Delta Air Lines Reports June 2009 Quarter Financial Results

July 22, 2009

ATLANTA, July 22 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the June 2009 quarter. Key points include:

  • Delta's net loss for the June 2009 quarter was $199 million, excluding $58 million in merger-related expenses(1), or $0.24 loss per share. Delta's reported net loss for the June 2009 quarter was $257 million, or $0.31 per share.
  • Excluding merger-related expenses and $390 million in realized fuel hedge losses, Delta's net profit was $191 million.
  • In the June 2009 quarter, consolidated unit costs, excluding fuel and special items, were up 2%, on a 7% decline in system capacity.
  • Delta has achieved more than $200 million in synergy benefits in the first half of 2009 from its merger with Northwest Airlines.
  • Delta generated $834 million in operating cash flow during the quarter and had $5.4 billion in unrestricted liquidity as of June 30, 2009.

"The industry faces substantial challenges from unprecedented revenue declines and volatile fuel prices, but Delta is the best positioned network carrier to weather these economic conditions. I want to thank the Delta people for their hard work and dedication during these difficult times," said Richard Anderson, Delta's chief executive officer. "Delta has more flexibility and a proven track record of acting quickly to adapt our business to economic challenges. We continue to focus on cost discipline and preserving liquidity, while adjusting our fleet and network and accelerating merger benefits."

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Revenue Environment

Delta's operating revenue on a GAAP(2) basis grew 27% to $7 billion in the June 2009 quarter compared to the prior year period as a result of its merger with Northwest Airlines. On a combined basis(3), total operating revenue declined $2.1 billion, or 23%, and total unit revenue (RASM) declined 17%.

                      2Q09    2Q08    Incr    2Q09       2Q08     Incr
    (in millions)    GAAP(2) GAAP(2) (Decr)  GAAP(2) Combined(3) (Decr)
                     ------- ------- ------  ------- ----------- ------

     Passenger       $5,903   $4,770    24%   $5,903      $7,914   (25%)
     Cargo              173      160     8%      173         373   (54%)
     Other, net         924      569    62%      924         801    15%
                     ------   ------          ------      ------
     Total Operating
      Revenue        $7,000   $5,499    27%   $7,000      $9,088   (23%)
                     ------   ------          ------      ------

On a combined basis(3):

  • Passenger revenue decreased 25%, or $2 billion, compared to the prior year period due to the global economic recession, the estimated $125 million to $150 million impact of the H1N1 virus and a 7% capacity reduction. Passenger unit revenue (PRASM) declined 20%, driven by a 19% decline in yield.
  • Cargo revenue declined 54%, or $200 million, reflecting lower volume and yield due to the recession. Freighter capacity was 50% lower year over year, as Delta continues to reduce capacity to achieve its plan of discontinuing all freighter flying by the end of 2009.
  • Other, net revenue grew 15%, or $123 million, primarily due to increased baggage fee revenue and improved terms from Delta's affinity card agreement with American Express.

Comparisons of revenue-related statistics are as follows:

                                             Increase (Decrease)
                                    2Q09 (GAAP(2)) versus 2Q08 (Combined(3))
                                    ----------------------------------------
                        2Q09 ($M)   Change    Unit
                         GAAP(2)     YOY    Revenue     Yield   Capacity
                        ---------   ------  --------    -----   --------

     Passenger Revenue
         Domestic          $2,723   (24.8%)  (18.0%)   (18.6%)   (8.3%)
         Atlantic           1,131   (29.5%)  (26.2%)   (26.4%)   (4.5%)
         Latin America        287   (21.4%)  (18.1%)   (14.6%)   (4.0%)
         Pacific              423   (37.2%)  (25.3%)   (16.8%)  (15.9%)
                            -----   ------   ------   -------   ------
         Total mainline     4,564   (27.2%)  (20.9%)   (20.1%)   (7.9%)
         Regional           1,339   (18.8%)  (18.7%)   (17.8%)   (0.2%)
                            -----   ------   ------   -------    -----
         Consolidated      $5,903   (25.4%)  (19.9%)   (19.1%)   (6.9%)

"The global recession continues to significantly impact our business and we are not planning for any meaningful recovery this year," said Edward Bastian, Delta's president. "In view of this revenue environment, we are focused on maintaining high levels of liquidity, generating a revenue premium, and maintaining our unit cost advantage."

Cost Discipline

In the June 2009 quarter, Delta's operating expense on a GAAP basis increased $413 million year over year. This increase is primarily due to the impact of the company's merger with Northwest Airlines, partially offset by lower fuel price in the June 2009 quarter, and a $1.2 billion intangibles impairment charge recorded in the June 2008 quarter. On a combined basis, excluding merger-related expenses and prior year special items, operating expense decreased $1.9 billion due to significantly lower fuel expense.

    (in millions,             2Q09    2Q08    Incr   2Q09      2Q08      Incr
     except where noted)     GAAP(2) GAAP(3) (Decr) GAAP(2) Combined(3) (Decr)
                             ------- ------- ------ ------- ----------- ------

    Operating expense        $6,999  $6,586    6%   $6,999    $10,474    (33%)
    Operating expense
     ex-special items        $6,941  $5,286   31%   $6,941     $8,850    (22%)
    Consolidated CASM (cents) 11.55   16.66  (31%)   11.55      15.99    (28%)
    Consolidated CASM
     ex-fuel expense and
     special items (cents)     8.06    7.98    1%     8.06       7.88      2%
    Mainline CASM (cents)     10.62   15.52  (32%)   10.62      15.08    (30%)
    Mainline CASM ex-fuel
     expense and special
     items (cents)             7.20    6.88    5%     7.20       7.06      2%
    Non-operating expense     ($254)   ($76)   NM    ($254)     ($155)    64%

On a combined basis:

  • Both consolidated and mainline unit cost (CASM(4)), excluding merger-related and fuel expenses and prior year special items, increased 2% year over year in the June 2009 quarter due to higher pension expense.
  • Non-operating expenses excluding special items increased $99 million in the June 2009 quarter primarily due to non-cash debt discount amortization.

Liquidity Position

As of June 30, 2009, Delta had $5.4 billion in unrestricted liquidity, including $4.9 billion in cash, cash equivalents and short-term investments and $500 million available under an undrawn line of credit. Delta generated $834 million in cash from operations, and $509 million in free cash flow for the quarter.

Net investing activities during the quarter were $325 million. In addition, during the quarter, debt and capital lease payments totaled approximately $400 million, and the company issued $330 million in debt related to aircraft purchases.

"In a difficult economic environment, Delta generated $834 million of cash from operations in the June quarter, allowing us to fund our debt obligations, make investments in our business, and increase our liquidity position," said Hank Halter, chief financial officer. "In addition, the hard work of the Delta people in achieving merger synergies and their focus on cost discipline resulted in a consolidated non-fuel CASM increase of only 2% compared to the prior year on a 7% capacity reduction."

Merger with Northwest

Delta has achieved more than $200 million in synergy benefits from its merger with Northwest Airlines in the first half of 2009, and expects to generate at least $500 million in total synergies in 2009. Synergies achieved year to date have improved revenue from increased market share, Delta's affinity card agreement and alignment of frequent flyer programs. In addition, costs have been reduced through streamlined overhead, facilities and technology, elimination of dedicated freighter flying and supply chain savings.

The company is on track in its integration efforts and continues to expect it will achieve its Single Operating Certificate by the end of 2009. Recent achievements include:

  • Announcing a transatlantic joint venture with Air France/KLM with an estimated $12 billion in annual revenue which will result in more flight choices, frequencies, convenient flight schedules, competitive fares and harmonized services for customers. When fully implemented in 2012, the joint venture is expected to generate approximately $200 million in annual incremental pre-tax profits for Delta;
  • Using the Delta and Northwest fleets more effectively across the combined network by launching additional cross-fleeting markets, such as New York-JFK to Narita;
  • Completing the integration and re-branding of more than 200 airports, or more than 80% of total stations;
  • Beginning pilot and flight attendant training to prepare for single carrier operations;
  • Harmonizing onboard products for both domestic and international service, including regional carriers; and
  • Painting 120 pre-merger Northwest aircraft in Delta livery.

Fuel Price and Related Hedges

Delta hedged 76% of its fuel consumption for the June 2009 quarter, which drove $390 million in realized fuel hedge losses for the period. As a result, Delta's average fuel price(5) for the June 2009 quarter was $2.06 per gallon, which includes $0.33 per gallon associated with fuel hedge losses.

Delta Air Lines is the world's No. 1 airline. From its hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-Narita, Delta, its Northwest subsidiary and Delta Connection carriers offer service to 382 destinations in 69 countries and serves more than 170 million passengers each year. Delta's marketing alliances allow customers to earn and redeem either SkyMiles or WorldPerks on more than 16,000 daily flights offered by SkyTeam and other partners. Delta's more than 70,000 employees worldwide are reshaping the aviation industry as the only U.S. airline to offer a full global network. Customers can check in for flights, print boarding passes, check bags and flight status at delta.com.

Endnotes

(1) Note A to the attached Consolidated Statements of Operations provides a reconciliation of non-GAAP financial measures used in this release and provides the reasons management uses those measures.

(2) Delta's financial results under generally accepted accounting principles (GAAP) include the results of Northwest Airlines for the periods following the completion of the merger, which occurred on Oct. 29, 2008. Unless otherwise indicated, Delta presents financial results on a GAAP basis which reflects both Delta and Northwest financial results for the June 2009 quarter, but only Delta standalone results for the June 2008 quarter. The company also presents financial and operating information on a "combined basis", which management believes is more meaningful for comparing year-over-year performance. The combined basis compares Delta's GAAP results for the June 2009 quarter to the combined results of Delta and Northwest for the June 2008 quarter.

(3) Combined financial information includes the combined results of Delta and Northwest for the June 2008 quarter.

(4) Delta excludes from mainline unit cost expenses for aircraft maintenance and staffing services which it provides to third parties because these expenses are not related to the generation of a seat mile. Similarly, Delta excludes from passenger unit revenues, and includes in other revenue, revenues received for providing aircraft maintenance and staffing services to third parties, freighter operations and MLT. Management believes these classifications provide a more consistent and comparable reflection of Delta's mainline operations.

(5) Delta's June 2009 quarter average fuel price of $2.06 per gallon reflects the consolidated cost per gallon for mainline and regional operations, including contract carrier operations, net of fuel hedge impact.

(6) Year-over-year guidance comparisons assume the 2008 financial information for the applicable periods include Delta and Northwest results for the entire period, excluding special items and out-of-period fuel hedge losses.

Forward-looking Statements

Statements in this news 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 effects of the global recession; the effects of the global financial crisis; the impact of posting collateral in connection with our fuel hedge contracts; the impact that our indebtedness will 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; the ability to realize the anticipated benefits of our merger with Northwest; the integration of the Delta and Northwest workforces; interruptions or disruptions in service at one of our hub airports; our increasing dependence on technology in its operations; our ability to retain management and key employees; the ability of our credit card processors to take significant holdbacks in certain circumstances; the effects of terrorist attacks; and competitive conditions in the airline industry.

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 December 31, 2008. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of July 22, 2009, and which we have no current intention to update.

                              DELTA AIR LINES, INC.
                      Consolidated Statements of Operations
                                   (Unaudited)

                                    Three        Three
                                   Months       Months
                                    Ended        Ended
    (in millions, except          June 30,     June 30,     $Change   %Change
      per share data)                2009       2008(1)       H(L)      H(L)
     --------------------            ----       -------     -------   -------

     OPERATING REVENUE:
       Passenger:
           Mainline                $4,564        $3,627         $937      26%
           Regional carriers        1,339         1,143          196      17%
                                    -----         -----          ---
       Total passenger revenue      5,903         4,770        1,133      24%
       Cargo                          173           160           13       8%
       Other, net                     924           569          355      62%
                                      ---           ---          ---
         Total operating revenue    7,000         5,499        1,501      27%
     OPERATING EXPENSES:
       Salaries and related costs   1,891         1,092          799      73%
       Aircraft fuel and related
        taxes                       1,812         1,678          134       8%
       Contract carrier
        arrangements (2)              965           967           (2)      0%
       Depreciation and
        amortization                  383           302           81      27%
       Aircraft maintenance
        materials and
        outside repairs               392           295           97      33%
       Contracted services            376           257          119      46%
       Passenger commissions and
        other selling expenses        329           248           81      33%
       Landing fees and other rents   315           173          142      82%
       Passenger service              161           105           56      53%
       Aircraft rent                  119            67           52      78%
       Impairment of goodwill and
        other intangible assets         -         1,196       (1,196)     NM
       Restructuring and
        merger-related items           58           104          (46)    (44%)
       Other                          198           102           96      94%
                                      ---           ---          ---
         Total operating expense    6,999         6,586          413       6%
                                    -----         -----          ---
     OPERATING INCOME (LOSS)            1        (1,087)       1,088      NM
     OTHER (EXPENSE) INCOME:
       Interest expense              (324)         (141)        (183)     NM
       Interest income                  9            25          (16)    (64%)
       Miscellaneous, net              61            40           21      53%
                                      ---           ---          ---
         Total other expense, net    (254)          (76)        (178)     NM
                                     ----           ---         ----
     LOSS BEFORE INCOME TAXES        (253)       (1,163)         910      78%
     INCOME TAX (PROVISION) BENEFIT    (4)          119         (123)     NM
                                       --           ---         ----
     NET LOSS                       ($257)      ($1,044)        $787      75%
                                    =====       =======         ====
     BASIC AND DILUTED LOSS
      PER SHARE                    ($0.31)       ($2.64)
                                   ======        ======
     WEIGHTED AVERAGE SHARES USED
      IN BASIC AND DILUTED LOSS
      PER SHARE CALCULATION           827           396
                                      ---           ---

     (1) Pursuant to GAAP, results for the June 2008 quarter presented in
         this table reflect Delta standalone results only. See Note A for a
         representation of "Combined" results for the June 2008 quarter,
         which includes Northwest results for that period.
     (2) Contract carrier arrangements expense includes $212 million and
         $384 million for the three months ended June 30, 2009 and 2008,
         respectively, for aircraft fuel and related taxes.



                               DELTA AIR LINES, INC.
                        Consolidated Statements of Operations
                                    (Unaudited)

                                    Six           Six
                                  Months        Months
                                   Ended         Ended
    (in millions, except         June 30,      June 30,     $Change   %Change
      per share data)              2009         2008(1)       H(L)      H(L)
     --------------------        --------       -------     -------   -------


    OPERATING REVENUE:
       Passenger:
           Mainline                $8,931        $6,688       $2,243      34%
           Regional carriers        2,573         2,182          391      18%
                                    -----         -----        -----
       Total passenger revenue     11,504         8,870        2,634      30%
       Cargo                          358           294           64      22%
       Other, net                   1,822         1,101          721      65%
                                    -----         -----          ---
         Total operating revenue   13,684        10,265        3,419      33%
     OPERATING EXPENSES:
       Salaries and related costs   3,758         2,183        1,575      72%
       Aircraft fuel and related
        taxes                       3,705         3,100          605      20%
       Contract carrier
        arrangements (2)            1,873         1,895          (22)     (1%)
       Depreciation and
        amortization                  767           599          168      28%
       Aircraft maintenance
        materials and
        outside repairs               816           563          253      45%
       Contracted services            834           511          323      63%
       Passenger commissions and
        other selling expenses        685           473          212     45%
       Landing fees and other rents   631           340          291     86%
       Passenger service              296           189          107     57%
       Aircraft rent                  240           131          109     83%
       Impairment of goodwill and
        other intangible assets         -         7,296       (7,296)    NM
       Restructuring and
        merger-related items          157           120           37     31%
       Other                          404           213          191     90%
                                      ---           ---          ---
         Total operating expense   14,166        17,613       (3,447)  (20%)
                                   ------        ------       ------
     OPERATING  LOSS                 (482)       (7,348)       6,866    93%
     OTHER (EXPENSE) INCOME:
       Interest expense              (632)         (288)        (344)   NM
       Interest income                 19            52          (33)  (63%)
       Miscellaneous, net              48            31           17    55%
                                      ---           ---          ---
         Total other expense, net    (565)         (205)        (360)   NM
                                     ----          ----         ----
     LOSS BEFORE INCOME TAXES      (1,047)       (7,553)       6,506    86%
     INCOME TAX (PROVISION) BENEFIT    (4)          119         (123)   NM
                                      ---           ---         ----
     NET LOSS                     ($1,051)      ($7,434)       6,383    86%
                                 ========      ========        =====
     BASIC AND DILUTED LOSS
      PER SHARE                    ($1.27)      ($18.79)
                                   ======      ========
     WEIGHTED AVERAGE SHARES USED
      IN BASIC AND DILUTED LOSS
      PER SHARE CALCULATION           826           396
                                      ===           ===

    (1) Pursuant to GAAP, results for the six months ended June 30, 2008
        presented in this table reflect Delta standalone results only.
    (2) Contract carrier arrangements expense includes $407 million and
        $704 million for the six months ended June 30, 2009 and 2008,
        respectively, for aircraft fuel and related taxes.



                               DELTA AIR LINES, INC.
                            Selected Balance Sheet Data
                                  (In Millions)

                                                           June 30,   Dec. 31,
                                                           --------   --------
                                                             2009      2008
                                                             ----      ----
                                                         (Unaudited)

    Cash and cash equivalents                                $4,851    $4,255
    Short-term investments                                       91       212
    Restricted cash, cash equivalents and investments
     (short-term and long-term)                                 382       453
    Total assets                                             44,480    45,014
    Total debt and capital leases, including current
     maturities                                              16,598    16,571
    Total shareowners' equity                                   980       874



                               DELTA AIR LINES, INC.
                                Statistical Summary
                                   (Unaudited)

                                  Three Months Ended June 30,
                                  ---------------------------
                                                    2008
                                  2009         Combined(1)     Change
                                  ----       ---------------   ------
    Consolidated:
      Revenue Passenger Miles
       (millions) (2)           49,053         53,237          (7.9%)
      Available Seat Miles
       (millions) (2)           59,029         63,399          (6.9%)
      Passenger Mile Yield (2)   12.04 cents    14.87 cents   (19.0%)
      Passenger Revenue per
       Available Seat Mile
       (PRASM) (2)               10.00 cents    12.48 cents   (19.9%)
      Operating Cost Per
       Available Seat Mile
       (CASM) (2)                11.55 cents    15.99 cents   (27.8%)
        CASM excluding Special
         Items (2) - See Note A  11.45 cents    13.43 cents   (14.7%)
        CASM excluding Special
         Items and Fuel Expense
         and Related Taxes(2,3)
         - See Note A             8.06 cents     7.88 cents     2.2%
      Passenger Load Factor (2)   83.1 %         84.0 %        (0.9) pts
      Fuel Gallons Consumed
       (millions) (2)              983          1,071          (8.2%)
      Average Price Per Fuel
       Gallon, net of hedging
       activity (2)              $2.06          $3.39         (39.2%)
      Number of Aircraft
       in Fleet, End of Period   1,017          1,031           (14) aircraft
      Full-Time Equivalent
       Employees, End of Period 82,968         92,103          (9.9%)

    Mainline:
      Revenue Passenger Miles
       (millions)               42,416         46,513          (8.8%)
      Available Seat Miles
       (millions)               50,605         54,960          (7.9%)
      Operating Cost Per
       Available Seat Mile
       (CASM)                    10.62 cents    15.08 cents   (29.6%)
        CASM excluding Special
         Items  - See Note A     10.51 cents    12.12 cents   (13.3%)
        CASM excluding Special
         Items and Fuel Expense
         and Related Taxes -
         See Note A               7.20 cents     7.06 cents     2.0%
      Fuel Gallons Consumed
       (millions)                  793            876          (9.5%)
      Average Price Per Fuel
       Gallon, net of hedging
       activity                 $2.14          $3.29         (35.0%)
      Number of Aircraft
       in Fleet, End of Period     759            789           (30) aircraft

    (1)  Data presented reflects operations for both Delta and Northwest for
         the June 2008 quarter.
    (2)  Data presented includes operations under our contract carrier
         arrangements.
    (3)  Excludes $212 million and $517 million, for the June 2009 and 2008
         quarters, respectively, for fuel expense incurred under contract
         carrier arrangements.



                               DELTA AIR LINES, INC.
                                Statistical Summary
                                    (Unaudited)

                                 Six Months Ended June 30,
                                 -------------------------
                                                 2008
                                 2009         Combined (1)    Change
                                 ----         ------------    ------
    Consolidated:
      Revenue Passenger Miles
       (millions) (2)          92,013         100,745          (8.7%)
      Available Seat Miles
       (millions) (2)         114,769         122,974          (6.7%)
      Passenger Mile Yield (2)  12.50 cents     14.61 cents   (14.4%)
      Passenger Revenue per
       Available Seat Mile
       (PRASM)(2)               10.02 cents     11.97 cents   (16.3%)
      Operating Cost Per
       Available Seat Mile
       (CASM) (2)               12.02 cents     22.81 cents   (47.3%)
        CASM excluding Special
         Items (2) - See
         Note A                 11.88 cents     13.31 cents   (10.7%)
        CASM excluding Special
         Items and Fuel Expense
         and Related Taxes(2,3)
         - See Note A            8.35 cents      8.12 cents     2.8%
      Passenger Load Factor (2)  80.2 %          81.9 %        (1.7) pts
      Fuel Gallons Consumed
       (millions) (2)           1,908           2,093          (8.8%)
      Average Price Per Fuel
       Gallon, net of hedging
       activity (2)             $2.16           $3.16         (31.6%)
      Number of Aircraft
       in Fleet, End of Period  1,017           1,031           (14) aircraft
      Full-Time Equivalent
       Employees, End of
        Period                 82,968          92,103          (9.9%)

    Mainline:
      Revenue Passenger Miles
       (millions)              79,617          88,017          (9.5%)
      Available Seat Miles
       (millions)              98,369         106,499          (7.6%)
      Operating Cost Per
       Available Seat Mile
       (CASM)                   11.14 cents     22.95 cents   (51.5%)
        CASM excluding Special
         Items  - See Note A    10.99 cents     11.98 cents    (8.3%)
        CASM excluding Special
         Items and Fuel Expense
         and Related Taxes -
         See Note A              7.48 cents      7.23 cents     3.5%
      Fuel Gallons Consumed
       (millions)               1,533           1,706         (10.1%)
      Average Price Per Fuel
       Gallon, net of hedging
       activity                 $2.28           $3.07         (25.7%)
      Number of Aircraft
       in Fleet, End of Period    759             789           (30) aircraft


    (1) Data presented reflects operations for both Delta and Northwest for
        the June 2008 quarter.
    (2) Data presented includes operations under our contract carrier
        arrangements.
    (3) Excludes $407 million and $942 million, for the six months ended June
        2009 and 2008, respectively, for fuel expense incurred under contract
        carrier arrangements.



    Note A: The following tables show reconciliations of non-GAAP financial measures.  The reasons Delta uses these measures are described below.

       -- Delta completed its merger with Northwest Airlines on October 29,
          2008. Accordingly, Delta's financial results under GAAP include the
          results of Northwest Airlines for the period January 1, 2009
          through June 30, 2009.

          Under GAAP, Delta does not include in its financial results the
          results of Northwest Airlines prior to the completion of the
          merger.  Accordingly, Delta's financial results under GAAP for the
          June 2008 quarter do not include the results of Northwest Airlines
          for that period.  This impacts the comparability of Delta's
          financial statements under GAAP for the June 2009 and 2008
          quarters.

          Delta presents its financial results for the June 2009 and June
          2008 quarters under GAAP as well as on a "combined basis."
          "Combined basis" means the company combines the financial results
          of Delta and Northwest as if the merger had occurred prior to the
          beginning of the applicable period.  Delta believes presenting this
          financial information on a combined basis provides a more
          meaningful basis for comparing Delta's year-over-year financial
          performance than the GAAP financial information.

          This press release also includes guidance for the September 2009
          quarter.  Please note the year-over-year guidance comparisons
          assume the 2008 financial statements for the applicable periods
          were prepared on a combined basis, excluding special items and
          out-of-period fuel hedge losses.  Delta is unable to reconcile
          certain forward-looking projections to GAAP, including projected
          consolidated cost per available seat mile (CASM) and Mainline
          non-fuel CASM, as the nature or amount of special items cannot be
          estimated at this time.

       -- Delta excludes special items because management believes the
          exclusion of these items is helpful to investors to evaluate the
          company's recurring operational performance.

       -- Delta excludes non-cash mark-to-market (MTM) adjustments related
          to fuel hedges settling in future periods in order to present
          financial results related to operations in the period shown.

       -- Delta presents consolidated and Mainline CASM excluding fuel
          expense and related taxes because management believes the
          volatility in fuel prices impacts the comparability of
          year-over-year financial performance.

       -- Consolidated and Mainline CASM excludes transactions with third
          parties as these costs are not associated with the generation of a
          seat mile.  These transactions include expenses related to Delta's
          providing maintenance services, staffing services and dedicated
          freighter operations as well as Delta's vacation wholesale
          operations.

       -- Delta presents free cash flow because management believes this is a
          widely used metric that is helpful to investors to evaluate cash
          available to enhance shareholder value.

       -- Delta presents net investing activities because management
          believes this metric is helpful to investors to evaluate the
          company's investing activities.

       -- Delta presents total issuance of debt and total debt and capital
          lease payments because management believes this metric is helpful
          to investors to evaluate the company's debt related activities.
          We have reclassified certain prior period amounts to be consistent
          with our current period presentation.

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SOURCE: Delta Air Lines

Web site: http://www.delta.com/