Delta Air Lines annual report 1961

DELTA AIR
1981
COMPARATIVE SUMMARY 0 F OPERATIONS
DELTA AIR LINES, INC.
Dollars expressed in thousands except per share figures Years ended June 30
1961 1960 1959
Operating Revenues .. . ............... . $146,132 $120,191 $103,805
Operating Expenses (excluding depreciation) .. $119,226 $101,708 $ 85,550
Operating Income (excluding depreciation) .. . $ 26,906 $ ~8,483 $ 18,255
Depreciation expense ................ . $ 15,205 $ 11,752 $ 8,870
Operating Income after depreciation .... . $ 11,701 $ 6,731 $ 9,385
Net Income from Operations, after Taxes
and other charges ............... . $ 4,126 $ 2,683 $ 4,062
Total Earnings ...................... . $ 4,652 $ 2,839 $ 4,062
Shares Outstanding . .. . . 1,122,235 1,122,233 1,122,221
Earnings Per Share ................... . $4.15 $2.53 $3.62
Total Stockholder Equity ............... . $ 41,056 $ 38,902 $ 37,410
Stockholder Equity per Share ............ . $36.58 $34.67 $33.34
Revenue Passengers Carried ............ . 3,569,778 3,241,511 2,988,241
Available Seat Miles (000) ...... ........ . 3,389,547 3,027,450 2,622,740
Revenue Passenger Miles (000) . .......... . 2,034,047 1,757,208 1,554,630
Passenger Load Factor ................. . 60.01% 58.04% 59.28%
LINES, I N C.
C O N'T E NT S
Report from the President Page
and General Manager. . . . 2-9
Revenues ............. .
Expenses ............. .
Earnings .............. .
Dividends ............. .
2
4
4
4
Jet Services . . . . . . . . . . . . 4
Aircoach Services. . . . . . . . 4
West Coast Route Extension 5
International Services . . . . . 7
Regulatory Matters . . . . . . . 7
Personnel. . . . . . . . . . . . . . 7
Flight Equipment. . . . . . . . . 7
Ground Facilities. . . . . . . . . 8
Capitalization and Financing 9
Conclusion . . . . . . . . . . . . . 9
System Route Map ....... 10-11
Financial Statements ...... 12-16
Balance Sheets .......... 12-13
Statements of Income . . . . . 14
Statements of Capital Surplus
and Retained Earnings. . . . 15
Auditor's Opinion. . . . . . . . 15
Notes to Financial Statements 16
Ten Year Summary ....... 18-19
Ticket Offices . . . . . . . . . . . 20
Directors and Officers . . . . . 21
2
The fiscal year which ended on June 30, 1961, was
one of significant expansion for Delta Air Lines.
It encompassed the first full fiscal period of your
Company's pure-jet operations and the launching
of service to California. Delta Air Lines was first in
the world to place the Douglas DC-8 in scheduled
operation on September 18, 1959 and followed this
with the introduction of the Convair 880 to com-
mercial aviation on May 15, 1960.
Passenger acceptance and efficiency of jet air-
craft were confirmed and the scope of jet service
was significantly expanded as six new aircraft were
delivered during the year.
ANNUAL REPORT TO THE STOCKHOLDERS
Passengers board one
of Delta's Convair 880 Jets,
holder of a transcontinental
ocean-to-ocean record
of 3 hrs., 31 min., 54 sec.
Continuing jet leadership and high service stand-
ards improved your Company's position in its major
markets. Revenues and traffic volumes, increased
by a brief interruption of competitive services,
reached record levels. Net earnings from opera-
tions were $4,126,000 with disposition of flight
equipment boosting total earnings to $4,652,000,
equal to $4.15 per share of outstanding common
stock.
The Civil Aeronautics Board's award in the
Southern Transcontinental Service Case, an-
nounced on March 14, 1961, extended your Com-
pany's routes westward from Dallas and Fort
Worth to California. This decision authorized
service to San Diego, Los Angeles, San Francisco
and Las Vegas and designated the Florida cities
of Jacksonville and Orlando as co-terminals on the
new transcontinental route. The extensions in-
creased unduplicated route mileage from 11,338
miles to 14,122 miles.
Access to these _
long-haul traffic markets should
materially strengthen your Company. In its deci-
sion, the CAB wisely avoided severely destructive
competitive certifications, although major awards
were also made to other carriers. Operations over
this new southern transcontinental route began on
June 11, 1961, the effective date of the award, and
reception of the initial services has been gratifying.
REVENUES
Operating revenues were a record $146,132,000, up
$25,941,000 (22%) over the preceding year. The
more than 3 million passengers carried generated
2.03 billion revenue passenger miles, an increase
of 16%. The higher passenger fares placed into
effect on July 1, 1960, and minor adjustments sub-
sequently made, resulted in an average return per
passenger mile 6% greater than for the previous
year. Passenger revenues accordingly rose 23%, to
$134,946,000, and represented 92% of total operat-
ing revenues.
Revenues from cargo (mail, freight and express)
were $8,057,000, a 4% increase over the $7,752,000
for the previous year. Combined express and air
freight revenues were relatively unchanged. Th~
largest individual gain occurred in the movement
of U.S. mail - ton miles up 34% and revenues up
20%. U.S. mail carried by air includes both regu-
lar air mail and an increasing volume of first class
mail being routed by air on a non-priority, space
available basis by the Post Office Department to
expedite delivery. The airlines are paid for the
movement of this non-priority mail at rates which
are approximately 50% of the rates for air mail. The
volumes of air mail and ffrst class mail, and the
average yields for each, for the last three years are
shown by the following tabulation:
Air Mail First Class Mail
Ton Ton Mile Ton Ton Mile
Fiscal year ended Miles Yield Miles Yield
June 30, 1959 ... .. 5,006,000 41.43 390,000 19.99
June 30, 1960 . . ... 4,752,000 42.85 523,000 19.92
June 30, 1961 ..... 5,628,000 40.92 1,432,000 19.27
1 Passenger and Excess
Baggage $136,742,888 93.58
2 Mail $2,578,792. . . . . 1.76
3 Freight and Express
$5,478,408 ......... 3.75
4 Other $1,332,245 . . . . .91
1961 REVENUE DOLLAR SOURCES
Twelve months ended June 30, 1961
Total Dollar Revenue $146,132,333
1 Employee salaries and related costs* $56,239,570 ... 38.49
2 Depreciation and Obsolescence of Property
and Equipment $15,205,584 .. . 10.41
3 Gasoline and Oil $17,338,196 ... 11.86
4 Materials and outside repairs for
Maintenance of Equipment $11,812,118 ... 8.08
5 Food and supplies for Passengers $4,573,460 ... 3.13
6 Advertising $3,726,058 ... 2.55
7 Other operating costs $22,580,015 . .. 15.45
8 Capital Costs (Interest and Dividends) $4,198,568 ... 2.87
9 Taxes $7,153,609 . .. 4.90
10 Retained for use in business $3,305,155 ... 2.26
*Salaries, travel, employee welfare and payroll taxes
DISTRIBUTION
3
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
4
WI
-
-
-
- ~
-- -
a
- - -
~
-- - -
'52 '53 '54 '55 '56 '57 '58 '59 '60 '61
EXPENSES
Total operating expenses of $134,431,000 repre-
sented an 18% increase over 1960 fiscal year ex-
penses, for the operation of 12% more seat miles
and the carriage of 14% more ton miles of revenue
traffic. Cash expenses (excluding depreciation and
amortization charges) rose 17%, depreciation ex-
penses increased $2,496,000 (22%) reflecting the
addition of six Convair jet aircraft to the fleet dur-
ing the year, and amortization of preoperating costs
rose from $553,000 to $1,511,000. During the year
charges against operations through amortization
of preoperating costs exceeded by $747,000 the
amount of such costs that were deferred, and the
balance of $1,294,000 remaining to be amortized at
June 30, 1961 will be substantially eliminated dur-
ing the ensuing twelve months. Payments to or
for the benefit of employees increased 12%, to
$56,240,000 (from $50,402,000) and represented 38%
of total cash expenses.
Advances in price levels could not be fully offset
by operating economies, and the volume of service
could not economically be increased in direct pro-
portion to the higher depreciation and amortiza-
tion charges. Un it costs therefore increased slightly
- the cost per available seat mile rose 6% to 3.95
and the cost of producing an available ton mile
rose 4%to30.40.These increases in capacity costs
were almost exactly equalled by the improvement
in revenue yields, and the passenger load factor re-
quired to achieve breakeven operations remained
relatively unchanged at approximately 55%.
EARNINGS
The factors previously noted which contributed to
the traffic and revenue increases were also largely
responsible for the improvement in the percentage
of available seat miles sold, which rose to 60.0% in
the 1961 fiscal year from 58.0% in the 1960 year.
Each one percentage point of passenger load fac-
tor represented $2 million of passenger revenues
during the year, and operating income for the 1961
fiscal year of $11,701,000 was up sharply from the
$6,731,000 in the preceding year. Interest expense
rose from $1,491,000 to $2,852,000 in keeping with
the increase in outstanding borrowings. Taxes on
income were$4,842,000as compared with$2,735,000
for the preceding year, and net income from opera-
tions (after all charges and taxes) was $4,126,000.
Net profits of $526,000 after taxes from sales of
piston-engined aircraft no longer required in our
operations brought total earnings to $4,652,000,
equivalent to $4.15 per share of common stock. To-
tal earnings for the 1960 fiscal year were $2,839,000
($2.53 per share), including $156,000 in equipment
sale profits.
Although the net income from operations of
$4,126,000 for the 1961 fiscal year is the highest in
your Company's history, it represents only 2.82%
of sales - a profit margin that was bettered in three
of the preceding five years. It represents a 7,4%
return on investment, determined in accordance
with the standards established by the Civil Aero-
nautics Board in the General Passenger Fare In-
vestigation Case, and in that decision (issued in
November, 1960) the CAB found that the fair over-
all rate of return for the domestic trunkline industry
would be approximately 10.5% based upon a some-
what lower return for the four largest carriers and
a slightly higher return for Delta and the remaining
carriers. Total earnings, including equipment sale
profits, represent a 7 .9% return on investment, still
well below the level found reasonable.
DIVIDENDS
Four cash dividends of 30 each were declared by
your Directors during the year and paid on the first
of September and December, 1960 and March and
June, 1961. Cash dividends have been paid for
thirteen consecutive years and in nineteen of the
last twenty years. This outstanding dividend record
was continued by the declaration of the 53rd cash
dividend, of 30 a share, on July 27, 1961, payable
on September 1, 1961 to stockholders of record
August 11 , 1961 .
JET SERVICES
A full year's operation of the nine jet aircraft in
service at the beginning of the year and receipt of
six additional jets during the period permitted a
significant increase in the scope and volume of jet
service. Your Company provided the first jet serv-
ice to several cities and in many of its major mar-
kets. Sixteen cities were receiving jet service at
year-end. Jet seat miles increased from 481 million
(16% of the total) to 1,271 million (37% of the total)
during the 1961 fiscal year and represented 43% of
total seat miles being produced at the end of the
year. Seat miles operated with piston-engined
equipment were 428 million below the preceding
year, in order to reasonably relate volume of serv-
ice to available traffic. System seat miles were up
362 million (12%).
The quarter-by-quarter growth of jet service
since its introduction in September, 1959 is shown
below:
Jet Seat Miles Jet Seat Miles as
(000) Percent of Total
1961 1960 1961 1960
Fiscal Fiscal Fiscal Fiscal
Quarter Ended Year Year Year Year
September 30th . ..... , 239,394 4,661 30.2% .7%
December 31st ... . ... 293,072 109,158 36.0% 14.5%
March 31st .. . ... . ... 368,876 168,341 41.2% 21.5%
June 30th ........ . .. 369,743 198,708 41.6% 25.2%
- -
Fiscal Year Totals ..... 1,271,085 480,868 37.5% 15.9%
The 68.56% passenger load factor on jet flights was
well above the 60.01 % system load factor, evidenc-
ing the public preference for jet service.
AIRCOACH SERVICES
Delta Air Lines serves 58 cities on its domestic
route system and provides reduced-fare aircoach
Meal service varies with the
flight and type of equipment,
ranging from Royal Service
champagne luncheons and
dinners to snacks and
attractive box lunches.
service to 34 of those cities. Some 42% of total seat
miles produced were in aircoach service, and air-
coach passenger miles represented 44% of total
passenger miles (approximately the same percent-
ages as in the previous year).
Recent months have seen a definite shift in airline
passenger traffic from first class to coach service,
and in early 1961 for the first time industry coach
passenger miles exceeded first class passenger
miles. This shift has been largely brought about by
the increase in jet coach seats being offered and
by a fare structure that creates significant dollar
savings on long trips that are perhaps dispropor-
tionate to the service differentials. This industry
trend has not been as pronounced in your Com-
pany's operations, partly because of its route
structure and partly because of the attractiveness
of the luxury service provided by Delta's Convair
880 jet aircraft that are operated in all-first-class
configuration. Further developments in this area
will be closely followed and appropriate steps taken
if subsequent events confirm the permanence of
this recently-manifested popularity of coach travel.
ROUTE EXTENSION TO THE WEST COAST
Operations to California were begun on June 11,
1961, the effective date of the certification. The
initial schedule pattern provided (among others)
three southern transcontinental jet round trips,
including a DC-8 non-stop round trip between
Atlanta and Los Angeles. These substantial initial
services utilized equipment that had been as-
signed to transcontinental interchange operations
(which were discontinued concurrently with ac-
tivation of the new routes on June 11th) or that
became available through the usual summer cur-
tailment of service to Florida.
The twenty days of operation over the West
Coast routes in June, 1961 did not make a material
contribution to revenues and earnings for the 1961
fiscal year, but overall experience with the new
services has been satisfactory and encouraging.
Our identification for three decades with southern
transcontinental traffic, first by interline connec-
tions and then by through-plane equipment inter-
change operations, reduced the lengthy and costly
developmental period that is usually associated
with activation of new routes. A more complete
schedule pattern will be possible when the three
new Convair 880's are added to the fleet during
September and October, 1961, including initial
service to San Francisco and non-stop jet service
between New Orleans and Los Angeles. The Civil
Aeronautics Board estimated that full implementa-
tion of these West Coast route extensions should
add approximately $30 million to Delta's annual
revenues. This estimate presently does not appear
unreasonable.
5
SOURCES AND
DISPOSITION
OF FUNDS
as of June 30
Over 20 years .
' ' IO O
199 130
15- 20 years ... ' ' '
.. '
880 446
10-:-15 years ' . '
. . . ' ' .
968 1,224
5-10 years 1,656 1,432
1- 5 years 3,132 2,799
Less than one year .... . 1,455 1,536
I I I O O I I I o
8,290 7,567
1961 1960
(All amounts in thousands)
FUNDS PROVIDED BY:
Net earnings, excluding equipment sales .... . ..... . ..
Equipment retirement proceeds, less taxes .. . ........
Deferred income taxes, net, payable in later years .... , .
Depreciation and amortization accruals ......... . ....
Sale of common stock . . . . . .. . ... . ............ ..
Borrowings under credit agreements . . ... . .... . .....
Miscellaneous, principally expenses not
requiring cash expenditures ..... . ............. . .
FUNDS USED FOR:
Flight equipment additions, including advances ........
Preoperating expenditures . ........ . ........ . .. . .
Ground facility and equipment additions .... . .. . ..... .
Reduction of long-term debt ...... . .. .......... . ..
Cash dividends ..... . ..................... . ...
All other purposes . .......... . ...... . ...... . ...
Net Change in Working Capital ................... . .
Working Capital at beginning of period ..... .. ... . ....
Working Capital at end of period ... . ..... . . . .. . . . . ..
It takes a skilled team to dispatch
one of Delta's Big Jets from
the all-weather "Jetway" ramps,
now in service in Atlanta,
Miami, New York and coming
soon to other cities.
94
367
1,282
1,237
2,465
1,278
6,723
1959
Total for
5 Years
$ 14,342
3,532
11,682
55,424
4,329
48,600
861
$138,770
$109,431
3,357
10,457
7,500
5,721
~
$138,198
+ $ 572
~
$ 4,058
Fiscal Years Ended June 30
1961 1960 1959 1958 1957
$ 4,126 $ 2,683 $ 4,062 $ 932 $ 2,539
699 2,582 158 93
2,545 2.780 2,120 2,817 1,420
15,922 12,753 9,637 9,873 7,239
4,329
5,000 20,000 5,000 12,600 6,000
515 81 178 16 71
$28,807 $40,879 $20,997 $26,396 $21,691
$20,941 $34,306 $13,960 $23,856 $16,368
763 2,244 350
4,477 2,173 1,269 1,298 1,240
5,357 2,143
1,346 1,346 673 1,010 1,346
606 189 234 161 542
$33,490 $42,401 $16,486 $26,325 $19,496
-$ 4,683 -$ 1,522 +$ 4,511 +$ 71 + $ 2,195
~ 10,263 5.752 ~ 3,486
$ 4,058 $ 8,741 $10,263 $ 5,752 $ 5,681
INTERNATIONAL SERVICES
Political and economic conditions in the Caribbean
and Venezuela continue to inhibit travel in those
areas. Your Company's international operations
were further reduced, from 114 million to 66 million
seat miles, and represented 2% of total system
operations in the 1961 fiscal year. The new access
to the West Coast should have a salutary effect on
traffic over those routes, but it is difficult to foresee
a return to profitability for this operation until a
greater measure of political and economic stability
is restored.
REGULATORY MATTERS
The decision of the Civil Aeronautics Board in the
Southern Transcontinental Service Case extended
Delta's east-west Route 24 westward from Dallas
and Fort Worth (1) to San Diego and Los Angeles,
and (2) to Las Vegas and San Francisco. Route 24
was also extended from Atlanta to the cities of
Jacksonville and Orlando, Florida, previously
served by Delta on Route 54 only, permitting non-
stop flights between these Florida points and cities
to the West on Route 24 (excluding New Orleans).
Certain restrictions were placed on Delta's service
in connection with this new operating authority,
the more significant being (1) a temporary restric-
tion against carrying local passengers between
Las Vegas and San Francisco, pending conclu-
sion of a separate proceeding involving air service
in that area, and (2) the prohibition againstthrough-
plane service between Miami /Tampa and cities
west of Fort Worth.
During the year Delta's application in the Sara-
sota/ Bradenton Investigation Case was denied
and the authority sought was granted to another
carrier.
In the Toronto-Buffalo Case, which will deter-
mine the selection of a United States flag carrier to
provide service between Toronto and Florida via
various intermediate points, the Examiner's Initial
Decision has been issued recommending against
the authority sought by Delta; the case has not
been finally decided.
The Domestic Cargo Mail Service Case is awaiting
final decision of the Civil Aeronatutics Board.
The New York-Florida Renewal Case was begun
by the Civil Aeronautics Board on June 12, 1961 to
determine (1) whether the temporary authority of
Northeast Airlines to serve Miami, Florida and in-
termediate points south of New York should be
renewed, (2) if said renewal is required by public
convenience and necessity, whether the routes of
Northeast and another carrier should be integrated
by merger or other lawful manner, and (3) whether
any applications of other air carriers (including
those of Delta Air Lines) for additional operating
authority between Boston and Miami should be
granted.
On August 9, 1961 the Civil Aeronautics Board
instituted a general investigation (identified as the
South American Route Investigation) of the air
service pattern between the United States and
South America, tentatively concluding that there
should be only one U. S. airline from the United
States to the east coast and one airline to the west
coast of the South American continent. In this
connection, the Civil Aeronautics Board will also
investigate the possible elimination of Venezuelan
points from the Company's certificate, a sugges-
tion which will be vigorously opposed.
The Mail Rate Off-Set Issue was concluded by
denial of the Company's petition to the Supreme
Court of the United States for certiorari, and the
order of the Civil Aeronautics Board in the case
became final. The effect of that order is summa-
rized in Note (2) to the Financial Statements.
PERSONNEL
Inauguration of service with two new types of jet
aircraft - the world's first, in each instance -
within the short span of eight months placed un-
precedented responsibilities upon the employees
of Delta Air Lines. The successful accomplish-
ment of the difficult transition into jet operations
was made possible by the satisfactory discharge of
those responsibilities and is a tribute to the out-
standing dedication and loyalty of your Company's
personnel.
General wage and salary scales were adjusted
upward during the year, in keeping with the pre-
vailing pattern. The several employee benefit pro-
grams were continued throughout the year, in-
cluding (a) a liberal "space available" free trans-
portation policy, (b) an employee credit union, (c)
an adequate retirement income plan, and (d) com-
prehensive group life and hospitalization insurance
for employees and dependents.
There were 8,290 employees of Delta Air Lines at
year-end, 723 more than at the beginning of the
year. This rise in employment, at a time when em-
ployment nationwide was declining slightly, re-
flects additions to the aircraft fleet, expanded
service, and activation of new cities on the West
Coast route extensions. Employees with more than
five years of service at June 30, 1961 numbered
3,703, a gain of 471 during the year, providing a
firm foundation of skills and experience for future
growth.
FLIGHT EQUIPMENT
Delivery of six Convair 880 aircraft during the year
completed the initial orders for jet aircraft and
brought your Company's jet fleet to 15 aircraft -
six Douglas DC-S's and nine Convair 880's. Four
leased DC-6's were purchased at the lease expira-
tion date, and two Convair 340/440's became sur-
plus to our. needs and were sold. On October 29,
1960, Delta completed its last scheduled DC-3
flight and thus ended a chapter in its history that
began almost twenty years earlier, in December,
1940, with the first DC-3 flight.
7
8
Your Company's operating fleet at June 30, 1961
consisted of 77 airplanes, as follows:
Seating
Manufacturer Model Number Configuration
Douglas . ... . ...... DC-8 Jet 6- 122
Convair . . . .. . .. . ... 880 Jet 9 86
Douglas . ... . ...... DC-7 /7B 20 75
Douglas ....... . ... DC-6 11 60/76
Convair . ... . . . .. . . 340/440 '26.., 44
. Curtiss .. . ... ... ... C-46 5 Cargo
The three Convair BBO's ordered in mid-1960 are
scheduled for delivery in September and October,
1961 ~ Shortly after the close of the fiscal year
orders were placed for three turbo-fan DC-B's (the
most powerful model built by Douglas) and four
Convair BBO's, to enable your Company to provide
a full measure of jet service over its system. The
DC-B's are to be delivered in the April-July, 1962
period (Delta has the right to defer delivery of one
DC-Bto January, 1963), and thefourBB0's are to be
delivered in the Summer of 1962. The turbo-fan
engine was developed by Pratt & Whitney as a
more efficient model of the basic jet engine that
now powers Delta's DC-B's. These follow-on air-
craft can be added to the existing jet fleets with a
minimum of integration problems and should im-
prove overall jet utilization. Present planning indi-
cates that receipt of these additional aircraft will
result in the operation of some 60% to 65% of total
seat miles with the finest and most modern jet
aircraft flying anywhere in the world.
GROUND FACILITIES
New airport terminal facilities constructed to your
Company's specifications were occupied at At-
lanta, Miami, and New York International Airport
at ldlewild. At all of these points Delta-designed
"Jetways" installed in passenger concourses pro-
vide complete protection from the weather for
boarding or deplaning jet passengers. Occupancy
of the new eight-acre maintenance facility at At-
lanta was completed during the year, and over-
hauls of all engines and major components are
now performed by the Company.
The American Telephone and Telegraph Com-
pany substantially completed construction and in-
stallation of the world's most advanced teletype-
writer network, utilizing Wide Area Data System
concepts, for Delta's exclusive use. Expected to be
in full operation by late 1961, this system replaces
the B1-D1 equipment installed in 1953 and provides
for more efficient and economical processing of
the increasing volume of messages. Arrangements
have also been concluded with International Busi-
ness Machines Corporation for a "SABRE" elec-
tronics reservation system that is programmed for
activation in mid-1963.
Headquarters of
Delta Air Lines
at Atlanta, Ga.
Above: New 8-acre
maintenance facility
Below: Admin-
istrative offices
CAPITALIZATION AND FINANCING
Th.e remaining $5,000,000 available under the
1958 Credit Agreements with banks and insurance
companies was taken down during the year and
applied to the $20,941,000 paid for procurement of
flight equipment. The entire $60,000,000 provided
by those Agreements has thus been borrowed, and
at June 30, 1961 repayments of $2,500,000 had been
made and $5,000,000 had been transferred to "Cur-
rent Liabilities" representing repayments to be
made in the following twelve months. Further de-
tails of these Credit Agreements are set forth in
Note (1) to the Financial Statements.
Stockholder equity of $41,055,770 at June 30, 1961
is equivalent to $36.58 for each share of outstand-
ing stock, a record high and up from $34.67 a share
at the end of the preceding year. Internally gener-
ated funds are expected to prove adequate for
payments due on the aircraft to be purchased in
the last half of 1961. Additional financing will be
required in connection with orders placed for later
delivery, but firm arrangements for that financing
have .not yet been concluded.
CONCLUSION
The airlines of this country have now substantially
completed the initial phase of their jet reequipment
program, relatively one of the largest undertakings
ever assumed by American industry. The rapidity
with which the traveling and shipping public recog-
nized and endorsed the benefits of jet travel was
unique in transportation annals, and in response
the airlines have placed orders for additional jet
aircraft (including new models, in some instances)
with deliveries extending into 1964 and 1965.
Your Company's equipment leadership has con-
tributed importantly to maintaining its revenue
growth and earnings above industry levels. The
margin of equipment leadership may diminish
somewhat as outstanding equipment orders of
other airlines are filled, but the loyal, able and
courteous employees of Delta Air Lines can be
counted upon to sustain our position in today's
era of intense competition. We therefore eagerly
accept the challenges and opportunities presented
by the recent route extensions to California as we
direct our efforts toward continuing a full measure
of the finest air service over our entire system.
President and General Manager
September 15, 1961
9
SAN FRANCISCO
Jet service to the big
Bay City market, with
its 2,800,000 metropoli-
tan population, com-
mencing in October
will link the Southeast
directly to Northern
California.
LAS VEGAS
Delta now serves the
entertainment capital of
the world - an attrac-
tion for 11 million visi-
tors annually - with
the only non-stop serv-
ice to Dallas and direct
connections to all the
Southeast.
LOS ANGELES
The vast sea of lights
which greets the Delta
passenger arriving at
night is an indication
of the nearly 7,000,000
people who make up
this amazing metropol-
itan area.
SAN DIEGO
The erstwhile quiet
little town around the
naval base has become
a bustling industrial
complex of more than
a million persons, with
close ties to missile
activity and national de-
fense establishments
in the Southeast.
ASSETS
12
CURRENT ASSETS:
Cash .. .. .. . . . . . ...... ..... . .......... .. . ..... ... .... ... . .
U. S. Government securities, at cost ................. . ......... .. .
Accounts receivable -
Traffic (net) ... ... .......... . ........... . ... ..... : ..... .
Other ................................................ .
Maintenance and operating supplies, at average cost. .... . ... ...... . . . .
Prepaid expenses .......... ......... .. ...................... .
Other current assets .. .......................... ..... .. ...... .
Total current assets .... .. .. . ... .... .. .......... , ... .
OTHER ASSETS (Net assets of dusting
division and other investments) ................................. .
PROPERTY AND EQUIPMENT:
Cost-
1961 ... . ........... . .......... .
1960 ..................... . .... .
Reserves for depreciation -
1961 ........ .. ................ .
1960 ..... . ... . .. . ..... . . . . . ... .
Fli ght
Equipment
$150,854,935
130,099,752
63,932,487
51,325,271
Other
Property and
Equipment
$ 17,691 ,053
13,350,482
7,527,069
6,533,839
Advance payments for new flight equipment . . .. ..... .. . . ........... .
DEFERRED CHARGES, ETC.:
Preoperating costs, being amortized .............................. .
Advances for leased facilities, being amortized .... ....... . ... .. .... . .
Other deferred charges .......... . . .... ... .... .. .............. .
1961
$ 13,076,946
3,485,706
8,577,320
1,814,444
1,734,807
1,157,353
295,187
$ 30,141,763
$ 408,201
$168,545,988
71,459,556
$ 97,086,432
5,778,033
$102,864,465
$ 1,293,825
135,015
94,525
$ 1,523,365
$134,937,794

1960
$ 8,601,649
6,794,680
6,511,886
2,164,890
1,442,696
1,066,251
141,441
$ 26,723,493
$ 422,047
$143,450,234
57,859,110
$ 85,591,124
6,942,100
$ 92,533,224
$ 2,040,720
134,340
35,683
$ 2,210,743
$121,889,507
~
\
l
June 30, 1961 and 1960
CURRENT LIABILITIES:
Notes payable to banks maturing within one year .................... . .
Accounts payable and accrued liabilities .......................... .
Accrued vacation pay . ............... .. .......... , .. , ........ .
Tickets outstanding subject to refund or use ............... , ........ .
Air travel plan deposits ....................................... .
Accrued Federal and state taxes on income ........................ .
Total current liabilities .......... .. . .. .... . . . .... . ... .
NONCURRENT LIABILITIES:
Long-term notes payable (Note 1) ........................ . ....... .
Other (Note 2) ..... , , ................ . .................. . ... .
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 1,122,235 shares at June 30, 1961,
and 1,122,233 shares at June 30, 1960 .... . ....... .. ............. .
Capital surplus .............................. , ...... .... , . . . ,
Retained earnings (of which $16,483,682 is not presently available
for cash dividends under terms of credit agreements) ................ .
PURCHASE COMMITMENTS (Note 3)
The accompanying notes are an integral part of these statements.
1961
$ 5,000,000
13,191,525
1,818,263
1,925,569
1,284,350
2,864,461
$ 26,084,168
$ 52,500,000
1,171,863
$ 53,671,863
$14,116,000
9,993
$ 14,125,993
$ 3,366,705
15,962,536
21,726,529
$ 41,055,770
$134,937,794
1960
$ 2,143,000
9,900,825
1,995,000
1,808,129
1,211,250
924,786
$ 17,982,990
$ 52,857,000
$ 52,857,000
$ 11 ,571 ,000
500,000
76,108
$ 12,147,108
$ 3,366,699
15,962,472
19,573,238
$ 38,902,409
$121,889,507
LIAB I Lill ES
and Stockholder Equity
13
14
OPERATING REVENUES: _
Passenger .............................................. .
U.S. Mail .............................................. .
Freight ................................................ .
Express ................................................ .
Excess baggage .......................................... .
Other operating revenue- net. ............................... .
Total operating revenues ........................... .
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 agreements ............... .
Ground property and equipment ................... , ......... .
Amortization of jet preoperating costs ......................... .
Depreciation and amortization ........................ .
Total operating expenses ........................... .
Income from operations before income taxes .......... ... .
OTHER EXPENSE (INCOME):
Interest expense (less capitalized interest on advances for
flight equipment-$192,000 in 1961 and$771,000 in 1960) .............
Other - net ..............................................
Total other expense ................................
Income before income taxes .. , , .................. .. ..
PROVISION FORT AXES ON INCOME:
Current Federal and state income taxes ..........................
Deferred Federal income taxes ........ '
.......... '. '
..... '
....
Net income ......................................
SPECIAL ITEM - Profit on disposition of flight equipment, less
applicable income taxes of $205,000 in 1961 and $59,400 in 1960
Net income and special item ......................... .
The accompanying notes are an integral part of these statements.
1961 1960
$134,946,466 $109,671,406
2,578,792 2,140,292
4,070,462 4,250,345
1,407,946 1,361,837
1,796,422 1,577,791
1,332,245 1,189,554
$146,132,333 $120,191,225
$ 37,261 ,096 $ 32,151,166
30,597,186 24,455,871
21,721,061 18,824,184
14,958,966 13,573,386
10,779,439 9,364,591
3,907,782 3,339,317
$119,225,530 $101,708,515
$ 13,282,843 $ 11,187,210
(716,898) (1,000,568)
1,129,076 1,012,384
1,510,563 553,048
$ 15,205,584 $ 11,752,074
$134,431,114 $113,460,589
$11,701,219 ,.. $ 6,730,636
$ 2,851,887 $ 1,490,683
(118,180) (177,982)
$ 2,733,707 $ 1,312,701
$ 8,967,512 $ 5,417,935
$ 2,038,000 $ 520,000
2,804,000 2,215,000
$ 4,842,000 $ 2,735,000
$ 4,125,512 $ 2,682,935
526,324 156,148
$ 4,651,836 $ 2,839,083
STATEMENTS
OF CAPITAL
SURPLUS AND
RETAINED
EARNINGS
For the yei'lr ended June 30, 1961
Capital Retained
Surplus Earnings
Balance at beginning of year ...................... . $15 I
962,472 $19,573,238
Add:
Net income ................................. . 4,125,512
Special item - Profit on disposition of flight equipment,
less applicable income taxes of $205,000 ........... . 526,324
Excess of proceeds over par value of 2 shares of common
stock issued during year in exchange for scrip ...... . 64
$15,962,536 $24,225,074
Deduct:
Cash dividends on common stock -$1.20 per share ..... 1,346,682
Refund of mail payments received by Chicago and
Southern Air Lines prior to its merger with
Delta Air Lines on May 1, 1953 (Note 2) ............ .
Balance at end of year ($16,483,682 of retained earnings is
restricted as indicated on balance sheet) ............ .
The accompanying notes are an integral part of these statements.
ARTHUR ANDERSEN & CO.
To the Board of Directors,
Delta Air Lines, Inc.:
1,151,863
$15,962,536 $21,726,529
34 Peachtree Street NW
Atlanta 3
We have examined the balance sheet of Delta Air Lines, Inc. (a Louisiana corpo-
ration) as of June 30, 1961, and the related statements of income, capital surplus and re-
tained earnings for the year then ended. Our examination was made in accordance with
generally accepted auditing standards, and accordingly included such tests of the account-
ing records and such other auditing procedures as we considered necessary in the circum-
stances. We had made a similar exam ination for the year ended June 30, 1960.
In our opinion, the accompanying balance sheet and statements of income,
capital surplus and retained earnings present fairly the financial position of Delta Air Lines,
Inc. as of June 30, 1961, and the results of its operations for the year then e~ded, and were
prepared in conformity with generally accepted accounting principles app.lied on a basis
consistent with that of the preceding year.
Atlanta, Georgia
August 17, 1961
15
16
NOTES TO FINANCIAL STATEMENTS
1. LONG-TERM NOTES PAYABLE: The Company's outstanding indebtedness of $32,500,000 to
a group of twenty-four banks under 4 % unsecured notes is repayable in quarterly installments of
$1,250,000 extending to December 31, 1967. The Company has also borrowed $25,000,000 from four
insurance companies on 6% unsecured notes. Repayments of these notes are to be made on a semi-
annual basis beginning on April 1, 1968, with final maturity in 1974.
2. REFUND OF MAIL PAY: In conclusion of the mail pay proceedings begun in 1952, the Com-
pany, as successor to Chicago and Southern Air Lines (C&S), has been ordered by the Civil Aero-
nautics Board (CAB) to refund to the Post Office Department $1,651,863 of international mail pay
received by C&S prior to 1953. Agreement has been reached with the Post Office Department whereby
this refund may be paid in monthly installments over a three-year period beginning April 1, 1961. The
amount due in fiscal 1962 ($390,000) is included in current liabilities and the balance ($1,171,863) is in
noncurrent liabilities in the accompanying balance sheet. Of the total liability, $500,000 was charged
to a special reserve for contingencies provided in prior years and the balance ($1,151,863) has been
charged to retained earnings.
3. FLEET EXPANSION PROGRAM: At June 30, 1961, the Company had outstanding commit-
ments for the purchase of five Convair Model 880 aircraft (three new aircraft and two at the expiration
of one-year leases) to be delivered in 1961. The acquisition of these aircraft, together with related
spare parts and accessories, will require the outlay of approximately $13,000,000 in 1961, in addition
to advance payments made prior to that date.
Subsequent to June 30, 1961, the Company entered into agreements to purchase four additional
Convair 880's and three Douglas DC-8 aircraft for delivery in 1962. The purchase of these aircraft,
together with related spare parts and accessories, will require the outlay of approximately $2,000,000
in 1961 and $34,000,000 in 1962. The Company has the right to postpone delivery of one Douglas DC-8
aircraft to 1963 which would, if exercised, also postpone the payment of $4,000,000 from 1962 to 1963.
New high-frequency
service by DELTA
More JETS ... More low-cost tourist seats I
':..
.
DELTA'S STORY TO THE PUBLIC
Thanks to early acquisition of jet equipment,
Delta was able to feature jet leadership in its
advertising program during the past year.
Vigorous advertising of the new Southern
Transcontinental service helped achieve favor-
able load factors even during initial operations.
FLY DELTA'S BIG JETLINERS TO FLO RI D A'S Wimr W O NDER L A N D
FLY DELTA'S new 7-11
non-stop to S
~ =UEGAS
Now fly Delta the jet leader
Non -atop to Los Angeles In 4%. hrs.
LOS ANGELES -~
~.-:::..._-~"-SM." ... .
~~~
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N19WOt1eans
... w York Chtc.go
z_~.::.,t::?=:::-f-~:..::-.: :;. .... ., ~~-::,
Mot JU -.:..-.... -;;:~
Mo t Jet experience = The only Jets to TAMPA .:::. '57'
Wort~v..
at~
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.,.,-.., .. '"""'""'A"><, -.-F
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- th1 u, .. ,,.,,e with 1hr Bl(.z JETS , 1; .. :,.. . w-.<
,_.,,._,.,,,."~-="" --"
IUl'#U 6 i4 ll"-!i"-ii,1JH-i P i@fWi&!it
DELTA announces
a New Southern
Transcontinental
Jet Route ATlANTA-l. A.
NON-STOP4~
LO_
S ANGELES_,_ . ,,
,.., _,. ,,,,.,.,, ~~- '
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:i" Diego N~w ~r1~an~
1-I J I
17
Years Ended June 30
Total assets .............................
Current assets .............. , . , ........ , ,
Current liabilities ..........................
Net working capital ...............
Stockholder equity .........................
Stockholder equity per share* .................
Shares of common stock outstanding* ...... , , ..
Operating revenues
Passenger ............... .............
Mail .. , . ................. , .. , ..... ,.
Express ................... , ........ , .
Freight ....... .. .... .... ............ ..
All Other ............ ~ ................
Total revenues ..................
Operating expenses (excluding
depreciation and amortization) .. , ...........
Depreciation and amortization .................
Total expenses ..................
Operating ratio .........................
Net non-operating revenue or (expense) ..........
Net income before taxes .....................
Taxes on income ..........................
Net income .......... , ..........
Net income as % of revenues ......
Special item - profit on disposition of
flight equipment (after taxes) ...........
Total income and special item ................
Per share of stock outstanding* .............
Dividends paid
IO O O O O O I IO O O I IO O I I I I I I I IO I .
Dividends paid per share* .................
Revenue plane miles (000) . ... ................
Revenue passengers carried ................ ..
Available seat miles (000) , ...................
Revenue passenger miles (000) ................
Passenger load factor . , ..................
Available ton miles (000). , ......... , , ...... , .
Revenue ton miles (000) .....................
Overall load factor .. . ....................
Percent of scheduled miles flown ......... ... , .
*Adjusted to reflect 25% stock dividend paid June 29, 1956.
18
1961
$134,937,794
30,141,763
26,084,168
$ 4,057,595
$ 41,055,770
$36.58
1,122,235
$134,946,466
2,578,792
1,407,946
4,070,462
3,128,667
$146,132,333
$119,225,530
15,205,584
$134,431,114
91.99%
$ (2,733,707) .
$ 8,967,512
4,842,000
$ 4,125,512
2.82%
$ 526,324
$ 4,651,836
$4.15
$ 1,346,682
$1.20
49,455
3,569,778
3,389,547
2,034,047
60.01%
442,251
223,592
50.56%
97.14%
2,100
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
Mill
.
.,
,----------------,4
.,
',,_.
~.,, <Milli
/
~"'
I,"" i - - - - - - - - - - --=----l-la-1 3 I'. ,,::n,on , Tnn
( ~illionsl
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---1----1~ 2
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1, ,...'Ill"'
___ ...
460
440
420
400
380
360
340
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
'52 '53 '54 '55 '56 '57 '58 '59 '60 '61 '52 '53 '54 '55 '56 '57 '58 '59 '60 '61 52 53 54 55 '56 57 53 59 50 '61
REVENUE PASSENGER MILES REVENUE PASSENGERS CARRIED TON MILES AND PLANE MILES
1960 1959 1958 1957 1956 1955 1954 . 1953 1952
$121,889,507 $ 95,426,900 $ 80,941,307 $ 66,931 ,027 $ 54,638,388 $ 54,049,882 $ 48,089,997 $ 37,966,469 $ 16,836,905
26,723,493 23,947,879 15,453,600 16,773,180 15,140,819 18,762,696 15,888,546 14,706,498 7,186,793
17,982,990 13,684,994 9,701,837 11,092,231 11,654,690 12,686,444 8,861,111 9,192,041 6,618,627
$ 8,740,503 $ 10,262,885 $ 5,751,763 $ 5,680,949 $ 3,486,129 $ 6,076,252 $ 7,027,435 $ 5,514,457 $ 568,166
$ 38 I
902 ,409 $ 37,409,576 $ 34,019,718 $ 33,965,765 $ 28,357,864 $ 19,845,898 $ 16,233,227 $ 15,647,278 $ 9,808,493
$34.67 $33.34 $30.32 $30.27 $28.47 $23.99 $21.64 $20.86 $15.69
1,122,233 1,122,221 1,122,045 1,121,944 996,219 827,391 750,000 750,000 625,000
$109,671,406 $ 94,061,577 $ 80,217,086 $ 71,873,125 $ 60,557,924 $ 53,966,525 $ 45,144,949 $ 28,946,479 $ 23,995.938
2,140,292 2,151,953 1,795,885 1,636,218 1,468,247 1,462,684 1,723,703 1,131,578 1,035,599
1,361,837 1,206,184 952,510 1,015,947 1,045,567 917,609 844,483 550,305 431,240
4,250,345 3,879,389 2,954,896 2,230,512 2,020,061 1,844,168 1,766,266 1,044,338 827,927
2,767,345 2,506,342 2,252,318 1,840,201 1,712,827 996,975 854,481 665,102 727,417
$120,191,225 $103,805,445 $ 88,172,695 $ 78,596,003 $ 66,804,626 $ 59,187,961 $ 50,333,882 $ 32,337,802 $ 27,018, 121
$101,708,515 $ 85,549,826 $ 76,276,726 $ 65,782,059 $ 53,168,806 $ 47,047,051 $ 43,021,159 $ 26,641,944 $21,155,513
11,752,074 8,870,785 9,354,358 6,728,875 5,661,358 6,444,981 5,275,152 2,259,784 1,485,556
$113,460,589 $ 94,420,611 $ 85,631,084 $ 72,510,934 $ 58,830,164 $ 53,492,032 $ 48,296,311 $ 28,901,728 $ 22,641,069
94.40% 90.96% 97.12% 92.26% 88.06% 90.38% 95.95% 89.37% 83.80%
$ (1,312,701) $ (553,612) $ (599,865) $ (556,423) $ (536,265) $ (1,376,754) $ (1,359,987) $ (1,345,957) $ 12,398
$ 5,417,935 $ 8,831,222 $ 1,941,746 $ 5,528,646 $ 7,438,196 $ 4,319,175 $ 677,584 $ 2,090,117 $ 4,389,450
2,735,000 4,769,000 1,010,000 2,990,000 4,069,000 2,412,000 394,000 688,000 2,739,000
$ 2,682,935 $ 4,062,222 $ 931,746 $ 2,538,646 $ 3,369,196 $ 1,907,175 $ 283,584 $ 1,402,117 $ 1,650,450
2.23% 3.91% 1.06% 3.23% 5.04% 3.22% .56% 4.34% 6.11%
$ 156,148 $ $ 131,409 $ 82,939 $ 1,308,770 $ 258,850 $ 1,022,365 $ 2,756,561 $
$ 2,839,083 $ 4,062,222 $ 1,063,155 $ 2,621,585 $ 4,677,966 $ 2,166,025 $ 1,305,949 $ 4,158,678 $ 1,650,450
$2.53 $3.62 $ .95 $2.34 $4.70
$2.62 $1.74 $5.54 $2.64
$ 1,346,671 $ 673,270 $ 1,009,791 $ 1,346,109 $ 922,990 $ 720,309 $ 720,000 $ 575,000 $ 500,000
$1.20 $ .60 $ .90 $1.20 $' .96 $ .96 $ .96 $ .80 $ .80
49,405 46,022 44,972 41,671 33,962 31,579 31,916 20,672 17,531
3,241,511 2,988,241 2,728,220 2,572,982 2,261,770 2,039,018 1,712,562 1,119,688 940,120
3,027,450 2,622,740 2,479,428 2,206,408 1,726,941 1,517,891 1,344,069 776,157 653,121
1,757,208 1,554,630 1,408,857 1,299,482 1,080,267 952,426 769,653 507,713 427,534
58.04% 59.28% 56.82% 58.90% 62.55% 62.75% 57.26% 65.41 % 65.46%
387,552 324,018 301,105 260,431 207,416 182,997 162,345 94,045 80,089
195,373 174,936 156,332 141,861 118,544 104,927 87,251 57,565 48,093
50.41% 53.99% 51.92% 54.47% 57.15% 57.34% 53.74% 61.21% 60.05%
97.03% 97.04% 97.40% 97.62% 98.39% 98.79% 98.29% 98.83% 98.98%
These data reflect operations of Delta Air_ Li nes, Inc., and do not include the C&S system prior to May 1, 1953.
19
20
DELTA TICKET OFFICES
Ticket Offices Reservations Telephone
Alexandria Lobby, Bentley Hotel ..................... HIiicrest 2-4471
Aruba, Neth. Ant. Nassau Street 88 .......................... 2707
Asheville Lobby, Battery Park Hotel .................... Alpine 2-7601
Atlanta Fulton National Bank Bldg., Piedmont & Biltmore Hotels .... 521-3000
Augusta Richmond Hotel ............................. PArk 2-8811
Baltimore Lord Baltimore Hotel ..................... Southfield 6-2100
Baton Rouge Lobby, Capitol House Hotel ................. Elgin 6-4333
Beaumont Airport .............................. RAndolph 2-3471
Birmingham 2002 Fifth Avenue, North ....................... 592-9601
Brunswick Airport ................................ MEirose 8-2531
Caracas, Venz. Edificio Paris, Plaza Candelaria ................ 55-8488
Charleston Lobby, Francis Marion Hotel ............... SHerwood 4-2567
Charlotte Lobby, Selwyn Hotel ............................ 392-4321
Chattanooga Lobby, Hotel Patten .................... MAdison 2-8336
Chicago 67 East Monroe ........................... Financial 6-5300
Conrad Hilton Hotel
1649 Orrington, Evanston, Ill.
Cincinnati Sheraton-Gibson Hotel and .................. DUnbar 1-3232
Netherland-Hilton Hotel
Clearwater . ......................................... .446-8318
Columbia Lobby, Hotel Wade Hampton .................. SWift 4-3000
Columbus, Ga. Ralston Hotel ........................ FAirfax 7-7458
Columbus, Ohio Lobby, Deshler Hilton Hotel ................. 237-7474
Dallas 212 S. Akard St. (Baker Hotel) ....... .' ......... Fleetwood 7-6161
Lobby, Marriott Motor Hotel
Dayton Biltmore Hotel ........................... TWin Oaks 8-3651
Detroit 1205 Washington Blvd. and .................. WOodward 5-3000
Lobby, General Motors Bldg.
Evansville Lobby, Mccurdy Hotel ................... HArrison 5-9023
Fort Lauderdale 10 S.E. Sixth Avenue ............. , .... JAckson 4-0331
Fort Wayne Lobby, Van Orman Hotel ................. SHerwood 4191
Fort Worth Lobby, Hotel Texas ....................... EDison 2-7871
Greenville Airport ................................. CEdar 2-8213
Havana, Cuba Prado 301 ................................. 6-8224
Hendersonville Airport ............................. OXford 3-7211
Hot Springs Airport .............................. NAtional 3-1671
Houston Rice Hotel and Shamrock-Hilton Hotel ........... CApitol 5-1361
Indianapolis Lobby, Claypool Hotel .................... MEirose 7-1554
Jackson Heidelberg Hotel ........................ Fleetwood 2-0861
Jacksonville Hotel Robert Meyer ....................... Elgin 3-3171
Kansas City Muehlebach Hotel ....................... GRand 1-7733
Knoxville Farragut Hotel ............................... 577-6611
Las Vegas Sahara Hotel ............................ REgent 3-1661
Lexington Airport ..................................... .4-5569
Little Rock Capitol at Ferry Street (Lobby, Coachman's Inn) .. FRanklin 5-9111
Los Angeles 504 W. Sixth Street .................... MAdison 0-1050
Burbank ...................................... STate 2-7551
Beverly Hills Beverly Hilton Hotel ................. CRestview3-1813
Hollywood Hollywood Roosevelt Hotel .............. MAdison 0-1050
Long Beach Wilton Hotel ...................... NEwmark 9-6950
Pasadena 626 E. Colorado Blvd ................... SYcamore 5-0449
Louisville Shop 102, Starks Bldg .......................... 367-6411
Macon Lobby, Hotel Dempsey ...................... SHerwood 3-6731
Maracaibo, Venz. Edificio lcuma Ave. 5 de Julio ................ 75-281
Memphis Peabody Hotel .......................... WHitehall 8-2641
Meridian Airport .................................... .482-3141
Miami 300 N.E. First St. (Columbus Hotel) .............. FRanklin 3-0441
Miami Beach 1632 Collins Avenue & 230 71st St ........... FRanklin 3-0441
Monroe Lobby, Frances Hotel ........................ FAirfax 3-5116
Montego Bay, Jamaica Casa Montego Hotel ..................... 2811
Montgomery Lobby, Jefferson Davis Hotel ................... 264-7313
New Orleans Sheraton-Charles Hotel and Roosevelt Hotel ........ 524-8592
New York Rockefeller Center, 5 West 49th St ............ .
Airlines Building, 80 E. 42nd St. ................... .
635 Madison Ave. 15th Floor ......................
100 Broadway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Plaza 1_
6500
Lobby, Statler Hotel, 7th Ave. and 33rd St. ............ .
East Side Terminal, First Ave., 37-38 Sts .............. .
West Side Terminal, 42nd St. and 10th Ave ........... .
200 Livingston St., Brooklyn ...................... .
White Plains 35 Mamaroneck Ave .......... , , , l White Plains 6-1626
Westchester ............................. ,
Nassau & Suffolk . .............................. IVanhoe 1-6811
Newark, N. J. 13 Commerce St ....................... Mitchell 2-2228
Orlando Lobby, San Juan Hotel ....................... CHerry 1-4531
Paducah Airport. ..................................... 443-1732
Philadelphia Bellevue-Stratford Hotel and Sheraton Hotel ... SAratoga 7-9900
Port Arthur Airport ............................. RAndolph 2-3471
Port Au Prince, Haiti 2 Rue Du Fort Per ....................... 3313
San Diego U.S. Grant Hotel ......................... CYpress 7-4621
San Francisco Sheraton Palace Hotel .................. EXbrook 7-3242
Oakland 1922 Broadway ........................ TEmplebar 4-6680
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LINES
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San Juan, Puerto Rico Hotel La Concha ..................... 791-0045
Savannah Manger Hotel ............................ ADams 3-0267
Shreveport Captain Shreve Hotel ........................ .425-3232
Spartanburg ......................................... 582-7131
Springfield Airport .............................. UNiversity 6-1951
St. Louis Lobby, Statler Hotel ......................... MAin 1-7580
St. Petersburg ...... ............................. ORange 1-7141
Tampa 500 Florida Ave. (Hillsboro Hotel) ...................... 2-2911
Toledo Commodore Perry Hotel Arcade ..................... 244-8661
Tulsa Alvin Hotel, 627 So. Main ....................... LUther 2-0202
Washington, D.C. 1605 K Street, N.W. & Washington Hotel ... District 7-9600
West Palm Beach Town House Motor Hotel (100 Datura St.) ........ 833-6604
TODD G. COLE
Atlanta, Georgia
EMERY FLINN
Miami, Florida"
R. S. MAURER
Atlanta, Georgia
R. W. FREEMAN
Chairman
New Orleans, Louisiana
R. W. COURTS
Atlanta, Georgia
EDWARD H. GERRY
New York, N'ew York
WINSHIP NUNNALLY
Atlanta, Georgia
DIRECTORS
C.H. DOLSON
Atlanta, Georgia
JOHN R. LONGMIRE
St. Louis, Missouri
CARLETpN PUTNAM
Washington, D. C.
J. WOODALL RODGERS*
Dallas, Texas
GEORGE M. SNELLINGS, JR.
Monroe, Louisiana
C. E. WOOLMAN
Atlanta,-Georg ia
*Deceased July 6, 1961
C. E. WOOLMAN
President and General Manager
TODD G. COLE
Executive Vice President -
Administration and Assistant Secretary
C.H. DOLSON
Executive Vice President -
Operations
OFFICERS
W. T. BEEBE
Vice President- Personnel
R. S. MAURER
Vice President-
Legal and Secretary
ROBERT L. GRIFFITH
Vice President
T. M. MILLER
Vice President -
Traffic and Sales
ROBERT OPPENLANDER
Comptroller and Treasurer
CHARLES P. KNECHT PAUL W. PATE R. H. WHARTON C. BOYCE WILDER
Assistant Vice President - Assistant Vice President - Assistant Vice President - Assistant Vice President
Sales Properties Personnel Operations - Technical
CATHERINE FITZGERALD
Assistant Treasurer
J. R. HOWELL
Assistant Treasurer
HUGH H. SAXON
Assistant Treasurer
TRANSFER AGENTS: The Citizens & 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.
ANNUAL MEETING: October 26, 1961, Monroe, Louisiana

DELTA AIR LINES, INC. GENERAL OFFICES ATLANTA AIRPORT, AT L ANTA, GEORGIA