Delta Air Lines Announces December Quarter Profit

              Delta Air Lines Announces December Quarter Profit

PR Newswire

ATLANTA, Jan. 22, 2013

ATLANTA, Jan. 22, 2013 /PRNewswire/ --Delta Air Lines (NYSE:DAL) today
reported financial results for the December 2012 quarter. Key points include:

  oDelta's net income for the December 2012 quarter was $238 million, or
    $0.28 per diluted share, excluding special items^1. Results include the
    $100 million negative impact of Superstorm Sandy on airline and refinery
    operations.
  oDelta's net income for 2012 was $1.6 billion, excluding special items, a
    $362 million increase over 2011.
  oDelta's GAAP net income was $7 million, or $0.01 per diluted share, for
    the December 2012 quarter and $1.0 billion for 2012.
  oDelta'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.
  o2012 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.
  oDelta's adjusted net debt at the end of 2012 was $11.7 billion, a $5.3
    billion reduction from 2009.

(Logo: http://photos.prnewswire.com/prnh/20101123/CL04792LOGO)

"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."

Revenue Environment
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.

  oPassenger 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.
  oCargo revenue decreased 5.9 percent, or $15 million, on declining freight
    yields.
  oOther 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:

                             Increase (Decrease)
                             4Q12 versus 4Q11
                             Change  Unit
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 Flow
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."

Cost Performance
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 (CASM^3), 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.

Fuel
Delta's average fuel price^2 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.

Company Highlights
Delta has a strong commitment to employees, customers and the communities it
serves. Key accomplishments in 2012 include:

  oRecognizing the achievements of Delta employees toward meeting the
    company's financial and operational goals with $463 million of incentives,
    including $372 million in employee profit sharing and $91 million in
    Shared Rewards;
  oSignificantly improving its operational performance, resulting in an
    on-time arrival rate of 86.5 percent, a 25 percent reduction in lost bags,
    and nearly 40 percent fewer customer complaints compared to 2011;
  oReceiving recognition from leading organizations and publications,
    including the Secretary of Defense Freedom Award and being named the best
    airline for business, sweeping all 10 categories, by Business Travel News;
  oReaching an agreement to strengthen its network position through an
    alliance and investment in Virgin Atlantic which will give Delta increased
    presence at London-Heathrow; and
  oExtending Delta's involvement in the community, as more than 1,800 Delta
    employees volunteered to work with Habitat for Humanity International to
    build homes to serve 12 families in six different locations in 2012.
    Since the beginning of the Habitat for Humanity partnership, Delta
    employees have built more than 100 homes.

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

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

Delta recorded special items totaling a $46 million gain in the December 2011
quarter, including:

  oa $164 million mark to market gain primarily for open fuel hedges settling
    in future periods;
  oa $43 million gain associated with the divestiture of slots at New
    York-LaGuardia and Washington-Reagan National;
  oan $81 million charge for impairment of intangible assets and grounded
    aircraft associated with Delta's capacity reductions; and
  oan $80 million charge for severance and other items, including loss on
    early extinguishment of debt.

March 2013 Quarter Guidance
Following are Delta's projections for the March 2013 quarter.

                                                 1Q 2013 Forecast
Operating margin                                 2.5 – 4.5%
Fuel price, including taxes, settled hedges and  $3.15 - $3.20
refinery impact
Capital expenditures                             $500 - $600 million
                                                 1Q 2013 Forecast (compared to
                                                 1Q 2012)
Consolidated unit revenues                       Up 4 – 6%
Consolidated unit costs – excluding fuel expense Up 6 – 8%
and profit sharing
System capacity                                  Down 2 – 4%
 Domestic                                    Down 1 – 3%
 International                               Down 3 – 5%

Other Matters
Included with this press release are Delta's unaudited Consolidated Statements
of Operations for the three and twelve months ended Dec. 31, 2012 and 2011; a
statistical summary for those periods; selected balance sheet data as of Dec.
31, 2012 and 2011; and a reconciliation of non-GAAP financial measures.

About Delta
Delta Air Lines serves more than 160 million customers each year. During the
past year, Delta won 33 airline industry awards sweeping the major corporate
travel surveys including Business Travel News, Travel Weekly, TravelAge West,
Recommend Magazine and The Beat. Delta was also a recipient of the Secretary
of Defense Freedom Award for exceptional support of National Guard and Reserve
employees. With an industry-leading global network, Delta and the Delta
Connection carriers offer service to nearly 318 destinations in 59 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.

End Notes
(1) Note A to the attached Consolidated Statements of Operations provides a
reconciliation of non-GAAP financial measures used in this release and
provides the reasons management uses those measures.

(2) 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.

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; the effects of
terrorist attacks; and risks related to the operation of a refinery. 

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 and our Quarterly Report
on Form 10-Q for the quarterly period ended September 30, 2012. Caution
should be taken not to place undue reliance on our forward-looking statements,
which represent our views only as of January 22, 2013, and which we have no
current intention to update.

DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)


                 Three Months Ended Dec. 31,        Year Ended Dec. 31,
(in millions,                               %                                    %
except per share 2012     2011     $ Change Change  2012      2011      $ Change Change
data)
Operating
Revenue:
Passenger:
Mainline         $ 5,914  $ 5,657  $ 257    5    %  $ 25,237  $ 23,843  $ 1,394  6    %
Regional         1,524    1,566    (42)     (3)  %  6,570     6,414     156      2    %
carriers
Total passenger  7,438    7,223    215      3    %  31,807    30,257    1,550    5    %
revenue
Cargo            241      256      (15)     (6)  %  990       1,027     (37)     (4)  %
Other            923      920      3        -    %  3,873     3,831     42       1    %
Total operating  8,602    8,399    203      2    %  36,670    35,115    1,555    4    %
revenue
Operating
Expense:
Aircraft fuel
and related      2,390    2,020    370      18   %  10,150    9,730     420      4    %
taxes
Salaries and     1,828    1,711    117      7    %  7,266     6,894     372      5    %
related costs
Contract carrier 1,409    1,328    81       6    %  5,647     5,470     177      3    %
arrangements^(1)
Aircraft
maintenance      353      367      (14)     (4)  %  1,955     1,765     190      11   %
materials and
outside repairs
Passenger
commissions and  377      393      (16)     (4)  %  1,590     1,682     (92)     (5)  %
other selling
expenses
Contracted       389      383      6        2    %  1,566     1,642     (76)     (5)  %
services
Depreciation and 399      382      17       4    %  1,565     1,523     42       3    %
amortization
Landing fees and 324      306      18       6    %  1,336     1,281     55       4    %
other rents
Passenger        173      169      4        2    %  732       721       11       2    %
service
Profit sharing   63       89       (26)     (29) %  372       264       108      41   %
Aircraft rent    64       74       (10)     (14) %  272       298       (26)     (9)  %
Restructuring    122      88       34       39   %  452       242       210      87   %
and other items
Other            359      363      (4)      (1)  %  1,592     1,628     (36)     (2)  %
Total operating  8,250    7,673    577      8    %  34,495    33,140    1,355    4    %
expense
Operating Income 352      726      (374)    (52) %  2,175     1,975     200      10   %
Other (Expense)
Income:
Interest         (189)    (218)    29       (13) %  (812)     (901)     89       (10) %
expense, net
Amortization of
debt discount,   (45)     (52)     7        (13) %  (193)     (193)     -        -    %
net
Loss on
extinguishment   (106)    (30)     (76)     NM      (118)     (68)      (50)     (74) %
of debt
Miscellaneous,   (2)      (9)      7        (78) %  (27)      (44)      17       (39) %
net
Total other      (342)    (309)    (33)     (11) %  (1,150)   (1,206)   56       (5)  %
expense, net
Income Before    10       417      (407)    (98) %  1,025     769       256      33   %
Income Taxes
Income Tax
(Provision)      (3)      8        (11)     NM      (16)      85        (101)    NM
Benefit
Net Income       $ 7      $ 425    $ (418)  (98) %  $ 1,009   $ 854     $ 155    18   %
Basic Earnings   $ 0.01   $ 0.51                    $ 1.20    $ 1.02
Per Share
Diluted Earnings $ 0.01   $ 0.50                    $ 1.19    $ 1.01
Per Share
Basic Weighted
Average Shares   846      840                       845       838
Outstanding
Diluted Weighted
Average Shares   852      845                       850       844
Outstanding



^(1) Contract carrier arrangements expense includes $514 million and $494
million for the three months ended Dec. 31, 2012 and 2011, respectively, and
$2.1 billion for each of the years ended Dec. 31, 2012 and 2011 for aircraft
fuel and related taxes.

DELTA AIR LINES, INC.
Selected Balance Sheet Data


(in millions)                                             Dec.31,    Dec. 31,
                                                          2012        2011
                                                          (Unaudited)
Cash and cash equivalents                                 $   2,416   $ 2,657
Short-term investments                                    958         958
Restricted cash, cash equivalents and short-term          384         305
investments
Total assets                                              44,559      43,499
Total debt and capital leases, including current          12,709      13,791
maturities
Total stockholders' deficit                               (2,131)     (1,396)

DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)


                      Three Months Ended Dec. 31,  Year Ended Dec. 31,
                      2012       2011     Change   2012      2011      Change
Consolidated:
Revenue passenger     45,275     44,975   1     %  192,974   192,767   --    %
miles (millions)
Available seat miles  54,342     55,034   (1)   %  230,415   234,656   (2)   %
(millions)
Passenger mile yield  16.43      16.06    2     %  16.48     15.70     5     %
(cents)
Passenger revenue per
available seat mile   13.69      13.12    4     %  13.80     12.89     7     %
(cents)
Operating cost per
available seat mile   15.18      13.94    9     %  14.97     14.12     6     %
(cents)
CASM-Ex - see Note A  9.17       8.67     6     %  8.92      8.53      5     %
(cents)
Passenger load factor 83.3     % 81.7   % 1.6 pts  83.8    % 82.1    % 1.7 pts
Fuel gallons consumed 894        901      (1)   %  3,769     3,856     (2)   %
(millions)
Average price per
fuel gallon, adjusted $  3.24    $ 2.97   9     %  $  3.26   $  3.05   7     %
- see Note A
Number of aircraft in 717        775      (58)
fleet, end of period
Full-time equivalent
employees, end of     73,561     78,392   (6)   %
period
Mainline:
Revenue passenger     39,824     39,035   2     %  169,584   168,282   1     %
miles (millions)
Available seat miles  47,431     47,483   --    %  200,872   203,450   (1)   %
(millions)
Operating cost per
available seat mile   14.16      12.71    11    %  13.88     12.98     7     %
(cents)
CASM-Ex - see Note A  8.45       7.90     7     %  8.19      7.76      6     %
(cents)
Fuel gallons consumed 734        727      1     %  3,082     3,133     (2)   %
(millions)
Average price per
fuel gallon, adjusted $  3.24    $ 2.92   11    %  $  3.25   $  3.01   8     %
- see Note A
Number of aircraft in 717        707      10
fleet, end of period

Note: except for full-time equivalent employees and number of aircraft in
fleet, consolidated data presented includes operations under Delta's contract
carrier arrangements.



Note A: The following tables show reconciliations of non-GAAP financial
measures. The reasons Delta uses these measures are described below.

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 to the most directly comparable GAAP financial measures.

Forward Looking Projections. Delta is unable to reconcile certain
forward-looking projections to GAAP as the nature or amount of special items
cannot be estimated at this time.

Special Items. Delta excludes special items because management believes the
exclusion of these items is helpful to investors to evaluate the company's
recurring core operational performance in the period shown. Therefore, we
adjust for these amounts to arrive at more meaningful financial measures.
Special items excluded in the table below are:

(a) Mark-to-market adjustments for fuel hedges recorded in periods other than
the settlement period ("MTM adjustments"). We exclude MTM adjustments, which
are based on market prices at the end of the reporting period and certain
assumptions, as they are not necessarily indicative of the actual future value
of the underlying hedge in the contract settlement period.

(b) Restructuring and other items.

(c) Loss on extinguishment of debt.



                                 Three Months Ended
                                 December 31, 2012
(in millions, except per share)  GAAP    (a) (b)   (c)   Non- GAAP
Consolidated Statement of Operations (Unaudited):
Net income                       $ 7     3   122   106   $  238
Net income per diluted share     $ 0.01  —   0.14  0.13  $  0.28

                                                                            Non-GAAP
           Year Ended December 31, 2012       Year Ended December 31, 2011  Change
(in        GAAP     (a)   (b)  (c)  Non-      GAAP   (a) (b)  (c) Non-GAAP  $
millions)                           GAAP
Consolidated Statement of
Operations (Unaudited):
Net        $ 1,009  (27)  452  118  $ 1,552   $ 854  26  242  68  $ 1,190   $362
income

The tables below show the impact of the refinery and hedging on fuel expense
and average price per fuel gallon:

Consolidated
                                                      Average Price Per Gallon
                         Three Months Ended December  Three Months Ended
                         31,                          December 31,
(in millions, except per 2012          2011           2012         2011
gallon data)
                         $       $        $       $     
Fuel purchase cost           2,882     2,830              
                                                      3.22         3.14
Refinery impact          63            -              0.07         -
Fuel hedge (gains)       (40)          (317)          (0.05)       (0.35)
losses
                         $       $        $       $     
Total fuel expense           2,905     2,513              
                                                      3.24         2.79
MTM adjustments          (3)           164            -            0.18
Total fuel expense,      $       $        $       $     
adjusted                     2,902     2,677              
                                                      3.24         2.97
                                                      Average Price Per Gallon
                         Year Ended December 31,      Year Ended December 31,
(in millions, except per 2012          2011           2012         2011
gallon data)
                         $       $        $       $     
Fuel purchase cost          12,122     12,203               
                                                      3.23         3.17
Refinery impact          63            -              0.01         -
Fuel hedge (gains)       66            (420)          0.01         (0.11)
losses
                         $       $        $       $     
Total fuel expense          12,251     11,783               
                                                      3.25         3.06
MTM adjustments          27            (26)           0.01         (0.01)
Total fuel expense,      $       $        $       $     
adjusted                    12,278     11,757               
                                                      3.26         3.05
Mainline
                         Three Months Ended December  Year Ended December 31,
                         31,
                         2012          2011           2012         2011
Mainline average price   $       $        $       $     
per fuel gallon                                         
                         3.24          2.69           3.24         3.02
MTM adjustments          -             0.23           0.01         (0.01)
Mainline average price   $       $        $       $     
per fuel gallon,                                        
adjusted                 3.24          2.92           3.25         3.01

Cost Per Available Seat Mile or Unit Cost ("CASM"): In addition to the special
items described above, we exclude the following items from consolidated and
mainline CASM to determine CASM-Ex:

  oAircraft fuel and related taxes. The volatility in fuel prices impacts the
    comparability of year-over-year financial performance. Management believes
    the exclusion of aircraft fuel and related taxes (including contract
    carriers under capacity purchase arrangements) allows investors to better
    understand and analyze our non-fuel costs and our year-over-year financial
    performance.
  oAncillary businesses. Ancillary businesses are not related to the
    generation of a seat mile. These businesses include aircraft maintenance
    and staffing services we provide to third parties and our vacation
    wholesale operations.
  oProfit sharing. Management believes the exclusion of this item provides a
    more meaningful comparison of our results to the airline industry and our
    prior year results.



Consolidated CASM-Ex:     Three Months Ended December  Year Ended December 31,
                          31,
                          2012          2011           2012        2011
CASM (cents)              15.18         13.94          14.97       14.12
Items excluded:
Aircraft fuel and related (5.33)        (4.86)         (5.32)      (5.00)
taxes
Ancillary businesses      (0.33)        (0.39)         (0.38)      (0.37)
Profit sharing            (0.12)        (0.16)         (0.16)      (0.11)
Restructuring and other   (0.23)        (0.16)         (0.20)      (0.10)
items
MTM adjustments           —             0.30           0.01        (0.01)
CASM-Ex                   9.17          8.67           8.92        8.53



Mainline CASM-Ex:         Three Months Ended December  Year Ended December 31,
                          31,
                          2012          2011           2012        2011
Mainline CASM (cents)     14.16         12.71          13.88       12.98
Items excluded:
Aircraft fuel and related (5.02)        (4.47)         (4.99)      (4.63)
taxes
Ancillary businesses      (0.32)        (0.40)         (0.39)      (0.37)
Profit sharing            (0.13)        (0.19)         (0.19)      (0.13)
Restructuring and other   (0.23)        (0.10)         (0.13)      (0.08)
items
MTM adjustments           (0.01)        0.35           0.01        (0.01)
Mainline CASM-Ex          8.45          7.90           8.19        7.76



Adjusted Net Debt: Delta uses adjusted total debt, including aircraft rent, in
addition to long-term adjusted debt and capital leases, to present estimated
financial obligations. Delta reduces adjusted total debt by cash, cash
equivalents, and short-term investments, resulting in adjusted net debt to
present the amount of additional assets needed to satisfy the debt.



(in billions)                             December 31, 2012  December 31, 2009
Debt and capital lease obligations        $  12.7            $  17.2
Plus: unamortized discount, net from
purchase accounting and fresh start       0.5                1.1
reporting
Adjusted debt and capital lease                     13.2               18.3
obligations
Plus: 7x last twelve months' aircraft               1.9                3.4
rent
Adjusted total debt                                 15.1               21.7
Less: cash, cash equivalents and                    (3.4)              (4.7)
short-term investments
Adjusted net debt                                   $ 11.7             $ 17.0

Net Cash Provided by Operations, adjusted or "Operating Cash Flow": Delta
presents net cash provided by operating activities because management believes
adjusting for certain items is helpful to investors to evaluate the company's
operating activities.



                                          Three Months Ended
(in millions)                             December31, 2012
Net cash provided by operations           $     550
Adjustment:
Other                                     36
Net cash provided by operations, adjusted $     586

Net Debt Maturities: Delta presents net debt payments because management
believes this metric is helpful to investors to evaluate the company's
debt-related activities.



                                                            Three Months Ended
(in millions)                                               December 31, 2012
Payments on long-term debt and capital leases               $     1,453
Issuance of long-term debt and capital leases               (1,520)
Adjustment:
SkyMiles used pursuant to advance purchase under AMEX       83
agreement
Net debt payments                                           $     17



Capital Expenditures, Net: Delta presents net capital expenditures because
management believes this metric is helpful to investors to evaluate the
company's investing activities.



                                                           Three Months Ended
(in millions)                                              December31, 2012
Flight equipment, including advance payments (GAAP)        $     311
Ground property and equipment, including technology (GAAP) 227
Adjustment:
Proceeds from sales of assets                              61
Capital expenditures, net                                  $     599



Free Cash Flow: Delta presents free cash flow because management believes this
metric is helpful to investors to evaluate the company's ability to generate
cash.

                                                             Three Years Ended
(in billions)                                                December 31, 2012
Net cash provided by operating activities (GAAP)             $     8.1
Net cash used in investing activities (GAAP)                 (5.5)
Adjustments:
Proceeds from sale of property and investments and other     (0.8)
Purchase of short-term investments                           1.8
SkyMiles used pursuant to advance purchase under AMEX        0.3
agreement
Total free cash flow                                         $     3.9

SOURCE Delta Air Lines

Website: http://www.delta.com
Contact: Investor Relations, +1-404-715-2170, Corporate Communications,
+1-404-715-2554, media@delta.com