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8-K - FORM 8-K - DELTA AIR LINES, INC.delta_8k.htm
EX-99.2 - INVESTOR UPDATE - DELTA AIR LINES, INC.delta_8k-ex9902.htm

Exhibit 99.1

 

 

DELTA 2007 logo

 

 

 

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 December 2012

 

ATLANTA, Jan. 3, 2013 – Delta Air Lines (NYSE: DAL) today reported financial and operating performance for December 2012.

 

For the month of December, Delta’s unit revenues improved 4.0 percent versus prior year, driven by strong holiday demand, merchandising revenue growth and continued capacity discipline.

 

Delta’s operating performance was solid in December. Delta’s completion factor was 99.7 percent, and 85.4 percent of flights arrived on time.

 

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

 

 

Preliminary Financial and Operational Results

 

December Consolidated PRASM change year over year 4.0%
Projected December quarter fuel price per gallon, adjusted $3.25
December On-time performance (preliminary DOT A14) 85.4%
December Mainline completion factor 99.7%

 

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 318 destinations in 59 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)  
                             
      Dec 2012   Dec 2011   Change   Dec 2012   Dec 2011   Change  
                             
RPMs (000):                        
  Domestic 8,745,943   8,817,212   (0.8%) 114,686,676   115,052,365   (0.3%)  
    Delta Mainline 7,043,828   6,968,483   1.1%    91,460,488   90,774,573   0.8%   
    Regional 1,702,115   1,848,729   (7.9%)   23,226,188   24,277,792   (4.3%)  
  International 6,009,971   5,870,936   2.4%    78,269,101   77,714,169   0.7%   
    Latin America 1,276,847   1,136,364   12.4%    13,776,769   13,037,423   5.7%   
        Delta Mainline 1,260,746   1,120,568   12.5%    13,609,919   12,831,075   6.1%   
        Regional 16,100   15,796   1.9%    166,849   206,348   (19.1%)  
    Atlantic 2,744,768   2,868,414   (4.3%)   39,917,925   41,466,247   (3.7%)  
    Pacific 1,988,356   1,866,158   6.5%    24,574,408   23,210,499   5.9%   
  Total System 14,755,913   14,688,148   0.5%    192,955,777   192,766,534   0.1%   
                             
ASMs (000):                        
  Domestic 10,733,622   10,928,232   (1.8%)   136,478,775   138,304,905   (1.3%)  
    Delta Mainline 8,544,611   8,509,217   0.4%    107,172,576   107,406,751   (0.2%)  
    Regional 2,189,011   2,419,015   (9.5%)   29,306,199   30,898,154   (5.2%)  
  International 7,107,183   7,228,993   (1.7%)   93,920,846   96,351,242   (2.5%)  
    Latin America 1,537,193   1,423,894   8.0%    16,880,807   16,534,776   2.1%   
        Delta Mainline 1,516,779   1,400,701   8.3%    16,638,445   16,226,732   2.5%   
        Regional 20,414   23,193   (12.0%)   242,361   308,044   (21.3%)  
    Atlantic 3,240,902   3,502,292   (7.5%)   47,487,519   51,008,689   (6.9%)  
    Pacific 2,329,088   2,302,807   1.1%    29,552,520   28,807,777   2.6 %  
  Total System 17,840,805   18,157,225   (1.7%)   230,399,620   234,656,147   (1.8%)  
                             
Load Factor:                        
  Domestic 81.5%   80.7%   0.8   pts 84.0%   83.2%   0.8  pts
    Delta Mainline 82.4%   81.9%   0.5   pts 85.3%   84.5%   0.8  pts
    Regional 77.8%   76.4%   1.4   pts 79.3%   78.6%   0.7  pts
  International 84.6%   81.2%   3.4   pts 83.3%   80.7%   2.6  pts
    Latin America 83.1%   79.8%   3.3   pts 81.6%   78.8%   2.8  pts
        Delta Mainline 83.1%   80.0%   3.1   pts 81.8%   79.1%   2.7  pts
        Regional 78.9%   68.1%   10.8   pts 68.8%   67.0%   1.8  pts
    Atlantic 84.7%   81.9%   2.8   pts 84.1%   81.3%   2.8  pts
    Pacific 85.4%   81.0%   4.4   pts 83.2%   80.6%   2.6  pts
  Total System 82.7%   80.9%   1.8   pts 83.7%   82.1%   1.6  pts
                             
Mainline Completion 99.7%   99.8%   (0.1)  pts            
Factor                        
                             
Passengers Boarded 12,469,194   12,563,985   (0.8%)   164,571,529   163,838,348   0.4%  
                             
Cargo Ton Miles (000): 193,316   197,733   (2.2%)   2,383,295   2,370,472   0.5%  
                             
Endnote:                        
a Results include flights operated under contract carrier arrangements.