ATLANTA, Aug. 2, 2016 /PRNewswire/ -- Delta Air Lines
(NYSE: DAL) today reported financial and operating performance for
July 2016.
Consolidated passenger unit revenue (PRASM) for the month of
July declined 7.0% year over year, consistent with the company's
expectations for the quarter. This result was driven by
continued close-in domestic yield weakness, the ongoing
supply-demand imbalance in the Transatlantic, and headwinds from
the company's Yen hedge positions.
The company's financial and operating performance is detailed
below.
Preliminary
Financial and Operating Results
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July consolidated
PRASM change year over year
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(7.0)%
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July mainline
completion factor
|
99.7%
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July on-time
performance (preliminary DOT A14)
|
81.6%
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Delta Air Lines serves nearly 180 million customers each year.
In 2016, Delta was named to Fortune's top 50 Most Admired Companies
in addition to being named the most admired airline for the fifth
time in six years. Additionally, Delta has ranked No.1 in the
Business Travel News Annual Airline survey for an unprecedented
five consecutive years. With an industry-leading global network,
Delta and the Delta Connection carriers offer service to 335
destinations in 61 countries on six continents. Headquartered in
Atlanta, Delta employs more than
80,000 employees worldwide and operates a mainline fleet of more
than 800 aircraft. The airline is a founding member of the SkyTeam
global alliance and participates in the industry's leading
transatlantic joint venture with Air France-KLM and Alitalia
as well as a joint venture with Virgin Atlantic. Including its
worldwide alliance partners, Delta offers customers more than
15,000 daily flights, with key hubs and markets including
Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St.
Paul, New York-JFK and LaGuardia, London-Heathrow, Paris-Charles de
Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has
invested billions of dollars in airport facilities, global products
and services, and technology to enhance the customer experience in
the air and on the ground. Additional information is available on
the Delta News Hub, as well as delta.com, Twitter @DeltaNewsHub,
Google.com/+Delta, and Facebook.com/delta.
Forward Looking Statements
Statements in this press
release that are not historical facts, including statements
regarding our estimates, expectations, beliefs, intentions,
projections or strategies for the future, may be "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. All forward-looking statements involve a number of
risks and uncertainties that could cause actual results to differ
materially from the estimates, expectations, beliefs, intentions,
projections and strategies reflected in or suggested by the
forward-looking statements. These risks and uncertainties
include, but are not limited to, the cost of aircraft fuel; the
impact of rebalancing our hedge portfolio, recording mark-to-market
adjustments or posting collateral in connection with our fuel hedge
contracts; the availability of aircraft fuel; the effects of
terrorist attacks or geopolitical conflict; the possible effects of
accidents involving our aircraft; the restrictions that financial
covenants in our financing agreements will have on our financial
and business operations; labor issues; interruptions or disruptions
in service at one of our hub or gateway airports; disruptions or
security breaches of our information technology infrastructure; our
dependence on technology in our operations; the effects of weather,
natural disasters and seasonality on our business; the effects of
an extended disruption in services provided by third party regional
carriers; failure or inability of insurance to cover a significant
liability at Monroe's Trainer
refinery; the impact of environmental regulation on the Trainer
refinery, including costs related to renewable fuel standard
regulations; our ability to retain management and key employees;
competitive conditions in the airline industry; the effects of
extensive government regulation on our business; the sensitivity of
the airline industry to prolonged periods of stagnant or weak
economic conditions; uncertainty in economic conditions and
regulatory environment in the United
Kingdom related to the likely exit of the United Kingdom from the European Union; and
the effects of the rapid spread of contagious illnesses.
Additional information concerning risks and uncertainties that
could cause differences between actual results and forward-looking
statements is contained in our Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the fiscal
year ended Dec. 31, 2015 and our
Quarterly Report on Form 10-Q for the quarterly period ended
June 30, 2016. Caution should
be taken not to place undue reliance on our forward-looking
statements, which represent our views only as of Aug. 2, 2016, and which we have no current
intention to update.
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Monthly Traffic
Results (a)
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Year to Date
Traffic Results (a)
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July
2016
|
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July
2015
|
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Change
|
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July
2016
|
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July
2015
|
|
Change
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RPMs
(000):
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|
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|
|
Domestic
|
12,427,419
|
|
12,203,104
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1.8%
|
|
76,272,256
|
|
73,052,397
|
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4.4%
|
|
|
|
Delta
Mainline
|
10,572,602
|
|
10,291,665
|
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2.7%
|
|
64,211,382
|
|
60,961,185
|
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5.3%
|
|
|
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Regional
|
1,854,817
|
|
1,911,439
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(3.0%)
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12,060,874
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|
12,091,212
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(0.3%)
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International
|
8,726,177
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8,702,193
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0.3%
|
|
49,010,342
|
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48,828,728
|
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0.4%
|
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Latin
America
|
1,831,957
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1,805,937
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1.4%
|
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12,468,954
|
|
11,803,174
|
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5.6%
|
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Delta
Mainline
|
1,781,201
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|
1,770,720
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0.6%
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|
12,122,750
|
|
11,579,977
|
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4.7%
|
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Regional
|
50,756
|
|
35,217
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44.1%
|
|
346,203
|
|
223,197
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55.1%
|
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Atlantic
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4,743,845
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4,637,013
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2.3%
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22,976,541
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22,975,377
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0.0%
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Pacific
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2,150,375
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2,259,243
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(4.8%)
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13,564,848
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14,050,177
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(3.5%)
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Total
System
|
21,153,597
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20,905,297
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1.2%
|
|
125,282,599
|
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121,881,125
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2.8%
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ASMs
(000):
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Domestic
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14,350,955
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13,777,995
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4.2%
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89,675,606
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85,075,138
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5.4%
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Delta
Mainline
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12,109,575
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11,498,826
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5.3%
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74,568,491
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70,021,319
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6.5%
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Regional
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2,241,380
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2,279,169
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(1.7%)
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15,107,116
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15,053,819
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0.4%
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International
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9,925,419
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9,994,532
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(0.7%)
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58,718,380
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59,231,340
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(0.9%)
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Latin
America
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2,025,063
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2,038,284
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(0.6%)
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14,751,975
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14,290,935
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3.2%
|
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Delta
Mainline
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1,967,299
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1,998,394
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(1.6%)
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14,322,257
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14,003,946
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2.3%
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Regional
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57,764
|
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39,890
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44.8%
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429,717
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286,989
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49.7%
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Atlantic
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5,526,327
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5,407,534
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2.2%
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28,513,506
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28,451,556
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0.2%
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Pacific
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2,374,029
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2,548,714
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(6.9%)
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15,452,899
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16,488,849
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(6.3%)
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Total
System
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24,276,374
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23,772,527
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2.1%
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148,393,986
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144,306,478
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2.8%
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Load
Factor:
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Domestic
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86.6%
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88.6%
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(2.0)
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pts
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85.1%
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85.9%
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(0.8)
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pts
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Delta
Mainline
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87.3%
|
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89.5%
|
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(2.2)
|
pts
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86.1%
|
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87.1%
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(1.0)
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pts
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Regional
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82.8%
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83.9%
|
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(1.1)
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pts
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79.8%
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80.3%
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(0.5)
|
pts
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International
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87.9%
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87.1%
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0.8
|
pts
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83.5%
|
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82.4%
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|
1.1
|
pts
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Latin
America
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90.5%
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88.6%
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1.9
|
pts
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84.5%
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82.6%
|
|
1.9
|
pts
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Delta
Mainline
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90.5%
|
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88.6%
|
|
1.9
|
pts
|
84.6%
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82.7%
|
|
1.9
|
pts
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|
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Regional
|
87.9%
|
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88.3%
|
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(0.4)
|
pts
|
80.6%
|
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77.8%
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2.8
|
pts
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Atlantic
|
85.8%
|
|
85.8%
|
|
0.0
|
pts
|
80.6%
|
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80.8%
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(0.2)
|
pts
|
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Pacific
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90.6%
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88.6%
|
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2.0
|
pts
|
87.8%
|
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85.2%
|
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2.6
|
pts
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|
Total
System
|
87.1%
|
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87.9%
|
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(0.8)
|
pts
|
84.4%
|
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84.5%
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(0.1)
|
pts
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Mainline
Completion Factor
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99.7%
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99.9%
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(0.2)
|
pts
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Passengers
Boarded
|
17,109,491
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|
17,103,034
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0.0%
|
|
107,372,749
|
|
103,754,353
|
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3.5%
|
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Cargo Ton Miles
(000):
|
170,014
|
|
192,859
|
|
(11.8%)
|
|
1,140,096
|
|
1,285,696
|
|
(11.3%)
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aResults
include flights operated under contract carrier
arrangements
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SOURCE Delta Air Lines