DELTA AIR LINES, INC. 
By ATLANTA, April 23, 2014 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the March 2014 quarter. Key points include:
-- Delta's pre-tax income for the March 2014 quarter was $444 million,
excluding special items(1), an increase of $363 million over the March
2013 quarter on a similar basis.
-- Delta's net income for the March 2014 quarter was $281 million, or $0.33
per diluted share, excluding special items(1). This is $196 million
higher year over year despite $163 million of non-cash tax expense now
recognized after the reversal of the company's valuation allowance.
-- On a GAAP basis including special items, Delta's pre-tax income was $335
million and net income was $213 million, or $0.25 per diluted share.
-- Delta cancelled more than 17,000 flights due to severe weather in
January and February, double the number of flights cancelled for weather
in 2013. These cancellations resulted in $90 million of lost revenue
and $55 million lower pre-tax income.
-- Results include $99 million in profit sharing expense in recognition of
Delta employees' contributions toward achieving the company's financial
goals.
-- Delta generated $951 million of operating cash flow and $390 million of
free cash flow in the March 2014 quarter. This strong cash generation
allowed the company to reduce its adjusted net debt to $9.1 billion,
contribute more than $600 million of funding to its defined benefit
pension plans, and return $176 million to shareholders through dividends
and share repurchases.
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"The March quarter's record results in the face of unprecedented weather show the strength and resilience of Delta. By delivering the industry's best customer service, operational reliability and financial performance, Delta people continue to show that they are the very best in the business," said Richard Anderson, Delta's chief executive officer. "Our work is not finished, and there is great opportunity ahead as we expect the June quarter to produce 14% - 16% operating margins. We are transforming Delta into a high-quality S&P 500 company that consistently delivers strong earnings growth and shareholder returns."
Revenue Environment
Delta's operating revenue improved 5 percent, or $416 million, in the March 2014 quarter compared to the March 2013 quarter, despite $90 million of lost revenue due to weather-related cancellations. Traffic increased 3.5 percent on a 1.7 percent increase in capacity.
-- Passenger revenue increased 5 percent, or $357 million, compared to the
prior year period. Passenger unit revenue (PRASM) increased 3.2 percent
year over year with a 1.3 percent improvement in yield.
-- Cargo revenue decreased 9 percent, or $21 million, driven by lower
freight volumes and lower yields.
-- Other revenue increased 8 percent, or $80 million, driven by higher
joint venture and SkyMiles revenues.
Comparisons of revenue-related statistics are as follows:
Increase (Decrease)
1Q14 versus 1Q13
----------------
Change Unit
Passenger
Revenue 1Q14 ($M) YOY Revenue Yield Capacity
-------- --- ------- ----- --------
Domestic 3,734 9.4 % 7.4 % 5.3 % 1.8 %
Atlantic 1,008 (1.0) % 0.5 % (0.3) % (1.5) %
Pacific 827 (5.3) % (5.0) % (5.4) % (0.3) %
Latin America 655 18.1 % (0.1) % (1.6) % 18.3 %
---
Total mainline 6,224 6.2 % 3.6 % 2.1 % 2.5 %
Regional 1,453 (0.5) % 3.8 % 0.1 % (4.1) %
-----
Consolidated 7,677 4.9 % 3.2 % 1.3 % 1.7 %
"March quarter's top line growth of 5 percent shows the strength of Delta's revenue momentum even through the revenue loss from weather and a shift of the Easter holiday traffic into April," said Ed Bastian, Delta's president. "We see continued revenue strength as we move through the year from corporate revenue gains, the benefits of the Virgin Atlantic joint venture and improved ancillary revenues. These initiatives, coupled with a solid demand environment, should lead to unit revenue growth in the mid-single digits for the June quarter."
Cost Performance
Total operating expense in the quarter increased $18 million year-over-year driven by the impact of employee investments including $79 million higher profit sharing expense. These cost increases were almost fully offset by lower fuel expense, savings from Delta's structural cost initiatives, and receipt of a $25 million insurance claim related to Superstorm Sandy.
Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex(2)), was 0.3 percent higher in the March 2014 quarter on a year-over-year basis, driven by the impact of employee investments and 1 point of pressure from weather-related cancellations. GAAP consolidated CASM decreased 1.4 percent.
Fuel expense, excluding mark-to-market adjustments, declined $167 million as a result of lower market fuel prices and better settled hedge performance. Delta's average fuel price(3) was $3.03 per gallon for the March quarter, which includes $107 million in settled hedge gains. On a GAAP basis, consolidated fuel expense for the March quarter decreased $109 million year-over-year, driven by lower market fuel prices and mark-to-market adjustments on fuel hedges.
Operations at the Trainer refinery produced a $41 million loss for the March quarter as a result of the same lower market fuel prices that lowered Delta's overall fuel spend. During the quarter, one of the major crude units at the refinery was taken offline for scheduled modifications which lowered throughput levels. These modifications will yield a higher level of jet and diesel distillates going forward and improve the profitability of Trainer. In addition, refinery profitability was negatively impacted by an increase in Renewable Identification Numbers (RINs) expense.
Non-operating expense for the quarter increased by $66 million, driven by a $31 million seasonal loss associated with Delta's 49% ownership stake in Virgin Atlantic, an $18 million loss on extinguishment of debt driven by Delta's debt reduction initiatives, and $39 million higher foreign exchange impact, including a $23 million loss associated with the devaluation of the Venezuelan currency. These losses were offset by $34 million lower interest expense.
"The March quarter marks another quarter with non-fuel unit cost growth below 2 percent, and the growing momentum of our domestic refleeting and other cost initiatives provide the platform to maintain this performance," said Paul Jacobson, Delta's chief financial officer. "We are addressing all parts of our cost base through executing our structural cost initiatives, lowering our fuel expense with the refinery and hedging, and reducing our interest burden with additional debt reduction."
Cash Flow
Cash from operations during the March 2014 quarter was $951 million, driven by the company's March quarter profit and the normal seasonal increase in advance ticket sales. Cash from operations is net of $605 million of contributions made by Delta to its defined benefit pension plans during the quarter. The company generated $390 million of free cash flow.
Capital expenditures during the March 2014 quarter were $570 million, including $514 million in fleet investments. During the quarter, Delta's net debt maturities and capital leases were $353 million.
In the March quarter, the company returned $176 million to shareholders. On March 14, the company paid $51 million to shareholders, which represents a $0.06 per share quarterly dividend. In addition, the company repurchased four million shares at an average price of $30.94 for a total of $125 million. The company has completed $375 million of the $500 million share repurchase plan authorized by Delta's Board of Directors in May 2013.
Delta ended the quarter with $5.6 billion of unrestricted liquidity and adjusted net debt of $9.1 billion. The company has now achieved nearly $8 billion in net debt reduction since 2009.
June 2014 Quarter Guidance
Following are Delta's projections for the June 2014 quarter:
2Q 2014 Forecast
----------------
Operating margin 14% - 16%
Fuel price, including
taxes, settled hedges and
refinery impact $2.97 - $3.02
2Q 2014 Forecast
(compared to 2Q 2013)
--------------------
Consolidated unit costs -
excluding fuel expense
and profit sharing Up 0% - 2%
System capacity Up 2% - 3%
Company Highlights
Delta has a strong commitment to its employees, customers and the communities it serves. Key accomplishments in the March 2014 quarter include:
-- Recognizing the achievements of Delta employees toward meeting the
company's financial and operational goals with $114 million of
incentives so far this year, including $99 million in employee profit
sharing and $15 million in Shared Rewards;
-- Ranking in Fortune's Top 50 of the World's Most Admired Companies for
the first time in the company's history, and named as World's Most
Admired Airline for the third time in four years;
-- Unveiling of new SkyMiles program that will take effect in 2015 that
will better reward our most valuable customers for what they spend
instead of distance flown. Delta is the first of the legacy carriers to
make this transition to a revenue-based model;
-- Launching of immunized joint venture with Virgin Atlantic allowing
coordination on pricing and scheduling, and also co-locating London
Heathrow departures to Boston, New York JFK, and Seattle to Terminal 3
at Heathrow to enhance the customer experience.
-- Supporting the communities served through the Habitat for Humanity
International partnership and building 10 homes in four days on a Global
Build in the Philippines. This marks the ninth year that Delta has
partnered with Habitat for Humanity on a Global Build.
Special Items
Delta recorded a net $68 million special items charge in the March 2014 quarter, including:
-- a $31 million charge associated with Delta's domestic fleet
restructuring;
-- a $21 million mark-to-market adjustment on fuel hedges; and
-- a $16 million charge for debt extinguishment and other.
Delta recorded a net $78 million special items charge in the March 2013 quarter, including:
-- a $102 million charge for facilities, fleet and other, primarily
associated with Delta's domestic fleet restructuring; and
-- a $24 million mark-to-market adjustment on fuel hedges.
Other Matters
Included with this press release are Delta's unaudited Consolidated Statements of Operations for the three months ended March 31, 2014 and 2013; a statistical summary for those periods; selected balance sheet data as of March 31, 2014 and December 31, 2013; and a reconciliation of non-GAAP financial measures.
About Delta
Delta Air Lines serves nearly 165 million customers each year. This year, Delta was named the 2014 Airline of the Year by Air Transport World magazine and was named to FORTUNE magazine's top 50 Most Admired Companies in addition to being named the most admired airline for the third time in four years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 319 destinations in 57 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia as well as a newly formed joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Minneapolis-St. Paul, New York-JFK, New York-LaGuardia, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products, services and technology to enhance the customer experience in the air and on the ground. Additional information is available on delta.com, Twitter @Delta, Google.com/+Delta, Facebook.com/delta and Delta's blog takingoff.delta.com.
End Notes
(1) Note A to the attached
Consolidated Statements
of Operations provides a
reconciliation of non-
GAAP financial measures
used in this release and
provides the reasons
management uses those
measures.
(2) CASM -Ex: In addition to
fuel expense, profit
sharing and special
items, Delta believes
excluding ancillary
business costs is
helpful to investors
because ancillary
business costs are not
related to the
generation of a seat
mile. These businesses
include aircraft
maintenance and staffing
services Delta provides
to third parties and
Delta's vacation
wholesale operations.
The amounts excluded
were $184 million and
$185 million for the
March 2014 and March
2013 quarters,
respectively. Management
believes this
methodology provides a
more consistent and
comparable reflection of
Delta's airline
operations.
(3) Average fuel price per
gallon: Delta's March
2014 quarter average
fuel price of $3.03 per
gallon reflects the
consolidated cost per
gallon for mainline and
regional operations,
including contract
carrier operations, and
includes the impact of
fuel hedge contracts
with original maturity
dates in the March 2014
quarter. On a GAAP
basis, fuel price
includes $34 million in
fuel hedge mark-to-
market adjustments
recorded in periods
other than the
settlement period. The
net refinery loss for
the quarter was $41
million. See Note A for
a reconciliation of
average fuel price per
gallon to the comparable
GAAP metric.
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 availability of aircraft fuel; the impact of posting collateral in connection with our fuel hedge contracts; the impact of significant funding obligations with respect to defined benefit pension plans; 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 airports; our dependence on technology in our operations; disruptions or security breaches of our information technology infrastructure; the ability of our credit card processors to take significant holdbacks in certain circumstances; the possible effects of accidents involving our aircraft; 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 the 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 effects of terrorist attacks; the effects of the rapid spread of contagious illnesses; and the costs associated with war risk insurance.
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 December 31, 2013. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of April 23, 2014, and which we have no current intention to update.
DELTA AIR LINES, INC.
Consolidated Statements of Operations
Unaudited
Three Months Ended Mar.
31,
------------------------
(in millions, except per share data) 2014 2013 $ %
Change Change
--- --- ------ ------
Operating Revenue:
Passenger:
Mainline $6,224 $5,860 $364 6%
Regional carriers 1,453 1,460 (7) - %
----- ----- ---
Total passenger revenue 7,677 7,320 357 5%
Cargo 217 238 (21) (9)%
Other 1,022 942 80 8%
----- --- ---
Total operating revenue 8,916 8,500 416 5%
Operating Expense:
Aircraft fuel and related taxes 2,226 2,289 (63) (3)%
Salaries and related costs 1,969 1,911 58 3%
Regional carrier expense
Fuel 473 519 (46) (9)%
Other 846 880 (34) (4)%
Aircraft maintenance materials and outside repairs 448 491 (43) (9)%
Depreciation and amortization 442 405 37 9%
Contracted services 427 401 26 6%
Passenger commissions and other selling expenses 373 357 16 4%
Landing fees and other rents 341 323 18 6%
Passenger service 173 164 9 5%
Profit sharing 99 20 79 NM
Aircraft rent 51 60 (9) (15)%
Restructuring and other items 49 102 (53) NM
Other 379 356 23 6%
--- --- ---
Total operating expense 8,296 8,278 18 - %
----- ----- ---
Operating Income 620 222 398 NM
Other (Expense) Income:
Interest expense, net (165) (178) 13 (7)%
Amortization of debt discount, net (21) (42) 21 (50)%
Loss on extinguishment of debt (18) - (18) (100)%
Miscellaneous, net (81) 1 (82) NM
--- --- ---
Total other expense, net (285) (219) (66) 30%
---- ---- ---
Income Before Income Taxes 335 3 332 NM
Income Tax (Provision) Benefit (122) 4 (126) NM
---- --- ----
Net Income $213 $7 $206 NM
==== === ==== ===
Basic Earnings Per Share $0.25 $0.01
===== =====
Diluted Earnings Per Share $0.25 $0.01
===== =====
Basic Weighted Average Shares Outstanding 844 848
Diluted Weighted Average Shares Outstanding 853 855
DELTA AIR LINES, INC.
Selected Balance Sheet Data
(in millions) March 31, December 31,
2014 2013
--- ---- ----
(Unaudited)
Cash and cash equivalents $2,699 $2,844
Short-term investments 959 959
Restricted cash, cash
equivalents and short-
term investments 125 122
Total assets 52,167 52,252
Total debt and capital
leases, including
current maturities 11,044 11,342
Total stockholders'
equity 11,641 11,643
DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
Three Months Ended
March 31,
-------------------
2014 2013 Change
---- ---- ------
Consolidated:
Revenue passenger
miles (millions) 44,601 43,078 4%
Available seat miles
(millions) 53,904 53,022 2%
Passenger mile yield
(cents) 17.21 16.99 1%
Passenger revenue
per available seat
mile (cents) 14.24 13.80 3%
Operating cost per
available seat mile
(cents) 15.39 15.61 (1)%
CASM-Ex - see Note
A (cents) 9.77 9.75 - %
Passenger load
factor 82.7% 81.2% 1.5 pts
Fuel gallons
consumed (millions) 881 875 1%
Average price per
fuel gallon,
adjusted -see Note
A $3.03 $3.24 (6)%
Number of aircraft
in fleet, end of
period 909 719 190
Full-time
equivalent
employees, end of
period 78,870 73,430 7%
Mainline:
Revenue passenger
miles (millions) 39,567 38,018 4%
Available seat miles
(millions) 47,361 46,202 3%
Operating cost per
available seat mile
(cents) 14.33 14.53 (1)%
CASM-Ex - see Note
A (cents) 9.09 9.03 1%
Fuel gallons
consumed (millions) 729 716 2%
Average price per
fuel gallon,
adjusted -see Note
A $3.00 $3.22 (7)%
Number of aircraft
in fleet, end of
period 745 719 26
Note: except for full-time equivalent employees and number of aircraft in
fleet, consolidated data presented includes operations under Delta's
contract carrier arrangements.
Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below.
Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures.
Forward Looking Projections. Delta is unable to reconcile certain forward-looking projections to GAAP as the nature or amount of special items cannot be estimated at this time.
Net Income and Pre-Tax Income, excluding special items. Delta excludes special items from net income and pre-tax income because management believes the exclusion of these items is helpful to investors to evaluate the company's recurring core operational performance in the periods shown. Therefore, we adjust for these amounts to arrive at more meaningful financial measures. Special items excluded in the tables below showing the reconciliation of net income are:
(a) Mark-to-market adjustments on fuel hedges recorded in periods other than the settlement period ("MTM adjustments"). MTM adjustments are based on market prices at the end of the reporting period for contracts settling in future periods. Such market prices are not necessarily indicative of the actual future value of the underlying hedge in the contract settlement period. Therefore, excluding these adjustments allows investors to better understand and analyze the company's core operational performance in the periods shown.
(b) Restructuring and other items. Because of the variability in restructuring and other items, the exclusion of this item is helpful to investors to analyze the company's recurring core operational performance in the period shown.
(c) Loss on extinguishment of debt and other. Because of the variability in loss on extinguishment of debt and other, the exclusion of this item is helpful to investors to analyze the company's recurring core operational performance in the period shown.
(d) Income tax. We project that our annual effective tax rate for 2014 will be approximately 38%. Accordingly, this adjustment represents the income tax effect associated with our special items. We believe this adjustment allows investors to better understand and analyze the company's core operational performance in the periods shown.
Three Months ended
March 31, 2014 Net Income
Per Diluted Share
-----------------
Pre-Tax Income Net Three Months ended
Income Tax Income March 31, 2014
------ --- ------ --------------
GAAP $335 $(122) $213 $0.25
Items excluded:
MTM adjustments 34 (13) 21
Restructuring and other items 49 (18) 31
Loss on extinguishment of debt and other 26 (10) 16
Total items excluded 109 (41) 68 0.08
-------------------- --- --- --- ----
Non-GAAP $444 $(163) $281 $0.33
======== ==== ===== ==== =====
Three Months ended
March 31, 2013 Net Income
Per Diluted Share
-----------------
Pre-Tax Income Net Three Months ended
Income Tax Income March 31, 2013
------ --- ------ --------------
GAAP $3 $4 $7 $0.01
Items excluded:
MTM adjustments (24) - (24)
Restructuring and other items 102 - 102
Total items excluded 78 - 78 0.09
-------------------- --- --- --- ----
Non-GAAP $81 $4 $85 $0.10
======== === === === =====
Fuel Expense, Adjusted and Average Fuel Price per Gallon Adjusted. The tables below show the components of fuel expense, including the impact of the refinery and hedging on fuel expense and average price per gallon. We then exclude MTM adjustments from total fuel expense and average price per gallon because, as described above, excluding these adjustments allows investors to better understand and analyze Delta's costs for the periods reported.
Consolidated:
Average Price Per
Gallon
-----------------
Three Months Ended Three Months Ended
March 31, March 31,
--------- ---------
(in millions, except per gallon data) 2014 2013 2014 2013
------------------------------------ ---- ---- ---- ----
Fuel purchase cost $2,731 $2,844 $3.09 $3.25
Airline segment fuel hedge gains (73) (58) (0.08) (0.06)
Refinery segment impact 41 22 0.05 0.02
--- ---
Total fuel expense $2,699 $2,808 $3.06 $3.21
================== ====== ===== =====
MTM adjustments (34) 24 (0.03) 0.03
--------------- --- ---
Total fuel expense, adjusted $2,665 $2,832 $3.03 $3.24
============================ ====== ====== ===== =====
Mainline:
Three Months Ended
March 31,
---------
2014 2013
---- ----
Mainline average price per gallon $3.05 $3.19
MTM adjustments (0.05) 0.03
Mainline average price per gallon, adjusted $3.00 $3.22
=========================================== ===== =====
Cost per Available Seat Mile or Non-Fuel Unit Cost ("CASM-Ex"). We exclude the following items from consolidated and mainline CASM to evaluate the company's core cost performance:
-- Aircraft fuel and related taxes. The volatility in fuel prices impacts
the comparability of year-over-year non-fuel financial performance. The
exclusion of aircraft fuel and related taxes (including our regional
carriers under capacity purchase arrangements) allows investors to
better understand and analyze our non-fuel costs and year-over-year
financial performance.
-- Ancillary businesses. Our ancillary businesses include aircraft
maintenance and staffing services we provide to third parties and our
vacation wholesale operations. Because these businesses are not related
to the generation of a seat mile, we exclude the costs related to these
businesses to provide a more meaningful comparison of the costs of our
airline operations to the rest of the airline industry.
-- Profit sharing. We exclude profit sharing because this exclusion allows
investors to better understand and analyze our recurring cost
performance and provides a more meaningful comparison of our core
operating costs to the airline industry.
-- Restructuring and other items and MTM adjustments. We exclude
restructuring and other items for the same reasons described above under
the heading Net Income and Pre-Tax Income, excluding special items.
Consolidated CASM-Ex:
Three Months
Ended
------------
March 31, 2014 March 31, 2013
-------------- --------------
CASM (cents) 15.39 15.61
Items excluded:
Aircraft fuel and related
taxes (5.01) (5.28)
Ancillary businesses (0.34) (0.35)
Profit sharing (0.18) (0.04)
Restructuring and other
items (0.09) (0.19)
CASM-Ex 9.77 9.75
======= ==== ====
Mainline CASM-Ex:
Three Months
Ended
------------
March 31, 2014 March 31, 2013
-------------- --------------
CASM (cents) 14.33 14.53
Items excluded:
Aircraft fuel and related
taxes (4.69) (4.95)
Ancillary businesses (0.33) (0.35)
Profit Sharing (0.21) (0.04)
Restructuring and other
items (0.01) (0.16)
Mainline CASM-Ex 9.09 9.03
================ ==== ====
Adjusted Net Debt: Delta uses adjusted total debt, including aircraft rent, in addition to long-term adjusted debt and capital leases, to present estimated financial obligations. Delta reduces adjusted total debt by cash, cash equivalents, and short-term investments, resulting in adjusted net debt to present the amount of assets needed to satisfy the debt. Management believes this metric is helpful to investors in assessing the company's overall debt profile.
Three Months
Ended Year Ended
(in
billions) March 31, 2014 December 31, 2009
--------- -------------- -----------------
Debt
and
capital
lease
obligations $11.0 $17.2
Plus:
unamortized
discount,
net 0.4 1.1
--- ---
Adjusted
debt
and
capital
lease
obligations $11.4 $18.3
Plus:
7x
last
twelve
months'
aircraft
rent 1.4 3.4
--- ---
Adjusted
total
debt 12.8 21.7
Less:
cash,
cash
equivalents
and
short-
term
investments (3.7) (4.7)
---- ----
Adjusted
net
debt $9.1 $17.0
==== =====
Free Cash Flow: Delta presents free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives.
Three Months
Ended
(in millions) March 31, 2014
------------ --------------
Net cash provided
by operating
activities $951
Net cash used in
investing
activities and
other (561)
Total free cash
flow 390
=============== ===
Capital Expenditures, Net: Delta presents net capital expenditures because management believes this metric is helpful to investors to evaluate the company's investing activities.
Three Months
Ended
(in millions) March 31, 2014
------------ --------------
Flight equipment, including
advance payments (GAAP) $514
Ground property and
equipment, including
technology (GAAP) 100
Adjustment:
Virgin Atlantic
distribution (44)
Capital expenditures, net $570
========================= ====
Net Debt Maturities and Capital Leases: Delta presents net debt maturities and capital leases because management believes this metric is helpful to investors to evaluate the company's debt related activities and cash flows.
Three Months
Ended
(in millions) March 31, 2014
------------ --------------
Payments on long-
term debt and
capital leases $412
Proceeds from long-
term obligations (59)
------------------- ---
Net debt maturities
and capital leases 353
=================== ===
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SOURCE Delta Air Lines
