Delta Airlines 2015 Annual Report Download - page 22

TableofContents
Proposalstoaddresscongestionissuesatcertainairportsorincertainairspace,particularlyintheNortheastU.S.,haveincludedconceptssuchas“congestion-
based”landingfees,“slotauctions”orotheralternativesthatcouldimposeasignificantcostontheairlinesoperatinginthoseairportsorairspaceandimpactthe
abilityofthoseairlinestorespondtocompetitiveactionsbyotherairlines.Inaddition,thefailureofthefederalgovernmenttoupgradetheU.S.airtrafficcontrol
systemhasresultedindelaysanddisruptionsofairtrafficduringpeaktravelperiodsincertaincongestedmarkets.Thefailuretoimprovetheairtrafficcontrol
systemcouldleadtoincreaseddelaysandinefficienciesinflightoperationsasdemandforU.S.airtravelincreases,havingamaterialadverseeffectonour
operations.Failuretoupdatetheairtrafficcontrolsysteminatimelymanner,andthesubstantialfundingrequirementsofanupdatedsystemthatmaybeimposed
onaircarriers,mayhaveanadverseimpactonourfinancialconditionandresultsofoperations.
Futureregulatoryactionconcerningclimatechange,aircraftemissionsandnoiseemissionscouldhaveasignificanteffectontheairlineindustry.Forexample,
theEuropeanCommissionadoptedanemissionstradingschemeapplicabletoallflightsoperatingintheEuropeanUnion,includingflightstoandfromtheU.S.
WhileenforcementoftheschemehasbeendeferreduntilApril2017,weexpectthatthissystemwouldimposeadditionalcostsonouroperationsintheEuropean
Unioniffullyimplemented.OtherlawsorregulationssuchasthisemissionstradingschemeorotherU.S.orforeigngovernmentalactionsmayadverselyaffect
ouroperationsandfinancialresults,eitherthroughdirectcostsinouroperationsorthroughincreasesincostsforjetfuelthatcouldresultfromjetfuelsuppliers
passingonincreasedcoststhattheyincurundersuchasystem.
WeandotherU.S.carriersaresubjecttodomesticandforeignlawsregardingprivacyofpassengerandemployeedatathatarenotconsistentinallcountriesin
whichweoperate.InadditiontotheheightenedlevelofconcernregardingprivacyofpassengerdataintheU.S.,certainEuropeangovernmentagenciesare
reviewingairlineprivacypractices.Compliancewiththeseregulatoryregimesisexpectedtoresultinadditionaloperatingcostsandcouldimpactouroperations
andanyfutureexpansion.
Prolonged periods of stagnant or weak economic conditions could have a material adverse effect on our business, financial condition and operating results.
Asaresultofthediscretionarynatureofairtravel,theairlineindustryhasbeencyclicalandparticularlysensitivetochangesineconomicconditions.Because
weoperateglobally,withalmost35%ofourrevenuesfromoperationsoutsideoftheU.S.,ourbusinessissubjecttoeconomicconditionsthroughouttheworld.
Duringperiodsofunfavorableorvolatileeconomicconditionsintheglobaleconomy,demandforairtravelcanbesignificantlyimpactedasbusinessandleisure
travelerschoosenottotravel,seekalternativeformsoftransportationforshorttripsorconductbusinessthroughvideoconferencing.Ifunfavorableeconomic
conditionsoccur,particularlyforanextendedperiod,ourbusiness,financialconditionandresultsofoperationsmaybeadverselyaffected.Inaddition,significant
orvolatilechangesinexchangeratesbetweentheU.S.dollarandothercurrencies,andtheimpositionofexchangecontrolsorothercurrencyrestrictions,mayhave
amaterialadverseeffectonourliquidity,financialconditionsandresultsofoperations.
The rapid spread of contagious illnesses can have a material adverse effect on our business and results of operations.
Therapidspreadofacontagiousillness,orfearofsuchanevent,canhaveamaterialadverseeffectonthedemandforworldwideairtravelandthereforehavea
materialadverseeffectonourbusinessandresultsofoperations.Moreover,ouroperationscouldbenegativelyaffectedifemployeesarequarantinedastheresult
ofexposuretoacontagiousillness.Similarly,travelrestrictionsoroperationalissuesresultingfromtherapidspreadofcontagiousillnessesinapartoftheworldin
whichweoperatemayhaveamateriallyadverseimpactonourbusinessandresultsofoperations.
ITEM1B.UNRESOLVEDSTAFFCOMMENTS
None.
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