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DELTA REPORTS JUNE 1992 QUARTER, FISCAL YEAR RESULTS

 DELTA REPORTS JUNE 1992 QUARTER,
 FISCAL YEAR RESULTS
 ATLANTA, July 23 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) reported an unaudited net loss of $180,154,000 and a loss from operations of $265,447,000 for the quarter ended June 30, 1992. In the June 1991 quarter, the company reported net income of $19,191,000 and operating income of $50,642,000.
 The primary and fully diluted loss per share, after preferred stock dividends, was $3.72 in the June 1992 quarter, compared with 30 cents primary and 29 cents fully diluted earnings per share in the June 1991 quarter.
 For fiscal year 1992, which ended June 30, Delta's net loss totaled $506,318,000, compared to a net loss of $324,380,000 in fiscal 1991. The primary and fully diluted loss per share, after preferred stock dividends, was $10.60 in fiscal 1992, and $7.73 in fiscal 1991.
 At Delta's regular board meeting held in Atlanta today, Thomas J. Roeck, senior vice president - finance and chief financial officer, reported that Delta and the rest of the airline industry continued to be negatively affected by poor economic conditions and a competitive struggle largely characterized by numerous deep-discount fare promotions. "While costs are rising, the average revenue per passenger mile in both domestic and international markets continues to be held down by uneconomic fare programs. The amount of traffic stimulated by these low fares falls significantly short of offsetting the dilution of the passenger mile yield and the added expense associated with additional traffic," he stated. Roeck noted that deeply discounted tickets that were sold in large numbers early in the summer will depress revenue through the September 1992 quarter.
 Roeck stated that Delta's fiscal 1992 results were negatively impacted by the start-up of service on transatlantic and intra-European routes acquired from Pan Am. He noted that, except for economic softness on both sides of the Atlantic affecting leisure traffic, the company has made good progress in bringing the acquired routes up to Delta's expectations.
 Operating revenues for the June 1992 quarter were $2.826 billion, up 12 percent from $2.524 billion reported in the June 1991 quarter. Passenger revenue grew 11 percent to $2.623 billion, due to a 16 percent increase in revenue passenger miles and a four percent decline in the passenger mile yield to 13.20 cents. Cargo revenues were up 21 percent to $161.1 million, the result of a 25 percent increase in cargo ton miles and a three percent decrease in the ton mile yield. All other revenues grew eight percent to $42.3 million.
 Total operating expenses in the June 1992 quarter increased 25 percent to $3.091 billion. Operating capacity grew 21 percent to 33.004 billion available seat miles, and the cost per available seat mile rose four percent to 9.37 cents.
 Salaries and related costs in the June 1992 quarter totaled $1.169 billion, an increase of 22 percent, due to 19 percent growth in the average level of employment to 77,612, and increases in employee benefits costs, travel expenses and salary levels from the June 1991 quarter.
 Aircraft fuel expense grew 22 percent to $387.9 million, as the average price per fuel gallon increased three percent to 61.47 cents, while fuel gallons consumed rose 18 percent.
 Depreciation and amortization expense in the June 1992 quarter was $176.7 million, compared to $137.2 million in the June 1991 quarter, due to the addition of flight and ground equipment and the amortization of certain assets purchased since the June 1991 quarter.
 All other operating expenses in the June 1992 quarter increased 29 percent to $1.357 billion, primarily the result of the company's growth in traffic and capacity, and costs related to Delta's expanded international operation. Aircraft maintenance materials and repairs expense grew 48 percent, due to the addition of aircraft to the fleet, a high level of overhaul activity, and an increased amount of maintenance contracted outside the company. Aircraft rental expense rose 49 percent, reflecting the addition of leased aircraft to the fleet. Facilities and other rents were up 42 percent and landing fees rose 35 percent, largely due to additional or expanded passenger and maintenance facilities and the company's growth in international markets.
 Passenger service expense increased 21 percent, due to growth in passenger traffic and higher costs related to international operations. Travel agency commissions rose 15 percent, the result of revenue growth and a higher percentage of international traffic. All other expenses grew 25 percent, mainly due to increased costs related to international operations, including navigation charges, security, and contract services.
 The passenger load factor was 60.20 percent in the June 1992 quarter, compared to 62.47 percent in the June 1991 quarter, and the break-even load factor rose to 66.29 percent from 61.12 percent.
 Nonoperating expense in the June 1992 quarter totaled $14.6 million, compared to $13.9 million in the June 1991 quarter.
 Net interest expense increased $20.8 million. The June 1992 quarter nonoperating results include a $12.0 million accrual for a cash payment to be made by Delta in connection with the proposed settlement of a class action antitrust lawsuit, and a $30.1 million gain on the disposition of flight equipment.
 Income tax credits and investment tax credits totaled $99.8 million. After providing $4.6 million in preferred stock dividends, the net loss to common shareholders was $184.8 million.
 For fiscal 1992, operating revenues totaled $10.837 billion, up 18 percent from $9.171 billion in fiscal 1991. Passenger revenue rose 18 percent to $10.115 billion, as revenue passenger miles increased 17 percent and the passenger mile yield grew less than one percent to 13.91 cents. Cargo revenues increased 24 percent to $587.6 million, primarily due to a 23 percent increase in cargo ton miles. All other revenues rose four percent to $134.0 million.
 Total operating expenses for fiscal 1992 were $11.512 billion, up 20 percent from $9.621 billion in fiscal 1991. Delta's operating capacity grew 18 percent to 123.102 billion available seat miles, and the average cost per seat mile increased one percent to 9.35 cents.
 Salaries and related expenses grew 18 percent to $4.436 billion, the result of a 16 percent increase in the average level of employment to 73,533, higher salary levels, and growth in payroll overhead costs.
 Aircraft fuel expense in fiscal 1992 decreased seven percent to $1.482 billion. The average fuel cost per gallon was 62.19 cents, down 20 percent from 77.63 cents in fiscal 1991, while fuel gallons consumed increased 16 percent.
 Depreciation and amortization expense rose 22 percent to $634.5 million. All other operating expenses increased 32 percent, reflecting growth in traffic, revenue and capacity, including the company's expansion into new international markets and the start-up of the Delta Shuttle operation as a result of the purchase of assets from Pan Am Corporation.
 The passenger load factor for fiscal 1992 was 59.05 percent, compared to 59.51 percent in fiscal 1991, and the break-even load factor increased slightly to 62.99 percent from 62.64 percent in the previous year.
 Nonoperating expense in fiscal 1992 totaled $111.5 million, compared to $50.2 million in fiscal 1991, due to a $53.9 million increase in net interest expense, a $17.7 million increase in gains on the disposition of flight equipment, a $17.9 million improvement in other income, and a $43.0 million write-off of nonoperating expenses during fiscal 1992 related to Delta's participation in Pan Am's failed reorganization.
 Income taxes credited for fiscal 1992 were $271.0 million, and investment tax credits totaled $9.1 million. After providing $18.6 million in preferred stock dividends, the net loss to common shareholders was $524.9 million.
 The Board of Directors declared a cash dividend of 30 cents per common share and a dividend, prorated from July 1, 1992, of $583.33 per share of Series C Convertible Preferred stock ($.58333 per depositary share), both payable September 1, 1992, to stockholders of record on August 5, 1992.
 The Board of Directors also set the date for the Annual Meeting of the Stockholders for October 22, 1992, at the Monroe Civic Center in Monroe, Louisiana. The company's bylaws generally require stockholders who intend to nominate persons for election to the Board of Directors or to introduce other business at the annual meeting to give certain written notice to the company not less than 55 days nor more than 75 days prior to the annual meeting.
 -0- 7/23/92
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 /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


BR-BN -- AT005 -- 2538 07/23/92 12:35 EDT
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Publication:PR Newswire
Date:Jul 23, 1992
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