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Press release from PR Newswire

Delta Reports Financial and Operating Performance for September 2013

Wednesday, October 02, 2013

Delta Reports Financial and Operating Performance for September 2013

09:00 EDT Wednesday, October 02, 2013

ATLANTA, Oct. 2, 2013 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial and operating performance for September 2013.

(Logo: http://photos.prnewswire.com/prnh/20090202/DELTALOGO)

Consolidated passenger unit revenue (PRASM) for the month of September increased 5.5% year over year, with particularly strong results in the trans-Atlantic and domestic entities.  The negative impact of yen devaluation lessened from its peak in August, resulting in 1 point of system PRASM pressure for the month.  

Delta completed 99.9 percent of its flights in September and ran an on-time arrival rate of 90.2 percent.

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

 

Preliminary Financial and Operating Results

 

September consolidated PRASM change year over year

5.5%

Projected September quarter fuel price per gallon, adjusted

$2.98 - $3.03

September mainline completion factor

99.9%

September on-time performance (preliminary DOT A14)

90.2%

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 312 destinations in 56 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, 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 October 2, 2013, and which we have no current intention to update.

 

Monthly Traffic Results (a)

Year to Date Traffic Results (a)

Sep 2013

Sep 2012

Change

Sep 2013

Sep 2012

Change

RPMs (000):

Domestic

9,085,654

8,992,849

1.0%

86,919,620

87,188,339

(0.3%)

Delta Mainline

7,355,432

7,223,611

1.8%

70,388,843

69,374,768

1.5%

Regional

1,730,222

1,769,238

(2.2%)

16,530,777

17,813,571

(7.2%)

International

6,988,736

6,800,779

2.8%

61,866,526

60,510,702

2.2%

Latin America

1,072,904

943,192

13.8%

11,540,807

10,550,686

9.4%

Delta Mainline

1,060,557

931,728

13.8%

11,388,934

10,425,544

9.2%

       Regional

12,347

11,464

7.7%

151,873

125,142

21.4%

Atlantic

3,804,649

3,724,566

2.2%

31,431,058

31,221,356

0.7%

Pacific

2,111,183

2,133,021

(1.0%)

18,894,661

18,738,660

0.8%

Total System

16,074,391

15,793,628

1.8%

148,786,146

147,699,041

0.7%

ASMs (000):

Domestic

11,241,572

11,165,564

0.7%

104,137,871

103,372,965

0.7%

Delta Mainline

8,959,978

8,883,557

0.9%

82,766,792

80,926,875

2.3%

Regional

2,281,594

2,282,007

(0.0%)

21,371,080

22,446,090

(4.8%)

International

8,055,829

7,813,852

3.1%

72,654,529

72,700,388

(0.1%)

Latin America

1,317,962

1,140,743

15.5%

13,733,950

12,970,339

5.9%

Delta Mainline

1,302,167

1,123,851

15.9%

13,537,498

12,784,095

5.9%

       Regional

15,794

16,892

(6.5%)

196,451

186,244

5.5%

Atlantic

4,200,869

4,142,202

1.4%

36,635,513

37,145,172

(1.4%)

Pacific

2,536,999

2,530,907

0.2%

22,285,067

22,584,877

(1.3%)

Total System

19,297,402

18,979,416

1.7%

176,792,400

176,073,353

0.4%

Load Factor:

Domestic

80.8%

80.5%

0.3

pts

83.5%

84.3%

(0.8)

pts

Delta Mainline

82.1%

81.3%

0.8

pts

85.0%

85.7%

(0.7)

pts

Regional

75.8%

77.5%

(1.7)

pts

77.4%

79.4%

(2.0)

pts

International

86.8%

87.0%

(0.2)

pts

85.2%

83.2%

2.0

pts

Latin America

81.4%

82.7%

(1.3)

pts

84.0%

81.3%

2.7

pts

Delta Mainline

81.4%

82.9%

(1.5)

pts

84.1%

81.6%

2.5

pts

       Regional

78.2%

67.9%

10.3

pts

77.3%

67.2%

10.1

pts

Atlantic

90.6%

89.9%

0.7

pts

85.8%

84.1%

1.7

pts

Pacific

83.2%

84.3%

(1.1)

pts

84.8%

83.0%

1.8

pts

Total System

83.3%

83.2%

0.1

pts

84.2%

83.9%

0.3

pts

Passengers Boarded

13,246,604

13,124,694

0.9%

pts

124,692,504

125,067,176

(0.3%)

Mainline Completion Factor

99.9%

99.8%

0.1

pts

Cargo Ton Miles (000):

201,568

202,709

(0.6%)

1,743,704

1,795,432

(2.9%)

a  Results include flights operated under contract carrier arrangements

Non-GAAP Reconciliation

Delta sometimes uses information ("non-GAAP financial measures") that is derived from our Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may 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 excludes mark-to-market adjustments for fuel hedges recorded in periods other than the settlement period ("MTM adjustments") from average price per fuel gallon because excluding these adjustments allows investors to better understand and analyze Delta's costs for the periods reported. MTM adjustments are based on market prices as of the end of the reporting period for contracts settling in future periods. Such market prices are not necessarily indicative of the actual future value of the underlying hedge in the contract settlement period.

 

Average Fuel Price Per Gallon

(Projected)

Three Months Ended,

Consolidated

September 30, 2013

Average price per fuel gallon(1)

$2.71 to $2.76

MTM adjustments

0.27

Average price per fuel gallon, adjusted

$2.98 to $3.03

(1) Includes fuel expense incurred under contract carrier arrangements and the impact of fuel hedge activity

 

SOURCE Delta Air Lines

For further information: Corporate Communications, 404-715-2554, news archive at news.delta.com, or Investor Relations, 404-715-2170

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