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8-K - CURRENT REPORT ON FORM 8-K - DELTA AIR LINES, INC.delta_8k-080212.htm

Exhibit 99.1

 

 

 

 

 

FOR IMMEDIATE DISTRIBUTION

 

CONTACT: Corporate Communications

404-715-2554

news archive at news.delta.com

 

Investor Relations

404-715-2170

 

 

Delta Reports Financial and Operating Performance for July 2012

 

ATLANTA, Aug. 2, 2012 – Delta Air Lines (NYSE: DAL) today reported financial and operating performance for July 2012.

 

Delta’s consolidated passenger unit revenue (PRASM) increased 4.5 percent for the month of July as compared to the prior year. Unit revenues increased across all entities, with the strongest performance in the Pacific, as the company continued to see benefits from its capacity discipline, corporate revenue gains, and its expansion at New York’s LaGuardia airport.

 

System load factor increased 0.2 points to 87.8 percent on a 3.1 percent reduction in capacity.

 

The company’s adjusted fuel price per gallon was $3.15 for the month.

 

Delta’s strong operational performance continued during the month. Delta’s completion factor of 99.5 percent was 0.4 points higher than prior year, and its on-time performance was 80.0 percent.

 

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

 

 

Preliminary Financial and Operational Results – July 2012

 

Consolidated PRASM change year over year 4.5%
Consolidated average fuel price, adjusted $3.15
On-time performance (preliminary DOT A14) 80.0%
Mainline completion factor 99.5%

 

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 and won the Business Travel News Annual Airline Survey. With an industry-leading global network, Delta and the Delta Connection carriers offer service to more than 330 destinations in 61 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.

 

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  Monthly Traffic Results (a)   Year to Date Traffic Results (a)  
                         
  July 2012   July 2011   Change   July 2012   July 2011   Change  
                             
RPMs (000):                        
  Domestic 11,074,263   11,249,421   (1.6%)   67,249,493   67,170,086   0.1%  
    Delta Mainline 8,928,687   8,924,624   0.0%   53,320,972   53,017,298   0.6%  
    Regional 2,145,576   2,324,797   (7.7%)   13,928,522   14,152,788   (1.6%)  
  International 8,020,442   8,392,446   (4.4%)   45,713,535   45,767,019   (0.1%)  
    Latin America 1,362,716   1,375,111   (0.9%)   8,398,465   8,239,158   1.9%  
        Delta Mainline 1,347,461   1,351,498   (0.3%)   8,298,193   8,114,326   2.3%  
        Regional 15,256   23,613   (35.4%)   100,271   124,832   (19.7%)  
    Atlantic 4,364,409   4,676,995   (6.7%)   23,204,702   24,204,106   (4.1%)  
    Pacific 2,293,316   2,340,340   (2.0%)   14,110,369   13,323,755   5.9%  
  Total System 19,094,705   19,641,867   (2.8%)   112,963,028   112,937,105   0.0%  
                             
ASMs (000):                        
  Domestic 12,615,204   12,792,514   (1.4%)   79,646,394   81,089,299   (1.8%)  
    Delta Mainline 10,016,718   10,001,906   0.1%   62,073,614   62,949,676   (1.4%)  
    Regional 2,598,486   2,790,608   (6.9%)   17,572,780   18,139,623   (3.1%)  
  International 9,124,599   9,640,751   (5.4%)   55,878,329   57,703,512   (3.2%)  
    Latin America 1,515,851   1,535,866   (1.3%)   10,436,268   10,489,417   (0.5%)  
        Delta Mainline 1,496,460   1,505,156   (0.6%)   10,286,204   10,308,545   (0.2%)  
        Regional 19,391   30,710   (36.9%)   150,064   180,872   (17.0%)  
    Atlantic 4,879,235   5,279,380   (7.6%)   28,205,194   30,588,379   (7.8%)  
    Pacific 2,729,513   2,825,505   (3.4%)   17,236,866   16,625,716   3.7%  
  Total System 21,739,803   22,433,265   (3.1%)   135,524,722   138,792,811   (2.4%)  
                             
Load Factor:                        
  Domestic 87.8%   87.9%   (0.1) pts 84.4%   82.8%   1.6 pts
    Delta Mainline 89.1%   89.2%   (0.1) pts 85.9%   84.2%   1.7 pts
    Regional 82.6%   83.3%   (0.7) pts 79.3%   78.0%   1.3 pts
  International 87.9%   87.1%   0.8 pts 81.8%   79.3%   2.5 pts
    Latin America 89.9%   89.5%   0.4 pts 80.5%   78.5%   2.0 pts
        Delta Mainline 90.0%   89.8%   0.2 pts 80.7%   78.7%   2.0 pts
        Regional 78.7%   76.9%   1.8 pts 66.8%   69.0%   (2.2) pts
    Atlantic 89.4%   88.6%   0.8 pts 82.3%   79.1%   3.2 pts
    Pacific 84.0%   82.8%   1.2 pts 81.9%   80.1%   1.8 pts
  Total System 87.8%   87.6%   0.2 pts 83.4%   81.4%   2.0 pts
                             
Mainline Completion 99.5%   99.1%   0.4 pts            
Factor                        
                             
Passengers Boarded     15,680,567   16,018,038   (2.1%)   96,361,537   95,702,103   0.7%  
                             
Cargo Ton Miles (000): 210,720   203,275   3.7%   1,384,181   1,382,745   0.1%  
                             
Endnote:                        
a Results include flights operated under contract carrier arrangements.  
                             
                             
                               
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Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

 

 

July 2012

 

Delta sometimes uses information that is derived from its Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Certain of this information are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. The non-GAAP financial measures should 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.

 

 

 

   

July 2012

(preliminary)

Average price per fuel gallon including fuel expense incurred under contract carrier arrangements   $2.50
MTM Adjustments   0.65
Average price per fuel gallon, adjusted   $3.15
     

 

 

 

 

 

 

 

 

 

 

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