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DELTA AIR LINES REPORTS SEPTEMBER 1992 QUARTER RESULTS

 DELTA AIR LINES REPORTS SEPTEMBER 1992 QUARTER RESULTS
 ATLANTA, Oct. 22 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) reported an unaudited net loss of $106,733,000 ($2.64 primary and fully diluted loss per share after preferred stock dividends) and a loss from operations of $162,486,000 for the first fiscal quarter ended Sept. 30.
 The company recorded net income totaling $13,076,000 ($0.17 primary and fully diluted earnings per share after preferred stock dividends) and operating income of $26,593,000 in the September 1991 quarter.
 For the nine months ended Sept. 30, 1992, Delta reported a net loss of $438,516,000 ($9.52 primary and fully diluted loss per share after preferred stock dividends) and an operating loss of $627,217,000, compared to a net loss of $51,864,000 ($1.41 primary and fully diluted loss per share after preferred stock dividends) and an operating loss of $37,815,000 in the nine months ended Sept. 30, 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 are very disappointing, but not unexpected. "Delta's and the industry's financial results for the peak summer travel season substantially were the result of fare slashing earlier in the year. In an attempt to simplify what had become a myriad of complicated fares, the major carriers implemented a four-tier fare structure, which included reduced fares in every category. Compounding the resulting reduction in passenger revenues, some airlines cut certain discount fares in half, forcing other carriers, including Delta, to match. While these cheap fares generated substantial traffic during the summer, it was not nearly enough to offset the loss of revenue from the fare cuts."
 Roeck also noted that Delta's operating expenses in the September 1992 quarter grew from the previous year, reflecting the impact of the high level of traffic and the growth in operations, both domestic and international.
 Operating revenues for the September 1992 quarter were $3.064 billion, a 19 percent increase from $2.573 billion in the September 1991 quarter. Passenger revenue rose 17 percent to $2.833 billion, as a 31 percent increase in traffic to 23.793 billion revenue passenger miles was offset by a 10 percent decline in the passenger mile yield to 11.91 cents. Cargo revenues grew 30 percent to $171.8 million, the result of a 26 percent increase in cargo ton miles and a three percent gain in the ton mile yield. All other revenues totaled $59.6 million, an increase from $30.1 million in the September 1991 quarter, primarily due to fees collected during the September 1992 quarter for passenger ticket changes.
 Total operating expenses in the September 1992 quarter were $3.226 billion, up 27 percent from $2.546 billion in the September 1991 quarter. Operating capacity rose 20 percent to 34.116 billion available seat miles. The cost per available seat mile was 9.46 cents, an increase of six percent from 8.94 cents in the September 1991 quarter.
 Salaries and related costs grew 18 percent to $1.186 billion, the result of 15 percent growth in the average level of employment to 77,352, and increased travel expenses, personnel benefit expenses and payroll overhead costs. Aircraft fuel expense rose 25 percent to $437.7 million, as fuel gallons consumed increased 18 percent and the fuel cost per gallon grew six percent to 66.20 cents.
 Depreciation and amortization expenses in the September 1992 quarter were $190.2 million, up 35 percent from $140.6 million in the September 1991 quarter, primarily due to additional flight and ground equipment.
 All other operating expenses increased 34 percent to $1.413 billion, reflecting the company's growth in revenue, traffic and capacity, and costs related to increased international operations. Aircraft maintenance materials and repairs expense rose 59 percent, due to the addition of new and used aircraft to the fleet and increased maintenance activity contracted outside the company. Aircraft rental expense grew 35 percent, the result of additional leased aircraft.
 Facilities and other rents increased 27 percent and landing fees rose 44 percent, largely the result of the company's expanded operations, particularly in international markets. Passenger service expense rose 35 percent, due to growth in passenger traffic and higher costs related to increased international operations. Passenger commissions increased 20 percent, reflecting passenger revenue growth. All other expenses rose 39 percent, mainly due to cost increases related to growth in international operations, including cargo commissions, navigation charges and contract services, and an $8.2 million adjustment related to changes in Delta's Frequent Flyer program.
 The passenger load factor in the September 1992 quarter increased to 69.74 percent from 63.73 percent in the September 1991 quarter, while the breakeven load factor rose to 73.74 percent from 63.03 percent.
 Nonoperating expense in the September 1992 quarter totaled $1.8 million, compared to $4.3 million in the September 1991 quarter. Net interest expense increased $9.1 million to $38.3 million, and miscellaneous income totaled $17.1 million. Gains from the sale of aircraft totaled $19.4 million.
 Income tax credits and investment tax credits totaled $57.6 million. After providing $24.8 million in preferred stock dividends, the net loss to common shareholders was $131.5 million.
 For the nine months ended Sept. 30, 1992, operating revenues totaled $8.705 billion, compared to $7.396 billion in the nine months ended Sept. 30, 1991. Passenger revenues increased 17 percent to $8.090 billion, as revenue passenger miles grew 22 percent to 61.066 billion and the average passenger mile yield declined 4 percent to 13.25 cents. Operating expenses totaled $9.332 billion, an increase of 26 percent. Available seat miles were up 21 percent to 98.548 billion, and the average cost per available seat mile increased three percent to 9.47 cents.
 The Board of Directors declared a cash dividend of 30 cents 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 Dec. 1, 1992, to stockholders of record on Nov. 11, 1992.
 -0- 10/22/92
 /CONTACT: Delta public relations, 404-715-2590; Investor relations, 404-715-6679/
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (DAL) CO: Delta Air Lines, Inc. ST: Georgia IN: AIR SU: ERN DIV


BN-BR -- AT009 -- 3637 10/22/92 12:55 EDT
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Date:Oct 22, 1992
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