Delta Air Lines annual report 1966

~Att(__,
DELTA AIR LINES, INC. ANNUAL REPORT 1966
DELTA'S JET FLEET TODAY AND PROJECTED TO 1970
Types of Planes
Fleet DELIVERIES IN FISCAL YEARS Fleet
Total Total
6/30/66 1967 1968 1969 1970 6/30/70
DC-8-133 Passengers 20 1 - - - 21
DC-8-195 Passengers - 3 2 5* 2* 12
CV-880-96 Passengers 16 - - - - 16
DC-9-65 Passengers 8 6 - - - 14
DC-9- 89 Passengers - 8 17 3 3* 40
9*
L-100-Air Freight - 3 - - - 3
Total Planes 44 21 19 17 5 106
*Options
THE COVER. The remarkable 3-dimensional quality in the cover photo showing one of Delta's
new DC-9s leaving the Atlanta terminal was achieved by the newly perfected XOGRAPH process.
The Delta Jet fleet will
more than double in the
next four years, assuming
all options are exercised.
DELTA AIR LINES, INC. ANNUAL REPORT 1966
FOUR DECADES OF SERVICE
C. E. Woolman, founder of Delta Air Lines and formerly Chairman of the Board
and Chief Executive Officer, passed away on September 11, 1966, after his nReport to
Stockholders'' had been released to the printer.
In 1925 Mr. Woolman and a few business associates in Monroe, Louisiana,
formed the world's first commercial aerial crop-dusting company. From this humble
beginning emerged Delta Air Lines, today the nation's fifth largest and the world's
seventh largest airline.
Under Mr. Woolman's energetic leadership and unselfish devotion, Delta has
achieved steady economic and financial growth. His character, leadership and the
warmth of his personality resulted in his being loved by his friends, esteemed by his
fellow workers and respected by all with whom he came in contact.
Mr. Woolman's energy and counsel will be missed, not only by the Delta family
but by the aviation industry in which he played such a leading role. I am confident,
however, that the team spirit which Mr. Woolman's leadership developed will carry
Delta on to continuing growth and achievement.
PRESIDENT
HIGHLIGHTS OF THE YEAR
A comparative summary of the major yardsticks for evaluation of
operations for years ended June 30 is shown below. Dollars are
expressed in thousands except per share figures.
Per Cent
1966 1965 Change
Operating Revenues ...... .... . $318,930 $257,460 +24 %
Operating Expenses ........ . . . . $253,092 $213,131 +19
Net Income . .......... . . .. .... $ 34,554 $ 23,005 +50
Shares Outstanding at year end .. 6,375,000 6,375,000*
Earnings Per Share .. ... . . ..... $5.42 $3.61 * +50
Total Stockholder Equity ....... $123,675 $ 95,177 +30
Stockholder Equity Per Share . .. $19.40 $14.93* +30
Revenue Passengers Carried .... 7,556,422 5,964,269 +27
Available Seat Miles (000) . . . ... 8,196,349 6,793,654 +21
Revenue Passenger Miles (000) . . 4,997,958 3,855,012 +30
Passenger Load Factor ...... . .. 60.98 % 56.74 %
*Adjusted to reflect 2-for-1 stock split December 13, 1965
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REPORT TO THE STOCKHOLDERS
The fiscal year which ended June 30, 1966
was one of extraordinary growth, adding
still another significant chapter to Delta's
record of consistent progress.
A continuing expansion of jet services
produced record results in every phase of
our operations. Revenues increased 24 % ,
to a record total of $318,930,000, while op-
erating expenses were up only 19%, despite
significant training and introductory ser-
vice costs in connection with our new twin-
jet DC-9 fleet. As a result, after-tax earn-
ings increased 50 % over the previous fiscal
year to $34,554,000 or $5.42 per share, after
adjustment for the 2-for-1 stock split which
was distributed on December 13, 1965.
During the fiscal year available seat mile
capacity was increased by 21 %. A record
7.5 million passengers flew almost 5 billion
revenue passenger miles, an increase of 30 %
that was significantly higher than the
average growth for the trunkline industry.
Of the revenue passenger mile total, 82 %
was carried in jet aircraft and 76 % was
in tourist with only 24 % in first class.
In fiscal year 1966 Delta increased its
share of total domestic trunkline traffic
from 8.5 % to 9.0 %. Indicative of the con-
tinuing traffic development achieved was
the fact that in 1966 Delta's one millionth
Atlanta passenger was boarded on June
21st, which was 65 days earlier than the
same milepost was reached in 1965, and
more than three months earlier than the
attainment of the same traffic level in 1964.
During fiscal 1966 Del ta became the first
airline to operate the new twin-jet Douglas
DC-9 commercially. This was your Com-
pany's third such ufirst," Delta having
been the first commercial operator of the
Douglas DC-8 in 1959 and the first opera-
tor of the Convair 880 in 1960.
Eight of our 65-passenger DC-9 aircraft
were delivered during the fiscal year 1966
and an additional six are scheduled for de-
livery during the first half of fiscal 1967. In
addition, as a result of the excellent public
acceptance and operating performance of
the DC-9 airplane, 28 of the 89-passenger
version now have been placed on firm order
for delivery between fiscal 1967 and 1969,
and options have been taken for the ac-
quisition of another 12 of these aircraft.
Also during fiscal 1966, the DC-8 fleet
was increased by four airplanes, with a fifth
being delivered early in the new fiscal year,
making a total of 21 standard configuration
DC-8s now in service.
In addition, five 195-passenger ((stretch-
ed" DC-8s are on firm order, for delivery
in fiscal 1967 and 1968, and seven more
such aircraft are on option.
In summary, at the end of fiscal year
1966 our jet fleet numbered 44 aircraft, but
firm commitments and negotiated options
will increase this total to 103 by the end of
1969. These commitments and options will
require a financial outlay of approximately
a quarter of a billion dollars over the years
1966-1969. Financing will be with inter-
nally-generated funds, with the exception
of $45,000,000 that may be required to
meet a temporary peaking during late 1967.
Arrangements were recently concluded
with twenty-three banks to provide this
amount under a revolving credit planter-
minating in 1970, but it is anticipated that
loans under this commitment will be paid
off prior to the end of calendar year 1969.
In recent years there has been a substan-
tial decline in passenger mile yield, due in
part to the increasing use of tourist ser-
vices and in part to the introduction of a
number of promotional fares designed to
attract new airline travelers through a
broadening of the market base. Our ability
to lower fares while still improving profits
has been due to substantial traffic in-
creases, coupled with reductions in unit
costs achieved through the operating ef-
ficiency of our new jet aircraft. The year-
to-year decrease achieved in our unit costs,
however, has already become less pro-
nounced. Wages, fringe benefits and the
cost of aircraft, parts and materials have
continued to rise.
In the future, of course, we hope to
achieve still further cost improvements by
replacing our remaining DC-6 and DC-7
piston-powered aircraft with twin-jet
DC-9s during fiscal years 1967 and 1968,
and through the introduction of stretched
DC-8s beginning early in 1967. Our ability
to achieve this goal, however, will depend
in large part on the ability of our country
to avoid spiraling inflation while sustaining
a sound and continuing economic growth.
Delta's management strength was again
broadened during the past fiscal year.
Your Board of Directors elected me to
serve as Chairman of the Board and Chief
Executive Officer of the Company, ad-
vancing Charles H. Dolson to the position
of President and David C. Garrett, Jr. to
the office of Vice President-Operations.
I have every confidence in the ability of
these gentlemen to discharge their new
responsibilities in a most effective manner
and, based upon his 31 years of experience
with Delta, Mr. Dolson as President will
be able to assist me more meaningfully in
the day-to-day operations of one of the
finest air lines in the world.
As has been true throughout our history,
the achievements of the past year have
been built upon the loyal and dedicated
service of our entire personnel. During the
prolonged work stoppage that idled five
domestic trunklines at the beginning of the
new fiscal year the response and productiv-
ity of our people has once again demon-
strated the abilities and esprit de corps of
the Delta family during a most demanding
period. For Delta, I take this opportunity
of saluting their achievement and expres-
sing our deep appreciation for their support.
CHAIRMAN OF THE BOARD
AND CHIEF EXECUTIVE OFFICER
Septem her 9, 1966
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The first of Delta's new Douglas DC-8 Super J ets, which will go into service early in 1967 with 195
seats, will accommodate approximately as m any passengers as the 100 cars shown here would nor-
m ally carry on the highway ... and, of course, far more co~fortably and about ten times faster.
REVENUES
Opera ting revenues reached an all-time
high of $318,930,000, increasing 24 % over
the previous year. Revenue passengers
carried increased 27 %, up 1,592,153 to a
record total of 7,556,422. This was the
largest numerical gain for a single year in
Delta's history.
Revenue passenger miles increased by
30 % to 4,997,958,000, and accounted for
$291,350,000 in passenger revenues. Delta's
participation in the total domestic trunk-
line market increased to an all-time high
of 9.0 % in fiscal 1966.
EXPENSES
Operating expenses were $253,092,000, up
only 19% over the previous year despite
substantial DC-9 Fanjet introductory
costs, which were not deferred, and an in-
crease of 21 % in system seat mile capacity.
The additional capacity resulted from the
addition of eight DC-9s, four DC-8s and a
concerted effort to increase utilization of
the entire fleet.
Notwithstanding major increases in sala-
ries and fringe benefits, and the introduc-
tory costs of the DC-9, a further modest
decline of 1 % in available ton mile costs
was achieved. On a revenue ton mile basis,
unit costs were down 8 % , reflecting in-
creased load factors.
Daily utilization of all types of aircraft
rose significantly, with the Convair 880
and the DC-8 jets each showing gains of
5 % . Furthermore, by year end, the new
fleet of relatively short-haul DC-9 aircraft
was achieving more than nine scheduled
airborne hours per day.
EARNINGS AND DIVIDENDS
The 19th consecutive year of profitable
operations by Delta saw net profit of
$34,554,000, after providing for current
and deferred tax liability. This was more
than 40 % above the combined earnings
for the 10 years preceding jet operations.
Of the year's total net income, profits of
$562,000 were derived from the disposition
of flight equipment. Earnings per share
were $5.42, based on the 6,375,000 common
shares outstanding after the 2-for-1 stock
split on December 13, 1965. The increase
was 50 % over last year's net profit of
$23,005,000, which amounted to $3.61 per
share after adjustment for the stock split.
Cash dividend payments for the year
were $6,056,000, an increase of 25 % . The
Board of Directors authorized a cash divi-
dend of 20 per share (after adjustment
for the stock split) for the first quarter,
and 25 per share for each of the year's last
three quarters. The new dividend rate on
the shares outstanding after the stock split
was, in effect, an increase of 25 % in the
annual dividend rate.
CAPITALIZATION AND FINANCING
Stockholder equity at the end of the year
amounted to $123,675,000, equivalent to
$19.40 for each of the 6,375,000 shares out-
standing. This compares to $95,177,000
and $14.93 per share (after adjustment for
the 2-for-1 stock split) at the beginning of
this fiscal period.
In June 1966, arrangements were com-
pleted with a group of twenty-three banks
to provide for borrowings of up to $45
million under a revolving credit agreement
extending through 1970. This revolving
credit, together with internally generated
funds, will provide adequate financing for
the quarter billion dollar jet equipment ex-
pansion program which has been scheduled
for the years 1966 through 1969.
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The expanding scop of D elta' pass ng r m arket is evident at ev ry boarding gate.
SERVICES
A new approach to scheduling, with a re-
lated increase in daily utilization of air-
craft and additional service , characterized
Delta's <<Early Bird" program that was
begun in Atlanta in April, 1966.
The plan provides for a total of 17 early
morning departures to 22 cities. The busi-
ness traveler is offered numerous incen-
tives to leave between 6 a.m. and 7 a.m.,
including low night coach fares, a full work
day in a distant city without an overnight
stay and quick travel to the airport on
traffic-free expressways. The pattern also
provided Delta with another departure
ncomplex" at the Atlanta Airport during a
relatively uncongested period and a prime
time arrival at the first destination.
An extensive advertising campaign gave
<<Early Bird" an entirely new household
and business-office meaning in the Atlanta
area. The schedules have become com-
muter favorites and the program will be
expanded to other cities as traffic potentials
and scheduling availability permit.
There was also a continuing expansion
of systemwide jet services, highlighted by
the introduction of the DC-9 Fanjet. From
an original pattern that served eight cities,
DC-9 service was expanded to 28 cities at
year end, with the heaviest concentration
of schedules in the Mississippi Valley area
where relatively short-haul operations
made the DC-9 an ideal airplane. At June
30th, for example, Memphis had 13 daily
DC-9 departures, the most for any city on
the system. The aircraft was an instant suc-
cess from the standpoint of passenger
popularity and mechanical reliability. The
passenger load factor for the first six
months was just over 80 %.
Significant additions to the Southern
Transcontinental Service pattern were
made during the year, increasing to 13 the
number of daily flights to and from Cali-
fornia, in addition to a single turn-around
at Las Vegas. The fifth anniversary of
Southern Transcontinental Service was on
June 11th. During these first five years
Del ta carried more than two million pas-
sengers to and from California.
Delta's widely-recognized passenger ser-
vice was improved when the installation
of DELTAMATIC'.!J was completed early in the
DEL TA'S SHARE OF AIRLINE MARKET
(Pe rcentage of Dome stic Trunkline Revenue Pa ssen g er Mile s)
YEAR S ENDED JUNE 30
10 - - - - - - - - - - - - - - - - -
57 58 59 60 61 62 63 64 65 66
* Competitor's service interrupted by strike
fiscal year. The system includes 475 agents'
sets tied into our Atlanta computer center,
offering the fastest and most sophisticated
reservations system in the industry.
A more liberal baggage allowance was
instituted during the year, eliminating
weight limitations and permitting two
bags to be checked free. Curbside bag-
gage check-in also was instituted, expedit-
ing procedures at many of the passenger
terminals on the system.
Considerable expansion of ground facili-
ties has been undertaken. Work began in
the first half of the year to expand the prin-
cipal maintenance and overhaul center at
Atlanta by approximately 375,000 square
feet or 90 % ; a project which will cost in
excess of $6,000,000. A $2,500,000 expan-
sion of Delta's concourses at the Atlanta
Airport, providing for six additional air-
craft parking spaces, was in the final
planning stage at the end of the year. Con-
struction also has begun on a new Ground
Training Center located on property adja-
cent to the Atlanta Airport, where Delta
will occupy approximately 53,000 square
feet for classrooms, conference rooms, and
technical libraries. This building will house
the stewardess school and provide residence
for stewardess trainees. Continuing im-
provements in airport terminal and sales
office facilities are in progress throughout
our 14,000-mile system.
PERSONNEL
Consistent with Delta's policy of recog-
nizing the fine work and loyal cooperation
of its employees, two employee benefit
programs were revised significantly.
On November 1, 1965, Delta assumed all
costs of the Group Insurance Plan for em-
ployees and their families. Annual pre-
miums of over $2.5 million are now being
paid entirely by your Company.
The U.S. Internal Revenue Service also
has approved a major amendment to our
existing retirement benefit program. Under
the newly-approved program, effective Au-
gust 1, 1966, employee retirement benefits
will be accumulated at the rate of 1 % on
the first $6,600 of wages (increased from
$4,800 under the revised Social Security
Act), and at 1.8% of earnings in excess of
$6,600, funded by Delta with no cost to
the individual employee. These improve-
ments in the retirement income program
increase its annual cost to Delta to $7
million and result in benefits that are
superior to other plans put in effect by the
auto, steel and airframe industries.
Delta thus becomes the first airline to
underwrite the entire cost of both group
insurance and retirement income plans.
There was an increase of 1,902 employees
during the year, with employment reaching
a record high of 12,971 at the fiscal year's
end. Total compensation, which again in-
cluded a general wage increase and ap-
propriate salary adjustments, rose to
$112,844,000, up 21 % over last year.
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CATEGORIES OF PASSENGER TRAFFIC
P f r nue pas ng r mil s ompar d
t ag of pass ng r r nu in m ont hs of
J a nd 1966
Discounted {
fares - 11.5%
YOUTH FARE
EXCURSION
FAMILY PLAN
(Dependents on
MILITA
JUNE 1966
36.6%
Discounted
fares - 25.0%
50.7%
59.2%
58.2%
AVERAGE RETURN per
Revenue Passenger Mile
6.03
AVERAGE RETU RN per
Revenue Passenger Mile
5.89
AVERAG E RETURN per
46
-1%
Revenue Passenger Mile
5.56
29.3%
% OF
REVENUE
22.6%
COACH
(Full Fare only}
FIRST CLASS
(Full Fare only)
24.3%
17.3%
' - - - - - - - - - - - - PERCENTAGES OF REVENUE PASS ENGER MILES- - - - - - - - - - ~
% OF
REVENUE
PASSENGER FARES
Revenue per pa senger mile dipped to its
lowe t level since 1958 and was 12 be-
low i s 1961 jet age peak. This is con-
tinuing evidence that increased utilization
of Coach facilities and a variety of fare
reductions are offering substantial savings
to the traveling public. The yield per
revenue passenger mile for the year was
5.83 , down 4 from the 6.07 per mile
yield in fiscal 1965.
As reported previously, during the latter
days of fiscal 1965 Family Plan fares were
reduced and the availability of the Plan
was expanded. In February, 1966 ((stand-
by" Youth Fares were inaugurated and
the ((See America" excursion fare was in-
stituted in March. In May the Youth Fare
was amended by Delta to offer a con-
firmed reservation at a 33-1/ 3 % reduction
instead of the 50 o/c reduction formerly
offered on a standby basis.
All of these fares were designed as an in-
centive to induce the non-business segment
of the population to expend a larger pro-
portion of its discretionary income on air
travel. It was anticipated that the full im-
pact of the several promotional fares upon
experienced yields would be realized during
the usual vacation periods of the first
quarter of the new fiscal year, but the labor
dispute which idled five trunklines for
most of July and August limited pleasure
travel and to some extent temporarily
stabilized revenue passenger mile yields.
The Military Discount Plan, whereby
personnel in uniform and traveling on
leave are carried as standby passengers at
a 50 o discount, also contributed signifi-
cantly to total revenues. During fiscal
1966, more than 645,000 military passen-
gers were carried on this Plan with revenues
of $14,052,000, an increase of 41 % over the
previous year. The adequacy of the Plan is
illustrated by the fact that more than 91 %
of the military standby passengers were
accommodated on their first desired flight.
Expansion will increase the area of Delta's Jet maintenance base by 90%. Central blue section completed.
FLIGHT EQUIPMENT
No fiscal year in the last decade produced
a more diversified flight equipment expan-
sion than did the year just ended:
1) The Douglas DC-9 Fanjet was in-
troduced to commercial service by Delta.
Eight of these twin-jets were in operation
at year end, and an additional six are
scheduled for early delivery. An additional
28 DC-9s will be delivered in 1967-69 in
the "stretched" 89-seat version, and an
option has been taken on 12 more ''stretch-
ed" DC-9 aircraft. Assuming that this op-
tion will be exercised, by 1969 the DC-9
fleet will consist of 54 airplanes;
2) Five DC-8-61s, the 195-passenger
"stretched" version of the Douglas DC-8,
have been ordered, and an option for seven
more of these aircraft has been negotiated.
3) In late June, 1966, Delta became the
first domestic carrier to order the all-cargo
Lockheed L-100. This is the newest and
most advanced version of the famed
Lockheed Hercules family which has earned
worldwide recognition for its cargo-carry-
ing capability;
4) Four standard DC-8 Fanjets were
added to the fleet during the year and de-
livery of a fifth was made just after the
opening of the new fiscal year. These de-
liveries increased to 21 the number of
standard four-engine Douglas DC-8 jets
now in operation.
The eight DC-9s, 16 Convair 880s, and
21 DC-8s gave Delta a jet fleet of 45 air-
craft early in the new fiscal year. This total
will be increased by 14 DC-9s and 3
"stretched" DC-8s during fiscal 1967.
Service with the Lockheed L-100 all-
cargo aircraft, with usable cargo space for
45,000 pounds either on pallets or in con-
tainers up to 8 by 8 by 40 feet in size, will
begin in mid-September. All three aircraft
will be in operation by November, serving
11 cities on a coast-to-coast and midwest
to Florida network.
Delta continues to monitor the super-
sonic transport competition, and repre-
sentatives of your Company's Engineering
Department are serving on industry com-
mittees for the development of supersonic
transport systems.
N ew Atlanta training center for stewardesses, pilots and technicians.
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methods of determining mail pay are
proper. Hearings have been held and the
matter now stands submitted to the CAB
Examiner.
Transpacific Route I nuestigation: The
CAB has instituted this investigation to
examine the pattern of operations by
United States carriers in foreign and over-
seas air transportation in the Pacific. In-
cluded within the proceeding are proposals
involving air service between the United
States mainland, on the one hand, and
Hawaii and other areas of the Pacific on
the other hand. Delta applications con-
solidated in the proceeding include re-
quested operating authority between the
co-terminal points of San Francisco/ Oak-
land, Los Angeles/ Long Beach, San Diego,
Dallas, Houston, New Orleans, Atlanta
and Miami, and the terminal point Manila,
via Honolulu, Tokyo, Osaka, Seoul and
Hong Kong. Formal hearings are scheduled
to begin in January, 1967, and final de-
cision will be at least two years away.
D elta's new H ercules freighters are designed to accommodate rail-highway-marine cargo containers. Other Matters: During the period covered
by this report, Delta also has participated
in numerous local service proceedings, pri-
marily for the purpose of protecting its
traffic from erosion through the granting of
uneconomic operating authority to local
service carriers.
Pacific Route extension
would add 8,288 miles
to the Delta system.
,,,. ...
<i
HONG KONG
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REGULATORY MATTERS
United States-Caribbean-South America In-
vestigation: This extremely complex in-
vestigation involves air service needs be-
tween the United States, the Caribbean
and South America. Delta's participation
is directed toward the improvement of its
Caribbean route authority by closing the
so-called ((Miami-Havana gap" and by
adding Nassau, thus permitting direct one-
carrier services between the vast traffic
potentials of the Southeast, the Midwest
and Caribbean points via the Miami gate-
way. Delta is also seeking authority to
operate non-stop services between West
Coast points and the Caribbean area at
~-such time as developing traffic potentials
make such operations economical. Deci-
sion is anticipated during 1967.
Pacific Northwest-Southwest Service In-
vestigation : This proceeding, involving the
need for single-carrier service between the
Pacific Northwest and the Southwest areas
of the country, has been processed through
most of its procedural steps. The Examin-
er's recommended decision, which failed
to recommend the routings sought by
Delta, is being protested. A final decision
is not anticipated before the end of 1966.
New York-Florida Renewal Case: This
case is a complete retrial of an earlier CAB
decision that the temporary authority of
the third carrier between the Northeast
and Florida should not be renewed and
that no third carrier should be certificated
along the eastern seaboard. Delta has ap-
plied for direct service between Boston and
New York, in the Northeast, and T ampa
and Miami in Florida, via various routings
and intermediate points, including the elim-
ination of the route restriction which
presently prohibits Delta's operation of
through-plane service between the North-
east and Florida via Atlanta. The Bureau
of Operating Rights has recommended that
the route restriction be removed, but the
Examiner's recommended decision has not
been issued as of this time.
Domestic Service Mail Rate I nuestigation:
This proceeding will establish a new ((ser-
vice" (non-subsidy) mail rate to be paid to
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all domestic carriers by the
Post Office Department on
and after January 1, 1967. --
The major point at issue is
whether the CAB should
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HONOLULuo
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continue to use traditional
ton-mile cost relationships as
HAWAIIAN ISLANDS
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a basis for establishing the rate to be paid
or a newly devised Post Office Department
proposal relating to ((capacity costs." It
is Delta's position that the traditional
SEATTLE TACOMA
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PORTLAND
' ' ' ROUTES .OF DELTA AIR LINES
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' ' ' ' ' ' ' ' ' '
SALT LAKE CITY
LEGEND
- - Present routes
Interchange service
- - - Routes applied for
- - - - - - - - - - - DENVER
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* Service temporarily suspended
TO CARACAS
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DELTA AIR LINES, INC. BALANCE SHEETS JUNE 30, 1966 AND 1965
ASSETS
URRE T ASSETS:
ah ................................... . ............ .
Short-term ca h investment at cost .................... .
ccount receivable ................................... .
Maintenance and operating supplies, at average cost ... .
Prepaid expen es, etc. . . . . . . . . . ....................... .
Total current assets ... . ........... . ..... .
PROPERTY AND EQUIPMENT:
Cost-
1966 ................... .
1965 ... .......... .. .... .
Reserves for depreciation-
1966 . .... . ............. .
1965 . ............... . .. .
Other
Flight Property and
Equipment Equipment
$317,109,000
261,107,000
140,469,000
122,741,000
$44,042,000
37,778,000
16,506,000
13,047,000
Advance payments for new flight equipment ............ .
1966
$ 23,072,000
37,341,000
23,154,000
2,556,000
1,527,000
87,650,000
361,151,000
156,975,000
204,176,000
22,524,000
226,700,000
$314,350,000
1965
$ 6,935,000
25,123,000
18,848,000
2,753,000
1,751,000
55,410,000
298,885,000
135,788,000
163,097,000
12,767,000
175,864,000
$231,274,000
LIABILITIES AND STOCKHOLDER EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt .
Accounts payable and accrued liabilities .....
Tickets outstanding subject to refund or use .
Air travel plan deposits ... .... . ......... .
Accrued income taxes . . . . . . . . . . . . . .
Total current liabilities .......... .
LONG-TERM DEBT (Note 1) ........ .
DEFERRED CREDITS:
Deferred Federal income taxes . . ......... .. . .. . .. ... .
Unamortized investment credit (Note 3) .. ... . . .
STOCKHOLDER EQUITY:
Common stock, par value $3.00 per share-
Authorized 8,000,000 shares
Outstanding 6,375,000 shares in 1966 and
3,187,500 shares in 1965 . .... .... . ...... . ... . .
Capital surplus . ............... .. . . .. . .......... . ..... .
Retained earnings (of which $31,349,000 is restricted as
to the payment of cash dividends under terms of
credit agreements) . .. . . ...... . ........ . ....... . .. .
PURCHASE COMMITMENTS (Note 2)
The accompanying notes are an integral part of these balance sheets.
$
1966
1,891,000
26,413,000
5,108,000
1,683,000
12,685,000
47,780,000
88,352,000
44,891,000
9,652,000
54,543,000
19,125,000
22,450,000
82,100,000
123,675,000
$314,350,000
$
1965
4,135,000
19,532,000
3,509,000
1,646,000
8,275,000
37,097,000
51,449,000
40,725,000
6,826,000
47,551,000
9,562,000
22,450,000
63,165,000
95,177,000
$231,274,000
13
DEL TA AIR LINES, INC.
STATEMENTS OF INCOME FOR THE YEARS ENDED JUNE 30, 1966 AND 1965
14
OPERATING REVENUES:
Passenger .......................... ..... .... ..... ... .
Cargo .... . .............................. ..... . ...... .
Other ........................................... . ... .
Total operating revenues .......... ........... . . ..... .
OPERATING EXPENSES:
Flying operations . . ....... . .......... ................ . .
Maintenance ....................................... .. .
Aircraft and traffic servicing . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Promotion and sales . . .................... ... .. .. .. .. . .
Depreciation ... ... ..................... ..... .. . ...... .
Passenger service . ......... . ...... . ....... . ... . . . ..... .
General and administrative .. .. ..... .. ... ... ..... . .. .. . .
Total operating expenses ...... . .. . ...... ..... . . .. .. . .
Income from operations before income taxes ........... .
OTHER EXPENSE (INCOME):
Interest expense (less capitalized interest on advances for
flight equipment-$1,288,000 in 1966 and $542,000
in 1965) ............... .. . ...... .. . ............. .. . .
Other-net .............. . ......................... .. .
Total other expense ................................. .
INCOME BEFORE INCOME TAXES . ..... .. ........... .
PROVISION FOR INCOME TAXES .... .. ... .. . .. ...... .
NET INCOME, before gain on sale of aircraft . .. ... . .. . . .. .
GAIN ON SALE OF AIRCRAFT, less taxes . .. .. ......... .
NET INCOME . ...... ... ............ .. .. .. . .. ....... . . .
The accompanying notes are an integral part of these statements.
1966
$291,350,000
24,039,000
3,541,000
318,930,000
67,093,000
53,626,000
43,563,000
30,286,000
26,280,000
24,569,000
7,675,000
253,092,000
65,838,000
2,435,000
(759,000)
1,676,000
64,162,000
30,170,000
33,992,000
562,000
$ 34,554,000
1965
$234,036,000
19,620,000
3,804,000
257,460,000
55,631,000
47,315,000
35,722,000
26,949,000
22,182,000
19,010,000
6,322,000
213,131,000
44,329,000
2,411,000
(536,000)
1,875,000
42,454,000
20,051,000
22,403,000
602,000
$ 23,005,000
STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED JUNE 30, 1966
BALANCE JUNE 30, 1965 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 63,165,000
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,554,000
97,719,000
Deduct:
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,056,000
Transfer to common stock in connection with a 2-for-1 stock split on
December 13, 1965 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,563,000
BALANCE JUNE 30, 1966. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 82,100,000
STATEMENTS OF SOURCE AND DISPOSITION OF FUNDS
FOR THE YEARS ENDED JUNE 30, 1966 AND 1965
1966 1965
FUNDS PROVIDED BY:
Net income . . . . .. . .... .. . . . . .. . . . . .. . .. . ... .. .. . . . ... . $ 34,554,000 $ 23,005,000
Add non-cash expenses:
Depreciation .. . ....... . ...... .. . . .... .. . . .. .... . . .. . 26,280,000 22,182,000
Deferred Federal income taxes . . . . ......... ..... .. . . . . 4,166,000 3,601,000
Investment credit-net ........ . .... .. .. . . ... . .. . . . . . 2,826,000 2,815,000
Other . . . ... . . . ... ........ . . . ... . . .. . . ..... .. .... . . . 1,108,000 909,000
Total from operations . ... . . .. ....... . . ..... . .. .. . . 68,934,000 52,512,000
Financing under-
Installment purchase agreement ....... . . ... . . . ... .... . 1,269,000 10,842,000
Bank credit agreement .... . .. ... . .. ...... . . . .. . ..... . 45,000,000
115,203,000 63,354,000
FUNDS USED FOR:
Flight equipment additions, including advances .. . . . .. ... . 71,677,000 29,206,000
Deltamatic Reservations System . .... .. ... ...... . . .... . . 1,404,000 12,014,000
Other property and equipment additions .... . .... .. . . . .. . 5,143,000 2,281,000
78,224,000 43,501,000
Reduction of long-term debt . ... ... . . .. .. . . .. . . . . . . . . .. . 9,366,000 7,073,000
Cash dividends .... . . ....... .... . .. . .. .. . . . .... . . . . . .. . 6,056,000 4,845,000
93,646,000 55,419,000
INCREASE IN WORKING CAPITAL .... . ... .. .... . . . . . . $ 21,557,000 $ 7,935,000
WORKING CAPITAL AT END OF YEAR . ... .. .. . . . ... . $ 39,870,000 $ 18,313,000
The accompanying notes are an integral part of these statements.
DEL TA AIR LINES, INC.
15
DEL TA AIR LINES, INC.
16
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1966
1. LONG-TERM DEBT:
The Company's long-term debt of $90.2 million (in-
cluding current maturities) consists of the following:
(a) $45 million due banks under a revolving credit
agreement terminating during 1970 ($6.3 million
of which was used in June 1966 to prepay notes
due banks under a previous loan agreement).
Interest on outstanding borrowings during the
revolving credit period is at the prime rate
through June 30, 1967,and % above the prime
rate thereafter,
(b) $35 million due insurance companies under 6 %
unsecured notes repayable on a semiannual
basis during the period 1968-1974, and
(c) $10.2 million due the manufacturer of the Delta-
matic Reservations System repayable in quar-
terly installments (including 4 % interest) of
$576,000.
AUDITORS' REPORT
2. FLIGHT EQUIPMENT
PURCHASE COMMITMENTS:
The Company has outstanding purchase commit-
ments for the acquisition of six Douglas DC-8 Fanjet
aircraft, thirty-four Douglas DC-9 Twin-jet aircraft
and three Lockheed L-100 airfreighters which will
require the expenditure of approximately $165
million subsequent to June 30, 1966.
3. INVESTMENT CREDIT:
The investment credit, all of which has been utilized
to reduce the Company's Federal income taxes
payable, is being amortized to income over the life
of the related properties.
ARTHUR ANDERSE & Co.
A TLANTA, GE OR G I A
To the Stockholders and Board of Directors,
Delta Air Lines, Inc. :
We have examined the balance sheet of Delta Air Lines, Inc. (a Louisiana corporation) as of June 30,
1966, and the related statements of income, retained earnings and source and disposition of funds 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 circumstances. We have previously examined and reported on the financial
statements for the preceding year.
In our opinion, the financial statements referred to above present fairly the financial position of Delta
Air Lines, Inc. as of June 30. 1966, and the results of its operations and the source and disposition of funds
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 10, 1966.
.. ,
DELTA'S STORY
TO THE PUBLIC
Oclta senicc "ill put
a smile on anitody ...
~
'.~~
',~
~'.".?S1.'~~o.dJ,)".., __ ,.,
,1u1 p,,,,.1 .. , "''''" ,m~ ...,,1 ,,.. O.lt
During the past year Delta's advertising
helped win leadership on the highly compet-
itive Midwest-Florida route for the seventh
consecutive season, and contributed to gains
on all route segments. Also outstanding was
the campaign to launch the Early Bird ser-
vice in Atlanta. Travel habits were changed
almost overnight as the public recognized
the many advantages of the new service and
Delta's dominance of the Atlanta market
was substantially increased.
Wmter after winter after winter
most people
jetDelta
to Florida!
Catch the Big One ... catch a Delta Jet!
n.t1121N1rurround1wn-q,IHhedFlondl11,asp1dcd1ththnllsu
1hcc:almduofc,ml)uh(lrcfornonfi1hll'llllitfcAndl)du,
rn,;,l a1t1llsodth&hllilll)na.1"1lhmort 811Jcuthiln1ny01ht1111
bnc MtnllilOOcUcGournw:ttp1Lt1cand1hou1l11ful,pcnonal
mot lllal CUll<t'I on )"OIi Fam,ly P1111 ia>inp C~f) cby of the v.ul
All~cnd.1IQIJ1ll<Nlorcdfor11UWlll,:,C,,..1'\IOIUHuu
DELTA\IATIC.c:aUf16-S)00011yowTmdApl
\Vmtcr after winter after winter
most people
jetDelta
to Florida!
Mi )our golf' f1sh111g" \\ a.1c1 ~poru" Yearn for somcwum sunshmc?
rhcn doas most M1d11, cs1cmcrs h11c doncc,cry 11,m1cr \.Ince the
fir1LJCl Takc181gDch.aJcttol1ond1 Dcltahilllhcmoun1ghlS
mpcal",t.ason ;1llb1g4-engmc~li supcrbGourmctmcmn
a.nd1hatucraor,.hnaf)'facullyfora,mg11Cnumcpcnonal
scr1~ II> Dclt.f\f~m1lyPbnand~c Wca~ptallmaJor
aahl c;mls Fo, mmn, fntl'VillllOAS thru DELTAMi\TIC
e2illFl 6-5JOO,orsce)OUfTr.llCIAcc:n1
Quickest way
to answer
a distant
call to arms ...
Jet there
on Delta!
M,h _ _,_ .. _ _ _ _
.., _ _ Doflo, _ _ , _ , _
- ..... JO'l, ..... ~~
..... 111< ..........
-ni..-
> _ _._._Joo~~s.-,r-
_,_,.ut __ '!!
DELTA
faery morning from 8:1
5 to 9:1
5
we read our fan mail. ..
lo ., r" ,.,... ,,, 1u11"~>)., ,11
""l p l,fl-<l1 ,i.;1,,--.,., l\cl\l~ !.;
11<11"-''"'"'''"""'u e"
... , __ ,,."' r,
The whole
town's talking
about Delta's
"Early Birds"
17
DELTA AIR LINES, INC.
10 YEARS OF GROWTH YEARS ENDED JUNE 30
Dollars expressed in thousands except per share figures
Operating revenues
Passenger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mail . . . . .. .. . ..... ... . .. .... . . . . . . . . . . . ......... .....
Freight .. . ..... .. . . . . . . . . ... . . ...... .. ..... . ... '
. . .. . .
Express . .... . .. . .. .. ...... ... ..... .. . . ...... . ........
All other . ... . .... .. . . .................. . ...... . . .. . . .
Total operating revenues . .. . .. ...... . . ... ..... . .. . ..... . .. .
Opera ting expenses . . . . . . . . . . . . . . . . . . ....... . .......... . .. .
Operating income .. . ...... . ... . . ..... . '
. . . . .. ' . '
.... . ......
Non-operating expense-net . . .... ... ....... .. . . ... . .. . . . ...
Net income before taxes . . ............... . .. . .... . .. . . .. ....
Taxes on income . . ..... . ....... . .. . .. ... ..... .. . . ........ .
Net income before gain on sale of aircraft .. . . .. .. . . . . . . .. ....
Gain on sale of aircraft, less taxes . . .. . ... . .. . ... . ... . ... . ...
Net income and gain on sale of aircraft . . . . . . . . . . . . . . . . . . . . . . .
Per share of stock outstanding at year end* ....... . .. . . .. .
Dividends paid . . . . ... . . ......... ... . ...... . . . ..... . .. .. ...
Dividends paid per share* .... .. . ....... ... .... '
... . ....
Total assets . . . . . . . . . . . . . . .. .... . . .. . . .. . . . ....... '
. .. . . .. '
Stockholder equity ...... . ..... . .. .. . . ... . . ...... . .. . ......
Stockholder equity per share* . . .. '
........ . . . .. . . '
..... . ..
Shares of common stock outstanding at year end* ..... . ..... . .
Revenue passengers carried . . . . . . . . . . .... . . . ........ '
... . ...
Revenue plane miles (000) .... . ... . . ......... . ...... .. .....
Available seat miles (000) ..... . . .. ....... . ......... .. ..... .
Revenue passenger miles (000) . . .. . .. .......... ..... . .. .....
Passenger load factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available ton miles (000) .. . ..... .. .... . ... .. ... . . . . . .
. '
. .. .
Revenue ton miles (000) . . .. ....... . . .. .. . . . '
.. .. . . . '
....
Passenger revenue per passenger mile . ...... . ... '
. . .... . . '
Operating expenses per available seat mile ...... .... . . ... . ....
Operating expenses per available ton mile .. . . ... . . ... .. ......
*Adjusted to reflect a ll stock splits.
18
36
32
28
24
20
16
12
1966
$291,350
6,926
13,902
3,211
3,541
$318,930
253,092
$ 65,838
1,676
$ 64,162
30,170
$ 33,992
562
$ 34,554
$5.42
$ 6,056
$0.95
$314,350
$123,675
$19.40
6,375,000
7,556,422
84,835
8,196,349
4,997,958
60.98%
1,090,282
569,625
5.83
3.06
23.21
TOTAL EARNINGS ( In Million s of Dolla r s)
~
I
I
I
I
,
'
I
I
~"
,,,,
~
,,
I
1/
~ ~ 1...,,11"""'
.........
,,
1965 1964
$234,036 $205,346
5,176 4,299
11,616 8,869
2,828 2,396
3,804 3,762
$257,460 $224,672
213,131 189,871
$ 44,329 $ 34,801
1,875 2,584
$ 42,454 $ 32,217
20,051 16,523
$ 22,403 $ 15,694
602
$ 23,005 $ 15,694
$3.61 $2.46
$ 4,845 $ 3,570
$0.76 $0.56
$231,274 $194,241
$ 95,177 $ 77,017
$14.93 $12.08
6,375,000 6,375,000
5,964,269 5,233,548
73,664 65,815
6,793,654 5,582,349
3,855,012 3,353,842
56.74% 60.08%
907,014 740,852
442,239 378,465
6.07 6.12
3.12 3.38
23.50 25.63
0
REVENUE PASSENGERS CARRIED
(In M ilhons)
~"
I/
/
__ ,,
-i..,,---
--i..--'
,I
I
II
_,,
57 58 59 60 61 62 63 64 65 66
1963 1962
$191,355 $155,994
4,483 3,414
8,305 5,814
2,280 1,669
3,650 2,886
$210,073 $169,777
177,622 154,671
$ 32,451 $ 15,106
3,155 2,862
$ 29,296 $ 12,244
15,472 6,579
$ 13,824 $ 5,665
1,320
$ 13,824 $ 6,985
$2.17 $1.10
$ 2,550 $ 1,520
$0.40 $0.26
$181,433 $158,088
$ 64,893 $ 53,619
$10.18 $8.41
6,375,000 6,375,000
4,606,367 3,768,707
61,242 55,713
4,953,787 4,123,318
3,004,157 2,393,991
60.64% 58.06%
648,185 542,232
342,661 269,044
6.37 6.52
3.56 3.74
27.40 28.52
40
35
30
25
20
15
OPERATING EXPENSES
PER AVAILABLE TON MILE (In Ce nts)
-- .........
--- i""""oi,,,,
..........
"- -
5.4
4.8
4.2
3.6
3.0
2.4
1.8
1.2
.6
0
REVENUE PASSENGER MILES (In Billions)
J
I
II
~
I/'
.JI'
TOTAL- .J
.,
~
~Ill"'
i.....,,.-- JET
i..----
~--
~,.._ ....
PI STON -
57 58 59 60 61 62 63 64 65 66 57 58 59 60 61 62 63 64 65 66
1961 1960 1959 1958 1957
$134,946 $109,672 $ 94,062 $ 80,217 $ 71,873
2,579 2,140 2,152 1,796 1,636
4,070 4,250 3,879 2,955 2,231
1,408 1,362 1,206 953 1,016
3,129 2,767 2,506 2,252 1,840
$146,132 $120,191 $103,805 $ 88,173 $ 78,596
134,431 113,460 94,420 85,631 72,511
$ 11,701 $ 6,731 $ 9,385 $ 2,542 $ 6,085
2,733 1,313 554 600 556
$ 8,968 $ 5,418 $ 8,831 $ 1,942 $ 5,529
4,842 2,735 4,769 1,010 2,990
$ 4,126 $ 2,683 $ 4,062 $ 932 $ 2,539
526 156 131 83
$ 4,652 $ 2,839 $ 4,062 $ 1,063 $ 2,622
$0.83 $0.51 $0.73 $0.19 $0.47
$ 1,346 $ 1,346 $ 673 $ 1,010 $ 1,346
$0.24 $0.24 $0.12 $0.18 $0.24
$134,938 $121,890 $ 95,427 $ 80,941 $ 66,931
$ 41,056 $ 38,902 $ 37,410 $ 34,020 $ 33,966
$7.32 $6.93 $6.67 $6.07 $6.05
5,611,172 5,611,168 5,611,108 5,610,226 5,609,720
3,569,778 3,241,511 2,988,241 2,728,220 2,572,982
49,455 49,405 46,022 44,972 41,671
3,389,547 3,027,450 2,622,740 2,479,428 2,206,408
2,034,047 1,757,208 1,554,630 1,408,857 1,299,482
60.01% 58.04% 59.28% 56.82% 58.90%
442,251 387,552 324,018 301,105 260,431
223,592 195,373 174,936 156,332 141,861
6.63 6.24 6.05 5.69 5.53
3.95 3.74 3.58 3.43 3.28
30.40 29.28 29.14 28.44 27.84
19
DELTA TICKET OFFICES
City Ticket Offices Reservation Telephone LOS ANGELES 529 W. Sixth Street ..... . ... . ..... . . MAdison 0-1050
ALEXANDRIA Airport ................. . ....... .. .. . .. .. 442-9555
ASHEVILLE Lobby, Battery Park Hotel. ....... .. . .. ALpine 2-7601
12 Battery Park Avenue
BEVERLY HILLS Beverly Hilton Hotel ......... . CRestview 3-1813
HOLLYWOOD Hollywood Roosevelt Hotel ....... . MAdison 0-1050
LONG BEACH Jurgens Trust Building . .......... NEwmark 9-4000
ATLANTA F~ton ational Bank Bldg. ; Dinkler and
i 521-3000
Biltmore Hotels; Merchandis Mart Bldg. J
ONTARIO Ontario International Airport ... .... ........ ZE 2-7803
ORANGE 120 Town & Country Drive ... .. . . ........... 534-8468
AUGUSTA Augusta Town House ......................... 798-7000 PASADENA 700 E. Colorado Blvd ..... . . . ... .. .. SY camore 5-0449
AUSTRALIA / NEW ZEALAND Bligh House SEPULVEDA 8527 Sepulveda Blvd. ..... . .... . .. ST 2-7551
46 Bligh treet,
ydney, Australia .. . ... . ....... 25-6585
BALTIMORE Lord Baltimore Hotel . . . . . . . . . . . . . . . Outhfield 6-2100
BATON ROUGE Lobby, Capitol House Hotel .......... ELgin 6-4333
BEAUMONT Airport . . . . . . . . . . . . . . . . . . . . . . . .... RAndolph 2-34 71
BIRMINGHAM 2002 Fifth Ave., North . . .. . ... . .. .. .. .. .. . 592-9601
LOUISVILLE Shop 102, Starks Bldg .. . .. ...... . ........... 584-3142
MACON Lobby, Hotel Dempsey .. . ... .. .... . ............ 788-3363
MEMPHIS Peabody Hotel. . . . . . . . . . . . . . . . . . . . . . 398-9211
MERIDIAN Airport . . . . . . . . . . . . . . . . . . . . . . . . .... .. .. 482-3141
MIAMI Columbus Hotel; Ashe Bldg., U. of Miami .. FRanklin 3-0441
MIAMI BEACH 1632 Collins Ave. and 230 71st St . .. . FRanklin 3-0441
BRUNSWICK Airport . . ........ . ...... .. ... . .. .. .. .. .. .. 638-3631
CARACAS, VENEZ. Edificio Roraima ....................... 339-349
and Macuto- heraton Hotel. ............ 81-21-84
CHARLESTON Lobby, Francis Marion Hotel. .............. 744-2567
CHARLOTTE 201 S. Tryon t. (Cutter Building) ........... 372-3000
CHATTANOOGA Lobby, Hotel Patten .................. ... 265-3631
CHICAGO 67 East Monroe, Conrad Hilton Hotel } .
and 1649 Orrington in Evanston Financial 6-5300
CINCINNATI heraton-Gibson and Netherl'd-Hilton Hotels . 241-1700
CLEARWATER Tampa International Airport ... .. .. .. ...... 446-8318
COLUMBIA Lobby, Wade Hampton Hotel. .... .. . ..... SWift 4-3000
COLUMBUS, GA. Ralston Hotel . . .. .. .. ... . .. .. .. .. .. ... . 324-3531
COLUMBUS, OHIO Lobby, Deshler Cole Hotel .. .... . .. .. .. 221-6881
DALLAS 1415 Main St., ' FL d 7 5461
tatler Hotel Lobby ; eetwoo -
DAYTON Sheraton-Dayton Hotel . . . . . . . . . . . ... 223-7141
DETROIT 1205 Washington Blvd. and Lobby, I
General Motors Bldg.
J
Cobo Hall (During Major .. . WOodward 5-3000
Conventions)
EVANSVILLE Lobby, McCurdy Hotel . . . . . . . . . . . . . 425-9023
FORT LAUDERDALE 10 S.E. Sixth Avenue .... . .. JAckson 4-0331
FORT WAYNE Lobby, Van Orman Hotel. .. . ..... .. 742-2201
MILWAUKEE 718 N. Plankington Ave. . . ... . .. .... Division 2-4675
MONROE Lobby, Frances Hotel . . . . . 387-1900
MONT EGO BAY, JAMAICA Casa Montego Hotel. ..... 2811
MONTGOMERY Lobby, Jefferson Davis Hotel . . . 263-6404
NEW ORLEANS Sheraton-Charles and Roosevelt Hotels ..... 529-2431
NEW YORK Rockefeller Center; Airlines Building; }
100 Broadway; Lobby, Statler Hotel;
East Side Terminal; West Side
Terminal; 635 Madison Ave.; 200 PLaza 1-6600
Livingston St., Brooklyn;
35 Mamaroneck Ave., White Plains
WESTCHESTER . . . . . . . . . . . . . .. .... White Plains 6-1626
NASSAU AND SUFFOLK . . .... . .. .......... IVanhoe 1-6811
NEWARK 3 Commerce Street . . Mitchell 2-2228
ORLANDO 421 East Central Blvd. (Cherry Plaza Hotel). CHerry 1-4531
CAPE KENNEDY 1275 North Atlantic Ave. . . 262-4520, 636-3144
PADUCAH Airport . . . 443-1732
PHILADELPHIA Bellevue Stratford Hotel . . . . SAratoga 7-9900
PORT ARTHUR Airport .... . . RAndolph 2-3471
SAN DIEGO U.S. Grant Hotel . . . . . . . . . . . . . . . . .... 239-2345
SAN FRANCISCO Sheraton-Palace Hotel; }
Downtown Airline Terminal . . . . 761-4000
376 Post Street (Union Square)
FORT WORTH Lobby, Hotel Texas . . . . . . . . . EDison 2-7871 OAKLAND 1922 Broadway . . . . . TEmple Bar 4-6680
HOT SPRINGS Airport . . . . . . . . . . . . . . . . ... . .. . 623-1671
HOUSTON Rice and Shamrock-Hilton Hotels ... . .... CApitol 5-1361
INDIANAPOLIS Lobby, Claypool Hotel ............. MEirose 4-3200
JACK.SON Heidelberg Hotel ....... .. .. ... .. . . .. . .. . .. . .. 939-5200
JACKSONVILLE Hotel Robert Meyer . . ..... . ..... ELgin 3-3171
KANSAS CITY Muehlebach Hotel . . . . . . . . . . . ..... GRand 1-7733
SAN JUAN, PUERTO RICO 311 Recinto Sur . . .. . .. . ....... 791-0045
SAVANNAH Manger Hotel. .... ADams 3-0267
SHREVEPORT Captain Shreve Hotel . . . . . . . 425-3~32
SPRINGFIELD Airport . . . . UNiversity 6-1951
ST. LOUIS Lobby, St. Louis Gateway Hotel . . . MAin 1-7580
ST. PETERSBURG Tampa International Airport . . . .... 896-7141
KINGSTON, JAMAICA Lobby, Myrtle Bank Hotel . . .. 24816
KNOXVILLE Farragut Hotel . . . . . . . . . . . . . . . . . 577-6611
LAS VEGAS Sahara Hotel ............... .. ... . .... .. . . .. 382-0077
TAMPA 500 Florida Ave. (Hillsboro Hotel). . 877-8111
TOKYO, JAPAN Imperial Hotel, Room 158 . . ... . ........ 502-4166
TOLEDO Commodore P erry Hotel Arcade . . . 244-8661
LEXINGTON Airport . . . . . . . . . . . . . . 254-5569
LITTLE ROCK Lobby, Coachman's Inn . . . . .... FRanklin 6-3141
LONDON, ENGLAND 35 Piccadilly (European Sales Office) . REG 3791
WASHINGTON, D.c. 1605 K Street, N.W. and l 296 7000
Washington Hotel f -
WEST PALM BEACH Holiday Inn (100 Datura Street) . .... .. 832-6411
20
BOARD OF DIRECTORS
C. E. WOOLMAN, Chairman, Atlanta, Georgia
R. W. FREEMAN, Chairman of the Finance Committee,
New Orleans, Louisiana
R. W. COURTS, Atlanta, Georgia
C. H. DOLSON, Atlanta, Georgia
EMERY FLINN, Miami, Florida
EDWARD H. GERRY, New York, New York
CHARLES H. KELLSTADT, Miami, Florida
JOHN R. LONGMIRE, St. Louis, Missouri
R. S. MAURER, Atlanta, Georgia
T. M. MILLER, Atlanta, Georgia
WINSHIP NUNNALLY, Atlanta, Georgia
CARLETON PUTNAM, Washington, D. C.
GEORGE M. SNELLINGS, JR., Monroe, Louisiana
OFFICERS
C. E. WOOLMAN
Chairman of the Board and
Chief Executive Officer
C.H. DOLSON
President
T. M. MILLER
Executive Vice President-Traffic and Sales
W. T. BEEBE DAVID C. GARRETT, JR.
Vice President-Personnel Vice President-Operations
ROBERT OPPENLANDER PAUL W. PATE
C. H. DOLSON, President
ROBERT L. GRIFFITH
Vice President
Vice President-Finance and Treasurer Vice President-Properties
R. S. MAURER
Vice President-
General Counsel and Secretary
CHARLES P. KNECHT
Assistant Vice President-Sales
R. H. WHARTON C. B. WILDER
CATHERINE FITZGERALD
Assistant Treasurer
Assistant Vice President-Personnel Assistant Vice President-
Operations-Technical
J. R. HOWELL HUGH H. SAXON
Assistant Treasurer Assistant Treasurer
TRANSFER AGENTS: The Citizens & Southern National Bank, Atlanta, Georgia
and The First National City Bank, New York City
REGISTRARS: Trust Company of Georgia, Atlanta, Georgia
and Morgan Guaranty Trust Company of New York, New York City
COMMON STOCK: Listed on the New York Stock Exchange
AUDITORS: Arthur Andersen & Co.
ANNUAL MEETING: October 27, 1966, Monroe, Louisiana
DELTA AIR LINES , INC ., GENERAL OFFICES, ATLANTA AIRPORT, ATLANTA, GEORGIA