a definitive agreement with a third party to sell 11 B-737-800 aircraft immediately after those aircraft are delivered to us by the manufacturer in 2005. During the March 2005 quarter, five B-737-800 aircraft were delivered to us and subsequently sold to a third party under this agreement. This line item represents the cost of the aircraft included in the flight equipment additions line item above.

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	Twelve
	Months Ended
Debt Cash Payments	December 31,
(in millions)	2004
Current maturities of long-term debt	$	835
Less:
Interim financing arrangements related to regional jet aircraft 1		(75	)
Principal amount of tax exempt bonds 1		(80	)
Outstanding borrowings under GE financing agreement 1		(50	)
Expected cash payments for current maturities of long-term debt	$	630

¹ See Note 6 in our 2004 Form 10-K for additional information regarding these items (pages F-24 to F-32).

Note 2.

March 2005 Quarter Traffic, Capacity, Load Factor, Yield and Unit Revenue vs. March 2004 Quarter

Year-Over-Year Change
	North America	Atlantic	Latin America	Pacific
Traffic	9.4%	16.9%	47.1%	(4.4%)
Capacity	3.0%	14.1%	42.8%	(1.0%)
Load Factor	4.3 pts.	1.9 pts.	2.2 pts.	(2.9) pts.
Yield	(8.6%)	0.5%	(10.6%)	11.3%
Passenger Unit Revenue	(2.9%)	3.0%	(7.9%)	7.5%

EX-99.2

EXHIBIT 99.2

April 21, 2005

Dear Investors and Analysts,

To make more efficient use of the time allocated for this morning’s conference call, we are providing detailed variance information on our operating and non-operating expenses to assist you in analyzing Delta’s March 2005 quarterly results. This information is intended to supplement that provided in the conference call (scheduled for 10:00 a.m. EDT today) and in the press release. Please see Note 1 to the Consolidated Statements of Operations for a reconciliation of certain financial measures including and excluding special items. March quarter revenue performance will be discussed in the conference call.

Please feel free to call me at 404-715-6679 if you have any questions. Thank you for your continued support of Delta Air Lines.

Laura Fuselier

Supplemental March 2005 Quarter Data

March 2005 Quarter vs. March 2004 Quarter

·   Total operating expenses for the quarter increased $687 million to $4.6 billion due primarily to higher fuel costs and charges for special items. Operating expenses, excluding special items, increased 4% to $4.1 billion on a 6.0% increase in capacity.

·   Delta’s total unit costs increased 10.9% to 12.16 cents from 10.96 cents. Unit costs, excluding fuel expense and special items, decreased 9.9% to 8.42 cents from 9.35 cents. Mainline unit costs, excluding fuel expense and special items, decreased 12.7% to 7.72 cents from 8.84 cents.

·   Salaries and related costs decreased 12%. This decrease is primarily due to pay reductions for pilot and non-pilot employees and lower mainline headcount.

·   Aircraft fuel expense increased $310 million or 54% due primarily to higher fuel prices. Delta’s average fuel price per gallon rose 49% to $1.42, driving approximately $290 million of the increase in expense.

·   Contracted services increased 13% due primarily to higher capacity resulting in increased outsourcing of certain airport functions.

·   Expenses from our contract carrier arrangements decreased by 14% primarily due to the ramp down of our arrangement with Flyi (formerly Atlantic Coast Airlines), partially offset by higher expenses from increased fuel price and higher capacity under certain of these arrangements.

·   Aircraft maintenance materials and outside repairs expense increased 13% primarily due to increased outside repairs and higher engine materials costs, mainly for ASA and Comair.

·   Aircraft rent expense decreased 21% primarily due to the reclassification of certain leases from operating to capital and other lease restructuring efforts as part of our transformation plan.

·   Passenger commissions and other selling expenses increased 11% primarily due to an increase in booking fees mainly related to higher traffic.

·   Other expenses increased 24% primarily due to higher miscellaneous taxes and increased navigation charges, partially offset by lower communications, supplies and utilities expenses.

·   Interest expense increased 38% primarily due to higher levels of outstanding debt and increased interest rates as well as the reclassification of certain aircraft leases from operating to capital.

·   Loss due to fair value adjustments of SFAS 133 derivatives decreased $21 million due to costs associated with the early settlement of our fuel hedge contracts in February 2004.

Other Items

Flight Equipment

The table set forth below shows our aircraft fleet at March 31, 2005.

Our purchase commitments (firm orders) for aircraft, as well as options to purchase additional aircraft, as of March 31, 2005, are shown below.

⁽¹⁾ Aircraft options have scheduled delivery slots, while rolling options replace options and are assigned delivery slots as options expire or are exercised.