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Delta Reports Financial and Operating Performance for November 2012

Dec 4, 2012

Delta Reports Financial and Operating Performance for November 2012

ATLANTA, Dec. 4, 2012 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial and operating performance for November 2012.

(Logo: http://photos.prnewswire.com/prnh/20090202/DELTALOGO )

During the month of November, Delta's unit revenues improved 2.5 percent versus prior year, primarily due to corporate revenue gains, continued capacity discipline and strong Thanksgiving demand.  The company is estimating that the effect of Superstorm Sandy early in November negatively impacted November revenues by $30 million and reduced November profit by approximately $25 million.  Delta's November unit revenue improvement was approximately one point lower than it would have been without the storm impact. 

The storm also negatively impacted the company's refinery start up, slowing production and efficiency levels at the plant.  As a result of lower Trainer contribution, the company now expects its fourth quarter fuel price to be $3.20 - $3.25 per gallon.

November represented another month of strong operational performance at Delta.  The company's completion factor was 99.6 percent and 90.5 percent of flights arrived on-time, a nearly 2 point improvement year over year.

The company's financial and operational performance is detailed below. 

Preliminary Financial and Operational Results

 

November Consolidated PRASM change year over year

2.5%

Projected December quarter fuel price per gallon, adjusted

$3.20 – 3.25

November On-time performance (preliminary DOT A14)

90.5%

November Mainline completion factor

99.6%

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

Delta Air Lines serves more than 160 million customers each year. During the past year, Delta was named domestic "Airline of the Year" by the readers of Travel Weekly magazine, was named the "Top Tech-Friendly U.S. Airline" by PCWorld magazine for its innovation in technology, won the Business Travel News Annual Airline Survey and was the recipient of 12 Executive Travel Magazine Leading Edge Awards for U.S. airlines. With an industry-leading global network, Delta and the Delta Connection carriers offer service to nearly 313 destinations in 58 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta 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 13,000 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. The airline's service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $3 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

Forward Looking Statements

Statements in this investor update 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; risks related to the operation of an oil refinery by our wholly-owned subsidiary;  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 increasing dependence on technology in our operations; 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; our ability to retain management and key employees; competitive conditions in the airline industry; the effects of the rapid spread of contagious illnesses; and the effects of terrorist attacks.  

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, 2011 and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of December 4, 2012, and which we have no current intention to update.

Monthly Traffic Results (a)

Year to Date Traffic Results (a)

Nov 2012

Nov 2011

Change

Nov 2012

Nov 2011

Change

RPMs (000):

Domestic

9,065,513

9,138,077

(0.8%)

105,940,734

106,235,153

(0.3%)

Delta Mainline

7,302,166

7,199,669

1.4%

84,416,660

83,806,090

0.7%

Regional

1,763,347

1,938,408

(9.0%)

21,524,074

22,429,063

(4.0%)

International

5,416,074

5,167,918

4.8%

72,259,130

71,843,233

0.6%

Latin America

1,001,706

862,794

16.1%

12,499,923

11,901,059

5.0%

    Delta Mainline

988,589

844,980

17.0%

12,349,173

11,710,507

5.5%

    Regional

13,117

17,814

(26.4%)

150,749

190,552

(20.9%)

Atlantic

2,563,043

2,644,066

(3.1%)

37,173,157

38,597,833

(3.7%)

Pacific

1,851,324

1,661,058

11.5%

22,586,052

21,344,341

5.8%

Total System

14,481,586

14,305,995

1.2%

178,199,864

178,078,386

0.1%

ASMs (000):

Domestic

10,935,709

10,937,313

(0.0%)

125,745,153

127,376,673

(1.3%)

Delta Mainline

8,683,892

8,491,749

2.3%

98,627,965

98,897,534

(0.3%)

Regional

2,251,817

2,445,564

(7.9%)

27,117,188

28,479,139

(4.8%)

International

6,619,779

6,645,291

(0.4%)

86,813,663

89,122,249

(2.6%)

Latin America

1,217,967

1,110,882

9.6%

15,343,614

15,110,882

1.5%

    Delta Mainline

1,200,359

1,084,268

10.7%

15,121,667

14,826,031

2.0%

    Regional

17,608

26,614

(33.8%)

221,947

284,851

(22.1%)

Atlantic

3,163,240

3,366,851

(6.0%)

44,246,617

47,506,397

(6.9%)

Pacific

2,238,572

2,167,558

3.3%

27,223,432

26,504,970

2.7%

Total System

17,555,488

17,582,604

(0.2%)

212,558,815

216,498,922

(1.8%)

Load Factor:

Domestic

82.9%

83.5%

(0.6)

pts

84.3%

83.4%

0.9

pts

Delta Mainline

84.1%

84.8%

(0.7)

pts

85.6%

84.7%

0.9

pts

Regional

78.3%

79.3%

(1.0)

pts

79.4%

78.8%

0.6

pts

International

81.8%

77.8%

4.0

pts

83.2%

80.6%

2.6

pts

Latin America

82.2%

77.7%

4.5

pts

81.5%

78.8%

2.7

pts

    Delta Mainline

82.4%

77.9%

4.5

pts

81.7%

79.0%

2.7

pts

    Regional

74.5%

66.9%

7.6

pts

67.9%

66.9%

1.0

pts

Atlantic

81.0%

78.5%

2.5

pts

84.0%

81.2%

2.8

pts

Pacific

82.7%

76.6%

6.1

pts

83.0%

80.5%

2.5

pts

Total System

82.5%

81.4%

1.1

pts

83.8%

82.3%

1.5

pts

Mainline Completion

99.6%

99.8%

(0.2)

pts

Factor

Passengers Boarded

12,999,406

12,925,560

0.6%

152,102,335

151,274,363

0.5%

Cargo Ton Miles (000):

193,602

192,407

0.6%

2,189,979

2,172,739

0.8%

Endnote:

(a) Results include flights operated under contract carrier arrangements.

SOURCE Delta Air Lines

For further information: Corporate Communications, +1-404-715-2554 or news archive at news.delta.com; Investor Relations, +1-404-715-2170


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