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

 

The rest is at delta.com

 

One release says merger related items and severance. I guess it is just a fact now that accountants can write off something different every quarter. It appears the goos news is that we made an operating profit. It will be interesting to watch the stock this morning.. and to listen to the conference call..

 

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.

 

That is two quarters of operational profit. Do I smell a profit sharing check in out future?

 

As predicted, this massive loss of cash is being spun as some sort of fantastic "win" by the spinmeisters. I WANT Delta to succeed. I NEED Delta to succeed. But the numbers reported from the WSJ don't look pretty.

"Who you gonna believe, me or your lying eyes?", as the saying goes . .

-------------------------------------------------------------

Oct 22, 2009 WSJ

Business

Delta Posts Wider Loss

by Joan E. Solsman


Delta Air Lines Inc. third quarter loss widened in the face of surging interest costs.

U.S. carriers generally have been posting improved results from a terrible showing the year earlier. Falling fuel prices alleviated much of the strain from last year, but unit revenue, a key measure of performance, has continued to fall.

Delta on Thursday posted a loss of $161 million, or 19 cents per share, compared with a loss of $50 million, or 13 cents, a year earlier. Interest costs soared to $319 million from $140 million. The world's largest carrier by revenue recorded a $83 million loss from debt extinguishment.

Adjusting to include last year's results from Northwest Airlines, which merged with Delta late last November, the year-adjusted loss would have been $64 million.

Revenue for the latest quarter was $7.57 billion. That compares with $9.53 billion if the two carriers had been combined a year earlier. Delta alone posted revenue of $5.72 billion in the third quarter of last year.

Like other airlines, Delta has seen a deep drop in travel demand, particularly in international travel and high-yield, business-class tickets. That has offset the benefit of lower fuel prices. In its bankruptcy reorganization and merger with Northwest Airlines, Delta secured one of the lowest cost bases in the industry and has enough cast to carry it through year-end. But in August, it said it would need to cut costs further, saying it would lay off management workers and trim spending with vendors and professional services.

Delta said it expects operating margin to break even for the fourth quarter.

 

There is the Q3 2009 Delta Air Lines, Inc Earnings Conference Call at Investor Relations - Event Details

today (Oct 22nd) at 10am, EDT.

 

Anybody know who that was for?

 

• Delta's 2010 system capacity is expected to decline approximately 3% compared to 2009.

 

I wonder if they have accounted for this in regards to current staffing?