DELTA AIR LINES, INC.
Unaudited Combined Statements of Operations
--------------------------------
Three Months Ended June 30, 2008
--------------------------------
Special
(in millions) Delta(1) Northwest(1) Items Combined
-------- ------------ ------- --------
OPERATING REVENUE:
Passenger:
Mainline $3,627 $2,638 $- $6,265
Regional carriers 1,143 506 - 1,649
----- ----- - -----
Total passenger revenue 4,770 3,144 - 7,914
Cargo 160 213 - 373
Other, net 569 232 - 801
--- --- - ---
Total operating revenue 5,499 3,589 - 9,088
OPERATING EXPENSE:
Aircraft fuel and related
taxes 1,678 1,185 253 (8) 3,116
Salaries and related costs 1,092 748 (15) (7) 1,825
Contract carrier arrangements 967 281 - 1,248
Aircraft maintenance materials
and outside repairs 295 186 - 481
Contracted services 257 207 - 464
Passenger commissions and
other selling expenses 248 224 - 472
Depreciation and amortization 302 745 (624) (5) 423
Landing fees and other rents 173 143 - 316
Aircraft rent 67 56 - 123
Passenger service 105 66 - 171
Impairment of goodwill and
other intangibles 1,196 (76) (1,120) (2) -
Restructuring and
merger-related items 104 - (104) (3) -
Other 102 123 (14) (4) 211
--- --- --- ---
Total operating expense 6,586 3,888 (1,624) 8,850
----- ----- ------ -----
OPERATING LOSS (1,087) (299) 1,624 238
OTHER (EXPENSE) INCOME:
Interest expense (141) (108) - (249)
Interest income 25 24 - 49
Miscellaneous, net 40 (208) 213 (6) 45
--- ---- --- ---
Total other expense, net (76) (292) 213 (155)
--- ---- --- ----
LOSS BEFORE INCOME TAXES (1,163) (591) 1,837 83
INCOME TAX BENEFIT 119 214 (333) (9) -
--- --- ---- ---
NET LOSS ($1,044) ($377) $1,504 $83
======== ===== ====== ===
Notes:
Combined Contract carrier arrangements expense includes $517 million for
fuel expense incurred under these arrangements.
(1) We reclassified prior period amounts to conform to current
presentations
(2) $1,120 in goodwill and other intangible asset impairments
(3) $99 in merger related charges and $5 in facilities restructuring
(4) $14 in merger-related legal charges
(5) $624 amortization related to fixed asset and intangible asset
impairments
(6) $213 impairment of investment in subsidiary
(7) $15 of retention payments related to the merger
(8) $253 in out of period fuel hedges
(9) $333 tax charge related to impairment of goodwill and intangible
assets
DELTA AIR LINES, INC.
Unaudited Combined Statements of Operations
-------------------------------------
Three Months Ended September 30, 2008
-------------------------------------
Special
(in millions) Delta(1) Northwest(1) Items Combined
-------- ------------ ------- --------
OPERATING REVENUE:
Passenger:
Mainline $3,921 $2,801 $- $6,722
Regional carriers 1,057 550 - 1,607
----- --- -- -----
Total passenger revenue 4,978 3,351 - 8,329
Cargo 162 202 - 364
Other, net 579 260 - 839
--- --- -- ---
Total operating revenue 5,719 3,813 - 9,532
OPERATING EXPENSE:
Aircraft fuel and related
taxes 1,952 1,946 (250)(5) 3,648
Salaries and related costs 1,086 706 (18)(2) 1,774
Contract carrier arrangements 941 275 - 1,216
Aircraft maintenance materials
and outside repairs 273 168 - 441
Contracted services 272 198 - 470
Passenger commissions and
other selling expenses 259 226 - 485
Depreciation and amortization 293 122 - 415
Landing fees and other rents 179 144 - 323
Aircraft rent 70 57 - 127
Passenger service 122 65 - 187
Restructuring and merger-related
items 24 1 (25)(3) -
Other 117 123 (10)(4) 230
--- --- --- ---
Total operating expense 5,588 4,031 (303) 9,316
----- ----- ---- -----
OPERATING INCOME (LOSS) 131 (218) 303 216
OTHER (EXPENSE) INCOME:
Interest expense (140) (112) - (252)
Interest income 21 21 - 42
Miscellaneous, net (62) (5) - (67)
--- -- -- ---
Total other expense, net (181) (96) - (277)
---- --- -- ----
LOSS BEFORE INCOME TAXES (50) (314) 303 (61)
INCOME TAX PROVISION - (3) - (3)
-- -- -- --
NET LOSS $(50) $(317) $303 $(64)
==== ===== ==== ====
Notes:
Combined Contract carrier arrangements expense includes $497 million for
fuel expense incurred under these arrangements.
(1) We reclassified prior period amounts to conform to current
presentations
(2) $18 of retention payments related to the merger
(3) $14 in contract carrier restructuring, $11 in facilities and merger
related charges
(4) $10 in merger-related charges
(5) $250 in out of period fuel hedges