Forward-looking Statements
Statements in this news 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 effects of the global recession; the effects of the global financial crisis; the impact of posting collateral in connection with our fuel hedge contracts; the impact that our indebtedness will 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; the ability to realize the anticipated benefits of our merger with Northwest; the integration of the Delta and Northwest workforces; interruptions or disruptions in service at one of our hub airports; our increasing dependence on technology in its operations; our ability to retain management and key employees; the ability of our credit card processors to take significant holdbacks in certain circumstances; the effects of terrorist attacks; and competitive conditions in the airline industry.
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 December 31, 2008 and our Quarterly Report on Form 10-Q for the period ended June 30, 2009. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of October 22, 2009, and which we have no current intention to update.
DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)
Three Three
Months Months
Ended Ended
(in millions, except Sept. 30, Sept. 30, $ Change % Change
per share data) 2009 2008(1) H(L) H(L)
------------------- ---- ------ --- ---
OPERATING REVENUE:
Passenger:
Mainline $5,122 $3,921 $1,201 31%
Regional
carriers 1,402 1,057 345 33%
----- ----- ---
Total passenger
revenue 6,524 4,978 1,546 31%
Cargo 177 162 15 9%
Other, net 873 579 294 51%
--- --- ---
Total operating
revenue 7,574 5,719 1,855 32%
OPERATING EXPENSE:
Aircraft fuel and
related taxes 1,973 1,952 21 1%
Salaries and related
costs 1,894 1,086 808 74%
Contract carrier
arrangements (2) 1,009 941 68 7%
Contracted services 415 272 143 53%
Depreciation and
amortization 385 293 92 31%
Aircraft maintenance
materials and
outside repairs 334 273 61 22%
Passenger
commissions and
other selling
expenses 384 259 125 48%
Landing fees and
other rents 340 179 161 90%
Passenger service 181 122 59 48%
Aircraft rent 123 70 53 76%
Restructuring and
merger-related
items 129 24 105 NM
Other 203 117 86 74%
--- --- --
Total operating
expense 7,370 5,588 1,782 32%
----- ----- -----
OPERATING INCOME 204 131 73 56%
OTHER (EXPENSE)
INCOME:
Interest expense (319) (140) (179) NM
Interest income 4 21 (17) -81%
Loss on
extinguishment of
debt (83) - (83) NM
Miscellaneous, net 15 (62) 77 NM
-- --- --
Total other expense,
net (383) (181) (202) NM
---- ---- ----
LOSS BEFORE INCOME
TAXES (179) (50) (129) NM
INCOME TAX BENEFIT 18 - 18 NM
-- --- --
NET LOSS $(161) $(50) $(111) NM
===== ==== =====
BASIC AND DILUTED LOSS
PER SHARE $(0.19) $(0.13)
====== ======
BASIC AND DILUTED
WEIGHTED AVERAGE
SHARES OUTSTANDING 828 396
=== ===
(1) Pursuant to GAAP, results for the September 2008 quarter presented
in this table reflect Delta standalone results only. See Note A for
a representation of "Combined" results for the September 2008
quarter, which includes Northwest results for that period.
(2) Contract carrier arrangements expense includes $251 million and $368
million for the three months ended September 30, 2009 and 2008,
respectively, for aircraft fuel and related taxes.