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8-K - CURRENT REPORT ON FORM 8-K - DELTA AIR LINES, INC.delta_8k-030212.htm

 

 

Exhibit 99.1

 

 

 

FOR IMMEDIATE DISTRIBUTION

 

CONTACT:Corporate Communications

404-715-2554, media@delta.com

 

Investor Relations

404-715-2170

 

Delta Reports February Operational and Financial Performance

 

ATLANTA, March 2, 2012 – Delta Air Lines (NYSE: DAL) today reported its operational and financial performance for February 2012.

 

February’s consolidated passenger unit revenue (PRASM) increased 13.0 percent compared to the prior year period, driven by a strong increase in Atlantic load factor and Pacific yields. The increase in capacity resulting from Delta’s 2.7 point improvement in completion factor due to exceptional weather and operating performance negatively impacted PRASM by one point from previous expectations.

 

Delta employees delivered excellent operational performance for our customers. The company’s preliminary DOT on-time arrival rate of 90.0 percent was 11.5 points higher year-over-year and its mainline completion factor increased 2.7 points to 99.7 percent.

 

The company’s financial and operational performance is detailed below.

 

 

Preliminary Financial and Operational Results – February 2012

 

Consolidated PRASM change year over year 13.0%
Consolidated average fuel price $3.35
On-time performance (preliminary DOT A14) 90.0%
Mainline completion factor 99.7%

 

Note: Fuel price includes taxes, transportation, settled hedges, and hedge premiums, but excludes mark to market adjustments on open hedges.

 

 

Delta Air Lines serves more than 160 million customers each year. During the past year, Delta was named domestic “Airline of the Year” by the readers of Travel Weekly magazine, was named the “Top Tech-Friendly U.S. Airline” by PCWorld magazine for its innovation in technology and won the Business Travel News Annual Airline Survey. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 343 destinations in 62 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry’s leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline’s service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $2 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

 

 

 

 

Delta Air Lines  
Monthly Traffic Results (a)  
                 
                 
      February 2012   February 2011   Change  
                 
RPMs (000):            
  Domestic 7,971,279   7,774,093   2.5%  
    Delta Mainline 6,260,805   6,157,014   1.7%  
    Regional 1,710,474   1,617,079   5.8%  
  International 5,017,975   4,889,282   2.6%  
    Latin America 1,092,134   1,065,910   2.5%  
    Delta Mainline 1,081,317   1,051,962   2.8%  
    Regional 10,816   13,948   (22.5%)  
    Atlantic 2,182,293   2,116,965   3.1%  
    Pacific 1,743,549   1,706,407   2.2%  
  Total System 12,989,254   12,663,375   2.6%  
                 
ASMs (000):            
  Domestic 10,022,968   10,081,154   (0.6%)  
    Delta Mainline 7,709,119   7,824,466   (1.5%)  
    Regional 2,313,849   2,256,688   2.5%  
  International 6,872,872   7,107,748   (3.3%)  
    Latin America 1,453,213   1,463,110   (0.7%)  
    Delta Mainline 1,434,052   1,440,704   (0.5%)  
    Regional 19,161   22,406   (14.5%)  
    Atlantic 3,236,683   3,461,843   (6.5%)  
    Pacific 2,182,976   2,182,795   0.0%  
  Total System 16,895,840   17,188,902   (1.7%)  
                 
Load Factor:            
  Domestic 79.5%   77.1%             2.4 pts
    Delta Mainline 81.2%   78.7%             2.5 pts
    Regional 73.9%   71.7%             2.2 pts
  International 73.0%   68.8%             4.2 pts
    Latin America 75.2%   72.9%             2.3 pts
    Delta Mainline 75.4%   73.0%             2.4 pts
    Regional 56.5%   62.3%            (5.8) pts
    Atlantic 67.4%   61.2%             6.3 pts
    Pacific 79.9%   78.2%             1.7 pts
  Total System 76.9%   73.7%             3.2 pts
                 
Mainline Completion 99.7%   97.0%   2.7 pts
Factor            
                 
Passengers Boarded      11,421,838   10,968,319   4.1%  
                 
Cargo Ton Miles (000): 185,397   186,490   (0.6%)  
                 
Endnote:            
a Results are preliminary and include flights operated under contract carrier arrangements.

 

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Delta Air Lines

 
Year to Date Traffic Results (a)  
                 
                 
      February 2012   February 2011   Change  
                 
RPMs (000):            
  Domestic 16,114,672          15,939,873   1.1%  
    Delta Mainline 12,700,095   12,582,757   0.9%  
    Regional 3,414,577   3,357,116   1.7%  
  International 10,784,518   10,845,351   (0.6%)  
    Latin America 2,268,088   2,266,735   0.1%  
    Delta Mainline 2,243,610   2,236,796   0.3%  
    Regional 24,478   29,939   (18.2%)  
    Atlantic 4,794,660   4,844,265   (1.0%)  
    Pacific 3,721,770   3,734,351   (0.3%)  
  Total System 26,899,190   26,785,224   0.4%  
                 
ASMs (000):            
  Domestic 20,560,555   20,986,791   (2.0%)  
    Delta Mainline 15,837,275   16,238,676   (2.5%)  
    Regional 4,723,280   4,748,115   (0.5%)  
  International 14,288,419   14,968,933   (4.5%)  
    Latin America 2,912,076   2,993,197   (2.7%)  
    Delta Mainline 2,870,926   2,945,491   (2.5%)  
    Regional 41,150   47,706   (13.7%)  
    Atlantic 6,759,696   7,362,532   (8.2%)  
    Pacific 4,616,647   4,613,204   0.1%  
  Total System 34,848,974   35,955,724   (3.1%)  
                 
Load Factor:            
  Domestic 78.4%   76.0%   2.4 pts
    Delta Mainline 80.2%   77.5%   2.7 pts
    Regional 72.3%   70.7%   1.6 pts
  International 75.5%   72.5%   3.0 pts
    Latin America 77.9%   75.7%   2.2 pts
    Delta Mainline 78.1%   75.9%   2.2 pts
    Regional 59.5%   62.8%   (3.3) pts
    Atlantic 70.9%   65.8%   5.1 pts
    Pacific 80.6%   80.9%   (0.3) pts
  Total System 77.2%   74.5%   2.7 pts
                 
Passengers Boarded 23,064,446          22,541,372   2.3%  
                 
Cargo Ton Miles (000): 359,590               369,319   (2.6%)  
                 
                 
Endnote:            
a Results are preliminary and include flights operated under contract carrier arrangements.
                 
                             

 

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Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

 

 

 

February 2012

 

Delta sometimes uses information that is derived from its Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Certain of this information are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. The non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

 

· Delta adjusts for mark to market (“MTM”) adjustments for fuel hedges recorded in periods other than the settlement period in order to evaluate the company’s financial results in the period shown.

 

 

 

    February 2012
(preliminary)
Average price per fuel gallon including fuel expense incurred under contract carrier arrangements   $3.12
MTM adjustments for fuel hedges recorded in periods other than the settlement period   0.23
Average price per fuel gallon adjusted for MTM adjustments for fuel hedges recorded in periods other than the settlement period   $3.35