Delta Airlines 2003 Annual Report Download - page 28

Table of Contents
The SARS outbreak significantly impacted the airline industry, and future disease outbreaks could materially adversely impact our business and
operating results.
During the first six months of 2003, the SARS outbreak, primarily centered in China and other Southeast Asian countries, with a number of cases in
Toronto, Canada, significantly impacted airline industry revenues. Due to our small Pacific presence, the SARS outbreak has had only a minimal impact on
us. However, if SARS were to spread more widely or if concerns regarding some other disease were to significantly impact customers' willingness to travel,
our financial condition and operating results could be materially adversely impacted.
We are at risk of losses and adverse publicity stemming from any accident involving our aircraft.
If one of our aircraft were to crash or be involved in an accident, we could be exposed to significant tort liability. The insurance we carry to cover damages
arising from any future accidents may be inadequate. In the event that our insurance is not adequate, we may be forced to bear substantial losses from an
accident. In addition, any accident involving an aircraft that we operate or an airline that is one of our codeshare partners could create a public perception that
our aircraft are not safe or reliable, which could harm our reputation, result in air travelers being reluctant to fly on our aircraft and harm our business.
Seasonality and other factors impact demand for air travel, and our prior performance is not necessarily indicative of our future results.
In general, demand for air travel is typically higher in the June and September quarters, particularly in international markets, because there is more
vacation travel during these periods than during the remainder of the year. Demand for air travel is also affected by factors such as economic conditions, war
or the threat of war, fare levels and weather conditions. In addition, demand for air travel at particular airlines may be impacted from time to time by, among
other things, actual or threatened disruptions to operations due to labor issues. Due to these and other factors, operating results for an interim period are not
necessarily indicative of operating results for an entire year, and operating results for a historical period are not necessarily indicative of operating results for a
future period.
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