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Exhibit 99.1
Dear Analysts and Investors,
In accordance with Regulation FD, Delta Air Lines, Inc. ("Delta") has updated
some of our estimates for the three months ending December 31, 2000. For your
convenience, we have listed separately the estimates for Delta both excluding
and including the projected data for our wholly owned subsidiaries ASA Holdings,
Inc. and Comair Holdings, Inc.
As previously reported, on November 16, 2000, Delta completed the sale of an
aggregate of $1.5 billion principal amount of pass through certificates, Series
2000-1, in a public offering. Delta used the net proceeds from this offering to
repay the outstanding indebtedness Delta incurred in fiscal 1999 in connection
with the acquisition of ASA Holdings, Inc. pursuant to a $500 million credit
agreement entered into between Delta and a group of banks, and will use the
remaining net proceeds for general corporate purposes. As a result of this new
offering, Delta's interest expense will increase by approximately $75 million
annually. For additional information concerning the Series 2000-1 pass through
certificates, see Note 9 of Delta's Quarterly Report on Form 10-Q for the
quarter ended September 30, 2000.
Delta management is reasonably comfortable that its fully diluted earnings per
share for the December 2000 quarter will be within the current range of analyst
estimates of $0.85 to $1.15 per share. The estimates do not reflect the fair
value adjustments related to SFAS 133 derivatives for the December 2000 quarter.
Statements in this letter which are not purely historical facts, including
statements regarding Delta's beliefs, expectations, intentions, or strategies
for the future, may be "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Any forward-looking statements involve
a number of risks and uncertainties that could cause actual results to differ
materially from the plans, intentions and expectations reflected in or suggested
by the forward-looking statements. Factors and events that could cause these
differences include, but are not limited to:
- general economic conditions, both in the United States and in
our markets outside the United States;
- competitive factors, such as the airline pricing environment,
international alliances, codesharing programs and capacity
decisions by competitors;
- outcomes of negotiations on collective bargaining agreements;
- changes in aircraft fuel prices;
- fluctuations in foreign currency exchange rates;
- actions by the United States and foreign governments;
- the willingness of customers to travel generally and with us
specifically, which could be affected by factors such as our
on-time performance, our baggage handling performance, how
well we respond to customer complaints and our and the
industry's safety record; and
- the outcome of our litigation.
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Forward-looking statements made by us are based on our knowledge of our business
and the environment in which we operate. Due to the factors listed above, as
well as other factors beyond our control, actual results may differ materially
from those anticipated in the forward-looking statements. All forward-looking
statements attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. We assume no
obligation to update these forward-looking statements even though our situation
will change in the future.
Sincerely,
Joe Kolshak
Director - Investor Relations
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DELTA (EXCLUDING ASA HOLDINGS, INC., COMAIR HOLDINGS, INC. AND ONE-TIME ITEMS)
<TABLE>
<CAPTION>
Three Months Ending December 31, Year-over-Year
2000 estimate 1999 Percentage Change
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<S> <C> <C> <C>
Operating Cost Per Available Seat Mile 9.39(cent) 8.80(cent) 6.7%
Operating Cost Per Available Seat Mile - Excluding Fuel 8.07(cent) 7.80(cent) 3.4%
Fuel Price Per Gallon (excluding fuel taxes) 71.90(cent) 53.61(cent) 34.1%
Fuel Gallons Consumed (000's) 681,000 674,790 0.9%
Available Seat Miles (000's)
System 36,913,000 36,212,294 1.9%
North America 28,569,000 28,526,211 0.1%
International 8,344,000 7,686,083 8.6%
Atlantic 5,851,000 5,584,436 4.8%
Latin 1,481,000 1,055,320 40.3%
Pacific 1,012,000 1,046,327 (3.3)%
</TABLE>
CONSOLIDATED (INCLUDING ASA HOLDINGS, INC. AND COMAIR HOLDINGS, INC. AND
EXCLUDING ONE-TIME ITEMS)
<TABLE>
<CAPTION>
Three Months Ending December 31, Year-over-Year
2000 estimate 1999* Percentage Change
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<S> <C> <C> <C>
Operating Cost Per Available Seat Mile 9.80(cent) 8.99(cent) 9.0%
Operating Cost Per Available Seat Mile - Excluding Fuel 8.38(cent) 7.97(cent) 5.1%
Fuel Price Per Gallon (excluding fuel taxes) 76.94(cent) 54.51(cent) 41.1%
Fuel Gallons Consumed (000's) 716,000 703,576 1.8%
Available Seat Miles (000's)
System 39,054,000 37,319,715 4.6%
North America 30,658,000 29,633,632 3.5%
International 8,396,000 7,686,083 9.2%
Atlantic 5,851,000 5,584,436 4.8%
Latin 1,533,000 1,055,320 45.3%
Pacific 1,012,000 1,046,327 (3.3)%
</TABLE>
* Results include Comair Holdings, Inc. as of November 22, 1999.
