EX-99.2 3 delta_8k-ex9902.htm PRESS RELEASE

Exhibit 99.2

 

 

 

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Delta Reports Financial and Operating Performance for August 2014

 

ATLANTA, Sep. 3, 2014 – Delta Air Lines (NYSE: DAL) today reported financial and operating performance for August 2014.

 

Consolidated passenger unit revenue (PRASM) for the month of August increased 2.0 percent year over year driven by continued strength in domestic markets, which offset an estimated 1 point of negative PRASM pressure from the impact of events in Russia, the Middle East and Africa.

 

Delta’s solid operating performance continued through August, with a monthly completion factor of 99.6 percent and an on-time arrival rate of 84.3 percent.

 

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

 

Preliminary Financial and Operating Results

 

August consolidated PRASM change year over year 2.0%
Projected September quarter PRASM change year over year 2% – 3%
Projected September quarter fuel price per gallon, adjusted $2.90 - $2.95
August mainline completion factor 99.6%
August on-time performance (preliminary DOT A14) 84.3%

 

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 nearly 165 million customers each year. This year, Delta was named the 2014 Airline of the Year by Air Transport World magazine and was named to FORTUNE magazine’s 50 Most Admired Companies, in addition to being named the most admired airline for the third time in four years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 323 destinations in 59 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 as well as a newly formed 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, New York-LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, 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, Facebook.com/delta and Delta’s blog takingoff.delta.com.

 

 

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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 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; 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 war risk 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, 2013. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of Sep. 3, 2014, and which we have no current intention to update.

 

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    Monthly Traffic Results (a)    Year to Date Traffic Results (a) 
                                     
    Aug 2014    Aug 2013    Change       Aug 2014    Aug 2013    Change    
RPMs (000):                                    
Domestic   11,430,396    11,007,019    3.8%      81,271,683    77,839,334    4.4%   
Delta Mainline   9,502,651    8,957,877    6.1%      66,814,234    63,037,203    6.0%   
Regional   1,927,745    2,049,142    (5.9%)      14,457,449    14,802,131    (2.3%)   
International   8,604,080    8,430,946    2.1%      56,667,115    54,882,114    3.3%   
Latin America   1,640,124    1,410,147    16.3%      12,597,620    10,476,847    20.2%   
Delta Mainline   1,612,799    1,396,239    15.5%      12,347,640    10,337,205    19.4%   
Regional   27,325    13,908    96.5%      249,980    139,642    79.0%   
Atlantic   4,556,781    4,553,909    0.1%      27,397,122    27,620,247    (0.8%)   
Pacific   2,407,175    2,466,890    (2.4%)      16,672,373    16,785,020    (0.7%)   
Total System   20,034,476    19,437,965    3.1%      137,938,799    132,721,448    3.9%   
                                     
ASMs (000):                                    
Domestic   13,109,690    12,899,621    1.6%      94,478,093    92,899,421    1.7%   
Delta Mainline   10,739,107    10,313,198    4.1%      76,427,261    73,806,896    3.6%   
Regional   2,370,584    2,586,423    (8.3%)      18,050,832    19,092,525    (5.5%)   
International   9,756,925    9,367,058    4.2%      66,928,671    64,597,228    3.6%   
Latin America   1,909,225    1,602,845    19.1%      14,984,554    12,425,855    20.6%   
Delta Mainline   1,874,524    1,586,070    18.2%      14,656,258    12,245,033    19.7%   
Regional   34,701    16,775    106.9%      328,296    180,822    81.6%   
Atlantic   5,136,100    4,974,839    3.2%      32,275,541    32,422,265    (0.5%)   
Pacific   2,711,600    2,789,374    (2.8%)      19,668,575    19,749,108    (0.4%)   
Total System   22,866,615    22,266,679    2.7%      161,406,764    157,496,649    2.5%   
                                     
Load Factor:                                    
Domestic   87.2%   85.3%   1.9  pts    86.0%   83.8%   2.2  pts 
Delta Mainline   88.5%   86.9%   1.6  pts    87.4%   85.4%   2.0  pts 
Regional   81.3%   79.2%   2.1  pts    80.1%   77.5%   2.6  pts 
International   88.2%   90.0%   (1.8) pts    84.7%   85.0%   (0.3) pts 
Latin America   85.9%   88.0%   (2.1) pts    84.1%   84.3%   (0.2) pts 
Delta Mainline   86.0%   88.0%   (2.0) pts    84.2%   84.4%   (0.2) pts 
Regional   78.7%   82.9%   (4.2) pts    76.1%   77.2%   (1.1) pts 
Atlantic   88.7%   91.5%   (2.8) pts    84.9%   85.2%   (0.3) pts 
Pacific   88.8%   88.4%   0.4  pts    84.8%   85.0%   (0.2) pts 
Total System   87.6%   87.3%   0.3  pts    85.5%   84.3%   1.2  pts 
                                     
Mainline Completion Factor   99.6%   99.9%   (0.3) pts                   
                                     
Passengers Boarded   16,117,881    15,664,509    2.9%      115,618,836    111,449,948    3.7%   
                                     
Cargo Ton Miles (000):   213,647    202,739    5.4%      1,559,806    1,542,332    1.1%   

 

a Results include flights operated under contract carrier arrangements

 

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