Delta Air Lines annual report 1948

Collection:
Delta Air Lines Annual Reports
Title:
Delta Air Lines annual report 1948
Creator:
Delta Air Lines, Inc.
Date of Original:
1948-10-04
Subject:
Annual reports
Corporation reports
Delta Air Lines
Finance
Investor relations
Corporations--Investor relations
Location:
United States, Georgia, Fulton County, Atlanta, 33.749, -84.38798
Medium:
annual reports
Type:
Text
Format:
application/pdf
Metadata URL:
https://dlg.usg.edu/record/delta_dal-ar_dal-ar-1948
Digital Object URL:
http://dlg.galileo.usg.edu/do:delta_dal-ar_dal-ar-1948
Language:
eng
Bibliographic Citation (Cite As):
Cite as: [Title], Delta Air Lines Serial Publications, Delta Flight Museum
Original Collection:
Delta Air Lines Serial Publications
Holding Institution:
Delta Flight Museum
Rights:
Rights Statement information

T
HIS combination map shows all
the present Delta routes as cer
tificated by the Civil Aeronautics
Board, plus the approved inter
change routes and all new route
applications. In order to show the
basic route patterns, non-stop oper
ations with seasonal variations have
been omitted.
YOUR company, during the fiscal year which
ended June 30, 1948, realized a net profit
from its operations of $204,729 as compared with
a net loss of $310,249 for the previous fiscal year.
This result is encouraging when it is remembered
that it was achieved notwithstanding a broad
trend evident in the airline industry of decreas
ing passenger traffic, coupled with rising costs.
This industry trend continued through all of the
fiscal period covered by this report and losses in
the industry were the rule rather than the
exception.
At the end of our fiscal year, your company
was operating on the profit side. Its financial
structure was sound. Income was better balanced
between passengers, mail, and cargo. A major
plant expansion program had been completed,
and Delta was ready to take delivery on its new
fleet of fast, luxurious DC-6 aircraft. The profit
shown for the year was the result of reducing
expenses wherever possible, a general re-arrange -
ment of schedules, and an adjustment in our rate
for carrying mail.
The early part of the year was marked by a
rather high frequency of flight schedules in an
effort to attract business. With the approach of
the Florida winter season, additional schedules
were put on to assure Delta its share of the
Florida winter traffic. Not only did airline traffic
generally continue to decline, but the Florida
traffic failed to materialize in the volume antici
pated. To these disappointing factors was added
a third, namely that we encountered one of the
severest winter seasons from a standpoint of
weather that we have experienced in Delta terri
tory in many years.
Faced with continuing low load factors and the
tapering off of the already disappointing Florida
season, it was your management's decision to
reduce expenses by curtailing the number of
schedules flown and discontinuing entirely cer
tain schedules which experience had shown were
not profitable.
This reduction in expense through curtailment
of schedules was still under way as the fiscal year
ended, and efforts will be continued to bring
service in line with demand. However, it is not
possible for your company to confine its opera
tions to only profitable schedules because our
Certificates of Public Convenience and Necessity
carry with them the obligation to provide public
service notwithstanding that the rendition of
such service may at times and on some schedules
and over certain route segments be unprofitable.
Generally, schedules have been curtailed as far
as possible, consistent with maintaining adequate
service to both old and new route points.
NEW POINTS SERVED
Eight new cities were added to Delta's routes
during the year, while the Delta-TWA through-
plane interchange service called for still another
pattern of schedules and equipment operation.
File fiscal year opened with new service to
four new cities. These were Macon, between
Atlanta and Savannah; Columbus (Ga.) and
Montgomery, between Atlanta and New Orleans;
and Chattanooga, between Atlanta and Cincin
nati. In each instance, the new cities provided
Operating Expense
TOTAL $12,618,944
Salaries, Wages
and Employee Welfare . . . $6,382,848
Aviation Gasoline and Oil.... 1,501,971
Maintenance Materials
and Outside Repairs 988,336
Depreciation
Communications Expenses
and Office Supplies . .
Passenger Expenses
Insurance
> Taxes
Advertising
Rentals and Landing Fees.
Travel Expenses
Outside Services
Miscellaneous
1,016,931
336,578
363,906
246,062
395,309
264,880
355,035
262,031
269,121
235,936
us with a second and alternate routing between
the points named.
Other new stations added during the year were
Kokomo and Richmond, Indiana; Longview-
Kilgore, Texas; and Hattiesburg, Mississippi.
Some of these points were requested by Delta
and others were certificated to us by the Civil
Aeronautics Board pursuant to our common car
rier obligation to provide public service. The
net effect, however, was that eight new field
stations and four new city ticket offices were
required to serve these cities. The addition of
the cities has had a dual effect. For the long
term, the Delta route structure has been strength
ened. On a short term basis, some of the cities
represent a deficit operation until their traffic
potential can be fully developed. The cost of
station operations in cities of this size is relatively
quite expensive compared with the revenue de
rived therefrom.
INTERCHANGE SERVICE
The Delta-TWA through-plane interchange
service was put into effect on June 1, 1948,
giving passengers from the cities on Delta's system
one-plane service to the TWA cities of Detroit,
Toledo, Dayton, and Columbus (Ohio). The
traffic over this interchange route has been de
veloping at a satisfactory rate in spite of the
fact that we are currently prohibited from
providing through-plane service between New
Orleans and Detroit. The approval by the Civil
Aeronautics Board of the interchange agreement
plus the new route into New Orleans from
Meridian had the effect of making possible a
direct one-plane service between New Orleans
and Detroit. When this service was offered, it
was protested by Chicago & Southern Air Lines,
Inc., and Delta was enjoined from offering this
service. Delta appealed the restriction and a
decision on it is now pending.
At this time, the Delta-TWA through-plane
interchange is the only interchange operating
within the United States.
Recently, and subsequent to the close of the
fiscal year, your company has entered into an
interchange agreement with American Airlines,
Inc., whereby through-plane interchange service
will be offered between the West Coast and the
principal cities in the southeast. The approval
of the agreement by the Civil Aeronautics Board
is necessary before this service may be inaugu
rated, and the agreement has now been filed with
the Board for its approval.
NEW ORLEANS ROUTE
The entry mileage into New Orleans from
Meridian was the only route mileage certificated
to Delta in the Boston-New York-Atlanta-New
Orleans Case which began more than five years
ago. While the decision was disappointing in
that Delta was denied a much needed route from
Atlanta to Washington and New York, the
Meridian cut-off is an advantage from an opera
tions standpoint and did create several new
route patterns. It created a Delta route between
New Orleans and Cincinnati for the first direct
air service between those two cities. It permits
of better routing and utilization of aircraft and
eliminates the former turnaround at New
Orleans on flights from Fort Worth.
MERGERS
Toward the end of the fiscal year, discussions
were begun with the management of National
Airlines on the possibility of a merger. Commit
tees representing the directors of each company
met to work out the many problems involved, to
evaluate properties, and to make recommenda
tions to their directors for final reference^ f,o
stockholders. Thus far, no definite agreement
has been reached and the matter is still in a
negotiation stage.
Although the proposed consolidation is a very
complex problem, many advantages to both com
panies woidd be gained from it. The two systems
fit logically into each other. From an operational
standpoint and from the standpoint of invest
ment in aircraft, spare parts, and other equip
ment, there would be many economies. The
consolidation of field stations and ticket offices
in cities common to both systems would in itself
result in substantial savings.
There have been no major airline mergers
since the Civil Aeronautics Act was passed in
1938; there are few legal or financial precedents
for such a move, and progress is necessarily slow.
Distribution of Transportation Revenues
ROUTE DECISIONS AND APPLICATIONS
Pending before the Civil Aeronautics Board
are these cases:
1. Addition of St. Petersburg-Clearwater, Flor
ida, as an intermediate point between Jackson
ville and Miami. This has been made a part
of the Additional Florida Trunk Line Service
Case.
2. An extension from Cincinnati to Washington
via Pittsburgh and from Cincinnati to Norfolk
via Portsmouth, Ohio; Huntington and Charles
ton, West Virginia; and Charlottesville and Rich
mond, Virginia.
3. A proposal to close the present gap in Routes
24 and 54 between Charleston and Savannah.
4. A proposal to form a connecting link between
Monroe and Baton Rouge.
5. Consideration of a Birmingham-Memphis
route; this was part of Delta's Kansas City-
Memphis-Florida Case in which the over-all
application was denied, but this one segment
was deferred by the Civil Aeronautics Board for
its consideration in the Through Service Inves
tigation Case which the Board recently instituted
involving the possibilities of various interchange
arrangements at Memphis and St. Louis.
6. The West Coast Applications consisting of an
application for a direct route to Los Angeles
from Dallas and Fort Worth, with Houston as
an additional intermediate point between New
Orleans and Dallas, and an application for a
route from New Orleans to Los Angeles via
Houston and San Antonio.
You will find the route pattern of all these
cases outlined on the Delta system map.
PASSENGER TRAFFIC
39 40 4) 43 43 44 4S 46 47 48
OPERATING EXPENSES AND PROFIT PER PLANE MILE
OPERATING EXPENSES AND PROFIT PER TON MILE
$100
.90
80
.70
.60
.50
.40
.30
.20
The total number of revenue passengers car
ried and revenue passenger miles flown were
below those of the preceding year although hold
ing far above the pre-war and war years' totals.
The industry as a whole showed the same general
trend.
We carried 493,608 passengers in the 1948
fiscal year, as against 568,289 the preceding year.
Available seat miles were 4 per cent higher, so
that the total effect was to decrease the load
factor from 66.35 per cent in 1947 to 53.92 in
1948.
The slump in winter tourist traffic, increased
competition from other airlines and also from
surface carriers, plus increased travel by private
automobile, were among the principal factors
affecting traffic.
When the new Douglas DC-6's are put in
service, DC-3 and DC-4 schedules will be syn
chronized at connecting points. This will enable
Delta to offer improved and faster service, and
should contribute to increased passenger reve
nues in 1949.
PASSENGER FARES
In all, there now have been three fare increases
since the end of the war. One increase was made
over a year ago. The second came during the
past fiscal year, and brought fares up to 5*4
cents a mile. Then, subsequent to the close of
Each dot on chart above represents one seat in a passenger plane. Not
shown as part of fleet are two all-cargo planes which carry no passengers.
the fiscal year, another increase of approximately
10 per cent was instituted by nearly all of the
industry, including Delta. At the same time,
Delta offered a discount of 5 per cent on all
round trips.
AIR FREIGHT
Our experience in handling air freight during
the past year indicates that this phase of our
business will become a very important factor in
producing revenue. In the past fiscal year, freight
pound miles increased 251 per cent.
We now have two C-47 all-cargo "Flying
Freighters'' operating between Chicago-Cincin-
nati - Atlanta - Birmingham - New Orleans -Dallas-
fort Worth. All scheduled passenger flights also
carry air freight.
Up to the present time, the preponderant ton
nage has been southbound. To equalize direc
tional loads, and thus help maintain the present
low rates per ton mile, Delta offers a special
discount to shippers of fresh fruit and vegetables
from points on the southern end of the routes.
I his traffic is growing slowly, but is expected to
increase as marketing methods improve.
All in all, the air freight picture is optimistic.
Between many pairs of points, air freight is now
actually less expensive than first-class rail express
per 100 pounds. With costs approximately equal
via air or rail, shippers are turning more and
more to regular volume use of air freight.
Air mail is now carried by Delta on a sliding scale
of pay, with return adjusted to match load factors.
Air express revenues held up very well during
the year, showing a gain of 29 per cent. With
both air freight and air express, Delta is able
to offer a well-rounded cargo program to fit the
needs of shippers.
AIR MAIL
Details of Delta's new rate for the carriage
of mail are covered in the "Financial and Statis
tical'' paragraphs which follow. From a straight
traffic standpoint, mail pound miles flown in
creased 20 per cent for the year. Over the entire
system, the average mail load per mile was 132.8
pounds in 1948, as against 119.6 pounds in 1947.
Since the end of the fiscal year, air parcel
post service has been offered to the public. This
is a development the airlines have worked for
over a period of many years. Public acceptance
Delta DC-4's can carry 7,000 pounds of air freight Two all-cargo C-47 "Flying Freighters" with wide
on regular flights, plus full load of 44 passengers. doors for bulk loads operate between seven cities.
of this new fast service, in the few weeks it has
been available, has been very encouraging.
FINANCIAL AND STATISTICAL
Total revenues increased for the fiscal year
1948, as compared to 1947, even though there
was a decrease in passenger revenues of approxi
mately $475,000.
In 1947, total revenue was $11,488,836
In 1948, total revenue was $12,818,969
Air freight and air express accounted for some
of this gain, but the principal portion of it came
from a new rate of mail pay, retroactive to
September 9, 1947.
Delta's new rate of mail pay is on a sliding
scale basis per plane mile flown, and increases
or decreases according to passenger load factors.
When passenger traffic is up, the mail rate
moves down. Conversely, it moves up on a
graduated scale if passenger traffic declines. How
ever, the scale is so constructed that the over-all
return to Delta increases with increased load
factors, thus creating a steady incentive to in
crease non-mail revenue and to hold costs down.
The future rate should give us a fair return on
our investment, if costs do not increase too much
above current levels.
In the detailed figures of the year's operations,
you will note that expenses went up $700,000.
You will also note that miles flown increased
from 12,211,746 in 1947 to a total of 13,084,553
in 1948. However, the increase in expenses was
not analogous to the increase in miles flown.
There actually was a decrease in cost per revenue
mile flown from $1.0075 in 1947 to $ .9856 in
1948. This decrease was accomplished by cutting-
expenses in every way possible without affecting
the safety and efficiency of our operation.
Whereas the cost per mile flown went down,
due to greater efficiency, the over-all expense
levels went up at a sharp rate. Gasoline alone
increased a third in price. Materials costs went
up with each round of national wage increases.
There was also a general salary increase of
approximately 15 per cent in the early part of
the year. This was necessary to compensate for
the increased cost of living.
On November 16, 1947, the Loan Agreement
which we had with the Citizens 8c Southern
National Bank, Atlanta, Georgia, and the other
eleven participating banks, was extended for
another year under the same terms, thereby
leaving us $3,500,000 yet to be taken down under
the agreement. Shortly after the end of the
fiscal year, $500,000 additional was borrowed
against the loan and the balance of $3,000,000
was borrowed before the expiration of the agree
ment on November 16, 1948, for the completion
of the purchase of the five Douglas DC-6 air
planes and the attendant spare parts. The loan
is repayable in quarterly installments over a
period of five years from the date of borrowings
and bears interest at the rate of 21/2% per annum.
After examining our books for the fiscal years
ending June 30, 1944, 1945, 1946, and 1947, the
Bureau of Internal Revenue made an additional
income tax assessment against us. The Bureau
would not accept our depreciation rate based
upon a three-year life for Douglas DC-4 aircraft,
but instead assigned a life of four years to the
DC-4's. This and other minor adjustments re
sulted in an assessment of approximately $150,000
in added income taxes for the four years. This
Delta DC-6's ore the most modern airliners ever to go
in service. There ore none foster, none finer, to and
through the South.
has been treated on the books of the corporation
as a charge to earned surplus.
It was the decision of management, inasmuch
as the Bureau of Internal Revenue and the Civil
Aeronautics Board (for rate making purposes)
both had assigned a four-year life to DC-4 air
craft, that our records also be changed to reflect
a four-year life. Therefore, there was a credit
to earned surplus as a result of this decision of
approximately $350,000 for previous fiscal years.
Earned surplus as of June 30, 1948, was $978,724
as compared to $572,372 at the beginning of the
year. The above-mentioned adjustments and the
addition to surplus of the net income for the
year in the amount of $204,729 make up the
major changes in earned surplus for the year.
There was no change during the fiscal year
in the amount of capital surplus.
The detailed Balance Sheet as of June 30,
1948, Profit and Loss Statement for the year
ended June 30, 1948, and Earned Surplus State
ment are included in this report.
EQUIPMENT
The aircraft fleet operated by your Company
during the past fiscal year consisted of 17 Douglas
DC-3's, 7 Douglas DC-4's, and 2 Douglas C-47
air freighters. The DC-3, as you know, is a
21-passenger ship. The D-4's are limited to 44
seats in order to provide added passenger comfort
and convenience. Your company owns all of
these aircraft with the exception of 4 DC-3's and
1 C-47 which are leased from the government.
One DC-4 aircraft was destroyed in Chicago
in March. This airplane was fully covered by
insurance and was immediately replaced.
Return Per Revenue Passenger Mile
(in cents)
A main asset of Delta Air Lines is skilled
group of employees with years of service.
Number of Employees
and Length of Service
1111
Your fleet thus consists of one more DC-3
than during the 1947 fiscal year, and gives Delta
a total passenger lift of 665 seats. The addition
of the five 56-passenger DC-6's during December,
1948, not only will provide needed competitive
advantages, but will give Delta the elasticity to
meet increased service demands. The disposition
of some or all of the DC-4 fleet has not been
determined as of this writing, but will depend
upon airport requirements and traffic pattern
and growth.
The new Douglas DC-6's will be the finest
and fastest aircraft flying in commercial services.
They are a needed and vital factor in the growth
and progress of your company. For your interest
and information, a two-page section featuring
these new planes has been included in this report
following the financial pages.
FACILITIES
New hangars, shops, and office buildings at
the Atlanta Municipal Airport were occupied
soon after the beginning of the fiscal year.
Grouping all major facilities in one compact
plant added new efficiency to operations, main
tenance, and administration. With more space,
several new maintenance features were added
which enabled your company to save money on
several functions which were formerly sublet.
In Chicago, a hangar constructed jointly with
Chicago & Southern Air Lines was completed
this past spring and will greatly aid winter
operations this year.
Modern, efficient ticket offices were opened in
Chicago, Miami, and Dallas, to attract more sales
and maintain Delta's position from a competitive
standpoint.
EMPLOYMENT
There was almost no change in the employ
ment total during the past year. At the end of
the fiscal period, we had 12 more persons on
the payroll than a year earlier. Turnover is now
down to the figure of 2 per cent per month.
Delta employees are staying with Delta; we now
have more employees with experience who are
able to fill responsible jobs as the system grows.
Delta employees are our most important asset.
In order to help employees meet costs in the
event of hospitalization due to illness, we ar
ranged for an increase in this phase of our group
insurance during the year.
STOCKHOLDERS
It might be interesting to the owners of the
company to know that there are approximately
1,600 stockholders, with an average holding of
approximately 300 shares.
Assets
Delta Air
Balance Sheet
CURRENT ASSETS
Cash Working Funds $ 12,260.00
Cash in Banks and in Transit 572,095.94
IJ. S. Government Securities--At Cost $ 450,000.00
Accrued Interest on U. S. Securities 2,088.63
Accounts Receivable:
U. S. Government $1,612,543.16
Traffic 980,230.83
Affiliated Companies 11,052.49
Trade Accounts 194,899.01
Estimated Express Revenue 24,189.40
Employees 17,181.30
Inventories
TOTAL CURRENT ASSETS
OTHER ASSETS
Stocks--Affiliated Companies $ 25,871.00
Deposits--Postage, Utilities, Etc 1,778.35
PROPERTY AND EQUIPMENT (Note 1) Depreciation Book
Cost Taken Value
Airline $6,593,883.66 $2,985,906.76 $3,607,976.90
Dusting Division 90,142.58 41,980.79 48,161.79
Construction Work in Process:
Flight Equipment 686,918.85 686,918.85
Other Equipment 14,859.38 14,859.38
$7,385,804.47 $3,027,887.55 4,357,916.92
PREPAID EXPENSES AND
DEFERRED CHARGES
Insurance $ 57,119.70
Rentals 186,453.93
Other 41,657.99
$ 584,355.94
452,088.63
2,840,096.19
805,488.30
$4,682,029.06
27,649.35
4,357,916.92
285,231.62
$9,352,826.95
Balance Sheet Notes, June 30, 1948
Note 1--EQUIPMENT AND RESERVE FOR DEPRECIATION
In the fiscal year just ended, the Internal Revenue Department,
reduced the allowable rates of depreciation on the DC-4 airplanes
and engines and the DC-3 airplanes for the fiscal years 1944 through
1947. The records have been adjusted to show these changes, which
reduced the accumulated depreciation reserves as of June 30, 1947,
by $353,619.56. Effective July 1, 1947, the Company voluntarily
reduced the depreciation rates on DC-4 radio equipment and pro
pellers so that all DC-4 equipment would he fully depreciated at
the same time.
Note 2--NOTES PAYABLE
The Company owes the Citizens and Southern National Bank,
Atlanta, Georgia, $1,125,000.00 on a note dated January 6, 1947,
due January 6, 1952, bearing interest at 2/%. The note is payable
at the rate of $75,000.00 each three months, the next payment being
due July 6, 1948.
Phis loan was made under a loan commitment agreement with the
Citizens and Southern National Bank. Under this agreement the
hank, for itself and in behalf of the several participating banks,
agreed to make loans to the Company in an aggregate principal of
five million dollars in the period of twelve months from November
16, 1946. Any loan thus made bears interest at 2/% and is
repayable in twenty equal quarterly installments. The company is
Lines, Inc.
Atlanta, Georgia
June 30, 1948 Liabilities and Capital
CURRENT LIABILITIES
Notes Payable (Note 2)
Accounts Payable:
Trade $ 561,959.23
Ticket Refunds 7,821.78
Traffic Accounts 618,409.31
Employees 5,194.24
Employees--Bond Credits 5,407.39
Taxes--Federal Transportation 124,999.39
Taxes--Employees' Income 44,032.02
Taxes--Employees' Social Security 14,796.04
Taxes--Federal and State Income for Prior Years 151,353.61
Employees' Benefit Fund
Air Travel Plan Deposits
Accrued Expenses:
Salaries and Wages $ 55,979.78
Interest 28,746.03
Taxes--Federal and State Income for Current Year 102,342.86
Taxes--Property and Social Security 46,352.74
TOTAL CURRENT LIABILITIES
LONG TERM DEBT (Note 2)
Notes Payable--due after 12 months
DEFERRED CREDITS AND RESERVES
Unearned Transportation Revenue $ 110,545.90
Unearned Rent 131.66
Reserve for Aircraft Overhaul 40,107.25
$ 300,000.00
1,533,973.01
1,393.94
112,200.00
233,421.41
$2,180,988.36
825,000.00
150,784.81
CAPITAL STOCK ($3.00 Par Value)
Authorized 1,000,000 Shares
Issued and Outstanding, 500,000 Shares $1,500,000.00
CAPITAL SURPLUS 3,717,329.20
EARNED SURPLUS 978,724.58 6,196,053.78
$9,352,826.95
obligated to pay a commitment fee of 54% on the unused balance
of the five million dollars. As of June 30, 1948. $1,500,000.00 of
the commitment had been used. The agreement provided that it
might be extended for an additional twelve months, and it has been
extended to November 16, 1948.
Note 3--CONTINGENT LIABILITIES
We have ascertained that the Company had the following contingent
liabilities at June 30, 1948.
The State of Georgia and the Company are engaged in a controversy
over the method of proration used by the Company in reporting
income to Georgia for income tax purposes. A possible assessment
of approximately $30,000.00 of additional income taxes for the
fiscal years 1944 to 1947 is involved.
A suit for $211,700.00 has been filed against the Company for the
death of Mr. Fussell, who, while flying a smaller plane, wras killed
in a collision with one of the Company's planes at Columbus,
Georgia, in April, 1947.
A suit for $600,000.00 has been filed by Mrs. Tripolina Meo who
was injured in a crash of one of the Company's DC-4 planes at
Chicago, March 10, 1948. Other suits may be filed against the
Company on account of this crash, in which nine passengers lost
their lives.
Note 4--PURCHASE COMMITMENTS
The Company has entered into a purchase agreement for five
Douglas DC-6 planes which will cost approximately $3,500,000.00,
on which advance payments totaling $606,916.00 have been made.
Six spare engines for the DC-6 planes have also been ordered at a
total cost of $164,000.00.
Statement of Income, Profit and Loss
Year Ended June 30, 1948
REVENUES
Passenger $10,079,272.25
Mail (Note 1) 2,010,668.26
Express 273,099.17
Freight 303,114.28
Excess Baggage 120,678.94
Non-Scheduled Transportation 11,032.90
Other Transportation Revenues 1,293.73
Incidental Revenues 19,809.53
Total Operating Revenues.
EXPENSES
$12,818,969.06
Flying Operations $ 3,341,301.04
Direct Maintenance--Flight Equipment 1,612,722.17
Depreciation--Flight Equipment (Note 2) 862,156.18
Ground Operations 2,185,404.09
Ground & Indirect Maintenance 856,334.35
Passenger Service 897,270.30
Traffic & Sales 1,448,276.32
Advertising & Publicity 319,882.06
General & Administrative 944,799.38
Depreciation--Ground Equipment 150,798.49
Total Operating Expenses $12,618,944.38
Net Operating Income $ 200,024.68
OTHER INCOME
Cash Discounts $ 10,539.64
Interest Income 14,249.26
Net Profit on Retirements of Operating Equipment ,, 147,763.35
Other Non-Operating Income 41,861.23 214,413.48
OTHER DEDUCTIONS
Interest Expense
Extension & Development Expense.
Net Loss--Dusting Division
Other Non-Operating Expense
Net Income
INCOME TAXES
Federal
States
NET ADDITION TO SURPLUS
Note 1--MAIL REVENUE
The Civil Aeronautics Board recently granted the Company an
increase in its mail pay rate from September 9, 1947. This raised
the Mail Revenue $1,500,436.18 for the current year. From a
comparison of mail pay under the old and new rates for April,
May and June, 1948, it appears that the monthly mail revenues
will be increased 400% to 500%.
.... $
$
62,472.33
23,435.50
19,627.90
1,829.84
414,438.16
107,365.57
$ 307,072.59
.... $ 92,989.65
9,353.21 102,342.86
$ 204,729.73
Note 2--DEPRECIATION-FLIGHT EQUIPMENT
As a result of the changes in rates of depreciation on flight equip
ment, discussed in the balance sheet notes, the charges for depreci
ation in the current year were $63,021.98 less than they would have
been had no changes been made.
COX. T "
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cot '^0.*"""
^ *^o,NC
October
U, 1948
Auditor's Statement
j Stockholders
, , Directors and Sto
Air ^ne3' ln`
So, oeorel.
Earned Surplus June 30, 1948
Credit Balance, July 1, 1947 $ 572,372.77
Add: Net Income for Year Ended June 30, 1948,
after Income Taxes $ 204,729.73
Adjustments in Depreciation for Prior Years 353,619.56 558,349.29
$1,130,722.06
Less: Additional Federal and State Income Taxes
for Prior Years 151,997.48
Credit Balance, June 30, 1948 $ 978,724.58
The most modern airliners of the nation have
begun operations over the routes of Delta since
the end of the fiscal year. The new "300 Plus"
fleet of Douglas DC-6's serves Chicago, Cincin
nati, Atlanta, Jacksonville and Miami, and start
ing New Year's Day are to begin flights from
Atlanta to New Orleans and Dallas.
Delta's DC-6's are the newest of the type in
operation; they have 115 major improvements
not found on the original models, and in addi
tion to these mechanical items they also have
set a new standard for passenger comfort.
Each plane has a capacity of 56 passengers, in
cluding six seats in the Sky Tounge. However,
these six seats are not sold but are used as an
extra sales attraction, since they enable more
passengers to use the lounge in flight and give
all persons aboard more room to relax.
There are no triple seats on these planes, only
pairs, with four seats facing at the head of each
aisle. The passenger section is divided into two
cabins, to eliminate any "day coach" vista of a
long, unbroken row of seats. Lighting, heating,
ventilation, foam-rubber seats, hand-rubbed wal
nut paneling, soft rugs and real leather--44 hides
to a plane--all add up to a new standard of luxu
rious comfort.
A "300 Plus" Theme
There are no faster planes in the nation to
day, and there are none finer than Delta's. With
a speed of over 300 miles an hour to match any
competitive schedules, and with the extra com
fort of the Deltaliners, a theme of "300 Plus" was
used to introduce these planes to the public. In
all advertising and promotion, the theme was
that aboard these planes passengers could enjoy
travel at over 300 miles an hour, plus spacious
comfort and luxurious surroundings.
One of the most thorough promotion cam
paigns ever adopted by any airline preceded
scheduled operations. It included national and
local advertising in magazines and newspapers,
radio, television, billboards, window displays,
posters, direct mail, courtesy flights, press trips,
post cards, first flight certificates, employee train
ing and special promotion with travel agents.
In as far as possible, DC-3 and DC-4 schedules
DC-6's first flew with crew of four, but new regula
tions now call for flight engineer as fifth member.
Six-place Sky Lounge
at right is an extra
sales feature of DC-6's.
ALL SCATS IN PAIRS
AFTER CABIN
PRESSURIZED "AIR CONDITIONED" CABIN
FORWARD CABIN
LARGE PICTURE WINDOWS
SKY LOUNGE
REVERSIBLE PROPELLERS
GALLEY
DARK BLUE NACELLES
RADIO COMPARTMENT
BAGGAGE COMPARTMENT ENGINES 2100 H.P. EACH
REST ROOMS
HEATED LEADING EDGE FOR DE-ICING
are arranged to connect at key terminals with
DC-6 trips, to feed long-haul traffic to them.
Flight times have been cut on long trips as a
result, in some cases as much as four hours. The
DC-6's have also permitted improvement in other
schedules, such as DC-4 operations from Miami
to Detroit, via the interchange route, for the first
time.
The Chicago-Miami non-stop also now makes
it possible for Delta to take part in luxury one-
stop service to Miami from such points as San
Francisco, Denver, Omaha, Minneapolis and
Toronto. This is expected to play an important
part in generating connecting traffic.
FOAM RUBBER UPHOLSTERED SEATS
DC-6's feature individual tables
for meals. Tables also for games.
New Atlanta terminal, shown here before opening,
gives Delta greatly needed space. Outside, there
is more space for planes and spectators.
Spacious and modern design of the Chicago office
helps maintain Delta's competitive position, identi
fies it as a major airline.
In Miami, this modern office was also opened during
fiscal year. It is in the Columbus Hotel building,
in the heart of downtown Miami.
NEW, MODERN OFFICES
HELP BUILD DELTA SALES
Delta now maintains city ticket offices in 26
cities, including Miami Beach, and during the
past fiscal year three of the offices were moved
into larger, modern and more efficient quarters.
Shown here are the new offices in Miami and
Chicago. The third major opening of the year
was in Dallas.
These new offices, of great benefit to Delta
sales work, are now among the finest in the
entire air transportation industry.
Delta's ticket office in Chicago is on "Airline Row",
conveniently located near leading hotels, shopping
centers and the business area.
General Office!.-
Delta Air Lines Building
Municipal Airport, Atlanta, Georgia
Transfer Agent.-
Citizens & Southern National Bank
Atlanta, Georgia
Registrar:
Trust Company of Georgia
Atlanta, Georgia
C. E. Faulk, Chairman
M. S. Biedenharn
Richard W. Courts
R. W. Freeman
Edward H. Gerry
L. B.Judd
C. H. McHenry
Winship Nunnally
Travis Oliver
Laigh C. Parker
Richard J. Reynolds
D. Y. Smith
C. E. Woolman
C. E. Woolman
President and General Manager
Laigh C. Parker Charles H. Dolson
Vice President of Traffic Vice President of Operations
M. S. Biedenharn
Vice President
Travis Oliver
Treasurer
C. H. McHenry
Secretary
L. B.Judd
Comptroller
Catherine FitzGerald
Assistant Treasurer

Locations