EXHIBIT 99.1
CONTACT: | Corporate Communications |
404-715-2554 | |
Investor Relations | |
404-715-6679 |
Delta Air Lines Reports Results for June 2005 Quarter
ATLANTA, July 21, 2005 – Delta Air Lines (NYSE: DAL) today reported results for the quarter ended June 30, 2005. Key points include:
• | Delta’s second quarter net loss was $382 million, or $2.64 per share |
• | Excluding special items, the second quarter net loss was $304 million, or $2.11 per share |
• | Mainline unit costs decreased 3.9 percent compared to the June 2004 quarter; excluding fuel expense and special items, mainline unit costs decreased 14.3 percent compared to the prior year quarter1,2 |
• | Delta’s second quarter operating loss was $129 million, including a $385 million year-over-year increase in fuel expense |
Delta reported a net loss for the June 2005 quarter of $382 million, or $2.64 per share, compared to a net loss of $2.0 billion, or $15.79 per share, in the prior year quarter. Excluding the special items described below, the June 2005 quarter net loss was $304 million, or $2.11 per share, compared to a net loss of $312 million, or $2.55 per share, in the prior year quarter.2
Delta’s operating loss for the June 2005 quarter was $129 million. Excluding the special items described below, the operating loss for the June 2005 quarter was $33 million. Both figures include a $385 million increase in fuel expense over the prior year quarter.
“Delta’s second quarter results reflect both the solid progress we are making in implementation of our transformation plan, and the substantial challenges we are facing,” said Gerald Grinstein, Delta’s chief executive officer. “As part of our companywide focus on reducing costs and increasing revenue, we have pursued a wide range of initiatives, including fuel conservation measures, debt-for-equity exchanges, implementation of a new revenue management system, surcharges on many of our trans-Atlantic flights and additional significant fare initiatives, among many others. Improvements in unit costs, passenger revenue and revenue per available seat mile are proof that these efforts are working.
“At the same time, however, record-high fuel prices and other factors out of our control during the quarter outpaced our transformation initiatives and masked our progress. Our management team recognizes that further change is essential – and it must be implemented with even greater speed – if we are to achieve our goals in the increasingly competitive aviation marketplace. I am confident everyone at Delta will rise to the challenge as we strive to improve our competitive and financial positions, while continuing to provide the travel experience our customers expect,” Grinstein concluded.
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Due to sharply higher fuel costs, operating expenses for the June 2005 quarter increased 2.7 percent from the prior year quarter, although consolidated system unit costs decreased 2.0 percent and mainline unit costs decreased 3.9 percent compared to the prior year period.
Excluding the special items described below, operating expenses for the June 2005 quarter increased 3.3 percent from the prior year period, although consolidated system unit costs decreased 1.5 percent and mainline unit costs decreased 3.2 percent as compared to the prior year period. Excluding fuel expense and the special items described below, consolidated system unit costs decreased 11.6 percent and mainline unit costs decreased 14.3 percent.
Fuel expense increased 57.5 percent, or $385 million, over the prior year period with approximately 95 percent of the increase resulting from higher fuel prices. Average fuel price per gallon for the June 2005 quarter was $1.60, a 53.3 percent increase over the prior year period. Based on Delta’s expected fuel consumption for 2005, every one cent increase in the average annual cost per gallon of jet fuel results in approximately $25 million in additional mainline fuel expense per year.
Guidance on capacity, unit costs and other items is provided below.
Liquidity and Financial Transactions
During the June 2005 quarter, two financial covenants under Delta’s financing agreements with General Electric Capital Corporation and American Express were amended. The changes:
• | lowered the level of EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent, as defined) that Delta must achieve for certain specified periods; and | |
• | increased the unrestricted funds Delta is required to maintain to not less than $1 billion until December 2007. | |
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During the quarter, Delta also completed the sale of one MD-11 aircraft, resulting in proceeds of $26 million.
In addition, Delta deferred delivery of eight Boeing 737-800 aircraft from 2006 to 2008. As a result of these deferrals, Delta has no mainline aircraft deliveries scheduled in 2006.
Explanation of Special Items
(1) | A $96 million net charge associated with pension and related items. This net charge primarily reflects a $104 million settlement charge related to lump sum distributions to 354 pilots who retired under the company’s defined benefit pension plan for pilots (Pilot Plan). As a result of these distributions, Delta must accelerate the recognition of actuarial losses in accordance with Statement of Financial Accounting Standards No. 883; and | |
(2) | An $18 million benefit from a net reduction in Delta's required deferred income tax asset reserve. |
Transformation Plan
In late 2004, Delta announced its comprehensive transformation plan, with the goal of delivering approximately $5 billion in annual benefits by the end of 2006 (as compared to 2002) while also improving the service Delta provides to its customers. As of June 30, 2005, Delta has implemented initiatives intended to achieve approximately 85 percent of the targets of the transformation plan, and believes it is on track to deliver the full $5 billion in benefits by the end of 2006. Due largely to successful implementation of these initiatives, Delta’s operating expenses, excluding fuel, were down significantly in the June 2005 quarter, compared to the prior year period, despite an increase in capacity.
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SimpliFaresTM
2005 Guidance
Capital expenditures for the September 2005 quarter are estimated to be approximately $200 million, including approximately $60 million for aircraft. Capital expenditures for 2005 are estimated to be approximately $800 million, including approximately $360 million for aircraft. Delta has agreements in place for the financing of its regional jet aircraft deliveries in 2005. The final mainline aircraft delivered in 2005 was immediately sold to a third party upon delivery from the manufacturer in July, pursuant to a previously announced agreement.
The following table includes certain projected information for the periods presented.
Year-Over-Year Changes | ||
Q3 2005 | Full Year 2005 | |
Capacity | Up 6 to 7% | Up 5 to 6% |
Consolidated unit costs, excluding fuel expense and special items4 (vs. prior year unit costs, excluding fuel expense and special items) | Down 13 to 15% | Down 11 to 13% |
Mainline unit costs, excluding fuel expense and special items4 (vs. prior year unit costs, excluding fuel expense and special items) | Down 15 to 17% | Down 13 to 15% |
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Other Matters
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Endnotes
1 Delta presents mainline unit costs excluding fuel expense and special items because management believes (a) the record high fuel prices during the June 2005 quarter mask the progress the Company achieved toward its transformation plan targets and (b) the exclusion of the special items is helpful to investors to evaluate the Company’s recurring operational performance.
2 Note 1 to the attached Consolidated Statements of Operations shows a reconciliation of Delta’s net loss reported under accounting principles generally accepted in the United States (GAAP) to the net loss excluding special items, as well as reconciliations of other financial measures including and excluding special items.
3 Statement of Financial Accounting Standards No. 88, “Employers’ Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits.”
4 Delta is unable to reconcile this financial measure to unit costs under GAAP for the future periods presented because Delta cannot project in the future periods presented (1) the special items that may occur or (2) fuel costs due to the current volatility in the market.
Statements in this news release that are not historical facts, including statements regarding Delta’s estimates, beliefs, expectations, intentions, strategies or projections, 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, beliefs, expectations, intentions, strategies and projections reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to reduce operating expenses, our ability to meet our liquidity needs, our ability to renew or replace our existing Visa/MasterCard processing contract, our ability to comply with financial covenants in our loan agreements, our debt and pension plan funding obligations, pilot early retirements, the cost of aircraft fuel, the effect of credit ratings downgrades, interruptions or disruptions in service at one of our hub airports, our increasing dependence on technology in our operations, labor issues, restructurings by competitors, the effects of terrorist attacks and competitive conditions in the airline industry. Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in Delta’s Securities and Exchange Commission filings, including its Form 10-Q, filed with the Commission on May 10, 2005. Caution should be taken not to place undue reliance on Delta’s forward-looking statements, which represent Delta’s views only as of July 21, 2005, and which Delta has no current intention to update.
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DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended June 30, | ||||||||
2005 | 2004 | Percent Change | ||||||
(in millions, except share data) | ||||||||
OPERATING REVENUES: | ||||||||
Passenger: | ||||||||
Mainline | $ | 3,045 | $ | 2,895 | 5.2 | % | ||
Regional Affiliates | 830 | 761 | 9.1 | % | ||||
Cargo | 127 | 125 | 1.6 | % | ||||
Other, net | 183 | 180 | 1.7 | % | ||||
Total operating revenues | 4,185 | 3,961 | 5.7 | % | ||||
OPERATING EXPENSES: | ||||||||
Salaries and related costs | 1,298 | 1,584 | -18.1 | % | ||||
Aircraft fuel | 1,054 | 669 | 57.5 | % | ||||
Depreciation and amortization | 326 | 311 | 4.8 | % | ||||
Contracted services | 270 | 249 | 8.4 | % | ||||
Contract carrier arrangements | 211 | 237 | -11.0 | % | ||||
Landing fees and other rents | 227 | 220 | 3.2 | % | ||||
Aircraft maintenance materials and outside repairs | 206 | 164 | 25.6 | % | ||||
Aircraft rent | 151 | 182 | -17.0 | % | ||||
Passenger commissions and other selling expenses | 186 | 203 | -8.4 | % | ||||
Passenger service | 95 | 85 | 11.8 | % | ||||
Pension settlements, restructuring and related items, net | 96 | 117 | -17.9 | % | ||||
Other | 194 | 181 | 7.2 | % | ||||
Total operating expenses | 4,314 | 4,202 | 2.7 | % | ||||
OPERATING LOSS | (129 | ) | (241 | ) | 46.5 | % | ||
OTHER INCOME (EXPENSE): | ||||||||
Interest expense | (288 | ) | (197 | ) | -46.2 | % | ||
Interest income | 14 | 8 | 75.0 | % | ||||
Fair value adjustments of SFAS 133 derivatives | 3 | 5 | -40.0 | % | ||||
Miscellaneous expense, net | — | (4 | ) | 100.0 | % | |||
Total other expense, net | (271 | ) | (188 | ) | -44.1 | % | ||
LOSS BEFORE INCOME TAXES | (400 | ) | (429 | ) | 6.8 | % | ||
INCOME TAX BENEFIT (PROVISION) | 18 | (1,534 | ) | 101.2 | % | |||
NET LOSS | (382 | ) | (1,963 | ) | 80.5 | % | ||
PREFERRED STOCK DIVIDENDS | (6 | ) | (5 | ) | -20.0 | % | ||
NET LOSS ATTRIBUTABLE TO COMMON | ||||||||
SHAREOWNERS | $ | (388 | ) | $ | (1,968 | ) | 80.3 | % |
BASIC AND DILUTED LOSS PER SHARE | $ | (2.64 | ) | $ | (15.79 | ) | 83.3 | % |
NET LOSS EXCLUDING SPECIAL ITEMS - see Note 1 | $ | (304 | ) | $ | (312 | ) | 2.6 | % |
BASIC AND DILUTED LOSS PER SHARE | ||||||||
EXCLUDING SPECIAL ITEMS - see Note 1 | $ | (2.11 | ) | $ | (2.55 | ) | 17.3 | % |
WEIGHTED AVERAGE SHARES USED IN BASIC AND DILUTED | ||||||||
LOSS PER SHARE COMPUTATION: | 146,820,375 | 124,690,747 | 17.7 | % | ||||
OPERATING MARGIN | -3.1 | % | -6.1 | % | 3.0 | pts | ||
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DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)
Six Months Ended | ||||||||
June 30, | ||||||||
Percent | ||||||||
2005 | 2004 | Change | ||||||
(in millions, except share data) | ||||||||
OPERATING REVENUES: | ||||||||
Passenger: | ||||||||
Mainline | $ | 5,694 | $ | 5,455 | 4.4 | % | ||
Regional Affiliates | 1,520 | 1,442 | 5.4 | % | ||||
Cargo | 259 | 247 | 4.9 | % | ||||
Other, net | 359 | 346 | 3.8 | % | ||||
Total operating revenues | 7,832 | 7,490 | 4.6 | % | ||||
OPERATING EXPENSES: | ||||||||
Salaries and related costs | 2,709 | 3,193 | -15.2 | % | ||||
Aircraft fuel | 1,938 | 1,243 | 55.9 | % | ||||
Depreciation and amortization | 639 | 618 | 3.4 | % | ||||
Contracted services | 542 | 490 | 10.6 | % | ||||
Contract carrier arrangements | 415 | 474 | -12.4 | % | ||||
Landing fees and other rents | 442 | 437 | 1.1 | % | ||||
Aircraft maintenance materials and outside repairs | 383 | 321 | 19.3 | % | ||||
Aircraft rent | 294 | 363 | -19.0 | % | ||||
Passenger commissions and other selling expenses | 378 | 376 | 0.5 | % | ||||
Passenger service | 179 | 163 | 9.8 | % | ||||
Pension settlements, asset writedowns, restructuring and related items, net | 627 | 117 | NM | |||||
Other | 372 | 324 | 14.8 | % | ||||
Total operating expenses | 8,918 | 8,119 | 9.8 | % | ||||
OPERATING LOSS | (1,086 | ) | (629 | ) | -72.7 | % | ||
OTHER INCOME (EXPENSE): | ||||||||
Interest expense | (556 | ) | (391 | ) | -42.2 | % | ||
Interest income | 28 | 21 | 33.3 | % | ||||
Fair value adjustments of SFAS 133 derivatives | 1 | (18 | ) | 105.6 | % | |||
Miscellaneous expense, net | (2 | ) | (10 | ) | 80.0 | % | ||
Total other expense, net | (529 | ) | (398 | ) | -32.9 | % | ||
LOSS BEFORE INCOME TAXES | (1,615 | ) | (1,027 | ) | -57.3 | % | ||
INCOME TAX BENEFIT (PROVISION) | 162 | (1,319 | ) | -112.3 | % | |||
NET LOSS | (1,453 | ) | (2,346 | ) | 38.1 | % | ||
PREFERRED STOCK DIVIDENDS | (11 | ) | (9 | ) | -22.2 | % | ||
NET LOSS AVAILABLE TO COMMON | ||||||||
SHAREOWNERS | $ | (1,464 | ) | $ | (2,355 | ) | 37.8 | % |
BASIC AND DILUTED LOSS PER SHARE | $ | (10.17 | ) | $ | (18.95 | ) | 46.3 | % |
NET LOSS EXCLUDING SPECIAL ITEMS - see Note 1 | $ | (988 | ) | $ | (910 | ) | -8.6 | % |
BASIC AND DILUTED LOSS PER SHARE | ||||||||
EXCLUDING SPECIAL ITEMS - see Note 1 | $ | (6.94 | ) | $ | (7.39 | ) | 6.1 | % |
WEIGHTED AVERAGE SHARES USED IN BASIC AND DILUTED | ||||||||
LOSS PER SHARE COMPUTATION: | 143,888,479 | 124,284,915 | 15.8 | % | ||||
OPERATING MARGIN | -13.9 | % | -8.4 | % | -5.5 | pts | ||
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DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
Three Months Ended | ||||||||
June 30, | ||||||||
Percent | ||||||||
2005 | 2004 | Change | ||||||
Consolidated: | ||||||||
Revenue Passenger Miles (millions) 1 | 31,664 | 29,584 | 7.0 | % | ||||
Available Seat Miles (millions) 1 | 40,475 | 38,620 | 4.8 | % | ||||
Passenger Mile Yield 1 | 12.24 | ¢ | 12.36 | ¢ | -1.0 | % | ||
Operating Revenue Per Available Seat Mile 1 | 10.34 | ¢ | 10.26 | ¢ | 0.8 | % | ||
Passenger Revenue Per Available Seat Mile 1 | 9.58 | ¢ | 9.47 | ¢ | 1.2 | % | ||
Operating Cost Per Available Seat Mile 1 | 10.66 | ¢ | 10.88 | ¢ | -2.0 | % | ||
Operating Cost Per Available Seat Mile - excluding special items - see Note 1 1 | 10.42 | ¢ | 10.58 | ¢ | -1.5 | % | ||
Operating Costs Per Available Seat Mile - excluding fuel expense and special items - see Note 1 1 | 7.82 | ¢ | 8.85 | ¢ | -11.6 | % | ||
Passenger Load Factor 1 | 78.23 | % | 76.60 | % | 1.6 | pts | ||
Breakeven Passenger Load Factor 1 | 80.84 | % | 81.66 | % | (0.8 | ) | pts | |
Breakeven Passenger Load Factor - excluding special items - see Note 11 | 78.91 | % | 79.21 | % | (0.3 | ) | pts | |
Passengers Enplaned (thousands) 1 | 31,582 | 30,833 | 2.4 | % | ||||
Fuel Gallons Consumed (millions) | 657 | 639 | 2.8 | % | ||||
Average Price Per Fuel Gallon, net of hedging gains | 160.24 | ¢ | 104.53 | ¢ | 53.3 | % | ||
Number of Aircraft in Fleet, End of Period | 869 | 842 | 3.2 | % | ||||
Full-Time Equivalent Employees, End of Period | 65,300 | 70,300 | -7.1 | % | ||||
Mainline: | ||||||||
Revenue Passenger Miles (millions) | 27,497 | 25,714 | 6.9 | % | ||||
Available Seat Miles (millions) | 34,698 | 33,198 | 4.5 | % | ||||
Operating Cost Per Available Seat Mile | 9.92 | ¢ | 10.32 | ¢ | -3.9 | % | ||
Operating Cost Per Available Seat Mile - excluding special items - see Note 1 | 9.65 | ¢ | 9.97 | ¢ | -3.2 | % | ||
Operating Costs Per Available Seat Mile - excluding fuel expense and special items - see Note 1 | 7.11 | ¢ | 8.30 | ¢ | -14.3 | % | ||
Number of Aircraft in Fleet, End of Period | 522 | 550 | -5.1 | % |
1 The statistics above include our contract carrier arrangements with Chautauqua Airlines, Inc., Atlantic Coast Airlines (2004 statistics only) and SkyWest Airlines, Inc. |
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DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
Six Months Ended June 30, | |||||||
Statistical Summary: | 2005 | 2004 | Percent Change | ||||
Consolidated: | |||||||
Revenue Passenger Miles (millions) 1 | 59,840 | 54,783 | 9.2 | % | |||
Available Seat Miles (millions) 1 | 78,352 | 74,369 | 5.4 | % | |||
Passenger Mile Yield 1 | 12.06 | ¢ | 12.59 | ¢ | -4.2 | % | |
Operating Revenue Per Available Seat Mile 1 | 10.00 | ¢ | 10.07 | ¢ | -0.7 | % | |
Passenger Revenue Per Available Seat Mile 1 | 9.21 | ¢ | 9.27 | ¢ | -0.6 | % | |
Operating Cost Per Available Seat Mile 1 | 11.38 | ¢ | 10.92 | ¢ | 4.2 | % | |
Operating Cost Per Available Seat Mile - excluding special items - see Note 1 1 | 10.58 | ¢ | 10.76 | ¢ | -1.7 | % | |
Operating Cost Per Available Seat Mile - excluding fuel expense and special items - see Note 1 1 | 8.11 | ¢ | 9.09 | ¢ | -10.8 | % | |
Passenger Load Factor 1 | 76.37 | % | 73.66 | % | 2.7 | pts | |
Breakeven Passenger Load Factor 1 | 87.87 | % | 80.38 | % | 7.5 | pts | |
Breakeven Passenger Load Factor - excluding special items- see Note 1 1 | 81.24 | % | 79.13 | % | 2.1 | pts | |
Passengers Enplaned (thousands) 1 | 60,812 | 58,189 | 4.5 | % | |||
Fuel Gallons Consumed (millions) | 1,281 | 1,242 | 3.1 | % | |||
Average Price Per Fuel Gallon, net of hedging gains | 151.22 | ¢ | 100.02 | ¢ | 51.2 | % | |
Number of Aircraft in Fleet, End of Period | 869 | 842 | 3.2 | % | |||
Full-Time Equivalent Employees, End of Period | 65,300 | 70,300 | -7.1 | % | |||
Mainline: | |||||||
Revenue Passenger Miles (millions) | 51,982 | 47,528 | 9.4 | % | |||
Available Seat Miles (millions) | 67,159 | 63,684 | 5.5 | % | |||
Operating Cost Per Available Seat Mile | 10.74 | ¢ | 10.35 | ¢ | 3.8 | % | |
Operating Cost Per Available Seat Mile - excluding special items- see Note 1 | 9.81 | ¢ | 10.17 | ¢ | -3.5 | % | |
Operating Cost Per Available Seat Mile - excluding fuel expense and special items - see Note 1 | 7.40 | ¢ | 8.56 | ¢ | -13.5 | % | |
Number of Aircraft in Fleet, End of Period | 522 | 550 | -5.1 | % |
1 The statistics above include our contract carrier arrangements with Chautauqua Airlines, Inc., Atlantic Coast Airlines (2004 statistics only) and SkyWest Airlines, Inc. for all periods presented. |
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DELTA AIR LINES, INC.
Selected Balance Sheet Data
June 30, | December 31, | |||||
2005 | 2004 | |||||
(Unaudited) | ||||||
(in millions) | ||||||
Cash and cash equivalents | $ | 1,341 | $ | 1,463 | ||
Short-term investments | 330 | 336 | ||||
Restricted cash, including noncurrent | 370 | 350 | ||||
Total assets | 21,561 | 21,801 | ||||
Total debt and capital leases, including current maturities | 14,082 | 13,898 | ||||
Total shareowners' deficit | (6,985 | ) | (5,796 | ) | ||
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Note 1: The following tables show reconciliations of certain financial measures adjusted for the items shown below
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
(in millions) | 2005 | 2004 | 2005 | 2004 | ||||||||
Net loss | ($382 | ) | ($1,963 | ) | ($1,453 | ) | ($2,346 | ) | ||||
Items excluded: | ||||||||||||
Pension and related charges | 96 | 117 | 617 | 117 | ||||||||
Aircraft charges | — | — | 10 | — | ||||||||
Deferred tax benefit | (18 | ) | 1,534 | (162 | ) | 1,319 | ||||||
Total items excluded | 78 | 1,651 | 465 | 1,436 | ||||||||
Net loss excluding special items | ($304 | ) | ($312 | ) | ($988 | ) | ($910 | ) | ||||
Basic and diluted loss per share | ($2.64 | ) | ($15.79 | ) | ($10.17 | ) | ($18.95 | ) | ||||
Items excluded: | ||||||||||||
Pension and related charges | 0.65 | 0.94 | 4.28 | 0.94 | ||||||||
Aircraft charges | — | — | 0.07 | — | ||||||||
Deferred tax benefit | (0.12 | ) | 12.30 | (1.12 | ) | 10.62 | ||||||
Total items excluded | 0.53 | 13.24 | 3.23 | 11.56 | ||||||||
Basic and diluted loss per share excluding special items | ($2.11 | ) | ($2.55 | ) | ($6.94 | ) | ($7.39 | ) | ||||
(in millions) | ||||||||||||
Operating expenses | $4,314 | $4,202 | $8,918 | $8,119 | ||||||||
Items excluded: | ||||||||||||
Pension and related charges | (96 | ) | (117 | ) | (617 | ) | (117 | ) | ||||
Aircraft charges | — | — | (10 | ) | — | |||||||
Total items excluded | (96 | ) | (117 | ) | (627 | ) | (117 | ) | ||||
Operating expenses excluding special items | $4,218 | $4,085 | $8,291 | $8,002 | ||||||||
(in millions) | ||||||||||||
Mainline operating expenses | $3,443 | $3,426 | $7,215 | $6,591 | ||||||||
Items excluded: | ||||||||||||
Pension and related charges | (96 | ) | (117 | ) | (617 | ) | (117 | ) | ||||
Aircraft charges | — | — | (10 | ) | — | |||||||
Total items excluded | (96 | ) | (117 | ) | (627 | ) | (117 | ) | ||||
Mainline operating expenses excluding special items | $3,347 | $3,309 | $6,588 | $6,474 | ||||||||
Fuel expense | ($881 | ) | ($555 | ) | ($1,615 | ) | ($1,025 | ) | ||||
Mainline operating expenses excluding fuel expense and special items | $2,466 | $2,754 | $4,973 | $5,449 | ||||||||
CASM | 10.66 | ¢ | 10.88 | ¢ | 11.38 | ¢ | 10.92 | ¢ | ||||
Items excluded: | ||||||||||||
Pension and related charges | (0.24 | ) | (0.30 | ) | (0.79 | ) | (0.16 | ) | ||||
Aircraft charges | — | — | (0.01 | ) | — | |||||||
Total items excluded | (0.24 | ) | (0.30 | ) | (0.80 | ) | (0.16 | ) | ||||
CASM excluding special items | 10.42 | ¢ | 10.58 | ¢ | 10.58 | ¢ | 10.76 | ¢ | ||||
Fuel expense | (2.60 | ) | (1.73 | ) | (2.47 | ) | (1.67 | ) | ||||
CASM excluding fuel expense and special items | 7.82 | ¢ | 8.85 | ¢ | 8.11 | ¢ | 9.09 | ¢ | ||||
Mainline CASM | 9.92 | ¢ | 10.32 | ¢ | 10.74 | ¢ | 10.35 | ¢ | ||||
Items excluded: | ||||||||||||
Pension and related charges | (0.27 | ) | (0.35 | ) | (0.92 | ) | (0.18 | ) | ||||
Aircraft charges | — | — | (0.01 | ) | — | |||||||
Total items excluded | (0.27 | ) | (0.35 | ) | (0.93 | ) | (0.18 | ) | ||||
Mainline CASM excluding special items | 9.65 | ¢ | 9.97 | ¢ | 9.81 | ¢ | 10.17 | ¢ | ||||
Fuel expense | (2.54 | ) | (1.67 | ) | (2.41 | ) | (1.61 | ) | ||||
Mainline CASM excluding fuel expense and special items | 7.11 | ¢ | 8.30 | ¢ | 7.40 | ¢ | 8.56 | ¢ | ||||
Breakeven load factor | 80.84 | % | 81.66 | % | 87.87 | % | 80.38 | % | ||||
Items excluded: | ||||||||||||
Pension and related charges | (1.93 | ) | (2.45 | ) | (6.52 | ) | (1.25 | ) | ||||
Aircraft charges | — | — | (0.11 | ) | — | |||||||
Total items excluded | (1.93 | ) | (2.45 | ) | (6.63 | ) | (1.25 | ) | ||||
Breakeven load factor excluding special items | 78.91 | % | 79.21 | % | 81.24 | % | 79.13 | % | ||||
(in millions) | ||||||||||||
Operating loss | ($129 | ) | ||||||||||
Items excluded: | ||||||||||||
Pension and related charges | 96 | |||||||||||
Total items excluded | 96 | |||||||||||
Operating loss excluding special items | ($33 | ) | ||||||||||
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Capital Expenditures (in millions) | Three Months Ended June 30, 2005 | ||
Cash used by investing activities - GAAP | |||
Flight equipment additions | $ | 233 | |
Ground property & equipment additions | 67 | ||
Add: | |||
Aircraft seller financing | 148 | ||
Less: | |||
Sale of aircraft during the quarter 1 | (193 | ) | |
Boston airport terminal project expenditures | (17 | ) | |
Other | (1 | ) | |
Capital expenditures | $ | 237 | |
1 In October 2003, we entered into a definitive agreement with a third party to sell 11 B-737-800 aircraft immediately after those aircraft are delivered to us by the manufacturer in 2005. During the June 2005 quarter, five B-737-800 aircraft were delivered to us and subsequently sold to a third party under this agreement. This line item represents the cost of the aircraft included in the flight equipment additions line item above. |
Note 2: June 2005 Quarter Traffic, Capacity, Load Factor, Yield and Unit Revenue vs. June 2004 Quarter
Year-Over-Year Change | ||||
North America | Atlantic | Latin America | Pacific | |
Traffic | 5.7% | 8.2% | 34.4% | 0.5% |
Capacity | 3.4% | 5.1% | 34.9% | 0.1% |
Load Factor | 1.7 pts. | 2.4 pts. | (0.2) pts. | 0.4 pts. |
Yield | (1.7%) | 3.6% | (3.7%) | 7.4% |
Passenger Unit Revenue | 0.5% | 6.6% | (4.0%) | 7.8% |