Delta Air Lines annual report 1963

DELTA AIR LINES, INC. ANNUAL REPORT 1963
co PARAT VE S MMARY OF OPERATIONS YEARS ENDED JUNE 30
Dollars expressed in thousands except per share figures
ratina Re nue ................. . .................. . .
ratin E 'pen cludin depr ciation) ................ .
rating Income ( luding depr ciation) . . .......... .... . .
Depr ciation and amortization xp n e . .. ... ... . .. . .. .
Operatin Income after depreciation .... .. ................. .
et Income from Operations after Ta es and other charges ..... .
Total Earning .... . ... . ......... ...... .............. .
hares Out tanding at ear end* ............ . ....... . . . ... .
Earnings Per hare* . . . . . . ......... . ... . ................. .
Total tockhold r Equit ................................... .
tockholder Equit Per hare* ................ . .... .. ... . ... .
Revenue Passengers arried ....... . ......................... .
ailable eat Miles (000) ............................ . ..... .
Re enue Passenger Miles (000) .................... . ......... .
Passenger Load Factor ..................................... .
* djusted to reflect 50 stock split March 4, 1963
RACING THE SUN
DELTA AIR LINES' Ship 801 , shown on facing page and
the first Douglas DC-8 to be placed in scheduled com-
mercial operation, was a star performer in scientific cov-
erage of the Solar Eclipse on July 20, 1963. Equipped
with spectrographs, special cameras, telescopes and other
astronomical instruments, Ship 801 carried some 60
scientists, including Astronaut Scott Carpenter. on a
520-mile chase of the eclipse across the Canadian North-
west. The mission was under the sponsorship of DouGLAS
AIRCRAFT COMPANY and NATIONAL GEOGRAPHIC SocIETY.
1963
$2 10,073 $169,777
$157,783 $136,935
$ 52,290 $ 32,842
$ 19,839 $ 17,736
$ 32,451 $ 15,106
$ 13,824 $ 5,665
$ 13,824 $ 6,985
2,550,000 2,550,000
$5.42 $2.74
$ 64,893 $ 53,619
$25.45 $21.03
4,606,367 3,768,707
4,953,787 4,123,3 18
3,004, 157 2,393,991
60.64% 58.06%
2
P ESIDENT'S MESSAGE
THE FI c L YE R end d Jun 30 1963 wa on of signifi-
cant grm th and pro perity with our ompan attain-
ing ne heights in traffic revenue and arnings.
Your ompan ' j t fl et was incr as d to 26 aircraft
\ ith the deliver of one D -8 Fanjet and four Con air
880 s. Delta was the first to fl the D -8 and the first to
fly the onvair 880 in comm rcial ervice. Your Com-
pany ha now registered anoth r distincti e first when on
pril 25 1963 the world's initial ord r for the short-range
D -9 twin-jet was placed with Douglas ircraft Com-
pan . ontinued expansion of th jet fleet permitt d a
20 increase in the production of available seat miles
and a record of 3,004,157,000 re nue passeng r miles.
On March 4, 1963 our Company broadened its
equity base b a common stock split effected in the form
of a 50 stock dividend. et earnings from operations,
after all charges and taxes, were $13,824,000 ($5.42 a
share). tockholder equity rose $11,274,478 during the
ear to 64,893 4 72 ($25.45 a share).
ignificant factors in achieving profitable operations
for the year were:
( 1) The interruption of service by a principal
competitor during the early part of the fiscal
year, resulting in extraordinary revenues for
the period;
(2) The airline industry's marked gains in traffic
that are closely related to continued improve-
ment of the national economy;
(3) A steady implementation of southern trans-
continental service and continuing develop-
ment of these markets;
( 4) The increasing popularity of jet travel with
resulting upward trends in traffic;
(5) An easing of prior burdens associated with
the costly introduction and expansion of pure
jet service.
June 11, 1963 marked the completion of the second
year of Delta's southern transcontinental service. The
current rate of annual revenues from these operations
slightly exceeds the $31,000,000 predicted by the Civil
Aeronautics Board at the time of the route award.
REVENUES
OPERATING REVE UES were a record $2 10,073,000 with
your Company ent ring the "Two Hundred Million
Dollar Circle" for the first time and only four years
subs quent to the initial One Hundred Million milestone.
Revenue passenger miles reached 3,004,157,000, com-
pared with the preceding year's 2,393,991,000, a 25%
increase that accounted for $38,000,000 of the total pas-
senger rev nues of $191,355,000. Revenue passengers
carried were a record 4,606,367, up 22% over fiscal year
l 962's 3, 768,707.
ignifican t gains were achieved in cargo operations
with revenues from mail, freight and express totalling a
record $15,068,000, a gain of $4, 171,000.
Of considerable prominence in the impressive gains
registered in southern transcontinental markets is your
Company's linking of major space centers in California,
Texas, Louisiana, Alabama and Florida. The pro-
grammed growth of the country's space effort should
insure acceleration of this phase of the cargo operation
in the years ahead.
EXPENSES
WHILE TOTAL OPERATING EXPENSES increased 15% to
$177,622,000, vigorous efforts to combat higher cost
levels resulted in a continuing downward trend in unit
costs. The cost of an available seat mile dropped 5% to
3.56 per available seat mile and available ton mile
costs dipped 4%.
The increased expenses were attributable to the oper-
ation of 20% more available seat miles and the produc-
tion of 20% more available ton miles. Employee salaries
and wages, reflecting general increases and the addition
of 474 employees during the year, accounted for the
largest dollar rise, $8,891,000 (up 14%). Other principal
increases included: Passenger Service up 20% to
$14,736,000; Maintenance up 14% to $37,5 16,000;
Promotion and Sales up 17% to $21,801,000 and Aircraft
and Traffic Servicing up 14% to $29,485,000.
Twelve Months Ended June 30, 1963
SOURCES
(000)
Passengers and
their Excess
Baggage . . . . . $193,475
Mail ... . 4,483
Freight and
Express. . . . . I 0,585
Other . . . . . . . . 1,530
Total..... . . $2 10,073
DISTRIBUTION
(OOO)
Employee salaries
and related
costs 1
....... $ 74,322
Depreciation .. . . 19,839
Gasoline and Oil . 23,261
Maintenance
materials .. .... 12,623
Food and supplies
for passengers . 7,217
Rentals and
Landing Fees .. 7,080
Advertising ...... 5,91 I
Communications . 3,957
Other operating
costs ...... .. 20,771
Capital Costs
(Interest and
Dividends) .. 8,517
Taxes ....... ... 17,851
Retained for use
in business .... 8,724
Total ....... $210,073
1 Salaries, travel, employee welfare
and payroll taxes
6.01
344~
3.37~
2.8 1
I.BB ~
9.89 ~
4.06 ----
8.50~
4.15~
100.00
Delta's Reservation Center in Atlanta
AIR LINES
Delta Fanjet is fueled during night stop
U)
a::
~
...J
0
Cl
IJ..
0
U)
z
0
::J
...J
~
~
4
250
225
200 ~ - -
175
150
125
100
75
50
25
0
54 55 56 57 58 59 60 61 62 63
27.5
25.0
I
22.5 t-
. - -- - -- - - - - -- - - - - - -- - - - - '
20.0 ' - - - - - - - - - - - - - - - - - - ~
2.5
Depreciation and amortization expenses rose 12%
from $17,736,000 to $19,839,000-a normal increase
associated with the addition of one DC-8 Fanjet and
four Convair 880 jetliners during the year. All preoper-
ating expenses associated with jet operations and the
introduction of service to the West Coast were fu lly amor-
tized in the previous fiscal year.
EARNINGS AND DIVIDENDS
OPERATING INCOME for the fiscal year was a record
$32,451,000, an increase of 115% over the $15,106,000
recorded the previous year. Net income before taxes
15.0
13.5
12.0
- FROM OPERATIONS
FROM AIRCRAFT SALES
VI
Q:: 10.5
:5
-'
8 9.0
I.I.
0
VI
7.5
z
0
::::; 6.0
-'
:i
~ 4.5
3.0
1.5
0
54 55 56 57 58 59 60 61 62 63
5.50 - - -- - - - - - - - - - - - - - - -- - -
5.00
4.50
4.00
3.50
u, 3.00
~
0
2.50
Cl
~ 2.00
1.50
1.00
.50
0
___ - FROM OPERATIONS
-FROM AIRCRAFT SALES
- - -
DIVIDENDS
-
-
-
--0 -
I
54 55 56 57 58 59 60 61
-
-
- - -
62 63
showed a slightly sharper increase, up from $12,244,000
to $29,296,000.
Net earnings, after all charges and taxes, were
$13,824,000, the highest in your Company's history, equal
to $5.42 for each of the 2,550,000 shares outstanding at
year end . For the previous year, earnings of $5,665,000
were reported plus an additional profit of $1,320,000
realized from aircraft sales. The total was $6,985,000,
equal to $2.74 per share after adjustment for the 50%
stock split of March 4, 1963.
In addition to four regular cash dividends of 30 per
share paid on September 1, 1962, December 1, 1962,
March I, I 963 and J une 1, 1963, a special dividend of
15 a share was paid on March 1, 1 963. Cash dividend
payments aggregated $2,550,000, compared to a total
of $1,520,012 in the previous fiscal year. The Board
of Directors also announced its intention to continue the
usual quarterly cash dividend of 30 a share on the in-
creased number of shares outstanding after the 50%
stock dividend.
PERSONNEL
IN NOVEMBER, 1962, Mr. Alan S. Boyd, Chairman of the
Civil Aeronautics Board, publicly commended your
Company's personnel when he commented :
" . . . The CAB has j ewer complaints about Delta
than any other (airline) .. . "
Mr. Boyd's remarks, which attracted national atten-
tion, were based on present and past performances that
are the results -of considerate, courteous and untiring
benefit of employees reaching a new high of $74,322,000.
These payments contribute substantially to the economy
of the cities in 22 states and the Caribbean area served
by Delta Air Lines.
Your Company provides for its employees the benefits
of an employee credit union, an outstanding comprehen-
sive medical and general insurance program, a liberal
policy of " space availa ble" free air transportation, an
adequate retirement income plan and a substantial recre-
ational program.
Prior to the close of the fiscal year ending June 30,
1963, Mr. Todd G . Cole tendered his resignation as an
officer and Director of your Company.
On J uly 25, 1963, the Board of Directors elected Mr.
Earl D. Johnson as Executive Vice President and a Direc-
tor of Delta Air Lines. Mr. Johnson, former President
and Vice Chairman of the Board of Directors of General
AS OF JUNE 30
:r;
1963 1962 1961
O ver 20 years .. .. . . . . .. 362 269 199
15- 20 years . . ...... .. . . ... 1,083 1,050 880
10- 15 years . . ..... . ........ 1,048 1,030 968
5- 10 years . . ........... ... 1,605 1,870 1,656
1- 5 years . . .............. 3,872 3,287 3,132
Less than one year ..... . . . . . 1,287 1,277 1,455
efforts by every employee in dealings with customers,
suppliers, neighbors and the general public.
Of the 9,257 men and women of Delta Air Lines at
the 1963 fiscal year-end, 4,098 ( 44%) had five or more
years of experience with your Company. The experience
and competence of these employees make a major con-
tribution toward the maintenance of the high standard
of courteous service that has become a recognized char-
acteristic of your Company.
General wage and salary scales again were adjusted in
April, 1963. This, with the addition of 474 employees
during the year, resulted in total payments to or for the
9,257 8,783 8,290
D ynamics Corporation, has a wide background of ex-
perience in the aviation industry, finance and govern-
ment in positions of leadership and management. The
addition of Mr. Johnson, I am confident, will broaden
Delta's management team to a degree toward which I
have been working for some years.
REGULATORY MATTERS
American Airlines-Eastern Air L ines M erger: This proceeding
expired a bruptly on June 21 , 1963 with the request of
American Airlines to terminate the merger agreement,
which followed by one day the Civil Aeronautics Board's
5
6
tentative d i ion to di appro th dom ti pha e f
th propo
\ ith t m ri an- ast rn m rg r appli ation rased
your ompan ' b pa ed a mo t i nifi ant re ulator
ob tacl a proc din v hich had it be n appro ed
would have produc d an appallin cone ntration of
pmver \ ith a re ulting comp titi imbalan e of th
trunklin industry.
ervice to Huntsville: n initial d c1 10n u d b a
ivil eronauti Board H aring E amin r on pril 23
3 recommended that our ompan be authorized
to pro\'ide direct rv1 from Hunt ill w t to Dalla
and Lo l d ea t to tlan ta Jack on ille and
Orlando. of thi r comm ndation b the ivil
ero t" l identif Delta with all th na-
tion' i nt r in alifornia T xa Loui -
iana, is ama and Florida.
Final deci ion in this proceeding i xpected oon with
Delta in po ition to inaugurate Hunt ill r ice no later
than early fall.
The Competitive Trunklme ervice Investigation: Public
hearing were h Id in Birmingham and ew Orleans dur-
in J anuar ', 1963 on thi proceeding in tituted b a Civil
eronautics Board order of December 19 1961 . Purpose
of the in estigation i to determine if competitive trunk-
line ervice between ew Orleans and ew York via
various intermediate points and between Memphis and
ew York via variou intermediate points should be
modified or suspended. Your ompany s pos1t1on is to
protect its present operating authorit to provide direct
DELTA AIR LINES introduces the Douglas-built
DC-9, the most advanced short-range twin-jet.
First in the world to order the short-range air-
craft, Delta will place the aircraft in scheduled
operation in early 1966. The DC-9 will be the
third member of the commercial jet family to be
introduced by your Company. Delta will benefit
greatly from experience with component parts
already tested and proved in millions of miles of
service with the larger DC-8's.
er betw en ew
thoriz d int rmediat
rleans and
points. Th
H aring Examin r initial decision.
ew York via au-
as is awaiting the
outh American Route Investigation Case: Instituted by
th i ii eronautic Board, the investigation of the air
s rvice b twe n th nited tates and ou th America
has progr ssed very slowly du to the enormous scope and
ompl xity of th proceeding. The Civil Aeronautics
Board has not finalized the manner in which the case
should be pro cuted. Your Company's request for the
xclu ion of its Rout 114 to Venezuela was granted early
in the proceeding.
Jamaican Authority: pproval was grant d to Delta by
the Jamaica Air Transport Licensing Authority on April
3, 1963 to operate to and from the east of Jamaica, in-
cluding Dominican Republic, Haiti and Puerto Rico,
eff ectiv ovember 1, 1963 and for a period of five years
or until consummation of a United States-Jamaica bilat-
eral air agreement, whichever occurs sooner. Delta's only
previous Jamaican authorization was an intermediate
stop on ew Orleans-Caracas flights. The award is the
culmination of 14 years of effort by your Company.
ince 1949, Delta has held Civil Aeronautics Board au-
thority but th United States Department of State had
been unable to obtain operating rights from the United
Kingdom. Shortly after obtaining its independence, J a-
maica acted promptly and affirmatively on Delta's appli-
cation, thereby adding considerable potential and flexi-
bility to the California-Puerto Rico service.
Delta's DC-9 Twin-Jet
SERVICES
THE PURE JET AIRCRAFT continues to attain new pinnacles
of popularity with the public as evidenced by a 60% in-
crease in jet revenue passenger miles over the preceding
year.Jet aircraft produced 68% of system seat miles for
the 1963 fiscal year and 70% of the revenue passenger
miles, compared with the previous year's 52% of system
seat miles and 55% of revenue passenger miles.
Services continued to expand with the addition of
Las Vegas, Newark, Jacksonville, and Washington,
through the new Dulles International Airport, to the list
of cities receiving Delta jet service, which at the year's
end totalled 26. Planning was begun for the inauguration
of jet service to Jackson and Shreveport in the fall of 1963.
Popularity of tourist travel was even more evident
during the year. A slight increase in jet first-class revenue
passenger miles was offset by a 98% increase in jet tourist
revenue passenger miles. Systemwide, however, first-class
declined 6% in revenue passenger miles and tourist
showed a 53% increase. This continuing shift to tourist
can be attributed in part to a fare structure that creates
significant dollar savings on long trips that are dispro-
portionate to the service differentials.
Delta and Pan American World Airways are nego-
tiating to provide the first through-plane service on an
interchange between New Orleans, Atlanta and Europe,
subject to Civil Aeronautics Board approval. The pro-
posal calls for a daily roundtrip between New Orleans
and Atlanta via Washington to London four times a week
and to Paris three times a week, using Pan American
DC-8 jet aircraft. Service is tentatively planned to com-
mence in the spring of 1964.
A number of "promotional" type passenger fares
were introduced by the airline industry during the year.
While many of these merely added to the complexity of
the domestic fare structure, there are two which can be
credited with the generation of additional traffic: (1)
Military Discount and (2) an amended Family Plan.
Military personnel in uniform and traveling on leave are
now carried as standby passengers at a 50% discount.
This traffic is believed to be largely new business, u tiliz-
ing seats that would otherwise have been empty. The in-
creased discount allowed to Family Plan passengers and
the extension of the plan to six days a week increased
first-class utilization and resulted in additional revenues
and passenger traffic.
Some improvement was noted in your Company's
international operation. Frequency of service to Sanjuan
from California, through the New Orleans gateway, was
increased to five flights weekly, and once-a-week service
was begun from Houston to Montego Bay and Caracas.
en
z
0
:J
__,
~
~
cn
er:
j
0
Cl
LL
0
U)
z
0
:J
....J
~
~
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
240
220
200
180
160
140
120
100
80
60
40
20
0
- FIRST CLASS
TOURIST
62 63" 62 63
PROPELLER JET
- - COST
--NET BOOK VALUE
DEPRECIATION
59 60 61 62 63
7
8
FLIGHT EQUIPMENT
P 1 \\'ER LMI ATED durin th fi al ear to provid
D !ta, ith th di tinction f intr du ing th third mem-
b r of th ' omm r ial j t famil . " Your om pan will
be th fir t airlin in the v rld to put the Douala D -9,
the m t ad\anced hort-ranae t, in-j t in schedul d
peration, para!! lina' fir t " a ociat d with the Doug-
la D -8 and on air 880 j t .
he deli\er ' of four onvair 880 and one Douglas
D -8 Fanj t durina the year increa ed your Company s
jet fl et to 2 aircraft. Th four onvair 880 valued at
17 000,000, were deliv red during July, makina it a
record month from a monetar tandpoint for the accept-
ance of aircraft. Four additional D -8 Fanj t are sched-
uled for deli ery two in th la t 60 days of th 1963
cal ndar year one in M ay and one in ov mber 1964.
odification of th first six D -8 to fan ngines was
beaun in ay at an overall co t of l 0,000 000. The pro-
gram will be completed in October, allowing for a DC-8
winter chedule of all Fanj t model . Principal advan-
taae of the larger and more powerful Fanjet engines are
areat r operating economy improved runwa p rform-
ance, increas d rate of climb and ability to maintain a
more con tant inflight peed .
FU DS PROVIDED BY:
et 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 ...... ...... ..... ..... ....... .
s of June 30, 1963, Delta's operating fleet consisted
f 82 aircraft:
NUMBER OF
MANUFACTURER MODEL NUMBER SEATS
Douglas DC-8 J et 10 126
Convair 880 J et 16 92
Douglas DC-7 / 7B 19 75
Dougla DC-6 11 67
on air 340/ 440 21 44
Curtiss C-46 5 Cargo
with a net book value of $124,764,000.
ELECTRONIC RESERVATIONS SYSTEM
VIRTUALLY ALL PROGRAMMING for the Sabre electronic
reservation system was complete at the fiscal year's end.
Testing of the more than 700 computer programs neces-
sary to process reservations inquiries was under way.
The Sabre system, built by International Business
Machines Corporation and scheduled for late-1963 de-
livery, will provide your Company's customers with the
ultimate in reservations service. Final tests of computer
components and programs will be completed by the end
of 1963 and the first office will be "Sabre-ized" soon
thereafter. All Delta offices are scheduled for Sabre con-
version by the end of l 964.
All amounts in thousands
TOTAL FOR FISCAL YEARS ENDED JUNE 30
FIVE YEARS 1963 19 6 2 19 61 1960 19 59
$ 30,360 $13,824 $ 5,665 $ 4,126 $ 2,683 $ 4,062
5,241 1,960 699 2,582
25,535 12,208 5,882 2,545 2,780 2,120
75,887 19,839 17,736 15,922 12,753 9,637
7,099 7,099
45,436 5,436 10,000 5,000 20,000 5,000
2,762 1,394 594 515 81 178
$192,320 $52,701 $48,936 $28,807 $40,879 $20,997
$138,911 $33,821 $35,883 $20,941 $34,306 $13,960
3,487 130 763 2,244 350
12,875 2,467 2,489 4,477 2,173 1,269
18,190 5,463 5,227 5,357 2,143
7,435 2,550 1,520 1,346 1,346 673
2,251 627 595 606 189 234
$183,149 $44,928 $45,844 $33,490 $42,401 $16,486
Net Change in Working Capital ..................... +$ 9,171 +$ 7,773 +$ 3,092 -$ 4,683 -$ 1,522 +$ 4,511
5,752 7,150 4,058 8,741 10,263 5,752
$ 14,923 $14,923 $ 7,150 $ 4,058 $ 8,741 $10,263
Working Capital at beginning of period .... ... ... ... .
Working Capital at end of period ................... .
CAPITALIZATION AND Fl NANCI NG
ON JANUARY 24, l 963 your Company's Board of Direc-
tors declared a split of the common stock, to be effected
in the form of a 50% stock dividend and distributed on
March 4, 1963 to stockholders of record February 8,
1963. Stockholder equity at fiscal year-end amounted to
$64,893,472 or $25.45 for each of the 2,550,000 shares
then outstanding which compares to $53,6 18,994 and
$21.03 per share (after adjustment for the stock split) at
the beginning of the year.
The 1961 Bank Credit Agreement provided a maxi-
mum credit of $15,000,000 to be borrowed by March 31,
1963, repayable in 22 quarterly installments beginning
May I , I 963. This Agreement was amended during the
current year to extend the availability of the credit from
March 3 I, I 963 to December 31, I 963. It provides for a
reduction in the maximum credit from $15,000,000 to
$12,939,000 to reflect the three quarterly payments which
would have been made during this extension period, with
outstanding borrowings at December 31, 1963 repayable
in 19 quarterly installments beginning February I , 1964.
Under the 1958 Bank Credit Agreement, your Company
has prepaid the two $1,250,000 quarterly installments
due in September and December of 1963.
September 13, 1963
No additional financing will be required to meet cur-
rently outstanding purchase commitments, including the
DC-9 jet aircraft.
OUTLOOK
THE TRUNKLINE INDUSTRY is operating in the most favor-
able climate of the past several years, being on firmer
financial ground than at any time since the introduction
of the jets. Experience and basic jet efficiencies have
brought breakeven load factors dowrt, from 58% in 1960
to 51 % in 1962 for domestic trunkline operations. Of
equal significance is a continuing shrinkage of the spread
between capacity and demand as traffic continues to ex-
pand and as the industry retires more of its obsolete equip-
ment. Delta, with 70% of its revenue passenger miles
already derived from pure jet operations, should continue
to share in these improved industry conditions. More-
over, with the extraordinary costs attendant to (I ) the
introduction of two types of jets and (2) the inauguration
of West Coast services now largely completed, your Com-
pany should continue to improve its relative position in
the industry. The entire Delta family is dedicated to
maintaining its role of leadership and is determined to
make Delta the finest airline in the business.
PRESIDENT AND GENERAL MANAGER
New and modern terminals at Dulles Airport (Washington), Memphis and Jackson are all served by Delta Jets.
9
Based on the accepted yardstick of revenue passenger miles,
Delta is now ranked as the seventh largest airline in the world.
Delta has progressed from eleventh place to its present position
since the inauguration of southern transcontinental service on
June 11, 196 I.
In providing service to 64 cities over a system of 14,088 miles,
Delta operates a passenger fleet of 26 jet aircraft and 51 pro-
peller aircraft. This fleet flies over 5 million plane miles and
carries nearly 400,000 passengers each month.
YIAIELTA
THE SLOGAN made its appearance during the year
and will assume greater prominence as the opening
of the New York World's Fair moves closer. Recog-
nizing its key position linking the South with New
York City, Delta was one of the first airlines to estab-
lish a liaison with the World's Fair management and
started promotion of the extravaganza a full year
ahead of its opening in April 1964.
New York's unique transportation system and the
usual difficulty associated with big city parking puts
the automobile at a disadvantage. Delta's program
emphasizes the convenience of air travel.
Much of Delta's planning for the World's Fair is
directed toward youth and group travel, including-
schools, churches and clubs. The unique program in-
cludes the sale of World's Fair "Travel Stamps" at
$1 each, available at any Delta ticket office, along
with special free books, which hold 150 stamps.
Stamps, when pasted in the book, are redeemable for
a World's Fair Dream Vacation (or other Delta travel).
To encourage travel stamp sales, a handsome Travel
Kit with all the literature and maps on New York
and the World's Fair is given free with each purchase
of a World's Fair Travel Stamp Dream Vacation.
The "Stamp Plan" also is attracting considerable
attention as an effective employees' incentive tool.
It is estimated that 70 million persons will attend,
and your Company expects to realize a whole new
market from the large segment of people who have
never flown before but who plan to fly to the Fair.
Promotional activities were launched almost a
full year before the Fair's opening as surveys of the
1961 Seattle Fair traffic showed that 50% of travel
plans were made seven months or more in advance.
The New York World's Fair can easily be the
largest single tourist attraction in this or any other
country for the next several years, and Delta's World's
Fair Program can well be one of the largest and most
successful programs ever initiated by your Company.
To coordinate all phases of the program, a World's
Fair Travel Advisor has been appointed, and no op-
portunity will be overlooked in generating travel to
and from New York during the Fair's two seasons.
All efforts are being backed up by the largest
concentration of advertising promotion your Com-
pany has ever directed toward a single event.
12
DELTA AIR LINES, I
ASSETS
CURRENT ASSETS:
Cash .. .... .... . ............ . ... .................. .
Short-term cash investments, 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-
1963 ........... .
1962 ... . . ..... ... . .
Reserves for depreciation-
1963 . . ....... . .. . . .
1962 .... .... . . ... . .
Flight
Equipment
$217,026,899
182,707,369
92,262,823
74,930,540
Other
Property and
Equipment
$2 1,905,993
19,653,278
9,790,732
8,364,684
Advance payments for new flight equipment .. . .. . . .. .. .
1963
$ 13,056,477
11,041,647
12,380,854
2,488,001
2,297,858
444,532
299,094
$ 42,008,463
$ 565,772
$238,932,892
102,053,555
$136,879,337
1,979,076
$138,858,413
$181,432,648
$ 11 ,064,884
4,997,204
12,196,296
1,874,887
2,218,860
1,298,872
86,108
$ 33,737,111
$ 647,815
$202,360,647
83,295,224
$119,065,423
4,637,352
$123,702,775
$158,087,701
C. BALANCE SHEETS
JUNE 30, 1963 AND 1962
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 income taxes . . ...........
Total current liabilities . .... . ..
NONCURRENT LIABILITIES:
Long-term notes payable (Note I) ....... .. ...... . .... .
Other ......... ........... . .... ........... ........ .
DEFERRED FEDERAL INCOME TAX ............... .
STOCKHOLDER EQUITY:
Common stock, par value $3.00 per share-
Authorized 4,000,000 shares
Outstanding 2,550,000 shares at June 30, 1963, and
I, 700,000 shares at June 30, 1962 . ............ .
Capital surplus ......... . ..... .......... . . . . . . ... .
Retained earnings (of which $20,033,054 is not
presently available for cash dividends under
terms of credit agreements) ....................... .
PURCHASE COMMITMENTS (Note 2)
The accompanying notes are an integral part of these statements.
1963
$ 3,026,316
13,692,8 13
2,235,948
2,864,957
1,490,900
3,774,992
$ 27,085,926
$ 56,973,684
272,013
$ 57,245,697
$ 32,207,553
$ 7,650,000
22,450,114
34,793,358
$ 64,893,472
$181,432,648
$ 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
22,450,1 14
26,068,880
$ 53,618,994
$158,087,701
13
14
STATEMENTS OF INCOME
FOR THE YEARS ENDED JUNE 30, 1963 AND 1962
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 ... .... .. . ......... . . . ........... .
Ground property and equipment ... . . ... . . ... . ... . . .
Amortization of 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 -
$143,000 in 1963 and $375,000 in 1962) ........ .
Other-net ..... . ......... . .. . .. . . . ..... ..... ..... . . .
Total other expense .... .. .... . ........ ......... .
Income before income taxes .. . .......... . ...... . .
PROVISION FOR I COME TAXES:
Current Federal and state income taxes .. ... . ... . ... . ... .
Deferred Federal income taxes . . . . . . . . . . . ........ .
et income ................................... .
SPECIAL ITEM-Profit on disposition of
flight equipment, less applicable
income taxes of $513,000 . . .. .. .. . . .... . ... .... . ..... . .
Net income (and special item in 1962) . . .. . ...... .
The accompanying notes are an integral part of these statements.
1963
$191 ,355,498
4,483,007
8,304,759
2,280,466
2, 119,893
1,529,591
$210,073,214
$ 49,277,866
37,515,346
29,484,885
21,800,548
14,735,816
4,968,634
$157,783,095
$ 18,198,737
1,640,096
$ 19,838,833
$177,621,928
$ 32,451,286
$ 3,416,683
(261,875)
$ 3,154,808
$ 29,296,478
$ 4,820,000
10,652,000
$ 15,472,000
$ 13,824,478
$ 13,824,478
1962
$155,993,859
3,413,954
5,814,132
1,668,906
1,828,980
1,057,63 1
$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
$1 54, 6 7 1 , 1 0 7
$ 15,106,355
$ 2,938,470
(75,925)
$ 2,862,545
$ 12,243,8 10
$ 762,000
5,817,000
$ 6,579,000
$ 5,664,810
1,319,787
$ 6,984,597
STATEM NT OF RETAINED EARNINGS
FOR THE YEAR ENDED JUNE 30, 1963
Balance at beginning of year .... . .. . . . ...... . .. ....... ... ... . ... ......... .. .... . $26,068,880
Add:
et income for the year . . . . . . . . .. .............. . .. . .... . .. .. ... . ...... . 13,824,478
$39,893,358
Deduct:
Cash dividends . '
........ .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,550,000
Transfer to common stock in connection with
stock split effected in the form of a 50%
stock dividend distributed on March 4, 1963 . 2,550,000
Balance at end of year ($20,033,054 is restricted
as indicated on balance sheet) ....... . . . .... .
The accompanying notes are an integral part of this statement.
To the Board of Directors,
Delta Air Lines, Inc.:
RTH UR
$34, 793,358
DERS & Co.
34 PEA C H T R EE STRE ET, .W.
ATLA TA 3
We have examined the balance sheet of Delta Air Lines, Inc. (a Louisiana corpo-
ration) as of June 30, 1963, and the related statements of income and retained earn-
ings for the year then ended. Our examination was made in accordance with generally
accepted auditing standards, and accordingly included such tests of the accounting
records and such other auditing procedures as we considered necessary in the circum-
stances. We had made a similar examination for the year ended June 30, 1962.
In our opinion, the accompanying balance sheet and statements of income and
retained earnings present fairly the financial position of Delta Air Lines, Inc. as of
June 30, 1963, and the results of its operations for the year then ended, in conformity
with generally accepted accounting principles applied on a basis consistent with that
of the preceding year.
Atlanta, Georgia,
August 12, 1963.
16
NOTES TO FINANCIAL STATEMENTS JUNE30,1963
1. LO G-TERM NOTES PAY ABLE:
Long-term notes payable (unsecured) at June 30, 1963, were as follows:
Payable to banks-
Payable in quarterly installments of $1,250,000 from March 31, 1964
through December 31, 1967, interest at 4% ............ .. ................ $20,000,000
Payable in 19 quarterly installments beginning February 1, 1964, interest to
vary with prime rate but not less than 4 % nor more than 5 % -
(Loans may be increased to $12,939,000 by December 31 , 1963) .. .......... . . 5,000,000
$25,000,000
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% . . . 10,000,000
$35,000,000
Total long-term notes payable .. .. .. . .... ... ....... .. ... . ....... ... . .. $60,000,000
Less-Amounts maturing within one year ... . . . ....... . ... '
. .. . . . .. 3,026,316
Total noncurrent portion of notes payable ... .. .... . ... .. ...... . .. . . . ... $56,973,684
2. FLIGHT EQUIPMENT PURCHASE COMMITMENTS:
At June 30, 1963, the Company had outstanding commitments for the purchase of two Douglas DC-8 Fan-
jet aircraft to be delivered in November and December, 1963. The Company has also contracted for
the installation of Fanjet engines in the six DC-8's acquired in 1959, such modification being scheduled
for completion in October, 1963. In addition, the Company was committed to purchase fifteen Douglas
DC-9 twin-jet aircraft to be delivered beginning in early 1966. These commitments will require the
expenditure of approximately $73,000,000, in addition to advance payments made as of June 30, 1963.
Subsequent to June 30, 1963, the Company contracted to purchase two additional Douglas DC-8 Fanjet
aircraft to be delivered in May and November, 1964. This commitment involves a total expenditure
of approximately $12,000,000.
3. INVESTMENT CREDIT:
Under the investment credit provisions of the Revenue Act of 1962, the Company is entitled to a tax credit
of $4,028,000, representing 7% of the cost of certain new equipment. Of this amount, $1,951,000 has
been used to reduce the Company's accrued income taxes and $2,077,000 is available for future years.
The net benefit of the investment credit is being amortized to income over an eight-year period.
10 YEAR OPERATIONS SUMMARY YEARS ENDED JUNE 30
R evenue 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 . . ......................... .. . .
1963
61,242
4,606,367
4,953,787
3,004,157
60.64%
648,185
342,661
52.86%
97.04%
1962
55,713
3,768,707
4,123,318
2,393,991
58.06%
542,232
269,044
49.62%
96.93%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
54 55 56 57 58
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
~ 2.5
2.0
1.5
1.0
.5
54 55 56 57 58
1961 1960 1959
49,455 49,405 46,022
3,569,778 3,241,511 2,988,241
3,389,547 3,027,450 2,622,740
2,034,047 1,757,208 1,554,630
60.01% 58.04% 59.28%
442,251 387,552 324,018
223,592 195,373 174,936
50.56% 50.41% 53.99%
97.14% 97.03% 97.04%
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
.5
.0
59 60 61 62 63 54 55 56 57 58 59 60 61 62 63

3.25
3.00
2.75
2.50
2.25
2.00
1.75
1.50
~ 1.25
-
I---
1.00
.75
.50 -
.25
59 60 61 62 63 54 55 56 57 58 59 60 61 62 63
1958 1957 1956 1955 1954
44,972 41,671 33,962 31,579 31,916
2,728,220 2,572,982 2,261,770 2,039,018 1,712,562
2,479,428 2,206,408 1,726,941 1,517,891 1,344,069
1,408,857 1,299,482 1,080,267 952,426 769,653
56.82% 58.90% 62.55% 62.75% 57.26%
301,105 260,431 207,416 182,997 162,345
156,332 141,861 118,544 104,927 87,251
51.92% 54.47% 57.15% 57.34% 53.74%
97.40% 97.62% 98.39% 98.79% 98.29%
17
10 YEAR FINANCIA SUMMARY YEARS ENDED JUNE 30
Dollars expressed in thousands except per share figures
Total assets ........ .. ...................................... .
Current assets ............... ... . ......... .
Current liabilities ............................. .... . . ..... .
Net working capital. ..... . ............................ .
Stockholder equity . .... ........ . ...... . ................ . . . .. .
Stockholder equity per share*. _ . . ................... .... ..... .
Shares of common stock outstanding at year end* .. ......... . .
Operating revenues
Passenger . . ........... . ......... .. .... ..... .. ... . .
Mail .............. .. ..... . ..... .. ...................... .
Express . . . . . . . ......... . ........... . .... . .............. .
Freight ............. . ......................... ... .. . . .. .
All other ........... .. ................... . .. .. . ......... .
Total revenues ............ _ ....... .. ......... . ....... .
Operating expenses (excluding depreciation and amortization) .. . . .
Depreciation and amortization . .... . ....... . .. .... ........... .
Total expenses ........ ... ..................... . _ ..... .
Operating income .. . .. . . .... . .... .. ...... ... ......... .
Operating ratio ......................................... .
Non-operating expense-net ... . ...... . . . ......... . _ ... .. .... .
Net income before taxes ............. . ... . ............. .. ... . .
Taxes on income .. .. . . ................. . ... ...... .... .... . . .
Net income . . . ..... . ........ ..... ........... .. .. ..... .
et income as % of revenues ... ........ . ........... .
Special item-profit on disposition of flight equipment (after taxes).
Total income and special item . . ............. . ...... .. .... .. .. .
Per share of stock outstanding at year end* ... ...... .. ..... . .
Dividends paid ... ............ .. .. . .. .. .. ........ .. .. ....... .
Dividends paid per share* ........... ... . ... . .. .. ......... .
-- 19_
63 .
$181,433
42,009
27,086
$ 14,923
$ 64,893
$25.45
2,550,000
$191,355
4,483
2,280
8,305
3,650
$210,073
$157,783
19,839
$177,622
$ 32,451
84.55%
$ 3,155
$ 29,296
15,472
$ 13,824
6.58%
$ 13,824
$5.42
$ 2,550
$1.00
1962
$158,088
33,737
26,587
$ 7,150
$ 53,619
$21.03
2,550,000
$155,994
3,414
1,669
5,814
2,886
$169,777
$136,935
17,736
$154,67 1
$ 15,106
91.10%
$ 2,862
$ 12,244
6,579
$ 5,665
3.34%
$ 1,320
$ 6,985
$2.74
$ 1,520
$.65
*Adjusted to reflect 50% stock split March 4, 1963, 33 % stock split March 15, 1962 and 25 % stock dividend June 29, 1956.
1961 1960 1959
$134,938 $121 ,890 $ 95,427
30,142 26,724 23,948
26,084 17,983 13,685
$ 4,058 $ 8,741 $ 10,263
$ 41,056 $ 38,902 $ 37,410
$18.29 $17.33 $16.67
2,244,469 2,244,467 2,244,443
$134,946 $109,672 $ 94,062
2,579 2,140 2, 152
1,408 1,362 1,206
4,070 4,250 3,879
3,129 2,767 2,506
$146,132 $120,191 $103,805
$119,226 $101,708 $ 85,550
15,205 11,752 8,870
$134,43 1 $113,460 $ 94,420
$ 11 ,701 $ 6,731 $ 9,385
91.99% 94.40% 90.96%
$ 2,733 $ 1,313 $ 554
$ 8,968 $ 5,418 $ 8,831
4,842 2,735 4,769
$ 4,126 $ 2,683 $ 4,062
2.82% 2.23% 3.91%
$ 526 $ 156 $
$ 4,652 $ 2,839 $ 4,062
$2.07 $1.27 $1.81
$ 1,346 $ 1,346 $ 673
$.60 $.60 $.30
1958 1957 1956 1955 1954
$ 80,941 $ 66,931 $ 54,638 $ 54,050 $ 48,090
15,454 16,773 15,141 18,763 15,888
9,702 11,092 11 ,655 12,687 8,861
$ 5,752 $ 5,681 $ 3,486 6,076 $ 7,027
$ 34,020 $ 33,966 $ 28,358 $ 19,846 $ 16,233
$15.16 $15.13 $14.23 $11.99 $10.82
2,244,090 2,243,888 1,992,438 1,654,782 1,500,000
$ 80,217 $ 71,873 $ 60,558 $ 53,966 $ 45,145
1,796 1,636 1,468 1,463 1,724
953 1,0 16 1,045 918 845
2,955 2,231 2,020 1,844 1,766
2,252 1,840 1,7 13 997 854
$ 88,173 $ 78,596 $ 66,804 $ 59,188 $ 50,334
$ 76,277 $ 65,782 $ 53, 169 $ 47,047 $ 43,021
9,354 6,729 5,661 6,445 5,275
$ 85,631 $ 72,511 $ 58,830 $ 53,492 $ 48,296
$ 2,542 $ 6,085 $ 7,974 $ 5,696 $ 2,038
97.12% 92.26% 88.06% 90.38% 95.95%
$ 600 $ 556 $ 536 $ 1,377 $ 1,360
$ 1,942 $ 5,529 $ 7,438 $ 4,319 $ 678
1,010 2,990 4,069 2,412 394
$ 932 $ 2,539 $ 3,369 $ 1,907 $ 284
1.06% 3.23% 5.04% 3.22% .56%
$ 131 $ 83 $ 1,309 $ 259 $ 1,022
$ 1,063 $ 2,622 $ 4,678 $ 2,166 $ 1,306
$.47 $1.17 $2.35 $1.31 $.87
$ 1,010 $ 1,346 $ 923 $ 720 $ 720
$.45 $.60 $.48 $.48 $.48
DELTA TICKET OFFICES
City Ticket OJ/ices Reservation Telephone
ALEXANDRIA Lobby. Bentley H otel . . ... . . .. Hlllcrest 2-447 1
ASHEVILLE Lobby, Battery Park Hotel. .... . . ..... ALpine 2-7601
ATLANTA Fulton National Bank Bldg.; Piedmont and }
521 3000
Biltmore H otels; Merchandise M art Bldg. -
AUGUSTA Richmond Hotel. . . .. ... .......... . .. . .. PArk 2-88 11
BALTIMORE Lord Baltimore Hotel. ... .. .. ... . . SOuthfield 6-2 l 00
BATON ROUGE Lobby, Capitol House Hotel .... . . ... ELgin 6-4333
BEAUMONT Airport ................ . .. . ....... RAndolph 2-3471
BIRMINGHAM 2002 Fifth Ave., North . . . . ... ............ 592-9601
BRUNSWICK Airport. . . . . . . . . . . . . . . . ... ..... MEirose 8-253 1
CARACAS, VENZ. Edificio Roraima .. ... . .. ..... . ........ 339-349
and Macu to-Sheraton Hotel . . . . .. ... . ... 8 l -2 I -84
CHARLESTON Lobby, Francis Marion Hotel . . .... SHerwood 4-2567
CHARLOTTE Lobby, Selwyn Hotel. . .. ... ..... . ........ 392-4321
CHATTANOOGA Lobby, Hotel Pa tten ..... . . . .... . .... . . 265-363 1
CHICAGO 67 East Monr_
oe, Conrad Hilton Hotel}Flnancial 6_5300
and 1629 Orrmgton m Evanston
CINCINNATI Sheraton-Gibson and etherl'd-Hilton Hotels. 24 1-1 700
CLEARWATER Tampa International Airport . ............ 446-83 18
COLUMBIA Lobby, Wade Hampton H otel . .... . .. ... SWift 4-3000
COLUMBUS, GA. Ralston Hotel . . . . . . . . ...... F irfax 7-7458
COLUMBUS, OHIO Lobby, Deshler Hilton Hotel . . . . . .. . 237-7474
DALLAS 2 12 S. Akard St. ( Baker Hotel );} ... F Leetwood 7 _6 161
Statler Hotel Lobby
DAYTON Biltmore H otel . . . . . . . . . . . . . . . . . . . ... 223-7141
DETROIT 1205 Washington Blvd. and Lobby,\ . WOodward 5-3000
General Motors Bldg. J
EVANSVILLE Lobby, McCurdy Hotel .... . . . .. . .. H Arrison 5-9023
FORT LAUDERDALE 10 S.E. Sixth Avenue .. . .. J ckson 4-033 1
FORT WAYNE Lobby, Van Orman H otel . . . . . . . . . . . 742-220 1
FORT WORTH Lobby, H otel Texas . ... . .. ..... ... . EDison 2-787 1
HENDERSO VILLE Airport . . ..... .. .. .. OXford 3-72 11
HOT SPRINGS Airport .. . . . . .... . .. NAtional 3-1671
HOUSTON Rice and Shamrock-Hilton H otels . ...... CApitol 5-1 361
INDIANAPOLIS Lobby, Claypool H otel. .... . ...... MEirose 7-1 554
JACKSON H eidelberg H otel . . . . . .. 939-5200
JACKSONVILLE Hotel Robert Meyer .. .... .. . ....... ELgin 3-3 1 71
KANSAS CITY Muehlebach Hotel . . . . . . . . . . . GRand 1-7733
KNOXVILLE Farragut H otel. . . . . . . . . . . . . . . . . . . . .. 5 77-6611
LAS VEGAS Sahara Hotel . . . . . . . . . . . . . . . . . . . . . .. 382-0077
LEXINGTON Airport. . . . . . . . . . . . . . . . . . ..... 254-5569
LITTLE ROCK Lobby, Coachman's Inn .. ......... FRanklin 5-9111
LOS ANGELES 529 W. Sixth Street . . .... . .... .. .. MAdison 0-1050
BURBANK . . . . .. . ... STate 2-7551
BEVERLY HILLS Beverly Hilton H otel. . . ...... CRestview 3-181 3
HOLLYWOOD H ollywood Roosevelt H otel ....... MAdison 0-1 050
City T icket Offices Reservation T elephone
LO G BEACH Jurgens Trust Building .. ........ NEwmark 9-6950
PASADENA 700 E. Colorado Blvd . ....... .. . .. SYcamore 5-0449
LoursvrLLE Shop 102, Starks Bldg. . . . . . . .. ... 584-3142
MACON Lobby, Hotel Dempsey .. . .... . ... . .... 788-3363
MARACAIBO, VE z . Edificio Icuma, Ave. 5 dejulio . Maracaibo 75-28 1
MEMPHIS Peabody Hotel .. . ........ . ............... . .. 398-9211
M
ERIDIA Airport . . . . . . . . . . . . . . . . . .. . 482-3141
MlAMI Columbus Hotel; Ashe Bldg., U. of Miami . . FRanklin 3-0441
MlAMl BEACH I 632 Collins Ave. and 230 71st St . . . . FRanklin 3-0441
MILWAUKEE 718 . Plankington Ave . . ... ....... Division 2-4675
MONROE Lobby, Frances Hotel. ............. . .... FAirfax 3-5 116
MONTEGO BAY, JAMAICA Casa Montego Hotel. ...... . ....... 281 1
MONTGOMERY Lobby,Jefferson Davis Hotel . ............ 264-731 3
NEW ORLEANS Sheraton-Charles and Roosevelt Hotels . . ... 524-8592
NEW YORK Rockefeller Center ; Airlines Building; 100}
Broadway; Lobby, Statler Hotel; East
Side T erminal ; West Side Terminal; 635 PLaza 1-6600
Madison Ave. ; 200 Livingston St., Brook-
lyn ; 35 Mamaroneck Ave., White Plains
WESTCHESTER . . . . . . . . . . . . . . . . . . ..... White Plains 6-1 626
NASSAU AND SUFFOLK. . . . . .. .. IVanhoe 1-681 1
EWARK 3 Commerce Street . . . . . . . . . . . Mitchell 2-2228
ORLA DO Lobby_, San Juan Hotel and 7000 N.} . CH erry 1 _453 1
Atlantic Ave., Cocoa Beach
PADUCAH Airport . . . . . . . . . . . . . . . . . ...... 443-1 732
PHILADELPHIA Bellevue-Strat. and Sheraton Hotels . SAratoga 7-9900
PORT ARTHUR Airport . . . .. RAndolph 2-3417
PORT AU PRlNCE , HAlTl 2 Rue Du Fort Per . . . . ............. 3805
SAN DIEGO U.S. Grant Hotel . . . . . . . . . . . . . . . . . ... 239-2345
SAN FRA cisco Sheraton-Pal~e<? Hotel ; . . } . ... EXbrook 7-3242
Downtown A1rlme Termmal
OAKLA D 1922 Broadway . . . . . . TEmple Bar 4-6680
SAN MATEO .. . . .. Dlamond 2- 1434
SUNNYVALE. . REgent 6-1660
SAN JUAN, PUERTO RICO 3 11 Recinto Sur ... . ... 791-0045
SAVA NAH Manger Hotel . . . . .. . . ADams 3-0267
SHREVEPORT Captain Shreve Hotel . . . . . . . . . . . .. .. 425-3232
SPRINGFlELD Airport . . . . . . ......... . UNiversity 6-1 951
ST. LOUIS Lobby, Statle-r Hotel. .. .. .. . ....... MAin 1-7580
ST. PETERSBURG Tampa International Airport . . ...... 896-7141
TAMPA 500 Florida Ave. (Hillsboro Hotel). . . . . .. 223-465 1
TOLEDO Commodore Perry Hotel Arcade. . . . . . . 244-866 1
TULSA Alvin Hotel, 627 S. Main ... . ............. LUther 2-0202
WASHlNGTON, D. c . 1605 ~ Street, N. W . and } .District 7-9600
Washm?;ton Hotel
WEST PALM BEACH Town House Motor Hotel,}
(100 Datura Street) 833-6604
Delta's advertising stresses the human quality of service.
Throughout the industry it is conceded superior.
Delta ... Jet leader
in Atlanta~~~
Is personal service obsolete!'
___ DELTA doesn't think so!
.Jo?-~~
!~~:En;;:
Jet to Miami
- most people do!
Over600aeala onpeakdJ.y1/
over 2,600 Jet Seats on peak days
"'"~-'" ..,_,,J,..11,,,.n.,jl\r
1,,.,,, ..
-1~,-,ri .... , ............. ..
~:;~;:~:.:;~ .,'..""
Non-,top Jets to NEWYDR(r/1 jt1!J NE WA Rt ,mJ I0tEWIL0
01/lyJet1to MIANl CHICA60 HOU3TOII
Tlt1fJJJIJ1t,ro SAIIFRAIICJSC0 1nd L0SAIICEtES
ThoIUJJ, Jab to MEMPHIS1md fJIRNINCHAff
Tllo eJ!lt ,tor,-,top Jet to PH/UDELPHIA
Th IPl.l Jot, tQ CINCINNATI 1ftd DETR0/1
Thaf!!b'Jotfto OALLAS i,rd LAS~E&AS
Tlro!!!f!!Jet,to llEWORUAIJS
DIRECTORS
R. W. FREEMAN, Chairman
N ew Orleans, Louisiana
EMERY FLINN
Miami, Florida
JOHN R. LONGMIRE
St. Louis, Missouri
CARLETON PUTNAM
Washington, D . C.
OFFICERS
R. W. COURTS C. H. DOLSON
Atlanta, Georgia Atlanta, Georgia
EDWARD H. GERRY EARL D. JOHNSO
New York, New Y ork Atlanta, Georgia
R. S. MAURER WINSHIP NUNNALLY
Atlanta, Georgia Atlanta, Georgia
GEORGE M. SNELLINGS, JR. C. E. WOOLMAN
Monroe, Louisiana Atlanta, Georgia
C. E. WOOLMAN
President and General Manager
EARL D. JOHNSON
Executive Vice President
C. H . DOLSON
Executive Vice President- Operations
W. T. BEEBE
Vice President- Personnel
ROBERT L. GRIFFITH
Vice President
R. S. MAURER
Vice President-Legal and Secretary
T. M . MILLER
Vice President- Traffic and Sales
CHARLES P. KNECHT
Assistant Vice President-
Sales
PAUL W. PATE
Assistant Vice President-
Properties
CATHERINE FITZGERALD
Assistant Treasurer
J. R. HOWELL
Assistant Treasurer
ROBERT OPPENLANDER
Comptroller and Treasurer
R .H. WHARTON
Assistant Vice President-
Personnel
C. BOYCE WILDER
Assistant Vice President-
Operations- T echnical
HUGH H. SAXON
Assistant Treasurer
TRANSFER AGENTS: The Citizens & Southern National Bank, Atlanta, Georgia
and The First National City Bank, New York, New York
REGISTRARS : Trust Company of Georgia, Atlanta, Georgia
and 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 24, 1963, Monroe, Louisiana