Delta Reports Financial and Operating Performance for June 2014

News provided by

Jul 02, 2014, 09:00 ET

ATLANTA, July 2, 2014 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial and operating performance for June 2014.

Consolidated passenger unit revenue (PRASM) for the month of June increased 4.5 percent year over year as continued corporate and domestic strength offset lower than expected international yields driven by industry-wide capacity increases and lower business demand to Latin America due to the World Cup. For the June quarter, unit revenues increased 6 percent, in line with initial guidance given in late April.

Delta's solid operating performance continued through June, with a monthly completion factor of 99.9 percent and an on-time arrival rate of 80.8 percent.

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	$2.93 - $2.98
June mainline completion factor	99.9%
June on-time performance (preliminary DOT A14)	80.8%

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

Delta Air Lines serves nearly 165 million customers each year. This year, Delta was named the 2014 Airline of the Year by Air Transport World magazine and was named to FORTUNE magazine's 50 Most Admired Companies, in addition to being named the most admired airline for the third time in four years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 333 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 newly formed 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, services and technology to enhance the customer experience in the air and on the ground. Additional information is available on delta.com, Twitter @Delta, 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, 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 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, 2013. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of July 2, 2014, and which we have no current intention to update.

			Monthly Traffic Results (a)				Year to Date Traffic Results (a)

			Jun 2014	Jun 2013	Change		Jun 2014	Jun 2013	Change

RPMs (000):
	Domestic		10,939,979	10,526,035	3.9%		58,257,767	55,765,912	4.5%
		Delta Mainline	9,033,537	8,546,649	5.7%		47,670,256	45,011,319	5.9%
		Regional	1,906,442	1,979,386	(3.7%)		10,587,511	10,754,593	(1.6%)
	International		8,089,102	7,941,956	1.9%		39,677,005	38,093,256	4.2%
		Latin America	1,539,638	1,278,412	20.4%		9,234,251	7,561,590	22.1%
		Delta Mainline	1,504,803	1,257,353	19.7%		9,044,613	7,451,238	21.4%
		Regional	34,835	21,059	65.4%		189,637	110,352	71.8%
		Atlantic	4,380,459	4,437,900	(1.3%)		18,421,514	18,475,275	(0.3%)
		Pacific	2,169,005	2,225,644	(2.5%)		12,021,240	12,056,391	(0.3%)
	Total System		19,029,082	18,467,991	3.0%		97,934,772	93,859,168	4.3%

ASMs (000):
	Domestic		12,451,593	12,188,850	2.2%		68,294,909	67,136,049	1.7%
		Delta Mainline	10,148,326	9,752,353	4.1%		54,964,594	53,121,856	3.5%
		Regional	2,303,267	2,436,497	(5.5%)		13,330,315	14,014,193	(4.9%)
	International		9,295,364	8,908,600	4.3%		47,421,578	45,765,993	3.6%
		Latin America	1,855,341	1,502,693	23.5%		11,094,057	9,135,595	21.4%
		Delta Mainline	1,811,883	1,477,858	22.6%		10,839,269	8,989,714	20.6%
		Regional	43,458	24,835	75.0%		254,788	145,881	74.7%
		Atlantic	4,926,892	4,877,253	1.0%		22,021,786	22,352,459	(1.5%)
		Pacific	2,513,131	2,528,654	(0.6%)		14,305,735	14,277,939	0.2%
	Total System		21,746,957	21,097,450	3.1%		115,716,487	112,902,042	2.5%

Load Factor:
	Domestic		87.9%	86.4%	1.5	pts	85.3%	83.1%	2.2	pts
		Delta Mainline	89.0%	87.6%	1.4	pts	86.7%	84.7%	2.0	pts
		Regional	82.8%	81.2%	1.6	pts	79.4%	76.7%	2.7	pts
	International		87.0%	89.1%	(2.1)	pts	83.7%	83.2%	0.5	pts
		Latin America	83.0%	85.1%	(2.1)	pts	83.2%	82.8%	0.4	pts
		Delta Mainline	83.1%	85.1%	(2.0)	pts	83.4%	82.9%	0.5	pts
		Regional	80.2%	84.8%	(4.6)	pts	74.4%	75.6%	(1.2)	pts
		Atlantic	88.9%	91.0%	(2.1)	pts	83.7%	82.7%	1.0	pts
		Pacific	86.3%	88.0%	(1.7)	pts	84.0%	84.4%	(0.4)	pts
	Total System		87.5%	87.5%	0.0	pts	84.6%	83.1%	1.5	pts

Mainline Completion Factor			99.9%	99.6%	0.3	pts

Passengers Boarded			15,592,676	15,101,576	3.3%		83,255,016	80,137,273	3.9%

Cargo Ton Miles (000):			207,637	196,093	5.9%		1,127,912	1,138,344	(0.9%)

^aResults include flights operated under contract carrier arrangements