Delta Air Lines (NYSE: DAL) today reported financial and operating performance for September 2014.

 

Consolidated passenger unit revenue (PRASM) for the month of September increased 2.0 percent year over year as continued corporate and domestic strength offset pressure on international unit revenues.

Delta's solid operating performance continued through September, with a monthly completion factor of 99.8 percent and an on-time arrival rate of 85.7 percent.

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

Preliminary Financial and Operating Results

 

 

 

September consolidated PRASM change year over year

2.0%

Projected September quarter fuel price per gallon, adjusted

$2.90 - $2.95

September mainline completion factor

99.8%

September on-time performance (preliminary DOT A14)

85.7%

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 nearly 165 million customers each year. This year, Delta was named the 2014 Airline of the Year by Air Transport World magazine and was named to FORTUNE magazine's 50 Most Admired Companies, in addition to being named the most admired airline for the third time in four years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 318 destinations in 57 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 as well as a newly formed joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St. Paul, New York-JFK, New York-LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, 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, Facebook.com/delta and Delta's blog takingoff.delta.com.

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 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, including costs related to renewable fuel standard regulations; our ability to retain management and key employees; 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 war risk 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, 2013.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of Oct. 2, 2014, and which we have no current intention to update.

 

     

Monthly Traffic Results (a)

 

Year to Date Traffic Results (a)

                               
                               
     

Sep 2014

 

Sep 2013

 

Change

   

Sep 2014

 

Sep 2013

 

Change

 
                               

RPMs (000):

                           
 

Domestic

9,600,306

 

9,086,388

 

5.7%

   

90,871,989

 

86,925,722

 

4.5%

 
   

Delta Mainline

7,908,890

 

7,356,357

 

7.5%

   

74,723,124

 

70,393,560

 

6.2%

 
   

Regional

1,691,416

 

1,730,031

 

(2.2%)

   

16,148,865

 

16,532,162

 

(2.3%)

 
 

International

7,351,177

 

6,990,642

 

5.2%

   

64,018,293

 

61,872,756

 

3.5%

 
   

Latin America

1,214,792

 

1,073,060

 

13.2%

   

13,812,413

 

11,549,907

 

19.6%

 
   

Delta Mainline

1,191,520

 

1,060,713

 

12.3%

   

13,539,161

 

11,397,918

 

18.8%

 
   

       Regional

23,272

 

12,347

 

88.5%

   

273,252

 

151,989

 

79.8%

 
   

Atlantic

4,041,970

 

3,805,547

 

6.2%

   

31,439,092

 

31,425,794

 

0.0%

 
   

Pacific

2,094,415

 

2,112,035

 

(0.8%)

   

18,766,788

 

18,897,055

 

(0.7%)

 
 

Total System

16,951,483

 

16,077,030

 

5.4%

   

154,890,282

 

148,798,478

 

4.1%

 
                               

ASMs (000):

                           
 

Domestic

11,580,440

 

11,242,516

 

3.0%

   

106,058,533

 

104,141,937

 

1.8%

 
   

Delta Mainline

9,389,357

 

8,961,202

 

4.8%

   

85,816,618

 

82,768,098

 

3.7%

 
   

Regional

2,191,083

 

2,281,314

 

(4.0%)

   

20,241,915

 

21,373,839

 

(5.3%)

 
 

International

8,661,705

 

8,056,710

 

7.5%

   

75,590,376

 

72,653,938

 

4.0%

 
   

Latin America

1,509,628

 

1,317,962

 

14.5%

   

16,494,182

 

13,743,817

 

20.0%

 
   

Delta Mainline

1,476,669

 

1,302,168

 

13.4%

   

16,132,927

 

13,547,201

 

19.1%

 
   

       Regional

32,959

 

15,794

 

108.7%

   

361,255

 

196,616

 

83.7%

 
   

Atlantic

4,543,938

 

4,200,872

 

8.2%

   

36,819,479

 

36,623,137

 

0.5%

 
   

Pacific

2,608,140

 

2,537,876

 

2.8%

   

22,276,715

 

22,286,984

 

(0.0%)

 
 

Total System

20,242,145

 

19,299,226

 

4.9%

   

181,648,909

 

176,795,875

 

2.7%

 
                               

Load Factor:

                           
 

Domestic

82.9%

 

80.8%

 

2.1

pts

 

85.7%

 

83.5%

 

2.2

pts

   

Delta Mainline

84.2%

 

82.1%

 

2.1

pts

 

87.1%

 

85.0%

 

2.1

pts

   

Regional

77.2%

 

75.8%

 

1.4

pts

 

79.8%

 

77.3%

 

2.5

pts

 

International

84.9%

 

86.8%

 

(1.9)

pts

 

84.7%

 

85.2%

 

(0.5)

pts

   

Latin America

80.5%

 

81.4%

 

(0.9)

pts

 

83.7%

 

84.0%

 

(0.3)

pts

   

Delta Mainline

80.7%

 

81.5%

 

(0.8)

pts

 

83.9%

 

84.1%

 

(0.2)

pts

   

       Regional

70.6%

 

78.2%

 

(7.6)

pts

 

75.6%

 

77.3%

 

(1.7)

pts

   

Atlantic

89.0%

 

90.6%

 

(1.6)

pts

 

85.4%

 

85.8%

 

(0.4)

pts

   

Pacific

80.3%

 

83.2%

 

(2.9)

pts

 

84.2%

 

84.8%

 

(0.6)

pts

 

Total System

83.7%

 

83.3%

 

0.4

pts

 

85.3%

 

84.2%

 

1.1

pts

                               

Mainline Completion Factor

99.8%

 

99.9%

 

(0.1)

pts

             
                               

Passengers Boarded

13,930,376

 

13,241,533

 

5.2%

   

129,549,212

 

124,691,481

 

3.9%

 
                               

Cargo Ton Miles (000):

208,143

 

201,861

 

3.1%

   

1,767,948

 

1,744,193

 

1.4%

 
                               

Results include flights operated under contract carrier arrangements

               
                               
                               

 

Non-GAAP Reconciliation

Delta sometimes uses information ("non-GAAP financial measures") that is derived from the 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. The tables below show reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Average Fuel Price per Gallon, Adjusted

Delta excludes mark-to-market adjustments for fuel hedges recorded in periods other than the settlement period ("MTM adjustments") from average price per fuel gallon because excluding these adjustments allows investors to better understand and analyze Delta's costs for the periods reported. MTM adjustments are based on market prices as of the end of the reporting period for contracts settling in future periods. Such market prices are not necessarily indicative of the actual future value of the underlying hedge in the contract settlement period.

 

         
       

(Projected)

       

Three Months Ended

Consolidated

   

September 30, 2014

Average fuel price per gallon

   

 $3.22 to $3.27

MTM adjustments

   

(0.32)

Average fuel price per gallon, adjusted

   

 $2.90 to $2.95

 

 

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SOURCE Delta Air Lines

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