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DELTA AIR LINES REPORTS MARCH 1993 QUARTER RESULTS

 ATLANTA, April 22 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) reported an unaudited net loss of $133,949,000 and an operating loss of $178,548,000 for the quarter ended March 31, 1993.
 The March 1993 quarter results include a pretax restructuring charge of $82.5 million related to the company's fleet simplification efforts. Primary and fully diluted loss after preferred stock dividend requirements was $3.18 per common share. In the March 1992 quarter, the company recorded a net loss of $151,628,000 ($3.16 primary and fully diluted loss per common share after preferred stock dividend requirements) and an operating loss of $199,284,000.
 Excluding the restructuring charge, Delta's net loss totaled $81,677,000 ($2.13 primary and fully diluted loss per common share after preferred stock dividend requirements), and the loss from operations was $96,048,000.
 For the nine months ended March 31, 1993, Delta's unaudited net loss was $366,993,000 ($8.87 primary and fully diluted loss per common share after preferred stock dividend requirements) and the loss from operations was $535,935,000, compared to a net loss of $326,164,000 ($6.88 primary and fully diluted loss per common share after preferred stock dividend requirements) and a loss from operations of $409,460,000 in the nine months ended March 31, 1992.
 Thomas J. Roeck, Jr., senior vice president - finance and chief financial officer, told the Board of Directors at its regular meeting held here today that the results for the March 1993 quarter, while disappointing, reflect continuing improvements in unit revenues and unit costs.
 "Load factor growth and a recovery in the passenger mile yield from low levels in 1992, primarily in domestic markets, resulted in a 3 percent improvement in unit revenues (as measured by total revenue per available seat mile) in the March 1993 quarter. At the same time, expense reduction efforts throughout the company contributed to a 1 percent decrease in operating cost per available seat mile excluding fuel and restructuring expenses, in spite of lower than planned capacity due to adverse weather conditions in March," he stated.
 Roeck added that the company continues to make progress in its Profit Improvement Program, staffing reductions, and other cost cutting goals. "We anticipate that the steps we have taken to reduce Delta's operating expenses will continue to produce positive results," he noted.
 Operating revenues for the March 1993 quarter totaled $2.927 billion, an increase of 4 percent from the March 1992 quarter. Passenger revenue grew 3 percent to $2.709 billion, as revenue passenger miles increased 5 percent to 18.280 billion and the passenger mile yield decreased 2 percent to 14.82 cents. Cargo revenue was up 14 percent to $168.4 million, due to 10 percent growth in cargo ton miles and a 4 percent increase in the ton mile yield. All other revenues totaled $49.2 million. Revenue per available seat mile was up 3 percent to 9.23 cents.
 Total operating expenses in the March 1993 quarter were $3.105 billion, compared to $3.014 billion in the March 1992 quarter. Excluding the $82.5 million fleet restructuring charge, operating expenses increased 0.3 percent from the previous year. Operating capacity grew 0.8 percent to 31.693 billion available seat miles. The average cost per available seat mile, including the restructuring charge, increased 2 percent to 9.80 cents. Excluding the restructuring charge, the average cost per available seat mile declined 1 percent to 9.54 cents.
 Salaries and related costs decreased 1 percent in the March 1993 quarter, reflecting a 6 percent reduction in the average level of employment, a 5 percent pay cut implemented Feb. 1, 1993, for domestic non-contract personnel and lower travel expenses, partly offset by increases in certain payroll overhead expenses. Aircraft fuel expense increased 4 percent, as fuel consumption declined 1 percent, but the average price per fuel gallon grew 5 percent to 60.68 cents.
 Aircraft maintenance materials and repairs expense declined 3 percent, primarily due to lower airframe materials and outside repairs expense. Aircraft rental expense grew 8 percent, the result of additional leased aircraft in the fleet. Facilities and other rent expense decreased 8 percent, primarily due to an out-of-period adjustment in the March 1992 quarter. Landing fees rose 7 percent, mainly reflecting rate increases throughout the system and growth in international operations. Passenger service expense decreased 9 percent, primarily the result of cost control programs implemented during the year. Passenger commissions increased 1 percent.
 Depreciation and amortization totaled $195.0 million in the March 1993 quarter, compared to $164.1 million in the March 1992 quarter.
 All other operating expenses in the March 1993 quarter declined 6 percent, primarily reflecting the impact of cost control programs as well as reductions in advertising and promotion expenses. The fleet restructuring charge of $82.5 million in the current quarter includes accrued expenses for maintenance required prior to returning 18 leased A310 aircraft to lessors, leasehold improvements on nine of the aircraft, a write-down of three owned A310-200 aircraft and certain A310 spare parts to reflect current market value, and pilot furlough payments and retraining costs.
 The passenger load factor increased to 57.68 percent in the March 1993 quarter from 55.38 percent in the March 1992 quarter, while the breakeven load factor rose to 61.48 percent from 59.57 percent. Excluding the restructuring charge, the breakeven load factor was 59.72 percent in the March 1993 quarter.
 Nonoperating expense in the March 1993 quarter totaled $27.7 million, compared to $36.0 million in the March 1992 quarter. Net interest expense increased $4.5 million to $48.9 million. The company recorded a $12.8 million gain on the disposition of flight equipment in the March 1993 quarter. All other income totaled $8.4 million.
 The $206.3 million pretax loss for the March 1993 quarter was reduced by an income tax benefit of $71.7 million and by the amortization of investment tax credits totaling $700,000. After providing $24.8 million in preferred stock dividends, the net loss to common shareholders was $158.7 million.
 For the nine months ended March 31, 1993, the company's unaudited net loss was $366,993,000 ($8.87 primary and fully diluted loss per common share after preferred stock dividend requirements), compared to a net loss of $326,164,000 ($6.88 primary and fully diluted loss per common share after preferred stock dividend requirements) in the nine months ended March 31, 1992. Operating revenues increased 11 percent to $8.865 billion, as revenue passenger miles grew 16 percent and the average passenger mile yield declined 6 percent to 13.30 cents. Operating expenses rose 12 percent to $9.401 billion, including the $82.5 million restructuring charge. Operating capacity increased 9 percent to 98.650 billion available seat miles. Delta recorded $63.1 million in gains on the disposition of flight equipment in the nine months ended March 31, 1993. Results for the nine months ended March 31, 1992, include a $4.5 million gain on the sale of flight equipment and a $50.0 million charge ($43.0 million nonoperating and $7.0 million operating expenses) related to Delta's participation in Pan Am's failed reorganization.
 The Board of Directors declared a cash dividend of five cents ($0.05) per common share and a preferred dividend of $875.00 per share of Series C Convertible Preferred stock ($0.875 per depositary share), both payable June 1, 1993, to stockholders of record on May 12, 1993.
 -0- 4/22/93
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 /CONTACT: Media: Delta public relations, 404-715-2599; Investors: Delta investor relations, 404-715-6679/
 (DAL)


CO: Delta Air Lines, Inc. ST: Georgia IN: AIR SU: ERN

BN -- AT008 -- 9382 04/22/93 11:35 EDT
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