Delta Airlines 2012 Annual Report Download - page 38

Operating Expense
(1)
NM - not meaningful
Fuel Expense. Including contract carriers under capacity purchase agreements, fuel expense increased $468 million because of a 6% increase in
our average price per gallon, despite a 2% decrease in consumption. The table below presents fuel expense, gallons consumed and our average price
per gallon, including the impact of fuel hedge losses of $66 million during the year ended December 31, 2012 :
The table below shows the impact of hedging and the refinery on fuel expense and average price per gallon:
33
Year Ended December 31, Increase
(Decrease) % Increase (Decrease) (in millions) 2012 2011
Aircraft fuel and related taxes
$
10,150
$
9,730
$
420
4
%
Salaries and related costs
7,266
6,894
372
5
%
Contract carrier arrangements
5,647
5,470
177
3
%
Aircraft maintenance materials and outside repairs
1,955
1,765
190
11
%
Passenger commissions and other selling expenses
1,590
1,682
(92
)
(5
)%
Contracted services
1,566
1,642
(76
)
(5
)%
Depreciation and amortization
1,565
1,523
42
3
%
Landing fees and other rents
1,336
1,281
55
4
%
Passenger service
732
721
11
2
%
Profit sharing
372
264
108
41
%
Aircraft rent
272
298
(26
)
(9
)%
Restructuring and other items
452
242
210
NM
(1)
Other
1,592
1,628
(36
)
(2
)%
Total operating expense
$
34,495
$
33,140
$
1,355
4
%
Year Ended December 31, Increase
(Decrease) % Increase (Decrease) (in millions, except per gallon data) 2012 2011
Aircraft fuel and related taxes
$
10,150
$
9,730
$
420
Aircraft fuel and related taxes included within contract carrier arrangements
2,101
2,053
48
Total fuel expense
$
12,251
$
11,783
$
468
4
%
Total fuel consumption (gallons)
3,769
3,856
(87
)
(2
)%
Average price per gallon
$
3.25
$
3.06
$
0.19
6
%
Average Price Per Gallon
Year Ended December 31, Increase
(Decrease)
Year Ended December 31,
Increase (in millions, except per gallon data) 2012 2011
2012 2011
Fuel purchase cost
$
12,122
$
12,203
$
(81
)
$
3.23
$
3.17
$
0.06
Refinery impact
63
—
63
0.01
—
0.01
Fuel hedge losses (gains)
66
(420
)
486
0.01
(0.11
)
0.12
Total fuel expense
$
12,251
$
11,783
$
468
$
3.25
$
3.06
$
0.19
MTM adjustments
27
(26
)
53
0.01
(0.01
)
0.02
Total fuel expense, adjusted
$
12,278
$
11,757
$
521
$
3.26
$
3.05
$
0.21