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AND BAGGAGE CHECK 
FLIGHT COUPON NO. 
Forl'l't Serio I 
DATE ANO PLACE OF ORIGINAL ISSUE 
AC( 
JUN 301 
58 
DATE TIME sr~ius 
DELTA AIR LINES, INC. 
UNIFORM AIRBILL 
NON-NEGOTIABLE 
FROM 
(CONSIGNOR) 
AMERICAN METAL WORKS 
CONSIGNOR'S STREET ADDRESS 
4616 E. 55TH STREET 
CllY ZONE STATE 
CHICAGO 32 ILLINOIS 
BY I CONSIGNOR'S No. 
X 
w. A. CROUCH BELOW 
DECLARED VALUE Agreed and understoocf to be not more than the value stated in the 
s RELEASED fGVtrning tariffs for ea,h pound on which ,horges are asse~sed, un- 
less a higher value ii declared ond appli<oblo chorgos pahf'thereon. 
TO 
Sl 
CONSI 
HC 
CITY 
HC 
DESTII' 
HC 
ROUTIN 
RECEIVED BY CARRIER AT (CHECK ONE) DELIVERY will be 1110cle to ttM 
Mrvice i availab'4 
 CONSIGNoRs 
DOOR 
 CITY 
TERMINAL 
~AIRPORT 
TERMINAL 
 CITY 
TERMINAL 
No. of Pieces DESCRIPTION OF PIECES AND CONTENTS 
WE 
PACKING-MARKS-NUMBERS 
1 CTN MK 1821 
 COMPARATIVE SUMMARY OF OPERATIONS 
Operating Revenues ......... . ......... . 
Operating Expenses (excluding 
depreciation) ................... . 
Operating Income (excluding 
depreciation) . .. . .. . .. ...... . ... . 
Depreciation ......................... . 
Operating Income after depreciation .. 
Net Income from Operations, after Taxes 
and other charges . . . . . . . . . . . . . . . . . . 
Total Earnings . . ........... . ..... . ... . 
Shares Outstanding ................... . 
Earnings per Share ... . ................ . 
Cash Dividends Paid . . ............... . . 
Dividends per Share . .. ........ ... . . .. . . 
Total Stockholder Equity .............. . 
Stockholder Equity per Share .......... . 
Revenue Passengers Carried ... .. ....... . 
Available Seat Miles (000) .......... . .. . 
Revenue Passenger Miles (000) ......... . 
Passenger Load Factor .......... . . . ... . 
Average Return per Passenger Mile ..... . 
Number of Employees .. ............... . 
1958 
$88,173,000 
$76,277,000 
$11,896,000 
$ 9,354,000 
$ 2,542,000 
$ 932,000 
$ 1,063,000 
1,122,045 
$ .95 
$ 1,009,791 
$ .90 
$34,020,000 
$30.32 
2,728,220 
2,479,428 
1,408,857 
56.82 % 
5.69 
6,058 
THE COVER: 
The various tickets, 
receipts and forms 
illustrated on this 
year's cover depict 
the principal sources 
from which Delta 
derives its revenue. 
YEARS ENDED JUNE 30 
1957 1956 
$78,596,000 $66,804,000 
$65,782,000 $53,169,000 
$12,814,000 $13,635,000 
$ 6,729,000 $ 5,661,000 
$ 6,085,000 $ 7,974,000 
$ 2,539,000 $ 3,369,000 
$ 2,622,000 $ 4,678,000 
1,121,944 996,219 
$2.34 $4.70 
$ 1,346,109 $ 922,990 
$1.20 $1.20 
$33,966,000 $28,358,000 
$30.27 $28.47 
2,572,982 2,261,770 
2,206,408 1,726,941 
1,299,482 1,080,267 
58.90 % 62.55 % 
5.53 5.61 
5,842 5,294 
 Annual Report 
TO THE STOCKHOLDERS: 
For the air transportation industry as for other 
major domestic industries-and indeed the 
entire nation-the 12 months ending June 30, 
1958 was a period of great challenge. Inter- 
national events and world economic trends 
were reflected on the business barometer of 
our country and your own Company. Never- 
theless, it was a year in which Delta Air Lines 
continued to make definite gains. 
* * * 
Delta's operations in the 1958 fiscal year reflect 
many extraordinary developments, some of 
general application and others primarily affect- 
ing your Company and the airline industry. 
There are valid indications that the 12 
months between July 1, 1957 and June 30, 
1958 bore the brunt of this country's economic 
recession, with the downward trend beginning 
early and leveling off late in that period. 
Political unrest in three of the five Carib- 
bean countries served by your Company was 
given widespread (and, in some instances, 
exaggerated) publicity which tended to inhibit 
travel to those areas. 
South Florida's worst winter in half a cen- 
tury completely ruined the 1958 winter season 
in that perennially popular vacation resort, 
sharply reducing the traffic of every airline 
serving the state. 
Concentration of Delta- 
liners at Atlanta Airport 
loading finger during 
mid-day connecting period. 
1 
 Despite a marked decline in industrial 
activity and mounting unemployment, cost 
levels continued to rise. Accordingly, the Civil 
Aeronautics Board-after denying airline peti- 
tions for fare relief in August, 1957-in Jan- 
uary, 1958 authorized an increase in domestic 
passenger fares approximating 6.6% for the 
industry. This increase, generally considered 
inadequate, has had no discernible effect upon 
traffic volume and is providing badly needed 
additional revenues. 
Congress repealed, effective August 1, 
1958, the 3 % Federal tax on freight, including 
air cargo, but failed to repeal the more onerous 
10% tax on passenger travel. Delta and the 
industry are pressing for the repeal of this 
discriminatory tax-imposed during World 
War II to discourage travel-which penalizes 
the domestic traveler and hinders expansion 
of airline traffic. 
Your Company completed its piston-en- 
gined airplane acquisition program during the 
year. Additions to the aircraft fleet, coupled 
with aggressive sales and traffic develop- 
mental activities, enabled Delta to maintain 
a rate of traffic growth for the year slightly 
above the industry. 
Major progress has been made in complet- 
ing financing arrangements for our jet aircraft 
commitments, and planning for their opera- 
tion next year is going forward at a vigorous 
pace. Among the first to place orders for jet 
transports, Delta will be first in bringing jet 
travel to many cities on its system. 
Passenger traffic again produced more than 
92% of total revenues for the year. Passen- 
ger and excess baggage revenues rose to 
$81,601,000-a gain of $8,516,000 over the 
$73,085,000 received from this source in the 
preceding year. Higher traffic volume ac- 
counted for $6,616,000 of the increase, while 
the passenger fare increases placed into effect 
on February 10 developed $1,900,000 addi- 
tional revenue in the last 141 days of the year. 
Low-fare aircoach services continued to 
play a major role in our operations. This class 
of service accounted for 37.60% of available 
seat miles and 38.38% of revenue passenger 
miles for the year. 
The additional capacity provided by your 
Company and its competitors, general eco- 
nomic conditions, and unusually adverse 
weather during the peak winter vacation sea- 
son combined to reduce the percentage of 
available seat miles sold to 56.82% from 
58.90% in the 1957 fiscal year. This drop of 
two percentage points was much less than the 
industry average, however, and your Com- 
pany's participation in total passenger miles 
flown by the domestic trunk lines increased 
slightly. The following tabulation shows that 
participation for recent years: 
1952* ..... . 
1953 .... . 
1954 ... . 
1955 .... . 
1956 . . . 
1957 .. . 
1958. 
. .. ... .. . . . . 3.91 % 
.3.73 
. .4.77 
.5.06 
. .. 4.99 
. ..... 5.34 
. ...... 5.40 
*Last full year of Operations prior to the mer- 
ger with Chicago and Southern Air Lines, Inc. 
Five CAA-certificated, modernized C-46 
all-cargo airplanes were added to our operat- 
ing fleet during the year, replacing two C-47 
aircraft. These additions, coupled with inten- 
sified sales and promotional efforts, produced 
all-cargo (mail, air freight, and express) reve- 
nues of $5,703,000, a gratifying 17% increase. 
EXPENSES 
The effects of inflation-inspired cost level in- 
creases and a slackening in the year-to-year 
rate of growth could not be offset entirely by 
operating economies and management efficien- 
cies. Consequently, the cost of producing a 
seat mile rose from 3.29 to 3.45 and the cost 
of an available ton mile from 27.84 to 28.44. 
The largest percentage increase, by ex- 
pense category, was the 39.02% increase in 
 depreciation charges, reflecting the addition of 
nine DC-7B's and five C-46's to the operating 
fleet during the year. 
The largest dollar increase occurred in 
salaries, wages, and related costs, which in- 
creased $5,430,000 to $37,328,000 and repre- 
sented 43.59% of total expenses. Those higher 
personnel costs reflect a net increase of 216 
employees during the year and higher wage 
and sala~y scales that were placed into effect 
during the year; the total of 6,058 employees 
at year-end is 119 below the high of 6,177 
reached on February 28, 1958. 
Net non-operating charges (interest in- 
come and expense, incidental property sale 
profits and losses, foreign exchange costs, etc.) 
were $600,000 for the year, up only slightly 
from $556,000 in the preceding year. Begin- 
ning with the 1958 fiscal year, however, in- 
terest applicable to advance deposits on jet 
flight equipment is being removed from cur- 
rent charges against income and capitalized as 
an additional cost of acquiring the related 
equipment. This capitalization reduced in- 
terest charges by $395,000, and increased de- 
ferred taxes by $205,000; had interest not been 
capitalized, net income in 1958 would have 
been approximately $200,000 lower. 
As shown by the June 30, 1958 Balance 
Sheet, advance deposits for new flight equip- 
ment were $11,722,000 as of that date and 
will, rise to approximately $20,113,000 during 
the forthcoming fiscal year. 
TAXES ON INCOME 
Net income from operations reflects a charge 
of $1,010,000 for taxes on reported income. In 
determining actual tax liability, reported pre- 
tax income is reduced by the difference be- 
tween normal depreciation on fixed assets and 
the higher depreciation accruals recognized 
for tax purposes under the accelerated depre- 
ciation and amortization provisions of the 
Internal Revenue Code. Those higher depre- 
ciation accruals resulted in a tax _ 
loss for the 
1958 fiscal year, permitting recovery of an 
appropriate portion of the taxes on income 
paid in earlier periods. Those recoverable 
taxes appear on the June 30, 1958 Balance 
Sheet under ((Current Assets" as the item of 
$1,665,000 captioned ((Estimated Federal In- 
come Tax Refund."  
PERSONNEL 
by Length of Service 
(AS OF JUNE 30) 
OVER 20 YEARS ..... . 
15 -20 YEARS .... . . . . 
10 -15 YEARS . . ..... . 
5-10 YEARS . .. .. .. . 
1 - 5 YEARS ... . .. . . 
LESS THAN 1 YEAR . . . 
TOTAL ..... . ........ 
.I 
1957 1956 
67 50 
233 171 
1,137 960 
1,199 1,148 
1,923 1,723 
1,283 1,242 
5,842 5,294 
 4 
Sources 
Passenger and Excess 
Baggage $81,601,417 
92.26---+_.z ...:::::~~ ... 
Mail $1 ,795,885 
2.03 
Freight and Express 
$3,907,406 
4.42 
Other (Including Flight 
Equipment Sale Profits) 
$1 ,141,396 
1.29 
Total Dollar Revenue 
$88,446,104 
Twelve months ended June 30, 1958 
1958 REVENUE DOLLAR 
Distribution 
 Employees salaries and 
related costs* $37,328,252 
42.20 
Depreciation and 
Obsolescence of Property 
and Equipment 
$9,354,358 
10.58 
Gasolin; and Oil 
$13,239,776 
14.97 
Materials and 
outside repairs for 
Maintenance of Equipment 
$7,877,610 
8.91---+- 
Food and supplies for 
Passengers $2,545,196 
2.88----i----...1 
Advertising $2,666,145 
3.01--+-------- 
0ther operating costs 
$10,879,054 
12.30 
Capital Costs 
(Interest and Dividends) 
$1,622,366 
1.83 
Taxes $2,879,983 
3.26 
Retained for use in 
business $53,364 
.06 
Operating Revenues $88,172,695 
Gross profit on 
equipment sales 273,409 
$88,446,104 
*Salaries, travel, employee welfare, and payroll taxes 
The current use of accelerated depreciation 
and amortization provisions of the Internal 
Revenue Code to develop a taxable income 
less than reported income means that in a 
future period taxable income will be greater 
than reported income. Accordingly, a total 
reserve of $6,671,400 was provided at June 
30, 1958 for the future payment of taxes de- 
ferred to date; this reserve was increased 
$2,817,000 during the 1958 fiscal year. 
EARNINGS AND DIVIDENDS 
Totai earnings (including equipment sale pro- 
fits) of $1,063,000 and $.95 for each share of 
common stock outstanding marked the com- 
pletion of the eleventh consecutive year of 
profitable operations; losses have been re- 
corded in only two years (1941 and 194 7) since 
passage of the Civil Aeronautics Act under 
which the Company has operated since 1938. 
However, the 1958 per share earnings were 
the lowest since 1948 and dollar earnings were 
the lowest since 1950. A comparison of income 
from operations (before taxes) for each of the 
quarters in the 1957 and 1958 fiscal years 
demonstrates the impact of the downward 
pressures upon earnings, and the increase in 
passenger fares, during the later year: 
OPERATING INCOME 
1957 1958 
Quarter Ended Fiscal Year Fiscal Year 
September 30 . . ........ .. . . $1,107,000 
December 31. . . . . . . . . . . . . . . 808,000 
March 31 . . . . . . . . . . . . . . . . . . 1,738,000 
June 30. . . . . . . . . . . . . . . . . . . 2,432,000 
$ 898,000 
113,000 
376,000 
1,15~,ooo 
Operating income for the year before de- 
preciation charges was $11,896,000, only 
slightly below the $12,814,000 for the 1957 
fiscal year and the third highest in the Com- 
pany's history. Cash earnings ( total earnings 
after taxes on income plus depreciation) were 
$10,418,000, equivalent to $9.28 per share of 
common stock. 
Three cash dividends of 30 on each share 
of common stock were declared during the 
year, payable on September 3, 1957, Decem- 
ber 2, 1957, and March 3, 1958. No dividend 
was declared in the June, 1958 quarter; in the 
opinion of the Directors, the interests of the 
stockholders were best served by limiting 
dividends in the 1958 fiscal year to the 90 a 
share and the resulting $1,010,000 in dividend 
p~yments. 
Cash dividends have been paid in each 
year since 1949, aggregating $8.95 per share 
and representing 30.96% of total earnings. 
A cash dividend will not be paid in the 
September, 1958 quarter, but your Company 
is hopeful that earnings will soon justify its 
reestablishing a dividend record that had 
become outstanding in the industry. 
 FARE LEVELS 
In August, 1957 the Civil Aeronautics Board 
denied (one member dissenting) a 6% increase 
in domestic passenger fares proposed by Delta 
and several other carriers earlier in the year. 
Concurrently the Board ordered that the in- 
vestigation of passenger fares which it initiated 
 in May, 1956 be expedited and stated that it 
would keep the matter under continuing sur- 
veillance. 
Taking note of the continued sharp decline 
of indust_ 
ry earnings, the Board on January 
24, 1958 approved an interim increase in 
passenger fares of 4% plus $1 a ticket effective 
February 10. It will remain in effect at least 
until January 31, 1959. This fare adjustment, 
coupled with a 1952 increase, has increased 
airline fares about 9% since 1949. But in terms 
of constant dollars-taking into account the 
declining purchasing power of the dollar-the 
real price of passenger fares has declined by 
9% during the period. 
In terms of average return per passenger 
mile, growing aircoach volume and promo- 
tional fares have depressed the industry pass- 
enger-mile yield to the 1942 level-and actu- 
ally to a much lower level if the shrinking 
value of the dollar is considered. 
Hearings in the General Passenger Fare 
Investigation Case were concluded in July., 
1958, and a final decision in early 1959 is 
possible. The staff of the Board participating 
in these hearings now takes the position that 
Golden Crown Network 
Delta's deluxe Golden Crown DC-7 
services == Interchange Flights 
ST. 
TO CARIBBEAN POINTS 
the interim increase should be continued in 
effect at least until June 30, 1960, although it 
earlier opposed any increase in passenger fares. 
The CAB staff finds that continuance of 
this increase will make possible earnings by 
Delta equivalent to an approximate annual re- 
turn of 9.45 % on computed investment-which 
it contends should be recognized a's a reason- 
able earnings level for Delta. Your Company 
believes that the dollar earnings, and the 
margin between revenues and expenses, em- 
bodied in the staff's position ( which includes 
proposed adjustments to reported investments 
and operating results of major significance) are 
inadequate. Delta will continue to press vigor- 
ously for establishment of higher levels by the 
Board and the requisite fare adjustments. 
NEW ROUTE AWARDS 
Significant new route authority for your Com- 
pany was indicated in announcements by the 
Civil Aeronautics Board in March, 1958, that 
decisions had been reached in several major 
cases involving Delta. These included the 
Great Lakes-Southeast Case, the portion.of the 
New York-Florida Case reserved for later 
decision (Delta's certification to serve Tampa/ 
St. Petersburg), the St. Louis-Southeast Case, 
and the TWA Route Transfer Case. 
The Board's announcement stated that 
Delta will be authorized to serve seven new 
cities on its north-south Route 54-Dayton 
and Columbus, Ohio; Louisville, Kentucky; 
Aircoach Network 
Delta's "Flying Scot" day and night air- 
coach services == Interchange Flights 
 Douglas DC-8. Jetliner, 
of the type ordered by 
Delta, on its initial 
test flight. 
6 
and Orlando, Tampa/St. Petersburg, and 
West Palm Beach, Florida. In addition, Delta 
will receive authority to operate between 
Memphis on the one hand and Birmingham 
and Atlanta on the other, and will serve 
Indianapolis in a north-south direction on 
Route 54 as well as on Route 8 between 
Houston and Detroit. 
Those authorizations will permit direct 
service between (among others) these cities: 
Kansas City and Atlanta, Kansas City and 
Florida cities 
Detroit and Atlanta, Detroit and Cincinnati, 
Detroit and Florida cities 
Indianapolis and Chicago, Indianapolis and 
Atlanta, Indianapolis and Florida cities 
Delta's reported new operating authority, 
substantially all subject to competition, will 
give your Company access to traffic markets 
which in 1956 represented 658 million revenue 
passenger miles (approximately $36,000,000 in 
passenger revenues) and 1,280,000 passengers. 
It is not possible to forecast the extent to 
which your Company will benefit from its 
entry into the new markets, nor to estimate 
the effects of the significant north-south com- 
petition and east-west traffic diversion we 
may face until the Board's final decision is 
made official. In any event, operations by 
Delta and the other carriers cannot begin 
even on a limited basis before late 1958. 
PENDING ROUTE PROCEEDINGS 
Major route cases being currently processed 
by the Civil Aeronautics Board in which Delta 
has an interest are: 
Chicago-Milwaukee-Twin Cities Case -In 
this proceeding Delta seeks an extension of its 
Route 54 from Chicago to Milwaukee and 
Minneapolis/St. Paul. The Hearing Examiner 
has recommended that this route be awarded 
another carrier. Briefs in response to that re- 
commendation have been filed with the Board 
and oral argument is the only remaining pro- 
cedural step before final Board decision, which 
may or may not support the Examiner's re- 
commendation. 
Southern Transcontinental Service Case- 
This proceeding was begun by the Board in 
March, 1958 to determine whether there is a 
need for single-carrier service between Hous- 
ton and the West Coast and for single-carrier 
transcontinental service between Florida and 
California, in each instance via numerous 
intermediate cities. 
In July, 1958, the Board announced de- 
ferral of that portion of the Dallas-to-the-West 
Case involving new service between Dallas 
and the West Coast for decision at the same 
time this case is decided. The original scope of 
the case has been expanded to include the 
need for single-carrier service between Atlanta 
and Birmingham and the West Coast, via 
various intermediate points. 
Delta has participated in direct connect- 
ing service since 1929 and in through-plane 
service between the South and California since 
1949 and will be a primary contender for any 
new operating authority that may be granted 
in this proceeding. Final decision in the case 
may be two years away. 
PERSONNEL 
Successful accomplishment of an airline's 
basic objective-the movement of people and 
property swiftly, safely and comfortably- 
represents more than any other single thing 
the culmination of the many skills and abili- 
 ties of its employees. Your Company feels that 
the competence, courtesy and loyalty of the 
6,058 men and women who comprise Delta 
Air Lines are unsurpassed. 
Stabilization of employment has further 
raised experience levels. Employees with less 
than one year's service constituted only 14.13% 
of total employment on June 30, 1958, com- 
pared to 21.96% a year earlier, while those 
with more than five years of service repre- 
sented 46.57% of the totals. 
General wage and salary scales were in- 
creased during the year, in keeping with in- 
dustry trends. Delta employees continue to 
receive substantial benefits such as liberal 
allowances for free "space available" trans- 
portation, group insurance providing life in- 
surance for employees and extensive medical 
and surgical coverage for both employees and 
their families, and a comprehensive retirement 
income plan. 
EQUIPMENT AND FACILITIES 
The nine remaining DC-7B aircraft on order 
were received and placed in service during the 
year; there are no outstanding commitments 
for piston-engined aircraft. Modification and 
conversion to CAA spec~fications of the five 
C-46 all-cargo airplanes was completed, and 
they were placed in service in the latter part 
of 1957; their operating experience to date has 
been quite satisfactory. Three DC-3 passenger 
airplanes became surplus to our requirements 
during the year and were sold, resulting in an 
aircraft fleet at June 30, 1958 as follows: 
Manufacturer Model 
Douglas . .. . . .. DC-3 
Douglas . . .. . .. DC-6 
Douglas . .. .... DC-7 /DC-7B 
Curtiss .. . ... . . C-46 
Lockheed . .. .. L-049 
Convair . ... . .. 340/ 440 
*Includes two all-cargo planes. 
Seating 
Number Configuration 
12* 25 
7 76 
21 69/90 
5 Cargo 
4 72 
28 44 
Your Company's first Douglas DC-8 jet- 
liner is scheduled for delivery in June, 1959, 
with five more to be delivered by October, 
1959. It is expected that these delivery dates, 
and the projected certification date of Octo- 
ber 1, 1959, will be met or bettered. The two 
DC-S's programmed for 1961 delivery are 
being placed on an option basis, to be exer- 
cised at a later date by Delta if appropriate. 
Your Company also has an outstanding 
commitment for ten Convair Model 880, 620- 
mile-per-hour jetliners, for 1960 delivery, with 
a scheduled CAA certification date of May 
1, 1960. 
The Convair Model 880, powered by the 
General Electric CJ-805-3 engine (the com- 
mercial equivalent of the model J-79 used 
extensively in military aircraft), is specially 
designed for intermediate flight distances and 
normal runway lengths. Its operating charac- 
teristics will enable Delta to bring the benefits 
of 10-mile-a-minute jet transportation to a 
large portion of the traffic we serve. 
Delta's DC-8 aircraft will be powered by 
Pratt and Whitney J-57 jet engines, specified 
by many other purchasers of the DC-8 and 
Boeing Model 707 jet transport. 
FLIGHT EQUIPMENT 
90 
Both engines have run up impressive per- 
formance records in military aircraft-the 
J-57 (which by the end of 1959 will have been 
flown some 7,000,000 hours) in such airplanes 
as the B-52 and RB-66 jet bombers, F4D and 
F-100 fighter-interceptors, and the J-79 in 
the F-104, FllF and B-58. 
Manufacturers of both engines initially 
established a maximum cost for engine parts 
usage expressed in dollars per engine flight 
hour. This guaranteed "not to exceed" cost, the 
first ever provided for such an important 7 
 SOURCES AND DISPOSITION OF FUNDS 
Fiscal Years Ended June 30 
(all amounts In thousands) 
1958 
FUNDS PROVIDED BY: 
Net earnings, excluding equipment sales $ 932 
Equipment sales proceeds, less taxes . . . . . . 158 
Deferred income taxes, payable in later years 2,817 
Depreciation accruals . . . . . . . . . . . . . .. . . . . . 9,873 
Sale of common stock .. . .... . . . .... . .. . . 
Borrowings under bank credit agreement . . . . 12,600 
Miscellaneous, principally expenses not 
requiring cash expenditures 16 
FUNDS USED FOR: 
Flight equipment purchases . . . . .. .. . . . . . . . 
Advances for flight equipment on order (net) . 
Ground facility and equipment additions ..... 
Debt reduction: 
Redemption of 5% convertible debentures . 
Repayment of bank borrowings . ....... . . 
Cash dividends .... . . .. ... . . .. ... . .. . . . 
All other purposes .......... . .. . .. . .. . . 
$26,396 
$20,452 
3,404 
1,298 
1,010 
161 
$26,325 
Net change In Wqrking Capital .. . . .. ......... +$ 71 
Working capital at beginning of year . . . . . . . . . . . ~ 
Working Capital at end of year . . .. : . . . . . . . . . . . $ 5,752 
11111 
ACTUAL EARNINGS 
ADJUSTED EARNINGS  
5 YEAR TOTAL 
-- 
ACTUAL DIVIDENDS 
1957 
$ 2,539 
93 
1,420 
7,239 
4,329 
6,000 
71 
$21,691 
$12,058 
4,310 
1,240 
1,346 
542 
$19,496 
+$ 2,195 
3,4~6 
$ 5,681 
INCLUDING PROFITS FROM SALE OF EQUIPMENT 
'54 '55 '58 '57 '58 
EARNINGS AND DIVIDENDS PER SHARE 
1956 
$ 3,369 
2,499 
1,109 
6,983 
283 
$14,243 
$ 7,029 
4,008 
1,181 
1,111 
2,425 
923 
156 
$16,833 
-$ 2,590 
6,076 
$ 3,486 
DOLLARS PER SHARE 
 STOCKHOLDER EQUITY PER SHARE* 
*ADJUSTED TO REFLECT 25'tt STOC1< DIVIDEND PAID JUNE 29, 11156 
32 
30 
28 
26 
24 
22 
20 
18 
16 
14 
12 
10 
8 
6 
element of operating expense, is most benefi- 
cial. Particularly encouraging is the fact that 
cost ceilings initially established have been 
voluntarily lowered by both manufacturers 
because of favorable military operating 
experience. 
Intensive planning for jet aircraft opera- 
tions-begun months ago-is being pushed 
forward by the airlines, the manufacturers, 
airport operators and the Civil Aeronautics 
Administration. This advance planning, 
coupled with the experience gained by those 
few airlines who will inaugurate jet service 
earlier than Delta, will do much to minimize 
your company's problems when it introduces 
jet service next year. 
Total expenditures of $1,298,000 were 
made during the year for servicing and main- 
. tenance tooling and equipment . and for the 
additional groung facilities required by the 
increase in the aircraft fleet and expanded 
operations. 
A new maintenance hangar adequate for 
jet aircraft was recently completed for your 
Company at Dallas and has been occupied 
under a long-term lease. Arrangements are 
being made for construction of all major facil- 
ity requirements over the system on a similar 
basis, thereby minimizing the amount of cor- 
porate funds required for those purposes. 
CAPITALIZATION AND FINANCING 
The remaining $12,600,000 of the $30,000,000 
credit available under the 1956' Bank Credit 
Agreement was taken down during the year. 
Total capitalization at June 30, 1958 con- 
sisted of that $30,000,000 of bank debt (upon 
which repayments will begin in 1961) and 
stockholder equity of $34,020,000. 
As shown by the tabulation above, the bor- 
rowings of $12,600,000 were applied to . the 
total expenditures of $25,154,000 made during 
the year for flight equipment purchases and 
advances and other property acquisitions. 
For the three years ended June 30, 1958, 
payments for flight equipment acquisitions 
and net advances totalled $51,261,000, and 
an additional investment of $3,719,000 was 
made in ground equipment and facilities. 
During this three-year period, debt increased 
$15,064,000, equity capital was increased 
$4,329,000 through the sale of 125,000 shares 
 of common stock in July, 1956, and the re- 
maining $35,587,000 was obtained from 
internally generated funds. 
Delta's outstanding firm commitments for 
six DC-8 and ten Convair 880 jet aircraft and 
related spares and inventories will require 
total payments estimated at $74,000,000. 
Through June 30, 1958, $11,522,000 had been 
deposited with manufacturers as advance 
payments against these commitments. 
Negotiations are being conducted with a 
group of insurance companies for a $25,000,000 
long-term credit, requiring no repayments 
until 1968 and with minimum repayments of 
$2,500,000 a year beginning in 1968. Funds 
available from this credit, together with a 
slight increase in borrowings under the pres- 
ent Bank Credit Agreement, can reasonably 
be expected to cover substantially the out- 
standing purchase commitments. 
THE FUTURE OUTLOOK 
One of the most hopeful developments in re- 
cent years is the apparent growing awareness 
in the highest levels of government and in the 
Congress of the importance of an economically 
sound airline industry-and the need for co- 
ordinated governmental policies to achieve 
that objective. 
An example of this trend is the letter to the 
President from General E. R, Quesada, Special 
Assistant to the President, released by the 
White House on August 5, 1958, which accom- 
panies this 1958 Annual Report . . This letter 
and the report to which it refers have received 
widespread attention. It could prove the be- 
ginning of a change in the regulatory climate 
in which the industry operates. 
The air transportation industry has a 
proud record of past achievements. How suc- 
cessfully it meets the challenges of the future 
will be determined to a large degree by the 
policies of the Civil Aeronautics Board. 
The Board has heavy responsibilities to 
maintain the continued orderly growth of this 
country's air transportation system, un- 
matched in the world. In meeting these re- 
sponsibilities, we believe the Board will permit 
reasonable fares, geared to the costs of doing 
business, and avoid the pitfall of burdening 
the industry with destructive competition. 
If. these things are done, the airlines can 
face the jet era with confidence, sure of their 
ability to discharge the industry's responsi- 
bility to the nation's commerce, the postal 
service and the national defense. 
Your Company counts as its principal 
resources an orderly, well balanced route 
structure, the finest flight equipment and 
experienced, devoted personnel. These re- 
sources should enable Delta Air Lines to main- 
tain its full participation in the industry's 
service to the traveling and shipping public 
in the years ahead. 
PRESIDENT AND GENERAL MANAGER 
September 10, 1958 
Delta's General Offices 
and principal maintenance 
base buildings on 
Atlanta Airport. 
9 
 The Routes of Delta Air Lines 
- I 
A compact network linking more than 50 mid-American cities with the 
New York-Washington "Main Street" and the Capitals of the Caribbean. 
LEGEND 
- Present Delta routes, 
= Interchange (through plane) 
routes with other airlines. 
- New routes announced in CAB 
Press Release - subject to 
issuance of final decision. 
NEW ROUTES AND 
NEW WINGS 
Delta's routes now serve the principal 
cities in the eastern half of the nation, 
linking the financial and industrial cen- 
ters of the East and the Mid-West with 
the rapidly growing new South. 
When the new operating authority 
becomes effective, seven new cities will 
be added to the system and enable Delta 
to offer direct services from additional 
Mid-West points to the Florida area. 
ABOVE: 
Interior of new Jetliner 
sets new standards in 
aerial decor and comfort. 
LEFT: 
The first DC-8 Jetliner 
is rolled out of the 
Douglas factory, 
ushering in a new era in 
air transportation. 
11 
 12 
Delta Air Lines, Inc. 
ATLANTA, GEORGIA 
CURRENT ASSETS: 
Cash . . . .. . ..... . . . ...... , . . .. . . . ....... . ... .. .. ... ... . 
Accounts receivable- 
Traffic (net) .. . ....... .. .. . . . ....... . ...... . ........ . 
Other . .. ..... .. . ... . .. .. . . . ... ............. . .. .. ... . 
Estimated Federal income tax refund . ... . ..... . .. . .... . .. . 
Maintenance and operating supplies, at average cost . ...... . 
Other current assets. . . . . . . . . . . . . . ...... . ... . ..... . 
Total current assets . . . . ... . ... . . . ......... . .... . 
OTHER ASSETS (Net assets of dusting division and 
other investments) .. . .. .. .. .... .. .. . ............. . ..... . 
PROPERTY AND EQUIPMENT (Including approximately 
$13,000,000 fully depreciated in 1958 and 1957): 
Cost- 
Flight 
Equipment 
1958. . . . . . . . . . . . . . . . . . . . . . $83,951,218 
1957 .. . . . . . . . . . . . . . . . . . . . . 63,704,714 
Reserves for depreciation- 
1958 .. . .. . . .. ... ..... . ... . 
1957 . . .. . ....... .. . . .... . . 
35,988,677 
27,186,278 
Other 
Property and 
Equipment 
$10,000,870 
8,825,114 
4,815,370 
4,101,362 
Advance payments for new flight equipment ... . . . ...... . 
DEFERRED CHARGES, ETC.: 
Advances for leased facilities, being amortized .. : . .... . .. .. . 
Other deferred charges .. . . . ....... .. ... .. .... . .. . ... . .. . 
1958 
$ 7,278,455 
5,037,270 
2,281,505 
1,665,000 
823,736 
298,375 
$17,384,341 
$ 410,497 
$93,952,088 
40,804,047 
$53,148,041 
11,721,900 
$64,869,941 
$ 124,712 
82,557 
$ 207,269 
$82,872,048 
1957 
$ 8,547,757 
5,200,170 
2,151,066 
649,446 
224,741 
$16,773,180 
$ 347,123 
$72,529,828 
31,287,640 
$41,242,188 
8,318,362 
$49,560,550 
$ 129,332 
120,842 
$ 250,174 
$66,931,027 
LIABILITIES 
AND 
STOCKHOLDER EQUITY 
CURRENT LIABILITIES: 
Accounts payable and accrued liabilities ... .. . .... . .. . . .. . . 
Advance sales of tickets for transportation . .. .. ...... .. ... . 
Accrued Federal and state taxes on income .. . .. . .. . . .. . . . . . 
Air travel plan deposits .... . ... . ......... . . . ..... .. . ... . . 
Total current liabilities . ... .. ... .. . .. . .... . . . ... . 
NOTES PAYABLE TO BANKS, bearinginterestatnotlessthan 
3% nor more than 4%, due in installments from 1961 through 
1965 . . ,.. . ...... .. . ... ...... . .. . ..... ....... ...... . 
RESERVES AND DEFERRED CREDITS: 
Deferred Federal income taxes . .. .. . . . .. ..... ... . . . . ... . . . 
Reserve for contingencies (Note 2) . .. . . . .. . .. . . .... . .... . . 
Other .......... . .... . . .. . .. .. . . . . . . .... ... .. . . . . .. ..  . . 
STOCKHOLDER EQUITY: 
Common stock, par value $3.00 per share- 
Authorized 1,500,000 shares 
Issued and outstanding 1,122,045 shares at June 30, 1958, 
and 1,121,944 shares at June 30, 1957 . . . .......... . .. . 
Capital surplus . . . . . . . . ..... . ...... . . .. . . . .. . . . ..... ... . 
Retained earnings (of which $10,672,155 is not presently avail- 
able for cash dividends under terms of credit agreement) . .. 
PURCHASE COMMITMENTS (Note 1) 
The accompanying notes are an integral part of these statements. 
Balance Sheets 
JUNE 30,1958 & 1957 
1958 
$ 7,420,630 
3,140,523 
1,071,425 
$11,632,578 
$30,000,000 
$ 6,671,400 
500,000 
48,352 
$ 7,219,752 
$ 3,366,135 
15,961,710 
14,691,873 
$34,019,718 
$82,872,048 
1957 
. $ 5,653,107 
2,655,479 
1,838,870 
944,775 
$11,092,231 
$17,400,000 
$ 3,854,400 
500,000 
118,631 
$ 4,473,031 
$ 3,365,832 
15,961,424 
14,638,509 
$33,965,765 
$66,931,027 
13 
 14 
Statements of Income 
F O R T H E Y E A R S E N D E D J U N E 3 0, 1 9 5 8 A N D 1 9 5 7 
OPERATING REVENUES: 
Passenger . ... ... . . .. .. . .. . . ... ..... .. . ... . . .... . .. . .. . . 
U.S. Mail . . . ... ...... . .. ... .. .. . . . . . .... .... .. .. .... . . 
Freight . . . .... .. ... . ..... . . .... ....... ... . . .. . . . ... . .. . 
Express .. . . . . . ... . . ... . .. . ... ......... .. ..... ... . . . ... . 
 Excess baggage .. ..... ...... . ...... . .. .. . . . . ... .... . .. . . 
Other operating revenue-net ..... ... . . . . . . . ... . . . ...... . 
Total operating revenue ... . .... . ... . .. .... .. .. . . 
OPERATING EXPENSES:. 
Flying operations ... ... . . ..... ... .... .. .......... . .. ... . 
Maintenance . .. .. .. . . . .. .... . . . . ... ... . .. ..  . . .. .. . .... . 
Aircraft and traffic servicing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Promotion and sales . ..... ... .. .. ... . . . .. .. .. . . ........ . 
Passenger service .. . ... . .... .. ... . .. ... . . . .... . . . ... .. . . 
General and administrative .... . . . . ... . ... . .. ,_ ... .. ... .. . 
Operating expenses before 
depreciation and amortization . ....... . . .... . , . . 
Depreciation and amortization- 
Flight equipment owned . . ..... .... . . .. ...... .... . . . . . . 
Less-Net depreciation credits arising from equipment 
interchange and lease agreements . . . ..... . .... . .. .. . 
Ground property and equipment ... . ... .... . .. .. . ...  ... . 
 Depreciation and amortization . ... . . .. . . . ....... . 
Total operating expenses . .... . .. . ..... .. .. . . . ... . 
Income .from operations before income taxes ....... . 
OTHER EXPENSE (INCOME): 
Interest expense-net (Note 1) . ..... .. . .. . . .......... . .. . 
Other-net . . . . . . . . . . ... . ... .. .. . . . .. .... . .. .. . . ....... . 
Total other expenses .. . . ... .... . .. . . . . ... . ... . . . 
Income before income taxes ... . ... . . . . ..... .... . . 
PROVISION FOR TAXES ON INCOME: 
Current Federal and state income taxes . ...... . .. . . .... .. . 
Deferred Federal income taxes (Note 1) . . .. . . ... ... . ..... . 
Estimated Federal income tax refund arising from 1958 tax 
loss carry back .... .. .... .. .... .. . .. . . .. . . . ... . .. .. . .. . 
Net income .. ... . ... ... ...... . .. ........ ...... . 
SPECIAL ITEM-Profit on disposition of flight equipment, 
less applicable income taxes of $142,000 in 1958 and $32,000 
in 1957 .... . . . .. . . .. ... .... .. ...... . .. . . .. . ..... ... . .. . 
Net income and special item ..... . .... . . . .. . ... . . 
1958 
$80,217,086 
1,795,885 
2,954,896 
952,510 
1,384,331 
867,987 
$88,172,695 
$26,269,023 
18,468,191 
13,255,327 
10,210,394 
5,597,201 
2,476,590 
$76,276,726 
$ 9,133,832 
(538,499) 
759,025 
$ 9,354,358 
$85,631,084 
$ 2,541,611 
$ 612,575 
(12,710) 
$ 599,865 
$ 1,941,746 
$ 
2,817,000 
(1,807,000) 
$ 1,010,000 
$ 931,746 
131,409 
$ 1,063,155 
1957 
$71,873,125 
1,636,218 
2,230,512 
1,015,947 
1,211,428 
628,773 
$78,596,003 
$22,320,217 
16,097,824 
11,317,159 
8,947,958 
4,807,688 
2,291,213 
$65,782,059 
$ 6,650,293 
(560,620) 
639,202 
$ 6,728,875 
$72,510,934 
$ 6,085,069 
$ 567,534 
(11,111) 
$ 556,423 
$ 5,528,646 
$ 1,569,600 
1,420,400 
$ 2,990,000 
$ 2,538,646 
82,939 
$ 2,621,585 
The accompanying notes are an integral part of these statements. 
 Statements of Capital Surplus and Retained Earnings 
FOR THE YEAR ENDED JUNE 30, 1958 
Retained 
Capital 
Surplus Earnings 
$14,638,509 
Balance at beginning of year .. . . . ........ .. ............ .. . . 
$15,961,424 
931,746 
Add: 
Net income ...... .. . . .. ... . . . . .... . .. . . .. . . .. . ... . .... . 
Special item-Profit on disposition of flight equipment, less 131,409 
$142,000 applicable income taxes ... . . . . . ....... . . . .. . . . 
Excess of proceeds over par value of 101 shares of common 
stock issued during year in exchange for scrip .. . . . ..... . . 
286 
$15,961,710 $15,701,664 
1,009,791 
Deduct: 
Cash dividends on common stock-$.90 per share .......... . 
Balance at end of year ($10,672,155 of retained earnings is 
restricted as indicated on balance sheet) . . .... .. ......... . . 
$i5,961,710 $14,691,873 
The accompanying notes are an integral part of these statements. 
Auditors' Certificate 
ARTHUR ANDERSEN & C 
ACCOUNTANTS AND AUDITORS 0. 
To the Board of Directors 
Delta Air Lines, Inc. : , 
THE WILLIAM-OLIVER BUILDING 
ATLANTA 3 
We have examined the balance 
co . sheet of Delta Air L. 
rporation) as of June 30 1958 mes, Inc. ( a Louisiana 
capital surplus and retain:d ea . and f the related statements of income 
ation was made in accordance r~thmgs or the year then ended. Our ex;min- 
a din wi generally ac t d 
cc?~ gly included such tests of the . cep e auditing standards, and 
auditing procedures as we consid d accounting records and such other 
made . 1 ere necessary in th . 
a simi ar _ 
examination for th e circumstances. We had 
In ou . . e year ended June 30, 1957 
r opinion, the accompan in . b  
capital surplus and retained ear!in g alance she_ 
et and statements of income 
o_f Delta Air Lines, Inc. as of Jun: 3resent fa,rly the financial position  
tions for the year then ended d , 1958, and the results of its opera- 
ally accepted accounting prin~ip~s 
:e\: 
:repared i~ conformity with gener- 
a the preceding year. pp e on a basis consistent with that 
Atlanta, Georgia, 
August 12, 1958 
ARTHUR ANDERSEN & CO. 
 16 
Notes to Financial Statements JUNE 30, 1958 
0 
FLEET 
EXPANSION 
PROGRAM: 
e 
CONTINGENT 
LIABILITIES: 
The Company has outstanding commitments for the purchase of flight equipment listed below, 
which, together with related spare parts and accessories, will require the outlay of approxi- 
mately $62,278,100. Two Douglas DC-8 aircraft formerly scheduled for 1961 delivery are being 
placed on an option which may be exercised at a later date. Present commitments are: 
Number and 
Type of Aircraft 
6 Douglas DC-8 (jet) .. . .. .... . . . .  ...... . . . . .. . . . 
10 Convair Model 880 (jet) . . . . . . . . . . . . . . . . . . ... .. . 
Advance payments on above flight equipment .. ... .. . 
Approximate 
Cost 
$34,000,000 
40,000,000 
$74,000,000 
11,721,900 
$62,278,100 
Date of 
Delivery 
1959 
1960 
In connection with its program of acquiring jet aircraft, the Company has incurred sub- 
stantial interest charges on funds borrowed for deposit with manufacturers of flight equipment. 
In 1958 the Company adopted the policy of capitalizing in the cost of its jet flight equipment 
the interest on these advance payments from borrowed funds. Capitalization of this interest 
will continue until the flight equipment is placed in service, after which the amounts will be 
amortized through depreciation charges. Had interest not been capitalized, net income in 1958, 
after the provision for related deferred Federal income taxes of $205,000, would have been 
approximately $200,000 lower. 
Negotiations are being conducted with a group of insurance companies for a $25,000,000 
long-term loan requiring minimum annual repayments of $2,500,000 beginning in 1968. 
The Supreme Court of the United States by decision dated February 1, 1954, sustained the 
Post Office Department's objection .to a Chicago and Southern Air Lines, Inc. (C&S) inter- 
national mail rate order issued by the Civil Aeronautics Board (CAB) in October, 1951 (the 
so-called "offset" case). The Supreme Court decision requires the CAB to review its original 
order and redetermine the mail pay requirements for the C&S international operations for the 
period involved in accordance with the principles therein established. By order dated Septem- 
ber 6, 1956, the CAB ordered that the record in this matter be reopened for further hearing on 
the question of the proper rate level of the international operations of C&S for the period 
December 16, 1950, through July 31, 1952. The Company believes that the reopening is in- 
correct, and the amount of mail pay refund, if any, that Delta may be required to pay as 
successor of C&S cannot now be determined. 
The Company has provided a $500,000 reserve in connection with the f~regoing contingent 
liability and with proposed deficiencies in income taxes of C&S prior to its merger into Delta. 
 Delta's Story to the Public 
Two of Delta's 
newspaper ads, 
featuring Delta's 
friendly service and 
the radar-smooth 
"Velvet Ride." 
Die.I Delta for G.W.. Crew OC7's-tl,e ,_, 
rewarding HptfOltl<t la air travel 
r !t::i~ l 
I 
~JC!L ! 
!!~JAS -- 
~"-.A~OT'!(,_ I 
~~~; 
----- 
DllTI AIR llNES 
:::._-:._ c,D 
I 
~ . 
..41,.. I 
I 
......... I 
,.,, 
L 
I 
-~ 
I f 
I 
~ i 
,,.~ 
-l'tll/llfll"" 
- 
ML 
'49 '50 '51 '52 '53 '54 '55 '56 '57 '58 
REVENUE PASSENGER MILES 
One of a series of three full-page ads 
appearing in Northern cities served by 
Delta, reporting on the high activity level 
of Southern commerce and industry. 
1,500 
1,400 
1,300 
1,200 
1,100 
1,000 
900 
800 
700 
600 
500 
400 
300 
200 
100 
LIONS 
REVENUE PASSENGERS CARRIED 
- - - - - - -..... - - ; - - . . - - - - - , . - - - - 320 
l----+----+---+---11----+----t---+- - +-- 300 
- --+-- --t---+--+-- -+---+-- ---t--+---, 280 
- -- -- - - -~-- 260 
ll--- -+----t---+--t-----t><---+-- ---t- ---+---f"24Q 
REVENUE TON MI LES -+------+- -......,..,__--+-- ---- 220 
(CAPACITY USED IN MILLIONS) 
200 
'.fl 
1---- +----+.....--.--+--f--- ,.E:--+----+- -+-- -i 160 
1411 
!20 
l--+----+--+->,--1#--+--::.---='---+- -+----,---i 100 
'49 '50 '51 '52 '53 '55 '56 
 TON MILES AND PLANE MILES 
'57 '58 
80 
80 
40 
20' 
 Years ended June 30 1958 
Total assets ....... . .... . ........... . . . ... $82,872,048 
Current assets .... ..... ... ................ 17,384,341 
Current liabilities . . . . .. . ... .. . . .. . .. ... . .. 11,632,578 
Net working capital . . . ... ... .. .. $ 5,751,763 
Stockholder equity .. ....... _ . .. .. . . .. ..... $34,019,718 
Stockholder equity per share* . ... . ... .. ..... $30.32 
Shares of common stock outstanding* . . . . . ... 1,122,045 
Operating revenues 
Passenger ..... . . . .... . ... . .... . .. . ... .. $80,217,086 
Mail . . .. . ........ .... .. ..... . . .. .. . .. . . 1,795,885 
Express ... ..... . . . ..... ... .... . . .. .. .. . 952,510 
Freight ... .. .. . .... . .. . . . . . ......... . . . 2,954,896 
All other .. . .... . ................ . ... . . . 2,252,318 
Total revenues .... .... . . .... . . . . $88,172,695 
Operating expenses (excluding depreciation) ... $76,276,726 
Depreciation ........ .. ... .. ...... . . . . . .... 9,354,358 
Total expenses .... . ... . . . ....... $85,631,084 
Operating ratio ....... . ... . ........ .. .. . . 97.12% 
Net non-operating revenue or (expense) ..... . $ (599,865) 
Net income before taxes . . . .... . . . .. . .... . .. $ 1,941,746 
T . 
axes on income .... . . .. .... . . . . . .. .... ... 1,010,000 
Net income .. . ......... ......... $ 931,746 
Net income as % of revenues ... . 1.06% 
Special item-profits from major flight 
equipment sales (after taxes) ...... . ....... $ 131,409 
Total income and special item ............ . . $ 1,063,155 
Per share of stock outstanding* ... . . ...... $.95 
Revenue plane miles (000) ..... . . . .......... 44,972 
Available seat miles (000) ..... .. . . . . . ... . .. 2,479,428 
Revenue passenger miles (000) .. ......... .. . 1,408,857 
Passenger load factor ... . . .... .. .. . .. .... 56.82% 
Available ton miles (000) . . . . .............. . 301,i05 
Revenue ton miles (000) ... . .. ... ... . .. . ... 156,332 
Overall load factor . . . . . . . . . ........ . . .. . 51.92% 
18 Percent of scheduled miles flown ............ 97.40% 
* Adjusted to reflect 25 % stnck dividend paid June 29, 1956. 
In the fall of 1948, 
Delta's modern post-war 
fleet began with the 
delivery of the first DC-6, 
christened "The Flying D" 
by Movie Star Linda Darnell. 
President Woolman, 
Vice-President of Operations 
Dolson and Donald Douglas, Jr. 
look on. 
Ten years later, 
in the spring of 1958, 
the first Douglas 
DC-8 Jetliner is 
rolled out of its hangar 
and stewardesses 
representing all the airlines 
which have ordered 
this model 
grace the loading steps. 
A DECADE OF GROWTH 
1957 1956 1955 1954 1953 1952 
$66,931,027 $54,638,388 $54,049,882 $48,089,997 $37,966,469 $16,836,905 
16,773,180 15,140,819 18,762,696 15,888,546 14,706,498 7,186,793 
11,092,231 11,654,690 12,686,444 8,861,111 9,192,041 6,618,627 
$ 5',680,949 $ 3,486,129 $ 6,076,252 $ 7,027,435 $ 5,514,457 $ 568,166 
$33,965,765 $28,357,864 $19,845,898 $16,233,227 $15,647,278 $ 9,808,493 
$30.27 $28.47 $23.99 $21.64 $20.86 $15.69 
1,121,944 996,219 827,391 750,000 750,000 625,000 
$71,873,125 $60,557,924 $53,966,525 $45,144,949 $28,946,479 $23,995,938 
1,636,218 1,468,247 1,462,684 1,723,703 1,131,578 1,035,599 
1,015,947 1,045,567 917,609 844,483 550,305 431,240 
2,230,512 2,020,061 1,844,168 1,766,266 1,044,338 827,927 
1,840,201 1,712,827 996,975 854,481 665,102 727,417 
$78,596,003 $66,804,626 $59,187,961 $50,333,882 $32,337,802 $27,018,121 
$65,782,059 $53,168,806 $47,047,051 $43,021~ 
159 $26,641,944 $21,155,513 
6,728,875 5,661,358 6,444,981 5,275,152 2,259,784 1,485,556 
$72,510,934 $58,830,164 $53,492,032 $48,296,311 $28,901,728 $22,641,069 
92.26% 88.06% 90.38% 95.95% 89.37% 83.80% 
$ (556,423) $ (536,266) $ (1,376,754) $ (1,359,987) $ (1,345,957) $ 12,398 
$ 5,528,646 $ 7,438,196 $ 4,319,175 $ 677,584 $ 2,090,117 $ 4,389,450 
2,990,000 4,069,000 2,412,000 394,000 688,000 2,739,000 
$ 2,538,646 $ 3,369,196 $ 1,907,175 $ 283,584 $ 1,402,117 $ 1,650,450 
3.23% 5.04% 3.22% .56% 4.34% 6.11 % 
$ 82,939 $ 1,308,770 $ 258,850 $ 1,022,365 $ 2,756,561 $ 
$ 2,621,585 $ 4,677,966 $ 2,166,025 $ 1,305,949 $ 4,158,678 $ 1,650,450 
$2.34 $4.70 $2.62 $1.74 $5.54 $2.64 
41,671 33,962 31,579 31,916 20,672 17,531 
2,206,408 1,726,941 1,517,891 1,344,069 776,157 653,121 
1,299,482 1,080,267 952,426 769,653 507,713 427,534 
58.90% 62.55% 62.75% 57.26% 65.41 % 65.46% 
260,431 207,416 182,997 162,345 94,045 80,089 
141,861 118,544 104,927 87,251 57,565 48,093 
54.47% 57.15% 57.34% 53.74 % 61.21 % 60.05% 
97.62% 98.39% 98.79% 98.29 % 98.83% 98.98% 
1951 1950 1949 
$14,402,050 $12,371,851 $12,629,268 
6,093,494 4,262,201 4,379,289 
4,541,282 2,950,443 2,751,859 
$ 1,552,212 $ 1,311,758 $ 1,627,430 
$ 8,658,043 $ 7,401,245 $ 6,710,494 
$13.85 $11.84 $10.74 
625,000 625,000 625,000 
$19,006,936 $13,761,453 $11,987,246 
1,306,752 2,373,213 2,434,888 
374,480 238,441 244,859 
720,719 478,537 358,503 
812,112 333,651 202,349 
$22,220,999 $17,185,295 $15,227,845 
$17,499,480 $14,568,386 $13,096,091 
1,389,721 1,206,755 1,185,865 
$18,889,201 $15,775,141 $14,281,956 
85.01 % 91.79% 93.79% 
$ (75,000) $ (5,403) $ (52,603) 
$ 3,256,798 $ 1,404,751 $ 893,286 
1,625,000 589,000 336,000 
$ 1,631,798 $ 815,751 $ 557,286 
7.34 % 4.75% 3.66% 
$ $ $ 82,154 
$ 1,631,798 $ 815,751 $ 639,440 
$2.61 $1.31 $1.02 
15,698 13,804 12,921 
541,038 437,209 361,199 
345,246 238,335 201,711 
63.81 % 54.51 % 55.84 % 
71,987 59,532 49,544 
40,480 27,259 22,805 
56.23 % 45.79% 46.03% 
98.91 % 97.90 % 97.69 % 
These data reflect operations of Delta Air Lines, Inc., and do not include the C&S system prior to May 1, 1953. 
~ 
19 
 20 
Delta Ticket Offices 
TICKET OFFICES 
RESERVATIONS 
TELEPHONE 
ALEXANDRIA Bentley Hotel . . . . . . . . . . . . . . 44 71 
AsHEVILLE Battery Park Hotel. ........ . . ALpine 2-7601 
ATLANTA Fulton National Bank Bldg.  
Piedmont and Biltmore Hotels ......... JAckson 4-3242 
AUGUSTA Richmond Hotel . . . . . . . . . . . . . . . PArk 2-8811 
BALTIMORE Lord Baltimore Hotel. . . . . . . . . SOuthfield 6-2100 
BATON RouGE Capitol House Hotel. . . . . . . ELgin 5-4491 
BEAUMONT Jefferson County Airport. . . . . . RAndolph 2-34 71 
BIRMINGHAM 2002 Fifth Ave., N .. ........ LYric 2-9601 
BRUNSWICK Malcolm-McKinnon Airport . . .. MEirose 8-2531 
CARACAS, VENEZ. Edificio Paris 
Plaza Candelaria. . . . . . . . . . . . . . . . . . . . . 55-8488 
CHARLESTON Francis Marion Hotel . . . . . . . SHerwood 4-2567 
CHARLOTTE Selwyn Hotel. . . . . . . . . . . . . . . . EX press 9-0481 
CHATTANOOGA Hotel Patten. . . . . . . . . . . . . . MAdison 2-8336 
CHICAGO 67 East Monroe, 
Conrad Hilton Hotel, 
1649 Orrington, Evanston, Illinois. . . . . . Financial 6-5300 
CINCINNATI Sheraton-Gibson Hotel and 
Netherland Hilton. . . . . . . . . . . . . . . . . . . DUnbar 1-3232 
CIUDAD TRUJILLO Arz. Nouel esq. Sanchez . 5350 
COLUMBIA Hotel Wade Hampton . .. . ... . . ALpine 4-3186 
COLUMBUS, GA. Ralston Hotel. . .......... FAirfax 7-7458 
DALLAS 212 S. Akard St. (Baker Hotel) .. . Riverside 1-9401 
DETROIT 1235 Washington Blvd. and 
Lobby, General Motors Bldg. . . . . . . . . WOodward 5-3000 
EVANSVILLE Mccurdy Hotel . . . . . . . . . . . . . HArrison 5-9023 
FORT LAUDERDALE 10 S. Federal Hwy . . . .. JAckson 4-5595 
FORT WAYNE Baer Field Airport ...... . . .. H-3352 
FORT WORTH Hotel Texas . . . . . . . . . . . . . . . EDison 5-5425 
GREENVILLE Municipal Airport . . . ... ..... CEdar 2-8213 
HATTIESBURG Municipal Airport . .. ....... JUniper 2-1643 
HAVANA, CUBA Prado 301 . .. ........ .. .. 6-8224 
HENDERSONVILLE Hendersonville Airport .. 
HoT SPRINGS Memorial Airport .... .... . . . 
HousTON Rice Hotel ...... . .. . ...... . .. . 
INDIANAPOLIS Claypool Hotel . .. . .. . .. .. . 
JACKSON Heidelberg Hotel . .. . . .. . ..... . . 
JACKSONVILLE 226 W est Forsyth St . ..... . 
KANSAS CITY Muehlebach Hotel. . . . .. . . . . 
KNOXVILLE Farragut Hotel .. . ... ..... .. . 
LEXINGTON Blue Grass Airport ...... . 
LITTLE RocK Marion Hotel ... . .... . .... . 
MACON Hotel D empsey ... .. .. ... ....... . 
MEMPHIS Peabody Hotel ... . . . ......... . 
MERIDIAN Key Field . . ...... .. ..... . 
OXford 3-7211 
NAtional 3-1671 
CApitol 5-1361 
MEirose 7-1554 
2-0861 
ELgin 3-3171 
GRand 1-7733 
7-6611 
4-5569 
FRanklin 5-9111 
3-6731 
WHitehall 8-2641 
2-3141 
TICKET OFFICES 
RESERVATIONS 
TELEPHONE 
MIAMI 300 N. E. First (Columbus Hotel) . . FRanklin 3-0441 
MIAMI BEACH  1636 Collins Avenue ...... . FRanklin 3-0441 
MONROE Frances Hotel. . . . . . . . . . . . . . F Airfax 3-5116 
MONTEGO BAY, JAMAICA 
Montego Bay Airport . . . . . . . . . . . 2811 
MONTGOMERY Jefferson Davis Hotel . . . . . . AMherst 4-7313 
NEW ORLEANS 708 Common St. (St. 
Charles Hotel) and Roosevelt Hotel . . . . TUiane 8592 
NEW YORK Rockefeller Center, 
5 West 49th St .. . .. . . ..... . .. .... .. . 
Airlines Building, 80 East 42nd St .. .. . 
100 Broadway . .... . . .. ... . . . 
Lobby, Statler Hotel, 7th Ave. 
and 33rd St ... . . ... . .... .. . . ... . .. . 
East Side Terminal, First Ave., PLaza 1-6600 
37-38 Sts . . . ... .. ........ . ........ . . 
West Side Terminal, 42nd St. and 
10th Ave .. . .. . . . ............... . . . . 
200 Livingston Street, Brooklyn . . . .. . 
35 Mamaroneck Ave., White Plains . . . 
635 Madison Avenue 15th Floor . .... . 
NEW ARK 13 Commerce Street ....... .. . . . 
PADUCAH Barkley Field . . .. . ...... . . . . .. . 
PHILADELPHIA Bellevue-Stratford Hotel . . . 
PORT ARTHUR Jefferson County Airport . . . 
PORT-Au-PRINCE, HAITI c/o Nadal and Co. 
SAN JUAN, PUERTO RICO Caribe Hilton . . . . 
SAVANNAH Manger Hotel .... ..... .. ... . . 
SELMA Selfield Airport ... . .. . . . ..... .. .. . 
SHREVEPORT Captain Shreve Hotel ... . .. . . 
SPARTANBURG Memorial Airport .. .. ... . . . 
SPRINGFIELD Municipal Airport ..... . . . .. . 
ST. Lams Statler Hotel. .. . . ......... . . . 
MI tchell 2-2228 
3-1732 
SAratoga 7-9900 
YUkon 2-4321 
3313 
9-0045 
ADams 3-0267 
TRinity 4-7581 
5-3232 
7131 
UNiversity 4-7353 
GArfield 1-5511 
TOLEDO Commodore Perry Arcade .. . ..... UNiversity 5-2366 
WASHINGTON 1605 K St., N. W., and 
Washington Hotel. .... ............... District 7-9600 
DELTA'S 
"SPECTACULAR" 
SIGNS 
TOP: An impressive 
1958 addition to 
the electric sky- 
line of Havana's 
Malecon Drive. 
LEFT: A 100-foot 
"spectacular" faces 
city-bound traffic 
on Atlanta's 
new Expressway. 
RIGHT: One of the 
few "spectaculars" 
on Chicago's 
Michigan Boulevard, 
as it shows from 
the Tribune Plaza 
and Wrigley Tower. 
 DIRECTORS 
OFFICERS 
TRANSFER 
AGENTS 
REGISTRARS 
COMMON STOCK 
AUDITORS 
ANNUAL MEETING 
Tonn G. COLE 
Atlanta, Georgia 
R. W. COURTS 
Atlanta, Georgia 
C.H. DOLSON 
Atlanta, Georgia 
EDWARD H. GERRY 
New York, New York 
C.H. DOLSON 
Vice President-Operations 
R. W. FREEMAN, CHAIRMAN 
New Orleans, Louisiana 
JOHN R. LONGMIRE 
St. Louis, Missouri 
R. s. MAURER 
Atlanta, Georgia 
C. H. McHENRY 
Monroe, Louisiana 
WINSHIP NUNNALLY 
Atlanta, Georgia 
LAIGH C. PARKER 
Atlanta, Georgia 
C. E. WOOLMAN 
President and General Manager 
LAIGH C. PARKER 
Vice President-Traffic 
and Sales 
w. T. BEEBE ERLE COCKE, JR. 
Vice President-Personnel Vice President-Civic Affairs 
R. H. WHARTON C. H. McHENRY 
Asst. Vice President-Personnel Secretary-Treasurer 
CATHERINE FITZGERALD J. R. HOWELL 
Assistant Treasurer Assistant Treasurer 
The Citizens and Southern National Bank, Atlanta, Georgia 
CARLETON PUTNAM 
Washington, D. C. 
R. J. REYNOLDS 
Winston-Salem, N. C. 
J. WoonALLRonGERS 
Dallas, Texas 
C. E. WOOLMAN 
Atlanta, Georgia 
Tonn G. COLE 
Vice President-Admin- 
istration and Finance and 
Assistant Secretary 
R. s. MAURER 
Vice President-Legal 
T. M. MILLER 
Asst. Vice President- 
Traffic and Sales 
HUGH H. SAXON 
Assistant Treasurer 
I . 
The First National City Bank of New York, New York, New York 
Trust Company of Georgia, Atlanta, Georgia 
J.P. Morgan & Co., Incorporated, New York, New York 
Listed on the New York Stock Exchange 
Arthur Andersen & Co. 
October 21, 1958, Monroe, Louisiana 
 ,.,,.. S.ual 
' DAT AND PLACE OF ORIGIN"'L ISSUE 
ACCI DEPl USE ONLY 
GENERAL OFFICES ATLANTA AIRPORT ATLANTA , GEORGIA 
Receipt AIR EXPRESS 
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'Y/JIYJSS 
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- 
 Reprinted by Delta Air Lin e s , Inc. for the 1958 Annual Report to Stockholders 
The President 
The White House 
Washington, D. C. 
Dear Mr. President: 
THE WHITE HOUSE 
WASHINGTON 
July 28, 195 8 
I have the honor to transmit a report concerning the status and 
economic significance of the current i~vestment program of our major 
air carriers. The report was prepared at rny request by Dr. Paul W. 
Cherington, Professor of Business Administration, Graduate School 
of Business Administration, Harvard University, who is a nationally 
recognized authority in the field of transportation. The report is 
designed to set forth an objective analysis of the impact of the airline 
investment program on the over-all national economy. 
The report does not recommend any program of financial assist- 
ance to the carriers. It does point out, however, certain steps which 
might well be taken by various Government agencies, within the frame- 
work of existing authority, to facilitate the success of the equipment 
program. This program represents a major transition of our domestic 
trunklines and international carriers from piston to jet aircraft. 
Relative to the national economy, this program is significant. 
It calls for a gross investment by the airlines of approximately $4 
billion and a net investment of $2. 6 billion by 1962 in aircraft and 
airline-owned facilities. This substantial investment of private capital 
is a dynamic element of our national economy which should not be 
permitted to falter. 
The report purposefully avoids considering the implications of a 
modern air transportation system as related to our military posture, 
international prestige and improved public service. In confin~ng itself 
to the status and economic significance of this private investment 
program, the report concludes: 
1. That the equipment program is not unreasonably large or 
unnecessarily accelerated, provided the carriers vigorously 
develop new travel markets. 
2. That several of the carriers have not completed the necessary 
financing arrangements to buy needed equipment. Of $1.4 
billion which the carriers must raise from private sources, 
arrangements for $650 million are still to be made. 
 3. That inability of the carriers to succeed in financing any major 
portion of the equipment program will pose serious problems: 
(1) to the airlines and the preservation of a sound competitive 
domestic and international air route system; 
(2) to the aircraft and engine manufacturers and their 
5, 000 vendors who have invested heavily in the jet 
transport program; 
(3) to the national economy 
(a) through loss of some portion of the 120, 000 jobs 
estimated to be directly involved in the program 
at its peak. In addition, there is a potential loss 
of indirect employment estimated to be at least a 
multiple of the direct; 
(b) through the loss of economic stimulus which this large 
private investment program would provide; 
( 4) to the Government 
(a) through a possible return of some airlines to subsidy; 
(b) through pressure on Government. (on the military and 
to be resisted) to purchase jet transports not delivered 
to airlines and thereby recover development costs. 
The report also points out that, if the carriers are to have an 
opportunity to finance their equipment program at reasonable cost, 
the industry must be able to show private lenders and investors a 
favorable level of earnings. From 1950-1956, airline earnings were 
relatively good. In 1957, earnings were depressed and in 1958 to 
date have been still lower. These reduced earnings (losses for 
certain of the carriers) unfortunately occur at the most crucial stage 
of the financing for the equipment program. The only apparent way 
in which a reasonable earnings level can be achieved in time to attract 
adequate financing appears to be: 
1. Through elimination or reduction of certain fare discounts 
now in effect. 
2. Through increased promotion and reduced fares of air travel 
during off-peak periods. 
3. Through increased fares for certain classes of air service. 
4. Through continued aggressive action on the part of 
management to improve their operating efficiency. 
 The report suggests that, while the initiative for developing 
specific fare changes should be left to the carriers, the Civil 
Aeronautics Board must examine the carriers proposals promptly, 
with full realization of the broad implications of the present equipment 
program. In this connection, the report points out that, since 1949, 
the carriers have had two small fare increases, the most recent 
one being in February 1958. Despite these increases, the real cost 
of domestic air travel (adjusted for changes in the value of the dollar) 
has declined by 9 percent. A pending CAB proceeding relating to 
domestic passenger fare levels is not due for decision until March 
1959. By that time, the success or failure of major segments of 
the equipment program may well have been determined. 
Although the report does not recommend any broad program 
of financial assistance to the carri~rs by the Government, it does 
set forth various measures that, if taken by the appropriate agencies 
of the Government within their existing authorities, would further 
the equipment program. The thrust of Dr. Cherington1s analysis 
is to the effect that the carriers, at this time, should be given 
reasonable latitude to work out their own solution to the problem 
of equipment financing. With this conclusion I agree. 
The report discusses the question of the proper size and 
composition of MA TS and the allocation of MA TS traffic between 
military-operated aircraft and those of commercial airlines. 
Your recent discussions with the Secretary of Defense called 
for an analysis and review of the military role performed by MATS 
in peace and war, and a report as soon as practicable. 
The report also suggests a review of those Government policies 
affecting the disposition by the airlines of piston aircraft which will 
be replaced by jet and turbo-prop aircraft. As Chairman of the Air 
Coordinating Committee, I have initiated this review. 
I recommend that this report be transmitted to the Congress 
as information to the appropriate committees and also to the 
appropriate agencies of the Government, for their information and 
such action as they may deem appropriate within the framework of 
existing authority. As the airline equipment program appears to 
possess relatively wide public interest, I also recommend that the 
report be made public. 
Respectfully, 
t!tf! ~a-d.L- 
E. R. Quesada 
Special Ass,istant to the President