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

Exhibit 99.1

 

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CONTACT:Corporate Communications

404-715-2554

news archive at news.delta.com

 

Investor Relations

404-715-2170

 

 

Delta Reports Financial and Operating Performance for July 2013

 

ATLANTA, Aug. 2, 2013 – Delta Air Lines (NYSE: DAL) today reported financial and operating performance for July 2013.

 

Consolidated passenger unit revenue (PRASM) for the month of July increased 3.0% year over year, led by improvement in Delta’s hubs in Atlanta and New York and solid performance in trans-Atlantic markets.  System PRASM pressure from yen devaluation continues and drove 1 point of negative impact for the month. 

 

Delta completed 99.5 percent of its flights in July and ran an on-time arrival rate of 74.5% percent.

 

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

 

 

Preliminary Financial and Operating Results

 

July consolidated PRASM change year over year 3.0%
Projected September quarter fuel price per gallon, adjusted $3.05 - $3.10
July mainline completion factor 99.5%
July on-time performance (preliminary DOT A14) 74.5%

 

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

 

Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2013 World’s Most Admired Companies airline industry list, topping the list for the second time in three years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 327 destinations in 63 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and 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 15,000 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. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Additional information is available on delta.com, Twitter @Delta, Google.com/+Delta and Facebook.com/delta

 

Forward Looking Statements

Statements in this press 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 availability of aircraft fuel; the impact of posting collateral in connection with our fuel hedge contracts; the impact of significant funding obligations with respect to defined benefit pension plans; the impact that our indebtedness may 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; interruptions or disruptions in service at one of our hub airports; our dependence on technology in our operations; disruptions or security breaches of our information technology infrastructure; the ability of our credit card processors to take significant holdbacks in certain circumstances; the possible effects of accidents involving our aircraft; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; failure or inability of insurance to cover a significant liability at the Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain management and key employees; our ability to use net operating losses to offset future taxable income; competitive conditions in the airline industry; the effects of extensive government regulation on our business; the effects of terrorist attacks; the effects of the rapid spread of contagious illnesses; and the costs associated with insurance.  

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 Dec. 31, 2012 and our quarterly report on Form 10-Q for the quarterly period ended June 30, 2013.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of August 2, 2013, and which we have no current intention to update.

 
 

 

 

  Monthly Traffic Results (a)    

 

Year to Date Traffic Results (a)

 
                       
  July 2013  July 2012  Change    July 2013  July 2012  Change   
                             
RPMs (000):                            
Domestic  11,062,888   11,076,380   (0.1%)    66,826,976   67,255,753   (0.6%)  
Delta Mainline  9,065,055   8,931,773   1.5%     54,075,533   53,328,713   1.4%   
Regional  1,997,833   2,144,607   (6.8%)    12,751,443   13,927,040   (8.4%)  
International  8,354,897   8,021,972   4.2%     46,446,842   45,713,945   1.6%   
Latin America  1,504,721   1,364,616   10.3%     9,057,754   8,400,227   7.8%   
Delta Mainline  1,489,338   1,349,361   10.4%     8,932,136   8,299,949   7.6%   
Regional  15,382   15,255   0.8%     125,618   100,278   25.3%   
Atlantic  4,588,508   4,362,826   5.2%     23,072,500   23,200,398   (0.6%)  
Pacific  2,261,668   2,294,530   (1.4%)    14,316,588   14,113,320   1.4%   
Total System  19,417,785   19,098,352   1.7%     113,273,819   112,969,698   0.3%   
                             
                             
ASMs (000):                            
Domestic  12,861,310   12,615,920   1.9%     79,996,662   79,652,736   0.4%   
Delta Mainline  10,370,044   10,018,777   3.5%     63,493,616   62,083,425   2.3%   
Regional  2,491,266   2,597,143   (4.1%)    16,503,047   17,569,311   (6.1%)  
International  9,465,622   9,126,712   3.7%     55,231,641   55,880,123   (1.2%)  
Latin America  1,687,384   1,517,741   11.2%     10,813,143   10,438,945   3.6%   
Delta Mainline  1,669,218   1,498,350   11.4%     10,649,261   10,288,881   3.5%   
Regional  18,166   19,391   (6.3%)    163,882   150,064   9.2%   
Atlantic  5,096,435   4,878,565   4.5%     27,459,804   28,200,318   (2.6%)  
Pacific  2,681,803   2,730,406   (1.8%)    16,958,693   17,240,860   (1.6%)  
Total System  22,326,932   21,742,632   2.7%     135,228,303   135,532,859   (0.2%)  
                             
                             
Load Factor:                            
Domestic  86.0%   87.8%   (1.8) pts  83.5%   84.4%   (0.9) pts
Delta Mainline  87.4%   89.2%   (1.8) pts  85.2%   85.9%   (0.7) pts
Regional  80.2%   82.6%   (2.4) pts  77.3%   79.3%   (2.0) pts
International  88.3%   87.9%   0.4  pts  84.1%   81.8%   2.3  pts
Latin America  89.2%   89.9%   (0.7) pts  83.8%   80.5%   3.3  pts
Delta Mainline  89.2%   90.1%   (0.9) pts  83.9%   80.7%   3.2  pts
Regional  84.7%   78.7%   6.0  pts  76.7%   66.8%   9.9  pts
Atlantic  90.0%   89.4%   0.6  pts  84.0%   82.3%   1.7  pts
Pacific  84.3%   84.0%   0.3  pts  84.4%   81.9%   2.5  pts
Total System  87.0%   87.8%   (0.8) pts  83.8%   83.4%   0.4  pts
                             
Mainline Completion Factor  99.5%   99.5%   0.0  pts              
                             
Passengers Boarded  15,643,927   15,681,630   (0.2%)    95,781,340   96,381,873   (0.6%)  
                             
Cargo Ton Miles (000):  200,996   211,251   (4.9%)    1,340,324   1,386,928   (3.4%)  

 

Endnote:

a  Results include flights operated under contract carrier arrangements.