ATLANTA, July 2, 2015 /PRNewswire/ -- Delta Air Lines
(NYSE: DAL) today reported financial and operating performance for
June 2015.
Consolidated passenger unit revenue (PRASM) for the month of
June decreased 4.5 percent year over year, driven by foreign
exchange pressure and lower surcharges in international markets, as
well as domestic yields that have softened in select markets.
The company's financial and operating performance is detailed
below.
Preliminary
Financial and Operating Results
|
June consolidated
PRASM change year over year
|
(4.5%)
|
Projected June
quarter fuel price per gallon, adjusted
|
$2.40 -
$2.45
|
June mainline
completion factor
|
99.7%
|
June on-time
performance (preliminary DOT A14)
|
82.2%
|
- Note: Projected fuel price of $2.40 -
$2.45 includes taxes, transportation, settled hedges, hedge
premiums and refinery contribution and is adjusted for MTM
adjustments.
Delta Air Lines serves more than 170 million customers each
year. Delta was named to FORTUNE magazine's top 50 World's Most
Admired Companies in addition to being named the most admired
airline for the fourth time in five years. Additionally, Delta has
ranked No.1 in the Business Travel News Annual Airline survey for
four consecutive years, a first for any airline. With an
industry-leading global network, Delta and the Delta Connection
carriers offer service to 334 destinations in 64 countries on six
continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees
worldwide and operates a mainline fleet of more than 700 aircraft.
The airline is a founding member of the SkyTeam global alliance and
participates in the industry's leading trans-Atlantic joint venture
with Air France-KLM and Alitalia as well as a joint venture with
Virgin Atlantic. Including its worldwide alliance partners, Delta
offers customers more than 15,000 daily flights, with key hubs and
markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles,
Minneapolis/St. Paul, New York-JFK, New York-LaGuardia,
Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita.
Delta has invested billions of dollars in airport facilities,
global products and services, and technology to enhance the
customer experience in the air and on the ground. Additional
information is available on the Delta News Hub, as well as
delta.com, Twitter @DeltaNewsHub, Google.com/+Delta,
Facebook.com/delta and Delta's blog takingoff.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, June
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 availability 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 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
dependence on technology in our operations; disruptions or security
breaches of our information technology infrastructure; 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; failure or
inability of insurance to cover a significant liability at the
Trainer refinery; the impact of environmental regulation on the
Trainer refinery, including costs related to renewable fuel
standard regulations; our ability to retain management and key
employees; competitive conditions in the airline industry; the
effects of extensive government regulation on our business; the
effects of terrorist attacks; the effects of the rapid spread of
contagious illnesses; and the costs associated with war risk
insurance.
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, 2014.
Caution should be taken not to place undue reliance on our
forward-looking statements, which represent our views only as of
July 2, 2015, and which we have no
current intention to update.
Non-GAAP Reconciliation
Delta sometimes uses information ("non-GAAP financial measures")
that is derived from the Consolidated Financial Statements, but
that is not presented in accordance with accounting principles
generally accepted in the U.S. ("GAAP"). Under the U.S. Securities
and Exchange Commission rules, non-GAAP financial measures may be
considered in addition to results prepared in accordance with GAAP,
but should not be considered a substitute for or superior to GAAP
results. The tables below show reconciliations of non-GAAP
financial measures used in this release to the most directly
comparable GAAP financial measures.
Average Fuel Price Per Gallon, Adjusted
Delta adjusts for mark-to-market adjustments and settlements to
determine average price per fuel gallon, adjusted. MTM adjustments
are defined as fair value changes recorded in periods other than
the settlement period. Such fair value changes are not necessarily
indicative of the actual settlement value of the underlying hedge
in the contract settlement period. Settlements represent cash
received or paid on hedge contracts settling during the period.
These items adjust fuel expense to show the economic impact of
hedging, including cash received or paid on hedge contracts during
the period. Adjusting for these items allows investors to better
understand and analyze the company's core operational performance
in the period shown.
|
|
|
(Projected)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
June 30,
2015
|
|
Average fuel price
per gallon
|
$1.75 to
$1.70
|
|
MTM
adjustments and settlements
|
|
|
$0.65 to
$0.75
|
|
Average fuel price
per gallon, adjusted
|
$2.40 to
$2.45
|
|
|
|
|
|
|
|
|
|
Monthly Traffic
Results (a)
|
|
Year to Date
Traffic Results (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun
2015
|
|
Jun
2014
|
|
Change
|
|
Jun
2015
|
|
Jun
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RPMs
(000):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
11,552,542
|
|
10,939,906
|
|
5.6%
|
|
60,844,736
|
|
58,259,740
|
|
4.4%
|
|
|
|
Delta
Mainline
|
9,722,780
|
|
9,033,571
|
|
7.6%
|
|
50,665,820
|
|
47,669,960
|
|
6.3%
|
|
|
|
Regional
|
1,829,762
|
|
1,906,335
|
|
(4.0%)
|
|
10,178,916
|
|
10,589,780
|
|
(3.9%)
|
|
|
International
|
8,095,099
|
|
8,089,761
|
|
0.1%
|
|
40,121,685
|
|
39,682,442
|
|
1.1%
|
|
|
|
Latin
America
|
1,587,763
|
|
1,540,164
|
|
3.1%
|
|
9,984,632
|
|
9,246,772
|
|
8.0%
|
|
|
|
Delta
Mainline
|
1,559,113
|
|
1,505,328
|
|
3.6%
|
|
9,796,641
|
|
9,057,132
|
|
8.2%
|
|
|
|
Regional
|
28,650
|
|
34,836
|
|
(17.8%)
|
|
187,991
|
|
189,640
|
|
(0.9%)
|
|
|
|
Atlantic
|
4,389,270
|
|
4,380,844
|
|
0.2%
|
|
18,347,285
|
|
18,412,387
|
|
(0.4%)
|
|
|
|
Pacific
|
2,118,066
|
|
2,168,753
|
|
(2.3%)
|
|
11,789,767
|
|
12,023,283
|
|
(1.9%)
|
|
|
Total
System
|
19,647,641
|
|
19,029,667
|
|
3.2%
|
|
100,966,421
|
|
97,942,182
|
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
ASMs
(000):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
12,995,632
|
|
12,451,129
|
|
4.4%
|
|
71,289,481
|
|
68,296,759
|
|
4.4%
|
|
|
|
Delta
Mainline
|
10,836,379
|
|
10,148,069
|
|
6.8%
|
|
58,515,925
|
|
54,964,851
|
|
6.5%
|
|
|
|
Regional
|
2,159,254
|
|
2,303,060
|
|
(6.2%)
|
|
12,773,556
|
|
13,331,908
|
|
(4.2%)
|
|
|
International
|
9,314,550
|
|
9,295,254
|
|
0.2%
|
|
49,236,907
|
|
47,423,869
|
|
3.8%
|
|
|
|
Latin
America
|
1,901,207
|
|
1,855,834
|
|
2.4%
|
|
12,237,463
|
|
11,108,090
|
|
10.2%
|
|
|
|
Delta
Mainline
|
1,865,954
|
|
1,812,375
|
|
3.0%
|
|
11,990,364
|
|
10,853,302
|
|
10.5%
|
|
|
|
Regional
|
35,253
|
|
43,459
|
|
(18.9%)
|
|
247,099
|
|
254,788
|
|
(3.0%)
|
|
|
|
Atlantic
|
5,050,034
|
|
4,926,223
|
|
2.5%
|
|
23,059,391
|
|
22,008,948
|
|
4.8%
|
|
|
|
Pacific
|
2,363,310
|
|
2,513,197
|
|
(6.0%)
|
|
13,940,052
|
|
14,306,831
|
|
(2.6%)
|
|
|
Total
System
|
22,310,182
|
|
21,746,383
|
|
2.6%
|
|
120,526,387
|
|
115,720,628
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Load
Factor:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
88.9%
|
|
87.9%
|
|
1.0
|
pts
|
85.3%
|
|
85.3%
|
|
0.0
|
pts
|
|
|
Delta
Mainline
|
89.7%
|
|
89.0%
|
|
0.7
|
pts
|
86.6%
|
|
86.7%
|
|
(0.1)
|
pts
|
|
|
Regional
|
84.7%
|
|
82.8%
|
|
1.9
|
pts
|
79.7%
|
|
79.4%
|
|
0.3
|
pts
|
|
International
|
86.9%
|
|
87.0%
|
|
(0.1)
|
pts
|
81.5%
|
|
83.7%
|
|
(2.2)
|
pts
|
|
|
Latin
America
|
83.5%
|
|
83.0%
|
|
0.5
|
pts
|
81.6%
|
|
83.2%
|
|
(1.6)
|
pts
|
|
|
Delta
Mainline
|
83.6%
|
|
83.1%
|
|
0.5
|
pts
|
81.7%
|
|
83.5%
|
|
(1.8)
|
pts
|
|
|
Regional
|
81.3%
|
|
80.2%
|
|
1.1
|
pts
|
76.1%
|
|
74.4%
|
|
1.7
|
pts
|
|
|
Atlantic
|
86.9%
|
|
88.9%
|
|
(2.0)
|
pts
|
79.6%
|
|
83.7%
|
|
(4.1)
|
pts
|
|
|
Pacific
|
89.6%
|
|
86.3%
|
|
3.3
|
pts
|
84.6%
|
|
84.0%
|
|
0.6
|
pts
|
|
Total
System
|
88.1%
|
|
87.5%
|
|
0.6
|
pts
|
83.8%
|
|
84.6%
|
|
(0.8)
|
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
Completion Factor
|
99.7%
|
|
99.9%
|
|
(0.2)
|
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passengers
Boarded
|
16,307,542
|
|
15,591,352
|
|
4.6%
|
|
86,646,237
|
|
83,259,921
|
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo Ton Miles
(000):
|
186,621
|
|
207,086
|
|
(9.9%)
|
|
1,098,071
|
|
1,119,548
|
|
(1.9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
aResults
include flights operated under contract carrier
arrangements
|
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SOURCE Delta Air Lines