DELTA AIR LINES, INC. ~ - 1959 ANNUAL REPORT COMPARATIVE SUMMARY OF OPERAT IONS Dolum expressed in thousands except per share figures Operating Revenues ..................... . Operating Expenses (excluding depreciation). Operating Income (excluding depreciation) .. Depreciation expense .................. . Operating Income after depreciation ....... . Net Income from Operations, after Taxes and other charges .................... . Total Earnings .......................... . Shares Outstanding ...................... . Earnings per Share ...................... . Total Stockholder Equity ................ . Stockholder Equity per Share ............. . 1959 l 03,805 S 85,5.SO $ 18,255 $ 8,870 $ 9,385 S 4,062 S 4,062 1,122,221 $3.62 $ 37,4 10 $33.34 Revenue Passengers Carried. . . . . . . . . . . . . . . 2,988,241 Available Seat Miles (000)................. 2,622,740 Revenue Passenger Miles (000). . . . . . . . . . . . . 1,554,630 Passenger Load Factor. . . . . . . . . . . . . . . . . . . . 59.28% Years ended June 30 195 8 1957 $ 88,173 $ 78,596 $ 76,277 $ 65,782 $ 11,896 $ 12,814 $ 9,354 $ 6,729 $ 2,542 $ 6,085 $ 932 $ 2,539 $ 1,063 $ 2,622 1,122,045 1,121,944 $ .95 $2.34 $ 34,020 $ 33,966 $30.32 $30.27 2,728,220 2,572,982 2,479,428 2,206,408 1,408,857 1,299,482 56.82% 58.90% 1959 u L REPORT CONTENTS Page Report from the President and General Manager . . . . 2 - 9 Financial Results. . . . . . . . . . . 2 - 3 Services Rendered . . . . . . . . . 4 - 5 Equipment and Facilities. . . . 6 Personnel. . . . . . . . . . . . . . . . . 6 Regulatory Matters. . . . . . . . 6 - 7 Capitalization and Financing. 8 The Future Outlook. . . . . . . . 9 The Delta Jetliners ........... 10 - 11 Financial Statements .......... 12 - 16 Balance Sheets ............. 12 - 13 Statements of Income....... 14 Statements of Capital Surplus and Retamed Earnings.... 15 Auditors' Certificate........ 15 Notes to Financial Statements 16 Ten Y car Summary of Operations ................ 18 - 19 Ticket Offices. . . . . . . . . . . . . . . 20 Directors and Officers ....... . 21 System Route Map ......... Fold out Back Cover 1 2 FINANCIAL RESULTS ANNUAL REPORT TO THE STOCKHOLDERS The 1959 fiscal year wa an important period for Delta Air Lines, as we extended the volume and quality of the services offered to the public, establish d identification in new markets, and intensified our preparations for jet operation . In keeping with th g neral improvement in busin ss activity, significant gains in all categories of traffic were achieved. Net arnings after all charges and taxes amounted to 4,062,222, equal to 3.62 per share and marking a sharp recovery over the previous fiscal year. Financing wa arranged for the outstanding commitments for 16 jet aircraft, without present or future potential dilution of stockholder quity. Revenues - Total operating r venues reached a new high of $103,805,000, a gain of $15,633,000 or 17. 73% over the 1958 period. The major portion of this increase ($13,844,000) was registered in passenger revenues, which increased 17.26% to $94,062,000. The principal factors contributing to this larger revenue volume were (1) the temporary interruption of certain competitive services be- cause oflabor difficulties, (2) the effect of passenger fare increases authorized by the Civil Aeronautics Board in February and October, 1958, (3) the general recovery from the 1958 recession, and ( 4) the excellent passenger acceptance of the new luxury "Royal Service" inaugurated during the year over your Company's major routes. The volume of service operated was expanded, and available seat miles rose 5. 78 % to 2,623 million. The 2,988,000 passengers carried by Delta generated revenue passenger miles ofl,555 million (up 10.35%) and developed a passenger load factor of 59.28 %, a substantial improvement over the 56.82 % passenger load factor of the preceding year. Revenues received from cargo operations (mail, freight and express) amounted to $7,238,000, a significant 26.90% increase over the preceding year. Total cargo revenue ton miles were up 24.04% to 25,786,000 for the year. Major progress was made in the development of markets served by the C-46 all-cargo airplane fleet operated by your Company. The growth in the volume of freight moving by air has been remarkable, and the future potential is promising. Expenses - Operating expenses totalled $94,420,000 for the year, representing a 10.26% in- crease, and were incurred in achieving a 11. 90 % increase in total revenue ton miles. The largest dollar expense increase was experienced in payments to or for the benefit of em- ployees which rose $5,413,000 to $42,741,000. The number of employees at year-end was 665 greater than at the beginning of the year, as a result of staffing the new cities added to Delta's system and in preparation for jet service. General wage and salary levels were adjusted upward during the year in keeping with the industry trend. Expenditures of $3,318,000 for food and supplies for passengers were 30% higher, occasioned by greater passenger volume and the addition of "Royal Service" flights, and the provision of meal service on daycoach flights. The additional investment in providing the very finest service to our passengers has paid handsome dividends in customer satisfaction and patronage. Net depreciation expense of $8,870,000 did not vary significantly from the previous year, as no new aircraft were added to the fleet. Unit operating costs increased slightly. The cost of producing a seat mile for sale rose from 3.45 to 3.60, and the cost of an available ton mile produced was 29.14 compared to 28.44 the preceding year. Earnings and Dividends - Net earnings for the year ended June 30, 1959, after all charges and taxes, were $4,062,222, equivalent to $3.62 for each of the 1,122,221 shares outstanding. This com- pares to the $1,063,155 (including $131,409 in net profits from flight equipment sales) earned in the preceding year. There were no sales of aircraft during the 1959 fiscal year. Serving Royal Jet dinner at "unitized" seat in deluxe section of Delta's new DC-8 Jetlirn 1959 1958 1957 Over 20 years ............ 94 82 67 15 - 20 years ............ 367 329 233 10-15 years ............ 1,282 1,184 1,137 5-10 years ............ 1,237 1,226 1,199 As of June 30 1- 5 years ............ 2,465 2,381 1,923 Less than 1 year .......... 1,278 856 1,283 Total .................. . 6,058 5,842 SERVICES RENDERED Int re t e f '629 0 and ther n n- peratin item re ulted in net 11 11- perating har 55 htl 1 than in th car b fi re. A in the 195 fi al year, intere t applicable to njet flight equipment a apitalizcd t be me part f the st f the equipment up ; intcre apitalized in th 195 fi al y ar am unted t $ 07,000. a h earnings (n t after ta e plu d pre iati n) wer 12, 0 equivalent t '11.52 per hare f 1 n . P liti al unre t in the aribb an ntinued t depre s bu inc and t uri t travel t that area and a in urr d in ur internati nal pcrati n . f 30 a shar were paid t t kh lder n March 2, 1959 and June 1, 1959, utiv ear f divid nd payment and making y ur ompany' dividend f the ut tandino- in the indu try. in e 1949, dividend payments have aggregated 7 92 equal t 9.55 per har and 29.36 ft tal arning . In additi n, a ca h dividend of 30 a hare a de lar d n July 25 1959 payable eptembcr 1, 1959 to t ckh lders of record at the cl e fbuine onAugut14 1959. Royal ervice Fli hts - The intr ducti n f Delta's " R oyal ervice" Right with Douglas DC-7 and D -7B equipment wa ne f th ervicc highlight of the year. Offering the very fin est in luxury r 1ce, ith c mplimentar hampagne, choice of meal entree and cabin service with three stew- arde e the uperi r quality Right (at n extra fa re) quickly 6 came highly popular with the tra eling publi . The additional patronage of these flights i making a ignificant c ntribution to r venue and earnings. Aircoach - The volume f reduced-fare airc ach service was further expanded, and passenger load factor on coach Rights were slightly above the average fo r total operation . The growth and up ard trend of aircoach operation i indicated in thi tabulation, which shows the relationship of aircoach and first class service fi r the past five years: Years ended June 30th AVAILABLE 1955 1956 1957 1958 1959 EAT MILE Aircoach ......... . .... 22% 30% 38% 38% 41 % First Class ...... . . . .. . . 78 70 62 62 59 Total ......... . ... 100% 100% 100% 100% 100% In terms of passenger miles, the growth of aircoach is particularly impressive: Years ended ]11ne 30th REVENUE 1955 1956 1957 1958 1959 PASSENGER Aircoach . . ...... .. .... 234,897 334,999 479,842 540,680 624,425 MILES (000) First Class ... . .. ... .. . . 717,529 745,268 819,640 868,177 930,205 Total. ... ... .. .... 952,426 1,080,267 1,299,482 1,408,857 1,554,630 Each power unit of the DC-8 develops 13,000 lbs. thrust. 1959 REVENUE DOLLAR SOURCES Mall 2,151,953 2.07~ Other 1,015,832 .98 Twelve 111011/hs ended Ju11e 30, 1959 Passenger and Excess Baggage S95,552,087 92 .05 Employees' salaries and related costs* S-1-2,740,8-1-6 41.17 DISTRIBUTION epreclatlon and ence of Property uipment 58,870,785 8.55 nd Oil 513,474,175 12.98 Materials and outside Food and supplies for Passengers $3,318,117 3.20 Advertising 53,073,117 2.98 Other operating costs $12,290,134 11.84 Capital Costs {Interest and Dividends) 51,301,973 1.25 ' - - - - - - - - - - - - - - - - - Taxes $6,801,861 8 .55 '---- - -- - - - - - - -- - -Retained for use in Total I liar R evenue 103,805,445 * Salaries, travel, employee tll('!{are a11d payroll taxes Airfreight - Accompanied by an aggressive sales and promotion program, Delta's airfreight servi es are generating a constantly-increasing volume of traffic and revenue. The Company's five -46 all-carg planes provide service to major cities and, coupled with the cargo service available on regular passenger flights, offer distinct benefits to the shipping public. Available capacity for air cargo will be substantially augmented when Delta's DC-8 jet fleet is placed in service this fall. onsideration is being given to operating, in conj unction with American Airlines, through- plane all-cargo flights between the Southeast and California, utilizing Douglas DC-6A aircraft. Your Company is following with much interest the major attention now being focused upon the development of cargo airplanes which will permit the high speed movement of large volumes of freight at lower rates than are now feasible. Air Mail - A record volum of air mail was carried in the 1959 fiscal year, and the 5,397,000ton miles of air mail produced $2,152,000 of air mail revenue at an average compensatory yield of 39.88 a ton mile, pursuant to a multi-element rate established for the industry by the CAB in 1954. This compares with 38.96 a ton mile in the 1958 fiscal year and 51.43 a ton mile five years ago. In addition, your Company continued its cooperation with the Post Office Department in the movement of first class mail between northern points and Florida cities on an experimental basis. In July, 1959 the Postmaster General submitted to Congress proposed legislation which would permit the use of air carriers for the movement of all classes of mail when he finds it to be in the public intere t. This proposal, which is generally endorsed by the airlines, further emphasizes the growing imp rtance of the airline industry to the Nation's commerce. No new aircraft were added to the fleet during this fiscal year, and all orders for piston-engined equipment have been filled. The operating fleet at June 30, 1959 consisted of the following aircraft: Manufacturer Model Douglas .. .. ... . . ..... DC-3 Douglas ......... ... .. DC-6 (owned) Douglas ..... ... ...... DC-6 (leased) Douglas ... ... ....... . DC-7 / DC-7B Convair. ... ... . .. .. .. 340 / 440 Curtiss. . . . . ... ...... C-46 * Includes two all-cargo planes Number 12* 7 5 21 28 5 Seating Con.figuration 25 76 60 69/90 44 Cargo business S3,388,952 3.27 5 6 EQUIPMENT AND FACILITIES PERSONNEL REGULATORY MATTERS In mid-July, 1959, sh rtly after the 1 se f the fiscal year, the first of six Douglas DC-8 Jetliners a delivered, clo ely D 11 wing the 30th anniversary of Delta's passenger service. Delta will inaugu- rate DC- jet ervice over it major r utes in the fall of 1959, initially serving New York, Atlanta, Chicag , Miami, Detr it, New Orlean , and Dallas. Earl placement of rders D r a $74 milli n fleet of jet aircraft, plus advance planning and a two year training program, have enabled your Company to be in the vanguard of domestic carriers to intr due the first jets expre sly de igned for ommercial use. Th D uglas DC- , rated at nearly 600 miles per hour, seating 119 passengers, is powered by the mmer ial version of the militarily proved and tested Pratt & Whitney J-57 jet engine. Both in app arance and performance the DC-8 truly ranks as the Queen of a long dynasty of distinguished D uglas commercial planes. F 11 wing the DC-8 closely will come delivery of Delta's 10 Convair 880 jetliners, beginning in Januar , 1960. The smaller but slightly faster "880" seats 84 passengers and is powered by General Electric's CJ- 05 jet engine, commercial version of the J-79 which powers the B-58 Hustler bomber and other operational military aircraft. It is designed to operate over medium ranges and to land on somewhat shorter runways than the DC-8. Present plans call for the inauguration of Convair 880 service in the early spring of 1960. Expenditures for ground facilities and equipment were $1,269,000, approximately the same as the previous year. Delta's principal Jet Overhaul Base, centrally located at the Atlanta Airport, Atlanta, Georgia, is scheduled for completion in early 1960. The joint efforts of Delta employees through the years have established for your Company an envi- able reputation. Their experience, their skills, and courtesy and loyalty constitute your Company's greatest asset. Delta's personnel are well prepared for the advent of the jet age; more than 100,000 man hours have already been devoted to specialized training for jet operations, and chis program will be a con- tinuing one. Employees with five years of service or more now number almost 3,000, some 40% of the total. Decisions in New Route Cases -A year ago it was reported that the Civil Aeronautics Board had announced decisions in several major route cases involving Delta. Since the issuance of last year's Annual R eport these announcements have been confirmed by formal Board orders and your Com- pany has inaugurated service between Detroit, Toledo, Columbus, Dayton, Indianapolis, Louisville and the Southeast and has added Orlando, Tampa and St. Petersburg to its Florida service pattern. (Detroit, Toledo and Indianapolis were previously served only on routes oriented toward N ew Orleans and Houston.) Service to W est Palm Beach will be inaugurated as soon as expanded terminal facilities have been completed. Authorization for direct operations between Birmingham and Memphis has also made possible new services between Kansas City, Springfield, Little Rock, Memphis and the Southeast. In these same cases, the Civil Aeronautics Board extended a third carrier from Chicago to Atlanta and Florida, and also a third, fourth and fifth carrier between Atlanta and Miami. These awards, when fully activated, will substantially diminish the benefits that would otherwise accrue from the new Delta operating authority. The northward extension sought by Delta in the Chicago-Milwaukee-Twin Cities Case has been denied by the Board. Pending R oute Proceedings - Two proceedings now before the Civil Aeronautics Board are of great interest to your Company: The Southern Transcontinental Service Case - This proceeding, begun in March, 1958, will determine the need for single-carrier service between the Florida-Georgia area and California via the Houston and Dallas/ Ft. Worth gateways and numerous other cities. New DC-8 stewardess uniform designed by Edith Head, Fashion Chief of Paramount Pictures. Following civic appearances in Houston, Los Angeles, Miami and Washington, the presenta- tions of the nine carrier applicants opened in Washington on July 9, 1959. As a pioneer in the develop- ment of trans-southern traffic, Delta is a leading contender for a transcontinental award in this pr ceedjng. Currently your Company participates in the transportation of 75 percent of the passen- gers traveling between the Southeastern States and the Southwestern States. A final decision in this case is not expected before late in 1960. Domestic Cargo - Mail Services Case - This proceeding, a general investigation of the special- ized all-cargo air carriers, including the question of whether these specialty carriers shall receive subsidy for the carriage of freight, will have an important effect upon the future of Delta's cargo ervices. Delta, as an applicant in this proceeding, seeks to add nine additional Florida points to its carg services with a view to correcting the existing imbalance of directional cargo traffic. In addi- tion, the question of whether any or all of the existing all-cargo carriers should be replaced by all- cargo services provided by the domestic trunkline combination carriers, such as Delta, will be decided by the Board. Net Book Value Depreciation Net Book Value Depreciation Net Book Value Depreciation MILLIONS OF DOLLARS 10 20 30 40 50 60 70 80 90 Other Proceedings - Two other proceedings, not involving routes, are also of great importance to the Company: General Passenger Fare Investigation - An Examiner's Initial Decision in this important proceed- ing, a gen ral investigation of the passenger fare levels of the domestic trunk.line carriers, was issued n May 27, 1959. The Examiner recommended that domestic passenger fares should be increased to a point approximately 12 % above the pre-February, 1958 levels (an interim fare increase approxi- mating 6.6 0 was authorized effective February 10, 1958 and a second interim increase approxi- mating 3.5 was authorized in mid-October, 1958). The case was argued before the Civil Aeronautics Board during the latter part ofJuly, with the trunk airlines generally supporting the Examiner's recommendations. The Board's final decision is expected before the end of the year. Mail Rate O.ff"-- et Issue - On February 18, 1959, the Civil Aeronautics Board issued a decision in thi matter, ruling that Delta should repay to the U. S. Post Office Department $1,795,000 in mail pay r ceived by Chicago and Southern Air Lines, Inc. in the 1946-1952 period, subject to certain tax adjustments. The Company has filed a petition for reconsideration with the Board, which has not et been acted upon, and also has filed a protective appeal with the U. S. Circuit Court of Appeals for the District of Columbia. 7 8 SOURCES AND D I SPOSITION O F FU NDS (All amounts i11 thottsands) CAPITALIZATION AND FINANCING FUND PR VIDEO BY: Fiscal Years ended June 30 Total for 1959 1958 1957 1956 4 Years Net earnings, e eluding equipment sales ........... ... .......... $ 4,062 $ 932 $ 2,539 $ 3,369 $10,902 Equipment sales proceed , le s taxes .... ..... .. ... .. ... . .... ... . 158 93 2,499 2,750 Deferred income taxes, net, payable in later years . . ....... .... . . 2,120 2,817 1,420 1,109 7,466 Depreciation accruals ...... . ...................... . ...... .. .. 9,637 9,873 7,239 6,983 33,732 ale fc 111111011 tock ....................................... 4,329 4,329 B rrowings under credit agreements . . .. ..... . ........ ...... ... 5,000 12,600 6,000 23,600 Miscellane us, principally expenses not requiring cash expenditures . 16 71 283 370 FUND U ED FOR: $20,819 $26,396 $21,691 $14,243 $83,149 Flight equipment additions . ........................ . ........ . $ 2,453 $20,452 $12,058 $ 7,029 $41,992 Advances for flight equipment on order (net) ................... 11,507 3,404 4,310 4,008 23,229 Ground facility and equipment additions ....................... 1,269 1,298 1,240 1,181 4,988 Debt reduction: Redemption of 5 2,- % convertible debentures ................ 1,111 1,111 Repayment of bank borrowings ........................... 2,425 2,425 ash dividends . . .......... . ................................. 673 1,010 1,346 923 3,952 All other purposes ... .............. ...... ................. . .. 406 161 542 156 1,265 S16,308 $26,325 $19,496 $16,833 $78,962 et change in Working Capital. .. . ........... . ....... . ......... +$ 4,511 +$ 71 +$ 2,195 - $ 2,590 +$ 4,187 Working Capital at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . 5,752 5,681 3,486 6,076 6,076 Working Capital at end of period. ......................... . ... . $10,263 $ 5,752 $ 5,681 $ 3,486 $10,263 The amount of the mail pay refund, if any, which the Company ultimately may be required to make cannot now be determined and, by consent of all parties, the effectiveness of the Board's order has been stayed by the Circuit Court pending judicial review. Further detail is contained in Note 3 to the financial statements. Credit Agreements - Arrangements for the financing of the jet flight equipment on order have been completed by an amendment of the 1956 Bank Credit Agreement and the execution of a Note Purchase Agreement with a group of four insurance companies. The bank credit agreement, negotiated in early 1956, provided for a maximum credit of $30,000,000. By appropriate amendment to this Agreement the amount of the credit available at any one time was increased to $35,000,000. Borrowings thereunder bear interest at the rate of 4 % per annum and are evidenced by unsecured notes maturing December 30, 1960, at which time the out- standing balance is to be consolidated into one note repayable in quarterly installments beginning in March,1961, and ending in December,1967. As of June 30, 1959, $30,000,000 had been taken down under this agreement, replacing borrowings in the same amount under the superseded agreement. 1------5 -Y-EA _ R _T_ O _T- A L-[.;. Act11al Ear11i11gs Adj11stcd Ear11i11gs Cash Di11 id'11ds Including Pro.fits from Sale of Equipment '55 '56 '57 '58 '59 EARNINGS AND DIVIDENDS PER SHARE DOLLA RS PER SH AR E '50 '51 '52 '53 '54 '55 '56 '57 '58 '59 STOCKHOLDER EQUITY PER SHARE * Adjusted to Reflect 25% Stock Divide11d Paid ],me 29, 1956 34 32 30 28 26 24 22 20 18 16 14 12 10 A '""~""'' n '"""~""'""' om ,l~ DELT,\ .\IR ER\"ICE. lnc. C. E. Woolman, President and General Manager, contrasts scale model of DC-8 with Travelaire featured in company's first passenger service advertising. In November, 1958, the Company concluded a credit agreement with four insurance com- panies (The Prudential Insurance Company of America, The Mutual Life Insurance Company of N ew York, Connecticut General Life Insurance Company, and The Connecticut Mutual Life Insurance Company) providing for their purchase of $25,000,000 of unsecured notes in 1959 and 1960, bearing interest at the rate of 6 %. Repayments to the insurance companies are to be made semi-annually in required amounts of $1,250,000 beginning on April 1, 1968 with final maturity October 1, 1974. As of June 30, 1959, $5,000,000 had been borrowed under this agreement. In both agreements, dividends are limited to 70 % of net earnings after June 30, 1958 plus $1,000,000; as indicated on the June 30, 1959 balance sheet, accumulated earnings on that date of $3,170,000 were unrestricted. The agreements, which provide for accelerated repayment privileges subject to certain qualifications, contain additional provisions governing maintenance of working capital and creation of additional debt that are not considered onerous. Advance Payments - Advances of $11,507,000 were made to the aircraft manufacturers during the year against the commitments for the jet fleet, bringing the total of such payments to $23,229,000 at year-end. Stockholder Equity - The book value of each of the 1,122,221 shares of common stock out- standing increased by $3.02 during the year to $33.34. Total stockholder equity at June 30, 1959 was 37,410,000. Each of the many forward steps in aviation which have occurred since your Company first began passenger service 30 years ago has been accompanied by its own unique problems, and the forth- coming jet era will be no exception. Delta personnel, experience, and equipment enable us to face the future with confidence, and we look forward to continuing full participation in this new chapter in aviation history. September 9, 1959 PRESIDENT A D GENERAL MANAGER THE FUTURE OUTLOOK 9 10 ~ The inauguration of DC-8 jet service in September, coming within weeks of the 30th anniversary of Delta's pioneering of scheduled passenger service across the South, is an aviation event of historic significance. It means new and higher standards of speed and comfort and even safer, more luxurious, vibration-free flight. It means faster air freight and air express service, swifter delivery of the mails. Most importantly, it means new opportunities for continued growth and service and an improved competitive posi- tion in the industry for your Company. The jets are destined to add a new dimension to Delta's reputation for hospitality and to make possible a degree of comfort never before attainable. Passengers on Delta's Royal Jet Service flights will be quick to recognize this new standard, beginning with streamlined baggage handling techniques and the swift and orderly dispatch with which ground crews service the huge airliner with specially designed equipment developed for the Jet Age. Inside the Douglas DC-8 the rich harmony of color, texture and indirect lighting, together with striking murals and other features of the custom-designed interiors con- tribute to a pleasant, relaxing atmosphere. The broad ceilinged, wide-aisled cabin is completely air-conditioned on the ground as well as aloft. For dining aloft, the DC-8 is equipped with four electronic kitchens in two separate galley areas, one forward and the other aft. There are two convenient lavatories for each of the two cabins. New "unitized" seats offer full-stretch leg room, lights for reading plus others for dining or writing on the substantial fold-out tables, individual air vents, service call- buttons and other accessories, all within the seat unit. The first class section contains 40 seats, featuring 8-inch arm rests and foot hassocks, and also includes a spacious 7-passen- gcr lounge area. The 72-seat supercoach compartment also features "unitized" seat- ing and shows the same deft touch of the decorator. THE DELTA JETLINERS A In six months of extensive flight testing at the Convair plant in San Dieg , Calif. the new Convair 880 jet transport has met or exceeded all performance estimate . Delta will receive the first of a fleet of ten 880' s in January, 1960. Speed, luxury and versatility distinguish chis medium-range 84-passenger jetliner whose short takeoff and landing requirements will enable Delta to bring Royal Jet Service to a still larger portion of the area served. The Convair 880 will be the world's fastest commercial airliner with a cruising speed of more than 600 miles-an-hour. It can cruise at 35,000 feet, and at this height the cabin is pressurized to the equivalent of a 6,000-foot altitude. Luxury is designed into the 880. Extra-spacious aisles and 72 over-size scats in pairs on each side plus a 12-passenger club compartment will establish new standards in air travel. Delta 880's will have four large buffets for preparing and serving hot food and beverages. Three lavatories are ea ily accessible in the 880 cabin. Built for medium-range operation, the Convair 880 incorporates the extra strength and rugged airframe required for frequent landings and takeoffs that are characteristic of service on shorter trip lengths. 11 ASSETS 12 DELTA AIR LINES. INC. CURRENT ASSETS: Cash .. .. . .............. . . ........ ................. . . . . ... . ... ...... . Accounts receivable - Traffic (net) ............................. ........... . ....... . . ... . . Other ................. ..... ... . . . . ...... .. . . . . . .. . ... ..... . . . . . .. . 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: Cost Flight Equipment 1959 ................................... ... $86,424,713 1958........... . . . ........ . ... .. .... . ..... 83,951,218 R eserves for depreciation 1959 ..................................... . 1958 .............. .. ....... ....... .. . .... . 44,784,235 35,988,677 Other Property and Equipment $11,249,565 10,000,870 5,593,616 4,815,370 Advance payments for new flight equipment .... .. .. . . ........... ... . . .. . DEFERRED CHARGES, ETC.: Advances for leased facilities, being amortized .......................... . . Preparatory co t for jet operations, to be amortized ........ . .. ... ... ... . . . Other deferred charge ............ .. .... ........ ... .. . . .... ..... ..... . A 1 959 $15,227,334 4,099,292 3,694,472 816,593 110,188 $23,947,879 $ 388,270 $97,674,278 50,377,851 $47,296,427 23,228,615 $70,525,042 $ 133,665 349,642 82,402 $ 565,709 $95,426,900 195B $ 7,278,455 3,106,529 2,281,505 1,665,000 823,736 298,375 $15,453,600 $ 410,497 $93,952,088 40,804,047 $53,148,041 11,721,900 $64,869,941 $ 124,712 82,557 $ 207,269 $80,941,307 BA LAN C E S H E E TS June 30, 1959 and 1958 CURRENT LIABILITIES: Accounts payable and accrued liabilities . .. . ...... .. .. ... .. .. ... ... . ... .. . Tickets outstanding subject to refund or use .... . ... .. .. ... . . . . . . . . .. . .. . . Accrned Federal and state taxes on income ... . .............. . ... . ....... . Air travel plan deposits .. . .. . . . .. . .. .. ... . .. ... ........... . . . ... . . . ... . Total current liabilities ... . . .. . .. ... . ... ... . . . . ..... . ... .. .. . LONG-TERM NOTES PAYABLE (Note 2) ... .. ...... .. .. . .......... . . . RESERVES AND DEFERRED CREDITS: Deferred Federal income taxes ...... . . . . . ... . ... . ...... . .. ... . . ... . .. .. . Reserve for contingencies (Note 3) . . .. . ... .. ... . .. .. .. .......... .. .... . Other . .. .. . . . ..................................... ... . ..... .. .. .... . STOCKHOLDER EQUITY: Common stock, par value $3.00 per share - Authorized 1,500,000 shares [ssued and outstanding 1,122,221 shares at June 30, 1959, and 1,122,045 shares at June 30, 1958 ........... .. .................. . Capital surplus . . .. . . ... .. . .. . . ... ..... ... ............... ... . . .... ... . Retained earnings (of which $14,910,539 is not presently available for cash dividends under terms of credit agreements) .. . ... . ......... . .. . PURCHASE COMMITMENTS (Note 1) The accompa11ying notes are a11 inte,1;ral part of these statements. 1959 $ 8,158,931 1,521 ,916 2,878,747 1,125,400 $13,684,994 $35,000,000 $ 8,791,000 500,000 41,330 $ 9,332,330 $ 3,366,663 15,962,088 18,080,825 $37,409,576 $95,426,900 1 9 5 B $ 7,420,630 1,209,782 1,071,425 $ 9,701,837 $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 $80,941,307 LIAS I LITI ES 13 s TS 0 NCOME For t/ie Years ended ]1111e 30, 19 59 and 19 5 REVE U Pa enger .... .... . . ................................................ . U .. Mail .... ..... ..... . . . ... ..... . ........... ... . ..... ..... . .... . . Freight ................................... . ........ . ... . ..... . ..... . E pres ............................................................ . E 'ces baggage ....... . ... . ... . ................... . . . .. . .. .. ........ . cher operating revenue - net ....................................... . Total operating r venues ... . ............. . ...... . ......... . OPERATI EXPEN Flying operation ...................................... . .......... . . . Maintenance . ... . ... ... ... . ... ..... .... .. . ..... ..... . . ... . . .. .. . ... . Aircraft and traffic servicing . ..... . ..... .. . . .. .. .. ............ . ... . ... . Promotion and sale ........... ........ . . . .. .. . . . ... ....... . .. ...... . Pa senger ervice . .. ............. ... . ... ..... .... .. . . .. .. .. . ......... . eneral and adrnini trati ve ..................... . ..... . ....... .. .. . ... . Operating expenses before depreciation and amortization . .... . ...... .. ...... . .. .... . Depreciation and amortization - Flight equipment owned ...... . .. ... . . .............. .. ....... . .... . Less - Net depreciation credits ari ing from equipment interchange agreements . . ...... . . .. . .... . . . ... . ... . ... . ...... . . . Ground property and equipment ................................... . Depreciation and amortization .................... . .... .... . Total operating expenses .. . ............................... . Income from operations before income taxes ............... . OTHER EXPEN E (INCOME): Interest expense (less capitalized interest on advances for flight equipment - 807,000 in 1959 and $395,000 in 1958) .. . ..... . ........... .. ........ . O ther- net . .... . .. ...... . .. .. .......... . . .... ... ... . . .. ...... . ... . Total ocher expen e . . . ... . . . .. . . . ...... . . . . ... . . .. ...... . Income before income taxes ....... . .............. . .. ..... . . PR O VISION FO R T AXES O N INCOME: Current Federal and state income taxes .. . ..... . .. .. ... . . . . . ... .. .... . . . Deferred Federal income taxes ...... .. . . . ...... . ..... . .. . .... ... ...... . Federal income tax refund arising from 1958 tax loss carry-back . ... .... ... . ...... . .... . ..... . . . . . . . ..... .. . Net inco1ne . . .. .. . . . . ..... .. .. . . . . . ....... . .... . .. . . . . . . . SPECIAL ITEM - Profit on disposition of flight equipment, less applicable income taxes of $142,000 ........ . . .. . ...... . ... . . . . . ... . N et income (and special item in 1958) . .... .. .. . . ..... ... . . . . A 1959 $ 94,061,577 2,151,953 3,879,389 1,206, 184 1,490,5 IO 1,015,832 $103, 05,445 $ 27,969,920 20,909,722 15,151,804 11,797,470 6,850,847 2,870,063 $ 85,549,826 $ 8,801,536 (766,058) 835,307 $ 8,870,785 $ 94,420,611 $ $ $ 9,384,834 628,703 (75,091) 553,612 $ 8,831,222 $ 2,649,400 2,119,600 $ 4,769,000 $ 4,062,222 $ 4,062,222 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 14 The accompa11 yi11g notes are an integral part of these statements. S A EME TS OF CAPITAL SURPLUS AND RETAIN ED EARNINGS For the Yearended]une30, 1959 Balance at beginning of year ....................... . ............ . . .. ... . . Add: Net inco1ne . ..... ...... ... ............ ... ... ........... ..... ... .... . . Excess of proceeds over par value of 176 shares of conunon stock issued during year in exchange for scrip ................ ... ........... . . .......... . Deduct: Cash dividends on common stock - $.60 per share .......... . . .......... . Balance at end of year ($14,910,539 of retained earnings is restricted as indicated on balance sheet) .................................. ............ . ... . The acco111panyi11g notes are an integral part of these statements. To the B oard of D irectors Delta Air L. , llles, Inc.: Capital Surplus $15,961,710 378 $15,962,088 $15,962,088 Retai11ed Earni11gs $14,691,873 4,062,222 $18,754,095 673,270 $18,080,825 15 NOTES TO FINANCIAL STATEMENTS 1. FLEET EXPANSION PROGRAM: 2. LONG-TERM NOTES PAYABLE: 3. CONTINGENT LIABILITY 16 ]11ne 30, 1959 The Company has outstanding commitments fo r the purchase of flight equipment listed below, which together with related spare parts and acce cries, will require the outlay of approximately $50,771,385. T he Company accepted delivery of one DC-8 aircraft on July 22, 1959, and the remaining five DC-8 aircraft are scheduled for delivery in August, September and O ctober, 1959. Present commitments are: umber and Type of Aircraft 6 Douglas DC-8 (jet) . . ..... . ........................... . 10 Convair Model 880 (jet) .... .... . ....... ... .. . .. . ...... . Approximate Cost $34,000,000 40,000,000 $74,000,000 Advance payments on above flight equipment.. . . . . . . . . . . . . . . 23,228,615 $50,771,385 Date of Delivery 1959 1960 The Company has entered into a credit agreement with a group of twenty-four banks under which the borrow- ing of a maximum of$35,000,000 is permitted on 4% unsecured notes maturing December 30, 1960, at which time the outstanding aggregate balances on such notes will be consolidated into one 4% note repayable in 28 equal quarterly installments beginning on March 31, 1961. As of June 30, 1959, $30,000,000 had been borrowed thereunder replacing borrowings in the same amount under an earlier, superseded agreement. The Company has also concluded an agreement with four insurance companies calling for their purchase of $25,000,000 of 6 % unsecured notes to be issued by the Company in 1959 and 1960. Repayments under this agreement are to be made on a semi-annual basis beginning on April 1, 1968, with final maturity in 1974. As required by this agreement, $5,000,000 of unsecured notes had been issued as of June 30, 1959. The Supreme Court of the United States in a 1954 decision sustained the Post Office Department's objection to a Chicago and Southern Air Lines, Inc. (C & S) international mail rate order issued by the Civil Aeronautics Board (CAB) in 1951 (the so-called "offset" case). This decision required the CAB to review its original order and to redetermine the C & S international mail pay requirements for the period involved in accordance with the "offset" principles established therein. In 1956, the CAB ordered that, in addition to a determination in accordance with "offset" principles, the record be reopened for further hearing on the question of the proper mail rate level for international operations of C & S for the period December 16, 1950, through July 31, 1952. By order dated February 18, 1959, the CAB held that C & S had received excessive international mail pay of (1) $729,000 based on "offset" principles and (2) $1,066,000 during the reopened period of December 16, 1950, through July 31, 1952. Delta, as successor to C & S, feels that the CAB has erred in several respects in its determi- nations under the "offset" principles and that the CAB was incorrect in reopening the question of mail rate levels. Delta has appealed the CAB order and on May 4, 1959, the United States Court of Appeals for the District of Columbia, upon petition by Delta and without objection by the CAB or the Post Office Department, granted a stay of the CAB order pending completion of judicial review. The amount of mail pay refund, if any, that Delta may ultimately be required to pay cannot now be determined. The Company has provided a $500,000 reserve in connection with this contingent liability. DELTAs STORY TO THE PUBLIC THIS WINTER IT'S Delta FORTNE MOST Magnificent WAY TO Miami 1 -f ~ - li ~ - > . ' ", . if it wasn't for the .'.j fore you wouldn't know ~ ' it was a coach!" ~ - ~ - New Non-stop - - -_'"'"""" flights to . __ ,.:;_ ATLANTA ,.._, --- and to BIRMINGHAM "' _..=;-:: --~ --.-- ~ - ------ -09'---.. - During 1958-59 Delta inaugurated deluxe DC-7 Royal Service Flights, opened numerous routes to newly authorized cities, and announced the coming of the DC-8 jets. Extra hands assure extra(!!) luxuries tf/1' .l\ . on Delta , _ __ - ---- ----~ ---;...-~ ~d'o~~c9Z= z~-----~ --~ ~c::::~-:. :~v:H~ :.--=.-~ ::-~~~~-. ~:: ::.::: .,.__, .. , ......... -~,.._~ .. ,-: "' BALTIM ........ -- _,,,. - Only $33ao90 NEWYORK --,~ ':'.t!'.~-~ =:~ i -~-: - - ~ - ~----~~~ on DELTA DELTA Air Freight costs less ~ than you think! ~ "" - ... _ ' ... "' ,,, ....... .., ... . -- - ...,.., ,_, Woshin9ton .. ~ 4u Miarni , .. .'271 ' Chitogo ........ 2 8"1 Dallas .......... 40 New 0,le an.s. 22n Jack1onville .. 13.., Housfon ....... 34 Detroit .......... 30'" lam.po/St. Ptlfnhrg 19'"--- Lfil ~ 2:=~~--~!~~~ -~ How Delta's new Routes serve Atlanta ~- -:.~---- ThONLY NON-STOP to Detroit ...,_1..,-,..-s..., r._,...., .... ,. __ .. oo,...~C.-d- -.. ix. .,.,,,...._..i),)d Tampa/ ~~!.:~~u-~~ Dayton __ _ ~!!!!!!!le I ndianapolis ~~g~;1i~~~:~~~~ ~ ~~~:~~- Al.ooc.10.1.,, o:,ois.,..,-f1,ohh10 NiW YORK WASH INGTON IAlTIMORI! , PHILADELPHIA CHICAGO DALLAS tfOUSTON ,ow ORUANS Ml4MI ~ Plvt'1'lr,111 Sc1>l~ loJ11:ood>.ntM'l>0Y yc,11.,ptt>olrdo,-, 10 ....... ,.., .... , -..r., ... .to"l.,.tli.t,hl 1,!...,pt,h-'"""toUMU ROCII., Sll>tt"6!1tl0, 111-..1C4 NtUCIT1' - 1t1,, . ...... - wt, ... fl. WAYNI fOUDO COt.UMIUS , .. o :;r,,, .. ,.,,...,,t""'"' -ri.1,,..,1J).-l.l11J.M"!><0,, .. 7'"; :.:1t,"'~t:.:.: ~"' .. ~ :,,.:- .. :~~~ ~,II,! '-<<>f" IH<.1' <,NI,<,: <>f L( t'lll''V"''""m ,~t-~U" ~' .~t~--~:fr:~ m: ~ : (.,ui;,:':~r ......-.(ue,.,.....,r,.1v.m,:1J,cc' <>tG >01 n,..,.,.,Ji rf.,.,,..,,,..,..-"~ A DELTA ~ .... V ,I ..ii .. I _.pr --_,,,, ,JI" ..... ,,,. "" .... ir ~ ~ I MIL 1,600 1,500 1,400 1,300 1,200 1 ,1()() 1,000 900 800 700 600 500 400 300 200 LIONS '50 '51 '52 '53 '54 '55 '56 '57 '58 '59 REVENUE PASSENGER MILES - -.____ .____ >- - - - ,__ ,__ ._ - ,__ .,_ ,__ .____ .____ >- -- - ,__ .____ ,__ ,__ ._ - - ITT ,- ,- ~ - - - - - - Ml LLIONS REVENUE PASSENGERS CARRIED . ~ ,/ .<1 1111il,1ble To,i fi1iles ,, (Af,t/1011s)-.... ~ I '-.....__ ,, ,___ t-- Rr11tm1r TM Aldrs (A111/1<111J), .........._....,r 1--Rrl'l'1111r Pfo, 1 ,e At,lrs l\ ~i,"" (M1//i,11u) '\. i,"" - \ J ' I I'\. II ' ~ ---......... \ - \ I I - ~ --- 1 TON MILES AND PLANE MILES 340 320 300 200 260 240 220 200 180 160 140 1ro 100 80 60 40 20 A DECADE OF GROWTH A Years ended June 30 1959 1958 1957 Total assets ............................ . ......... $ 95,426,900 $80,941,307 $66,931,027 Current assets . ... . ... . .................. ... ...... 23,947,879 15,453,600 16,773,180 Current liabilities . . ........... . . . ..... . . . .. . ...... 13,684,994 9,701,837 11,092,231 Net working capital ... . ... .. . . . ... ... $ 10,262,885 $ 5,751,763 $ 5,680,949 Stockholder equity . . .. . .............. . ... . .... . .. $ 37,409,576 $34,019,718 $33,965,765 Stockholder equity per share* .. .. .. . ... . . . ...... .. . $33.34 $30.32 $30.27 Shares of common stock outstanding* .. . . . ... .. ... . . 1,122,221 1,122,045 1,121,944 Operating revenues Passenger ..... . . . ....................... . ..... $ 94,061,577 $80,217,086 $71,873,125 Mail. . . . . . ... . ... . ............ . .. ... ..... .. .. 2,151,953 1,795,885 1,636,218 Express ... . ........ .. .. . ... . ................. 1,206,184 952,510 1,015,947 Freight ................................. . ..... 3,879,389 2,954,896 2,230,512 All other ......... . ............. . ............. 2,506,342 2,252,318 1,840,201 Total revenues . . .... .. .. . .. . .. . ....... $103,805,445 $88,172,695 $78,596,003 Operating expenses (excluding depreciation) ......... $ 85,549,826 $76,276,726 $65,782,059 Depreciation . . . . ..... . ........................... 8,870,785 9,354,358 6,728,875 Total expenses .................... . .. $ 94,420,611 $85,631,084 $72,510,934 Operating ratio .. . . . ... .. ..................... 90.96% 97.12% 92.26% Net non-operating revenue or (expense) ............. $ (553,612) $ (599,865) $ (556,423) Net income before taxes .. . ... .... ..... .. .. . ....... $ 8,831,222 $ 1,941,746 $ 5,528,646 Taxes on income ................ .. .. . . ...... .. . .. 4,769,000 1,010,000 2,990,000 Net income . .. ............ . ...... . .. . $ 4,062,222 $ 931,746 $ 2,538,646 Net income as % of revenues ......... 3.91% 1.06% 3.23% Special item - profits from major flight equipment sales (after taxes) .. . .......... . ...... $ $ 131,409 $ 82,939 Total income and special item . .......... . .......... $ 4,062,222 $ 1,063,155 $ 2,621,585 Per share of stock outstanding* .......... . . . ..... $3.62 $.95 $2.34 Revenue plane miles (000) ................... . .... . 46,022 44,972 41,671 Available seat miles (000) . . ... ........... . . .. ...... 2,622,740 2,479,428 2,206,408 Revenue passenger miles (000) ........... .. ........ 1,554,630 1,408,857 1,299,482 Passenger load factor ......... . ........ . ........ 59.28% 56.82% 58.90% Available ton miles (000) . ... ... ...... . ...... . .... . 324,018 301,105 260,431 Revenue ton miles (000) ... . ..................... 174,936 156,332 141,861 Overall load factor .. . . ................. . ...... 53.99% 51.92% 54.47% Percent of scheduled miles flown . . ... . .. .. .. .. .... . 97.04% 97.40% 97.62% *Adj11sted to reflect 25 % stock dividend paid June 29, 1956. 1956 1955 1954 1953 1952 1951 1950 $54,638,388 $54,049,882 $48,089,997 $37,966,469 $16,836,905 $14,402,050 $12,371,851 15,140,819 18,762,696 15,888,546 14,706,498 7,186,793 6,093,494 4,262,201 11,654,690 12,686,444 8,861,111 9,192,041 6,618,627 4,541,282 2,950,443 $ 3,486,129 $ 6,076,252 $ 7,027,435 $ 5,514,457 $ 568,166 $ 1,552,212 $ 1,311,758 $28,357,864 $19,845,898 $16,233,227 $15,647,278 $ 9,808,493 $ 8,658,043 $ 7,401,245 $28.47 $23.99 $21.64 $20.86 $15.69 $13.85 $1 l.84 996,219 827,391 750,000 750,000 625,000 625,000 625,000 $60,557,924 $53,966,525 $45,144,949 $28,946,479 $23,995,938 $19,006,936 $13,761,453 1,468,247 1,462,684 1,723,703 1,131,578 1,035,599 1,306,752 2,373,213 1,045,567 917,609 844,483 550,305 431,240 374,480 238,441 2,020,061 1,844,168 1,766,266 1,044,338 827,927 720,719 478,537 1,712,827 996,975 854,481 665,102 727,417 812,112 333,651 $66,804,626 $59,187,961 $50,333,882 $32,337,802 $27,018,121 $22,220,999 $17,185,295 $53,168,806 $47,047,051 $43,021,159 $26,641,944 $21,155,513 $17,499,480 $14,568,386 5,661,358 6,444,981 5,275,152 2,259,784 1,485,556 1,389,721 1,206,755 $58,830,164 $53,492,032 $48,296,311 $28,901,728 $22,641,069 $18,889,201 $15,775,141 88.06% 90.38% 95.95% 89.37% 83.80% 85.01 % 91.79% $ (536,266) $ (1,376,754) $ (1,359,987) $ (1,345,957) $ 12,398 $ (75,000) $ (5,403) $ 7,438,196 $ 4,319,175 $ 677,584 $ 2,090,117 $ 4,389,450 $ 3,256,798 $ 1,404,751 4,069,000 2,412,000 394,000 688,000 2,739,000 1,625,000 589,000 $ 3,369,196 $ 1,907,175 $ 283,584 $ 1,402,117 $ 1,650,450 $ 1,631,798 $ 815,751 5.04% 3.22% .56% 4.34% 6.11% 7.34% 4.75% $ 1,308,770 $ 258,850 $ 1,022,365 $ 2,756,561 $ $ $ $ 4,677,966 $ 2,166,025 $ 1,305,949 $ 4,158,678 $ 1,650,450 $ 1,631,79 $ 815,751 $4.70 $2.62 $1.74 $5.54 $2.64 $2.61 $1.31 33,962 31,579 31,916 20,672 17,531 15,698 13,804 1,726,941 1,517,891 1,344,069 776,157 653,121 541,038 437,209 1,080,267 952,426 769,653 507,713 427,534 345,246 238,335 62.55% 62.75% 57.26% 65.41% 65.46% 63.81% 54.51% 207,416 182,997 162,345 94,045 80,089 71,987 59,532 118,544 104,927 87,251 57,565 48,093 40,480 27,259 57.15% 57.34% 53.74% 61 .21% 60.05% 56.23% 45.79% 98.39% 98.79% 98.29% 98.83% 98.98% 98.91% 97.90% These data reflect operations of Delta Air Lines, Inc., and do not include the C&S system prior to May 1, 1953. 19 DELTA TICKET OFFICES: Tl KET OFFICE RESERVATI NS TELEPHONE ALEXA DRIA Bentley Hotel. . .. ......... . ..... . . . . . . . ... .. ........ . .. .... . . 4471 ILLE Battery Park Hotel. . . ....... .... ................. . . . . .. ALPINE 2-7601 TA Fulton N ational Bank Bldg. , Piedm nt and Biltmore Hotels JACKSON 4-3242 AUG T Riehm ndHotel . ..... . . .. . . ... . . . . . . ..... . .... .... . . . .. . PARK 2-8811 BAL TIM RE Lord Baltim re H tel. . . . .. . . .. . .. . . . .. . . ...... . . . . SO UTHFIELD 6-2100 BATO RO GE apitol House H tel. . . .. . .. . . .. .. . ... .. ... . ...... ... ELGIN 5-4491 BEA MO T Jeffers n ounty Airport . . ... .. . ... . . ..... . ...... . .. RA DOLPH 2-3471 BlRMI HAM 2002 Fifth Ave., N ... . . . ............ . ... . ... .... . . ... . LYRIC 2-9601 BRU WI K M ale Im-McKinnon Airport ............ . .......... . . MELROSE 8-2531 ARA A , VE EZ. Edifici Paris, Plaza andclaria .. ........... . . ... .. . . . . . .. 55-8488 HARLE TON Francis Marion H tel ... . . .. .. . . . .... . . .. . . .. . . . . . SHERWOOD 4-2567 HARLOTTE Lobby, elwyn H tel. . . ...... . ..... . .......... . . ..... EXPRESS 9-0481 CHATTA OOGA Hotel Patten .... . . . . ... . ... .... . ............. ... . MADISON 2-8336 CHICAGO 67 East Monr e, onrad Hilton Hotel, 1649 rrington, Evanston, Illinois .. . . . . .............. .. .. . .. . FINAN IAL 6-5300 INCi A T! heraton-Gibson and N etherland-Hilton Hotels .. . .... .. l U NBAR 1-3232 r DAD TRUJILLO, DOM. REP. El C nde 79 . . . . ..... . ... .. ........ ... . . . ... . . . . 5350 LEARWATER t. Petersburg- learwater lnternati nal Airport .... . .. . . . ... . . .. 3-8318 COL MB IA H tel W ade Hampton . .......... . . . . . . .. ... . ....... . .. . ALPINE 4-3186 OLUMBUS, GA. R alston Hotel. .... . . .. ......... . .... . . .. ... . ..... FAIRFAX 7-7458 OLUMBUS, OHIO Deshler H ilton Hotel . .............. . ...... . . . . . BELMONT 7-2571 DALLA 212 . Akard St. (Baker Hotel) . . . ... ... .. . ...... . .... . . FLEETWOOD 7-6161 Jacksonville, Fla. DAYTO Biltmore H tel. ....... . . . .... . ... . ...... ... .. . ...... TWIN OAKS 8-3651 DETROIT 1205 Washington Blvd. and Lobby, eneral Motors Bldg ... . . . . . . . ... .. ... . ...... ... .. W ODWARD 5-3000 EVA VILLE Mc urdy Hotel ....... . ......... . . .. ... .. . . ... . . . . . HARRISON 5-9023 FORT LAUDERDALE 10 S. Federal H wy .. . . . . ... . .. . ...... .. ... ... . . . JA CKSON 4-5595 fORT WAY E Van Orman H tel. . . .. . . . ..... .. ... .. . . . . .... . . .. . . SHERWOOD 4191 FORT WORTH Hotel Texas . . ... . ........ . . . .. .... . . ... ... . . . . . . . .. EDrsoN 5-5425 GREE VILLE Municipal Airport . .... ..... .. . .. ... . . . . .. . . .... . ...... CEDAR 2-8213 HATTIESBURG Municipal Airport. ... . ..... . ...... ... ... . ... ..... .. . JUNIPER 2-1643 HAVA A, CUBA Prad 301 . . . .. . . . .. . .... . ............. . .. . .... . ... .. . .. . . 6-8224 HE DERSONVILLE Asheville-Hendersonville Airport .. . ... . .. .. ..... .. O XFORD 3-7211 HOT PRINGS Hot Springs Memorial Airport . .. . ... ... .... . .. ..... NATIONAL 3-1671 HO STO Rice and Shamrock-Hilton Hotels . .... . . . . . . . . . . . . . . . . . . APITOL 5-1361 1 DIA APOLIS Lobby, Claypool Hotel. . . . . . ... . ... . . . ... . . .... . ... MELROSE 7-1554 JACKSON Heidel berg H otel . . ........ . .................... . ... . FLEETWOOD 2-0861 JACK o VILLE Hotel R obert Meyer. .. ... .... . . . .. . . . . . .. .. ...... .. . ELG IN 3-3171 KA SAS CITY Muehlebach H otel ... . .. . . ..... ... . . . . . . .. .. . . . . .... . GRAND 1-7733 KNOXVILLE Farragut Hotel . ..... . .. . ......... .. .. .. ..... . ... ...... .. ... . . 7-6611 LEXINGTO Blue Grass Airport . . ... . . . .. .. ... .. .. . . . .. . . . .. . . . . . . ... . .... 4-5569 LITTLE ROCK apitol at Ferry St. (Coachman's Inn) .. .. . . .... . .. . . . FRANKLIN 5-9111 LOS A GELES 530 W est Sixth St . ... . . . .. .... . ... .. .. .... .. . . .. .. . MADISON 7-9669 LO I VILLE Shop 102, Starks Bldg . . . . . . .. . . .. .... .. . . . . .. . ... . . . .. J UNIPER 2-2681 Washington, D. C. MACO Hotel Dempsey ... . . . . . ..... .. ... . . .. . . . .... . . .... . . . . SH ERWOOD 3-6731 MARACAIBO, VE . Edificio T ropical, Ave. 5 de Julio a Santa Rita . .. . . .... ..... 70-283 MEMPHIS Peabody Hotel. . . .. .. ...... . ... ... ... . . . . .. .. ... . . . . WHITEHALL 8-2641 MERIDIAN Key Field . . . . . ..... .. . . . . . . . . .. . . .. . . . . .. . . . . ...... . . . ...... . . 2-3141 MIAMI 300 N . E. First St. (Columbus Hotel) . . . . .. . .. . .. .. . . . . . .. . FRANKLIN 3-0441 MIAMI BEACH 1632 Collins Ave. and 230 71st. St ... . .. ... . . . . . .... . FRANKLIN 3-0441 MONROE Frances Hotel . . .. . . . . .. . ..... ... . . .. . .... .. ... . ... .. . . . FAIRFAX 3-5116 MONTEGO BAY, JAMAICA Casa Montego Hotel. .. . . . ...... . .. .. . .. . . . . . . . ... . . 2811 MO TGOMERY Jefferson Davis Hotel. ... .. . . .. . .. . .......... .. . . .. AMHERST 4-7313 NEW ORLEANS St. Charles and R oosevelt Hotels . . . . . .. . ... . .. . . . . .. . . . TULANE 8592 NEW YORK R ockefeller 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., 37-38 Sts.... .. .. . ..... . . . ..... .. . PLAZJ\ 1-6600 W est Side Terminal, 42nd St. and 10th Ave ... .. . . .. . . .. . . . .. .. . . 200 Livingston St., Brooklyn ... .. . .. ... .. . .. . . ..... . . ... . . ... . 35 Mamaroneck Ave., White Plains ...... . . ... . . . ... . ........ . . 635 Madison Avenue, 15th Floor ... . . .. . . . . ... ... . ....... .. .. . EWARK 13 Commerce Street . . . .... . ... . . . ..... . .. . .. . .. . ... . .. MITCHELL 2-2228 ORLANDO San Juan Hotel .. . . . .. . ... . .. . . . . .. .. .... . .... . .... . . . . C HERRY 1-4531 PAD CAH Barkley Field ... ... .. . . . . .. . .... .... .. . . ... . ...... . . .. ... ...... 3-1732 PHILADELPHIA Bellevue-Stratford Hotel (Broad St. Entrance) . . . . . ... SARATOGA 7-9900 PORT ARTHUR Jefferson aunty Airport . ... . ... . ... . .. . . . ... . ... RA NDOLPH 2-3471 PORT-AU-PRINCE, HAITI c/ o N adal & Co .. . . .......... . ... . ..... . . .. . .. . .... . . 3313 SAN JUAN, PUERTO R ICO Hotel La Concha . .. . . . ... . .. . . . .. . . . . .. . . . . ...... . 9-0045 SAVANNAH Manger Hotel. .. . ..... . ... . . . . .. . . . .. . . . ..... . . ....... ADAMS 3-0267 SELMA Selfield Airport. . . . . ... . . . .. . . . ... . ... . ... . .. . . . . .. ... . . . TRINITY 4-7581 SHREVEPOR T aptain Shreve Hotel . . . ... .. ... .. ........... . . .... . . .. ...... 5-3232 SPARTANBURG Memorial Airport . .. ... . . . .. .. .. . . . . . .... . .... . .. . .... . . .. . . . 7131 SPRINGFIELD Municipal Airport ... . . . . . .. . ........ . . ..... . . . . .. UNIVERSITY 4-7353 ST. LOUIS Lobby, Statler Hotel. . . ... . . .. . . .... . . . . . . .. . .. . . .. . ..... . MA1 1-7.580 ST. PETERSBURG St. Petersburg- learwater International Airport ..... . ORANGE 1-7141 TAMPA 500 Florida Ave. (Hillsboro Hotel) ...... .. .. .. . . . .... . ..... . ....... 2-29 11 TOLEDO ommodore Perry Arcade . . . .. . . ... . . .. . . .... . .. . . .. U NIVERSITY 5-2366 TUL SA Alvin Hotel, 627 So. Main. . . . . ..... . .. .. . . . .. .. . . . .. . . . .. C HERRY 2-0202 WASHINGTON 1605 K. St., N .W . and W ashington Hotel ... . .... . . ... DI TRICT 7-9600 TODD G. OLE Atlanta, Georgia R. W. COURT Atlanta, Georgia . H. DOLSON Atlanta, Georgia EDWARD H. GERRY New York, New York TODD G. OLE Executive Vice President - Administration and Assistant ecretary DIRECTORS 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 LAlGH C. PARKER Atlanta, Georgia OFFICERS C. E. WOOLMAN President and General Manager . H. DOLSON Executive Vice President- Operations CARLETON PUTNAM Washington, 0. C. R. J. REYNOLDS Sapelo Island, Georgia J. WOODALL RODGERS Dallas, Texas C. E. WOOLMAN Atlanta, Georgia LAIGH C. PARKER Senior Vice President and Assistant to the President W. T. BEEBE ERLE CO KE, JR. Vice President - Personnel Vice President - Civic Affairs ROBERT L. GRIFFITH Vice President R. S. MAURER Vice President - Legal T. M. MILLER Vice President - Traffic and Sales Administration C. H. McHENRY Secretary-Treasurer ROBERT OPPENLANDER Comptroller HARLES P. KNECHT Assistant Vice President - Sales PAUL W. PATE Assistant Vice President - Properties R. H. WHARTON Assistant Vice President - Personnel C. BOYCE W ILDER Assistant Vice President Operations - Technical CA THERINE FITZGERALD Assistant Treasurer J. R. HOWELL Assistant Treasurer HUGH H. SAXON Assistant Treasurer TRANSFER AGENTS The Citizens and Southern National Bank, Atlanta, Georgia The First National City Bank of New York, New York, New York REGISTRARS Trust Company of Georgia, Atlanta, Georgia Morgan Guaranty Trust Company of New York, New York, New York COMMON STOCK Listed on the New York Stock Exchange AUDITORS Arthur Andersen & Co. ~ OPEN HERE FOR DELTA SYSTEM ROUTE MAP ANNUAL MEETING October 20, 1959, Monroe, Louisiana 21 HOT THE DELTA ROUTES onnecting the indu tri, land di tribut111g area f the reat Lake , the M1d-W c t and the New Y rk-Wa hi11i,.,t n regi n with the outhcrn tier of state fr m e 'a to Florida and the aribbcan, elta now serves more than 60 cities in 20 tatc and seven countrie . The Delta route y tem now include the seven new cities added in recent CAB awards - olumbu , I ayton, Louisville, Orlando, Tampa, t. Peter - burg and West Palm Beach. The map also hows the new service from Kansas ity, pringfield, Little Rock, Memphi , Detroit and Indianapoli to the Southeast. From a trans-southern route in 1929, Delta has grown to a compact system ex- tending over 11,000 route miles, bring- ing the finest in air transportation to over three million passengers annually and con- stituting a vital component of the natioh' s commerce. - DELTA AIR LINES ROUTES - - INTERLI E THROUGH PLA E SERVICES A DELTA Al R LINES G ENERA L OFFICES ATLANTA AIRPORT ATLANTA . GEORGIA