Delta Airlines 2012 Annual Report Download - page 25

Our insurance costs have increased substantially as a result of the September 11, 2001 terrorist attacks, and further increases in insurance
costs or reductions in coverage could have a material adverse impact on our business and operating results.
As a result of the terrorist attacks on September 11, 2001, aviation insurers significantly (1) reduced the maximum amount of insurance coverage
available to commercial air carriers for liability to persons (other than employees or passengers) for claims from acts of terrorism, war or similar
events and (2) increased the premiums for such coverage and for aviation insurance in general. Since September 24, 2001, the U.S. government has
been providing U.S. airlines with war-risk insurance to cover losses, including those resulting from terrorism, to passengers, third parties (ground
damage) and the aircraft hull. The U.S. Secretary of Transportation has extended coverage through September 30, 2013, and we expect the coverage
to be further extended. The withdrawal of government support of airline war-risk insurance would require us to obtain war-risk insurance coverage
commercially, if available. Such commercial insurance could have substantially less desirable coverage than currently provided by the U.S.
government, may not be adequate to protect our risk of loss from future acts of terrorism, may result in a material increase to our operating expense
or may not be obtainable at all, resulting in an interruption to our operations.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
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