Delta Air Lines (Atlanta) yesterday (June 17) celebrated new nonstop service from Seattle/Tacoma to Shanghai with an inaugural service ceremony. The flight is the latest addition to Delta’s growing Asian gateway in Seattle/Tacoma, as the service, between Seattle-Tacoma International Airport and Shanghai Pu Dong International Airport complements current nonstop service from Seattle/Tacoma to Beijing, Osaka, Tokyo-Narita and most recently, Tokyo-Haneda.
The flight will operate using a 208-seat Boeing 767-300 ER aircraft with 36 full flat-bed seats in BusinessElite, 29 seats in Economy Comfort and 143 Economy class seats.
Shanghai service is Delta’s second route between Seattle/Tacoma and China, following Beijing service which began in 2010. In addition to its Asian routes, Delta operates nonstop service from Seattle/Tacoma to Paris and Amsterdam. This summer the airline will operate more than 45 daily flights to 18 destinations worldwide from Seattle/Tacoma.
Delta’s recent partnership with Virgin Atlantic also provides the opportunity to offer new service between Seattle/Tacoma and London-Heathrow, pending government approval.
In addition, this summer Delta added a fifth daily flight between Seattle/Tacoma and New York-JFK with upgraded BusinessElite service to match the airline’s trans-continental product from Los Angeles and San Francisco to New York.
In Seattle/Tacoma, Delta has enhanced its facility including a new Delta Sky Club, new power ports, expanded ticket counters and lobby renovations as part of its ongoing $3 billion investment to improve products, services and facilities.
Delta’s international expansion and customer enhancements in Seattle are enhanced by a strategic partnership between Delta and Alaska Airlines that benefits customers of both carriers and creates more competition and travel options for consumers in the Pacific Northwest region. Customers traveling on Delta’s new Shanghai service will have easy connection times to 58 U.S. cities via the two airlines’ domestic networks.
From Shanghai, Delta’s partnership with China Eastern will also provide extensive connection opportunities throughout China for customers traveling from Seattle.
Delta’s schedule between Seattle-Tacoma International Airport and Shanghai Pu Dong International Airport:
|589||SEA at 2:30 p.m.||PVG at 5:55 p.m. (following day)||June 16, 2013|
|588||PVG at 12:20 p.m.||SEA at 8:50 a.m. (same day)||June 18, 2013|
Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 767-332 ER N1605 (msn 30198) prepares to land at the Minneapolis/St Paul hub (click on the photo for the full-size view).
Delta Air Lines (Atlanta) opened The Sky Deck at Delta Sky Club on Concourse F at the new Maynard H. Jackson Jr. International Terminal in Atlanta. The 1,710-square-foot outdoor terrace provides customers a distinctive space with unprecedented runway views at the world’s busiest airport.
The Sky Deck was created in partnership with Architectural Digest and designer Thom Filicia, whose design embodies the comfort and convenience customers have come to expect from the award-winning Delta Sky Club.
Video: Meet Thom Filicia, lead designer of the new outdoor lounge area at Delta’s international terminal in Atlanta.
Great idea Delta! Well done.
Delta Air Lines (Atlanta) is planning to turn over the Los Angeles-San Francisco route to subsidiary Compass Airlines (Delta Connection) (Minneapolis/St. Paul). Starting on September 3, 2013, Compass will operate 14 hourly roundtrips with Embraer 175s per Airline Route.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) N620CZ (msn 17000214) arrives at Los Angeles International Airport.
Delta Air Lines (Atlanta) is planning to de-hub the money-losing Memphis hub this fall. Delta reached a high 0f 240 flights a day in June 2009. MEM is a former hub of Northwest Airlines (Minneapolis/St. Paul).
Memphis will be looking for other airlines to fill the vacant routes.
Read the full report from The Washington Post: CLICK HERE
Copyright Photo: Ken Petersen/AirlinersGallery.com. Delta is concentrating on its largest and most profitable hubs like New York (JFK). Airbus A320-212 N376NW (msn 1812) prepares to depart the runway at JFK.
MEM Airport Map (Memphis International Airport):
Delta Air Lines (Atlanta) this weekend will begin new service between Seattle-Tacoma International Airport and Haneda Airport in Tokyo. Prior to the inaugural flight, Seattle was the largest West Coast city without nonstop service to Haneda, which is the preferred Tokyo airport for many business travelers due to its proximity to the city’s central business district.
Seattle-Haneda service adds to Delta’s growing Asian gateway in Seattle. In addition to Tokyo, Delta will begin new service to Shanghai on June 16, and also operates flights to Beijing and Osaka, Japan. In addition to its Asian gateway, Delta operates nonstop service to Paris and Amsterdam from Seattle. This summer the airline will operate more than 45 daily flights to 18 destinations worldwide from Seattle.
The Haneda flight will operate using Boeing 767-300 ER aircraft at which time every Delta trans-Pacific flight will feature full flat-bed seats in BusinessElite, as well as Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft. The flight also complements Delta’s nonstop service between Seattle/Tacoma and Tokyo-Narita, which upgrades to a Boeing 747-400 on June 1.
Delta’s successful international growth in Seattle is possible, in part, because of its partnership with Alaska Airlines, which operates a domestic hub at Seattle-Tacoma International Airport. The new Tokyo-Haneda flight will benefit from easy connections to more than 55 U.S. cities on Delta and Alaska’s domestic networks.
Delta’s schedule between Seattle-Tacoma International Airport and Haneda Airport:
|Flt 581||SEA at 9:10 p.m.||HND at 11:30 p.m. (following day)||June 1, 2013|
|Flt 580||HND at 12:30 a.m.||SEA at 5:40 p.m. (previous day)||June 3, 2013|
Delta Air Lines this weekend will also begin new nonstop service between Newark’s Liberty International Airport and Paris-Charles de Gaulle Airport. Newark is one of the largest markets from Paris.
The new service will be operated with Boeing 767-300 ER aircraft.
In addition to Newark, this summer Delta will offer flights between Paris and its hubs at New York-JFK, Atlanta, Salt Lake City, Minneapolis-St. Paul, Detroit and Cincinnati, as well as key business markets in Boston, Seattle, Philadelphia and Pittsburgh.
Delta’s schedule between Newark’s Liberty International Airport and Paris-Charles de Gaulle Airport:
|Flt 610||EWR at 6:50 p.m.||CDG at 8:35 a.m.||June 1, 2013|
|Flt 609||CDG at 1:30 p.m.||EWR at 3:50 p.m.||June 2, 2013|
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-332 ER WL N172DZ (msn 29691) arrives at Tokyo (Narita).
Delta Air Lines (Atlanta) is planning to restore the Salt Lake City-Raleigh/Durham route on December 22 according to Airline Route. The restored route will be operated daily with Airbus A320 equipment.
Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A320-211 N311US (msn 125) arrives at Minneapolis/St. Paul hub.
North America Route Map (click on the map for the full-size view):
Delta Air Lines (Atlanta) is planning to add three weekly routes to Central America starting on December 21, 2013 per Airline Route. The new routes will be Los Angeles-Belize City, Minneapolis/St. Paul-San Jose and New York (JFK)-Guatemala City. All will operate on Saturdays.
In addition, Delta will cancel the New York (JFK)-Milwaukee route on September 1 per Airline Route.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-832 WL N3743H (msn 30836) climbs away from the runway at Los Angeles International Airport (please click on the photo for the full-size view).
Delta, the Port Authority of New York and New Jersey, JFK IAT open the new $1.4 billion Terminal 4 at New York’s JFK International Airport, Terminal 3 closes
Delta Air Lines (Atlanta), the Port Authority of New York & New Jersey and JFK International Air Terminal LLC (JFK IAT) today opened the new Terminal 4 at New York’s John F. Kennedy International Airport, part of a $1.4 billion redevelopment program at JFK.
Today’s opening of the first phase of Delta’s Terminal 4 expansion includes:
- Nine new and seven renovated international gates.
- Improved and renovated check-in areas, including a dedicated Sky Priority check-in.
- A centralized security checkpoint.
- New dining and retail offerings.
- A new 24,000-square-foot flagship Delta Sky Club with the first ever Sky Deck at Delta Sky Club outdoor terrace.
- An in-line baggage system to streamline and improve the baggage handling system.
- Improved Customs and Border Protection, baggage claim and re-check facilities.
With the 346,000-square-foot expansion of Concourse B, Terminal 4, which is managed by JFKIAT, now measures 2 million square feet, making it one of the largest terminals in North America. Delta partner Virgin Atlantic Airways also operates out of Terminal 4.
In addition to the expansion opening today, Delta earlier this year announced phase two of the Terminal 4 redevelopment plan that will include an additional 11 gates on Terminal 4′s Concourse B. Construction on phase two will commence immediately. Upon completion in summer 2015, Terminal 4′s Concourse B will house a total of 27 Delta gates and replace Delta’s current Terminal 2 regional jet facility.
The Terminal 4 Delta Sky Club, the largest in the Delta system, offers travelers superior amenities and a unique customer experience. A chef-designed menu of cuisine such as sushi, cheese, charcuterie and dessert will allow customers the option of enjoying a pre-departure meal, enabling them to sleep immediately after takeoff. Master Sommelier Andrea Robinson, who also selects Delta’s Business Elite wine offerings, has developed a premium wine-by-the glass program for the Club with many vintages usually available only by the bottle, including Dom Perignon and Muga Prado Enea, Gran Reserva. Additionally customers needing privacy within the Club can reserve the Ciroc Lounge, which offers a private space with seating and entertainment.
The Sky Deck at Delta Sky Club, debuting at JFK Terminal 4, is a 2,000-square-foot rooftop terrace developed in partnership with Architectural Digest. Renowned designer Thom Filicia was selected by Architectural Digest to create a distinctive space that will offer passengers runway views and the comfort, convenience and relaxation they have come to expect from the award-winning Delta Sky Club.
Delta has ceased operations at Terminal 3 (the old Pan Am Worldport). The site will be redeveloped for operational use.
Delta’s Corporate Strategy
The new international terminal at New York’s JFK airport is the latest in a series of initiatives designed to position Delta for long-term success. Globally, Delta has worked to establish strong partnerships with key airlines across the globe to ensure the integrity of the airline’s global network. The airline has embraced a strategic fleet delivery plan that combines both new and used aircraft. Last year, Delta purchased the Trainer oil refinery to control Delta’s fuel costs.
Earlier this month and as part of a comprehensive five-year financial plan, Delta announced a capital deployment program aimed at creating up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years. Over the next five years, the company plans to reinvest more than $2 billion annually into improving the company’s fleet, facilities, products and technology. In addition to returning cash to shareholders, Delta’s free cash flow will be used to further reduce the company’s debt and opportunistically address longer-term pension funding obligations.
Delta in New York
Delta Air Lines is New York City’s largest and fastest-growing carrier, providing service to more destinations from New York State than any other airline. In addition to the enhancements at JFK, Delta is investing more than $160 million to expand and update Terminals C and D at LaGuardia. The unique Delta Shuttle product offers hourly service to Boston, Chicago (O’Hare) and Washington, D.C. Delta’s three New York metropolitan-area airports carried 23.1 million domestic and international passengers in 2012, up from 20.8 million passengers in 2011. Delta and its nearly 9,000 New York-based employees are part of the fabric of the New York community. Delta is the official airline of the Yankees, Mets, Knicks, Rangers, Madison Square Garden, Food Bank for New York City, New York Wine and Food and AmFar among many others.
Copyright Photo: Delta Check-in Lobby at the New JFK Terminal 4. (PRNewsFoto/Delta Air Lines).
Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aéreos) (Sao Paulo) has announced a key milestone in its partnership with Delta Air Lines (Atlanta): the implementation of Gol code-share on Delta’s flights from Brasilia to Atlanta.
The companies together offer approximately 380 destinations in more than 62 countries.
“The code-share implementation which has now started and will be done in six phases from May to August,” said Paulo Miranda, Alliances and Strategy manager for Delta Air Lines. “Besides the route from Brasilia to Atlanta, soon we will be integrating all flights operated by Delta between Brazil and the United States to Atlanta and flights to the John F. Kennedy International Airport (JFK) and to Detroit and as part of the codeshare agreement”, he emphasizes.
The route from Brasilia to Atlanta is already available to be acquired at Gol channels and the first flight will take place on May 20. The second phase will include flights from Goiania, Belo Horizonte, Curitiba and Porto Alegre all via Brasilia to Atlanta. This action allows baggage to be labeled and dispatched to final destination.
Copyright Photo: Tony Storck. Boeing 737-8EH WL PR-GUI (msn 35844) arrives in Miami.
Delta Air Lines (Atlanta) today announced a balanced capital deployment program aimed at creating up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years.
As part of this program, Delta’s Board of Directors has initiated a quarterly dividend and declared a $0.06 per share dividend for shareholders of record as of Aug. 9, 2013. This dividend will be paid on Sept. 10, 2013. In addition, the Board has authorized a $500 million share repurchase program, to be completed no later than June 30, 2016. Together, these two programs are designed to return more than $1 billion of capital to shareholders over the next three years.
“Delta’s financial performance and balance sheet have strengthened considerably over the past five years and the Board believes the company is now in a position to begin returning cash to our shareholders,” said Daniel Carp, chairman of Delta’s Board of Directors. “The Board’s shareholder return program makes a long-term commitment to our shareholders with the implementation of an ongoing quarterly dividend, while also providing flexibility to return additional cash to shareholders through the share repurchase program.”
Comprehensive Financial Plan
Since 2009, Delta has made significant investments in its people, product and service, while improving its earnings and generating $4 billion of free cash flow. That free cash flow has been dedicated to strengthening the company’s balance sheet. As a result, Delta’s adjusted net debt has fallen from $17 billion at the end of 2009 to just under $12 billion at the end of 2012. The company expects to achieve its $10 billion adjusted net debt target by the end of 2013.
“Delta’s strategy has resulted in a solid financial foundation for our company, tremendous improvements in our fleet, facilities, products and technology, as well as top-notch operational reliability and service to our customers,” said Richard Anderson, Delta’s chief executive officer. “The capital deployment plan unveiled today furthers our commitment to becoming the airline of choice for our employees, customers and shareholders.”
In an investor presentation this morning, Delta outlined a comprehensive, five-year financial plan. The plan focuses on free cash flow generation through a combination of expected earnings improvements and a disciplined approach to capital investment. Over the next five years, the company plans to reinvest $2.0 – $2.5 billion annually, or approximately 50 percent of its operating cash flow, into improving the company’s fleet, facilities, products and technology. The resulting free cash flow will be used to return cash to shareholders, further reduce the company’s debt, and opportunistically address longer-term pension funding needs, driving up to $5 billion of value to Delta’s shareholders.
As part of this plan, Delta expects to achieve and maintain an adjusted net debt level of $7 billion, a $5 billion reduction over 2012. By meeting the $7 billion target, Delta will have reduced its adjusted net debt by $10 billion since 2009, significantly decreasing the company’s balance sheet risk and generating more than 50 percent savings in interest expense.
The company also plans to make up to $1 billion of incremental contributions to the company’s defined benefit pension plans over the next five years. These contributions would be in addition to the $650 – $700 million annual required minimum contribution.
Repurchases under Delta’s program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, or accelerated share repurchase transactions in compliance with applicable regulatory guidelines, including Securities and Exchange Commission Rule 10b-18. Purchases will be made subject to market and economic conditions, applicable legal requirements, and other relevant factors. Delta had approximately 855 million shares of common stock outstanding as of March 31, 2013.
Copyright Photo: Michael B. Ing. Boeing 737-832 WL N3755D (msn 29627) in the SkyTeam motif arrives at Los Angeles.
Pinnacle Airlines (Pinnacle Airlines Corporation) (Minneapolis/St. Paul) emerged from Chapter 11 bankruptcy protection and reorganization on May 1. The airline is now a subsidiary of Delta Air Lines (Atlanta). As previously reported, Pinnacle is moving to the Minneapolis/St. Paul hub. Delta is investing $52 million in the reorganized carrier.
Pinnacle filed for Chapter 11 on April 1, 2012 in the U.S. Bankruptcy Court for the Southern District of New York.
Read the full story from the Atlanta Journal-Constitution: CLICK HERE
Copyright Photo: Bruce Drum. Pinnacle will operate a large Bombardier CRJ900 fleet for Delta (eventually 92 aircraft). The smaller 50-seat CRJ200 fleet of 140 aircraft is being gradually phased out. Bombardier CRJ900 (CL-600-2D24) N147PQ (msn 15147) arrives at the Atlanta hub.
Delta Air Lines (Atlanta) today reported financial results for the March 2013 quarter. Highlights from the quarter include:
- Delta’s net profit for the March 2013 quarter was $85 million, or $0.10 per diluted share, excluding special items1. This result is a $124 million improvement year-over-year.
- Including $78 million in special items, Delta’s GAAP net income was $7 million, or $0.01 per diluted share.
- Results include $20 million of profit sharing expense in recognition of Delta employees’ contributions to the company’s financial performance.
- Delta generated $1.1 billion of operating cash flow and $457 million of free cash flow in the March 2013 quarter, and ended the period with adjusted net debt of just under $11.0 billion.
“Our results represent Delta’s strongest March quarter financial and operational performance in over a decade and I want to thank Delta people worldwide for all the hard work that went into producing these results for our company. This performance is proof that we are on the right path to making Delta the airline of choice for our shareholders, employees, and customers,” said Richard Anderson, Delta’s chief executive officer. “With a solid financial foundation and building momentum from initiatives like our LaGuardia expansion, Virgin Atlantic investment and new Terminal 4 at New York-JFK, we are well positioned to generate significant improvements in Delta’s profitability going forward.”
Delta’s operating revenue grew $87 million, or 1.0 percent, in the March 2013 quarter compared to the March 2012 quarter. Load factor increased to 81.2 percent, with traffic down 0.6 percent on a 2.5 percent decrease in capacity.
- Passenger revenue increased 1.4 percent, or $107 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 4.1 percent, driven by a 2.1 percent improvement in yield.
- Cargo revenue decreased 2.4 percent, or $6 million, on declining freight yields.
- Other revenue decreased 1.4 percent, or $14 million, as a result of lower third-party maintenance revenue.
Comparisons of revenue-related statistics are as follows:
|1Q13 versus 1Q12|
|Passenger Revenue||1Q13 ($M)||YOY||Revenue||Yield||Capacity|
|Domestic||3,402||6.1 %||4.9 %||4.5 %||1.2%|
|Atlantic||1,052||(3.4) %||8.1 %||3.9 %||(10.6) %|
|Pacific||871||3.1 %||3.7 %||(0.4) %||(0.6) %|
|Latin America||551||5.5 %||3.3 %||(2.5) %||2.1 %|
|Total mainline||5,876||3.8 %||5.5 %||3.0 %||(1.6) %|
|Regional||1,457||(6.8) %||1.8 %||3.5 %||(8.5) %|
|Consolidated||7,333||1.4 %||4.1 %||2.1 %||(2.5) %|
“Our March quarter unit revenues grew 4 percent, showing that the investments we have made in operations, products and service, combined with our capacity discipline, have built a solid revenue-producing foundation,” said Ed Bastian, Delta’s president. “We are taking actions to mitigate the decline in close-in demand we saw in the last part of March, and we expect the impact of the sequester, combined with a softening of leisure demand, to result in a 2 – 3 percent decline in April’s unit revenues. However, a key benefit from a consolidated industry is that we now see a much stronger correlation between revenue and fuel; so while we are seeing some revenue softness, we are also benefitting from lower fuel costs, allowing us to continue our path of margin expansion even in a sluggish economic environment.”
Cash from operations during the March 2013 quarter was $1.1 billion, driven by the seasonal increase in advanced ticket sales and March quarter profitability. The company generated $457 million of free cash flow.
Capital expenditures during the March 2013 quarter were $650 million, including $500 million in fleet investments and $47 million for two sets of slots at London’s Heathrow airport. Capital expenditures included 21 aircraft purchased off lease as part of Delta’s debt reduction efforts. During the quarter, Delta’s debt maturities and capital leases were $382 million.
Delta ended the quarter with adjusted net debt of just under $11.0 billion and the company has now achieved a $6 billion net debt reduction since 2009. This debt reduction strategy produced a $50 million year-over-year reduction in interest expense in the March quarter. As of Mar. 31, 2013, Delta had $5.4 billion in unrestricted liquidity, including $3.6 billion in cash and short-term investments and $1.8 billion in undrawn revolving credit facilities.
Fuel expense for the March quarter declined $78 million year-over-year, excluding mark to market adjustments, as a result of lower fuel prices and consumption. Delta’s average fuel price2 was $3.24 per gallon for the March quarter, which includes 6 cents per gallon in settled hedge gains. For the March quarter, operations at the Trainer refinery produced a $22 million loss, driven by supply disruptions related to Superstorm Sandy and a short-term outage in a gasoline production unit, which slowed production during the quarter.
Excluding fuel, total operating expense in the quarter increased year-over-year by $198 million as the impact of operational, service and employee investments was partially offset by savings from Delta’s structural cost initiatives.
Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex3), was 5.0 percent higher in the March 2013 quarter on a year-over-year basis, driven by the impact of capacity reductions, wage increases, and operational and service investments. GAAP consolidated CASM increased 5.8 percent.
“Our March quarter non-fuel unit cost growth was lower than expected, as the benefits of our structural cost initiatives limited the cost growth associated with investments in our people, operations, and service,” said Paul Jacobson, Delta’s chief financial officer. “We should see our cost pressures lessen significantly in the second half of the year, as the benefits of our structural cost initiatives accelerate and we lap the impact of prior year investments.”
Delta has a strong commitment to its employees, customers and the communities it serves. Key accomplishments in the March 2013 quarter include:
- Receiving recognition from leading organizations and publications, including being named FORTUNE’s Most Admired Airline, receiving Aviation Week’s Laureate Award for Innovation, and receiving the International Service Excellence Award for reservation sales;
- Recognizing the achievements of Delta employees toward meeting the company’s financial and operational goals with $43 million of incentives so far this year, including $20 million in employee profit sharing and $23 million in Shared Rewards;
- Significantly improving its operational performance, resulting in an on-time arrival rate of 86.2 percent and 12 percent fewer customer complaints compared to 2012;
- Continuing the company’s ongoing investment in high-quality facilities through the renovation of LaGuardia Terminals C and D with the addition of a connecting bridge and improvements to the Delta Sky Clubs, seating areas and food options, and the development of the Sky Deck, new outdoor seating areas at Delta Sky Clubs in Atlanta and New York-JFK, designed in conjunction with Architectural Digest;
- Enhancing the SkyMiles Medallion program by introducing Crossover Rewards, the industry-leading joint loyalty partnership with Starwood. The partnership allows members to share program benefits and earn more miles and Starpoints when traveling with either company;
- Releasing a new Fly Delta app for iPad and iPhone as part of a broader rollout of a significantly improved online and digital customer experience. The new Fly Delta app has added functionality and includes the unique “Glass Bottomed Jet” feature; and
- Extending Delta’s involvement in the community, as more than 50 Delta employees partnered with SkyMiles Medallion members and Aeromexico employees to build six homes in Puebla, Mexico. This effort was Delta’s ninth international build with Habitat for Humanity.
Delta recorded special items totaling a $78 million charge in the March 2013 quarter, including:
- $24 million in mark-to-market gains for fuel hedges settling in future periods; and
- a $102 million charge for facilities, fleet and other items.
Delta recorded special items totaling a $163 million gain in the March 2012 quarter, including:
- $151 million in mark-to-market gains 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; and
- a $27 million charge for facilities, fleet and other items.
Copyright Photo: Brian McDonough. Boeing 757-232 WL N694DL (msn 29726) “The Spirit of Freedom” prepares to land at Washington (Reagan National).
Delta Air Lines (Atlanta) is upgrading its Airbus A330 fleet – the final fleet type to receive the modification – to include full flat-bed seats in the BusinessElite cabin and new “slim line” seats, which offer more personal space throughout the Economy cabin. The first modified A330 operated its first flight yesterday from Atlanta to Detroit and will operate from Detroit to Amsterdam today. There are 32 A330s in the Delta fleet.
To date, more than 60 percent of Delta’s widebody international fleet has been upgraded with direct-aisle access full flat-bed seats. Already, Delta’s fleet of 16 Boeing 747-400 aircraft, 18 Boeing 777 aircraft and 21 Boeing 767-400ER have been retrofitted with full flat-bed seats. Thirty-five Boeing 767-300ER aircraft with new full flat-bed BusinessElite seats are currently flying, with the entire fleet of 58 aircraft scheduled for completion by the end of 2013. The full international widebody fleet of more than 140 aircraft will be complete by mid-2014.
Copyright Photo: Michael B. Ing. Airbus A330-223 N858NW (msn 718) completes its final approach into Los Angeles International Airport.
Delta Air Lines, Los Angeles World Airports invest $229 million to overhaul Terminal 5 at Los Angeles International Airport
Delta Air Lines (Atlanta) has partnered with the City of Los Angeles and Los Angeles World Airports to significantly overhaul Terminal 5 at Los Angeles International Airport (mid center above on the south side of Terminal City). The $229-million construction project has already begun and is scheduled to take place in several phases with full completion in 2015.
Highlights of the project include doubling the size of the ticketing lobby and federal security screening checkpoints; an exclusive Sky Priority experience with a separate lobby and checkpoint; a private VIP check-in lobby that will provide the most elite experience available at LAX; a renovation of the Delta Sky Club to include full-service bar, new carpet, tile, and additional recharge stations for personal electronic devices; new baggage carousels; upgraded facilities to improve international baggage recheck; and new finishes providing a cleaner, brighter customer experience. In addition, 15 new restaurants and shops featuring celebrity chefs and retail brand names that reflect the cuisine, culture and lifestyle of Los Angeles will complete their phased openings this year.
The project is funded using approximately $12 million of Delta Air Line’s invested capital for proprietary improvements (airline lounge, check-in lobbies, finishes, other architectural elements, etc.); approximately $25 million in reimbursements from the Transportation Security Administration for security-screening measures; and the remainder in LAWA commercial paper/long-term debt, LAWA cash on hand, and Passenger Facility Charges collections. No funds from the City of Los Angeles’ General Fund are being used. The project will support more than 200 construction-related jobs in Southern California.
Last month, Delta announced plans to increase service at LAX with daily year-round and seasonal service to 14 destinations, including eight new markets: Anchorage, Alaska; Boston; Bozeman, Montana; Nashville, Tennessee; Seattle; San Jose, California; San Jose, Costa Rica; and Spokane, Washington. The additional service adds 12 percent more daily seats in the market. This summer, Delta will operate 118 peak-day departures to 40 nonstop destinations, including Sydney and Tokyo, from Los Angeles. Delta operates transcontinental flights between Los Angeles and New York-JFK seven times daily. All Los Angeles domestic service offers customers the option of first class, Economy Comfort or economy seating, along with in-flight Wi-Fi.
Video: The current Terminal 5 at LAX:
Delta Air Lines (Atlanta) will outfit its fleet of 182 MD-88 and MD-90 aircraft as well as several flight simulators with standardized, state-of-the-art glass cockpits and GPS navigation that will improve efficiency, reduce environmental impact and position the airline to take advantage of procedural improvements outlined in the Federal Aviation Administration’s (FAA) Next Generation Air Transportation System.
The enhanced avionics suite, developed by Innovative Solutions & Support, Inc. (ISSC), will allow the aircraft to fly shorter flight paths and take advantage of continuous-descent, Required Navigation Performance (RNAV) approaches to reduce fuel consumption, carbon emissions and noise levels — a primary objective of NextGen. The addition of GPS capabilities as well as the incorporation of Data Link and ADS-B will allow pilots to fly safer as the three systems aid flight crews in identifying nearby air traffic, weather and terrain on flat panel displays in the cockpit.
Due to the lighter weight of the new equipment, Delta will see an immediate improvement in fuel economy while long-lasting benefits from the new flight decks include reductions in CO2 emissions by 80 million pounds annually and a 50 percent decrease in the aircraft noise footprint once NextGen procedures are fully implemented. The standardized flight decks will improve situational awareness for flight crews and are expected to increase operational flexibility, simplify maintenance and improve dispatch and on-time reliability.
“In addition to deploying technology enhancements, Delta continues to work closely with the FAA as it advances NextGen procedures — many of which are being developed at key hub airports,” said Steve Dickson, Delta’s senior vice president-Flight Operations. “Delta continues to invest in NextGen and looks forward to the FAA’s continued progress in systemwide implementation of these improvements, especially at these key hubs, which promise to deliver real savings as well as safety and efficiency enhancements.
Installation of the enhanced flight deck technology across the MD-88 and MD-90 fleet is slated to begin in early 2014 and will be completed by IS&S technicians at Delta TechOps facilities. The process is expected to take approximately two years.
Delta continues to enhance technology across its fleet — including updates to nearly all Airbus and Boeing aircraft — aimed at taking advantage of the performance and efficiency improvements that will be realized once the FAA fully implements the NextGen system.
Significant reductions in environmental impact, both in noise and emissions, as a result of these improvements, are part of Delta’s continued social responsibility efforts. The airline has improved overall fuel-efficiency by an average of 1.7 percent from 2009 to 2012, exceeding goals set by the International Air Transportation Association. Since 2005, Delta has reduced its annual aircraft greenhouse gas emissions by 8.4 million metric tons, an 18.5 percent reduction.
Copyright Photo: Brian McDonough. McDonnell Douglas MD-90-30 N903DA (msn 53383) arrives at Baltimore/Washington International Thurgood Marshall Airport.
Delta Air Lines (Atlanta) begins the 2013 baseball season enjoying relationships with nearly half of the league’s 30 teams.
Delta serves as the official airline of the Atlanta Braves, Cincinnati Reds, Detroit Tigers, Minnesota Twins, New York Yankees, New York Mets, Pittsburgh Pirates and St. Louis Cardinals and is a proud partner of the San Diego Padres. Delta also operates team charters for the Braves, Reds, Twins, Yankees, Mets, Pirates, Padres and Cardinals as well as the Baltimore Orioles, Boston Red Sox, Los Angeles Angels of Anaheim, Philadelphia Phillies and Tampa Bay Rays.
Delta has been partnering with Major League Baseball teams for more than 40 years, beginning with its longstanding partnership with the Atlanta Braves.
Copyright Photo: Bruce Drum. Delta has had a long history of flying sports charters. The division was expanded with the Northwest merger and has dedicated aircraft. Other aircraft are taken out of normal rotation when needed especially for major events and games. Airbus A319-114 N330NB (msn 1549) stops at Charlotte while on a sports charter.
Delta Air Lines (Atlanta) will now launch daily Boeing 757-200 service early on the new Los Angeles-San Jose, Costa Rica route on July 1 per Airline Route.
Copyright Photo: Michael B. Ing. Boeing 757-212 N750AT (msn 23126) climbs away from Los Angeles International Airport. The airframe was originally delivered to Singapore Airlines as 9V-SGL on November 26, 1984. Delta acquired the aircraft from ATA Airlines as N750AT on September 19, 1996.
Delta Air Lines (Atlanta) will increase service at Los Angeles International Airport with daily year-round and seasonal service to 14 destinations, including eight new markets. The additional service adds 12 percent more daily seats in the market.
The new and expanded Los Angeles service between the following cities (start dates) includes:
- New daily service to Nashville and three daily flights to Seattle/Tacoma (April 8)
- New intra-West service to two markets: San Jose, California with four daily flights (July 1) and Spokane, Washington with one daily flight (June 10)
- New summer seasonal service to three markets: Boston will operate daily (June 10), Anchorage, Alaska will operate three times weekly Friday-Sunday (June 21) and Bozeman, Montana will operate Saturday only service (June 22)
- New Central America service to San Jose, Costa Rica (July 1)
- Expanding current intra-West service with one additional flight to Oakland, California, Phoenix and Sacramento, California for a total of five (June 10)
- Service to Puerto Vallarta, Mexico will increase frequency from Saturday only to daily (July 1) and one additional Saturday flight will be added to Guadalajara, Mexico (July 6)
- Expanding service to New Orleans with one additional flight for a total of three daily (September 4)
- Full flat-bed seating in BusinessElite on four of the seven flights to New York-JFK this summer
- Upgrading Las Vegas aircraft to six daily mainline flights in June
By summer, Delta will operate 118 peak-day departures to 40 nonstop destinations, including Sydney and Tokyo, from Los Angeles. All Los Angeles service offers customers the option of first class, Economy Comfort or economy seating, along with in-flight Wi-Fi.
Customers flying from Los Angeles also benefit from Delta’s agreements with domestic partner Alaska Airlines and key international carriers, including WestJet and Virgin Australia, as well as Sky Team partners Air France/KLM, Alitalia, Korean Air, AeroMexico, China Airlines China Eastern, China Southern and Aeroflot.
In 2012, Alaska Airlines relocated to Los Angeles International Airport’s Terminal 6 as part of a Delta co-location strategic partnership. Customers of both airlines benefit from shorter connecting times between Delta’s operation at Terminal 5 and 6 while creating more international, transcontinental and West Coast travel options.
Additionally, Delta expects to begin codesharing on flights between Los Angeles and London-Heathrow airport with partner Virgin Atlantic Airways later this year.
Los Angeles is currently one of several Delta facilities undergoing significant renovations to check-in and arrival areas as well as jet bridges to improve the airline’s operational performance and overall customer experience.
Copyright Photo: James Helbock. Boeing 757-232 WL N694DL (msn 29726) “The Spirit of Freedom” completes its final approach at Los Angeles.
Delta Air Lines (Atlanta) has filed an application with the U.S. Department of Transportation (DOT) to add additional nonstop flights between Sao Paulo and the key business markets of New York (JFK) and Atlanta, increasing competition on air service between the U.S. and Brazil.
If approved, Delta will begin second daily Sao Paulo flights to both Atlanta and New York in 2013.
Delta currently operates 35 nonstop weekly flights between Brazil and the U.S. including Atlanta, Detroit and New York-JFK to Sao Paulo, as well as from Atlanta to Rio de Janeiro and Brasilia.
Delta’s proposed addition of a second daily flight between Sao Paulo and John F. Kennedy International Airport in New York’s marks another important step in Delta’s plan to invest and grow at New York. The new flight will operate out of the expanded and enhanced state-of the-art International Terminal 4, which opens its doors in 90 days amid a $1.4 billion million terminal expansion project.
In its filing, Delta also requested approval to continue its daily nonstop service between its hub in Detroit and Sao Paulo. Delta’s right to operate that flight will transfer to US Airways in 2015 as part of a previously approved slot transaction that allowed Delta to expand at LaGuardia Airport in New York.
This is the first time in more than a decade that the Department of Transportation has the opportunity to allocate new Sao Paulo frequencies. These opportunities arise as direct result of the U.S. government’s success in negotiating a new air service agreement with Brazil, which is expected to result in a full Open Skies agreement by 2015.
The new frequencies would be served with Delta’s 767-300 ER equipped with state-of-the-art flatbed seats, video on demand entertainment system, and award-winning food and wine service, Ferri said. The 767 has a capacity of 210 passengers, 35 Business Elite, 32 Economy Comfort and 143 economy class seats.
Copyright Photo: Michael B. Ing. Boeing 767-332 ER N172DZ (msn 29691) climbs briskly away from the runway at Tokyo (Narita)
Delta Air Lines (Atlanta) will offer new and expanded summer service from Montana to Atlanta and Los Angeles, effective on June 22, 2013.
The new service changes include:
- Atlanta to Bozeman expanded from twice per week to three weekly
- Atlanta to Kalispell expanded from once per week to twice weekly
- New Saturday service from Atlanta to Missoula
- New Saturday service from Los Angeles to Bozeman
Delta’s new service between Atlanta and Bozeman, Kalispell and Missoula, will be operated with Boeing 737-800 aircraft. The fourth flight, between Bozeman and Los Angeles, will be operated by Delta Connection carrier SkyWest Airlines (St. George) using a 76-seat two-class Bombardier CRJ900.
Returning summer seasonal service between Atlanta and Bozeman will operate Wednesdays and Saturdays on a Boeing 757-200, while Atlanta-Kalispell service will operate Saturdays on Boeing 737-800 aircraft.
Delta has served Montana since 1927 and offers more flights statewide than any other airline. During the peak summer travel season, Delta serves eight Montana communities with more than 1,300 monthly departures and offers 54 percent more seats than its largest competitor. In 2012, the airline carried 1.3 million passengers to and from Montana.
Montana markets Delta provides service include: Butte, Billings, Bozeman, Great Falls, Helena, Kalispell, Missoula and West Yellowstone.
Delta’s new and returning summer seasonal flights in Montana are scheduled as follows:
Bozeman/Atlanta Operated on a Boeing 737-800
|Atlanta – 2:55 p.m.||5:05 p.m.||June 22-Aug. 24||Saturday Only|
|Bozeman – 8:15 a.m.||2:00 p.m.||June 23-Aug. 25||Sunday Only|
Bozeman/Atlanta Operated on a Boeing 757-200
|Atlanta – 11:00 a.m.||1:10 p.m.||June 22-Aug. 31||Wednesday/Saturday|
|Bozeman – 2:00 p.m.||7:47 p.m.||June 22-Aug. 31||Wednesday/Saturday|
Bozeman/Los Angeles Operated by Delta Connection carrier Skywest on a CRJ900
|Los Angeles – 9:00 a.m.||12:15 p.m.||June 22-Aug. 24||Saturday Only|
|Bozeman – 12:50 p.m.||2:05 p.m.||June 22-Aug. 24||Saturday Only|
Kalispell/Atlanta Operated on a Boeing 737-800
|Atlanta – 3:00 p.m.||5:38 p.m.||June 22-Aug. 24||Saturday Only|
|Kalispell – 8:00 a.m.||2:07 p.m.||June 23-Aug. 25||Sunday Only|
Kalispell/Atlanta Operated on a Boeing 737-800
|Atlanta – 9:50 a.m.||12:28 p.m.||June 22-Aug. 31||Saturday Only|
|Kalispell – 1:10 p.m.||7:17 p.m.||June 22-Aug. 31||Saturday Only|
Missoula/Atlanta Operated on a Boeing 737-800
|Atlanta – 10:25 a.m.||1:03 p.m.||June 22-Aug. 31||Saturday Only|
|Missoula – 1:45 p.m.||7:51 p.m.||June 22-Aug. 31||Saturday Only|
Copyright Photo: Michael B. Ing. Boeing 757-232 N610FL (msn 22817), formerly the pink Breast Cancer Awareness 757 aircraft, climbs away from Ted Stevens Anchorage International Airport (ANC).
Delta Air Lines (Atlanta) will add two daily flights between Dickinson’s Theodore Roosevelt Regional Airport in Dickinson, North Dakota and Minneapolis-St. Paul International Airport, effective on June 10, 2013.
The new service will be operated by Delta Connection carrier SkyWest Airlines (St. George) using 50-seat Bombardier CRJ200 regional jets. Last year, Delta also added service to Williston, N.D., where the Bakken oil reserves were first discovered.
The new market is growing due to the local expanding gas and oil industry.
Delta’s two daily flights between Dickinson and Minneapolis are scheduled as follows:
Dickinson to Minneapolis-St. Paul
|7:45 a.m.||10:19 a.m.||June 10, 2013|
|11:50 a.m.||2:23 p.m.||June 10, 2013|
Minneapolis-St. Paul to Dickinson
|10:15 a.m.||11:02 a.m.||June 10, 2013|
|5:30 p.m.||6:16 p.m.||June 10, 2013|
Copyright Photo: Michael B. Ing. SkyWest’s CRJ200 (CL-600-2B19) N447SW (msn 7677) is pictured in action at Long Beach.
Delta Air Lines (Atlanta) will reintroduce three routes for the summer season from Los Angeles in June per Airline Route. Anchorage will be served twice-weekly with Boeing 757-200s effective June 21. Boston will be flown daily also with 757-200s starting on June 10. Finally Spokane service will be added with daily service starting on June 10 and will be served by Bombardier CRJ900s operated by SkyWest Airlines (St. George).
Copyright Photo: Michael B. Ing. Ex-TWA/American Boeing 757-231 N722TW (msn 29385) climbs away from Los Angeles International Airport dressed in the special SkyTeam livery.
Delta Air Lines (Atlanta), the Port Authority of New York and New Jersey and JFK International Air Terminal LLC (JFKIAT) will continue expansion at John F. Kennedy International Airport with a $175 million project that will add 11 gates and 75,000 square feet to Terminal 4′s Concourse B. Delta has committed an additional $5 million for information technology enhancements. The new project is in addition to the previously announced $1.2 billion redevelopment at Terminal 4 set to open in May.
With the new expansion, Terminal 4′s Concourse B will house 27 Delta gates and completely replace Delta’s current Terminal 2 regional jet operation. Each of the new gates will feature a dedicated boarding counter, seating area and jet bridge, eliminating the need for ramp level boarding, which currently exists at Terminal 2. All gates will be designed to accommodate two-class regional jets as well as provide flexibility for gating additional mainline aircraft.
The new expansion builds on Delta’s previously announced $1.2 billion Terminal 4 redevelopment opening in May. That expansion, which is 90 percent complete, features nine new and seven renovated international gates; improved and renovated check-in areas, including a dedicated Sky Priority check-in area; a centralized security checkpoint; new dining and retail offerings; a new 24,000 square-foot flagship Delta Sky Club with the first ever Sky Deck outdoor terrace; dual taxiways for less congestion and shorter taxi times; and improved Customs and Border Protection and baggage claim facilities.
The expanded Terminal 4 – which has been successfully managed by JFKIAT for more than a decade – will replace the outdated Terminal 3 facilities, improving the customer experience for the 11 million passengers Delta serves at JFK annually. Demolition of Terminal 3 is expected to be completed by summer 2015. The Terminal 3 site will then be used for aircraft parking.
Once the new Terminal 4 opens in May, Delta will more than double the current shuttle bus operation for passengers connecting between Terminals 2 and 4. Ten buses will carry connecting passengers between the existing bus holdrooms in Terminals 2 and 4. By September 2013, Delta will open a new 8,000 square-foot bus holdroom facility adjacent to gate B20.
Video: Delta Air Lines.
Delta Air Lines (Atlanta) has received final approval from the U.S. Department of Transportation (DOT) to operate new nonstop service between Seattle/Tacoma and Tokyo International Airport, also known as Haneda Airport. The new flights will begin on June 1, 2013.
The Haneda flight adds to Delta’s growing Asian gateway in Seattle/Tacoma. In addition to Tokyo-Haneda, Delta will begin new service to Shanghai on June 17, and also operates flights to Beijing, Tokyo-Narita and Osaka, Japan.
Seattle is the largest West Coast city without nonstop service to Haneda, which is the preferred Tokyo airport for many business travelers due to its proximity to the city’s central business district.
The new Haneda flight will complement Delta’s nonstop flight between Seattle/Tacoma and Tokyo-Narita, which will be expanded and upgraded to Boeing 747-400 service on June 1. Delta’s Boeing 747-400 fleet was recently retrofitted with new interiors featuring full flat-bed seats in BusinessElite, Delta’s popular Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft.
Once the Boeing 747-400 is deployed on the Seattle/Tacoma-Narita route, all of Delta’s trans-Pacific flights will feature full flat-bed seats in BusinessElite as well as Economy Comfort and individual in-flight entertainment throughout the aircraft.
In addition to its Asian gateway, Delta operates nonstop service to Paris and Amsterdam from Seattle/Tacoma. By next summer the airline will operate more than 40 daily flights to 15 destinations worldwide from Seattle.
Delta’s international growth in Seattle/Tacoma is possible because of its partnership with Alaska Airlines (Seattle/Tacoma), which operates a domestic hub at Seattle-Tacoma International Airport. Customers of both carriers enjoy access to an expanded network under a major codesharing agreement, as well as reciprocal frequent flier benefits and airport lounge access. The new Tokyo-Haneda flight will benefit from easy connections to 55 U.S. cities on Delta and Alaska’s domestic networks.
Copyright Photo: Michael B. Ing. Boeing 747-451 N676NW (msn 33002) climbs away from Tokyo (Narita).
Pinnacle Airlines Corporation (Memphis) has announced its headquarters will relocate to Minnesota. The decision came after an exhaustive evaluation of the most cost-effective option as the Company emerges from Chapter 11. The present headquarters location in Memphis, Tennessee was also evaluated.
Pinnacle’s operation will be located in vacant space leased by Delta Air Lines on Minneapolis-St. Paul International Airport property.
Pinnacle presently occupies 170,000 square feet at One Commerce Square in downtown Memphis, which houses approximately 500 employees. Tentative plans call for the move to Minnesota to be completed by May 2013.
PAC is the holding company of Pinnacle Airlines (Memphis) and previously of Colgan Air (2nd) which was shut down in September 2012. Pinnacle Airlines now flies exclusively as a Delta Connection carrier. Since Memphis is a smaller hub for Delta, Pinnacle will have more work at Delta’s MSP larger hub.
The company was established in February 1985 as Express Airlines I and started a code sharing and feeder agreement with Republic Airlines in May 1985. Republic was the dominant carrier in Memphis.
Delta Air Lines (Atlanta) is in discussions with both Airbus and Boeing about an order for 24 to 30 narrow body airliners according to this report by Bloomberg.
Delta is in a select group of airlines that operates both the Airbus A319/A320 family (inherited from Northwest) and the Boeing 737-700/800 Next-Generation family. The order will be for current models which are now being reportedly discounted by the manufacturers pending the arrival of the next round of new more fuel-efficient engines.
Which manufacturer will win out?
Read the full story from Reuters: CLICK HERE
Top Copyright Photo: Michael B. Ing. Ex-Northwest Airbus A320-212 N365NW (msn 964) climbs away from Los Angeles International Airport.
Bottom Copyright Photo: Brian McDonough. Boeing 737-732 N310DE (msn 29665) completes its final approach into Dulles International Airport near Washington.
Delta Air Lines (Atlanta) today reported financial results for the December 2012 quarter. Key points include:
- Delta’s net income for the December 2012 quarter was $238 million, or $0.28 per diluted share, excluding special items1. Results include the $100 million negative impact of Superstorm Sandy on airline and refinery operations.
- Delta’s net income for 2012 was $1.6 billion, excluding special items, a $362 million increase over 2011.
- Delta’s GAAP net income was $7 million, or $0.01 per diluted share, for the December 2012 quarter and $1.0 billion for 2012.
- Delta’s unit revenues were up 4.3 percent for the quarter and the company’s unit revenue gains have outperformed the industry for 21 consecutive months.
- 2012 results include $372 million in profit sharing expense, including $63 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s financial goals.
- Delta’s adjusted net debt at the end of 2012 was $11.7 billion, a $5.3 billion reduction from 2009.
“Our December quarter profit caps off a successful 2012 for Delta with strong financial results, industry-leading operational performance, and across the board improvements in customer satisfaction. I want to thank our employees and I look forward to recognizing them next month with $372 million of profit sharing for 2012,” said Richard Anderson, Delta’s chief executive officer. “We enter 2013 as a stronger airline, with initiatives in place to build on our 2012 success. In the year ahead, we will advance our position around the world and continue to build a better airline for our shareholders, customers and employees.”
Delta’s operating revenue grew $203 million, or 2 percent, in the December 2012 quarter compared to the December 2011 quarter, despite a $75 million revenue decline associated with Superstorm Sandy. Load factor increased to 83.3 percent, with traffic up 0.7 percent on a 1.3 percent decrease in capacity.
- Passenger revenue increased 3.0 percent, or $215 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 4.3 percent, driven by a 2.3 percent improvement in yield.
- Cargo revenue decreased 5.9 percent, or $15 million, on declining freight yields.
- Other revenue increased 0.3 percent, or $3 million, as higher codeshare revenue was offset by lower third-party maintenance revenue.
Comparisons of revenue-related statistics are as follows:
|4Q12 versus 4Q11|
|Passenger Revenue||4Q12 ($M)||YOY||Revenue||Yield||Capacity|
|Domestic||3,439||6.4 %||5.3 %||5.2 %||1.0 %|
|Atlantic||1,222||0.6 %||7.9 %||4.1 %||(6.8) %|
|Pacific||820||2.0 %||- %||(6.0) %||2.0 %|
|Latin America||433||6.8 %||(1.4) %||(6.2) %||8.3 %|
|Total mainline||5,914||4.5 %||4.7 %||2.5 %||(0.1) %|
|Regional||1,524||(2.7) %||6.3 %||6.0 %||(8.5) %|
|Consolidated||7,438||3.0 %||4.3 %||2.3 %||(1.3) %|
“Our investments in Delta’s network, products and operations, combined with our capacity discipline, have produced unit revenue growth that has outpaced the industry for 21 consecutive months,” said Ed Bastian, Delta’s president. ”We have built strong revenue momentum going into the year with our customer-focused initiatives, corporate share gains, and capacity actions. As a result, we project a 4 – 6 percent year over year increase in March quarter unit revenues.”
Cash from operations during the December 2012 quarter was $585 million, as the company’s profitability and working capital initiatives were partially offset by the normal seasonal decline in advance ticket sales. Capital expenditures during the December 2012 quarter were $600 million, including $310 million in fleet investments and $70 million of capital investments for the Trainer Refinery.
During the quarter, Delta’s net debt and capital lease payments were $17 million. In October, Delta refinanced $1.7 billion in debt and undrawn revolving credit facilities secured by the company’s Pacific routes and slots, which resulted in a lower interest rate. Delta expects the transaction will generate more than $30 million in annual interest expense savings.
As of Dec. 31, 2012, Delta had $5.2 billion in unrestricted liquidity, including $3.4 billion in cash and short-term investments and $1.8 billion in undrawn revolving credit facilities. The company ended 2012 with adjusted net debt of $11.7 billion and Delta has now achieved more than $5 billion of its $7 billion debt reduction target since 2009.
“Delta’s results this quarter are remarkable in light of the $100 million negative impact Superstorm Sandy had on our airline and refinery operations,” said Paul Jacobson, Delta’s chief financial officer. “We have generated $4 billion in free cash flow over the past three years, and we expect to build on that momentum in 2013 with the additional benefits of further debt reduction and $1 billion of structural cost initiatives.”
Total operating expense increased by $577 million as a result of higher fuel costs and wages. Interest expense declined $30 million as a result of Delta’s debt reduction strategy.
Consolidated unit cost (CASM3), excluding fuel expense, profit sharing and special items, was 5.7 percent higher in the December 2012 quarter on a year-over-year basis, driven by the impact of capacity reductions, wage increases, and operational and service investments. GAAP consolidated CASM increased 9 percent.
Delta’s average fuel price2 was $3.24 per gallon for the December quarter, which includes 5 cents per gallon in settled hedge gains and a 7 cent per gallon loss from the Trainer refinery.
During the quarter, jet fuel production ramped up at the Trainer Refinery. However, Superstorm Sandy negatively impacted the refinery start up, slowing production and lowering efficiency levels at the plant. As a result of the reduced production, the refinery produced a $63 million net loss for the quarter. At current market prices, Delta expects Trainer to produce a modest profit in the March quarter.
Delta recorded special items totaling a $231 million charge in the December 2012 quarter, including:
- a $122 million charge for facilities, fleet and other, including charges associated with Delta’s domestic fleet restructuring;
- a $106 million loss on early extinguishment of debt primarily due to the company’s Pacific route refinancing; and
- a $3 million mark to market loss on fuel hedges.
Delta recorded special items totaling a $46 million gain in the December 2011 quarter, including:
- a $164 million mark to market gain primarily for open fuel hedges settling in future periods;
- a $43 million gain associated with the divestiture of slots at New York-LaGuardia and Washington-Reagan National;
- an $81 million charge for impairment of intangible assets and grounded aircraft associated with Delta’s capacity reductions; and
- an $80 million charge for severance and other items, including loss on early extinguishment of debt.
(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) Average fuel price per gallon: Delta’s December 2012 quarter average fuel price of $3.24 per gallon reflects the consolidated cost per gallon for mainline and regional operations; the impact of fuel hedge contracts with original maturity dates in the December 2012 quarter; and net refinery results including the impact of self-supply from the production of the Trainer refinery, the impact of refined products exchanged with Phillips 66 and BP. Settled hedge gains for the quarter were $43 million, or 5 cents per gallon. On a GAAP basis, fuel price includes $3 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period. The net refinery loss for the quarter was $63 million, or 7 cents per gallon. See Note A for a reconciliation of average economic fuel price per gallon to the comparable GAAP metric.
(3) CASM – Ex: In addition to fuel expense, profit sharing and special items, Delta excludes ancillary businesses which are not related to the generation of a seat mile, including aircraft maintenance and staffing services which Delta provides to third parties and Delta’s vacation wholesale operations (MLT). The amounts excluded for 2012 were $185 million and $883 million for the December quarter and full year, respectively. The amounts excluded for 2011 were $216 million and $847 million for the December quarter and full year, respectively. Management believes this methodology provides a more consistent and comparable reflection of Delta’s airline operations.
Copyright Photo: Nick Dean. Boeing 767-432 ER N840MH (msn 29718) climbs away from the runway at Everett (Paine Field).
Pinnacle Airlines Corporation (Memphis) has announced that the comprehensive agreements it reached with Delta Air Lines (Atlanta), the Air Line Pilots Association, International (ALPA) and the Official Committee of Unsecured Creditors (Creditors’ Committee) in Pinnacle’s Chapter 11 cases have been approved by the Bankruptcy Court overseeing Pinnacle’s cases. The agreements together provide a path for the Company to emerge from bankruptcy with a competitive cost structure and a viable long-term business plan. Under Pinnacle’s new business plan, the Company will transition to operating a fleet of 81 fuel-efficient, two-class regional jets for Delta.
The comprehensive agreements include:
- An amendment to the Company’s existing debtor-in-possession credit facility to provide Pinnacle with $30 million of additional liquidity to support its continued operation through emergence from Chapter 11 and an additional $22 million to fund certain required payments to Pinnacle’s pilots under a Bridge Agreement and related employer taxes. The amendment would also extend the maturity date for the credit facility from April 1 to May 15, 2013.
- Amendments to the existing operating agreements with Delta that form the basis of the new business plan. Pinnacle will receive Delta Connection’s next 40 CRJ900 aircraft awarded, setting Pinnacle’s long-term fleet plan at 81 CRJ900 aircraft. The 40 additional CRJ900 aircraft deliveries are planned to begin in the fall of 2013 and are expected to be completed by year-end 2014. Pinnacle’s 140 CRJ200 aircraft will be removed from operation over the next two to three years.
- A new collective bargaining agreement with Pinnacle’s pilots, as well as a bridge agreement that provides transitional payments, furlough benefits and specified career opportunities at Delta to Pinnacle’s pilots.
- A restructuring support agreement among Pinnacle, Delta and the Creditors’ Committee setting forth certain principal terms for a plan of reorganization to emerge from Chapter 11. The reorganization plan will provide for Delta or an affiliate to acquire the equity in the reorganized Pinnacle Airlines Corporation after it emerges from bankruptcy. Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors’ Committee by February 15, 2013.
Copyright Photo: Bruce Drum. Bombardier CRJ900 (CL-600-2D24) N161PQ (msn 15161) arrives at the Atlanta hub.
Pinnacle Airlines’ (Delta Connection) (Memphis) pilots, represented by the Air Line Pilots Association, Int’l (ALPA), today ratified a bankruptcy restructuring contract that was tentatively agreed to in December. With more than 86 percent of eligible pilots casting ballots, 85 percent of Pinnacle pilots voted in favor of the agreement.
The new seven-year agreement includes, among other cuts, a 9 percent reduction in pay for all pilots plus longevity caps to all pay scales which will further cut the pay of more than half of Pinnacle’s pilots by as much as another 16 percent. In addition to almost 25 percent pay cuts, the deal also increases health-care costs for all pilots while reducing pilot retirement benefits by more than 50 percent for Pinnacle’s most senior pilots. In recognition of the magnitude of the pilots’ concessions, the contract also includes a bridge agreement that provides a one-time longevity transition payment and guaranteed hiring for many Pinnacle pilots at Delta Air Lines. Pinnacle Airlines flies exclusively as a Delta Connection carrier and Delta will likely own Pinnacle as a result of having provided the financing that allowed Pinnacle to reorganize.
“Management failures are responsible for Pinnacle’s current financial crisis,” Capt. Wychor added, “but only this sacrifice by the pilots could preserve a future for the airline and its employees. In that future, we will seek out new employment opportunities for our pilots who no longer see a viable career path at Pinnacle while we protect and shore up the restructured contract for those who remain.”
The pilot-ratified contract will now be submitted to the Bankruptcy Court for the Southern District of New York for final approval.
Copyright Photo: Bruce Drum. Bombardier CRJ900 (CL-600-2D24) N146PQ 9msn 15146) of Pinnacle Airlines arrives at the Atlanta hub.
Delta Air Lines (Atlanta) will add new daily nonstop service between Los Angeles and Nashville starting on April 8. The new route will be operated with Boeing 737-800s according to Airline Route. The company is also starting Raleigh/Durham-Tampa Bombardier CRJ200 Delta Connection flights also on April 8.
Copyright Photo: Michael B. Ing. Boeing 737-832 N3733Z (msn 30539) arrives at Los Angeles International Airport.
Delta Air Lines (Atlanta) will add three daily flights between Los Angeles and Seattle/Tacoma, beginning April 8, 2013.
Delta is rapidly growing Seattle as an Asian gateway and recently received approval for new service to Shanghai for summer 2013. The airline currently offers international service to Beijing and Osaka, Japan. Delta also has an extensive codeshare agreement with Alaska Airlines in Seattle, providing customers access to more than 50 domestic markets. From Los Angeles, customers can enjoy nonstop service to destinations including Sydney and Tokyo, as well as codeshare flights with Virgin Australia to Melbourne and Brisbane.
The new service will be operated by Delta Connection carrier SkyWest Airlines (St. George) using 76-seat two-class Bombardier CRJ900 regional jets. In addition to a first class cabin, these aircraft are equipped with onboard WiFi and Delta’s snack, food for purchase and beverage offerings.
Delta currently operates the world’s largest WiFi-equipped fleet, and plans to introduce WiFi onboard international widebody aircraft in 2013.
By summer 2013, all trans-Pacific flights will feature Delta’s full flat-bed product in Business Elite. In addition, Delta is in the process of upgrading its facilities at both Los Angeles International Airport and Seattle-Tacoma International Airport as part of its ongoing $3 billion investment to improve products, services and facilities.
Delta’s three nonstop flights between Los Angeles and Seattle are scheduled as follows:
Los Angeles to Seattle
|4523||8:15 a.m.||11:00 a.m.||April 8, 2013|
|4591||3:20 p.m.||6:05 p.m.||April 8, 2013|
|4564||9:30 p.m.||12:15 a.m.||April 8, 2013|
Seattle to Los Angeles
|4563||6:45 a.m.||9:25 a.m.||April 9, 2013|
|4523||11:50 a.m.||2:30 p.m.||April 8, 2013|
|4591||6:50 p.m.||9:30 p.m.||April 8, 2013|
Delta Air Lines serves more than 160 million customers each year.
Copyright Photo: Michael B. Ing. SkyWest Airlines’ Bombardier CRJ900 (CL-600-2D24) N823SK (msn 15205) prepares to land at Los Angeles International Airport.
Pinnacle Airlines reaches a tentative agreement with its ALPA pilots, will increase its Delta Connection Bombardier CRJ900 fleet to 81 aircraft
Pinnacle Airlines Corporation (Memphis) wholly owned subsidiary, Pinnacle Airlines Inc. (Memphis), has announced it has reached a tentative agreement with the Air Line Pilots Association (ALPA), the legal representative of the Pinnacle Airlines pilot group on cost reductions that cover pay, retirement, work rules and benefits.
A separate agreement was reached among Pinnacle Airlines, Pinnacle pilots and Delta Air Lines that includes long-term career opportunities and the addition of 40 Bombardier CRJ900s to the Pinnacle fleet. With this agreement, Pinnacle’s long-term fleet plan has been established at 81 CRJ900 aircraft. The CRJ900 deliveries are planned for the fall of 2013 and are planned to be completed by year-end of 2014. Pinnacle will remove its 140 CRJ200 aircraft from the fleet over the next two to three years.
ALPA members will have the opportunity to vote on the tentative agreement in January and, if approved, the changes would become effective when similar changes are implemented for Pinnacle’s other labor groups and non-union employees. The tentative agreement also remains subject to approval and review by the Bankruptcy Court.
Flying as a Delta Connection carrier, Pinnacle Airlines operates 197 regional jets on 1,000 daily flights to 131 cities in the United States and Canada.
Copyright Photo: Bruce Drum. Bombardier CRJ900 (CL-600-2D24) N181PQ (msn 15181) of Pinnacle Airlines arrives at Delta’s Atlanta hub.
Delta Air Lines and Virgin Atlantic Airways to form a strategic alliance, Delta to buy 49% of Virgin Atlantic from Singapore Airlines
Delta Air Lines (Atlanta) and Virgin Atlantic Airways Ltd. (London) have reached an agreement for a new joint venture that will create an expanded trans-Atlantic network and enhance competition between the U.K. and North America, offering greater benefits for customers traveling on those routes.
As part of this joint venture agreement, Delta will invest $360 million in Virgin Atlantic, acquiring a 49 percent stake currently held by Singapore Airlines. Virgin Group and Sir Richard Branson will retain the majority 51 percent stake and Virgin Atlantic Airways will retain its brand and operating certificate.
Highlights of the agreement include:
- A fully integrated joint venture that will operate on a “metal neutral” basis with both airlines sharing the costs and revenues from all joint venture flights.
- A combined trans-Atlantic network between the United Kingdom and North America with 31 peak-day round-trip flights.
- Enhanced benefits for customers including cooperation on services between New York and London, with a combined total of nine daily round-trip flights from London-Heathrow to John F. Kennedy International Airport and Newark Liberty International Airport.
- Reciprocal frequent flyer benefits.
- Shared access to Delta Sky Club and Virgin Atlantic Clubhouse airport lounges for elite passengers.
The airlines will file an application with the U.S. Department of Transportation for antitrust immunity, which will allow a closer relationship and coordination on schedules and operations. The transaction also will be reviewed by the U.S. Department of Justice and the European Union’s competition regulator and other relevant authorities. The share purchase and the joint venture are expected to be implemented by the end of 2013.
“Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the U.K., particularly on the New York-London route, which is the largest airline route between the U.S. and Europe,” said Delta CEO Richard Anderson. “By combining the strengths of our two companies in a joint venture, we can provide customers with a seamless network between North America and the U.K., and continue building a better airline for our customers, employees and shareholders.”
Steve Ridgway, Virgin Atlantic Chief Executive, added: “Consumers will reap the rewards of this partnership between two great airline brands on services from the UK to the USA, Canada and Mexico through a shared ethos in the highest standards of customer service. This joint venture will deliver much more effective competition at Heathrow.
“Both airlines are confident that the Department of Transportation will be as convinced as we are of the extensive consumer benefits arising from this joint venture, with expedited approval being granted by the end of 2013. The trans-Atlantic market is Virgin Atlantic’s heartland – it’s where we started. By aligning with Delta we can continue to grow our North American network and offer greatly enhanced connectivity across the USA.”
Virgin Atlantic President, Sir Richard Branson, commented: “This is an exciting day in Virgin Atlantic history. It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business. I truly look forward to the possibilities our partnership with Delta will offer. We have always been known for our innovation and service and have punched above our weight for 28 years. That is why our customers love us so much. We will retain that independent spirit but move forward in a strengthened partnership with Delta.”
Delta and Virgin Atlantic customers will be able to earn and redeem miles across Delta’s SkyMiles and Virgin Atlantic’s FlyingClub frequent flyer programs. Premium customers also will have reciprocal access to the Delta Sky Club and Virgin Atlantic Clubhouse airport lounges. Full details will be announced as services become available.
The partnership allows both carriers to offer a greatly expanded network at Heathrow and to overcome slot constraints, which have limited the growth and competitive capability of both airlines. The two carriers will operate a total of 31 peak-day round-trip flights between the U.K. and North America, 23 of which operate at London-Heathrow. The enlarged network will benefit customers of both carriers by providing greater access to a broader network, improved connectivity and convenient booking options.
As part of a $3 billion investment in enhanced global products, services and airport facilities, all of Delta’s flights between the U.S. and London-Heathrow feature full flat-bed seats offering direct aisle access in the BusinessElite cabin. These flights also offer Delta’s popular Economy Comfort seating in the forward section of the economy cabin. Economy Comfort offers four additional inches of legroom and 50 percent more recline compared to standard economy seats. All cabins offer in-seat audio and video on demand with a broad range of in-flight entertainment options. Delta also will begin introducing in-flight WiFi service on international flights beginning in 2013.
Virgin Atlantic has recently completed a £150m upgrade program. A new Upper Class cabin has been introduced across its Airbus A330 aircraft, which features the longest fully flat bed in the sky. This is complemented by a redesigned onboard bar and new Clubhouses at both JFK and Newark airports. The airline’s Boeing 747 leisure fleet has been completely refitted and features onboard connectivity and VERA Touch – Virgin Atlantic’s award-winning touch screen in-flight entertainment system – offering passengers hours of entertainment at their fingertips.
Top Copyright Photo: Michael B. Ing. Boeing 747-451 N668US (msn 24223) completes its final approach into Tokyo (Narita).
Bottom Copyright Photo: Keith Burton. Airbus A340-642 G-VWEB (msn 787) arrives at the London (Heathrow) hub.
Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) are planning a trans-Atlantic joint venture if Delta is successful in obtaining Singapore Airlines’ 49 percent share in Virgin Atlantic according to this report by Reuters. Sir Richard Branson is not interested in selling his controlling 51 percent but is interested in working with Delta.
Read the full report: CLICK HERE
Top Copyright Photo: Michael B. Ing. Airbus A330-223 N861NW (msn 796) climbs away from Los Angeles International Airport.
Bottom Copyright Photo: Stephen Tornblom. Appropriately registered Airbus A330-343X G-VNYC (msn 1315) pushes back from gate at New York’s JFK International Airport.
Delta Air Lines (Atlanta) has finalized an agreement with Bombardier Aerospace that will allow the airline to continue restructuring its domestic fleet by replacing less efficient single-class 50-seat aircraft with new two-class 76-seat aircraft. As part of the agreement, Delta will acquire 40 new CRJ900 two-class regional jets, with the option to purchase an additional 30 CRJ900 aircraft, and Bombardier will assist Delta in phasing out 60 single-class CRJ200 aircraft.
The addition of the CRJ900 is the latest step in Delta’s domestic fleet optimization plan focused on reducing inefficient flying, implementing strong capacity discipline by matching the right size aircraft to each market and improving the customer experience. The 76-seat CRJ900 will primarily replace less efficient 50-seat aircraft on a capacity-neutral basis. Retiring these aircraft reduces fuel and maintenance expense, improving Delta’s cost structure and environmental profile.
This announcement follows previously announced transactions supporting Delta’s domestic fleet optimization plan, including the addition of 88 Boeing 717-200 aircraft to primarily replace 50-seat aircraft, and acquisition of 100 new Boeing 737-900 ER jets to replace Boeing 757 and 767 aircraft.
Delta will begin taking delivery of CRJ900, 717-200 and 737-900 ER aircraft in the latter half of 2013.
This agreement also supports Delta’s efforts to improve the customer experience. The 40 76-seat CRJ900 aircraft enhance Delta’s efforts to offer customers more first class seats than any other airline. The CRJ900 will be configured with 12 seats in the first class cabin, 12 seats in Delta’s popular Economy Comfort section and 52 seats in economy. The aircraft will feature Delta’s all-leather seating in a two-by-two configuration with window and aisle seats only. Customers flying on Delta’s regional aircraft will continue to have access to the planeside valet program, with the opportunity to drop off larger carry-on baggage at the boarding door and pick it up planeside upon arrival.
Larger two-class regional jets flying for Delta also offer in-flight Wi-Fi access, Delta’s complimentary snacks and beverages, food available for purchase and complimentary first class meals on flights over 900 miles.
Delta’s regional fleet currently features 255 larger two-class regional jets, including 101 CRJ900 aircraft.
It is unclear which airline will operate the new CRJ900 aircraft.
In other Delta Connection news, flight attendants at subsidiary Compass Airlines (Minneapolis/St. Paul) have requested arbitration by the National Mediation Board (NMB) that will allow them to strike if management fails to negotiate a new agreement according to this report by Reuters.
Read the full report: CLICK HERE
Top Copyright Photo: Michael B. Ing. Formerly operated by Comair, Bombardier CRJ900 (CL-600-2D24) N548CA (msn 15159) is now assigned to SkyWest Airlines (St. George).
Bottom Copyright Photo: Brian McDonough. Compass Airlines operates a large Embraer fleet for Delta Air Lines. Embraer ERJ 170-200LR (ERJ 175) N608CZ (msn 17000195) arrives at Baltimore/Washington.
Delta Air Lines (Atlanta) is reportedly in discussions with Singapore Airlines (Singapore) to acquire their 49 percent share in Virgin Atlantic Airways (London). If successful, Delta’s European partners, namely Air France-KLM, could then buy some of Sir Richard Branson’s shares to take control of the UK company according to this report by the Financial Times.
Read the full report: CLICK HERE
Top Copyright Photo: Michael B. Ing. If completed, it would be a bold move by SkyTeam to further increase its presence at slot-controlled Heathrow Airport in London against the Oneworld alliance. Boeing 737-832 N3755D (msn 29627) climbs away from Los Angeles International Airport.
Bottom Copyright Photo: Brian McDonough. Is the Virgin Atlantic brand in danger of becoming history? Boeing 747-41R G-VROC (msn 32746) arrives at New York (JFK) in the updated 2010 motif.
Delta Air Lines (Atlanta) has thanked the U.S. Department of Transportation (DOT) for its preliminary approval of new service between Seattle/Tacoma and Haneda Airport in Tokyo.
Seattle is the largest West Coast city without nonstop service to Tokyo Haneda, which is the preferred Tokyo airport for many business travelers due to its proximity to the city’s central business district. The flight would complement Delta’s nonstop flight between Seattle/Tacoma and Tokyo (Narita), which will be expanded and upgraded next year to Boeing 747-400 service.
The Haneda flight adds to Delta’s growing Asian gateway in Seattle/Tacoma. In addition to Tokyo, Delta recently announced new service to Shanghai, and also operates flights to Beijing and Osaka, Japan.
The Haneda flight, which is scheduled to begin in March 2013, will operate using Boeing 767-300 ER aircraft featuring full flat-bed seats in BusinessElite, Delta’s popular Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft.
In addition to its Asian gateway, Delta operates nonstop service to Paris and Amsterdam from Seattle/Tacoma. By next summer the airline will operate more than 40 daily flights to 15 destinations worldwide from Seattle/Tacoma.
Delta’s international growth in Seattle/Tacoma is possible because of its partnership with Alaska Airlines (Seattle/Tacoma), which operates a domestic hub at Seattle-Tacoma International Airport. Customers of both carriers enjoy access to an expanded network under a major codesharing agreement, as well as reciprocal frequent flier benefits and airport lounge access. The new Tokyo-Haneda flight will benefit from easy connections to 55 U.S. cities on Delta and Alaska’s domestic networks.
Copyright Photo: Bruce Drum. Airbus A330-323X N801NW (msn 524) arrives at SeaTac from Tokyo (Narita).
Delta Air Lines (Atlanta) has completed the installation of full flat-bed seats in the BusinessElite® cabin of all Boeing 747-400 type aircraft.
The last of 16 Boeing 747 aircraft, each with 48 BusinessElite seats, has been retrofitted with full flat-bed seats. It entered scheduled service this week on a flight between Singapore and Tokyo’s Narita airport, before making its way to Atlanta.
Delta previously completed installation of the full flat-bed modification on its Boeing 777 and 767-400 ER aircraft types. To date, 13 767-300 ER aircraft have received the modification and three more will be complete by month’s end. In total, approximately 50 percent of Delta’s widebody international fleet has received the upgrade. In addition to flat-bed seats in BusinessElite, the cabin overhaul includes upgraded seats in the Economy cabin with personal entertainment at every seat. The airline’s entire widebody international fleet of more than 140 aircraft will receive the full aircraft modification in both cabins by the middle of 2014.
Delta recently announced plans to install full flat-bed seats on its transcontinental flights between New York – JFK and Los Angeles, San Francisco and Seattle.
This autumn, Delta announced plans to add Wi-Fi to its entire international fleet. The airline is already the largest operator of Wi-Fi-equipped aircraft on more than 3,000 flights serving more than 400,000 customers every day. When complete, Delta will offer Wi-Fi on more than 950 aircraft, from 747s to two-class regional jets.
Copyright Photo: Michael B. Ing. Boeing 747-451 N674US (msn 30269) climbs away from Los Angeles International Airport.
Delta Air Lines (Atlanta) on November 9, 2012 unveiled a Boeing 757 as the “Spirit of Freedom” in honor of the men and women – including more than 10,000 Delta employees – who have served and continue to serve in the U.S. Armed Forces.
Hundreds of employees along with elected officials and representatives from military organizations and Atlanta-based charities gathered at Delta’s Technical Operations Center to commemorate the christening of the “Spirit of Freedom,” which now bears a commemorative logo.
The Delta Honor Guard, an employee-led initiative, opened the program. These employee volunteers administer honor guards at more than a dozen U.S. airports for fallen heroes returning home.
In July, Delta accepted the Secretary of Defense Employer Support Freedom Award for exceptional support of Guard and Reserve employees. The airline joins one of only 15 employers across the country and is the first airline in a decade to receive the award.
Delta’s commitment to military service members extends year-round and across the travel experience. These efforts include:
- Operation of more than 2,000 military charter flights in 2012;
- Employee volunteer-staffed military lounges in Atlanta and Memphis and at USO lounges across the U.S.;
- Coordination of care packages for those serving abroad and the donation of millions of miles to military-support organizations like the Fisher House Foundation and USO;
- Recognition of servicemen and servicewomen in uniform by providing First Class and BusinessElite® upgrades when seats are available, priority boarding and complimentary Delta Sky Club access nationwide; and
- A pledge to hire more veterans by 2020 as part of its participation in the 100,000 Jobs Mission.
Delta will continue to honor veterans with a gate celebration at Washington, D.C.’s Reagan National Airport (DCA) Nov. 12-13, 2012.
Delta Air Lines (Atlanta) will introduce full flat-bed seats in the BusinessElite® cabin of all transcontinental flights operating between New York and Los Angeles, San Francisco and Seattle beginning in March 2013. All of Delta’s Boeing 757 and 767 aircraft serving these transcontinental markets will offer the flatbed seats over approximately the following 24 months.
Transcontinental flying will be operated using a combination of Boeing 757 and 767 aircraft types. The first 767 will begin flying in March of 2013, between New York - JFK and Los Angeles. This flight will be timed to provide seamless connections with Delta’s Los Angeles – Sydney flight in both directions, and offer JFK – Sydney customers a flatbed product and onboard experience throughout their itinerary. By June, four of Delta’s seven daily flights between JFK and LAX, and one of five daily flights between New York and Seattle/Tacoma, will operate with a 767 widebody aircraft featuring the flat-bed product in the BusinessElite cabin.
The 767 transcontinental product features an entirely new interior including 26 full flat-bed BusinessElite seats and direct aisle access at every seat in a 1-2-1 configuration. The 21-inch wide seats offer an average bed length of 79 inches and feature a 10.6-inch video monitor. The 767s are configured with 29 Economy Comfort seats featuring 35″ of pitch and 50 percent more recline, in addition to 171 Economy seats. Every seat in the Economy cabin features a 9-inch video monitor and USB power. Standard 110v power is available in the BusinessElite cabin and Economy Comfort section.
Sixteen full flat-bed seats on the updated transcontinental 757 fleet will be arranged in a 2-2 configuration and offer a 20-inch wide seat and an average bed length of 79 inches. Each BusinessElite seat will feature a high definition 16-inch video monitor. This fleet modification will also include changes to the Economy cabin, with 44 Economy Comfort seats offering 35 inches of pitch and 50 percent more recline, in addition to 108 Economy seats. All seats in the Economy cabin will feature a nine-inch video monitor, with standard 110v and USB power ports available at every seat. Prior to the full cabin modification and by next summer, the transcon 757 fleet will increase the number of Economy Comfort seats to 25, up from 11 today.
The entire transcon fleet will feature in-flight Wi-Fi and industry leading in-flight entertainment with a library of more than 1,000 on-demand options. Additionally, the 757 will feature 18 channels of live satellite TV.
Beginning in May of 2013, transcontinental customers flying into and out of New York’s JFK will experience first hand Delta’s new $1.2 billion expansion of Terminal 4, which will host all flights operating to Los Angeles, San Francisco and Seattle. The Concourse B extension will include the largest Delta Sky Club in the system, as well as nine new international gates, for a total of 16 the airline will occupy. The project will improve passenger flow by adding more capacity at check-in areas and security checkpoints. The state-of-the-art facilities also will feature a new automated baggage handling system and larger shopping and dining areas post-security. The project expands baggage claim and Customs and Border Protection areas to speed fliers through the airport. Delta jets will see faster taxi times with the addition of dual taxiways, improving on-time performance.
Summer 2013 flight schedules for transcontinental flights in these markets are below.
July 2013 schedule between New York – JFK and Los Angeles
|JFK||7 a.m.||LAX||10 a.m.||76Z|
|JFK||3:30 p.m.||LAX||6:45 p.m.||76Z|
|JFK||5 p.m.||LAX||8:25 p.m.||75E|
|JFK||6:15 p.m.||LAX||9:35 p.m.||76Z|
|JFK||9 p.m.||LAX||12:20 a.m.||76Z|
|LAX||6:30 a.m.||JFK||3:05 p.m.||76Z|
|LAX||8:30 a.m.||JFK||5:10 p.m.||76Z|
|LAX||11:15 a.m.||JFK||7:55 p.m.||76Z|
|LAX||1:30 p.m.||JFK||10:05 p.m.||75E|
|LAX||4 p.m.||JFK||12:30 a.m.||75E|
|LAX||9:30 p.m.||JFK||6 a.m.||76Z|
|LAX||11:30 p.m.||JFK||8 a.m.||75E|
July 2013 schedule between on New York’s JFK and Seattle
|JFK||7:30 a.m.||SEA||10:40 a.m.||75E|
|JFK||9:30 a.m.||SEA||12:40 a.m.||75E|
|JFK||3 p.m.||SEA||6:25 p.m.||76L|
|JFK||5 p.m.||SEA||8:33 p.m.||75E|
|JFK||7 p.m.||SEA||10:36 p.m.||75E|
|SEA||7 a.m.||JFK||3:20 p.m.||76L|
|SEA||9:35 a.m.||JFK||5:55 p.m.||75E|
|SEA||3 p.m.||JFK||11:15 p.m.||75E|
|SEA||11:30 p.m.||JFK||7:45 a.m.||75E|
July 2013 schedule between New York’s JFK and San Francisco
|JFK||7 a.m.||SFO||10:25 a.m.||75E|
|JFK||10 a.m.||SFO||1:25 p.m.||75E|
|JFK||2 p.m.||SFO||5:30 p.m.||75E|
|JFK||4 p.m.||SFO||7:45 p.m.||75E|
|JFK||5:30 p.m.||SFO||9:20 p.m.||75E|
|JFK||7 p.m.||SFO||10:50 p.m.||75E|
|SFO||6:15 a.m.||JFK||2:55 p.m.||75E|
|SFO||8 a.m.||JFK||4:40 p.m.||75E|
|SFO||11:30 a.m.||JFK||8:10 p.m.||75E|
|SFO||4 p.m.||JFK||12:35 a.m.||75E|
|SFO||9:15 p.m.||JFK||5:45 a.m.||75E|
|SFO||11:15 p.m.||JFK||7:50 a.m.||75E|
Transcontinental Business Elite Product
Delta has already transformed coast-to-coast travel with its current transcontinental BusinessElite product, with service elements including a gourmet three-course menu from renowned chef Michael Chiarello paired with a wine menu selected by Delta’s master sommelier Andrea Robinson; an extensive library of on demand movies, TV shows, music and games; and Gogo In-flight Internet access. Premium pillows, quilted duvets, noise-canceling headsets and adjustable winged headrests provide additional comfort.
Delta’s decision to install full flat-bed seats on its transcontinental flights complements the airline’s current investment in full flat-bed seats on its entire international widebody fleet of more than 140 aircraft. To date, 46 percent of aircraft have been modified including all Boeing 747, 767-400ER and 777 fleet types, with the entire widebody fleet scheduled to be complete in early 2014.
The expansion of full flat-bed seats to the transcontinental product is the latest in the airline’s more than $3 billion investment in enhanced global products, services and airport facilities through 2015. In addition to investments in transcon, Delta operates the largest Wi-Fi-enabled fleet in the world, is adding recharging stations at more airports, has added more First Class seats and in-flight entertainment to its domestic product; offers Economy Comfort on all two-class aircraft; is adding personal, in-seat entertainment for both BusinessElite and Economy class customers on all long-haul international flights; has updated Delta Sky Clubs throughout the system; and is overhauling its terminal facility for international customers at its two largest global gateways – the new international terminal in Atlanta now open and the expanded international terminal opening next May at New York-JFK.
Copyright Photo: Michael B. Ing. Boeing 767-332 N126DL (msn 24076) climbs away from Los Angeles International Airport (LAX).
Alaska Airlines (Seattle/Tacoma) today announced new twice-daily service between Seattle/Tacoma and Salt Lake City. Year-round flights to the “Crossroads of the West” are scheduled to begin April 4, 2013.
Alaska will offer two daily nonstop flights with seamless connections to many destinations through Salt Lake City with partner Delta Air Lines.
|Summary of new flights:|
|Start Date||City pair||Departs||Arrives||Frequency|
|April 4||Seattle-Salt Lake City||7 a.m.||9:59 a.m.||Daily|
|April 4||Salt Lake City-Seattle||11 a.m.||12:07 p.m.||Daily|
|April 4||Seattle-Salt Lake City||1:10 p.m.||4:10 p.m.||Daily|
|April 4||Salt Lake City-Seattle||5:10 p.m.||6:17 p.m.||Daily|
|All times based on local time zones
Alaska Airlines’ new flights will be operated with Boeing 737-800 aircraft, accommodating 16 passengers in first class and 141 in the main cabin.
Copyright Photo: Bruce Drum. Boeing 737-890 N548AS (msn 30020) is pictured at Miami International Airport in the reverse Alaskaair.com livery, introduced in 2000 to promote its website.
Republic Airways Holdings (Indianapolis) today issued the following statement concerning its subsidiary Chautauqua Airlines (Indianapolis):
Republic Airways Holdings Inc. today (October 31) announced it has reached agreements with several key stakeholders which, combined with other initiatives taken, including placing idled aircraft back into revenue service, will mitigate future negative cash flows at its Chautauqua Airlines subsidiary on average by approximately $45 million annually over the next five years.
“This is an important milestone in our Chautauqua restructuring effort,” said Bryan Bedford, chairman, president and CEO of Republic Airways. “These agreements take us about three-quarters of the way to our stated need of $60 million in average annual cash flow improvements at Chautauqua in order to stabilize and secure its future. We still have approximately two-thirds of our small jet fleet of 70 aircraft operating under capacity purchase agreements (CPAs) with less than two years remaining, so we are focused on ensuring both our labor productivity and long-term maintenance costs of these aircraft remain competitive.”
The Company also announced it has amended its CPA between Chautauqua Airlines and Delta Air Lines to provide for the operation of an additional seven Embraer ERJ 145 aircraft for a period of one year for each aircraft. All seven aircraft are expected to be placed into service with Delta before the end of 2012. Prior to the amendment, Chautauqua operated a total of twenty-four Embraer ERJ 145 aircraft under a CPA which continues through May 2016.
“The deployment of these seven aircraft, combined with our other recent CPA activity, means we will have placed all remaining idle 50-seat regional jet aircraft back into revenue service by the end of 2012. Ensuring our 50-seat aircraft remain active under agreements with our major airline partners is an important component of our Chautauqua restructuring effort,” said Bedford.
Copyright Photo: Brian McDonough. Embraer ERJ 145LR (EMB-145LR) N272SK (msn 145306) arrives at Baltimore/Washington.
Delta Air Lines (Atlanta) today reported:
- net income, excluding special items1, for the September 2012 quarter was $768 million, or $0.90 per diluted share.
- Delta’s September 2012 quarter GAAP net income was $1.0 billion, or $1.23 per diluted share, including mark-to-market gains on open fuel hedges and other special items.
- Delta’s unit revenues were up 3 percent for the quarter and the company has produced a unit revenue premium to the industry for eighteen consecutive months.
- Results included $174 million in profit sharing expense, for a total of $309 million year to date, in recognition of Delta employees’ efforts toward the company’s financial targets. In addition, Delta people have received $67 million in Shared Rewards in 2012 for hitting the company’s operational and customer service targets.
- Delta ended the September 2012 quarter with $5.1 billion in unrestricted liquidity and adjusted net debt of $11.9 billion.
Delta’s operating revenue grew $107 million, or 1 percent, on 1.5 percent lower capacity in the September 2012 quarter compared to the September 2011 quarter. Load factor for the quarter increased 0.3 points year over year to 86.4 percent.
- Passenger revenue increased 1 percent, or $124 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 3 percent, driven by a 3 percent improvement in yield.
- Cargo revenue decreased 5 percent, or $14 million, with lower cargo yields partially offset by higher volumes.
- Other revenue decreased $3 million as lower third-party maintenance revenues were partially offset by higher codeshare revenue.
Comparisons of revenue-related statistics are as follows:
|3Q12 versus 3Q11|
|Passenger Revenue||3Q12 ($M)||Change
“Our solid revenue performance reflects the benefits of capacity discipline, strong operational performance and the investments we have made in our products and service,” said Ed Bastian, Delta’s president. ”We expect our revenue performance to benefit from our continued capacity discipline and further corporate travel gains and we are forecasting our October unit revenues to increase 4 – 5% year over year.”
Excluding mark-to-market adjustments, Delta’s average fuel price2 was $3.14 per gallon for the September quarter, which includes 3 cents per gallon in settled losses from its fuel hedging program. On a GAAP basis, which includes $440 million of mark-to-market gains on out of period hedges, the company’s average fuel price was $2.71 per gallon.
During the September quarter, jet fuel production began at Delta’s wholly-owned Trainer Refinery and the company expects the plant to be fully operational in the December quarter. For the December quarter, Delta expects Trainer’s production to generate a contribution of breakeven to $25 million.
Non-Fuel Cost Performance
Consolidated unit cost (CASM3), excluding fuel expense, profit sharing and special items, was 5.6 percent higher in the September 2012 quarter on a year-over-year basis, driven by the impact of capacity reductions, higher maintenance expense, wage increases and service investments. GAAP consolidated CASM decreased 2 percent primarily due to mark-to-market gains on open fuel hedges.
“With consistent investment in the business, our non-fuel costs have grown in the past few quarters and we expect that trend to continue into the first half of next year,” said Paul Jacobson, Delta’s chief financial officer. “However, we are in the process of implementing a $1 billion program of structural initiatives that we anticipate will generate significant savings in the second half of 2013, while maintaining the high quality product, network and operation we have built.”
Cash Flow and Liquidity
As of September 30, 2012, Delta had $5.1 billion in unrestricted liquidity, including $3.2 billion in cash and short-term investments and $1.9 billion in undrawn revolving credit facilities.
Operating cash flow during the September 2012 quarter was $545 million, driven by the company’s profitability, which was offset by the normal seasonal decline in advance ticket sales. Free cash flow for the September 2012 quarter was $120 million.
Capital expenditures during the quarter were $425 million, including $275 million for fleet, including advance payments for 737-900ERs, induction costs for MD-90s and interior modifications to Delta’s international fleet.
During the September quarter, Delta paid $270 million in net debt maturities and capital lease obligations. At September 30, the company’s adjusted net debt was $11.9 billion, a reduction of $5 billion since the end of 2009.
Subsequent to the end of the quarter, Delta refinanced $1.7 billion in debt and undrawn revolving credit facilities secured by the company’s Pacific routes and slots. As a result of this transaction, the company has maintained its revolving credit capacity and lowered the interest rate. Delta expects the transaction will generate more than $30 million in annual interest expense savings.
December 2012 Quarter Guidance
Delta’s projections for the December 2012 quarter are below.
|4Q 2012 Forecast|
|Average fuel price, including taxes and settled hedges||$ 3.15 – $3.20|
|Operating margin||4 – 6%|
|Capital expenditures||$450 – 550 million|
|Total liquidity at end of period||$ 5.2 billion|
|4Q 2012 Forecast
(compared to 4Q 2011)
|Consolidated unit costs – excluding fuel expense and profit sharing||Up 5 – 7%|
|System capacity||Down 1 – 3%|
|Domestic||Down 1 – 3%|
|International||Down 2 – 4%|
Delta recorded special items totaling a $279 million gain in the September 2012 quarter, including:
- a $440 million gain on mark-to-market adjustments on 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.
Delta recorded special items totaling a $216 million charge in the September 2011 quarter, primarily related to mark to market adjustments for open fuel hedges.
(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) Average fuel price per gallon: Delta’s September 2012 quarter average fuel price of $3.14 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 2012 quarter. Settled hedge losses for the quarter were $26 million, or 3 cents per gallon. On a GAAP basis, fuel price includes $440 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period.
(3) CASM – Ex: Delta excludes from consolidated unit cost ancillary businesses which are not related to the generation of a seat mile, including aircraft maintenance and staffing services which Delta provides to third parties and Delta’s vacation wholesale operations (MLT). The amounts excluded were $214 million and $232 million for the September 2012 quarter and September 2011 quarter, respectively.
Copyright Photo: Tony Storck. Boeing 747-451 N669US (msn 24224) lands at Baltimore/Washington International Thurgood Marshall Airport (BWI).
Delta dedicates its Boeing 767-400 “Pink Plane” to the Breast Cancer Research Foundation® founder Evelyn Lauder
Delta Air Lines‘ (Atlanta) eighth annual “Breast Cancer One” employee survivor charter takes flight for the fight today in advance of Delta’s October fundraising efforts benefiting The Breast Cancer Research Foundation. In memory of BCRF Founder Evelyn Lauder, Delta’s Boeing 767-400 signature ‘pink plane’ (above) will be dedicated at New York’s LaGuardia Airport in a presentation attended by her husband, Leonard Lauder, BCRF Acting Chairman and Chairman Emeritus of The Estee Lauder Companies, as well as BCRF staff.
The pink plane also will be painted with a welcome message: “Thank You Delta Customers and Employees. Together We Have Raised $5 Million For the Fight Against Breast Cancer.”
Delta’s pink plane will fly from Atlanta’s Hartsfield-Jackson International Airport to New York’s LaGuardia Airport with more than 140 employee cancer survivors from 19 different departments in 35 locations around the world.
In addition to the pink plane, throughout October Delta’s administrative building at its general offices will be illuminated in pink lighting in support of BCRF. Delta employees also will wear pink uniforms and sell pink products including pink lemonade and pink headsets onboard and in Delta Sky Clubs to raise awareness and support for breast cancer research. All proceeds benefit BCRF.
Delta also will donate $1 to BCRF for the first 50,000 new “Likes” on the Delta Facebook page during October. New and current fans will be able to download a customized Delta Facebook cover and profile image, highlighting their contribution to the cause.
Delta began its partnership with BCRF in 2005. Since then, employees and customers have raised more than $5 million and contributed to 18 fully funded research grants worldwide.
In other news, Delta will drop the New York (LaGuardia)-Ottawa route on October 28, followed by the Memphis-Cleveland route on November 27 according to Airline Route.
Copyright Photo: Michael B. Ing. Boeing 767-432 ER N845MH (msn 29719) arrives back at the ATL hub.
Delta Air Lines (Atlanta) is planning to drop the New York (LaGuardia)-Philadelphia route on November 3 according to Airline Route. The route is currently operated with Embraer ERJ 135s and ERJ 145s.
Copyright Photo: Brian McDonough. Embraer ERJ 145LR (EMB-145LR) N568RP (msn 145800) in the special 800th (Embraer) logo arrives at Baltimore/Washington.
Delta Air Lines Inc. (Atlanta) and AeroMexico (Mexico City) plan to begin construction of a jointly operated aircraft maintenance, repair and overhaul (MRO) center at the Intercontinental Airport in Queretaro, next to that State’s Aerospace Park.
As part of a Memorandum of Understanding (MOU) and continuation of their commercial alliance, the carriers will invest equal amounts in a project to move work currently being done at the Guadalajara International Airport and expand MRO capabilities for their own aircraft and other carriers. The new facility’s heavy maintenance capacity will allow for up to seven aircraft to be serviced simultaneously.
According to both carriers, “this project represents one of the most important investments in aviation infrastructure in Mexico in history and proves that the joint efforts between the private and public sectors benefit the country’s economic growth.”
Delta Air Lines acquired a 4.17 percent stake in Grupo Aeromexico in June of this year.
It is unclear if any heavy maintenance will be moved from Atlanta to Guadalajara.
Top Copyright Photo: Michael B. Ing. Boeing 767-332 N139DL (msn 25984) with a United Way logo approaches for landing at Los Angeles International Airport.
Delta Air Lines (Atlanta) will start daily, nonstop service between its New York (JFK) hub and Vancouver, British Columbia starting on June 6, 2013. The new route will be operated with Boeing 737-800s according to Airline Route.
Copyright Photo: Brian McDonough. Boeing 737-832 N389DA (msn 30376) prepares to land at Washington (Reagan National).
SkyWest, Inc. (SkyWest Airlines) (St. George) has announced that it has reached an understanding with Delta Air Lines, Inc. (Atlanta) on a transaction which provides SkyWest, Inc. 34 additional dual-class regional jet aircraft and for the early termination of 66 Bombardier CRJ200 regional jet aircraft under its existing Delta Connection agreements. The 34 additional aircraft consist of five Bombardier CRJ700 aircraft and 29 Bombardier CRJ900. SkyWest, Inc. anticipates that it will take delivery of the 34 aircraft incrementally between August 2012 and June 2013. Subject to the completion of agreements to be negotiated between SkyWest, Inc. and Delta, SkyWest, Inc. also anticipates that these changes will be incorporated into its existing Delta agreements with a December 2022 termination date for these operating rights.
SkyWest, Inc. intends to remove the 66 CRJ200 aircraft from existing Delta Connection service between August 2012 and December 2015. Of those aircraft, 41 are Delta-financed aircraft which are scheduled to be returned to Delta without obligation to SkyWest, Inc. The remaining 25 aircraft are SkyWest, Inc. financed aircraft and SkyWest is currently working on opportunities to mitigate the financial risk associated with removing those aircraft from Delta service.
Copyright Photo: Michael B. Ing. Bombardier CRJ900 (CL-600-2D24) N802SK (msn 15061) is pictured on final approach into Los Angeles International Airport.