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SECURITIES AND EXCHANGE COMMISSION

FORM 10-Q

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2003

or

o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-5424

DELTA AIR LINES, INC.

State of Incorporation: Delaware

IRS Employer Identification No.: 58-0218548

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

Telephone: (404) 715-2600

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

Yes x    No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes x    No o

Number of shares outstanding by each class of common stock, as of July 31, 2003:

Common Stock, $1.50 par value — 123,363,918 shares outstanding

This document is also available on our web site at http://investor.delta.com/edgar.cfm.

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FORWARD-LOOKING STATEMENTS

     Statements in this Form 10-Q (or otherwise made by Delta or on Delta’s behalf) that are not historical facts, including statements regarding Delta’s estimates, expectations, beliefs, intentions, projections or strategies for the future, may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from historical experience or Delta’s present expectations. Factors that could cause these differences include, but are not limited to:

1.

the many effects on Delta and the airline industry from the terrorist attacks on the United States on September 11, 2001, including the following:

	•		the adverse impact on the demand for air travel;
	•		the change in Delta’s operations and higher costs resulting from new airline and airport security directives and related customer reactions;
	•		the availability and cost of war and terrorism risk and other insurance for Delta;
	•		potential declines in the values of the aircraft in Delta’s fleet or facilities and related asset impairment charges;

	2.		the availability to Delta of financing on commercially reasonable terms, which may be influenced by, among other things, airline bankruptcies, the creditworthiness of the airline industry in general and Delta in particular, and actions by credit rating agencies;
	3.		military action in Iraq and continued geopolitical uncertainty, including additional terrorist activity;
	4.		general economic conditions, both in the United States and in our markets outside the United States;
	5.		the results of the profit improvement initiatives previously announced by Delta;
	6.		the willingness of customers to travel generally, and with Delta specifically, which could be affected by disease outbreaks, such as Severe Acute Respiratory Syndrome (SARS), and Delta’s and the industry’s safety record;
	7.		competitive factors in our industry, such as airline bankruptcies, the airline pricing environment, the growth of low cost carriers, the ability of other airlines to reduce their costs through bankruptcy or otherwise, international alliances, codesharing programs, capacity decisions by competitors and mergers and acquisitions;

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	8.		outcomes of negotiations on collective bargaining agreements, including Delta’s recent discussions with the Air Line Pilots Association to reduce pilot employment costs, and other labor issues;
	9.		changes in the availability or cost of aircraft fuel or fuel hedges;
	10.		our future funding obligations under our defined benefit pension plans, which are based on various factors, including actual market performance of our pension plan assets, future 30-year U.S. Treasury bond yields and regulatory requirements;
	11.		disruptions to operations due to adverse weather conditions and air traffic control-related constraints;
	12.		actions by the United States or foreign governments, including the Federal Aviation Administration and other regulatory agencies; and
	13.		the outcome of Delta’s litigation.

     Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in Delta’s Annual Report on Form 10-K for the year ended December 31, 2002 and in its Registration Statement on Form S-4 filed with the Securities and Exchange Commission on July 11, 2003. Caution should be taken not to place undue reliance on Delta’s forward-looking statements, which represent Delta’s views only as of August 13, 2003, and which Delta has no current intention to update.

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

DELTA AIR LINES, INC.
Consolidated Balance Sheets
(In Millions, Except Share Data)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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DELTA AIR LINES, INC.
Consolidated Balance Sheets
(In Millions, Except Share Data)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)
(In Millions, Except Share Data)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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DELTA AIR LINES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Millions)