EXHIBIT 99.3
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
FOR THE YEAR ENDED DECEMBER 31, 2001
The Operating Expenses section on page 16, and the Operating Income (Loss) and
Operating Margin section on Page 17, of Management's Discussion and Analysis
included in our 2002 Annual Report to Shareowners (which is incorporated by
reference into our 2002 Form 10-K) discuss the following non-GAAP financial
measures for the year ended December 31, 2001:
OPERATING OPERATING
EXPENSES CASM LOSS OPERATING
($M) (cents) ($M) MARGIN
---------- ---------- ----------- ----------
GAAP $ 15,481 10.47 $ (1,602) -11.5%
Items excluded:
Asset writedowns, restructuring and related items:
Severance costs (566) (0.38) 566 4.1%
Asset writedowns (363) (0.25) 363 2.6%
Surplus pilots/grounded aircraft (30) (0.02) 30 0.2%
2001 closure of leased facilities (7) (0.01) 7 0.1%
Discontinued capital projects and contracts (144) (0.10) 144 1.0%
Other (9) -- 9 --
Stabilization Act compensation 634 0.43 (634) -4.6%
---------- ---------- ---------- ----------
Non-GAAP $ 14,996 10.14 $ (1,117) -8.1%
========== ========== ========== ==========
FUEL PRICE NEUTRALIZED CASM:(1)
(in millions, except where noted)
- ---------------------------------
Operating expenses $ 15,481
Less fuel expense (1,817)
Plus Delta's fuel gallons consumed in 2001
multiplied by Delta's average fuel price
per gallon in 2000(2) 1,785
----------
Fuel price neutralized operating expenses $ 15,449
Available seat miles 147,837
Fuel price neutralized CASM (cents) 10.45
==========
vs. 2000 CASM (cents) 9.75
==========
Change 7.2%
==========
FUEL PRICE NEUTRALIZED CASM - EXCLUDING:
(in cents, except where noted)
- ----------------------------------------
Fuel price neutralized CASM 10.45
Items excluded:
Severance costs (0.38)
Asset writedowns (0.25)
Surplus pilots/grounded aircraft (0.02)
2001 closure of leased facilities (0.01)
Discontinued capital projects and contracts (0.10)
Stabilization Act compensation 0.43
----------
Fuel price neutralized CASM - excluding 10.12
==========
vs. 2000 CASM - excluding 9.68
==========
Change 4.6%
==========
(1) Operating cost per available seat mile (CASM), adjusting average fuel price
per gallon for 2001 to equal the average fuel price per gallon for 2000.
(2) 2,649 million gallons x 67.38 cents/gallon