Three Months Ended Sept. 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) (2) 3,648
Salaries and related
costs 1,086 706 (18) (3) 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) (4) -
Other 117 123 (10) (5) 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) $250 million in out-of-period fuel hedges
(3) $18 million of merger-related expenses
(4) $14 million in contract carrier restructuring, $11 million in
facilities and merger-related charges
(5) $10 million in merger-related charges
DELTA AIR LINES, INC.
Unaudited Combined Statements of Operations
Three Oct. 1,
Months 2008
Ended through Three Months
Dec. 31, Oct. 31, Ended
2008 2008 Dec. 31, 2008
-------- -------- -----------------
Special
(in millions) Delta(1) Northwest(1) Items Combined
------------ -------- ------------ ------- --------
OPERATING REVENUE:
Passenger:
Mainline $4,528 $741 $- $5,269
Regional carriers 1,207 181 - 1,388
----- --- --- -----
Total passenger
revenue 5,735 922 - 6,657
Cargo 230 55 - 285
Other, net 748 78 - 826
--- --- --- ---
Total operating
revenue 6,713 1,055 - 7,768
OPERATING EXPENSE:
Aircraft fuel and
related taxes 2,294 750 (301) (2) 2,743
Salaries and related
costs 1,533 245 (25) (3) 1,753
Contract carrier
arrangements 930 81 - 1,011
Aircraft maintenance
materials and outside
repairs 333 49 - 382
Contracted services 370 65 - 435
Passenger commissions
and other selling
expenses 298 72 - 370
Depreciation and
amortization 374 39 - 413
Landing fees and other
rents 268 40 - 308
Aircraft rent 106 17 - 123
Passenger service 129 20 - 149
Restructuring and
merger-related items 987 224 (1,211) (4) -
Other 188 39 - 227
--- --- --- ---
Total operating
expense 7,810 1,641 (1,537) 7,914
----- ----- ------ -----
OPERATING (LOSS) INCOME (1,097) (586) 1,537 (146)
OTHER (EXPENSE) INCOME:
Interest expense (277) (39) - (316)
Interest income 19 5 - 24
Miscellaneous, net (83) (9) 20 (5) (72)
--- --- --- ---
Total other expense,
net (341) (43) 20 (364)
---- --- --- ----
LOSS BEFORE INCOME TAXES (1,438) (629) 1,557 (510)
INCOME TAX PROVISION - - - -
--- --- --- ---
NET LOSS $(1,438) (629) $1,557 $(510)
======= ==== ====== =====
Notes:
Combined Contract carrier arrangements expense includes $301 million for
fuel expense incurred under these arrangements.
(1) We reclassified prior period amounts to conform to current
presentations
(2) $301 million in out-of-period fuel hedges
(3) $25 million of merger-related expenses
(4) $1.2 billion in merger-related charges and $18 million in facilities
restructuring
(5) $20 million write-down in value of auction rate securities