Delta Airlines 2014 Annual Report Download - page 20

Our information systems are subject to an increasing threat of continually evolving cybersecurity risks. Unauthorized parties may attempt to gain
access to our systems or information through fraud or other means of deception. Hardware or software we develop or acquire may contain defects that
could unexpectedly compromise information security. The methods used to obtain unauthorized access, disable or degrade service or sabotage systems
are constantly evolving, and may be difficult to anticipate or to detect for long periods of time. We regularly review and update procedures and
processes to prevent and protect against unauthorized access to our systems and information. However, the constantly changing nature of the threats
means that we may not be able to prevent all data security breaches or misuse of data. The compromise of our technology systems resulting in the loss,
disclosure, misappropriation of, or access to, customers', employees' or business partners' information could result in legal claims or proceedings,
liability or regulatory penalties under laws protecting the privacy of personal information, disruption to our operations and damage to our reputation,
any or all of which could adversely affect our business.
We are dependent on technology in our operations. If our technology does not perform reliably, our business may be adversely affected.
We have become increasingly dependent on technology initiatives to enhance customer service, reduce costs and increase operational effectiveness
in order to compete in the current business environment. For example, we have made and continue to make significant investments in delta.com,
mobile device applications, check-in kiosks and related initiatives, including security for these initiatives. The performance, reliability and security of
the technology are critical to our ability to attract and retain customers and our ability to compete effectively. If our technology does not perform
reliably, our business and operations could be negatively affected.
Our business is subject to the effects of weather, natural disasters and seasonality, which can cause our results to fluctuate.
Our results of operations are impacted by severe 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
the 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 delays and cancellations, turbulence-related injuries and fuel consumption to avoid such weather, 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. The seasonal shifting of demand causes our financial results to vary on a seasonal basis. 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 parties 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 their operations. In particular, third-party regional carriers may face a shortage of qualified pilots due to government mandated
increases in flight experience required for pilots working for airlines. If this shortage occurs, third-party regional carriers may not be able to comply
with their obligations to us. 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.
15