FIVE DELTA TRUTHS 2012 ANNUAL REPORT
5 TRUTHS OF DELTA ANNUAL REPORT
Delta Air Lines is a world-class, award-winning expert in flight, headquartered next to the busiest air travel hub in the world - Atlanta’s Hartsfield Jackson International Airport. Delta and Delta Connection carriers provide service to 61 countries, on six continents and schedule over 13,000 daily flights that will get you most anywhere in the world. We operate a mainline fleet 700 aircraft strong and employ 80,000 employees world-wide. Along with impressive operations and flying records, Delta offers customers first-class services, including BusinessElite, the SkyMiles frequent flier program and premiere Sky Clubs that make travel more comfortable in airports at home and abroad.
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5 TRUTHS OF DELTA ANNUAL REPORT
DELTA TRUTHS Predictability. Some would shy away from it, but, in this ever-evolving world, it can be difficult to keep up with the momentum and not get lost. With this in sight, Delta believes that it is important for to people know exactly where we stand, and give them the confidence that we will deliver on the expectations that have been set before us. We have a responsibility to uphold certain facts that our partners, customers and family members can rely on, no matter what. We call them the Five Delta Truths.
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DESTINATION UNBOUND
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5 TRUTHS OF DELTA ANNUAL REPORT
truth 1
strong global partnerships Trusting relationships are built through time and a show of integrity, honor and performance. Delta is recognized both domestically and internationally as an industry powerhouse and founding member of the SkyTeam Global Alliance. This successful trans-Atlantic joint venture with Air France-KLM and Alitalia has granted us a network consisting of 13,000 flights daily to over 330 destinations, in 61 countries. Operating hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis, New York, Paris, Salt Lake City and Tokyo, there is no corner of the earth left unturned. With each year, we transcend more borders.
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5 TRUTHS OF DELTA ANNUAL REPORT
truth 2
security in the marketplace To trust is to feel secure and know that you are in a safe, comfortable place. Besides having impressive flying records and employees that undergo intensive training throughout their careers, Delta continually takes measures to ensure success beyond the flight. We hold a strong place in the market, with revenues advancing 9% over last year’s numbers, despite the relentless recession. We have faith in our ability to continue on this path and our numbers show strength going forward, with a projected 11% growth for 2013. We see a clearing in the clouds, after all.
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5 TRUTHS OF DELTA ANNUAL REPORT
THE FORECAST LOOKS FAVORABLE
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5 TRUTHS OF DELTA ANNUAL REPORT
WE HAVE AN APP FOR THAT
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5 TRUTHS OF DELTA ANNUAL REPORT
truth 3
embracing technology is our obligation To move forward, we have to look back and trust that we’ve made smart decisions. This year, the Delta app won a Gold ADDY award and we were named the “Top Tech-Friendly US Airline” by PC World Magazine. We also received two Stevie Awards for our social media campaigns. We know that to continue being current, we need to listen to the public and engage them on their own terms. That’s why we have active Facebook and Twitter communities where customers can interact with real people and find solutions in the palm of their hands. As the world gets smarter, Delta stays on it’s heels.
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5 TRUTHS OF DELTA ANNUAL REPORT
CUSTOMER SATISFACTION GUARANTEED
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5 TRUTHS OF DELTA ANNUAL REPORT
truth 4
highly-esteemed on paper and in practice Trusting is having a strong feeling of loyalty. This past year, Delta received 12 Executive Travel Magazine Leading Edge awards and was named the “Domestic Airline of the Year” by readers of Travel Weekly. In 2012, we began upgrading all of our jets to include Economy Comfort seats and we are investing $3 billion through 2013 in airport facilities, global products, services and technology to enhance the customer experience. In 2011, Delta ended the year with the honor of being ranked #1 in Fortune Magazine’s list of the world’s most admired airlines. Why, you ask? Because people really like us.
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5 TRUTHS OF DELTA ANNUAL REPORT
truth 5
innovative cost-cutting measures Trust is weighing the possibilities of gain and loss and deciding in one’s favor. Delta is taking an unprecedented leap - in the summer of 2012, we acquired an oil refinery outside the city of Philadelphia. This monumental move will help reduce fuel costs by an estimated $300 million annually as the refinery will supply 80% of our total fuel needs, almost completely cutting out the middle man. No airline has ever done this before. Fact is, most companies wouldn’t have the foresight to take on such foreign territory. Delta’s actions speak loud and clear about our commitment to the future.
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5 TRUTHS OF DELTA ANNUAL REPORT
THINKING OUTSIDE THE FUEL TANK
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Now that we have exposed our truths, you know exactly where we stand as we enter 2013. These truths were backed up with more than just a promise, but with clearly stated facts that show our strength in the industry through exceptional performance, statistics, awards and progress. Delta is dedicated to making sure that these values remain intact - and this is something you can count on.
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5 TRUTHS OF DELTA ANNUAL REPORT
financial highlights
INCOME
ASSETS
REVENUE
2010 593 million
2010 41.1 billion
2010 31.7 billion
2011 854 million
2011 43.4 billion
2011 35.1 billion
Operating Revenue
Year Ended December 31,
Increase
%Increase
(Decrease) (in millions)
(Decrease)
2009
2010
Passenger: Mainline
$ 21,408
$
18,522
$ 2,886
16%
Regional carriers
5,850
5,285
565
11%
Total passengers revenue
27,258
23,807
3,451
14%
Cargo
850
788
62
8%
Other
3,647
3,468
179
5%
3,692
13%
Total operating revenue
$
31,755
$
28,063
$
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5 TRUTHS OF DELTA ANNUAL REPORT
A Message from the CEO -
the past year has been an exciting time for delta. we have made some incredible advancements and achievements in the eye of economic woes, increased fuel costs and growing competition. this success can be attributed to our strong and uniform foundation - the values delta was built on.
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5 TRUTHS OF DELTA ANNUAL REPORT
Our forward momentum has not all been monetary or prize-worthy. You have to consider the achievements we’ve made outside the limelight, things that could easily go ignored. For one, Delta has refused to cheapen our product. On the contrary, we have made additional efforts to increase the level of quality; updating fleets, in-flight programs, customer service and environmental standards. We have not made huge employee cut-backs or turned opportunity away. We have not faltered
in our promise to be a leader in flight and we certainly have not forgotten the 5 Delta Truths that make us accountable: successful partnerships, economic growth, customer satisfaction, embracing technology and taking measures to be more efficient in everything we do. With these checks and balances, we build trusting relationships with colleagues, businesses and people like you - our shareholders. As an important function of any relationship built on trust, everyone is given a voice. Please join us on June 14, 2013 for the annual Delta Shareholders meeting in Atlanta, GA. At this time, we can take a look at the past to discover more truths for our promising future together. Richard Anderson Chief Executive Officer Delta Air Lines, Inc.
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