Tag Archives: 717-2BD

Delta reports 3Q adjusted net income of $1.4 billion

Delta Air Lines (Atlanta) today reported its financial results for the September 2015 (third) quarter, including adjusted net income of $1.4 billion or $1.74 per diluted share, up 45% from the September quarter of 2014.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Formerly painted in AirTran Airways’ Atlanta Falcons special scheme, Boeing 717-2BD N891AT (msn 55043) now flies for Delta, leased from Southwest Airlines.

Delta Air Lines aircraft slide show: AG Airline Slide Show

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Delta reports adjusted earnings of $1 billion in the second quarter, up 22%, expects capacity to decrease 3% in the 3Q

Delta Air Lines (Atlanta) today reported its best second quarter financial results in its history:

Delta Air Lines today reported financial results for the second quarter (June) 2015 quarter, including adjusted net income of $1.0 billion or $1.27 per diluted share, up 22% from the same quarter in 2014.

“Delta’s record results have allowed the company to invest in its employees through higher wage rates and profit sharing; improve the experience for our customers through new aircraft and innovative partnerships with global carriers; and uniquely deliver value for our shareholders by accelerating our capital returns while also paying down debt,” said Richard Anderson, Delta’s chief executive officer. “We have more work and opportunity ahead of us on all of these fronts as we continue to execute on our long-term plan.”

Anderson continued, “Our significant fuel savings in the September quarter should allow us to produce another record quarter with more than 30% EPS growth, a 19-21% operating margin and $1.9 billion of operating cash flow.”

Delta 2Q Graph

Revenue Environment

Delta’s operating revenue for the June quarter increased 1%, despite $160 million in foreign currency pressures which reduced unit revenues by approximately 2 points. Passenger unit revenues declined 4.6% on a 3.9% decline in yields.

Delta saw solid progress with several of its revenue initiatives, including Branded Fares, which increased passenger revenues by $56 million, and its enhanced agreement with American Express, which produced an incremental $60 million in revenue.

“Our commercial initiatives continue to gain traction in the marketplace and we will produce summer margins in excess of any achieved in our history,” said Ed Bastian, Delta’s president. “However, unit revenue growth is an important component of our long-term plan to expand margins. We continue to project flat system capacity growth for the fourth quarter of 2015 – a level in line with current demand expectations, which should put the business on the right trajectory to stem the erosion in unit revenues by the end of the year.”

Investment Strengthens Partnership and Expands Global Reach

Strengthening its existing partnership with Gol, Delta recently agreed to purchase up to $56 million in preferred shares as part of a larger rights offering by the Brazilian carrier. In addition to the equity, Delta will guarantee up to $300 million in borrowings by Gol under a term loan with third-party lenders. Delta’s guarantee will be secured by Gol’s interest in SMILES, Gol’s publicly-traded loyalty program. Delta and Gol have also agreed to extend their exclusive commercial agreement for flights between the United States and Brazil, the largest aviation market in Latin America. This transaction is subject to normal closing conditions, including regulatory approvals.

Cost Performance

Adjusted fuel expense2 declined over $463 million compared to the same period in 2014, as 39% lower market fuel prices and a $77 million increase in profit at the refinery offset nearly $600 million in settled hedge losses. For the remainder of 2015, Delta expects its fuel expense to be $1.90 – $2.00 per gallon, a significant reduction to the $2.65 per gallon it realized in the first six months of the year.

CASM-Ex3 decreased 0.8% for the June quarter on a year-over-year basis, with foreign exchange and the benefits of Delta’s domestic refleeting and other cost initiatives offsetting the company’s investments in its employees, products and operations. This marks the eighth consecutive quarter of CASM growth below 2%, in line with the company’s long-term goals.

Delta’s debt reduction initiative continued to improve the company’s interest expense, producing $46 million in interest savings for the quarter compared to the same period in 2014.

“Because of the momentum we’ve built with our cost reduction initiatives, we expect to post our ninth consecutive quarter of sub-2% unit cost growth in September,” said Paul Jacobson, Delta’s chief financial officer. “Cost efficiency has contributed to the record results that allowed us to return $1 billion to shareholders in the June quarter while investing in our employees and customer experience.”

Cash Flow, Shareholder Returns, and Adjusted Net Debt

Delta generated $2.5 billion of adjusted operating cash flow and $1.6 billion of free cash flow during the quarter. The company used this strong cash generation to reinvest nearly $1 billion back into the business, primarily for aircraft purchases. The company returned $1.0 billion to its owners through $72 million of dividends and $925 million of share repurchases, while also strengthening its balance sheet by reducing its adjusted net debt to $7.1 billion.

September 2015 Quarter Guidance

Following are Delta’s projections for the September 2015 quarter:

3Q15 Forecast

Unit Revenue (compared to 3Q14)

(4.5%) – (6.5%)

Operating margin

19% – 21%

Fuel price, including taxes, settled hedges and refinery impact


CASM – Ex (compared to 3Q14)


System capacity (compared to 3Q14)


Special Items

Special items, net of taxes, in the June 2015 quarter totaled $458 million, including:

$454 million for mark-to-market adjustments and settlements on fuel hedges;

a $16 million charge for fleet and other items, primarily associated with Delta’s domestic fleet restructuring initiative; and

$20 million for mark-to-market adjustments on hedges owned by Virgin Atlantic.
Special items, net of taxes, in the June 2014 quarter totaled $88 million, including:

a $69 million charge for debt extinguishment associated with Delta’s debt reduction initiative; and

a $20 million charge associated with Delta’s domestic fleet restructuring.

Top Copyright Photo: Fred Freketic/AirlinersGallery.com. Delta has been introducing the former AirTran Airways Boeing 717s around the country including the West Coast. Boeing 717-2BD N966AT (msn 55027) departs from the New York (JFK) hub. All 717s are leased from Southwest Airlines.

Delta Air Lines aircraft slide show (current livery):

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Delta confirms it will operate the Boeing 717 between Los Angeles and San Francisco

Delta Air Lines (Atlanta) has now confirmed our previous report of adding the Boeing 717 type to the West Coast Delta Shuttle between Los Angeles and San Francisco. The airline issued this statement today:

Delta Air Lines will introduce Boeing 717 aircraft on eight of the 15 daily flights between Los Angeles International and San Francisco International airports in June, offering 40 percent more seats on its hourly nonstop Delta Shuttle.

Delta launched its hourly nonstop Delta Shuttle product from Los Angeles to San Francisco in September 2013, adding a California perspective to its long relied-upon New York-based Shuttle. The mainline 717s seat 110 passengers and offer access to power from every seat. The remaining seven daily West Coast Shuttle flights will continue to be operated by Delta Connection partner Compass Airlines using 76-seat Embraer ERJ 175 aircraft. All Shuttle flights offer access to First Class and Economy Comfort seating and feature Wi-Fi service, as does nearly every domestic Delta flight out of Los Angeles.

The 717 upgrade on the West Coast Shuttle is the latest in a series of investments in Los Angeles by the airline. Last month, Delta announced plans to begin daily nonstop service to Shanghai in July. Pending foreign government approval, seasonal service from Los Angeles to Managua, Nicaragua, will also begin this summer. These new routes build on Delta’s expansion in both international and domestic service from Los Angeles in recent months, including London-Heathrow in October; Dallas/Fort Worth* and Austin, Texas* in November; and Vancouver, Canada* in December.

*Flight operated by Delta Connection carrier Compass Airlines

From Los Angeles, Delta currently operates 154 peak-day departures to 48 destinations. At the airport, travelers passing through Los Angeles continue to enjoy the benefits of the $229 million expansion and enhancement of Terminal 5 at LAX, scheduled for completion in May 2015. Once onboard, Delta supports and markets the music of emerging artists and short-form content creators through exclusive partnerships that provide in-flight content for customers, who can now enjoy free entertainment from every seat out of Los Angeles through the new Delta Studio product.

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 717-2BD N894AT (msn 55003) taxies to the runway at Baltimore/Washington.

Delta Air Lines aircraft slide show (current livery):

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AirTran Airways operates its last flight, now fully integrated into Southwest Airlines

AirTran 717-200 N717JL taxies into the gate at TPA (Southwest)(LR)

AirTran Airways (Orlando), as planned ended its operations last night (December 28) on its original Atlanta-Tampa route. Special flight FL 1 arrived at the gate at Tampa International Airport (TPA) at 2339 (11:39) EST. As a result, the AirTran brand was retired and the flight marked the full integration of AirTran into Southwest Airlines (Dallas). The last flight was operated with Boeing 717-2BD B717JL (msn 55042).

Read about the history of AirTran Airways: CLICK HERE

Southwest Airlines issued this statement:

Southwest Airlines embarked on a new era on December 28 as it celebrated the last AirTran Airways revenue flight. At 10:25pm EST, AirTran Airways Flight 1 departed Hartsfield-Jackson Atlanta International Airport to Tampa Bay International Airport.

“With this special flight, we are celebrating history and setting our sights on a bright future for all of Southwest Airlines,” said Bob Jordan, Southwest Airlines’ Chief Commercial Officer and AirTran Airways President, who was on the flight to Tampa. “The work of so many People culminates in this moment as we salute the enormous accomplishments of AirTran and Southwest. For our Customers and Employees, we now move forward with one airline, one Customer Experience, one flight schedule, one Rapid Rewards frequent flyer program, and one award-winning Brand.”

More than 400 AirTran and Southwest Employees and special guests gathered in Atlanta Sunday evening to commemorate the milestone. AirTran Flight 1 retraced a route that is a nod to AirTran’s first commercial flight in October 1993. Flight 1’s flight crew consisted of longtime AirTran Employees, including the airline’s Chief Pilot, Floy Ponder, a 19-year veteran of AirTran Airways. Each of the flight’s 117 passengers, consisting of many former AirTran Employees, retirees, special guests, and aviation enthusiasts received a special keepsake celebrating the historic flight.

“As we’ve grown in both the domestic and international markets, I can’t help but think about all the doors the AirTran acquisition has opened for Southwest Airlines,” said Gary Kelly, Southwest Airlines Chairman, President & CEO, who was in Atlanta for the send-off. “The most important things—which cannot be measured and are irreplaceable—are the great People of AirTran who have worked hard to achieve this milestone, and are all soon to be part of the Southwest Airlines family.”

The acquisition of AirTran was a unique opportunity to extend the Southwest network into key markets it didn’t yet serve, such as Atlanta and the greater Washington, D.C., area, via Ronald Reagan National Airport. The integration gives Southwest the opportunity to serve Customers from 93 airports in the U.S. and near-international destinations, providing Customers more low-fare destinations as it expands the well-known “Southwest Effect” to hundreds of additional low-fare itineraries for the traveling public.

Southwest Airlines acquired AirTran Airways in 2011.

Photo: Southwest Airlines. Boeing 717-2BD N717JL taxies into the gate at TPA ending the history of the airline.

AirTran Airways aircraft slide show: AG Slide Show

Video: Southwest Airlines. The last AirTran flight from Atlanta to Tampa:


<p><a href=”http://vimeo.com/115567085″>The last departure of AirTran Airways</a> from <a href=”http://vimeo.com/user19954503″>Bruce Drum</a> on <a href=”https://vimeo.com”>Vimeo</a&gt;.</p>


Delta to move its Boston Delta Shuttle flights to Terminal C at LaGuardia Airport

Delta Air Lines (Atlanta) will move New York operations of its Delta Shuttle between Boston-Logan International Airport and New York’s LaGuardia Airport from the Marine Air Terminal to Terminal C beginning on November 2.

Boston Shuttle customers will enjoy new departure and arrival facilities at LaGuardia in Terminal C as well as upgraded service to Boeing 717 aircraft. The move is part of Delta’s strategy of adding bigger aircraft on more routes.

In 2012, Delta completed renovations to Terminal C as part of its $160 million investment to modernize and connect Terminals C and D at LaGuardia and opened a new 7,600 square foot Delta Sky Club featuring a full wall of windows with runway views. Customers will also have access to Delta’s five new restaurants with menus led by celebrity chefs, an expansive food hall and fresh markets.

Weekday flights depart near the top of the hour from 6 a.m. through 8 p.m. and will be operated by Delta using Boeing 717 aircraft which accommodates 110 passengers including 12 First Class seats in a two by two configuration, 15 Economy Comfort and 83 economy seats in a two by three configuration. Boston-based customers will now be able connect through Delta’s LaGuardia hub for access to 64 additional cities.

Delta Shuttle service began on its Boston to New York and Washington, D.C. to New York routes on September 1, 1991 after Delta completed the purchase of the Pan Am Shuttle. For nearly a quarter century the Delta Shuttle has been a core part of its New York operations. In June 2010, Delta added New York to Chicago-O’Hare service to the Shuttle operation.

Customers flying the Delta Shuttle between New York-LaGuardia and Boston will enjoy:

Convenient, top of the hour schedule for Delta Shuttle customers including 15 weekday departures

Check-in as close as 15 minutes prior to departure without bags or 30 with checked bags

Dedicated check-in counters exclusively for Shuttle customers

Expedited security screening with nearby access to TSA Pre-Check lanes for eligible passengers

Dedicated gates – located near the Delta Sky Club in LaGuardia’s Terminal C – with access to complimentary coffee and newspapers for all customers including The New York Times, The Wall Street Journal, USA Today, Financial Times and power at the gate

Advanced seat selection on all Delta Shuttle flights and complimentary access to Economy Comfort seats for SkyMiles Gold, Platinum and Diamond Medallion members at the time of booking

Two classes of service with complimentary upgrades for SkyMiles Medallion members when available.
Complimentary onboard snacks including bagels in the morning before 10:30 a.m. or gourmet nut mix for flights after 10:30 a.m.

Complimentary beverages in-flight including craft beer and wine in all classes of service

Cocktails available for purchase in economy

Access to in-flight Wi-Fi on all Shuttle flights

Access to power from every seat on the Boeing 717 aircraft

The November 2014 schedule between New York–LaGuardia and Boston is below.

Delta Shuttle LGA-BOS Schedule (LRW)



Delta Shuttle flights between New York and Chicago-O’Hare International Airport or Washington Reagan-National Airport will continue to operate from LaGuardia’s Marine Air Terminal operated by Delta Connection partner, Shuttle America using Embraer E175 aircraft.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Ex-AirTran Airways Boeing 717-2BD N995AT (msn 55139), now with Delta, arrives at Washington (Dulles).

Delta Air Lines (current): AG Slide Show

Southwest Airlines announces new routes from Dallas and Washington’s Reagan National Airport, Mexico City and AirTran Airways final flight on December 28

Southwest Airlines (Dallas) adding to what we previously reported, today published dozens of new nonstop markets for Customers flying the carrier from Dallas Love Field and Ronald Reagan Washington National Airport. The schedule also includes new Southwest Airlines service to an additional Caribbean destination—Punta Cana, Dominican Republic—as well as to North America’s largest metropolitan area, Mexico City (replacing AirTran Airways).

New, nonstop service for Dallas Love Field:

Beginning October 13, 2014, Southwest will offer nonstop service between Dallas and:

Baltimore/Washington (three roundtrips a day)
Chicago Midway (five roundtrips a day, up to six as of November 2)
Denver (three roundtrips a day)
Las Vegas (three roundtrips a day, up to four as of November 2)
Los Angeles (three roundtrips a day, up to four as of November 2)
Orlando (two roundtrips a day, up to three as of November 2)
Washington Reagan National (three roundtrips a day, up to six as of November 2)

Beginning November 2, 2014, Southwest will offer nonstop service between Dallas and:

Atlanta (four roundtrips a day)
Fort Lauderdale/Hollywood (two roundtrips a day)
Nashville (two roundtrips a day)
New York LaGuardia (three roundtrips a day)
Phoenix (four roundtrips a day)
San Diego (two roundtrips a day)
Santa Ana/Orange County (one roundtrip a day)
Tampa (two roundtrips a day)

Southwest Airlines also announced today new nonstop service between Washington Reagan National Airport and both Akron/Canton and Indianapolis beginning on November 2, 2014, increasing the carrier’s service at Reagan National from a present day offering of 17 departures to 44 departures a day by year’s end to a total 14 destinations: Atlanta, Akron/Canton, Austin, Chicago Midway, Dallas Love Field, Houston Hobby, Fort Myers, Indianapolis, Kansas City, Milwaukee, Nashville, New Orleans, St. Louis, and Tampa.

Southwest Airlines also will add new nonstop service between Washington Dulles and both Las Vegas and San Diego, and to existing nonstop destinations of Chicago Midway and Denver.

Southwest Airlines continues its historic launch of international service with two additional destinations—Mexico City and Punta Cana, Dominican Republic—to be added on November 2, 2014, to the carrier’s network map of more than 90 destinations across five countries in North America and the Caribbean.

AirTran Airways will be fully integrated into Southwest Airlines by the end of 2014:

AirTran Airways flight 1 (Southwest 5001) will operate on Sunday, December 28, 2014, as the carrier’s final scheduled departure. The evening flight from Atlanta Hartsfield-Jackson International Airport to Tampa reprises the first flight the carrier operated on October 26, 1993 (as ValuJet). Southwest Airlines Company announced its acquisition of AirTran Airways in September 2010, and closed the transaction on May 2, 2011. The FAA awarded the Company a single operating certificate for the two carriers on March 1, 2012, and the Company plans to close 2014 with wholly owned subsidiary AirTran fully-integrated into Southwest Airlines serving a network of 93 destinations in five countries.

Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. Goodbye AirTran Airways. We now have the date when AirTran Airways will operate its last flight – December 28, 2014. The sun will set for AirTran in Tampa on that Sunday in December. Last flight 5001 is due to be operated with a 117-seat Boeing 717-200 (going to Delta on lease) departing ATL at 10:25 pm (2225) and arriving in TPA at 11:55 pm (2355). AirTran’s Boeing 717-2BD N996AT (msn 55140) soars into the sky at Washington’s Reagan National Airport (DCA).

AirTran Airways: AG Slide Show

Southwest Airlines: AG Slide Show



Delta opens up additional Boeing 717 routes and markets

Delta Air Lines (Atlanta) has opened up additional Boeing 717 routes and markets according to Airline Route. The former AirTran Airways 717s are leased from Southwest Airlines.

From Atlanta:

Abilene (April 1)

Augusta (April 1)

Dallas (Love Field)  (October 13)

Fayettevile (April 1)

Gainesville (April 1)

Grand Rapids (April 1)

Houston (Busch Intercontinental) (April 1)

Lexington (April 5)

Memphis (April 5)

Mobile (April 1)

Myrtle Beach (April 1)

Tri Cities (June 5)

Wichita (June 7)

From Detroit:

Austin (May 2)

Buffalo (June 5)

Chicago (Midway) (March 31)

Green Bay (April 8)

Houston (Bush Intercontinental) April 9

Indianapolis (June 5)

Kansas City (April 1)

Nashville (June 5)

New York (JFK) (September 2)

New York (LaGuardia) (September 2)

Philadelphia (April 8)

Traverse City (May 2)

From New York (JFK):

Boston (September 2)

Tampa (September 2)

From New York (LaGuardia):

Miami (September 2)

Tampa (September 2)

From Los Angeles:

Austin (June 6)

Copyright Photo: Tony Storck/AirlinersGallery.com. Formerly painted in the special Atlanta Falcons livery, ex AirTran Airways Boeing 717-2BD N891AT (msn 55043) is now in full Delta colors and lands at Baltimore/Washington.

Delta Air Lines: AG Slide Show