Attached files

file filename
8-K - FORM 8-K - DELTA AIR LINES, INC.delta_8k.htm

Exhibit 99.1

 

 

 

 

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 2016

 

ATLANTA, August 2, 2016 – Delta Air Lines (NYSE: DAL) today reported financial and operating performance for July 2016.

 

Consolidated passenger unit revenue (PRASM) for the month of July declined 7.0% year over year, consistent with the company's expectations for the quarter. This result was driven by continued close-in domestic yield weakness, the ongoing supply-demand imbalance in the Transatlantic, and headwinds from the company’s Yen hedge positions.

 

 

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

 

 

Preliminary Financial and Operating Results

 

July consolidated PRASM change year over year (7.0)%
July mainline completion factor 99.7%
July on-time performance (preliminary DOT A14) 81.6%

 

 

 

Delta Air Lines serves nearly 180 million customers each year. In 2016, Delta was named to Fortune’s top 50 Most Admired Companies in addition to being named the most admired airline for the fifth time in six years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented five consecutive years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 335 destinations in 61 countries on six continents. Headquartered in Atlanta, Delta employs more than 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry’s leading transatlantic joint venture with Air France-KLM and Alitalia as well as a joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St. Paul, New York-JFK and LaGuardia, London-Heathrow, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products and services, and technology to enhance the customer experience in the air and on the ground. Additional information is available on the Delta News Hub, as well as delta.com, Twitter @DeltaNewsHub, Google.com/+Delta, and Facebook.com/delta.

 

 

 

 1 

 

 

 

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 impact of rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with our fuel hedge contracts; the availability of aircraft fuel; the effects of terrorist attacks or geopolitical conflict; the possible effects of accidents involving our aircraft; 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 or gateway airports; disruptions or security breaches of our information technology infrastructure; our dependence on technology in our operations; 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 Monroe’s 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; competitive conditions in the airline industry; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdom related to the likely exit of the United Kingdom from the European Union; and the effects of the rapid spread of contagious illnesses.

 

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, 2015 and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of Aug. 2, 2016, and which we have no current intention to update.

 

 

 

 

 

 

 

 

 

 

 2 

 

 

Monthly Traffic Results (a)    Year to Date Traffic Results (a)   
July 2016  July 2015  Change  July 2016  July 2015  Change   
                       
RPMs (000):                      
Domestic  12,427,419   12,203,104   1.8%     76,272,256   73,052,397   4.4%    
Delta Mainline  10,572,602   10,291,665   2.7%     64,211,382   60,961,185   5.3%    
Regional  1,854,817   1,911,439   (3.0%)     12,060,874   12,091,212   (0.3%)   
International  8,726,177   8,702,193   0.3%     49,010,342   48,828,728   0.4%    
Latin America  1,831,957   1,805,937   1.4%     12,468,954   11,803,174   5.6%    
Delta Mainline  1,781,201   1,770,720   0.6%     12,122,750   11,579,977   4.7%    
Regional  50,756   35,217   44.1%     346,203   223,197   55.1%    
Atlantic  4,743,845   4,637,013   2.3%     22,976,541   22,975,377   0.0%    
Pacific  2,150,375   2,259,243   (4.8%)    13,564,848   14,050,177   (3.5%)   
Total System  21,153,597   20,905,297   1.2%     125,282,599   121,881,125   2.8%    
                              
ASMs (000):                             
Domestic  14,350,955   13,777,995   4.2%     89,675,606   85,075,138   5.4%    
Delta Mainline  12,109,575   11,498,826   5.3%     74,568,491   70,021,319   6.5%    
Regional  2,241,380   2,279,169   (1.7%)    15,107,116   15,053,819   0.4%    
International  9,925,419   9,994,532   (0.7%)    58,718,380   59,231,340   (0.9%)   
Latin America  2,025,063   2,038,284   (0.6%)    14,751,975   14,290,935   3.2%    
Delta Mainline  1,967,299   1,998,394   (1.6%)    14,322,257   14,003,946   2.3%    
Regional  57,764   39,890   44.8%     429,717   286,989   49.7%    
Atlantic  5,526,327   5,407,534   2.2%     28,513,506   28,451,556   0.2%    
Pacific  2,374,029   2,548,714   (6.9%)    15,452,899   16,488,849   (6.3%)   
Total System  24,276,374   23,772,527   2.1%     148,393,986   144,306,478   2.8%    
                              
Load Factor:                             
Domestic  86.6%   88.6%   (2.0) pts  85.1%   85.9%   (0.8) pts 
Delta Mainline  87.3%   89.5%   (2.2) pts  86.1%   87.1%   (1.0) pts 
Regional  82.8%   83.9%   (1.1) pts  79.8%   80.3%   (0.5) pts 
International  87.9%   87.1%   0.8  pts  83.5%   82.4%   1.1  pts 
Latin America  90.5%   88.6%   1.9  pts  84.5%   82.6%   1.9  pts 
Delta Mainline  90.5%   88.6%   1.9  pts  84.6%   82.7%   1.9  pts 
Regional  87.9%   88.3%   (0.4) pts  80.6%   77.8%   2.8  pts 
Atlantic  85.8%   85.8%   0.0  pts  80.6%   80.8%   (0.2) pts 
Pacific  90.6%   88.6%   2.0  pts  87.8%   85.2%   2.6  pts 
Total System  87.1%   87.9%   (0.8) pts  84.4%   84.5%   (0.1) pts 
                              
Mainline Completion Factor  99.7%   99.9%   (0.2) pts               
                              
Passengers Boarded  17,109,491   17,103,034   0.0%   107,372,749   103,754,353   3.5%    
                              
Cargo Ton Miles (000):  170,014   192,859   (11.8%)  1,140,096   1,285,696   (11.3%)   

 

 

a Results include flights operated under contract carrier arrangements

 

 

 

 

 3