Delta Reports Financial and Operating Performance for May

Mon Jun 4, 2012 9:00am EDT

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Delta Reports Financial and Operating Performance for May

PR Newswire

ATLANTA, June 4, 2012 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial and operating performance for May 2012.

(Logo: http://photos.prnewswire.com/prnh/20090202/DELTALOGO )

Delta's consolidated passenger unit revenue (PRASM) increased 6 percent for the month of May as compared to the prior year.  While lower than recent guidance by one point, May's performance is strong when viewed in the context of an exceptional May performance in 2011. The variance to recent guidance is due primarily to the impact from competitor fare actions in the second half of the month. Delta expects strong peak season revenue performance.

System load factor increased 0.2 points on a 0.9 percent reduction in capacity.

The company's fuel price per gallon was $3.37 for the month. 

Delta had strong operational performance during the month. Delta's completion factor of 99.7 percent was 0.2 points higher than prior year, and its on-time performance improved 3.7 points to 86.4 percent.

The company's financial and operational performance is detailed below.

 

Preliminary Financial and Operational Results – May 2012

 

Consolidated PRASM change year over year

6%

Consolidated average fuel price

$3.37

On-time performance (preliminary DOT A14)

86.4%

Mainline completion factor

99.7%

Note: Fuel price includes taxes, transportation, settled hedges, and hedge premiums, but excludes mark to market adjustments on open hedges.

Delta Air Lines serves more than 160 million customers each year. During the past year, Delta was named domestic "Airline of the Year" by the readers of Travel Weekly magazine, was named the "Top Tech-Friendly U.S. Airline" by PCWorld magazine for its innovation in technology and won the Business Travel News Annual Airline Survey. With an industry-leading global network, Delta and the Delta Connection carriers offer service to nearly 350  destinations in 65 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $3 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

Forward-looking Statements

Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.  All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements.  These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the impact of posting collateral in connection with our fuel hedge contracts; the impact of significant funding obligations with respect to defined benefit pension plans; the impact that our indebtedness may have on our financial and operating activities and our ability to incur additional debt; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; interruptions or disruptions in service at one of our hub airports; our increasing dependence on technology in our operations; the ability of our credit card processors to take significant holdbacks in certain circumstances; the possible effects of accidents involving our aircraft; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; our ability to retain management and key employees; competitive conditions in the airline industry; the effects of the rapid spread of contagious illnesses; and the effects of terrorist attacks.  

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2011.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of June 4, 2012, and which we have no current intention to update.

 



















Monthly Traffic Results (a)


Year to Date Traffic Results (a)




















May 2012


May 2011


Change


May 2012


May 2011


Change

















RPMs (000):














Domestic

9,785,620


9,985,993


(2.0%)


45,567,649


45,407,237


0.4%




Delta Mainline

7,740,447


7,862,186


(1.5%)


35,920,965


35,788,782


0.4%




Regional

2,045,173


2,123,807


(3.7%)


9,646,684


9,618,455


0.3%



International

6,747,082


6,647,184


1.5%


29,968,989


29,629,071


1.1%




Latin America

1,059,908


1,015,180


4.4%


5,831,089


5,730,215


1.8%




    Delta Mainline

1,042,916


997,433


4.6%


5,764,546


5,649,846


2.0%




    Regional

16,992


17,747


(4.3%)


66,541


80,369


(17.2%)




Atlantic

3,633,586


3,801,098


(4.4%)


14,607,370


15,046,475


(2.9%)




Pacific

2,053,587


1,830,906


12.2%


9,530,532


8,852,381


7.7%



Total System

16,532,701


16,633,177


(0.6%)


75,536,638


75,036,308


0.7%

















ASMs (000):














Domestic

11,460,650


11,740,064


(2.4%)


54,929,772


56,139,811


(2.2%)




Delta Mainline

8,954,178


9,121,503


(1.8%)


42,518,925


43,462,987


(2.2%)




Regional

2,506,471


2,618,561


(4.3%)


12,410,846


12,676,824


(2.1%)



International

8,188,556


8,082,740


1.3%


38,038,806


39,051,367


(2.6%)




Latin America

1,350,895


1,346,760


0.3%


7,464,976


7,556,811


(1.2%)




    Delta Mainline

1,325,428


1,321,284


0.3%


7,359,829


7,434,866


(1.0%)




    Regional

25,467


25,476


(0.0%)


105,147


121,945


(13.8%)




Atlantic

4,296,128


4,540,011


(5.4%)


18,641,484


20,178,991


(7.6%)




Pacific

2,541,533


2,195,969


15.7%


11,932,346


11,315,565


5.5%



Total System

19,649,206


19,822,804


(0.9%)


92,968,577


95,191,178


(2.3%)

















Load Factor:














Domestic

85.4%


85.1%


0.3

pts

83.0%


80.9%


2.1

pts



Delta Mainline

86.4%


86.2%


0.2

pts

84.5%


82.3%


2.2

pts



Regional

81.6%


81.1%


0.5

pts

77.7%


75.9%


1.8

pts


International

82.4%


82.2%


0.2

pts

78.8%


75.9%


2.9

pts



Latin America

78.5%


75.4%


3.1

pts

78.1%


75.8%


2.3

pts



    Delta Mainline

78.7%


75.5%


3.2

pts

78.3%


76.0%


2.3

pts



    Regional

66.7%


69.7%


(3.0)

pts

63.3%


65.9%


(2.6)

pts



Atlantic

84.6%


83.7%


0.9

pts

78.4%


74.6%


3.8

pts



Pacific

80.8%


83.4%


(2.6)

pts

79.9%


78.2%


1.7

pts


Total System

84.1%


83.9%


0.2

pts

81.2%


78.8%


2.4

pts
















Mainline Completion

99.7%


99.5%


0.2

pts







Factor




























Passengers Boarded

14,186,874


14,365,302


(1.2%)


65,476,527


64,596,124


1.4%

















Cargo Ton Miles (000):

206,237


197,110


4.6%


967,841


983,215


(1.6%)

















Endnote:













(a) Results include flights operated under contract carrier arrangements.






































































Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

May 2012

Delta sometimes uses information that is derived from its Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Certain of this information are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules.  The non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

  • Delta adjusts for mark to market ("MTM") adjustments for fuel hedges recorded in periods other than the settlement period in order to evaluate the company's financial results in the period shown.

May 2012

(preliminary)




Average price per fuel gallon including fuel expense incurred under contract carrier arrangements

$5.78




MTM adjustments for fuel hedges recorded in periods other than the settlement period

(2.41)




Average price per fuel gallon, adjusted

$3.37









 

SOURCE Delta Air Lines

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