Delta Air Lines annual report 1962

Delta's outstanding safety record was recognized in
October 1961 when C. E. Woolman, President and Gen-
eral Manager, received the Marsh and McLennan award
attesting to 11,280,000,000 passenger miles without a
fatality. The total now exceeds 14,000,000,000 revenue
passenger miles.
COMPARATIVE SUMMARY OF OPERATIONS
Dollars expressed in thousands except per share figures
Operating Revenues . . . . . . . . .
Operating Expenses ( excluding depreciation) .
Operating Income ( excluding depreciation) . . . .
Depreciation and amortization expense .
Operating Income after depreciation . . . .
Net Income from Operations, after Taxes and other charges
Total 'Earnings . . . . . . . . . .
Shares Outstanding at year end*
Earnings Per Share* . . . . .
Total Stockholder Equity . . .
Stockholder Equity Per Share* . .
Revenue Passengers Carried . .
Available Seat Miles (000) . .
Revenue Passenger Miles ( 000)
Passenger Load Factor . . . .
* Adjusted to reflect 33% stock split recorded March 15, 1962
YEARS ENDED JUNE 30
1962
$169,777
$136,935
$ 32,842
$ 17,736
$ 15,106
$ 5,665
$ 6,985
1,700,000
$4.11
$53,619
$31.54
3,768,707
4,123,318
2,393,991
58.06%
1961
$146,132
$119,226
$ 26,906
$ 15,205
$ 11,701
$ 4,126
$ 4,652
1,496,313
$3.11
$41,056
$27.44
3,569,778
3,389,547
2,034,047
60.01%
Delta Air Lines, Inc.
Annual Report to the Stockholders
FROM EVERY VIEWPOINT the fiscal year ended June 30, 1962 was a most im-
pressive year in the history of Delta Air Lines. Traffic, revenues, and earnings
reached new highs. Service over the Southern Transcontinental Route was ex-
panded, including inauguration of service to San Francisco and Las Vegas,
and was all-jet by the end of the year. Your Company broadened its equity
base, by a common stock split effected in the form of a 33 % stock dividend
and the sale of 203,687 shares of common stock in a public offering. Net
earnings from operations after all charges and taxes were $5,665,000, and
profits from sales of flight equipment brought total earnings to $6,985,000
( $4.11 a share). Stockholder equity rose $12,563,000 during the year to
$53,619,000 ($31.54 a share).
REVENUES
TOTAL OPERATING REVENUES climbed to $169,777,000, up 16% over the pre-
ceding year. Passenger revenues also increased 16%, to $155,994,000. A total
of 3,769,000 revenue passengers were carried in producing 2,394 million
revenue passenger miles, a gain of 18%. A continuing shift of traffic from first
class to the lower-priced coach accommodations more than offset a 3 % fare
increase effective February 1, 1962, and the average return per passenger mile
actually dropped 2% below the previous year's level.
Revenues of $3,414,000 from U. S. mail represented a 32% increase over
the previous year, as mail ton miles rose 35%. In addition to regular air mail,
which is given priority handling, the nation's airlines also carry first class mail
between certain designated points on a non-priority, space available basis to
expedite delivery. The Post Office Department pays for the movement of this
non-priority mail at approximately 50% of normal air mail rates. The volumes
of air mail and first class mail and the average yields over the past four years
are set forth in the following summary:
AIR MAIL
Ton Ton Mile
FISCAL YEAR ENDED Miles Yield
June 30, 1959 ......... 5,006,000
June 30, 1960 ......... 4,752,000
June 30, 1961 ......... 5,628,000
June 30, 1962 ......... 8,013,000
41.43
42.85
40.92
39.11
FIRST CLASS MAIL
Ton Ton Mile
Miles Yield
390,000
523,000
1,432,000
1,502,000
19.99
19.92
19.27
18.68
Carriage of air freight generated revenues of $5,814,000, 43% above the
preceding year, and air express revenues rose 19% to $1,669,000. These
substantial increases can be attributed to the excellent cargo carrying capa-
bilities of jet aircraft, to the Southern Transcontinental Route, and to the
higher level of economic activity over the country.
EXPENSES
OPERATING EXPENSES increased 15% over the preceding year as a result of
expanding operations and upward trending cost levels in some areas. The
largest dollar increase occurred in employee earnings, which rose $7,175,000
?
as a result of both additional employment and higher wage and salary scales
placed into effect during the year. Advertising expenditures experienced the
largest percentage increase (361/c ) because of the promotional efforts ex-
pended in merchandising your Company's new services to the West Coast and
its expanded jet operations. Depreciation and amortization expenses, reflect-
ing the addition of three DC-8 and three Convair 880 jet transports to your
Company's fleet during the year, rose 17% to $17,736,000; an analysis of
depreciation and amortization charges for the last three years follows:
(IN THOUSANDS)
Flight equipment depreciation
Propeller equipment ....... .
Pure-jet equipment .......... .
Ground equipment depreciation .....
Amortization of pre-operating
expenses ................ .
Credits from equipment interchange
operations . . . . . . . . . . . . . . . .
Totals ................ .
FISCAL YEAR ENDED JUNE 30
1962 1961 1960
$ 5,961 $ 6,699 $ 8,490
8,987 6,584 2,697
$14,947 $13,283 $11,187
1,365 1,129 1,012
1,424 1,511 553
(717) (1,000)
$17,736 $15,206 $11,752
Notwithstanding the dollar increases in operating expenses, unit costs
were down from the previous year. The cost of producing an available seat-
mile dropped 5% , to 3.74, and the available ton mile cost was down 6% .
These lower unit costs can be attributed to three principal factors: ( 1) more
economical long-haul operations over the West Coast routes, (2) improved
utilization of jet aircraft, and (3) continuing improvement in the excellent
reliability of the jets which has, for example, permitted a 64% increase in
authorized flying hours between jet engine overhauls during the year.
EARNINGS AND DIVIDENDS
OPERATING INCOME for the year was a record $15,106,000, an increase of
29% over the $11,701,000 for the preceding period. Interest costs showed a
modest rise ( from $2,852,000 to $2,938,000) and net income before taxes was
up 37% to $12,244,000.
Net earnings of $5,665,000 from operations, after all charges and taxes,
were the highest in the history of Delta Air Lines. An additional profit on
aircraft sales of $1,320,000 ( after applicable taxes) brought total net earnings
to $6,985,000, equal to $4.11 for each of the 1,700,000 shares outstanding at
year end. This compares to the previous year's net earnings of $4,652,000 and
$3.11 per share on 1,496,313 shares after adjustment for the stock split.
Four cash dividends of 30 per share paid on September 1, 1961, Decem-
ber 1, 1961, March 1, 1962 and June 1, 1962 were declared by the Board of
Directors during the year, marking the fourteenth consecutive year in which
cash dividends have been paid. In the past 21 years your Company has paid
dividends in all but one year. Aggregate dollar amount of cash dividends dur-
ing the fiscal year was $1,520,012, as follows:
DATE DATE DIVIDEND SHARES TOTAL
DECLARED PAID PER SHARE OUTSTANDING DIVIDEND
July 27, 1961 September 1, 1961 30 1,122,235 $ 336,670.50
October 26, 1961 December 1, 1961 30 1,122,235 336,670.50
January 25, 1962 March 1, 1962 30ef, 1,122,235 336,670.50
April 26, 1962 June 1, 1962 30 1,700,000 510,000.00
$1,520,011.50
Sources
Amount in
Thousands
Passengers and
Their Excess
Baggage ... $157,823 92.96
Mail ....... 3,414 2.01
Freight and
Express 7,483 4.41
Other ..... 1,057 .62
Total Revenue $169,777 100.00
SERVICE
ON JuNE 11, 1962, Delta completed its first full year of operations to Cali-
fornia. Initial service patterns, begun in June, 1961, provided jet service be-
tween Los Angeles and Atlanta via Dallas/Fort Worth and New Orleans.
Service to Las Vegas began on July 1, employing DC-7 aircraft, and in October
your Company expanded West Coast operations with jets to San Francisco. A
vital need in the nation's arms program was filled with the inauguration of jet
transportation between the major missile centers of Orlando ( Cape Canaveral)
and Los Angeles in October, 1961. During the same month Delta provided
Birmingham with its first jet schedules, offering through-plane service to
California. In June, 1962, your Company scheduled jet flights via Las Vegas
on its expanded San Francisco-Atlanta service pattern following the lifting of'
a restriction on carriage of local traffic between Las Vegas and San Francisco
and now provides an all-jet operation over its Southern Transcontinental
Route.
The Caribbean was linked with the West Coast in December, 1961, when
Delta inaugurated the first jet service from California to Montego Bay and
Caracas. In May, 1962 Caribbean service was upgraded to an all-jet pattern,
and one-stop jet service began between Los Angeles and San Juan via New
Orleans. Political and economic instability in certain Caribbean areas has
necessitated the suspension of service to Havana, Port-au-Prince, Aruba, and
Santo Domingo.
With the new services, available seat miles increased 22% to 4,123 million.
This was accompanied by an 18% increase in revenue passenger miles, and
the passenger load factor (percentage of seats occupied) dipped to 58.06%
from the 60.01 % registered in 1961.
1962 REVENUE DOLLAR
(Twelve months ended June 30, 1962)
Distribution
Employee salaries
Amount in
Thousands
and related costs* .. $65,431
Depreciation . . . . . . 17,736
Gasoline and Oil . . . . 20,454
Maintenance materials . 11,963
Food and supplies for
passengers . . . . . . 5,475
Rentals, Landing Fees . 5,830
Advertising . . . . . . . 5,134
Communications . . . . 3,687
Other operating costs . . 14,667
Capital Costs (Interest
and Dividends) . . . 5,581
Taxes ......... .
in business . . 4,342
Total ........ $169,777
''Salaries, travel, employee
welfare and payroll taxes
38.54
10.45
12.05
7.05
3.22
3.43
3.02
2.17
8.64
3.29
5.58
2.56
100.00
3
Two significant changes occurred in the pattern of your Company's
services during the year, generally paralleling industry trends. First, cabin
configurations were modified during the year to provide first class and coach
accommodations in all four-engined aircraft, both piston and jet. This was
necessary to meet the increasing demand for coach service created by the
industry's fare structure which provides a differential between first class and
coach fares that is disproportionate to the service differentials. As a conse-
quence, coach seat miles increased 37.78% and first class seat miles increased
9.75% ; corresponding changes in revenue passenger miles were an increase of
45.02% in coach service and a decrease of 3.44% in first class service. Second,
as a result of the acquisition of additional jet aircraft during the year and the
public preference for jet service, the 22% increase in total seat miles was
achieved with a 70% increase in seat miles flown with jet aircraft and a 7%
decrease in seat miles flown with piston-engined aircraft. At year-end, jet seat
miles represented 61.60% of the total.
The cities provided with jet service by your Company numbered 23 at the
end of the year, as compared with 15 at the beginning of the year. Also, jet
service to Newark and Jacksonville began shortly after the close of the year.
FLIGHT EQUIPMENT
THREE CoNVAIR MooEL 880 jet aircraft and three fan-engine DC-8 jet aircraft
were received during the year. The fan-jet DC-8 is the latest and most powerful
model of the DC-8 to be built by the Douglas Company, with increased ef-
ficiency and longer range. In July, 1962 your Company accepted delivery of
four Convair 880's, bringing the jet fleet to a total of 25 aircraft.
Shortly after the close of the year, an order was placed for an additional
fan-jet DC-8 to be delivered in December, 1962. Arrangements have also been
made for the installation of new fan-jet engines in the six DC-8's acquired in
1959 over a six-month period beginning in May, 1963; this conversion is part
of the planned program involving use of the already-proven JT3C-6 engine
until superior engines became available.
JET-537,062
(48.50%)
JET-471,189
(41.08%)
JET-784,014
(60.94%)
PROPELLER-570,381
(51.50%)
PROPELLER -675,714
(58.92%)
PROPELLER-502,534
(39.06%)
JET-400,221
(45.11%)
PROPELLER -486,923
(54.89%)
Deliveries of jet aircraft permitted the sale of five Convair 340/440 air-
craft, for which a firm demand exists, at advantageous prices. Two DC-3 air-
craft were also sold during the year.
As of June 30, 1962 Delta's operating fleet consisted of 77 aircraft:
MANUFACTURER MODEL NUMBER
Douglas DC-8 Jet 9
Convair 880 Jet 12
Douglas DC-7/7B 19
Douglas DC-6 11
Convair 340/440 21
Curtiss C-46 5
with a net book value of $107,777,000 as detailed below:
(IN THOUSANDS) TOTAL
Original cost ................. $182,707
Depreciation accrued to June 30, 1962 . . 74,930
Net book value at June 30, 1962 ...... $107,777
JET
EQUIPMENT
$110,298
18,462
$ 91,836
NUMBER OF
SEATS
126
92
75
67
44
Cargo
PROPELLER
EQUIPMENT
$72,409
56,468
$15,941
Your Company continues to take advantage of technical advances which
contribute to flight reliability and regularity. Among the more recent develop-
ments in this field are:
Distance measuring equipment ( D ME), which provides the pilot with
the exact distance from his position to the radio station check point
to which he is tuned, through a direct reading odometer.
Beacon transponder equipment, an electronic device that provides
positive identification of each aircraft so equipped to ground control
radar stations.
Your Company is following closely the development of short range jet air-
craft. However, the economic characteristics of the Convair 880 and its ability
to serve intermediate range markets remove any sense of urgency from evalua-
tion and analysis of short haul jet aircraft.
(All amounts in thousands) TOTAL FOR
FIVE YEARS
FUNDS PROVIDED BY: 1962
Net earnings, excluding equipment sales . $ 17,468 $ 5,665
Equipment retirement proceeds, less taxes 5,399 1,960
Deferred income taxes, net, payable in later years . 16,144 5,882
Depreciation and amortization accruals . 65,921 17,736
Sale of common stock (203,687 shares) . 7,099 7,099
Borrowings under credit agreements . 52,600 10,000
Miscellaneous, principally expenses not requiring cash
expenditures 1,384 594
- - -
$166,015 $48,936
FUNDS USED FOR:
Flight equipment additions, including advances $128,946 $35,883
Preoperating expenditures 3,487 130
Ground facility and equipment additions 11,706 2,489
Reduction of long-term debt 12,727 5,227
Cash dividends 5,895 1,520
All other purposes . 1,785 595
- - -
$164,546 $45,844
Net Change in Working Capital .+ $ 1,469 + $ 3,092
Working Capital at beginning of period 5,681 4,058
---
Working Capital at end of period . $ 7,150 $ 7,150
FISCAL YEARS ENDED JUNE 30
1961 1960 1959 1958
$ 4,126 $ 2,683 $ 4,062 $ 932
699 2,582 158
2,545 2,780 2,120 2,817
15,922 12,753 9,637 9,873
5,000 20,000 5,000 12,600
515 81 178 16
$28,807 $40,879 $20,997 $26,396
$20,941 $34,306 $13,960 $23,856
763 2,244 350
4,477 2,173 1,269 1,298
5,357 2,143
1,346 1,346 673 1,010
606 189 234 161
$33,490 $42,401 $16,486 $26,325
-$ 4,683 -$ 1,522 , + $ 4,511 +$ 71
8,741 10,263 5,752 5,681
--- --- ---
$ 4,058 $ 8,741 $10,263 $ 5,752
6
GROUND EQUIPMENT AND FACILITIES
DURING THE YEAR your Company moved into new airport facilities at Ashe-
ville, Birmingham, Dayton and Chicago's O'Hare International Airport.
Coinciding with the beginning of operations with a direct dial teletype system
and improved new radio and telephone communications equipment, Delta
moved its Atlanta communications and flight control functions into one cen-
trally-located building at the Atlanta Airport remodeled for these specific tasks.
By the end of the fiscal year programming work had passed the halfway
mark for the SABRE electronic reservations system being constructed by
International Business Machines Corporation to your Company's specifica-
tions. SABRE will offer to Delta customers the most advanced reservations
service yet devised. It will, in addition to providing instantaneous space
availability information, store complete passenger name records, automatically
obtain space on interline flights, order meals, check for duplicate reservations
and expired time limits, automatically clear passengers on waiting lists, and
disseminate flight information. Answers to any of more than 200 different
types of inquiries can be obtained within three seconds. Initial components
of the system will become operational in the second half of 1963.
PERSONNEL
THE RANKS of the men and women of Delta Air Lines increased 493 during
the year, to 8,783 at year end. Their skills, loyalties, and courtesy appropriately
complement your Company's aircraft fleet - the finest in the world - in
providing the friendly, efficient air transportation for the nation's travelers
and shippers which is responsible for the continuing growth in traffic volumes
and employment opportunities.
PERSONNEL AT JUNE 30, 1962
Pilots ...................... .
Stewardesses . . . . . . . . . . . . . . . . . .
NUMBER
793
622
PER CENT
OF TOTAL
9o/o
7
Maintenance and engineering personnel . . . 2,902 33
Sales, reservations, and ticketing personnel . . . 1,850 21
Stations operations personnel . . . . . . . . . . 1,856 21
All other personnel . . . . . . . . . . . . . . . . . . . . . . . . 760 9
Totals .............................. 8,783 100%
Delta's electronic SABRE system for "instant"
reservations will advise the status of seat
availability on any Delta flight within 3 sec-
onds and handle connecting reservations on
other airlines as well. It also makes cancelled
reservations immediately available for resale.
This electronic aid to Delta's traditional "serv-
ice with a smile" will be installed late next year.
200
180
160
140
Cf)
a:: 120
j
0
0
LL
0
Cf)
100
z
0
j
~
~
80
60
40
20
0
FLIGHT EQUIPMENT
-
..
COST
NET BOOK VALUE
DEPRECIATION
58 59 60 61 62
CAPITALIZATION AND FINANCING
ON JANUARY 25, 1962, the Board of Directors declared a split of the common
stock, to be effected in the form of a 33 % stock dividend. In payment of
this dividend, a total of 374,078 shares of stock were distributed on March
15, 1962 to stockholders of record on February 9, 1962 bringing the outstand-
ing shares to 1,496,313. In April, 1962, an additional 203,687 shares were
sold in a public offering at $37.25 per share. This increase, the first in new
equity capital since 1956, furnishes a desirable broadening of your Company's
equity base in keeping with the expanding scope of operations.
Stockholder equity at year end amounted to $53,619,000, or $31.54 for
each of the 1,700,000 shares. This compares to $41,056,000 and $27.44 per
share (adjusted for the stock dividend) at the beginning of this fiscal period.
It is significant to note that the current net book value of each share of Delta
stock stands at more than double that of a decade ago.
In the latter part of 1961 your Company completed arrangements with
banks and insurance companies providing additional capital for the financing
of Delta's jet program. Under the arrangement with the banks, $15,000,000
will be made available as a revolving credit through March, 1963 to be repaid
in 22 quarterly installments beginning May 1, 1963 and extending to August,
1968. Credit agreements with three insurance companies provide an additional
$10,000,000 payable over a four year period beginning in mid-1969. A total
of $10,000,000 had been borrowed under these new agreements as of June 30,
1962, and repayments under earlier credit agreements amounted to $5,000,000
during the year then ended. No additional financing will be required to meet
currently outstanding purchase commitments.
REGULATORY MATTERS
THE PENDING PROPOSAL of American Airlines and Eastern Air Lines that they
be allowed to merge is opposed by your Company, virtually all other trunk
airlines, numerous labor organizations, the CAB's own Bureau of Economic
Regulation, and the Department of Justice. Approval of this merger would
give the new company control of more than 35% of the nation's air traffic
thereby creating a giant air carrier of unprecedented size and greatly intensify-
ing the problems of excessive competition within the industry rather than
alleviating them.
The Department of Justice, in a brief filed with the Civil Aeronautics Board
Examiner on behalf of the Federal government, asking that the merger be
denied, said in part:
"Because the merger of American and Eastern cannot under the first
proviso of Section 408 ( b) [ of the Federal Aviation Act] be approved
by the Board and because the proposal is otherwise not consistent with
the public interest, the Board should disapprove the application ... "
"Pursuant to the first proviso to Section 408 ( b) the Board has no
alternative than to deny the instant application for merger, since the
merger would result in the creation of monopolies which would restrain
competition and which would jeopardize other air carriers."
"A merger creating ... drastic industry imbalance ... cannot be justi-
fied unless there is some compelling or overriding benefit to be served
thereby in the public interest, and none has been shown ... It is the
position of the United States of America that the Board should deny the
instant merger application."
A Civil Aeronautics Board order of December 19, 1961 instituted a pro-
ceeding to be known as The Competitive Trunkline~~!vice Investigation. The
7
8
purpose of the investigation is to determine if competitive trunkline service
between Memphis, various intermediate points and New York and between
New Orleans, various intermediate points and New York should be modified
or suspended. Delta is a party to the investigation.
At the request of the Huntsville-Madison County Airport Authority,
Delta on June 8, 1962 filed for exemption authority to serve Huntsville, Ala-
bama as an intermediate point on Route 24 between Atlanta and Birmingham.
If granted, the authority sought will permit the operation of a daily round trip
jet flight from Huntsville to Dallas and Los Angeles, advancing the interest of
national defense and furthering our country's peaceful exploration of space.
The application now awaits a decision by the Civil Aeronautics Board.
The New York-Florida Renewal Case is a proceeding that involves the
issue of whether or not the Civil Aeronautics Board should renew the tem-
porary authority now held by Northeast Air Lines for operations between the
Boston/New York/Washington and Florida areas. Your Company has taken
no position in regard to the renewal of Northeast, but does seek the removal
of its certificate restriction which presently prohibits any through-plane opera-
tion between New York and Florida. In addition, Delta has proposed that it
be allowed to conduct a limited winter-season-only non-stop operation be-
tween New York and Miami should Northeast's authority not be renewed.
On August 9, 1961 the Civil Aeronautics Board instituted a general in-
vestigation (identified as the South American Route Investigation) of the air
service pattern between the United States and South America, tentatively con-
cluding 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. After granting your Company's request that its Route 114 to
Venezuela be excluded from this proceeding, a prehearing conference was
held in May, 1962. The Hearing Examiner in July, 1962 recommended to
the Civil Aeronautics Board that overall consideration of U. S. flag carrier
service to South America and Caribbean points move forward in three stages:
( 1) the determination of a route pattern between the United States and
South America, (2) the establishment of a Caribbean route pattern, and
( 3) a hearing for the selection of carriers to operate the above-created route
patterns. No action has yet been taken on the Examiner's recommendations.
During the past year the Civil Aeronautics Board decided the Buffalo-
Toronto Case, awarding to another carrier the authority sought by Delta. In
the Domestic Cargo-Mail Service Case, the Board in May, 1962 renewed
with modifications the operating rights of three of the four all-cargo carriers,
but rejected Delta's request for permanent authority to conduct all-cargo
operations between Houston and Dallas now performed under exemption
authority; your Company has applied for continuance of this authority.
On May 1, 1962, the Board lifted the restriction which prevented the
carriage of local traffic between Las Vegas and San Francisco, thereby per-
mitting Delta to provide jet service to Las Vegas on through flights between
the South/Southwest and San Francisco.
FEDERAL TRANSPORTATION TAX
CONGRESS REPEALED the 10% Federal tax on all transportation, but simul-
taneously imposed a 5% tax on all airline passenger transportation, related
to use of the Federal airways, both to be effective November 15, 1962. The
5% tax is slated to expire on July 1, 1963. On November 15, 1962 the trans-
portation tax will also be completely removed from the domestic portion of an
international trip by air if the scheduled connection time to the international
flight does not exceed six hours.
OUTLOOK FOR THE FUTURE
THE AIRLINE INDUSTRY is currently selling little more than 50% of its produc-
tion, at prices that are only 12% above the 1947-49 average as compared
to a 28% increase in the nationwide cost of living index and a 75% increase
in hourly wages. For a highly regulated industry, excessive competition re-
mains a troublesome problem. The industry has, however, demonstrated its
ability to successfully finance new equipment requirements, including the
third and fourth phases of jet equipment for some carriers. Airline traffic
so far this year is again showing year-to-year increases, some 10% above
1961 levels, following an extended period in which growth in airline traffic
was slight or non-existent.
The airlines and the Civil Aeronautics Board are bending their efforts
toward achieving economic results in keeping with the operational and
service accomplishments which have given this country the world's finest air
service. A further major step in this direction was taken last year through
the route awards granted in the Southern Transcontinental Service Case,
which achieved a larger measure of equality of opportunity for your Company
and other of the smaller carriers without creating destructive point-to-point
competition. Relief this fall from the full burden of the Federal tax on air
travel should prove somewhat of a stimulus to air travel. There are no cases
in process at the present time which threaten substantial increases in competi-
tion, except as previously mentioned, and the industry should now experience
a period of relative stability with respect to both routes and equipment.
President and General Manager
September 14, 1962
9
10
The Delta System-14J000_
Miles of Service
THE ROUTES OF Delta Air Lines play an increasingly important role in the Nation's air trans-
portation system. They serve the centers of government and finance in the East, the industrial
areas of the Midwest, the dynamic South and Southwest, the growing West Coast, and the vaca-
tion playgrounds in Florida and the Caribbean.
The extension of Delta's original Trans-Southern Route to the West Coast in 1961 created a route
system that is a vital link in _
this country's aerospace activities, providing transportation at jet
speeds for the missile launching areas of Cape Canaveral, Florida' and Vandenberg Air Force
Base, California, the engineering and manufacturing centers in Alabama; California, and Lou-
isiana, and the new Manned Space Flight Center at Houston, Texas.
12
DELTA AIR
Assets
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:
Other
Flight Property and
Equipment Equipment
Cost:
1962. $182,707,369 $19,653,278
1961 . 150,854,935 17,691,053
Reserves for depreciation:
1962 . 74,930,540 8,364,684
1961 . 63,932,487 7,527,069
Advance payments for new flight equipment
DEFERRED CHARGES, ETC.:
Preoperating costs, being amortized .
Advances for leased facilities, being amortized
Other deferred charges . . . . . . . . .
LINES.
1962
$ 11,064,884
4,997,204
12,196,296
1,874,887
2,218,860
1,298,872
86,108
$ 33,737,111
$ 406,390
$202,360,647
83,295,224
$119,065,423
4,637,352
$123,702,775
$
132,707
108,718
$ 241,425
$158,087,701
INC.
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
BALANCE SHEETS
JUNE 30, 1962 AND 1961
Liabilities and Stockholder Equity
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 . .
NON CURRENT LIABILITIES:
Long-term notes payable (Note 1) .
Other . . . . . . . . . .
DEFERRED FEDERAL I COME TAX . . . . . . .
STOCKHOLDER EQUITY:
Common stock, par value $3.00 per share-
Authorized 4,000,000 shares
Outstanding 1,700,000 shares at June 30, 1962, and
1,122,235 shares at June 30, 1961 . . . .
Capital surplus . . . . . . . . . . . . . .
Retained earnings { of which $18,380,679 is not pres-
ently available for cash dividends under terms
of credit agreements) . . . . . . . . . .
PURCHASE COMMITMENTS {Note 2)
The accompanying notes are an integral part of these statements.
1962
$ 5,227,273
14,840,320
1,933,093
2,480,678
1,376,150
729,774
$ 26,587,288
$ 57,272,727
608,898
$ 57,881,625
$ 19,999,794
$ 5,100,000
22,450,114
26,068,880
$ 53,618,994
$158,087,701
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
$ 14,125,993
$ 3,366,705
15,962,536
21,726,529
$ 41,055,770
$134,937,794
13
14
Statements of Income for the years ended June 30, 1962 and 1961
OPERA TING 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 preoperating costs .
Depreciation and amortization .
Total operating expenses . .
Income from operations before income taxes
OTHER EXPENSE ( INCOME l:
Interest expense (less capitalized interest on advances for
flight equipment-$375,000 in 1962 and $192,000 in
1961) . . . . . .
Other-net . . . . . .
Total other expense
Income before income taxes
PROVISION FOR TAXES ON INCOME:
Current Federal and state income taxes .
Def erred Federal income taxes . . .
Net income . . . . . . . . . . . . . .
SPECIAL ITEM-Profit on disposition of flight equipment, plus
applicable income taxes of $513,000 in 1962 and $205,000 in
1961 . . . . . . . . . . . .
Net income and special item . . . . . . . .
1962
$155,993,859
3,413,954
5,814,132
1,668,906
1,828,980
1,057,631
$169,777,462
$ 42,804,849
32,847,127
25,907,774
18,655,791
12,254,864
4,464,964
$136,935,369
$ 14,946,987
1,364,929
1,423,822
$ 17,735,738
$154,671,107
$ 15,106,355
$ 2,938,470
(75,925)
$ 2,862,545
$ 12,243,810
$ 762,000
5,817,000
$ 6,579,000
$ 5,664,810
1,319,787
$ 6,984,597
1961
$134,946,466
2,578,792
4,070,462
1,407,946
1,796,422
1,332,245
$146,132,333
$ 37,261,096
30,597,186
21,721,061
14,958,966
10,779,439
3,907,782
$119,225,530
$ 13,282,843
(716,898)
1,129,076
1,510,563
$ 15,205,584
$134,431,114
$ 11,701,219
$ 2,851,887
(118,180)
$ 2,733,707
$ 8,967,512
$ 2,038,000
2,804,000
$ 4,842,000
$ 4,125,512
526,324
$ 4,651,836
Statements of Capital Surplus & Retained Earnings
for the year ended June 30, 1962
Balance at beginning of year
Add:
Net income .
Special item -Profit on disposition of flight equipment, less
applicable income taxes of $513,000 .
Excess of net proceeds over par value of 203,687 shares of
common stock sold during year .
Deduct:
Cash dividends on common stock, at annual rate of $1.20 per
share
Transfer to common stock in connection with stock split ef-
fected in the form of a 33 % stock dividend distributed
on March 15, 1962 .
Balance at end of year ($18,380,679 of retained earnings is re-
stricted as indicated on balance sheet) . .
ARTHUR ANDERSEN & Co.
To the Board of Directors,
Delta Air Lines, Inc. :
CAPITAL RETAINED
SURPLUS EARNINGS
$15,962,536 $21,726,529
5,664,810
1,319,787
6,487,578
$22,450,114 $28,711,126
1,520,012
1,122,234
$22,450,114 $26,068,880
34 PEACHTREE STREET,N.W.
ATLANTA 3
Auditors'
Opinion
We have examined the balance sheet of Delta Air Lines, Inc. ( a Louisiana corporation) as of
June 30, 1962, and the related statements of income, capital surplus and retained earnings for the
year then ended. Our examination was made in accordance with generally accepted auditing stand-
ards, and accordingly included such tests of the accounting records and such other auditing pro-
cedures as we considered necessary in the circumstances. We had made a similar examination for
the year ended June 30, 1961.
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, 1962,
and the results of its operations for the year then ended, and were prepared in conformity with gen-
erally accepted accounting principles applied on a basis consistent with that of the preceding year.
Atlanta, Georgia
August 10, 1962.
16
Notes to Balance Sheet
1. LONG-TERM NOTES PAYABLE:
Long-term notes payable (unsecured) at June 30, 1962, were as follows:
Payable to banks-
Payable in quarterly installments of $1,250,000 to December, 1967, interest at 4% . . $27,500,000
Payable in 22 quarterly installments beginning May 1, 1963, interest to vary with
prime rate but not less than 4% nor more than 5%. (Loans may be increased
to $15,000,000 by March 31, 1963) . . . . . . . . . . . . . . . . 5,000,000
$32,500,000
Payable to insurance companies-
Payable in 14 semi-annual installments beginning April 1, 1968, interest at 6% . $25,000,000
Payable in 8 semi-annual installments beginning July 1, 1969, interest at 6%. (An ad-
ditional $5,000,000 remains to be borrowed by December 28, 1962, under this
agreement) . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
$30,000,000
Total long-term notes payable . . . $62,500,000
2. FLIGHT EQUIPMENT PURCHASE COMMITMENTS:
At June 30, 1962, the Company had outstanding commitments for the purchase of four Convair Model 880 air-
craft which were delivered in July, 1962. The Company was also committed to purchase one Douglas DC-8
aircraft in June, 1963, which is presently being operated under a lease agreement. The acquisition of these
aircraft, together with related spare parts and accessories, will require the outlay of approximately $17,500,000,
in addition to advance payments made as of June 30, 1962.
Subsequent to June 30, 1962, the Company entered into agreements for the purchase of one additional Douglas
DC-8 aircraft to be delivered in December, 1962, and the installation in 1963 of new fan-jet engines in the six
DC-8's acquired in 1959. These commitments involve an expenditure of approximately $17,000,000.
10 Year Operations Summary years ended June 30
1962 1961
Revenue plane miles ( 000) . 55,713 49,455
Revenue passengers carried . 3,768,707 3,569,778
Available seat miles ( 000) . 4,123,318 3,389,547
Revenue passenger miles ( 000) 2,393,991 2,034,047
Passenger load factor . 58.06% 60.01%
Available ton miles ( 000) 542,232 442,251
Revenue ton miles ( 000) . ....... 269,044 223,592
Overall load factor . . . . . . . 49.62% 50.56%
Percent of scheduled miles flown . 96.93% 97.14%
1960
49,405
3,241,511
3,027,450
1,757,208
58.04%
387,552
195,373
50.41%
97.03%
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
. 5
'
53 54 55 56 57 58 59 60 61 62
PASSENGER LOAD FACTOR
--
,-
>-
-
,-
I-
- - ...... I-
-
' rt
L [ ..... ,._ ..... ,._ ,-
-
rt_ .... - - - - -
53 54 55 56 57 58 59 60 61 62
AVAILABLE TON MILES REVENUE TON MILES
1959 1958 1957
46,022 44,972 41,671
2,988,241 2,728,220 2,572,982
2,622,740 2,479,428 2,206,408
1,554,630 1,408,857 1,299,482
59.28% 56.82% SB.90%
324,018 301,105 260,431
174,936 156,332 141,861
53.99% 51.92% 54.47%
97.04% 97.40% 97.62%
5.0
4.5
4.0
3.5
3.0
2.5
~ 2.0
1.5
1.0
.5
.0
2.75
2.50
2.25
2.00
1.75
1.50
1.25
1.00
53 54 55 56 57 58 59 60 61 62
REVENUE PASSENGERS CARRIED
~
.
~ 1-- '--
I - -
.__
1-- L-- L--
,__
I - - I - - I----
,___
L-- ~
.75
.50
.25
T ,__ ,__
I-- I - -
,__
I---
,__
1--
53 54 55 56 57 58 59 60 61 62
REVENUE PASSENGER MILES
1956 1955 1954
33,962 31,579 31~916
2,261,770 2,039,018 1,712,562
1,726,941 1,517,891 1,344,069
1,080,267 952,426 769,653
62.55% 62.75% 57.26%
207,416 182,997 162,345
118,544 104,927 87,251
57.15% 57.34% 53.74%
98.39% 98.79% 98.29%
-
~
~
<--
1953
20,672
1,119,688
776,157
507,713
65.41%
94,045
57,565
61.21%
98.83%
These data reflect operations of Delta Air Lines, Inc., and do not include the C&S system prior to May 1, 1953.
17
50 5.00
4.50
4.00
3.50
CJ) 3.00
cc:
:5
_J 2.50
0
0
CJ)
30 - - - - - - - - - - - - - - - - - -1
V.::<t---i
cc:
:5
6 25 - - - - - - - - - - ---.----fiN':t--F~--t'\'.'!'.t-----:
0
~ 2 0 - - - - - - ~ 2.00
1.50
1.00
.50
0 0
53 54 55 56 57 58 59 60 61 62 53 54 55 56 57 58 59 60 61 62
STOCKHOLDER EQUITY PER SHARE* EARNINGS AND DIVIDENDS PER SHARE*
10 Year Financial Summary years ended June 30
1962 1961 1960
Total assets ................ ............... $158,087,701 $134,937,794 $121,889,507
Current assets . . . . . . . . . . . . . . ............... 33,737,111 30,141,763 26,723,493
Current liabilities . . . . . . . . . . . . ............... 26,587,288 26,084,168 17,982,990
Net working capital .. ................ $ 7,149,823 $ 4,057,595 $ 8,740,503
Stockholder equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53,618,994 $ 41,055,770 $ 38,902,409
Stockholder equity per share* . . . . . . . . . . . . . . . . . . . . . $31.54 $27.44 $26.00
Shares of common stock outstanding at year end* .......... 1,700,000 1,496,313 1,496,311
Operating revenues
Passenger ........ . . . . . "
................ $155,993,859 $134,946,466 $109,671,406
Mail ................................. 3,413,954 2,578,792 2,140,292
Express .............................. 1,668,906 1,407,946 1,361,837
Freight ................................ 5,814,132 4,070,462 4,250,345
All other ............... ............... 2,886,611 3,128,667 2,767,345
Total revenues .......................... $169,777,462 $146,132,333 $120,191,225
Operating expenses (excluding depreciation and amortization) ... $136,935,369 $119,225,530 $101,708,515
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . 17,735,738 15,205,584 11,752,074
Total expenses .......................... $154,671,107 $134,431,114 $113,460,589
Operating ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.10% 91.99% 94.40%
Net non-operating revenue or ( expense) ................ $ ( 2,862,545) $ (2,733,707) $ (1,312,701)
Net income before taxes ......................... $ 12,243,810 $ 8,967,512 $ 5,417,935
Taxes on income ............. ................ 6,579,000 4,842,000 2,735,000
Net income ............ ................ $ 5,664,810 $ 4,125,512 $ 2,682,935 .,
Net income as % of revenues ................ 3.34% 2.82% 2.23%
Special item-profit on disposition of flight equipment ( after taxes) $ 1,319,787 $ 526,324 $ 156,148
Total income and special item . . . . . . . . . . . . . . . . . . . . . $ 6,984,597 $ 4,651,836 $ 2,839,083
Per share of stock outstanding at year end-i< . . . . . . . . . . . . $4.11 $3.11 $1.90
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,520,012 $ 1,346,681 $ 1,346,671
Dividends paid per share* . . . . . . . . . . . . . . . . . . . . . $.97 $.90 $.90
18 * Adjusted to reflect 33% stock split paid March 15, 1962 and 25% stock dividend paid June 29, 1956.
200
180
160
140
120
100
80
60
40
20
0
---
-
,-
-
cir -
-
REVENUES
EXPENSES
,-
,-
- -
- -
- -
,~
,_
-
-
- -
,_
,_
- - - -
- - - - -
- - - - -
- - - - -
.... - - -
53 54 55 56 57 58 59 60 61 62
TOTAL REVENUES AND EXPENSES
1959 1958 1957
$ 95,426,900 $80,941,307 $66,931,027
23,947,879 15,453,600 16.773,180
13,684,994 9,701,837 11,092,231
$ 10,262,885 $ 5,751,763 $ 5,680,949
$ 37,409,576 $34,019,718 $33,965,765
$25.01 $22.74 $22.70
1,496,295 1,496,060 1,495,925
$ 94,061,577 $80,217,086 $71,873,125
2,151,953 1,795,885 1,636,218
1,206,184 952,510 1,015,947
3,879,389 2,954,896 2,230,512
2,506,342 2,252,318 1,840,201
$103,805,445 $88,172,695 $78,596,003
$ 85,549,826 $76,276,726 $65,782,059
8,870,785 9,354,358 6,728,875
$ 94,420,611 $85,631,084 $72,510,934
90.96% 97.12% 92.26%
$ (553,612) $ (599,865) $ (556,423)
$ 8,831,222 $ 1,941,746 $ 5,528,646
4,769,000 1,010,000 2,990,000
$ 4,062,222 $ 931,746 $ 2,538,646
3.91% 1.06% 3.23%
$ $ 131,409 ;n; 82,939
$ 4,062,222 $ 1,063,155 $ 2,621,585
$2.72 $.71 $1.76
$ 673,270 $ 1,009,791 $ 1,346,109
$.45 $.67 $.90
10 r--------------------
9
8
- FROM OPERATIONS
FROM Al RCRAFT SALES
- CJ)
c:c:7 , ---------------~~~
j
- g 6
r-- - - - - - - - - - - - - - - -
LL.
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-
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-
-
- 0
1956
$54,638,388
15,140,819
11,654,690
$ 3,486,129
$28,357,864
$21.35
1,328,292
$60,557,924
1,468,247
1,045,567
2,020,061
1,712,827
$66,804,626
$53,168,806
5,661,358
$58,830,164
88.06%
$ (536,266)
$ 7,438,196
4,069,000
$ 3,369,196
5.04%
$ 1,308,770
$ 4,677,966
$3.53
$ 922,990
$.72
53 54 55 56 57 58 59 60 61 62
TOTAL EARNINGS
1955 1954 1953
$54,049,882 $48,089,997 $37,966,469
18,762,696 15,888,546 14,706,498
12,686,444 8,861,111 9,192,041
$ 6,076,252 $ 7,027,435 $ 5,514,457
$19,845,898 $16,233,227 $15,647,278
$17.99 $16.23 $15.65
1,103,188 1,000,000 1,000,000
$53,966,525 $45,144,949 $28,946,479
1,462,684 1,723,703 1,131,578
917,609 844,483 550,305
1,844,168 1,766,266 1,044,338
996,975 854,481 665,102
$59,187,961 $50,333,882 $32,337,802
$47,047,051 $43,021,159 $26,641,944
6,444,981 5,275,152 2,259,784
$53,492,032 $48,296,311 $28,901,728
90.38% 95.95% 89.377,
$(1,376,754) $ (1,359,987) $(1,345,957)
$ 4,319,175 $ 677,584 $ 2,090,117
2,412,000 394,000 688,000
$ 1,907,175 $ 283,584 $ 1,402,117
3.22% .56% 4.34'/c
$ 258,850 $ 1,022,365 $ 2,756,561
$ 2,166,025 $ 1,305,949 $ 4,158,678
$1.97 $1.31 $4.16
$ 720,309 $ 720,000 $ 575,000
$.72 $.72 $.60
These data reflect operations of Delta Air Lines, Inc., and do not include the C&S system prior to May 1, 1953. 19
20
DELTA'S STORY TO THE PUBLIC
A selection of representative ads which won the
1962 Socrates award for the highest rated news-
paper advertising for all transportation.
ATTEltTIOlt, JET FAl/8/
meet Deltas New Faufets The voice Is friendly, the unlce swift
--~-
(WJlllilllles111on,w[aJglia[E-l-fnm-~lm-nlSl!f-
_
... _ ...... _
.. =--:""....:::=.":""--===-- a--.... : . ~ ~ ~ - -
--:-"~.:.-;:.-...-::
------------
: : : - . : ~ .. IIWlLU&S
...,i::ziii:---==-i.;:::::=
4~ -:o-.::
DELTA TICKET OFFICES
City Ticket Offices Reservation Telephone
ALEXANDRIA Lobby, Bentley Hotel. . . . ........... . Hillcrest 2-4471
ASHEVILLE Lobby, Battery Park Hotel ....... . .. . .... AL pine 2-7601
ATLANTA Fulton National Bank Bldg.; Piedmont and 1.
521_
3000
Biltmore Hotels; Merchandise Mart Bldg. f
AUGUSTA Richmond Hotel . . . . . . . . . . . . . .... P Ark 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 Ave., North .... .. .. . .... . ........ 592-9601
BRUNSWICK Airport . . . . . ... .. . ...... MEirose 8-2531
CARACAS, YENZ. Edificio Roraima. . . . . . 339-349
CHARLESTON Lobby, Francis Marion Hotel . . SHerwood 4-2567
CHARLOTTE Lobby, Selwyn Hotel. . . . . . 392-4321
CHATTANOOGA Lobby, Hotel Patten . . . .. 622-8336
CHICAGO 67 East Monroe, Conrad Hilton Hotel } . Flnancial 6_5300
and 1629 Orrington in Evanston
CINCINNATI Shernton-Gibson, Netherland-Hilton Hotels . .. . 241-1700
CLEARWATER . . . . . . . . . . . .. 446-8318
COLUMBIA Lobby, Wade Hampton Hotel. . . .. . ...... 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) ; Lobby, }FL t d 7 6161
Marriott Motor Hotel; Lobby, Statler Hotel ee woo
DAYTON Biltmore Hotel . . . . . . . ... . . TWinoaks 8-3651
DETROIT 1205 Washington Blvd. and Lobby, } ... . WOodward 5-3000
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
HENDERSONVILLE
HOT SPRINGS Airport.
HOUSTON Rice and Shamrock-Hilton Hotels.
INDIANAPOLIS Lobby, Claypool Hotel . ... .. ... .
JACKSON Heidelberg Hotel .
JACKSONVILLE Hotel Robert Meyer .
KANSAS CITY Muehlebach Hotel .....
.. OXford 3-7211
. . NAtional 3-1671
... . CApitol 5-1361
... MElrose 7 -1554
.. Fleetwood 2-0861
Elgin 3-3171
.. . . GRand 1-7733
..... . . 577-6611
KNOXVILLE Farragut Hotel .
LAS VEGAS Sahara Hotel.
LEXINGTON Airport .
. . . . . . . . . . . . . . REgent 3-1661
LITTLE ROCK Lobby, Coachman's Inn.
LOS ANGELES 529 W. Sixth Street.
BURBANK . . . ..... . .
BEVERLY HILLS Beverly Hilton Hotel .
HOLLYWOOD Hollywood Roosevelt Hotel .. . .
.. 4-5569
. FRanklin 5-9111
. . . MAdison 0-1050
.. STate 2-7551
. . CRestview 3-1813
. MAdison 0-1050
5 Jets dally to
EWYORK
................. -.......... ..
....
~- :
- .. ..
~!:?-~.b'!~
We're expecting 124 for dinner
on this DELTA JET
More Jets South from Detroit
than any other airline!
3/etsdaily!
MIAMI
i....uo-,1t-1GM,.
OnNtopJ,ts!
[A}!.~ _
Non-stopstwic1daify!
ATLANTA NEWORLEANS
,.arn.oc., .. uo- U 2M- .,. i 1D _ . ... - .
Ahernoonl1tto#ewOrleanscontinuuthnitoDanasfortbe011fy
tbru-plaMJetsmictfromDetrttoBit"O"
PluaCom11111tar.Jet~toCirdnnatiOtlafutOeltaflighbtolndianapi1is
Columbu1Dl)'IDnLouiswHleOnandoTolldoFlWIYftllilemtmJacxson
ffinn---
City Ticket Offices Reservation Telephone
LONG BEACH Jurgens Trust Building. . . . . . . . .. NEwmark 9-6950
PASADENA 700 E. Colorado Blvd .. ...... .. .... . . . SY camore 5-0449
LOUISVILLE Shop 102, Starks Bldg. . . . . . 584-3142
MACON Lobby, Hotel Dempsey. . . . . . . . . . . . . . . . . . 788-3363
MARACAIBO, YENZ. Edificio lcuma, Ave. 5 de Julio ............ 75-281
MEMPHIS Peabody Hotel . . . . . . . . . . . . . . . . . . . . . WHitehall 8-2641
MERIDIAN Airport . . . . ........ . ... . ......... . . .... .. 482-3141
MIAMI Columbus Hotel; Ashe Bldg., U. of Miami .. FRanklin 3-0441
MIAMI BEACH 1632 Collins Ave. and 230 71st Street .. FRanklin 3-0441
MILWAUKEE 718 N. Plankinton Ave. . .. Division 2-4675
MONROE Lobby, Frances Hotel. . . . .. ....... . . . ... F Airfax 3-5116
MONTEGO BAY, JAMAICA Casa Montego Hotel. 2811
MONTGOMERY Lobby, Jefferson Davis Hotel. ..... 264-7313
NEW ORLEANS Sheraton-Charles and Roosevelt Hotels . . . . 524-8592
NEW YORK Rockefeller Center; Airlines Building; 100}
Broadway; Lobby, Statler Hotel; East Side
Terminal; West Side Terminal; 635 Madi- Plaza 1-6600
son A venue; 200 Livingston St., Brooklyn;
35 Mamaroneck Ave., White Plains
WESTCHESTER. . . . . . . . . . . . . .. White Plains 6-1626
NASSAU AND SUFFOLK . .Ivanhoe 1-6811
NEWARK 15 Commerce Street. . . . Mitchell 2-2228
ORLANDO Lobby, San Juan Hotel. . . . CHerry 1-4531
PADUCAH Airport . . . . . . ........ . .. . .. .. . . .. 443-1732
PHILADELPHIA Bellevue-Stratford, Sheraton Hotels .. SAratoga 7-9900
PORT ARTHUR Airport . . . . . . . . . . . . . . . RAndolph 2-3471
PORT AU PRINCE, HAITI 2 Rue Du Fort Per. 3805
SAN DIEGO U.S. Grant Hotel. . . . . . . . . . . . . . . . . ... CYpress 7-4621
SAN FRANCISCO Sheraton-Palace Hotel; } ... EXbrook 7-3242
Downtown Airline Terminal
OAKLAND 1922 Broadway . . . . . . ........... .. TEmple Bar 4-6680
SAN MATEO... . . ....... .. ................. Diamond 2-1434
SUNNYVALE . . . . . ........ .. . REgent 6-1660
SAN JUAN, PUERTO RICO Hotel La Concha; 311 Recinto Sur .. 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) . .223-4651
TOLEDO Commodore Perry Hotel Arcade. . . 244-8661
TULSA Alvin Hotel, 627 S. Main. . . . . . . . . . . . LUther 2-0202
WASHINGTON, D. c. 1605 K Street, N. W. and } .. Dlstrict 7-9600
Washington Hotel
WEST PALM BEACH Town House Motor Hotel. . . .. .833-6604
DIRECTORS
R. W. FREEMAN, Chairman
New Orleans, Louisiana
C.H. DOLSON
Atlanta, Georgia
JOHN R. LONGMIRE
St. Louis, Missouri
TODD G. COLE
Atlanta, Georgia
EMERY FLINN
Miami, Florida
R. S. MAURER
Atlanta, Georgia
R. W. COURTS
Atlanta, Georgia
EDWARD H. GERRY
New York, New York
WINSHIP NUNNALLY
Atlanta, Georgia
CARLETON PUTNAM
Washington, D. C.
GEORGE M. SNELLINGS, JR. C. E. WOOLMAN
Atlanta, Georgia
Monroe, Louisiana
OFFICERS
C. E. WOOLMAN
President and General Manager
TODD G. COLE
Executive Vice President-
Administration and Assistant Secretary
W. T. BEEBE
Vice President-Personnel
T. M. MILLER
Vice President-
Traffic and Sales
ROBERT L. GRIFFITH
Vice President
C.H. DOLSON
Executive Vice President-
Operations
R. S. MAURER
Vice President-
Legal and Secretary
ROBERT OPPENLANDER
Comptroller and Treasurer
CHARLES P. KNECHT
Assistant Vice President-
Sales
PAUL W. PATE
Assistant Vice President-
Properties
R. H. WHARTON
Assistant Vice President-
Personnel
C. BOYCE WILDER
Assistant Vice President-
Operations-Technical
CATHERINE FITZGERALD
Assistant Treasurer
J. R. HOWELL
Assistant Treasurer
TRA 1SFER AGE TS: The Citizens & Southern National Bank, Atlanta, Georgia
The First ational City Bank, New York, New York
HUGH H. SAXON
Assistant Treasurer
REGISTRARS: Trust Company of Georgia, Atlanta, Georgia
Morgan Guaranty Trust Company, ew York, New York
COMMON STOCK: Listed on the New York Stock Exchange A DITORS: Arthur Andersen & Co.
ANNUAL MEETING: October 25, 1962, Monroe, Louisiana
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DELTA AIR LINES. INC. GENERAL OFFICES ATLANTA AIRPORT. ATLANTA, GEORGIA