Tag Archives: Delta Air Lines

Delta Air Lines reports a first quarter net profit of $281 million despite more than 17,000 cancelled flights

Delta Air Lines (Atlanta) today reported financial results for the first (March) quarter. Key points include:

Delta’s pre-tax income for the March 2014 quarter was $444 million, excluding special items1, an increase of $363 million over the March 2013 quarter on a similar basis.

Delta’s net income for the March 2014 quarter was $281 million, or $0.33 per diluted share, excluding special items1. This is $196 million higher year over year despite $163 million of non-cash tax expense now recognized after the reversal of the company’s valuation allowance.

On a GAAP basis including special items, Delta’s pre-tax income was $335 million and net income was $213 million, or $0.25 per diluted share.

Delta cancelled more than 17,000 flights due to severe weather in January and February, double the number of flights cancelled for weather in 2013. These cancellations resulted in $90 million of lost revenue and $55 million lower pre-tax income.

Results include $99 million in profit sharing expense in recognition of Delta employees’ contributions toward achieving the company’s financial goals.

Delta generated $951 million of operating cash flow and $390 million of free cash flow in the March 2014 quarter. This strong cash generation allowed the company to reduce its adjusted net debt to $9.1 billion, contribute more than $600 million of funding to its defined benefit pension plans, and return $176 million to shareholders through dividends and share repurchases.

“The March quarter’s record results in the face of unprecedented weather show the strength and resilience of Delta. By delivering the industry’s best customer service, operational reliability and financial performance, Delta people continue to show that they are the very best in the business,” said Richard Anderson, Delta’s chief executive officer. “Our work is not finished, and there is great opportunity ahead as we expect the June quarter to produce 14% – 16% operating margins. We are transforming Delta into a high-quality S&P 500 company that consistently delivers strong earnings growth and shareholder returns.”

Revenue Environment

Delta’s operating revenue improved 5 percent, or $416 million, in the March 2014 quarter compared to the March 2013 quarter, despite $90 million of lost revenue due to weather-related cancellations. Traffic increased 3.5 percent on a 1.7 percent increase in capacity.

Passenger revenue increased 5 percent, or $357 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 3.2 percent year over year with a 1.3 percent improvement in yield.

Cargo revenue decreased 9 percent, or $21 million, driven by lower freight volumes and lower yields.
Other revenue increased 8 percent, or $80 million, driven by higher joint venture and SkyMiles revenues.”March quarter’s top line growth of 5 percent shows the strength of Delta’s revenue momentum even through the revenue loss from weather and a shift of the Easter holiday traffic into April,” said Ed Bastian, Delta’s president. “We see continued revenue strength as we move through the year from corporate revenue gains, the benefits of the Virgin Atlantic joint venture and improved ancillary revenues. These initiatives, coupled with a solid demand environment, should lead to unit revenue growth in the mid-single digits for the June quarter.”

Cost Performance

Total operating expense in the quarter increased $18 million year-over-year driven by the impact of employee investments including $79 million higher profit sharing expense. These cost increases were almost fully offset by lower fuel expense, savings from Delta’s structural cost initiatives, and receipt of a $25 million insurance claim related to Superstorm Sandy.

Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was 0.3 percent higher in the March 2014 quarter on a year-over-year basis, driven by the impact of employee investments and 1 point of pressure from weather-related cancellations. GAAP consolidated CASM decreased 1.4 percent.

Fuel expense, excluding mark-to-market adjustments, declined $167 million as a result of lower market fuel prices and better settled hedge performance. Delta’s average fuel price3 was $3.03 per gallon for the March quarter, which includes $107 million in settled hedge gains. On a GAAP basis, consolidated fuel expense for the March quarter decreased $109 million year-over-year, driven by lower market fuel prices and mark-to-market adjustments on fuel hedges.

Operations at the Trainer refinery produced a $41 million loss for the March quarter as a result of the same lower market fuel prices that lowered Delta’s overall fuel spend. During the quarter, one of the major crude units at the refinery was taken offline for scheduled modifications which lowered throughput levels. These modifications will yield a higher level of jet and diesel distillates going forward and improve the profitability of Trainer. In addition, refinery profitability was negatively impacted by an increase in Renewable Identification Numbers (RINs) expense.

Non-operating expense for the quarter increased by $66 million, driven by a $31 million seasonal loss associated with Delta’s 49% ownership stake in Virgin Atlantic, an $18 million loss on extinguishment of debt driven by Delta’s debt reduction initiatives, and $39 million higher foreign exchange impact, including a $23 million loss associated with the devaluation of the Venezuelan currency. These losses were offset by $34 million lower interest expense.

“The March quarter marks another quarter with non-fuel unit cost growth below 2 percent, and the growing momentum of our domestic refleeting and other cost initiatives provide the platform to maintain this performance,” said Paul Jacobson, Delta’s chief financial officer. “We are addressing all parts of our cost base through executing our structural cost initiatives, lowering our fuel expense with the refinery and hedging, and reducing our interest burden with additional debt reduction.”

Cash Flow

Cash from operations during the March 2014 quarter was $951 million, driven by the company’s March quarter profit and the normal seasonal increase in advance ticket sales. Cash from operations is net of $605 million of contributions made by Delta to its defined benefit pension plans during the quarter. The company generated $390 million of free cash flow.

Capital expenditures during the March 2014 quarter were $570 million, including $514 million in fleet investments. During the quarter, Delta’s net debt maturities and capital leases were $353 million.

In the March quarter, the company returned $176 million to shareholders. On March 14, the company paid $51 million to shareholders, which represents a $0.06 per share quarterly dividend. In addition, the company repurchased four million shares at an average price of $30.94 for a total of $125 million. The company has completed $375 million of the $500 million share repurchase plan authorized by Delta’s Board of Directors in May 2013.

Delta ended the quarter with $5.6 billion of unrestricted liquidity and adjusted net debt of $9.1 billion. The company has now achieved nearly $8 billion in net debt reduction since 2009.

June 2014 Quarter Guidance

Following are Delta’s projections for the second (June) 2014 quarter:

2Q 2014 Forecast

Operating margin
14% – 16%

Fuel price, including taxes, settled hedges and refinery impact
$2.97 – $3.02

2Q 2014 Forecast

(compared to 2Q 2013)

Consolidated unit costs – excluding fuel expense and profit sharing
Up 0% – 2%

System capacity
Up 2% – 3%

Special Items
Delta recorded a net $68 million special items charge in the March 2014 quarter, including:

a $31 million charge associated with Delta’s domestic fleet restructuring;

a $21 million mark-to-market adjustment on fuel hedges; and

a $16 million charge for debt extinguishment and other.

Delta recorded a net $78 million special items charge in the March 2013 quarter, including:

a $102 million charge for facilities, fleet and other, primarily associated with Delta’s domestic fleet restructuring; and

a $24 million mark-to-market adjustment on fuel hedges.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-232 ER N862DA (msn 29734) departs from Los Angeles International Airport (LAX).

Delta Air Lines: AG Slide Show

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Delta completes the installation of full flat-bed seats for its entire international wide body fleet

Delta Air Lines (Atlanta) has completed the installation of full flat-bed seats with direct-aisle access in BusinessElite across its entire international widebody fleet, making it the only U.S. carrier to offer full flat-bed seats and the convenience of direct-aisle access on all overseas flights.

The completed interior fleet modifications include all Delta Airbus A330-200/300, Boeing 767-300ER/400ER, 747-400 and 777-200ER/LR aircraft, which represents Delta’s largest interior fleet modification investment in more than a decade. With these modifications complete, Delta also is the only U.S. domestic carrier to offer personal, on-demand entertainment at every seat on all long-haul international flights.

The fleet modifications are Delta’s latest investment in improving the customer experience. Since 2010, Delta also has:

Launched international Wi-Fi service and completed the installation of Wi-Fi on all domestic, two-class mainline and regional jets, offering more than 400,000 customers per day access to the Internet above 10,000 feet on more than 870 aircraft.

Transformed the sleep experience in the air by offering Westin Heavenly In-Flight bedding for customers in the BusinessElite cabin.

Updated BusinessElite amenity kits with stylish cases from Tumi and skincare product brand Malin+Goetz.
Built a team of celebrity chefs and James Beard Award winners to offer customers great food and wine selections at 30,000 feet.

Introduced International Economy Sleep Kits and added new amenities for its Economy customers on transoceanic flights.

Beginning July 1, 2014, Delta also will operate three updated Boeing 757 aircraft with full flat-bed seats on the trans-continental route between New York’s John F. Kennedy International Airport and Los Angeles International Airport. These will be the first 757 aircraft in service to feature Delta’s previously announced upgrades including full flat-bed seats in BusinessElite on trans-con flights between New York-JFK and Los Angeles, San Francisco and Seattle. All trans-con flights on these routes will feature full flat-bed seats by summer 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Beginning July 1, 2014, Delta also will operate three updated Boeing 757 aircraft with full flat-bed seats on the trans-continental route between New York’s John F. Kennedy International Airport and Los Angeles International Airport. Boeing 757-232 N699DL (msn 29970) departs the runway at Los Angeles International Airport (LAX).

Delta Air Lines: AG Slide Show

Delta’s flight 1500 lands safely in Denver after a false bomb threat

Delta logo

Delta Air Lines‘ (Atlanta) flight DL 1500 from Detroit to Denver landed safely last night (April 18) after a flight attendant found a note in the rear galley threatening a bomb was on board. The Boeing 737-832 (N3750D, msn 32375) with 151 passengers and four crew members landed safely. There was no bomb on board.

Read the full report from ABC 7: CLICK HERE

Delta Air Lines (current): AG Slide Show

Delta paints a Boeing 757 in the 1966 livery for its upcoming 85th Anniversary

Delta Air Lines (Atlanta) has just repainted its Boeing 757-232 registered N608DA (msn 22815) in Atlanta in the “Upright Widget” livery. This color scheme (above) was introduced in 1966 for the fleet and was the longest-running livery for the carrier until the “red dash” color scheme was introduced in 1997.

Top Copyright Photo: Bruce Drum/AirlinersGallery.com. Sister ship Boeing 757-232 N619DL (msn 22909) taxies at Dallas/Fort Worth when it actually wore the 1966 color scheme (slightly altered in 1976). This is the first livery worn by Delta’s Boeing 757-200s.

Delta Air Lines (current livery): AG Slide Show

Delta Air Lines (historic and all other liveries): AG Slide Show

Delta’s Route Map in 1966 (it was barely an international airline):

Delta 1966 Route Map

Delta’s current fleet line-up and number of aircraft in service (Delta Air Lines):

Delta Fleet Part 1

Delta Fleet Part 2

Delta to operate seasonal New York JFK-Vancouver flights starting on May 22

Delta Air Lines (Atlanta) will begin seasonal daily nonstop flights from New York (JFK) to Vancouver on May 22. The route will operate with Boeing 737-800s until September 1 according to Airline Route. This route was also operated last summer.

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-832 N375DA (msn 29623) completes its final approach into Las Vegas McCarran International Airport (LAS).

Delta Air Lines (current): AG Slide Show

Delta’s flight attendants to use Nokia Lumia 1520 phablets for in-flight sales

DELTA AIR LINES PHABLET CLOSE UP

Delta Air Lines (Atlanta) this fall will equip more than 20,000 flight attendants with handheld Nokia Lumia 1520 phablets, which will serve as their on-board manual and in-flight sales device as well as a platform for future, more personalized in-flight customer service. The Lumia 1520 features a larger format, 6-inch screen and will replace the smaller Lumia 820 already in the hands of Delta on-board professionals.

Providing electronic access to the more than 500 page, five pound On-Board Manual carried by every flight attendant is expected to save more than $1 million annually in reduced fuel and printing costs while providing on board professionals a more intuitive way to access essential information.

In addition to its functionality as an in-flight sales device and replacement for the on-board manual, the Nokia Lumia 1520 phablet, running Windows Phone 8.1, will, as it develops, enable flight attendants to take customer meal orders, receive detailed information about their flight and provide information for personalized service, including customers’ frequent flyer status and potential need for special services during flight.

Devices will be distributed starting in October with all flight attendants receiving the device by the end of the year. The solution was developed jointly by Microsoft, Avanade, Nokia and AT&T and is the latest in a number of employee and customer-facing technology innovations Delta has made in recent years. Last September, Delta announced its pilots would receive Surface 2 tablets to be used initially as electronic flight bags and be developed into a multi-functional device that can be integrated across the airline operation.

Copyright Photo: Delta Air Lines.

Delta Air Lines (current): AG Slide Show

 

Wall Street Journal takes a look at Delta Air Lines and their zeal to avoid cancellations

Delta Air Lines (Atlanta) comes under the journalism microscope with an inside article published by the Wall Street Journal. The WSJ article takes a look at measures Delta takes to avoid cancellations.

Read the article: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 767-332 ER N1609 (msn 30574) arrives back at the New York (JFK) hub.

Delta Air Lines (current): AG Slide Show

Delta introduces new “sleep kits” for economy passengers

DELTA AIR LINES SLEEP KIT

Delta Air Lines (Atlanta) has introduced new sleep kits and several updated amenities for passengers seated in the Economy cabin on long-haul international flights. Sleep kits will be offered to each customer by flight attendants and will include individual eyeshades plus earplugs to help customers get better rest when travelling between continents.

In addition, on all trans-Atlantic flights of 3,850 miles or less from the U.S. to Europe, customers in the Economy cabin will receive a full-size bottle of water following meal service and updated snack offerings for morning and afternoon/evening arrivals. A mid-flight ice cream service will also be offered on these flights returning from Europe to the U.S. These service improvements will expand to longer-haul international flights in early summer.

This summer, customers flying in domestic First Class as well as the Economy cabin on domestic and international flights will be offered newly upgraded earbuds that will be theirs to keep for use with Delta’s seatback entertainment systems. Delta is the only U.S. carrier to offer personal, on demand entertainment at every seat on all long-haul, international flights.

Copyright Photo: Delta Air Lines.

Delta Air Lines: 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

Delta relocates key flights to Terminal 3 at London’s Heathrow Airport next to Virgin Atlantic

Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) today mark another major step forward in their partnership as Delta relocates some of its key services to join Virgin Atlantic at Heathrow Terminal 3. The move comes as both airlines start flying their new and aligned summer schedules that offer customers more choice and flexibility while reducing onward transit times.

From today, Delta moves its arrival and departure terminal for several important business markets including its London to New York-JFK, London to Boston, and new London to Seattle services to Heathrow’s Terminal 3. The move enhances convenience and a seamless customer experience. For example, on the world’s most important business travel market between London Heathrow (Terminal 3) and New York JFK (Terminal 4) Delta and Virgin Atlantic will now operate from the same terminal and make it easier for customers to manage their travel plans including any last minute flight changes. The two airlines have also introduced a dedicated New York to London schedule with the customer in mind.

The new routes announced by Delta and Virgin Atlantic include Delta’s new West Coast service between Seattle and London Heathrow which commenced flying on March 30, 2014. And in co-operation with Virgin Atlantic, Delta will also operate a second daily service between London Heathrow and Detroit Metropolitan Airport effective June 2, 2014. The service will be particularly appealing to corporate customers needing an early morning arrival into London while offering more schedule choice for customers between London and the U.S. Midwest.

The two airlines’ summer schedule includes a total of 32 peak daily nonstop flights between North America and the U.K.. Of these, 25 flights will operate between London Heathrow and popular U.S. destinations such as Los Angeles, San Francisco, Atlanta and Washington.

Delta and Virgin Atlantic also provide a competitive offering for the New York to London travel market. It is designed with business travelers in mind and offers a total of nine daily nonstop flights. The schedule includes departures every 30 minutes during the early evening peak and then hourly until 22:30 from New York-JFK to London Heathrow. From London Heathrow to New York-JFK there is a spread of seven daily flights including two late afternoon and early evening departures. These services will be complemented by two daily nonstop flights between New York’s Newark airport and London Heathrow.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Boeing 777-232 LR N703DN (msn 32222) of Delta holds in position for runway clearance at London’s Heathrow Airport.

Delta Air Lines (current): AG Slide Show

Virgin Atlantic Airways: AG Slide Show

 

Delta and Virgin Atlantic launch Seattle/Tacoma-London Heathrow flights

Delta Air Lines (Atlanta) continued its rapid expansion in Seattle/Tacoma with the launch of new daily nonstop service from Seattle-Tacoma International Airport to London Heathrow Airport on Saturday, March 29. The route, established as part of Delta’s joint venture with Virgin Atlantic Airways (London).

Through its trans-Atlantic joint venture with Air France-KLM and Alitalia, Delta offers Seattle-area travelers nonstop service to Paris and Amsterdam while also providing connecting service to more than 150 additional destinations beyond those European hubs.

This spring Delta will also begin expanded Seattle/Tacoma service from Anchorage; Fairbanks, Alaska; Juneau, Alaska; Las Vegas; Los Angeles; Portland, Oregon; San Diego; San Francisco; San Jose, California; and Vancouver to support its growing international gateway that currently serves London Heathrow, Amsterdam and Paris-Charles de Gaulle as well as Beijing, Shanghai, Tokyo-Narita, and Tokyo-Haneda.

In June, Delta will begin new international service from Seattle/Tacoma to Seoul and Hong Kong, bringing Delta’s total nonstop transoceanic destinations to nine, as many as all other SeaTac international carriers combined.

By this summer, Delta will offer more than 2,500 daily international seats as part of its 79 peak-day departures to 25 destinations.

Delta currently operates 35 peak-day departures to 15 destinations from Seattle/Tacoma.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-451 N667US (msn 24222) departs from Tokyo (Narita).

Delta Air Lines (current): AG Slide Show

Delta launches international Wi-Fi service on its Boeing 747-400s

Delta Air Lines (Atlanta) will launch international Wi-Fi service on flights 283 and 295 equipped with Ku-band satellite Wi-Fi on Boeing 747-400 aircraft departing Los Angeles International Airport and Hartsfield-Jackson Atlanta International Airport to Narita International Airport in Tokyo. For more than five years, Delta has provided Wi-Fi to customers traveling on its mainline aircraft flying within the United States.

Delta has three of 16 Boeing 747-400 aircraft complete which also operate between Detroit and Seoul-Incheon; Detroit and Nagoya, Japan; Detroit and Tokyo-Narita; New York-JFK and Tel Aviv as well as New York-JFK and Tokyo-Narita.

Customers can access Wi-Fi service with introductory pricing options that begin with one hour passes for laptop users as low as $14.00 and $8.00 for mobile users or a flight pass option, which will keep customers connected throughout their flight, starting at $24.95 for laptop users and $14.95 for mobile users. All of Delta’s 747-400 aircraft will have Wi-Fi installed by mid-2014.

Delta will complete the installation of Wi-Fi service on its entire international fleet by the end of 2015 including its Boeing 777, 767, 747, Airbus A330 and trans-oceanic Boeing 757 aircraft operating on international, long-haul routes. Delta and Gogo are in the final testing phase for Wi-Fi on the Airbus A330 fleet. The addition of in-flight Internet for more than 150 aircraft will expand the number of worldwide aircraft equipped with Wi-Fi to approximately 1,000 jets including all two-class regional, domestic and international aircraft.

The new international service uses satellites for global connectivity to offer coverage internationally and will compliment Delta’s existing air-to-ground service already provided by Gogo for aircraft flying within the domestic U.S.

Delta operates the world’s largest Wi-Fi-equipped fleet of aircraft with more than 3,400 flights daily, including its entire fleet of 570 domestic mainline aircraft. More than 870 Delta aircraft, including all Delta Connection two-class regional jets, are equipped with in-flight Wi-Fi service offering more than 400,000 customers per day access to the Internet above 10,000 feet.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-451 N663US (msn 23818) climbs away from Tokyo (Narita).

Delta Air Lines: AG Slide Show

Delta announces new flights from Los Angeles to Austin, Boise and San Salvador

Delta Air Lines (Atlanta) this summer will continue its expansion at Los Angeles International Airport with new daily nonstop service to Austin, Texas, and Boise, Idaho, along with new daily nonstop service to San Salvador, El Salvador, pending government approval. Delta also has filed for approval to begin daily service between Los Angeles and Monterrey, Mexico.

Delta’s new Los Angeles service includes:

Twice daily nonstop service to Austin-Bergstrom International Airport

 Flight  Departs  Arrives  Service Begins
2569  AUS at 7:30 a.m.  LAX at 8:25 a.m.  June 16, 2014
2571  AUS at 4:30 p.m.  LAX at 5:45 p.m.  June 16, 2014
2570  LAX at 9:45 a.m.  AUS at 2:40 p.m.  June 16, 2014
2572  LAX at 6:15 p.m.  AUS at 11:30 p.m.  June 16, 2014

Daily nonstop service to Boise Airport

5818  BOI at 6:15 a.m.  LAX at 7:15 a.m.  June 6, 2014
5820  LAX at 7:30 p.m.  BOI at 10:35 p.m.  June 5, 2014

Daily nonstop service to El Salvador International Airport

436  SAL at 7:20 a.m.  LAX at 11:35 a.m.  July 2, 2014
433  LAX at 12:10 a.m.  SAL at 6:10 a.m.  July 2, 2014

Service from Los Angeles to Austin and San Salvador will be operated using Delta Boeing 717 and Boeing 737 aircraft, respectively. Service from Los Angeles to Boise and Monterrey will be operated by Delta Connection carrier Compass Airlines using two-class, 76-seat Bombardier CRJ900 aircraft.

With new service to Austin, Delta will now connect Los Angeles’ growing Silicon Beach tech and startup community with all the major tech centers in the United States, including: Boston, beginning June 5; New York; Oakland, Calif.; Portland, Oregon; Salt Lake City; San Francisco; San Jose, Calif.; Seattle/Tacoma; and now Austin.

Additionally, customers in Austin, Boise, Monterrey and San Salvador will soon have one-stop service to Tokyo-Narita, Tokyo-Haneda, and Sydney through Delta’s international gateway in Los Angeles.

Delta has made significant enhancements to its Los Angeles service both on the ground and in the air in the last few years. Travelers through Los Angeles will enjoy the benefits of the $229 million expansion and enhancement of Terminal 5 at Los Angeles International Airport. The current project will double the size of the ticketing lobby and screening checkpoints, open an exclusive, separate Sky Priority lobby and checkpoint, and include renovations to the Delta Sky Club and new baggage carousels. The project has already begun and is scheduled to take place in several phases with full completion in 2015.

Delta currently operates 130 flights to 43 destinations from LAX, and every flight offers BusinessElite/First Class and Economy Comfort seating. By this summer, Delta will operate more than 140 peak-day flights to LAX, including our new service. Nearly every domestic flight features Wi-Fi service.

Copyright Photo: Jay Selman/AirlinersGallery.com. Former AirTran Airways Boeing 717-23S N991AT (msn 55135) completes its final approach into the Atlanta hub.

Delta Air Lines (current): AG Slide Show

Delta Air Lines reduces its code-share agreement with Alaska Airlines at Seattle/Tacoma

Delta Air Lines (Atlanta) is reducing its code-share agreement with Alaska Airlines (Seattle/Tacoma) at Seattle-Tacoma International Airport per Airline Route. The move is not a surprise as Delta has been adding its own feeder flights at SEA to support its long-range routes.

Effective June 5, 2014 Delta will remove its DL code on Alaska Airlines flights from Seattle/Tacoma to Las Vegas, Los Angeles, San Diego, San Francisco and San Jose.

This will be followed on July 1 when Delta removes its DL code on Alaska flights to Anchorage and Houston (Bush Intercontinental).

Finally the Seattle/Tacoma-Phoenix route will be dropped on December 20, 2014.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A320-211 N333NW (msn 329) of Delta Air Lines taxies at Seattle-Tacoma International Airport (SEA).

Delta Air Lines (current): AG Slide Show

Alaska Airlines: AG Slide Show

 

Wing panel flies off a Boeing 757 of Delta Air Lines

Delta logo

Delta Air Lines (Atlanta) Boeing 757-200 operating flight DL 2412 from Orlando to Atlanta yesterday (March 16) was involved in an incident. An access wing panel flew off the right wing while the aircraft was en route. The aircraft landed safely.

Read the full report from CNN (with photo): CLICK HERE

Delta Air Lines’ volunteers to build 10 homes in Quezon City, Philippines

Delta Air Lines (Atlanta) and Habitat for Humanity International will join forces March 7-16, to help build 10 Habitat homes in Quezon City, outside the capital of Manila, as part of Delta’s Force for Global Good program to effect positive local and global change. This year’s volunteers come from 16 cities throughout the U.S. and Canada.

While building the 10 new homes, Delta volunteers will work side by side with the families who will live in the new community — called Bistekville 4 — when it is completed. The structures will be built to resist earthquakes, hurricanes and floods and will be primarily made from concrete block, which will require minimal ongoing maintenance for the new owners.

For a second consecutive year, Delta volunteers will be joined by Dan DeRiemer of Roswell, Georgia, a DeltaSkyMiles Diamond Medallion member who bid a record 556,000 miles through Delta’s SkyMiles Online Auctionto win the opportunity to participate in the build with his wife, Laura.

Delta Habitat for Humanity voluteers (Delta)(LR)

Delta employees from around the globe use vacation time and pay a portion of their expenses to volunteer on the international builds and help those in need of simple, decent and affordable housing, while also taking the opportunity to learn more about the country and its culture. Delta has participated in similar projects in Chile,China, Dominican Republic, Ghana, Haiti, India, Japan, Mexico, South Africa and Thailand.

Delta has supported Habitat for Humanity for more than a decade and strengthened the partnership in 2006 by becoming a national partner and unveiling the first 767-300 featuring a unique Habitat for Humanity livery and aDelta Force for Global Good decal. The special livery helps raise awareness of Habitat for Humanity’s global work and highlights the efforts of employee participation in Delta’s Force for Global Good.

Delta operates daily flights from Manila to Tokyo-Narita and Nagoya-Centrair, where customers can connect to daily flights to the U.S. More than 150 employees are based in the Philippines. Delta is committed to supportingthe Philippines community, a country that Delta has served for more than 60 years. During the past 10 years, Delta has sponsored a scholarship program at Concordia College Manila to support underprivileged students and recently partnered with Ayala Foundation, a Manila-based nonprofit organization, through the SkyWish charity program thus allowing customers to donate miles to support its efforts.

Habitat for Humanity International’s vision is a world where everyone has a decent place to live. Anchored by the conviction that housing provides a critical foundation for breaking the cycle of poverty, Habitat has helped more than 4 million people construct, rehabilitate or preserve homes since 1976. Habitat also advocates to improve access to decent and affordable shelter and supports a variety of funding models that enable families with limited resources to make needed improvements on their homes as their time and resources allow. As a nonprofit Christian housing organization, Habitat works in more than 70 countries and welcomes people of all races, religions and nationalities to partner in its mission.

Top Copyright Photo: James Helbock/AirlinersGallery.com. Delta has been a strong supporter of Habitat for Humanity and has painted this Boeing 767-332 ER (N171DZ, msn 29690) to express that support. N171DZ arrives at Los Angeles.

Delta Air Lines: AG Slide Show

Delta issues a redemption chart to better explain the changes to its SkyMiles program

Delta Air Lines (Atlanta) has released the 2015 SkyMiles U.S. Award redemption charts as part of its commitment to inform members of upcoming SkyMiles program improvements. Of the 44 Award level pricing changes, more than 95 percent of the changes reflect a decrease in the miles needed for Award Travel redemption by SkyMiles members.

The new SkyMiles U.S. Award chart: CLICK HERE

According to the airline, “With the release of the U.S. Award chart, members can learn even more about Delta’s 2015 SkyMiles program including how the new five-tier Award structure will be implemented. The lowest level for SkyMiles Saver Awards will remain at 25,000 miles plus taxes and fees for an Economy Class Award ticket for travel within the U.S. andCanada excluding Hawaii. The introduction of two additional redemption tiers will offer members more price points for Awards and is designed to complement new features such as new One-Way Award tickets which will start as low as 12,500 miles plus taxes and fees within the U.S. and Canada excluding Hawaii and the ability to redeem Miles + Cash Award options. In addition, members will experience significant improvements to award-redemption functionality at delta.com and Delta reservations in 2015.”

Delta is moving the emphasis of the mileage awards program to its premium flyers who pay more for their tickets.

Copyright Photo: James Helbock/AirlinersGallery.com. Boeing 767-432 ER N841MH (msn 29714) with the special “100 Years – American Cancer Society – The Official Sponsor of Birthdays” logo and inscription arrives in Las Vegas.

Delta Air Lines (current): AG Slide Show

Delta Air Lines (historic): AG Slide Show

Delta to start Hartford-Cleveland service on June 5

Delta Air Lines (Atlanta) continues to fill-in the void left by United Airlines (Chicago) at the slowly disappearing Cleveland hub. Delta will launch Delta Connection Bombardier CRJ700 service from Hartford/Springfield to Cleveland with one daily flight starting on June 5 per Airline Route. The operator is not specified, although GoJet Airlines is a likely candidate.

Copyright Photo: Ken Petersen/AirlinersGallery.com. Bombardier CRJ700 (CL-600-2C10) N390CA (msn 10106) of GoJet Airlines operating as a Delta Connection carrier taxies at Raleigh-Durham International Airport (RDU).

Delta Air Lines (current): AG Slide Show

Cities served by GoJet Airlines for both Delta and United:

GoJet 3.2014 Cities Served (Delta and United)

 

 

Delta announces changes to its SkyMiles program, changes to a ticket price, not miles flown

Delta Air Lines (Atlanta) has issued this statement about changes to its SkyMiles program:

Delta Air Lines has taken another step in its ongoing commitment to improve the travel experience by unveiling changes to the SkyMiles program. The 2015 SkyMiles program will introduce a shift from today’s current model in which customers earn redeemable mileage based on distance traveled to one based on ticket price. The program updates will be effective January 1, 2015 and will also include a new mileage redemption structure that will improve Award seat availability at the lowest mileage requirement levels, offer One-Way Awards at half the price of round-trip, provide additional Miles + Cash Award options, as well as make significant improvements to delta.com and Delta reservations Award shopping tools.

A New Mileage Earning Model

Today’s method of earning redeemable miles based on the distance a customer flies will change to a model of earning redeemable miles based on the price of the ticket purchased. Delta is providing 10 months advance notice of the upcoming program changes so that customers have ample time to make travel plans.

Customers will be able to earn between five and 11 miles per dollar* spent based on their SkyMiles status, and continue to earn up to an additional two miles per dollar* when using their Delta SkyMiles Credit Card, for a total of up to 13 miles per dollar. The updated program will better reward the customers who spend more with Delta and give them improved mileage-earning opportunities.

The updated mileage-earning plan, for travel beginning January 1, 2015, will better recognize frequent business travelers and those less frequent leisure customers who purchase premium fares. The move is consistent with a trend in the travel industry of rewarding customer behavior based on price. Customers will continue to earn additional miles for purchases with a Delta SkyMiles Credit Card+.

MILEAGE EARNING

SkyMiles program status Miles per dollar* Miles earned with

Credit Card*+

Total miles per

dollar*

General member 5 +2 7
Silver Medallion 7 +2 9
Gold Medallion 8 +2 10
Platinum Medallion 9 +2 11
Diamond Medallion 11 +2 13
+ on Delta spend

For travel marketed and ticketed by Delta’s partner airlines, members will earn a percentage of miles flown as determined by the fare class purchased and will also earn Medallion mileage bonuses on eligible fares.

New Redemption Options

SkyMiles members will gain even more redemption options with the introduction of up to a five-tier structure to give them a wider variety of Awards and improve overall availability at the lowest price points. The lowest level for SkyMiles Saver Awards will remain at 25,000 miles for an Economy Class Award ticket for travel within the U.S. and Canada excluding Hawaii. All of Delta’s worldwide redemption charts will be updated to reflect the new options in the last quarter of 2014 and will be effective for new Award bookings beginning Jan. 1, 2015.

In addition to offering multiple new redemption levels, the SkyMiles program will also introduce One-Way Award tickets starting as low as 12,500 miles within the U.S. and Canada excluding Hawaii and will offer customers the ability to redeem Miles + Cash to provide more Award booking options for tickets purchased at delta.com or through Delta reservations.

Customers will continue to have access to every seat on any Delta flight as an Award seat with no blackout dates. In 2013, frequent flyers redeemed more than 271 billion miles in the SkyMiles program for more than 11 million Award redemptions.

Delta and the SkyMiles Program

Delta is the only major airline that offers elite perks such as unlimited complimentary upgrades, no mileage expiration, no Award fees, a published Diamond Medallion tier and rollover Medallion Qualification Miles.

Now in its 33rd year, SkyMiles is one of the longest-running and most successful loyalty programs in the travel industry. Delta offers many ways to redeem frequent flyer miles, including airline tickets on Delta and 28 partner airlines, mileage upgrades, car rentals, hotel stays and Delta Sky Club memberships, and is the only major airline with miles that don’t expire. For more information on the SkyMiles program, Medallion status and mileage-redemption options.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-451 N673US (msn 30268) departs from Los Angeles International Airport.

Delta Air Lines (current): AG Slide Show

Delta to add two new routes from Los Angeles

Delta Air Lines (Atlanta) is planning to add two new routes from Los Angeles in June including the first Boeing 717 route. According to Airline Route the carrier will add Delta Connection daily service from LAX to Boise, Idaho with Embraer 175s starting on June 5.

The first Boeing 717 route from LAX will operate between LAX and Austin, Texas on a daily basis starting on June 16.

In other news, seasonal Delta Connection flights will be operated from the Minneapolis/St. Paul hub to Idaho Falls with Bombardier CRJ900s three days a week from June 7 through October 29 per Airline Route.

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 717-2BD N995AT (msn 55139) lands at the Atlanta hub.

Delta Air Lines: AG Slide Show

Delta adds two new routes to Cleveland

Delta Air Lines (Atlanta) on June 5 will add two new routes to Cleveland on June 5 partially filling the void left by departing United Airlines. Indianapolis and Raleigh/Durham will received nonstop Delta Connection service to CLE per Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Former Comair Bombardier (Canadair) CRJ200 (CL-600-2B19) N455CA (msn 7592) now being operated by SkyWest Airlines arrives in Los Angeles.

Delta Air Lines (current): AG Slide Show

Delta Connection-SkyWest: AG Slide Show

 

Delta to pay $506 million in employee profit sharing

Delta Air Lines (Atlanta) today will pay its employees more than a half-billion dollars in earned profit sharing – the highest payout in company history – in recognition for their industry-leading performance in 2013. Employees’ individual payouts will equal 8.26 percent of their eligible 2013 earnings.

Along with base pay, Delta provides employees with additional compensation elements like profit sharing, designed to allow employees to earn more when the company performs well. Additionally, Delta employees can earn monthly bonuses for meeting corporate operational goals throughout the year, known as Shared Rewards.

In 2013, Delta employees help achieve the corporate financial and operational goals earning $91.7 millionin Shared Rewards, which, combined with profit sharing, totals $598 million in bonus performance pay for the year. Delta has paid out nearly $1.7 billion in profit sharing and Shared Rewards during the past four years.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Brand new Boeing 737-932 ER N812DN (msn 31923) arrives in Los Angeles.

Delta Air Lines: AG Slide Show

Delta adds even more feeder routes to Seattle/Tacoma

Delta Air Lines (Atlanta) will add new service from Seattle-Tacoma International Airport, including nonstop service to Phoenix Sky Harbor International Airport and seasonal nonstop service to Palm Springs International Airport. Delta will also add new and expanded service from Seattle/Tacoma to seasonal destinations as it continues building its domestic network.

Delta’s new Seattle/Tacoma service beginning on December 20, 2014 includes:

  • Five daily flights to Phoenix
  • One daily seasonal flight to Palm Springs, California
  • Saturday seasonal service to Tucson, Arizona
  • Saturday seasonal service to Jackson Hole, Wyoming
  • One additional nonstop flight to Honolulu for a total of two daily flights

Expanded seasonal service beginning in September includes:

  • One new daily nonstop flight to Anchorage, Alaska for a total of two daily flights in September and three daily flights during the summer

Delta’s new service to Phoenix, Palm Springs and Tucson will be operated by Delta Connection carrier SkyWest Airlines (St. George, Utah) using two-class, 76-seat aircraft, while Jackson Hole service will be operated with two-class, 65-seat aircraft. The expanded Honolulu and Anchorage service will be operated by Delta using Boeing 757 (above) and Boeing 737 aircraft, respectively.

By this summer, Delta will offer more than 2,500 daily international seats as part of its 79 peak-day departures to 25 destinations.

In addition to the expanded service, Delta will also adjust current arrival and departure times in Seattle/Tacoma to offer easier connections for customers traveling through the hub.

Delta recently announced expanded Seattle/Tacoma service from Anchorage; Fairbanks, Alaska; Juneau, Alaska; Las Vegas; Los Angeles; Portland, Oregon; San Diego; San Francisco; San Jose, California; and Vancouver to support its growing international gateway that currently operates nonstop flights to Amsterdam, Beijing, Paris-Charles de Gaulle, Shanghai-Pudong and Tokyo. The airline will also begin operating new nonstop international service this year to London-Heathrow beginning in March as well as Hong Kong and Seoul in June, pending government approval.

Every long-haul international Delta flight from Seattle/Tacoma now features full flat-bed seats in BusinessElite, Economy Comfort seating and entertainment on demand in every seat throughout the aircraft.

Delta currently operates 34 peak-day departures to 15 destinations from Seattle/Tacoma, and every flight offers BusinessElite/First Class and Economy Comfort seating as well as domestic Wi-Fi service. The airline has also invested $14 million in its facilities at Sea-Tac, including its recently completed lobby renovations, new Delta Sky Club, Sky Priority services, new gate area power recharging stations and expanded ticket counters.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 757-232 N6716C (msn 30838) pictured at SeaTac is named for Rev. Dr. Joseph E. Lowery, Dean of the Civil Rights Movement.

Delta Air Lines (current): AG Slide Show

 

Delta to offer nonstop New York LaGuardia-Bozeman, Montana flights this summer

Delta Air Lines (Atlanta) will operate weekly summer seasonal nonstop flights from New York (LaGuardia) to Bozeman, Montana starting on on June 21. The flights will be operated on Saturdays with Airbus A319s through September 27. Bozeman markets itself as the gateway airport to Yellowstone National Park mainly in Wyoming.

United Airlines also serves Bozeman from Newark and will also offer summer service from and to Houston (Bush Intercontinental) from June 28 and August 17 according to the Bozeman Daily Chronicle.

Read the full article: CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A319-114 N344NB (msn 1766) prepares to start its runway run at Los Angeles International Airport (LAX).

Delta Air Lines (current): AG Slide Show

 

Is Alaska Airlines moving closer to American Airlines?

Alaska Airlines (Seattle/Tacoma), as we have previously reported, has been trading “I will match you” route additions with Delta Air Lines (Atlanta) at their respective hubs at Seattle/Tacoma (SEA) and Salt Lake City (SLC). These moves come even though Alaska Airlines has an extensive feeder and code-share relationship with Delta. Delta even named a new Boeing 737 after the city of Seattle! Simply put, each carrier feeds each other at both SEA and SLC. However that close relationship began to unravel when Delta started adding feeder routes of its own at SEA, basically inferring to Alaska the relationship could be on the rocks. The aggressive move at SEA by Delta may have spurred Alaska to look to the new American Airlines (Dallas/Fort Worth) (soon to become the largest airline in the world) for help and possibly a closer relationship. The two carriers already have a code-share relationship. A merger is probably out of the question since AA is becoming the largest carrier already and already had to overcome DOJ merger objections. The question will be in 2014 and beyond, will both carriers expand their relationship to fight off the advances of Delta at SEA?

Ted Reed of The Street (of Jim Cramer fame) looks at this intriguing question: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-890 N586AS (msn 35189), despite the Hawaiian Lei on the tail, arrives at a frigid Washington Reagan National Airport on January 18, 2014. The famous Eskimo tail emblem is expected to survive the next livery for Alaska Airlines that has been promised for this year.

Alaska Airlines: AG Slide Show

Delta reports fourth quarter net income of $558 million, $2.7 billion for 2013

Delta Air Lines (Atlanta) today reported financial results for the December 2013 (fourth) quarter.  Key points include:

  • Delta’s net income for the December 2013 quarter was $558 million, or $0.65 per diluted share, excluding special items1.
  • Delta’s net income for 2013 was $2.7 billion, excluding special items, a $1.1 billion increase over 2012.
  • Delta’s GAAP net income was $8.5 billion, or $9.89 per diluted share, for the December 2013 quarter and $10.5 billion for 2013.  These results include an $8.0 billion non-cash gain associated with the reversal of the company’s tax valuation allowance.
  • 2013 results include $506 million in profit sharing expense, including $119 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s financial goals.
  • Delta generated nearly $5 billion of operating cash flow and $2.1 billion of free cash flow in 2013, allowing the company to reduce its adjusted net debt at the end of 2013 to $9.4 billion, contribute an incremental $250 million above required funding to its defined benefit pension plans, and return $350 million to shareholders through a combination of $100 million of dividends and $250 million of share repurchases.

Revenue Environment

Delta’s operating revenue improved 6 percent, or $474 million, in the December 2013 quarter compared to the December 2012 quarter.  Traffic increased 2.0 percent on a 2.9 percent increase in capacity.

  • Passenger revenue increased 6.1 percent, or $451 million, compared to the prior year period.  Passenger unit revenue (PRASM) increased 3.0 percent year over year with a 4.0 percent improvement in yield.
  • Cargo revenue decreased 1.0 percent, or $3 million, as higher freight volumes partially offset declining freight yields.
  • O ther revenue increased 2.8 percent, or $26 million, driven by higher SkyMiles revenue.

Comparisons of revenue-related statistics are as follows:

Increase (Decrease)
4Q13 versus 4Q12
Change Unit
Passenger Revenue 4Q13 ($M) YOY Revenue Yield Capacity
Domestic 3,784 9.4 % 6.6 % 7.9 % 2.6 %
Atlantic 1,208 1.9 % 0.1 % 0.7 % 1.8 %
Pacific 803 (1.6) % (2.2) % (1.5) % 0.6 %
Latin America 517 18.5 % 1.9 % 0.3 % 16.3 %
Total mainline 6,312 7.0 % 3.7 % 4.5 % 3.3 %
Regional 1,562 2.3 % 1.4 % 3.5 % 0.8 %
Consolidated 7,874 6.1 % 3.0 % 4.0 % 2.9 %

Cost Performance

Total operating expense in the quarter increased 1.5 percent, or $125 million, year-over-year driven by higher volume and revenue-related expenses; the impact of operational, service and employee investments; and $56 million higher profit sharing expense.  These cost increases were partially offset by lower fuel expense and the savings from Delta’s structural cost initiatives.

Non-operating expense declined by $116 million as a result of prior year special items for early debt extinguishment and lower interest expense from debt reduction.  These items were partially offset by a $17 million negative impact from changes in foreign exchange rates.

Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was 1.4 percent higher in the December 2013quarter on a year-over-year basis, driven by the impact of wage increases and operational and service investments.  GAAP consolidated CASM decreased 1.4 percent.

Fuel expense, excluding mark-to-market adjustments, declined $91 million as a result of lower market fuel prices and better settled hedge performance. Delta’s average fuel price3 was $3.05 per gallon for the December quarter, which includes $0.06 in settled hedge gains.  On a GAAP basis, fuel expense for the December quarter decreased $186 million year-over-year, driven by lower market fuel prices and mark-to-market gains on hedges in the current quarter.

Operations at the Trainer refinery produced a $46 million loss for the December quarter and a $116 million loss for the full year.  While lower crack spreads pressured results at the refinery, they also reduced market jet fuel prices and helped lower Delta’s overall fuel expense.

Cash Flow

Cash from operations during the December 2013 quarter was $1.2 billion, driven by the company’s December quarter profit and working capital initiatives, which were partially offset by the normal seasonal decline in advance ticket sales.  Cash from operations is net of a $250 million incremental contribution made by Delta to its defined benefit pension plans during the quarter.  The company generated $260 millionof free cash flow.

Capital expenditures during the December 2013 quarter were $900 million, including $835 million in fleet investments and $16 million for the purchase of 4 aircraft off lease. During the quarter, Delta’s net debt maturities and capital leases were $335 million.

In the December quarter, the company returned $200 million to shareholders.  On Nov. 26, the company paid $51 million to shareholders, which represents a $0.06 per share quarterly dividend.  In addition, the company repurchased 5.5 million shares at an average price of$27.39 for a total of $150 million.  The company has completed $250 million of the $500 million share repurchase plan authorized by Delta’s Board of Directors in May 2013.

Delta ended the quarter with adjusted net debt of $9.4 billion and the company has now achieved over $7.5 billion in net debt reduction since 2009.  This debt reduction strategy produced a $28 million year-over-year reduction in interest expense in the December quarter and a $153 million reduction for 2013. 

Reversal of Tax Valuation Allowance

Delta’s expectations for sustainable future profitability combined with its consistent and strong profitability over the past four years resulted in the reversal of the company’s tax valuation allowance in the December quarter.  The reversal of the tax valuation allowance resulted in a non-cash net gain of $8.0 billion in the December quarter.  Beginning in the March 2014 quarter, net income will be reduced to reflect a 39% tax rate; however, there will be no cash impact as Delta’s net operating loss carryforwards will offset cash taxes on more than $15 billion of future taxable income.

Special Items

Delta recorded a $7.9 billion special items gain in the December 2013 quarter, including:

  • an $8.0 billion non-cash gain associated with the reversal of the Delta’s tax valuation allowance, as detailed above;
  • a $92 million mark-to-market gain on fuel hedges; and
  • a $160 million charge for facilities, fleet and other, including charges associated with Delta’s domestic fleet restructuring.

Delta recorded a $231 million special items charge in the December 2012 quarter, including:

  • a $122 million charge for facilities, fleet and other, including charges associated with the company’s domestic fleet restructuring;
  • a $106 million loss on early extinguishment of debt primarily due to the company’s Pacific route credit facility refinancing; and
  • a $3 million mark-to-market loss on fuel hedges.

March 201 4 Quarter Guidance

Following are Delta’s projections for the March 2014 quarter:

1Q 2014 Forecast
Operating margin 6 – 8%
Fuel price, including taxes, settled hedges and refinery impact $2.97 – $3.02
Non-operating expense $235 – $250 million
1Q 2014 Forecast(compared to 1Q 2013)
Consolidated unit costs – excluding fuel expense and profit sharing Up 0.5 – 1.5%
System capacity Up 2 – 3%

Other Matters

Included with this press release are Delta’s unaudited Consolidated Statements of Operations for the three and twelve months ended Dec. 31, 2013 and 2012; a statistical summary for those periods; selected balance sheet data as of Dec. 31, 2013 and 2012; and a reconciliation of non-GAAP financial measures.

End Notes
(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) CASM – Ex: In addition to fuel expense, profit sharing and special items, Delta believes excluding ancillary business costs is helpful to investors because ancillary business costs are not related to the generation of a seat mile. These businesses include aircraft maintenance and staffing services Delta provides to third parties and Delta’s vacation wholesale operations. The amounts excluded were $182 million and $185 million for the December 2013 and December 2012 quarters, respectively. Management believes this methodology provides a more consistent and comparable reflection of Delta’s airline operations.
(3) Average fuel price per gallon: Delta’s December 2013 quarter average fuel price of $3.05 per gallon reflects the consolidated cost per gallon for mainline and regional operations, including contract carrier operations, and includes the impact of fuel hedge contracts with original maturity dates in the December 2013 quarter. On a GAAP basis, fuel price includes $92 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period. The net refinery loss for the quarter was $46 million.  See Note A for a reconciliation of average fuel price per gallon to the comparable GAAP metric.

Copyright Photo: Tony Storck/AirlinersGallery.com. Delta is adding leased Boeing 717s to the fleet. Formerly painted in the Atlanta Falcons special livery with AirTran Airways, Boeing 717-2BD N891AT (msn 55043) is now plying the skies with Delta. N891AT lands at Baltimore/Washington.

Delta Air Lines (current): AG Slide Show

Delta Air Lines (historic): AG Slide Show

Delta to put Microsoft Surface 2 tablets in the hands of its pilots in May

Delta logo

Delta Air Lines (Atlanta) has selected the Microsoft Surface 2 tablets for its pilots. The airline will be distributing the new device to its pilots in May. Other airlines are using Apple’s iPad so this is a breakthrough for Microsoft.

Watch this video report from Bloomberg: CLICK HERE

Delta Air Lines: AG Slide Show

Delta to refresh the cabins on its Airbus A319s and A320s, Boeing 757-200s and 737-800s

Delta Air Lines (Atlanta) will invest more than $770 million through 2016 to refresh the interiors on its Boeing 757-200, 737-800, Airbus A319 and A320 aircraft to provide power at every seat, add new slim-line seats with adjustable headrests, updated lavatories, add more efficient galleys and additional features to improve passenger comfort.

This latest capital investment will improve the service consistency provided to Delta’s customers in First Class and Economy cabins as well as increasing aircraft efficiency and overall customer satisfaction of the airline’s domestic narrowbody fleet.

The investment continues Delta’s multi-year focus on passenger comfort that began in 2010. All Delta international widebody aircraft will include full flat-bed seats with direct-aisle access in BusinessElite by mid-2014 and all transcontinental flights will have full flat-bed seats in BusinessElite by summer 2015. The investments have maintained more First Class seats than any U.S. carrier; offer more in-flight entertainment options; provided access to Wi-Fi on all domestic two-class domestic aircraft with expansion to its entire international fleet by 2015; offer Economy Comfort seats on all two-class aircraft to give customers extra legroom; and increase access to power for customers in-flight.

757-200 aircraft improvements

Delta’s modifications to 56 of its 757-200 aircraft will include installing in-seat video, satellite TV and access to power for every passenger, along with new galleys, updated LED cabin lighting, new lavatory designs as well as larger capacity overhead bins. Delta will be the first carrier in North America to install the new bin system which will increase passenger carry-on baggage capacity by more than 50 percent.

The 49 modified domestic aircraft will feature a layout of 20 First Class seats, 29 Economy Comfort seats and 150 Economy seats. The remaining seven 757-200 international aircraft will have a configuration of 18 First Class seats, 28 Economy Comfort seats and 151 Economy seats.

737-800 aircraft improvements

The investment in 43 of Delta’s 737-800 aircraft will include the addition of in-seat video with satellite TV, new LED cabin lighting and updated lavatories. The aircraft will be configured with 16 First Class seats, 18 Economy Comfort seats and 126 Economy seats.

When the modifications are complete, Delta’s entire fleet of 73 737-800 aircraft will have in-seat video with access to satellite TV and in-seat power throughout the aircraft.

A319 and A320 aircraft improvements

Delta’s 57 A319 and 69 A320 aircraft will receive complete interior updates including new seats in both First Class and Economy cabins with in-seat power throughout the aircraft. The aircraft will also receive new space-saving galleys, new lavatories, new larger-capacity overhead bins with an average increase of 60 percent more carry-on baggage space, updated LED lighting systems and new cabin interiors. Updates to the A319 fleet will also include the installation of in-seat video with satellite TV.

The A319 will include 12 seats in First Class and the A320 will have 16 First Class seats. All Economy seats on both aircraft types will feature wider seats with an increase from the current 17.2 inches to 18 inches for each seat. Both fleets will have 18 Economy Comfort seats with 34 inches of pitch. Economy seats will each have 31 inches of pitch on both aircraft with 102 seats on the A319 and 126 seats on the A320.

Today’s announcement builds on Delta’s industry leadership in exceeding customer expectations by being the first U.S. airline to allow customer use of portable electronic devices below 10,000 feet, providing more in-flight Wi-Fi than any other airline, introducing the Sky Deck at Delta Sky Clubs in New York-JFK andAtlanta in 2013, being the only U.S. domestic carrier to offer personal, on demand entertainment at every seat on all long-haul international flights and offering flat-bed seating with direct-aisle access across its international widebody fleet by mid-2014.

Delta has invested more than $3 billion dollars since 2010 to improve the customer experience onboard its aircraft and improve technology and facilities including its new Terminal 4 at New York-JFK, Maynard H. Jackson Jr. International Terminal in Atlanta. Delta has also spent more than $100 million to expand, renovate and consolidate terminals C and D at New York-LaGuardia Airport. Additionally, customers have seen Delta’s investment in its more than 50 Delta Sky Clubs throughout the system, installation of power poles in gate areas at more than 40 airports and updates to the popular Fly Delta app which has been downloaded by nearly 10 million customers.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A320-212 N364NW (msn 962) prepares to roll down the runway at Los Angeles International Airport.

Delta Air Lines: AG Slide Show

Airline and Aircraft Galleries: AG Galleries

Delta operates its last DC-9 flight with N773NC, expands Boeing 717 operations

Delta Air Lines (Atlanta) yesterday (January 6) as planned and previously announced, operated its last DC-9 flight. The pictured McDonnell Douglas DC-9-51 N773NC (msn 47775) (above) and crew had the honor of operating the very last DC-9 revenue flight as flight DL 2014 between Minneapolis/St. Paul and Atlanta.

With the cold temperatures in both MSP and ATL there was not the traditional water cannon salute.

N773NC was originally delivered to North Central Airlines on October 26, 1978. With the merger with Southern Airways it became Republic Airlines on July 1, 1979. With the Republic merger into Northwest Airlines it took on the red tail on October 1, 1986. Finally it joined the Delta fleet on October 29, 2008 with the Delta-Northwest merger.

Delta operated 13 DC-9-51s in January up to the last flight operated by N773NC. Five DC-9-51s were retired in 2013, six in 2012 and 10 in 2011 according to Airliners.net. One DC-9-51 will be reserved for a museum. Delta is reportedly holding on to two DC-9-51s as spare aircraft for a few days while the newer Boeing 717s replace the DC-9-51s. The other DC-9-51 will end up in the desert where they will be broken up for the parts and the recyclable metal.

Read the full story from the Associated Press: CLICK HERE

Read the full story from Time: CLICK HERE

In other news, Delta is expanding the number of routes served by the new Boeing 717. The airline is introducing the 717 from Atlanta to Augusta (April 1), Chicago (Midway) (April 1), Dallas (Love Field) (October 13), Fayetteville (April 1) and Houston (Bush Intercontinental) (April 1) per Airline Route.

Top Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-51 N773NC (msn 47775) faithfully served four airlines right up to the last flight. N773NC arrives at MSP.

Delta Air Lines: AG Slide Show

Airline and Aircraft Galleries: AG Galleries

Bottom Copyright Photo: Tony Storck/AirlinersGallery.com. The Boeing 717 started operating to Baltimore/Washington (BWI) yesterday (January 6) with the DC-9-51 retirements. Delta painted the first ex-AirTran Airways Boeing 717 in September 2013, namely the pictured N935AT, which is pictured arriving at BWI. Delta is leasing the entire AirTran fleet of 88 Boeing 717s from Southwest Airlines (Dallas). The new type was introduced on September 19, 2013 between the Atlanta hub and Newark. The DL 717s feature 12 seats in First Class, 15 seats in Economy Comfort and 83 seats in Economy. N935AT was originally delivered to TWA as N402TW on April 11, 2000.

Delta is a ultra low-fare airline (for one day)

Delta logo

Delta Air Lines (Atlanta) suffered through a computer glitch yesterday that for a short period offered very low fares, such as a reported New York-Los Angeles ticket for $40. The airline has fixed the probably and to its credit, will honor the tickets.

Read the full report from Reuters: CLICK HERE

Delta Air Lines: AG Slide Show

Holiday messages from the airlines, our warmest wishes to our readers

It is a different environment out there these days for the airlines. They have to compete on many levels of service and also now in the growing social media to grab the attention of the potential customers. This includes the new and growing art of producing top-viewing videos to convey their messages including holiday greetings. Any airline which fails to recognize this new trend and operate creatively in this new venue will be left behind.

Since we like to report on new trends in air transportation, our intent with this sampling is to show you some of the best holiday messages this year being produced by the airlines. If you know of any good holiday airline messages that we missed please send us the link and we will add it to this list.

Christmas Elves

Air New Zealand has been at the cutting edge of this new media. Their videos get some of the top scores and visits. Here is their short holiday message:

Delta brought out their “Cheer Cart” for the holidays:

And a special holiday safety video:

WestJet had a big media splash this season and took a great leap forward with three blockbuster Christmas videos including one that granted its passenger’s wishes at bag claim:

Christmas Happy Holiday

We would like to take this opportunity to wish all of our loyal readers, contributors and supporters the best in holiday greetings and wishes. Thank you for your readership, friendship, contributions and support of our AG products and our advertisers.

Christmas Candles #1

Copyright Photo: Arnd Wolf/AirlinersGallery.com. Airberlin has had a Christmas tradition of painting one of its aircraft in a special holiday livery. This year the theme is “Flying home for the holidays” and it features candles at each window on the pictured Boeing 737-86J D-ABMS (msn 37782). The affect is also different at night where the cabin light illuminates each candle at each window.

Christmas Gingerbread

Delta officially announces it will retire its last Douglas DC-9 on January 6

Delta Air Lines (Atlanta) has now officially announced on what we previously reported. The airline today issued this statement on the last Douglas DC-9 flight in the history of the airline.

Delta Air Lines on January 6, 2014 will retire its remaining Douglas DC-9 aircraft following flight DL 2014 scheduled to depart Minneapolis/St. Paul for Atlanta at 4:20 p.m. (CST) (1620), the last scheduled commercial flight of the DC-9 by a major U.S. airline.

“The DC-9 has been a workhorse in our domestic fleet while providing a reliable customer experience,” said Nat Pieper, Delta’s vice president – Fleet Strategy. “The aircraft’s retirement paves the way for newer, more efficient aircraft.”

Since 2008, Delta has removed or retired more than 350 aircraft from its fleet including 50-seat Bombardier CRJ200s; SAAB 340Bs and McDonnell Douglas DC-9s; while adding economically efficient, proven-technology aircraft such as the Boeing 777-200 LR; two-class, 65 and 76-seat regional jets and variants of the 737 and 717, largely on a capacity-neutral basis.

The DC-9 retirement comes just months after Delta began taking delivery of its orders of 88 Boeing 717-200 aircraft and 100 Boeing 737-900 ER aircraft, which began entering service in October and November, respectively. Each aircraft features a First Class cabin and slim-line seats throughout Delta’s Economy Comfort and Economy cabin along with Wi-Fi connectivity and in-seat power ports. Additionally, the Boeing 737-900 ER offers on-demand entertainment throughout the cabin. Delta also recently announced its order for 40 Airbus aircraft including 30 narrowbody A321s, which will begin to be delivered in 2016.

Delta was the launch customer for the original 65-seat version of the DC-9-14 in 1965 as the airline replaced propeller aircraft on high-frequency, short-haul domestic routes. The twin-engine plane was removed from the Delta fleet in 1993, but larger variants reentered service following the merger with Northwest Airlines; those aircraft joined Northwest after it acquired Republic Airlines in 1986. Delta has flown a total of 305 DC-9s since 1965.

To acknowledge the DC-9′s retirement, the last flight has been tagged DL 2014 noting the final year of service, while the preceding flight operating from Detroit to Minneapolis/St. Paul will be flight DL 1965, the aircraft’s initial year of service.

The last DC-9 to be operated by Delta is the pictured DC-9-51 (top). It is unclear at this time which aircraft will be flown on the last historic flight.

Well done Delta for recognizing and honoring your rich history.

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-51 N787NC (msn 48149) arrives at the MSP hub.

Delta Air Lines: AG Slide Show

Video: Inside the cockpit of DC-9-51 N774NC:

 

 

Will Delta Air Lines make a bid to take over and merge Alaska Airlines?

Delta Air Lines (Atlanta) and Alaska Airlines (Seattle/Tacoma) have been adding competitive routes at their rival’s hubs in Seattle/Tacoma and Salt Lake City. Something is going with these partners as each carrier is doing a tit for tat with new routes.

The bigger question now being raised is will Delta make a hostile bid to acquire and merge Alaska? Assuming it would be approved, it would allow Delta to leap again back to being the largest carrier in thew world again.

Alaska is a profitable airline and has always preferred to stay independent.

Will a bidding war develop for Alaska? If not, will Delta continue adding routes to and from Seattle/Tacoma?

Can Alaska remain independent?

Bloomberg explores these possibilities.

Read the full article: CLICK HERE

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Delta’s Airbus A320-212 N365NW (msn 964) taxies to the runway at SeaTac.

Alaska Airlines: AG Slide Show

Delta Air Lines: AG Slide Show

Bottom Copyright Photo: Bruce Drum/AirlinersGallery.com. Alaska’s Boeing 737-890 N590AS (msn 35687) also taxies at the SeaTac hub.

Delta to add even more routes from Seattle/Tacoma

Delta Air Lines (Atlanta) will add new daily nonstop flights to Seattle-Tacoma International Airport from San Jose International Airport and Juneau International Airport as well as an additional flight from Ted Stevens Anchorage International Airport, all beginning on May 29, 2014. The new service will provide customers with convenient connections to the airline’s growing international network from Seattle/Tacoma.

Delta’s new and expanded Seattle/Tacoma service includes:

  • Four new daily nonstop flights from San Jose, California
  • One new daily summer seasonal flight from Juneau, Alaska – a new city to Delta’s network
  • One additional summer seasonal flight from Anchorage for a total of three daily nonstop flights

“The Pacific Northwest economy is one of the fastest-growing in the U.S., and a big part of why we’re adding domestic flights in support of our growing global gateway in Seattle,” said Mike Medeiros, Delta’s vice president – Seattle. “By next summer, we’ll offer more than 2,500 daily international seats as part of our 79 peakday departures to 25 destinations.”

Delta’s new service from San Jose will be operated by Delta Connection carrier SkyWest Airlines using 76-seat, two-class CRJ900s. The airline’s new Juneau service as well as the additional Anchorage summer seasonal flight will be operated with a Boeing 737-800. Each aircraft is equipped with First Class and Economy Comfort seating as well as onboard Wi-Fi.

The airline recently announced expanded Seattle/Tacoma service to Anchorage, Alaska, Fairbanks, Alaska, Las Vegas, Los Angeles, Portland, Oregon, San Diego, San Francisco and Vancouver to support its increasing international network that currently operates nonstop flights to Amsterdam, Beijing, Paris, Shanghai-Pudong and Tokyo. The airline will also operate new nonstop international service in 2014 to London-Heathrow in March as well as Hong Kong and Seoul in June, pending government approval.

Delta currently operates 35 peak-day departures to 15 destinations from Seattle/Tacoma.

Besides adding QB Russell Wilson, what will be the competitive response from “partner” Alaska Airlines?

Copyright Photo: Bruce Drum/AirlinersGallery.com. Delta’s Boeing 737-832 N3757D (msn 30813) taxies to the gate at SeaTac.

Delta Air Lines: AG Slide Show

Delta’s flight 385 slips off the taxiway at Madison, Wisconsin

Delta logo

Delta Air Lines (Atlanta) flight DL 385 from the Minneapolis/St. Paul hub to Madison, Wisconsin with a Boeing 737-800 (N372DA) slipped off the taxiway after missing a turn after exiting the runway. The aircraft’s nose gear went into the snow covered ground at Madison yesterday afternoon (December 16). There were no injuries to the 60 passengers and six crew members on board. There was a snowstorm at the airport during the incident.

Read the full story from the Wisconsin State Journal: CLICK HERE

Delta Air Lines: AG Slide Show

Delta adds extra sections and charter flights for the 2014 Bowl Championship Series

Delta Air Lines (Atlanta) has added flights to support fans traveling to the Bowl Championship Series, including the National Championship Game in Pasadena, California as well as the Rose Bowl, Sugar Bowl and Orange Bowl.

A schedule of flights and cities are below:

National Championship, Pasadena, California – January 6, 2014:

Date

Departure Departure Time Arrival Arrival Time

Jan. 4

Tallahassee, Fla.

9:45 a.m. Los Angeles 11:40 a.m.

Jan. 4

Tampa, Fla. 10 a.m. Los Angeles 12:28 p.m.

Jan. 4

Birmingham, Ala. 9:45 a.m. Los Angeles 11:25 a.m.

Jan. 4

Birmingham, Ala. 10:45 a.m. Los Angeles 12:25 p.m.
Jan. 7 Los Angeles 10:05 a.m. Tallahassee, Fla. 5:30 p.m.

Jan. 7

Los Angeles 10:55 a.m. Tampa, Fla. 6:20 p.m.

Jan. 7

Los Angeles 12:55 a.m. Birmingham, Ala. 6:55 a.m.

Jan. 7

Los Angeles 09:05 a.m. Huntsville, Ala. 3:05 p.m.
Jan. 7 Los Angeles 10:30 a.m. Birmingham, Ala. 5:37 p.m.
Jan. 7 Los Angeles 11:30 a.m. Atlanta 6:44 p.m.
Jan. 7 Los Angeles 11:40 a.m. Birmingham, Ala. 5:38 p.m.
Jan. 7

Los Angeles

11 a.m. Atlanta 6:14 p.m.
Jan. 7

Burbank, Calif.

12:20 p.m. Atlanta 7:32 p.m.

Rose Bowl, Pasadena, California – January 1, 2014:

Date

Departure

Departure Time Arrival Arrival Time
Dec. 31 Detroit 10 a.m. Los Angeles 12:11 p.m.
Jan. 2

Los Angeles

10 a.m. Detroit 5:28 p.m.
Jan. 2

Burbank, Calif.

12:25 p.m. Detroit 7:30 p.m.
Jan. 2

Los Angeles

12:30 p.m. Detroit 7:58 p.m.

Sugar Bowl, New Orleans – January 2, 2014:

Date Departure Departure Time Arrival Arrival Time
Jan. 1

Oklahoma City

10:30 a.m. New Orleans 12:10 p.m.
Jan. 3

New Orleans

9 a.m. Oklahoma City 10:50 a.m.

Orange Bowl, Miami, January 3, 2014:

Date Departure Departure Time Arrival Arrival Time
Jan. 2 Columbus, Ohio 9 a.m. Miami 11:30 a.m.
Jan. 5 Miami 9 a.m. Columbus, Ohio 11:45 a.m.

Delta traditionally adds capacity to support the strong demand for nonstop service associated with postseason sporting events.

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 757-232 N6715C (msn 30486) with the special Grammy Awards logo lands in Baltimore/Washington (BWI).

Delta Air Lines: AG Slide Show

Delta names a new Boeing 737-900 ER “The Spirit of Seattle”

Delta Air Lines (Atlanta) in another move to underscore its growing presence at Seattle-Tacoma International Airport (SEA) and in celebration of its 80th anniversary of service and growing presence in the Seattle/Tacoma area, unveiled at Boeing Field a new Boeing 737-900 ER aircraft (737-932 ER N809DN, msn 31915) as the ‘Spirit of Seattle,’ dedicated to the city of Seattle and the airline’s customers, employees and partners in the region.

The dedication took place in a ceremony at Boeing Field, the same location that Delta began service in Seattle on December 3, 1933, through Northwest Airways, which eventually became Northwest Airlines. The inaugural flight was flown from Spokane to Seattle and back to Spokane on a Waco JTO biplane carrying no passengers. Initial passenger service was a Tacoma-Seattle-Wenatchee-Spokane route using 7-passenger, 120-mph Hamilton H47 Metalplanes.

Today, Delta operates 35 peak-day departures to 15 destinations from its growing gateway in Seattle, including non-stop international service to Amsterdam, Paris, Tokyo-Narita, Tokyo-Haneda, Shanghai and Beijing. Additional international service is planned in 2014 to London-Heathrow as well as Hong Kong and Seoul, pending government approval. Delta will also expand Seattle service to Anchorage, Alaska; Las Vegas; Los Angeles; Portland, Ore.; San Diego; and San Francisco and also recently announced new service to Fairbanks, Alaska, and Vancouver, Canada, beginning in the summer of 2014.

More than 100 Delta Chairman’s Club honorees attended the dedication event along with local employees and corporate and community partners. The honorees are accompanying the aircraft on its delivery flight from Seattle to Atlanta prior to entering service later this month. Chairman’s Club is Delta’s highest honor in employee recognition, and honorees embody Delta’s values through their distinguished contributions and exceptional service to customers and the communities Delta serves.

The ‘Spirit of Seattle’ is the ninth of 100 new 737-900 ERs that will be delivered to Delta between 2013 and 2018 as it retires older mainline jets and upgrades its fleet. The 737-900 ER will be deployed on several routes to and from Seattle/Tacoma, among others, and has a range of 3,200 nautical miles, giving it the ability to operate any domestic route in Delta’s extensive network.

Delta will take delivery of three additional 737-900 ERs this year for a total of 12 aircraft in 2013, 19 aircraft per year in 2014 through 2017, and 12 aircraft in 2018. The 180-seat aircraft will replace older, less efficient aircraft on a capacity-neutral basis while providing customers with an industry-leading on-board experience.

As Delta’s first aircraft to feature Boeing’s new “Sky Interior,” the 737-900 ER offers the airline’s customers expanded carry-on baggage space, a roomier, more airy cabin and an LED lighting system that provides different color schemes, such as a soft blue sky and a relaxing pallet of sunset colors.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Sister ship Boeing 737-932 ER N805DN (msn 31913), the fifth, was delivered on November 1, 2013.

Delta Air Lines: AG Slide Show

Bottom Copyright Photo: Joe G. Walker/AirlinersGallery.com. N809DN “The Spirit of Seattle” is seen at Boeing Field in Seattle.

Delta Air Lines Boeing 767-332 N182DN returns to Madrid with a missing wing panel, runs off the side of the runway

Delta Air Lines (Atlanta) flight DL 415 departed Madrid (Barajas) bound for New York (JFK) yesterday (December 4) with the pictured Boeing 767-332 ER N182DN (msn 25987). The flight was involved in an incident. According to Aviation Safety Network, the crew elected to return to MAD after reporting it blew a tire on takeoff. Pictures taken from the plane show a missing wing panel on the top of the right wing.

On landing the aircraft veered to the left and ended up off the side of runway 18R-36L in the grass.

Read the full report with photos from Foroaviones.com: CLICK HERE

Copyright Photo: Richard Vandervord/AirlinersGallery.com. Boeing 767-332 ER N182DN (msn 25987) taxies at Milan (Malpensa).

Delta Air Lines: AG Slide Show

Delta to add Seattle/Tacoma-Fairbanks flights on May 29, 2014

Delta Air Lines (Atlanta) will add new daily nonstop service to Seattle-Tacoma International Airport from Fairbanks International Airport and Vancouver International Airport, beginning May 29, 2014 and June 5, 2014, respectively.  We previously reported the new Seattle-Vancouver route.

Delta will offer customers five daily flights between Vancouver and Seattle, operated by Delta Connection carrier SkyWest Airlines (St. George, Utah) using 76-seat, two-class Bombardier CRJ900s. Additionally, the airline will begin one daily summer seasonal flight between Fairbanks, Alaska and Seattle/Tacoma using a Boeing 737-800. Each aircraft is equipped with First Class and Economy Comfort seating as well as onboard Wi-Fi.

Delta recently announced expanded Seattle/Tacoma service to Anchorage, Alaska, Las Vegas, Los Angeles, Portland, Oregon,, San Diego and San Francisco to support its increasing international network which currently operates nonstop flights to Amsterdam, Beijing, Paris, Shanghai-Pudong and Tokyo. The airline will also operate new nonstop international service in 2014 to London-Heathrow in March, as well as Hong Kong and Seoul in June, pending government approval.

Every long-haul international Delta flight from Seattle/Tacoma now features full flat-bed seats in BusinessElite, Economy Comfort seating and entertainment on demand in every seat throughout the aircraft.

Delta currently operates 35 peak-day departures to 15 destinations from Seattle/Tacoma, and every flight offers BusinessElite/First Class and Economy Comfort seating as well as domestic Wi-Fi service. The airline has also invested $14 million in its facilities at Sea-Tac, including its recently completed lobby renovations, new Delta Sky Club, Sky Priority services, new gate area power recharging stations and expanded ticket counters.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-832 N387DA (msn 30374) climbs away from the runway at Seattle-Tacoma International Airport (SEA).

Holidays Video by Delta:

Delta Air Lines: AG Slide Show

Delta to start Seattle/Tacoma – Vancouver service on June 5, 2014

Delta Air Lines (Atlanta) will start Delta Connection service (five flights a day) between its building Seattle/Tacoma focus city and Vancouver on June 5, 2014 per Airline Route. The new route will be operated with Bombardier CRJ900 aircraft (probably by SkyWest Airlines). This is another replacement of an Alaska Airlines/Horizon Air feeder route in the disintegrating Delta-Alaska relationship at SeaTac.

Copyright Photo: TMK Photography/AirlinersGallery.com. SkyWest Airlines’ Bombardier CRJ900 (CL-600-2D24) N822SK (msn 15203) taxies at Toronto (Pearson).

Delta Connection/SkyWest Airlines: AG Slide Show

Delta Air Lines to retire the last Douglas DC-9 on January 6, 2014

Delta Air Lines (Atlanta) although not yet officially announced, but published in the schedules, is currently planning to operate the last McDonnell Douglas DC-9-51 on January 6, 2014. An appropriately named flight DL 1965 will operate from Detroit to Minneapolis/St. Paul departing DTW at 3:39 pm (1539) and arriving at MSP at 4:43 (1643) followed by flight DL 2014 which will operate from Minneapolis/St. Paul to Atlanta as the last scheduled flight, departing MSP at 7:20 pm (1920) and arriving at ATL at 8:47 pm (2047) local time. An unspecified DC-9-51 will operate the last flights. Photos of the last flights are welcome.

Delta has been gradually dwindling down the former Northwest Airlines (and North Central Airlines) DC-9-51 fleet with 10 retirements in 2011, six in 2012 and four so far in 2013. According to Airliners.net, 14 were still in service as of November 19, 2013. One of these 14 aircraft will operate the last revenue flight on January 6, 2014. The aircraft will be ferried to the desert and eventually broken up for scrap metal.

This is actually the second Delta retirement of the DC-9. Delta previously retired its last original DC-9-32 on January 1, 1993. With the merger of Northwest Airlines on October 29, 2008, the DC-9 type was re-introduced back in the Delta fleet under the Delta name.

Delta Air Lines took delivery of its first 65-seat Douglas DC-9-14 (N3304L) (see N3314L below) on September 18, 1965. The new type entered revenue service on November 29, 1965 as flight DL 791 on the Atlanta-Memphis-Kansas City route.

177 total DC-9s were operated. Delta in its history operated the following DC-9 types:

16 DC-9-14s

1 DC-9-15 (leased from Jet International)

114 DC-9-31/32s

12 DC-9-41s

34 DC-9-51s

Information from the Delta Museum:

Delta DC-9 History

Top Copyright Photo: Bruce Drum/AirlinersGallery.com.  McDonnell Douglas DC-9-51 N773NC (msn 47775) completes its final approach into Minneapolis-St. Paul International Airport.

Delta Air Lines: AG Slide Show

Bottom Copyright Photo: Bruce Drum/AirlinersGallery.com. Douglas DC-9-14 N3314L sits at the old Atlanta maintenance base on January 27, 1970. The original delivery color scheme of the DC-9-14s included this forward-pointing widget which was later changed to the standard upright widget.

Delta Air Lines to add nonstop Orlando-Las Vegas flights on March 2

Delta Air Lines (Atlanta) on March 2, 2014 will launch a new nonstop route from Orlando to Las Vegas with Boeing 737-800 aircraft. The route will be operated three days a week per Airline Route.

Delta is also starting Raleigh/Durham-Las Vegas service on March 2, 2014. Both are traditional Southwest Airlines routes.

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 737-832 N393DA (msn 30377) prepares to land at Baltimore/Washington.

Delta Air Lines: AG Slide Show

Delta wants to expand operations at Dallas’ Love Field

Delta Air Lines (Atlanta) plans to add 18 daily nonstop flights to five destinations from Dallas Love Field in October 2014.

According to the airline, Delta’s planned expansion will enhance competition at the airport with new nonstop service to New York-LaGuardia, Los Angeles, Detroit, and Minneapolis-St. Paul. Delta also will add two daily flights to its existing Atlanta service.

Delta will require access to gates at Love Field in order to operate its expanded schedule. Delta has asked the U.S. Department of Justice to allow it to bid on Love Field gates as part of the divestiture of airport assets under a proposed settlement agreement with American Airlines and US Airways.

Currently at Love Field, 16 of the 20 gates and more than 95 percent of available seats are controlled by one airline, Southwest Airlines, which transports more passengers in the U.S. than any other carrier. Love Field has one of the highest concentrations of operations controlled by a single airline among the nation’s large airports.

The expanded Love Field service builds on Delta’s recent growth at Dallas/Fort Worth International Airport, where it currently operates 45 peak-day flights to eight destinations. Last year, Delta added new nonstop service between DFW and New York-LaGuardia. It also operates nonstop flights from DFW to Atlanta, Minneapolis-St. Paul, Detroit, Salt Lake City, Cincinnati, Memphis and New York-JFK.

When the expansion is complete, Delta would operate a total of 68 daily flights in the Dallas/Fort Worth region, including flights at both DFW and Love Field.

Delta’s expansion will be implemented following changes to the Wright Amendment, which previously restricted Love Field service to Texas, adjacent states and Missouri, Alabama, Kansas and Mississippi. Those restrictions are scheduled to end in October 2014.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-732 N302DQ (msn 29648) prepares to land at Dulles International Airport near Washington.

Delta Air Lines: AG Slide Show

Delta expands service at Boston

Delta Air Lines (Atlanta) will increase service at Boston’s Logan International Airport with daily year-round and seasonal service to the following seven destinations, including three new markets.

  • New daily service to Jacksonville, Florida and Richmond, Virginia, operated by Delta Connection carrier Endeavor Air using 76-seat, two-class Bombardier CRJ900s, effective March 3, 2014 and March 6, 2014
  • New service to Las Vegas with three flights per week operating a Boeing 737-800, effective March 6, 2014
  • Expanding service to Los Angeles with one additional flight for a total of two daily operating a Boeing 737-800, effective April 7, 2014
  • New Saturday-only summer seasonal service to Nassau, Bahamas, operated by Delta Connection carrier Shuttle America using 76-seat, two-class Embraer ERJ 175s as well as the Providenciales, Turks and Caicos Islands using an Airbus A320, effective March 8, 2014
  • Extended service to Cancun, previously scheduled to end April 26, 2014, now ending Aug. 30, 2014

Delta and joint venture partner, Virgin Atlantic, recently announced they will coordinate schedules and retime their respective Boston to Heathrow flights to offer customers more convenient and flexible travel options.

Delta currently operates 70 peak-day departures from Logan International Airport to 16 nonstop destinations. Delta’s new Boston service offers customers the option of First Class, Economy Comfort or economy seating, along with in-flight Wi-Fi on domestic flights.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 737-832 WL N3771K (msn 29632) is pictured in action at Los Angeles International Airport.

Delta Air Lines: AG Slide Show

Delta welcomes the settlement agreement between the DOJ and AMR-US Airways Group

Delta Air Lines (Atlanta) issued the following statement in response to the settlement of litigation brought by the U.S. Department of Justice challenging the merger of American Airlines and US Airways.

“Delta welcomes the settlement agreement and looks forward to the opportunity to acquire slots that will be divested under the agreement, particularly at Washington-Reagan National Airport. Delta is the airline best positioned to continue competitive nonstop flights from Reagan National to small- and mid-sized cities that could otherwise see service reduced or eliminated, which should be a strong consideration in the divestiture.”

Copyright Photo: Bruce Drum/AirlinersGallery.com. Delta’s Boeing 757-232 N6713Y (msn 30777) is pictured in action at Seattle-Tacoma International Airport.

Delta Air Lines: AG Slide Show

 

Delta and Virgin Atlantic outline their schedule plans for the summer of 2014

Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) today outlined details of a new joint venture flight schedule beginning summer 2014, aligning their services and offering more flight choices for travelers on both sides of the Atlantic.

The two airlines are putting the customer at the forefront of their partnership with the new schedule that starts March 30, 2014, combining their slots at London Heathrow to offer maximum customer convenience, particularly for business travelers.

Beginning, April 2, 2014, Delta will move its arrival and departure terminal for several important business markets to join Virgin Atlantic in Heathrow Terminal 3. This includes its London to New York-JFK, London to Boston, and new London to Seattle/Tacoma services and means the two airlines will co-locate on all its New York and Boston flights to London Heathrow. The move will allow for convenient connections and a seamless customer experience for customers flying with Virgin and Delta, including access to Virgin Atlantic’s award winning Clubhouse for all business class passengers.

Delta, in cooperation with Virgin Atlantic, will also operate a second daily service between London Heathrow and Detroit Metropolitan Airport effective June 1, 2014. The service will be particularly appealing to corporate customers needing an early morning arrival into London while offering more schedule choice for customers between London and the U.S. Midwest.

This additional flight will complement Delta’s previously announced new West Coast route between Seattle/Tacoma and London Heathrow, which will launch on March 29, 2014.

Virgin Atlantic is also making significant schedule changes. It is moving its VS1 Heathrow to Newark service from a late afternoon departure to a morning departure. This flight will be particularly attractive to business travelers: it will allow ‘same-day meetings’ to be held in the New Jersey area, while an earlier departure on the return flight means passengers can be in central London for the start of the working day.

This service is part of nine daily flights between London Heathrow and the New York area by the joint venture partners. The new schedule will include departures every 30 minutes during the early evening peak and then hourly until 10.30 p.m. from New York-JFK to London Heathrow and a spread of seven daily flights from London Heathrow to New York-JFK, including two late afternoon and early evening departures.  It also includes two conveniently timed departures to and from Newark.

Virgin Atlantic has also retimed its Heathrow to Boston service to depart two hours later in the afternoon. This offers more flexibility for the two airlines’ customers with Delta’s Heathrow to Boston service departing in the morning. Virgin Atlantic’s evening departure from Boston will also move two hours later, giving greater schedule choice to travelers.

In September, Delta and Virgin Atlantic welcomed the decision by the U.S. Department of Transportation (DOT) to approve the carriers’ joint venture by granting antitrust immunity on routes between North America and the UK. This ruling confirmed the clear consumer benefits of the partnership, enabling the airlines to deepen their cooperation, offering more flight choices for travelers on both sides of the Atlantic and improving the travel options for business customers in the New York to London market.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Delta’s Airbus A330-223 N855NW (msn 621) arrives in Los Angeles.

Delta Air Lines: AG Slide Show

Virgin Atlantic Airways: AG Slide Show

Bottom Copyright Photo: Eddie Maloney/AirlinersGallery.com. Virgin Atlantic Airways’ Boeing 747-443 G-VROS (msn 30885) lands in Las Vegas.

Delta’s flight 208 diverts to Cold Bay, Alaska, population 60

Delta logo

Delta Air Lines‘ (Atlanta) flight DL 208 with a Boeing 767-300 ER from Tokyo (Narita) to San Francisco yesterday (October 30) was forced to divert and make a safe landing at Cold Bay, Alaska (population 60) in the Aleutian chain of islands . The crew diverted due to a possible problem with one of the engines. Passengers and crew members were taken to a small community center where they waited for another aircraft. The long 10,000 foot runway was built by the military during the Aleutian campaign during World War II. The 167 passengers and 11 crew members finally made it to their final destination of San Francisco after another aircraft came to their rescue.

Read the full story from the Anchorage Daily News: CLICK HERE

Delta Air Lines: AG Slide Show

 

Delta to introduce three Boeing 757s with 16 flat-bed seats on the New York JFK-Los Angeles route on July 1, 2014

Transcontinental 757 BusinessElite

Delta Air Lines (Atlanta) will debut three updated Boeing 757 aircraft on the trans-continental route between New York’s John F. Kennedy International Airport and Los Angeles International Airport beginning on July 1, 2014.  These will be the first 757 aircraft in service to feature Delta’s previously announced upgrades which will include full flat-bed seats in BusinessElite on trans-con flights between New York-JFK and Los Angeles, San Francisco and Seattle. All trans-con flights on these routes will feature flat-bed seats by summer 2015.Transcontinental 757 BusinessElite

 

The aircraft will include 16 full flat-bed seats arranged in a 2-2 configuration in the BusinessElite cabin. Each seat is 20 inches wide – expandable up to 22 inches – with an average bed length of 76 inches. Cabin mood lighting and high definition 16-inch video monitor at each seat will further improve the onboard experience.

The addition of flat-bed seats to the 757 trans-con fleet will complement Delta’s existing Boeing 767 trans-con flights which already feature flat-bed seats for a total of eight daily flights on the route. Customers will enjoy a gourmet three-course menu from renowned chef Michael Chiarello paired with wine from Master Sommelier Andrea Robinson’s specially curated Delta Winemaker Series, Westin Heavenly In-Flight bedding, a Tumi amenity kit featuring skincare products from Malin+Goetz, a noise-reduction headset, Starbucks coffee and sparkling wine round out the BusinessElite experience.

Modifications to Delta’s 757 transcontinental fleet will also include changes to the economy cabin, with the addition of Economy Comfort seats. The 44 extra-legroom seats offer 35 inches of pitch and 50 percent more recline in a 3-by-3 configuration in addition to 108 standard economy seats. All seats in the economy cabin will feature a slim-line design for more personal space, an adjustable headrest, a nine-inch video monitor and standard 110v and USB power ports available at every seat.

Delta has been enhancing the trans-con experience from nose to tail throughout 2013 with the addition of products such as complimentary Starbucks coffee and headsets for all passengers. The entire transcon fleet will feature in-flight Wi-Fi and all upgraded aircraft will offer an entertainment library of more than 1,000 on-demand options. Additionally, the 757 fleet will feature 18 channels of live satellite TV.

On the ground, customers will also enjoy Delta’s new Terminal 4 at New York-JFK International Airport and the $229 million investment in progress to overhaul Terminal 5 at Los Angeles International Airport.

Today’s announcement builds on Delta’s industry leadership in exceeding customer expectations by being the first U.S. airline to introduce in-flight Wi-Fi five years ago, the Sky Deck at Delta Sky Clubs in New York-JFK and Hartsfield-Jackson Atlanta International Airport this year, being the only U.S. domestic carrier to offer personal, on-demand entertainment at every seat on all long-haul international flights by the end of 2013 and offering flat-bed seating with direct-aisle access across its international widebody fleet by mid-2014.

Delta has invested more than $3 billion in the customer experience since 2010 including installation of full flat-bed seats on Delta’s widebody international aircraft, a new Terminal 4 at New York-JFK, Maynard H. Jackson Jr. International Terminal in Atlanta. Delta has also spent more than $100 million to expand, renovate and consolidate terminals C and D at New York-LaGuardia Airport. Additionally, customers have seen Delta’s investment in its more than 50 Delta Sky Clubs throughout the system, power poles at dozens of airports, mobile apps which include features such as baggage tracking, and Wi-Fi on more than 800 aircraft.

Copyright Photos: Delta Air Lines.

Delta Air Lines: AG Slide Show

Video:

Delta posts a higher 3Q net profit of $1.2 billion

Delta Air Lines (Atlanta) today reported financial results for the 2013 third quarter.  Highlights from the quarter include:

  • Delta’s net profit for the September 2013 quarter was $1.2 billion, or $1.41 per diluted share, excluding special items1.  This result is a $444 million improvement year-over-year.
  • Including $157 million in special items, Delta’s GAAP net income was $1.4 billion, or $1.59 per diluted share.
  • The company began returning capital to shareholders, with $100 million in share repurchases and $51 million in dividend payments.
  • September quarter results include $249 million of profit sharing expense in recognition of Delta employees’ contributions to the company’s financial performance.
  • Delta generated $1.2 billion of operating cash flow and $627 million of free cash flow in the September 2013 quarter, and ended the period with adjusted net debt of $9.9 billion.

Revenue Environment

Delta’s operating revenue improved $567 million in the September 2013 quarter compared to the September 2012 quarter.  Traffic increased 2.1 percent on a 2.6 percent increase in capacity.

  • Passenger revenue increased 6.7 percent, or $581 million, compared to the prior year period.  Passenger unit revenue (PRASM) increased 4.0 percent year over year with a 4.5 percent improvement in yield.
  • Cargo revenue decreased 6.1 percent, or $15 million, on declining freight yields.
  • Other revenue was flat year over year as growth in Delta’s third-party staffing business revenues offset a decline in third-party maintenance revenues.

Comparisons of revenue-related statistics are as follows:

Increase (Decrease)3Q13 versus 3Q12
Passenger Revenue 3Q13 ($M) ChangeYOY UnitRevenue Yield Capacity
Domestic $ 4,121 10.7 7.7% 8.9% 2.7%
Atlantic 1,853 9.0% 5.6% 4.3% 3.2%
Pacific 1,044 (5.0)% (4.2)% (3.9)% (0.8)%
Latin America 548 16.0% 1.6% 2.1% 14.1%
Total Mainline 7,566 8.2% 4.9% 5.2% 3.2%
Regional carriers 1,688 0.5% 2.2% 4.9% (1.6)%
Consolidated $ 9,254 6.7% 4.0% 4.5% 2.6%

“The momentum we have built by running an outstanding operation and investing in our product and people enabled a 7 percent revenue growth, with particularly strong performance in Atlanta, New York and London,” said Ed Bastian, Delta’s president.  “The revenue environment appears solid through the end of the year, including strong holiday bookings, and we expect to continue to build on the revenue premium we deliver versus the industry.”

Cost Performance

Total operating expense in the quarter increased $312 million year-over-year driven by higher volume- and revenue-related expenses; the impact of operational, service and employee investments; and $75 million higher profit sharing expense.  These cost increases were partially offset by the savings from Delta’s structural cost initiatives.  Non-operating expense declined as a result of lower interest expense and a $40 million benefit for the portion of Virgin Atlantic’s September quarter profit attributable to Delta’s ownership stake.

Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was 1.1 percent higher in the September 2013 quarter on a year-over-year basis, driven by the impact of wage increases and operational and service investments.  GAAP consolidated CASM increased 1.0 percent.

Fuel expense, excluding mark-to-market adjustments, declined $81 million as a result of lower market fuel prices and better settled hedge performance. Delta’s average fuel price3 was $2.97 per gallon for the September quarter, which includes $0.06 in hedge gains.  On a GAAP-basis, fuel expense for the September quarter increased $74 million year-over-year, driven by lower mark-to-market gains on hedges.

For the September quarter, operations at the Trainer refinery produced a $3 million profit.  While lower crack spreads pressured results at the refinery, they also reduced market jet fuel prices and helped lower Delta’s overall fuel expense.

Cash Flow

Cash from operations during the September 2013 quarter was $1.2 billion, driven by the company’s September quarter profit.  The company generated $627 million of free cash flow.

Capital expenditures during the September 2013 quarter were $635 million, including $450 million in fleet investments and $61 million for the purchase of 12 aircraft off lease. During the quarter, Delta’s debt maturities and capital leases were $430 million.

In the September quarter, the company began returning capital to shareholders.  On Sept. 10, the company paid $51 million to shareholders, which represents the $0.06 per share quarterly dividend declared earlier in the year.  In addition, the company repurchased 4.8 million shares at an average price of $20.82 for a total of $100 million.  The company has $400 million remaining of the $500 million share repurchase plan authorized by Delta’s Board of Directors in May.

Delta ended the quarter with adjusted net debt of $9.9 billion and the company has now achieved over $7 billion in net debt reduction since 2009.  This debt reduction strategy produced a $33 million year-over-year reduction in interest expense in the September quarter.  As of September 30, 2013, Delta had $5.8 billion in unrestricted liquidity, including $4 billion in cash, cash equivalents and short-term investments, and $1.8 billion in undrawn revolving credit facilities.

“The $1.8 billion in free cash flow we have generated so far this year has allowed us to achieve our initial $10 billion debt target and start down the path toward our new $7 billion target,” said Paul Jacobson, Delta’s chief financial officer.  “With consistently solid cash generation, we are moving forward with our plan to return capital to shareholders while continuing to invest in the company and strengthen our balance sheet.”

Company Highlights

Delta has a strong commitment to its employees, customers and the communities it serves.  Recent Delta highlights include:

  • Recognizing the achievements of Delta employees toward meeting the company’s financial and operational goals with $456 million of incentives so far this year, including $387 million in profit sharing expense and $69 million in Shared Rewards payments;
  • Significantly improving its operational performance, resulting in an on-time arrival rate of 83 percent and a 99.8 percent completion factor so far this year.  This completion factor performance includes 40 days of 100 percent mainline completion factor;
  • Receiving final approval from the U.S. Department of Transportation for Delta’s joint venture with Virgin Atlantic Airways with a grant of anti-trust immunity.  The joint venture will allow the airlines to deepen their cooperation, offering more flight choice for travelers on both sides of the Atlantic and improving the travel options for business customers in the New York to London market;
  • Equipping Delta’s crews with enhanced technology by providing all flight attendants new Windows Phone 8 handheld devices that will streamline on-board purchasing and improve the customer experience and also announcing plans to provide Delta’s 11,000 pilots with the Microsoft Surface 2 tablet, allowing pilots more efficient access to real-time flight information; and
  • Continuing to support the communities we serve through Delta’s Force for Global Good, including raising nearly $7 million since 2005 for the Breast Cancer Research Foundation and furthering the foundation’s goal of breast cancer awareness with Delta’s Pink Plane, a 767-400 (above) dedicated to Evelyn Lauder and featuring BCRF’s trademarked pink ribbon logo on the tail of the aircraft.

Special Items

Delta recorded special items totaling a $157 million gain in the September 2013 quarter, including:

  • a $285 million gain for mark-to-market adjustments for fuel hedges settling in future periods; and
  • a $128 million charge for facilities, fleet and other items, primarily associated with Delta’s domestic fleet restructuring.

Delta recorded special items totaling a $279 million gain in the September 2012 quarter, including:

  • a $440 million gain for mark-to-market adjustments for fuel hedges settling in future periods;
  • a $39 million gain associated with the exchange of slots at New York-LaGuardia and Washington-Reagan National;
  • a $12 million loss on extinguishment of debt;
  • a $66 million charge for severance and related costs; and
  • a $122 million charge for facilities, fleet and other, including charges resulting from the closure of Comair.

End Notes

(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)   CASM – Ex: In addition to fuel expense, profit sharing and special items, Delta believes excluding ancillary business costs is helpful to investors because ancillary business costs are not related to the generation of a seat mile. These businesses include aircraft maintenance and staffing services Delta provides to third parties and Delta’s vacation wholesale operations. The amounts excluded were $224 million and $214 million for the September 2013 and 2012 quarters, respectively. Management believes this methodology provides a more consistent and comparable reflection of Delta’s airline operations.

(3)   Average fuel price per gallon: Delta’s September 2013 quarter average fuel price of $2.97 per gallon reflects the consolidated cost per gallon for mainline and regional operations, including contract carrier operations, and includes the impact of fuel hedge contracts with original maturity dates in the September 2013 quarter. On a GAAP basis, fuel price includes $285 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period. The net refinery profit for the quarter was $3 million. See Note A for a reconciliation of average fuel price per gallon to the comparable GAAP metric.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Delta’s special “Force for Global Good” Boeing 767-432 ER N845MH (msn 29719) “Pink Plane” taxies at London (Heathrow).

Delta Air Lines: AG Slide Show

Delta to become the official airline of the NHL Buffalo Sabres

Delta Air Lines (Atlanta) has announced it will serve as the official airline of the National Hockey League’s Buffalo Sabres. Additionally, the airline will provide charter service for the team throughout the 2013-2014 season.

As the official airline of the Buffalo Sabres, Delta will be featured on game day signage at the First Niagara Center, the largest indoor arena in western New York, and sponsor in-game promotions.

Delta now has marketing and/or charter relationships with nine NHL teams. Along with the Buffalo Sabres, Delta is also the official airline of the New York Rangers and Los Angeles Kings.  Additionally, Delta provides charter service for the Anaheim Ducks, Minnesota Wild, Nashville Predators, Philadelphia Flyers, Toronto Maple Leafs and Washington Capitals.

Beginning in March 2012, Delta added new all-jet service from LaGuardia to key upstate markets including Buffalo, Rochester and Syracuse.

Delta is the largest airline at Buffalo Niagara International Airport, offering 23-peak day departures to five nonstop destinations including Atlanta, New York-LaGuardia, New York-JFK, Detroit and Minneapolis/St. Paul. A portion of travel for some itineraries may be on the Delta Connection carriers including Chautauqua Airlines, Endeavor Air, ExpressJet Airlines, GoJet Airlines and Shuttle America.

The Buffalo Sabres are one of 30 member clubs in the National Hockey League (NHL). The Buffalo Sabres are a professional ice hockey organization located in Buffalo, New York. The team plays host to nearly one million fans every year at its home arena, First Niagara Center, in downtown Buffalo and is one of the most visible and most successful sports entities in Western New York and Southern Ontario. Owned by Terry and Kim Pegula, the Sabres are also the parent company of its American Hockey League Affiliate (AHL), the Rochester Americans, and also the Buffalo Bandits of the National Lacrosse League (NLL).

Copyright Photo: Tony Storck/AirlinersGallery.com. Airbus A319-114 N314NB (msn 1191) prepares to land at Baltimore/Washington.

Delta Air Lines: AG Slide Show

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