September 2009 Quarter Highlights
During the September 2009 quarter, Delta continued to position itself as the world's No. 1 airline, with an ongoing commitment to employees, customers and communities. Highlights include:
• Paying more than $50 million year-to-date in employee Shared Rewards for achieving operational performance goals;
• Reaching a definitive agreement with US Airways to exchange slots and airport facilities at New York's LaGuardia and Washington's Reagan National airports, subject to regulatory approval, which will enable Delta to serve an additional two million customers at LaGuardia annually without added congestion;
• Partnering with the City of Atlanta to reach an agreement to extend Delta's lease at Hartsfield-Jackson Atlanta International Airport through 2017 to maintain the airport's position as the leading airport in the world;
• Enhancing BusinessElite service from New York by adding full-flat beds to all flights between New York-JFK and London-Heathrow and new BusinessElite service flights connecting New York-JFK to Los Angeles and San Francisco;
• Announcing the 2010 SkyMiles Medallion program offering frequent flyers new, industry-leading benefits including a Diamond level status and rollover Medallion Qualification Miles; and
• Launching the first joint Delta and Northwest Habitat for Humanity build in the U.S. with projects in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul and New York and partnering - for the fifth consecutive year - with the Breast Cancer Research Foundation to add to the nearly $1.5 million previously raised through on-board pink product sales and donations.
Special Items
Delta recorded special charges totaling $212 million in the September 2009 quarter, including:
• $83 million to write-off unamortized non-cash debt discount associated with the refinancing of certain Northwest debt;
• $78 million in merger-related items; and
• $51 million in charges for employee severance programs.
Delta recorded special charges totaling $24 million in the September 2008 quarter, including:
• A $14 million charge for early termination fees under contract carrier arrangements;
• $7 million in merger-related expenses; and
• A $3 million net charge primarily for facilities restructuring and severance.