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