Delta Airlines 2012 Annual Report Download - page 21

Our business is subject to the effects of weather and natural disasters and seasonality, which can cause our results to fluctuate.
Our results of operations will reflect fluctuations from weather, natural disasters and seasonality. Severe weather conditions and natural disasters
can significantly disrupt service and create air traffic control problems. These events decrease revenue and can also increase costs. In addition,
increases in frequency, severity or duration of thunderstorms, hurricanes, typhoons or other severe weather events, including from changes in the
global climate, could result in increases in fuel consumption to avoid such weather, turbulence-related injuries, delays and cancellations, any of
which would increase the potential for greater loss of revenue and higher costs. In addition, 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. Because of fluctuations in our results from weather, natural disasters and seasonality, operating results for a historical period are not necessarily
indicative of operating results for a future period and operating results for an interim period are not necessarily indicative of operating results for an
entire year.
An extended disruption in services provided by our third party regional carriers could have a material adverse effect on our results of
operations.
We utilize the services of third party providers in a number of areas in support of our operations that are integral to our business, including third
party carriers in the Delta Connection program. While we have agreements with these providers that define expected service performance, we do not
have direct control over the operations of these carriers. To the extent that a significant disruption in our regional operations occurs because any of
these providers are unable to perform their obligations over an extended period of time, our revenue may be reduced or our expenses may be
increased resulting in a material adverse effect on our results of operations.
The failure or inability of insurance to cover a significant liability related to hazards associated with the operation of a refinery by Monroe
would have a material adverse effect on our consolidated financial results.
Monroe's refining operations are subject to various hazards unique to refinery operations, including explosions, fires, toxic emissions and natural
catastrophes. Monroe's insurance coverage does not cover all potential losses, costs or liabilities and Monroe could suffer losses for uninsurable or
uninsured risks or in amounts greater than its insurance coverage. In addition, Monroe's ability to obtain and maintain adequate insurance may be
affected by conditions in the insurance market over which it has no control. If Monroe were to incur a significant liability for which it is not fully
insured or for which insurance companies do not or are unable to provide coverage, this could have a material adverse effect on our consolidated
financial results of operations.
The operation of a refinery by Monroe is subject to significant environmental regulation. Failure to comply with environmental regulations or
the enactment of additional regulation could have a negative impact on our consolidated financial results.
Monroe's operations are subject to numerous environmental laws and extensive regulations, including those relating to the discharge of materials
into the environment, waste management, pollution prevention measures and greenhouse gas emissions. If Monroe violates or fails to comply with
these laws and regulations, Monroe could be fined or otherwise sanctioned, which if significant could have a material adverse effect on our financial
results. In addition, the enactment of new environmental laws and regulations, including any laws or regulations relating to greenhouse gas
emissions, could significantly increase the level of expenditures required for environmental matters for Monroe.
If we experience losses of senior management personnel and other key employees, our operating results could be adversely affected.
We are dependent on the experience and industry knowledge of our officers and other key employees to execute our business plans. If we
experience a substantial turnover in our leadership and other key employees, our performance could be materially adversely impacted. Furthermore,
we may be unable to attract and retain additional qualified executives as needed in the future.
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