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DELTA AIR LINES REPORTS MARCH 1992 QUARTER RESULTS

 DELTA AIR LINES REPORTS MARCH 1992 QUARTER RESULTS
 ATLANTA, April 23 /PRNewswire/ -- Delta Air Lines (NYSE: DAL)


reported a net loss of $151,628,000 ($3.16 primary and fully diluted loss per share, after preferred stock dividends) for its third fiscal quarter ended March 31.
 In the March 1991 quarter, the company recorded a net loss of $84,131,000 ($2.09 primary and fully diluted loss per share, after preferred stock dividends). The loss from operations totaled $199,284,000 in the March 1992 quarter and $115,050,000 in the March 1991 quarter.
 For the nine months ended March 31, Delta's net loss totaled $326,164,000 ($6.88 primary and fully diluted loss per share, after preferred stock dividends), compared to $343,572,000 ($8.30 primary and fully diluted loss per share, after preferred stock dividends) for the nine months ended March 31, 1991.
 Thomas J. Roeck Jr., senior vice president - finance and chief financial officer, told the board of directors at its regular meeting today that the company's results for the March 1992 quarter reflect the effects of discount fare promotions, a persistently weak economy, and higher costs related to the company's growth in operations, particularly in international markets. "While passenger mile yield growth in the first half of the quarter was encouraging, a proliferation of discount fares introduced by other airlines and matched by Delta caused the yield to weaken in the last half of the quarter," he stated. "As a result, yield growth for the quarter was held to a modest level."
 Roeck indicated that the poor economy was a primary cause of relatively weak domestic traffic growth in the March 1992 quarter. "International traffic was strong, reflecting Delta's acquisition of transatlantic and intra-European routes, as well as the initiation of other new markets in the past year," he noted. "However, costs associated with the operation of these new routes resulted in a significant increase in operating expenses for the quarter."
 Operating revenues for the March 1992 quarter were $2.815 billion, up 22 percent from $2.299 billion reported in the March 1991 quarter. Passenger revenues increased 23 percent to $2.635 billion, as revenue passenger miles grew 18 percent to 17.405 billion, and the passenger mile yield rose 4 percent to 15.14 cents. Cargo revenues increased 24 percent to $148.1 million, primarily the result of 26 percent growth in cargo ton miles. All other revenues totaled $31.3 million.
 Total operating expenses in the March 1992 quarter were $3.014 billion, a 25 percent increase from the March 1991 quarter. Operating capacity grew 24 percent to 31.427 billion available seat miles, and the average cost per available seat mile rose slightly less than 1 percent to 9.59 cents.
 Salaries and related expenses increased 23 percent to $1.176 billion in the March 1992 quarter, the result of 24 percent growth in the average level of employment to 78,611, including the addition of approximately 7,800 former Pan Am personnel; growth in employee benefits and travel expenses; and a general wage increase for non-pilot personnel effective Feb. 1, 1992. Aircraft fuel expense decreased 7 percent to $350.8 million, as the average fuel cost per gallon declined 24 percent to 57.71 cents, and fuel gallons consumed rose 22 percent.
 Depreciation and amortization expense in the March 1992 quarter rose 26 percent to $164.1 million, due to an increase in owned aircraft in the fleet, additional ground equipment, and the amortization of route acquisition costs.
 All other operating expenses in the March 1992 quarter totaled $1.323 billion, an increase of 39 percent from the March 1991 quarter, reflecting the company's growth in traffic, revenue and capacity, and costs related to bringing the operation of acquired international routes up to Delta's standards. Aircraft maintenance materials and repairs expense rose 48 percent, the result of growth in operations and a high volume of overhaul and aircraft modification activity. Aircraft rental expense increased 57 percent, as 63 leased aircraft were added to the fleet in the past year.
 Facilities and other rents grew 39 percent, and landing fees rose 46 percent, both largely due to Delta's recent expansion in new international markets. Passenger service expense increased 42 percent, the result of traffic growth and increased catering costs related to a larger international operation. Travel agency commissions were up 31 percent, mainly due to strong revenue growth and a higher percentage of international traffic.
 The passenger load factor in the March 1992 quarter was 55.38 percent, compared to 58.13 percent in the March 1991 quarter, and the break-even load factor declined to 59.57 percent from 61.24 percent.
 Nonoperating expense in the March 1992 quarter increased $19.6 million to $36.0 million, partly due to a $13.1 million increase in net interest expense and a $7.3 million improvement in other income in the March 1992 quarter. In addition, the March 1991 quarter included a $13.6 million gain on the disposition of flight equipment.
 The $235.3 million pretax loss in the March 1992 quarter was reduced by an income tax credit of $81.6 million and the amortization of investment tax credits totaling $2.1 million. After providing $4.7 million of preferred stock dividends, the net loss to common shareholders was $156.3 million.
 For the nine months ended March 31, operating revenues totaled $8.011 billion, up 21 percent from $6.646 billion recorded in the same period last year. Passenger revenues increased 21 percent to $7.493 billion, as revenue passenger miles grew 17 percent and the passenger mile yield rose 3 percent. Operating expenses in the nine months ended March 31 totaled $8.420 billion, an increase of 18 percent. Available seat miles grew 17 percent to 90.098 billion, and the average cost per available seat mile increased less than 1 percent to 9.35 cents. The average cost per fuel gallon declined 26 percent to 62.45 cents.
 The board declared a cash dividend of 30 cents per common share payable June 1, to stockholders of record on May 6.
 DELTA AIR LINES, INC.
 CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
 3 mos. ended March 1992 1991
 Operating Revenues:
 Passenger $ 2,635.2 $ 2,148.6
 Cargo 148.1 119.0
 Other 31.3 31.7
 Total Operating Revenues 2,814.6 2,299.3
 Operating Expenses:
 Salaries and Related Costs 1,176.0 958.2
 Aircraft Fuel 350.8 376.3
 A/C Mtc Materials and Repairs 126.0 85.1
 Aircraft Rent 169.9 108.5
 Facilities and Other Rent 96.4 69.2
 Landing Fees 59.2 40.6
 Passenger Service 139.9 98.3
 Passenger Commissions 296.9 226.2
 Depreciation and Amortization 164.1 130.0
 Other 434.7 322.0
 Total Operating Expenses 3,013.9 2,414.4
 Operating Loss 199.3 115.1
 Other Income (Expense):
 Interest Expense (net) (44.4) (31.3)
 Gain (Loss) on Disposition
 of Flight Equipment (0.2) 13.6
 Other Income, Net 8.6 1.3
 Total (36.0) (16.4)
 Loss Before Income Taxes 235.3 131.5
 Provision for Income Taxes:
 Income Taxes Credited 81.6 44.3
 Investment Tax Credits 2.1 3.1
 Total 83.7 47.4
 Net Loss 151.6 84.1
 Preferred Stock Dividends,
 Net of Tax Benefits 4.7 4.7
 Net Loss Attributable
 to Common Shareholders $ 156.3 $ 88.8
 Net Loss Per Share
 Primary $ 3.16 $ 2.09
 Fully Diluted $ 3.16 $ 2.09
 All dollar amounts in millions, except per share amounts
 STATISTICAL SUMMARY:
 Revenue Plane Miles (000) 180,610 149,272
 Available Seat Miles (000) 31,427,234 25,364,941
 Revenue Passengers Enplaned 18,386,289 17,272,535
 Revenue Passenger Miles (000) 17,404,587 14,743,494
 Cargo Ton Miles (000) 276,797 219,145
 Passenger Load Factor (percent) 55.38 58.13
 Breakeven Load Factor (percent) 59.57 61.24
 Fuel Gallons Consumed (000) 607,760 497,720
 Avg. Price Per Fuel Gallon (cents) 57.71 75.61
 Cost Per Avail. Seat Mile (cents) 9.59 9.52
 Passenger Mile Yield (cents) 15.14 14.57
 DELTA AIR LINES, INC.
 CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
 9 mos. ended March 1992 1991
 Operating Revenues:
 Passenger $ 7,492.6 $ 6,214.2
 Cargo 426.5 342.9
 Other 91.6 89.4
 Total Operating Revenues 8,010.7 6,646.5
 Operating Expenses:
 Salaries and Related Costs 3,267.0 2,791.8
 Aircraft Fuel 1,094.4 1,280.0
 A/C Mtc Materials and Repairs 305.5 231.6
 Aircraft Rent 462.3 292.5
 Facilities and Other Rent 252.4 183.1
 Landing Fees 161.4 121.7
 Passenger Service 387.9 297.0
 Passenger Commissions 855.9 664.0
 Depreciation and Amortization 457.8 384.2
 Other 1,175.6 901.2
 Total Operating Expenses 8,420.2 7,147.1
 Operating Loss 409.5 500.6
 Other Income (Expense):
 Interest Expense (net) (103.1) (70.1)
 Gain (Loss) on Disposition
 of Flight Equipment 4.4 13.6
 Other Income, Net 1.8 20.2
 Total (96.9) (36.3)
 Loss Before Income Taxes 506.4 536.9
 Provision for Income Taxes:
 Income Taxes Credited 172.8 183.2
 Investment Tax Credits 7.4 10.1
 Total 180.2 193.3
 Net Loss 326.2 343.6
 Preferred Stock Dividends,
 Net of Tax Benefits 13.9 13.9
 Net Loss Attributable
 to Common Shareholders $ 340.1 $ 357.5
 Net Loss Per Share
 Primary $ 6.88 $ 8.30
 Fully Diluted $ 6.88 $ 8.30
 All dollar amounts in millions, except per share amounts
 STATISTICAL SUMMARY:
 Revenue Plane Miles (000) 518,040 452,787
 Available Seat Miles (000) 90,097,543 76,943,633
 Revenue Passengers Enplaned 56,574,230 50,305,340
 Revenue Passenger Miles (000) 52,823,783 44,979,649
 Cargo Ton Miles (000) 789,693 649,635
 Passenger Load Factor (percent) 58.63 58.46
 Breakeven Load Factor (percent) 61.83 63.17
 Fuel Gallons Consumed (000) 1,752,482 1,524,071
 Avg. Price Per Fuel Gallon (cents) 62.45 83.98
 Cost Per Avail. Seat Mile (cents) 9.35 9.29
 Passenger Mile Yield (cents) 14.18 13.82
 DELTA AIR LINES, INC.
 Consolidated Statements of Income
 (Unaudited)
 Periods Ended
 March 31
 Quarters ended March 31: 1992 1991
 Operating Revenues $2,814.6 million $2,299.3 million
 Net Loss (A) 151,628,000 (B) 84,131,000
 Net Loss Attributable to
 Common Shareholders 156,274,000 88,780,000
 Loss per Common Share
 Primary $3.16 $2.09
 Fully Diluted $3.16 $2.09
 Weighted Average Number of
 Shares Used to Compute
 Loss Per Common Share
 Primary 49,524,364 42,381,292
 Fully Diluted 49,524,364 42,381,292
 9 months ended March 31:
 Operating Revenues $8,010.7 million $6,646.5 million
 Net Loss (C) 326,164,000 (D) 343,572,000
 Net Loss Attributable to
 Common Shareholders 340,103,000 357,520,000
 Loss per Common Share
 Primary $6.88 $8.30
 Fully Diluted $6.88 $8.30
 Weighted Average Number of
 Shares Used to Compute
 Loss Per Common Share
 Primary 49,448,759 43,052,458
 Fully Diluted 49,448,759 43,052,458
 Note A - Includes a loss of $117,000 from the disposition of
 flight equipment and a gain of $21,000 from foreign
 currency translation.
 Note B - Includes a gain of $8,599,000 (earnings per common
 share, 20 cents primary and fully diluted) from the
 disposition of flight equipment and a loss of $40,000
 from foreign currency translation.
 Note C - Includes a gain of $2,817,000 (earnings per common
 share, 6 cents primary and fully diluted) from the
 disposition of flight equipment and a loss of $21,000
 from foreign currency translation.
 Note D - Includes a gain of $8,648,000 (earnings per common
 share, 20 cents primary and fully diluted) from the
 disposition of flight equipment and a loss of
 $101,000 from foreign currency translation.
 -0- 4/23/92
 /CONTACT: Media: Delta public relations, 404-715-2590; Investors: Delta investor relations, 404-715-6679/
 (DAL) CO: Delta Air Lines, Inc. ST: Georgia IN: AIR SU: ERN


BN-BR -- AT012 -- 1830 04/23/92 11:34 EDT
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