Delta Airlines 2010 Annual Report Download - page 34

Table of Contents
Delta's results of operations for 2008 on a combined basis are derived from our Consolidated Financial Statements but are not presented in accordance with
GAAP. Certain of this information is considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. The non-GAAP
financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to
GAAP results.
Operating Revenue
GAAP 2008 2009 GAAP vs. 2008 Combined
Year Ended GAAP Northwest Combined %
December 31, Year Ended January 1 to Year Ended Increase Increase
(in millions) 2009 December 31 October 29 December 31 (Decrease) (Decrease)
Passenger:
Domestic $ 10,737 $ 8,580 $ 4,872 $ 13,452 $ (2,715) (20)%
Atlantic 4,357 4,390 1,450 5,840 (1,483) (25)%
Pacific 2,034 678 2,029 2,707 (673) (25)%
Latin America 1,394 1,489 131 1,620 (226) (14)%
Total Mainline 18,522 15,137 8,482 23,619 (5,097) (22)%
Regional carriers 5,285 4,446 1,643 6,089 (804) (13)%
Total passenger revenue 23,807 19,583 10,125 29,708 (5,901) (20)%
Cargo 788 686 667 1,353 (565) (42)%
Other 3,468 2,428 799 3,227 241 7%
Total operating revenue $ 28,063 $ 22,697 $ 11,591 $ 34,288 $ (6,225) (18)%
Increase (Decrease)
GAAP 2009 GAAP vs. 2008 Combined
Year Ended Passenger
December 31, Passenger ASMs Mile Load
(in millions) 2009 Revenue RPMs (Traffic) (Capacity) Yield PRASM Factor
Domestic $ 10,737 (20)% (7)% (8)% (14)% (14)% — pts
Atlantic 4,357 (25)% (8)% (9)% (20)% (19)% 0.9 pts
Pacific 2,034 (25)% (12)% (8)% (14)% (17)% (3.5) pts
Latin America 1,394 (14)% (2)% (1)% (12)% (14)% (1.3) pts
Total Mainline 18,522 (22)% (8)% (7)% (15)% (15)% (0.3) pts
Regional carriers 5,285 (13)% (1)% 0% (13)% (13)% (0.1) pts
Total passenger revenue $23,807 (20)% (7)% (6)% (14)% (14)% (0.4) pts
Mainline Passenger Revenue. Mainline passenger revenue decreased in 2009 compared to 2008 on a combined basis primarily due to weakened demand
for air travel from the global recession, capacity reductions and the effects of the H1N1 virus on passenger travel. Passenger mile yield and PRASM both
declined 15%.
• Domestic Passenger Revenue. Domestic passenger revenue decreased 20% from a 14% decrease in PRASM on an 8% decline in capacity. The
passenger mile yield decreased 14%, reflecting (1) a reduction in business demand due to the global recession, (2) an overall decrease in average
fares due to competitive pricing pressures and (3) lower fuel surcharges due to the year-over-year decline in fuel prices.
• International Passenger Revenue. International passenger revenue decreased 23% from a 17% decrease in PRASM on a 7% decline in capacity. The
passenger mile yield decreased 17%, reflecting (1) significantly reduced demand for international travel, (2) competitive pricing pressures
(especially in the Atlantic market, which experienced a 20% decrease in passenger mile yield), primarily from a significant decrease in business
demand due to the global recession and (3) the impact of the H1N1 virus, most notably in the Pacific and Latin America markets. The decrease in
passenger mile yield in the Atlantic market also reflects unfavorable foreign currency exchange rates and lower fuel surcharges due to the year-over-
year decline in fuel prices.
Regional carriers. Passenger revenue of regional carriers declined $804 million primarily as a result of a 13% decrease in passenger mile yield while
traffic and capacity remained flat. The decrease in passenger mile yield reflects a reduction in demand for air travel due to the global recession and an overall
decrease in average fares due to competitive pricing pressures.
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