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8-K - CURRENT REPORT ON FORM 8-K - DELTA AIR LINES, INC.dal_8k.htm

Exhibit 99.1

 

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Delta Reports Financial and Operating Performance for May 2015

 

ATLANTA, June 2, 2015 – Delta Air Lines (NYSE: DAL) today reported financial and operating performance for May 2015.

 

Consolidated passenger unit revenue (PRASM) for the month of May decreased 5.5 percent year over year, with roughly half of the decline due to foreign exchange pressure and lower surcharges in international markets and the remainder from lower domestic yields. Delta now expects consolidated PRASM for the June quarter to decline approximately 4 to 5 percent, with the change from previous guidance a result of lower than expected close in domestic business yields.

 

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

 

Preliminary Financial and Operating Results

May consolidated PRASM change year over year (5.5%)
May mainline completion factor 99.8%
May on-time performance (preliminary DOT A14) 87.3%

 

Delta Air Lines serves more than 170 million customers each year. Delta was named to FORTUNE magazine’s top 50 World’s Most Admired Companies in addition to being named the most admired airline for the fourth time in five years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for four consecutive years, a first for any airline. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 335 destinations in 64 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.

 

 

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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, 2014. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of Jun. 2, 2015, and which we have no current intention to update.

 

 

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      Monthly Traffic Results (a)   Year to Date Traffic Results (a)  
                             
                             
      May 2015   May 2014   Change   May 2015   May 2014   Change  
                             
RPMs (000):                            
  Domestic 10,875,169   10,495,641   3.6%   49,292,194   47,319,834   4.2%  
    Delta Mainline 9,093,711   8,595,913   5.8%   40,943,039   38,636,389   6.0%  
    Regional 1,781,458   1,899,728   (6.2%)   8,349,154   8,683,445   (3.8%)  
  International 7,342,706   7,239,524   1.4%   32,026,586   31,592,681   1.4%  
    Latin America 1,547,284   1,444,870   7.1%   8,396,869   7,706,608   9.0%  
       Delta Mainline 1,516,378   1,410,517   7.5%   8,237,527   7,551,804   9.1%  
          Regional 30,907   34,353   (10.0%)   159,342   154,804   2.9%  
    Atlantic 3,736,442   3,735,667   0.0%   13,958,015   14,031,543   (0.5%)  
    Pacific 2,058,979   2,058,987   (0.0%)   9,671,701   9,854,530   (1.9%)  
  Total System 18,217,875   17,735,165   2.7%   81,318,780   78,912,515   3.0%  
                             
                             
ASMs (000):                            
  Domestic 12,509,736   12,045,551   3.9%   58,293,849   55,845,630   4.4%  
    Delta Mainline 10,353,928   9,736,024   6.3%   47,679,547   44,816,782   6.4%  
    Regional 2,155,808   2,309,527   (6.7%)   10,614,302   11,028,848   (3.8%)  
  International 8,810,700   8,449,488   4.3%   39,922,356   38,128,615   4.7%  
    Latin America 1,897,905   1,765,448   7.5%   10,336,257   9,252,256   11.7%  
       Delta Mainline 1,858,792   1,719,042   8.1%   10,124,411   9,040,927   12.0%  
          Regional 39,113   46,406   (15.7%)   211,846   211,329   0.2%  
    Atlantic 4,524,248   4,245,203   6.6%   18,009,357   17,082,725   5.4%  
    Pacific 2,388,547   2,438,837   (2.1%)   11,576,742   11,793,634   (1.8%)  
  Total System 21,320,436   20,495,039   4.0%   98,216,205   93,974,245   4.5%  
                             
                             
Load Factor:                          
  Domestic 86.9%   87.1%    (0.2) pts 84.6%   84.7%    (0.1) pts
    Delta Mainline 87.8%   88.3%    (0.5) pts 85.9%   86.2%    (0.3) pts
    Regional 82.6%   82.3%   0.3 pts 78.7%   78.7%   0.0 pts
  International 83.3%   85.7%    (2.4) pts 80.2%   82.9%    (2.7) pts
    Latin America 81.5%   81.8%    (0.3) pts 81.2%   83.3%    (2.1) pts
       Delta Mainline 81.6%   82.1%    (0.5) pts 81.4%   83.5%    (2.1) pts
          Regional 79.0%   74.0%   5.0 pts 75.2%   73.3%   1.9 pts
    Atlantic 82.6%   88.0%    (5.4) pts 77.5%   82.1%    (4.6) pts
    Pacific 86.2%   84.4%   1.8 pts 83.5%   83.6%    (0.1) pts
  Total System 85.4%   86.5%    (1.1) pts 82.8%   84.0%    (1.2) pts
                             
Mainline Completion Factor 99.8%   99.9%    (0.1) pts            
                             
Passengers Boarded 15,550,763   15,085,043   3.1%   70,338,694   67,668,569   3.9%  
                             
                             
                             
Cargo Ton Miles (000): 182,731   198,866   (8.1%)   911,451   912,462   (0.1%)  
                             
aResults include flights operated under contract carrier arrangements              

 

 

 

 

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