Del,a Air Lines, Inc. ^967 Annual Report 
 A memorial...to C. E. Woolman 
Employees of Delta Air Lines gave their time and skills 
to completely recondition this 1925 Huff-Daland duster, which 
was then presented to the Smithsonian Institution as a memorial 
to C. E. Woolman, founder of Delta Air Lines, Chairman of the 
Board and Chief Executive Officer at the time he passed 
away last September. 
 Delta Air Lines, Inc. 1967 Annual Report 
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 ex 
pressed in thousands except per share figures. 
1967 1966 
Per Cent 
Change 
Operating Revenues $397,836 $318,930 +25% 
Operating Expenses $308,737 $253,092 +22 
Net Income $ 49,190 $ 34,554 +42 
Shares Outstanding at year end. . . 
6,375,000 6,375,000 -- 
Earnings Per Share $7.72 $5.42 +42 
Total Stockholder Equity $166,490 $123,675 +35 
Stockholder Equity Per Share $26.12 $19.40 +35 
Revenue Passengers Carried 9,422,422 7,556,422 +25 
Available Seat Miles (000) 9,687,337 8,196,349 +18 
Revenue Passenger Miles (000). . . . 
6,415,467 4,997,958 +28 
Passenger Load Factor 66.23% 60.98% + 9 
1 
 Report to the Stockholders 
 C. H. Dolson, President 
Delta Air Lines, Inc. 
Fiscal 1967 was an excellent year for Delta--an excellence measured tangibly 
by the new highs in sales and in earnings. 
In summary, Delta carried a record 9.4 million passengers over a record 
6.4 billion revenue passenger miles. Net earnings were a record $49,190,000 
or $7.72 per share including a $2.4 million gain on the disposition of flight 
equipment. 
These records were achieved despite costly and repeated delays in new 
aircraft deliveries. Three 195-passenger Super DC-8's, originally ordered to 
service Delta's peak 1966-67 winter traffic to Florida and the Caribbean, 
were delivered after the peak had ended. Delayed deliveries of the Super 
DC-9's required a continuation of the more costly piston services and a re 
lated delay in the stimulating effect of new jet service to many communities. 
For the second half of the fiscal year, an equivalent of six jets were not avail 
able for use due to the cumulative delivery delays. The impact of these de 
lays was reflected in less than planned schedule frequencies and a slower 
expansion of jet services to each of the 61 communities Delta is privileged 
to serve. 
The losses due to delivery delays were partially offset by the extraor 
dinary income resulting from the strike last year against five domestic 
trunklines. Statistically, the strike effect is estimated at 271 million added 
revenue passenger miles, $17 million added revenues, $2.8 million added 
expenses, and an added $7.1 million or $1.11 per share in after-tax earnings. 
This estimate excludes probable additional benefits carried over to the post 
strike period. The demands of this difficult period required a maximum effort 
from our entire personnel. It is a tribute to their loyal support that thousands 
of air travelers completed their journeys. In recognition of this loyalty and 
support, the company paid to all employees a special bonus in the form of 
savings bonds valued at more than $1,250,000. 
Delay and strike--loss and gain--now mark the history of 1967. Yet 
neither deserve major prominence, for the year was a fine one in spite of the 
delays and would have been so without the strike. 
Far more significant for the future were the long range equipment plans 
completed during the past year. Each year, these plans must be expanded to 
cover longer time periods, due to the advent of the second generation jet 
equipment and the need to carefully plan the source of funds required to 
purchase planes costing $20 million to $40 million each. The major commit 
ment of the past year was an order for three Boeing 747 jets and an option 
for two more. Each of these jets has a design capacity of 490 passengers; 
however, Delta will ensure maximum comfort by limiting capacity to 374 
passengers. The 747 fleet will enter service along Delta's system during the 
fall of 1970. 
Well before that time, Delta will take delivery of its present orders for 
Super DC-8's and Super DC-9's. Including the twelve jets received during 
fiscal 1967 and all current options, the Delta passenger fleet of 1972 will 
total 133 jets capable of producing more than 22 billion seat miles annually 
or well over double fiscal 1967 production. Delta's total jet program, as 
currently planned through 1972, involves an outlay of more than a half 
billion dollars. The capital required will be provided from internally gen 
erated funds and a $175 million bank loan now being negotiated. 
3 
 fcfc5> 
'^\V V 
 Turning to the corporate organization, we welcome two new members 
to the Board of Directors. B. W. Biedenharn is a community leader in his 
home of Monroe, Louisiana, and a corporate head or director of various 
companies in the South and Southwest. W. T. Beebe, Vice President-Per 
sonnel for Delta, is now completing his twentieth year as an airline executive. 
At a special meeting of stockholders on June 28, 1967, approval was 
voted to change the state of incorporation from Louisiana to Delaware. 
This is a technical change only, for efficiency in the legal and tax structures 
of the company and in no way involved any move of personnel or property. 
You will be asked to vote at the regular annual meeting of stockholders, 
scheduled for October 26, 1967, on a stock split proposed by the directors 
at their meeting of July 27, 1967. The proposal is for an increase in total 
stock authorization from 8 million to 25 million shares and a 3-for-l stock 
split. If the proposal is approved, stockholders will receive two additional 
shares for each share held. The issue date proposed is December 1,1967 for 
stockholders of record on November 6, 1967. 
Delta is progressing with three broad programs to maintain and improve 
its competitive position. The long range flight equipment program, men 
tioned briefly above and described in more detail in a following section, will 
ensure the finest in jet service and comfort to those we serve. 
A second program is an expansion of Delta's routes, and services along 
these routes, to improve our marketing position and ability to serve. A fol 
lowing section provides highlights of current major proceedings. 
Probably most important is a continuous emphasis upon the develop 
ment of future managerial strength and a flexibility of organization necessary 
to meet the demands of growth and technical change. This program is based 
on a long standing policy of development and promotion from within. One 
of the notable examples was the recent establishment of a long range plan 
ning group reporting to the President and responsible for coordinating all 
plans developed by the various operating divisions. Delta's success has been 
built upon the competence and loyalty of all our employees. This strength 
provides a solid foundation for the supersonic age just ahead. 
September 18, 1967 
President and division heads 
of Delta: 
Seated: 
T. M. Miller 
Executive Vice President- 
Traffic & Sales 
C. H. Dolson 
President 
Robert Oppenlander 
Vice President- 
Finance and Treasurer 
Standing: 
W. T. Beebe 
Vice President--Personnel 
R. S. Maurer 
Vice President- 
General Counsel and Secretary 
David C. Garrett, Jr. 
Vice President--Operations 
C. H. Dolson 
President 
5 
  Revenues -- 
Operating revenues of $397,836,000 were an all-time high, and a 
25% increase over the previous highs set in the preceding fiscal year. 
Delta carried 9,422,422 revenue passengers on its domestic and inter 
national routes. This total, too, was an all-time record and a gain of 25% 
over passenger totals for 1966... a jump past both the eight and nine-million 
marks for the first time. Revenue passenger miles increased 28% to a new 
record of 6,415,467,000. 
The nine million passengers, and their joint travel of over six billion 
revenue passenger miles, produced $362,368,000 in revenue, a 24% gain 
over 1966. 
The passenger revenue growth was diluted by a 3% decrease in pas 
senger mile yield, due to the continuing effect of promotional and other 
discounted fares. It is not at all certain that the discounted fares produced a 
commensurate increase in Delta revenues; but, the benefits of air travel have 
been brought to an ever-increasing market, and young people and service 
men have been benefitted particularly. 
It is estimated that, exclusive of pre-strike and post-strike effects, the 
43-day stoppage of five major trunk lines in July and August added 271 
million revenue passenger miles and $17 million in revenues above Delta's 
forecast for the same period. 
Operating revenues from other sources--mainly freight, express, and 
mail --totaled $35,468,000. Freight and express ton miles increased 22% over 
1966, reflecting the additional capacity provided by the L-100 airfreighters. 
Mail ton miles were up sharply by 70%; and mail revenue reached 
$11,000,000 for the year. 
Expenses -- 
Operating expenses were up, with the expanded operations, to a 
new high of $308,737,000, or an increase of 22% over 1966. The increase 
includes an estimated $2.8 million directly attributable to the strike. 
Available ton mile costs increased 2% for the year, reversing a five year 
downward trend from the highs of 1961. Revenue ton mile costs declined 
6% reflecting the unusually high load factors achieved in 1967. The major 
causes for the overall leveling of unit costs are the inefficiencies and expen 
sive adjustments resulting from delayed deliveries of new jet aircraft. As 
more efficient stretch versions of DC-8's and DC-9's are introduced and the 
retirement of piston aircraft is completed, unit costs should resume a down 
ward trend from present levels. 
Earnings and Dividends --The year showed earnings of $49,190,000, or $7.72 
per share and was the twentieth consecutive year to show a Delta profit. 
The comparative figure for 1966 was $34,554,000. 
Earnings from operations were $46.8 million, equal to $7.34 per 
share. Net gain on the disposition of aircraft, and the insurance settle 
ment for a plane lost in training, was $2.4 million or 38 cents per share. 
In 1966, earnings from operations were $34.0 million or $5.33 per 
share; net gain on the disposition of aircraft was $562,000 or 9 cents per 
share, for combined earnings of $5.42 per share. 
The quarterly dividend rate during fiscal 1967 was 25<f per share; the 
$1 total for the year represented a payment of $6,375,000 in dividends. 
Delta DC-9's and Super DC-9's are 
fast replacing piston-type 
planes over the Delta system. 
7 
 Shortly after the end of the fiscal year, the directors voted an increase in the 
cash dividend to 30<f per share, for the September 1,1967 quarterly payment. 
Flight Equipment -- 
During fiscal 1967 Delta added to its fleet one standard 
DC-8, two Super DC-8's, six standard DC-9's, three Super DC-9's and three 
Lockheed L-100 cargo planes; the 15 planes cost $62 million including ad 
vance payments. 
At year-end Delta had on order, but not delivered, 43 Super DC-9's, 
ten Super DC-8's, three Boeing 747's, and one used standard DC-8 under a 
lease-purchase arrangement. 
Aircraft on option at the year-end were 12 Super DC-9's, six Super 
DC-8's, and two Boeing 747's. 
Soon after the end of the fiscal year, the options for five of the 12 Super 
DC-9's were exercised and a standard DC-9 was added under a short-term 
lease agreement. 
The present jet fleet will more than double by 1972 when a total of 136 
aircraft will be in service assuming all options are exercised. The following 
table shows the pattern of deliveries including options: 
Fleet Fleet 
Total DELIVERIES IN FISCAL YEARS Total 
Types of Planes 16/30/67 1968 1969 1970 1971 1972 6/30/72 
DC-8 135 Passengers 20 1* 21 
DC-8 195 Passengers 2 3 5 g** 18 
CV-880 96 Passengers 16 16 
DC-9 70 Passengers 14 1* 15 
DC-9 89 Passengers 3 19 27 9 58 
Boeing 747 374 Passengers -- 
3 2 5 
L-100 Air-Freighter 3 3 
Total 58 24 32 17 3 2 136 
*Lease and/or purchase. 
**One to six of these may be all-cargo DC-8-F. 
The provisions of the Federal tax laws which suspended the 7% invest 
ment tax credit on October 9,1966, and reinstated it on March 9,1967, make 
the credit applicable to all new equipment ordered by Delta during the fiscal 
year. This credit is being amortized to income over the life of the assets to 
which it applies. In fiscal 1967 $2.2 million of this credit was applied to in 
come and the amount still unamortized totaled $12,904,000 at year-end. The 
change in the law permitting the investment tax credit to be applied to 50% 
of taxes instead of 25% has no effect on Delta's position. 
During fiscal 1967 the Federal government through the Federal Aviation 
Administration awarded to Boeing and General Electric a contract to pro 
duce two prototype supersonic transports. Delta holds three delivery posi 
tions for these aircraft and has made an advance deposit of $300,000. An 
additional deposit of $300,000 will be made in November, 1967, to continue 
holding these positions until Delta can evaluate the prototype aircraft. In 
addition, the FAA has requested all carriers holding delivery positions to 
advance a million dollars per position as risk money to supplement the 
manufacturers' and Federal funds during prototype development. This 
Delta cabin service 
is a strong selling feature 
on all Deltaliner routes. 
8 
   Improved flight line equipment 
and methods provide more 
efficient servicing of Delta's 
expanding fleet. 
money will be recovered with interest if sufficient aircraft are sold to pro 
vide royalties to the government. Delta believes it must continue participa 
tion in this program to maintain its competitive position and has therefore 
contracted to advance the requested $3 million in 1968. 
As DC-9's have been added to the Delta fleet, DC-7's have been phased 
out and sold. The fourteen remaining at year-end will be phased out by 
February, 1968. Had DC-9 delivery delays not occurred, all DC-7's would 
have been displaced by this time and further significant economies of opera 
tion achieved. The 11 DC-6's and 17 CV-440's still in operation are pro 
grammed for replacement by early 1969. Piston aircraft will produce only 
6.2% of total seat miles in fiscal 1968 and 1.4% in 1969. 
Capitalization and Financing--At the end of fiscal 1966 a Revolving Credit 
Agreement for $45 million had been arranged with 23 banks to cover the 
period through 1970, during which period a quarter of a billion dollars of 
flight equipment had been ordered or optioned for delivery. The total 
amount in the credit was borrowed as of June 30, 1966. 
During the past fiscal year further orders and options for flight equip 
ment increased Delta's probable future capital outlays to a half billion 
dollars through 1972. It is estimated that internal cash generation from 
earnings, depreciation, and deferred taxes will still provide a substantial 
portion of this requirement. The balance will be supplied from a bank credit 
now being negotiated which will repay and terminate the 1966 Revolving 
Credit of $45 million and provide up to $175 million on a revolving basis 
through calendar 1969. At that point the outstanding balance will be con 
verted to a term loan. 
At the time of peak borrowing, at the end of 1969, if the entire $175 
million is outstanding, it is estimated that Delta's total long-term debt of 
$205 million will be well within acceptable debt-equity ratios for this in 
dustry. On June 30, Delta's long-term debt was only 52% of its equity, one 
of the lowest ratios in the industry, while many carriers had reached the 
150% to 200% range, including convertible subordinated debentures. 
Stockholder equity on June 30,1967 had reached $166,490,000 or $26.12 
per share, an increase of 35% over June 30, 1966. 
Facilities--A comprehensive program is under way to improve Delta's 
ground facilities. It is a sustained program, for new needs appear regularly. 
Most of the major construction is in the Atlanta area, including: 
A $7 million project for Delta gates at the Atlanta terminal. New ultra 
modern passenger gates are due for completion in mid-1968; the project will 
add 14 jetways for fast and convenient handling of passengers. 
A new Computer center. It will have 51,000 square feet of space, cost 
$1,375,000 and will permit consolidation of all system-wide data processing 
operations, including the Deltamatic Reservations System, Material Inven 
tory Control, Revenue Accounting and Cost Distribution. The building is 
50% larger than Delta's present facilities for computers. 
Training Center, for stewardesses, pilots and technical personnel. Work 
is well under way, on a location near the Atlanta Airport, with completion 
due in the summer of 1968. The 53,000 square foot facility is designed to 
11 
 house classrooms, conference rooms, technical libraries and will also pro 
vide a residence for stewardess trainees. 
Maintenance and Overhaul base expansion. This project, needed for 
the expanding jet fleet, will add 90% to the size of the general maintenance 
and overhaul base in Atlanta. It is also due for completion in mid-1968. 
In other cities, Delta is sharing in expansion and improvement of air 
port facilities. This, too, is a continuing program as traffic grows. Work has 
already started on facilities to handle the Boeing 747's scheduled for de 
livery in late 1970. 
Reservations offices are also being enlarged in many cities, and branch 
ticket offices opened to handle additional traffic. 
Passenger Fares -- 
Revenue per passenger mile continued its downward trend 
another 3% from 5.83<f to 5.65<? as the full impact was felt of excursion and 
youth fares, introduced late in fiscal 1966. In the 1966 report, the month of 
June, a month of heavy student and vacation travel, was used to indicate 
the trend in discount fares from 19.2% of total passenger miles in 1964, to 
36.6% in June, 1966. In June, 1967 this percentage had increased to 45.5%; in 
fact it averaged 35%, almost the June, 1966 level, for the entire fiscal year. 
The strike period in July and August of 1966 prevented an accurate 
assessment of the effect of youth and excursion fares on yields during this 
peak vacation period. The strike presumably camouflaged the full erosion 
of yield because the summer period in 1967 is experiencing a further sub 
stantial decline from strike levels. This is even true to the extent that some 
marketing analysts are beginning to question whether the promotional fares 
are developing sufficient new traffic to offset declines in yield. 
Present youth and excursion fares were originally scheduled to expire 
in December, 1966 and were to be re-evaluated as a part of a comprehensive 
fare study by the Civil Aeronautics Board. Because of the strike and other 
delays, these fares have now been extended, in the case of Delta and most 
Florida carriers, to April 27, 1968. The continued erosion of yield and up 
ward pressure on carrier costs which have taken place in the past year will, 
hopefully, be carefully evaluated before these fares are continued in their 
present form or before any further reductions in jet fares are suggested. 
The yield of 5.65<? experienced in fiscal 1967 represented a 15% decrease 
from its 1961 jet age peak or more than a $63 million fare reduction for 
passengers who flew on Delta in fiscal 1967. 
Personnel --Larger fleets and new flights require more employees to keep all 
services up to Delta standards; there were 1,858 additions to the payroll 
during the year to bring the year-end total to 14,829 employees. 
Employee salaries and related costs totaled $143,698,000 for the year, 
up 27% from the previous year's $112,844,000. 
An interesting note to the tempo of the times: Delta now permits stew 
ardesses to work after marriage. The airline now employs an average of 12 
stewardesses for every plane in the fleet--the Super DC-8's require six stew 
ardesses per flight segment--and the new rule enables Delta to keep these 
highly trained young women longer at their jobs. The rule is becoming gen 
eral in the industry. 
Speed of ground handling, as 
well as total lift of the L-100 
Hercules is a key to 
Delta's increased cargo sales 
during the past year. 
12 
   Air Celebrities: Human-sized 
"Early Bird" and "Owly Bird" 
originally starred in Delta TV 
commercials/ now make frequent 
guest appearances on television 
and at special public events. 
Services--The year included these highlights: 
Introduction of the Super DC-8, the world's biggest Jetliner. Its first use 
was on the route between New York, Atlanta, Dallas and California; Delta 
was the first airline to place this new jet in regularly scheduled transconti 
nental service. 
Introduction of an all-cargo fleet of Lockheed L-100 Hercules freighters. 
Delta was the first to operate these aircraft in scheduled domestic service. 
Extension of DC-9 service to six new cities and introduction of Super 
DC-9 service on many route segments. 
Expansion of night coach flights --"Early Bird" and "Owly Bird" ser 
vices--for greater utilization of equipment in off-hours. 
Delivery of the first Super DC-8's had been scheduled for the 1966-67 
Florida winter season. Chicago-Miami traffic represents a key market for 
Delta, but delayed deliveries made it more practical to inaugurate service 
with these planes on the Southern Transcontinental route. This equipment 
will provide additional services to Florida in the winter season of 1967-68. 
The all-cargo service with Lockheed L-100 freighters was quickly ex 
tended to 11 cities. There is now a transcontinental service between New 
York and Los Angeles-San Francisco, via Charlotte, Atlanta, New Orleans 
and Dallas. North-south runs between Miami and Chicago include Mem 
phis, Atlanta and Orlando, with flights timed for fast transfer at Atlanta. 
The L-100 has a cargo hold almost identical to the size of a standard 
rail freight car. Its key advantage is speed of cargo handling. It loads at 
waist-high level, needs no high lift fork trucks and has conveyor rollers for 
fast transfer of pallets from trailers with similar rollers. 
Delivery of additional DC-9's and Super DC-9's permitted extension of 
jet service to six additional Delta cities for the first time. But more impor 
tant, they permitted increased schedules for a strong traffic demand. Mem 
phis, for example, now has 23 DC-9 flights direct to 14 cities, plus its four- 
engined jet flights and piston service. Shreveport now has 16 DC-9 flights 
direct to 22 cities. The DC-9's are far more than just replacements for piston 
plane connecting flights. They have the speed, and short ground time, to 
make intermediate cities into terminals with a direct flight pattern all their 
own. The DC-9's show their value by having the highest load factor of any 
type of Delta passenger plane. 
In all, Delta now has jet service to 44 of the 60 airports currently served. 
Work of all the jets is shown in revenue passenger mile totals: the piston 
miles were down 17% but the system total was up 28%, due to the 38% in 
crease in jet production. 
The "Early Bird" promotion, concentrated in Atlanta and described in 
the 1966 report, has been expanded with an "Owly Bird" counterpart. These 
flights are generally in the 11:45 p.m. and 6:30 a.m. time areas, at night 
tourist rates. There are now "Early Bird" flights to 17 cities; "Owly Bird" 
flights to 24 cities. 
Work continues on improved ticketing and check-in services for the 
public. Delta stresses tickets by mail; payment can be made by return check 
or credit card number. With curbside check-in at most airports, the pas 
senger who has a valid ticket can by-pass the counter and go directly from 
car to loading gate for the flight. 
15 
 1929--Travelaire 6000: Six passengers, 90 miles per hour. 1970 --Boeing 747: 374 passengers, 625 miles per hour. 1974--Boeing SST: 350 passengers, 1,800 miles per hour. 
DETROIT 
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THRU JETS TO AND 
FROM EUROPE 
mm is 
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W. PALM BEACH 
FT. LAUDERDALE 
NASSAU 
TO CARACAS 
-- 
Present routes 
= Interchange service 
International routes 
applied for 
* 
Service temporarily suspended 
Regulatory Matters -- 
Transpacific Route Investigation: The CAB instituted this investi 
gation to examine the pattern of operations by United States air carriers throughout the 
Pacific area. Proposals in the proceeding involve air service between the United States 
mainland, on the one hand, and Hawaii and other areas of the North and South Pacific. 
Delta applications request operating authority between the co-terminal points of At 
lanta, Dallas/Fort Worth, Houston, New Orleans, Miami/Fort Lauderdale, San Fran 
cisco/Oakland, Los Angeles/Long Beach and San Diego, and the terminal point Manila, 
via Hawaii, Tokyo, Osaka, Seoul and Hong Kong. Briefs to the Examiner were filed in 
September, 1967, and final decision is about a year away. 
United States-Caribbean-South America Investigation: This extremely complex 
investigation involves air service needs between the United States, the Caribbean and 
South America. Delta seeks improvement of its Caribbean route authority through the 
use of Miami as a co-terminal along with New Orleans and Houston for its foreign and 
overseas operations, and by adding Nassau. Delta is also seeking authority to operate 
non-stop service between West Coast points and cities served by Delta in the Caribbean 
area at such time as increasing traffic demands would permit such operations on an 
economically feasible basis. Hearings have been held and the matter now stands sub 
mitted to a CAB Examiner. Decision is anticipated during 1968. 
16 17 
  Terminal expansion at Atlanta 
airport will provide a total of 
24 gateways needed to handle 
the heaviest traffic on 
Delta's entire system. 
Reopened Pacific Northwest-Southwest Service Investigation: This 
proceeding, involving the need for single-carrier service between the Pacific 
Northwest and the Southwest areas of the country was decided in part by 
award of long-haul routes to other applicants, but has been reopened to 
determine the need for service in the intermediate areas. Delta is vigorously 
prosecuting that portion of its application which relates to services between 
the Company's present system (and, in particular, New Orleans, Houston, 
and Dallas/Fort Worth) and the cities of San Antonio, Oklahoma City, 
Denver and Salt Lake City. Exhibits on this phase of the investigation were 
filed in August, 1967, and hearings are now in progress. 
Gulf States-Midwest Points Service Investigation: The CAB instituted 
this investigation to determine whether new and revised route authority is 
required in the Dallas-Detroit, Dallas-Kansas City, Dallas-St. Louis, Chi- 
cago-San Antonio, Detroit-San Antonio, Chicago-Nashville, Chicago-New 
Orleans, Chicago-Memphis, St. Louis-Houston, and New Orleans-Memphis 
markets. Delta is seeking new authority in the first six markets listed, and is 
seeking the addition of new intermediate cities in some of the other four 
markets. In the latter respect, service can be proposed to Cleveland, Co 
lumbus, Dayton, Indianapolis, Louisville, Huntsville and other points under 
the issues of this proceeding. Applications by other carriers for unnecessary 
trunkline duplication of the existing services of Delta and local service 
carriers in certain of these markets will be resisted. Direct Exhibits were 
filed September 5, 1967, and decision is over a year away. 
New York-Florida Renewal Case: During 1967 the CAB denied Delta's 
application for direct authority between Boston and New York, in the 
northeast, and Tampa and Miami in Florida, via various routings and in 
termediate points, and its request to eliminate a restriction which prohibits 
the carriage of traffic on through-plane service between the northeast and 
Florida via Atlanta. 
Twin Cities-California Service Investigation: In this proceeding hear 
ings have recently been completed before a Hearing Examiner on issues 
involving non-stop service between Minneapolis/St. Paul, on the one hand, 
and Los Angeles and San Francisco, on the other. A brief summarizing the 
Company's application was recently filed with the Hearing Examiner. It is 
possible that final decision in this proceeding will be arrived at during the 
calendar year 1968. 
Other Matters: During the year, Delta also has participated in numerous 
local service proceedings, primarily for the purpose of protecting its traffic 
from erosion through the grant of uneconomic operating authority to local 
service carriers. 
Also in 1967 the CAB indicated its intention to move forward with 
numerous investigations which will involve your company. The most promi 
nent of these are the Bermuda Service Investigation, the Southern Tier 
Competitive Nonstop Investigation, Omaha Service Investigation, Dallas/ 
Fort Worth-Phoenix Nonstop Case, and the Albuquerque Service Case. 
Thus during 1967 a large number of new proceedings were inaugurated 
by the Civil Aeronautics Board, which hold promise both for expansion of 
Delta's route system and for CAB consideration of additional operating 
authorizations in areas already served by the Company. 
19 
 DELTA AIR LINES, INC. 
BALANCE SHEETS June 30,1967 and 1966 
ASSETS 1967 
CURRENT ASSETS: 
Cash $ 7,888,000 
Short-term cash investments, at cost 32,830,000 
Accounts receivable 24,920,000 
Maintenance and operating supplies, at average cost 3,435,000 
Prepaid expenses, etc 1,958,000 
Total current assets 71,031,000 
PROPERTY AND EQUIPMENT: 
Flight 
Equipment 
Other 
Property and 
Equipment 
Cost-- 
1967 $383,268,000 $50,178,000 433,446,000 
1966 317,109,000 44,042,000 
Reserves for depreciation-- 
1967 156,529,000 20,306,000 176,835,000 
1966 140,469,000 16,506,000 
256,611,000 
Advance payments for new flight equipment 41,780,000 
298,391,000 
$369,422,000 
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 
20 
 DELTA AIR LINES, INC 
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 (Note 5) -- 
Authorized 8,000,000 shares 
Outstanding 6,375,000 shares 
Capital surplus 
Retained earnings (of which $47,787,000 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. 
1967 1966 
$ 3,448,000 
25,647,000 
6,554,000 
1,670,000 
13,046,000 
50,365,000 
$ 1,891,000 
26,413,000 
5,108,000 
1,683,000 
12,685,000 
47,780,000 
86,296,000 88,352,000 
53,367,000 
12,904,000 
66,271,000 
44,891,000 
9,652,000 
54,543,000 
19,125,000 
22,450,000 
19,125,000 
22,450,000 
124,915,000 
166,490,000 
82,100,000 
123,675,000 
$369,422,000 $314,350,000 
21 
 DELTA AIR LINES, INC. 
STATEMENTS OF INCOME for the years ended June 30,1967 and 1966 
1967 
OPERATING REVENUES: 
Passenger $362,368,000 
Cargo 31,638,000 
Other 3,830,000 
Total operating revenues 397,836,000 
OPERATING EXPENSES: 
Flying operations 81,175,000 
Maintenance 60,781,000 
Aircraft and traffic servicing 57,099,000 
Promotion and sales 39,067,000 
Depreciation 30,847,000 
Passenger service 31,326,000 
General and administrative 8,442,000 
Total operating expenses 308,737,000 
Income from operations before income taxes 89,099,000 
OTHER EXPENSE (INCOME): 
Interest expense (less capitalized interest on advances for 
flight equipment--$1,712,000 in 1967 and $1,288,000 
in 1966) 3,453,000 
Other--net (2,812,000) 
Total other expense 641,000 
INCOME BEFORE INCOME TAXES 88,458,000 
PROVISION FOR INCOME TAXES 41,670,000 
NET INCOME, before gain on disposition of aircraft 46,788,000 
GAIN ON DISPOSITION OF AIRCRAFT, less taxes 2,402,000 
NET INCOME $ 49,190,000 
PER COMMON SHARE: 
Before gain on disposition of aircraft $7.34 
Gain on disposition of aircraft, less taxes ,38 
Net income $7.72 
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 
$5.33 
.09 
$5.42 
22 
 DELTA AIR LINES, INC 
STATEMENTS OF RETAINED EARNINGS for the years ended June 30,1967 and 1966 
BALANCE AT BEGINNING OF YEAR 
Net income 
Deduct: 
Cash dividends 
Transfer to common stock in connection with a 2-for-l 
stock split on December 13, 1965 
BALANCE AT END OF YEAR 
1967 1966 
$ 82,100,000 $ 63,165,000 
49,190,000 34,554,000 
131,290,000 97,719,000 
6,375,000 6,056,000 
9,563,000 
$124,915,000 $ 82,100,000 
ears ended June 30,1967 and 1966 
1967 1966 
$ 49,190,000 $ 34,554,000 
30,847,000 26,280,000 
8,476,000 4,166,000 
3,252,000 2,826,000 
2,989,000 1,108,000 
94,754,000 68,934,000 
1,482,000 1,269,000 
-- 
45,000,000 
96,236,000 115,203,000 
98,901,000 71,677,000 
1,641,000 1,404,000 
4,985,000 5,143,000 
105,527,000 78,224,000 
3,538,000 9,366,000 
6,375,000 6,056,000 
115,440,000 93,646,000 
$ (19,204,000) $ 21,557,000 
$ 20,666,000 $ 39,870,000 
FUNDS PROVIDED BY: 
Net income 
Add non-cash expenses-- 
Depreciation 
Deferred Federal income taxes 
Investment credit--net 
Other 
Total from operations 
Financing under-- 
Installment purchase agreements 
Bank credit agreement 
FUNDS USED FOR: 
Flight equipment additions, including advances 
Deltamatic Reservations System 
Other property and equipment additions 
Reduction of long-term debt 
Cash dividends 
The accompanying notes are an integral part of these statements. 
23 
 DELTA AIR LINES, INC. 
NOTES TO FINANCIAL STATEMENTS June 30,1967 
1. LONG-TERM DEBT: 
The Company's long-term debt of $89.7 million (in 
cluding current maturities) consists of the following: 
(a) $45 million due banks under a revolving credit 
agreement terminating during 1970. Interest on 
outstanding borrowings during the revolving 
credit period is at the prime rate through June 30, 
1967, and xk% above the prime rate thereafter, 
(b) $35 million due insurance companies under 6% 
unsecured notes repayable in installments from 
April 1968 to October 1974 ($1.25 million pay 
able in fiscal 1968), and 
(c) $9.7 million due the manufacturer of the Delta- 
matic Reservations System repayable in quar 
terly installments (including 472% interest) of 
$646,000. 
2. FLIGHT EQUIPMENT PURCHASE 
COMMITMENTS: 
The Company has outstanding purchase commit 
ments for the acquisition of ten Douglas DC-8 fan- 
jet aircraft, forty-eight Douglas DC-9 twin-jet air 
craft and three Boeing 747 fanjet aircraft which will 
require the expenditure of approximately $297 
million subsequent to June 30, 1967. 
3. INVESTMENT CREDIT: 
The investment credit, all of which has been utilized 
to reduce the Company's Federal income taxes pay 
able, is being amortized to income over the life of 
the related properties. Such amortization was $2.2 
million in 1967 and $1.6 million in 1966. 
4. PENSION PLANS: 
The Company has pension plans covering substan 
tially all of its employees. Effective August 1966, all 
pension plans were made non contributory. The 
total pension expense amounted to $7.8 million in 
1967 and $5.6 million in 1966. All prior service costs 
under these plans are fully funded, and it is the 
Company's policy to fund each year's accrued 
pension cost. 
5. COMMON STOCK: 
On July 27, 1967, the Board of Directors proposed, 
subject to stockholder approval, (1) an increase in 
the authorized shares of common stock from 8 
million shares to 25 million shares, and (2) a 3-for-l 
stock split on December 1, 1967 to stockholders of 
record on November 6, 1967. 
REVENUE PASSENGERS CARRIED 
(In Millions) 
REVENUE PASSENGER MILES 
(In Billions) 
10 
Jet 
Piston 
500 
450 
400 
350 
300 
250 
200 
150 
100 
50 
OPERATING REVENUES & EXPENSES 
(In Millions of Dollars) 
Operating Revenues 
Operating Expenses 
58 59 60 61 62 63 64 65 66 67 58 59 60 61 62 63 64 65 66 67 58 59 60 61 62 63 64 65 66 67 
24 
 DELTA AIR LINES, INC. 
AUDITORS' REPORT 
Arthur Andersen & Co. 
Atlanta, Georgia 
To the Stockholders and Board of Directors, 
Delta Air Lines, Inc.: 
We have examined the balance sheet of Delta Air Lines, Inc. (a Delaware corporation) as of June 
30,1967, 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 pro 
cedures 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, 1967, and the results of its operations and the source and dispo 
sition 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 11, 1967. 
FLIGHT EQUIPMENT 
(In Millions of Dollars) 
500 
450 -- 
Cost 
-- 
()et aircraft) 
Net Book Value 
Depreciation 
EARNINGS PER SHARE* 
(In Dollars) 
10 
9 gm Earnings trom 
Operations 
58 59 60 61 62 63 64 65 66 67 
STOCKHOLDER EQUITY PER SHARE* 
(In Dollars) 
1 
--if 
--ill 
j, 
1111 
111+ 
111 11 
11 11 1J 
58 59 60 61 62 63 64 65 66 67 
*Adjusted to reflect all stock splits through June 30,1967 
25 
 10 YEARS OF DELTA AIR LINES GROWTH Years Ended June 30 
(Dollars expressed in thousands except per share figures) 
Operating revenues 
Passenger 
Mail 
Freight 
Express 
All other 
Total operating revenues 
Operating expenses 
Operating income 
Non-operating expense --net 
Net income before taxes 
Taxes on income 
Net income before gain on disposition of aircraft. . . 
Gain on disposition of aircraft, less taxes 
Net income 
Per share of stock outstanding at year end* 
Before gain on disposition of aircraft. . . 
Gain on disposition of aircraft, less taxes 
Net income 
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 
1967 
$362,368 
11,044 
16,840 
3,754 
3,830 
$397,836 
308,737 
$ 89,099 
641 
$ 88,458 
41,670 
$ 46,788 
2,402 
$ 49,190 
$7.34 
.38 
$7.72 
$ 6,375 
$1.00 
$369,422 
$166,490 
$26.12 
6,375,000 
9,422,422 
100,270 
9,687,337 
6,415,467 
66.23% 
1,304,889 
735,898 
5.659 
3.169 
23.669 
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 
$5.33 
.09 
$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 
5.839 
3.069 
23.219 
1965 
$234,036 
5,176 
11,616 
2,828 
3,804 
$257,460 
213,131 
$ 44,329 
1,875 
$ 42,454 
20,051 
$ 22,403 
602 
$ 23,005 
$3.52 
.09 
$3.61 
$ 4,845 
$0.76 
$231,274 
$ 95,177 
$14.93 
6,375,000 
5,964,269 
73,664 
6,793,654 
3,855,012 
56.74% 
907,014 
442,239 
6.079 
3.129 
23.509 
26 
'Adjusted to reflect all stock splits through June 30,1967 
1964 1963 1962 1961 1960 1959 1958 
$205,346 $191,355 $155,994 $134,946 $109,672 $ 94,062 $ 80,217 
4,299 4,483 3,414 2,579 2,140 2,152 1,796 
8,869 8,305 5,814 4,070 4,250 3,879 2,955 
2,396 2,280 1,669 1,408 1,362 1,206 953 
3,762 3,650 2,886 3,129 2,767 2,506 2,252 
$224,672 $210,073 $169,777 $146,132 $120,191 $103,805 $ 88,173 
189,871 177,622 154,671 134,431 113,460 94,420 85,631 
$ 34,801 $ 32,451 $ 15,106 $ 11,701 $ 6,731 $ 9,385 $ 2,542 
2,584 3,155 2,862 2,733 1,313 554 600 
$ 32,217 $ 29,296 $ 12,244 $ 8,968 $ 5,418 $ 8,831 $ 1,942 
16,523 15,472 6,579 4,842 2,735 4,769 1,010 
$ 15,694 $ 13,824 $ 5,665 $ 4,126 $ 2,683 $ 4,062 $ 932 
-- 
1,320 526 156 -- 
131 
$ 15,694 $ 13,824 $ 6,985 $ 4,652 $ 2,839 $ 4,062 $ 1,063 
$2.46 $2.17 $0.89 $0.74 $0.48 $0.73 $0.17 
-- -- 
.21 .09 .03 -- 
.02 
$2.46 $2.17 $1.10 $0.83 $0.51 $0.73 $0.19 
$ 3,570 $ 2,550 $ 1,520 $ 1,346 $ 1,346 $ 673 $ 1,010 
$0.56 $0.40 $0.26 $0.24 $0.24 $0.12 $0.18 
$194,241 $181,433 $158,088 $134,938 $121,890 $ 95,427 $ 80,941 
$ 77,017 $ 64,893 $ 53,619 $ 41,056 $ 38,902 $ 37,410 $ 34,020 
$12.08 $10.18 $8.41 $7.32 $6.93 $6.67 $6.07 
6,375,000 6,375,000 6,375,000 5,611,172 5,611,168 5,611,108 5,610,226 
5,233,548 4,606,367 3,768,707 3,569,778 3,241,511 2,988,241 2,728,220 
65,815 61,242 55,713 49,455 49,405 46,022 44,972 
5,582,349 4,953,787 4,123,318 3,389,547 3,027,450 2,622,740 2,479,428 
3,353,842 3,004,157 2,393,991 2,034,047 1,757,208 1,554,630 1,408,857 
60.08% 60.64% 58.06% 60.01% 58.04% 59.28% 56.82% 
740,852 648,185 542,232 442,251 387,552 324,018 301,105 
378,465 342,661 269,044 223,592 195,373 174,936 156,332 
6.129 6.379 6.529 6.639 6.249 6.059 5.699 
3.389 3.569 3.749 3.959 3.749 3.589 3.439 
25.639 27.409 28.529 30.409 29.289 29.149 28.449 
27 
 DELTA'S STORY TO THE PUBLIC 
To board approximately one million passengers 
per month, Delta advertising must reach a poten 
tial of many millions on a high frequency basis. 
Because each market is different, with its own 
patterns of flights, fares and departure times, Delta, 
for the most part, uses a retail selling approach, 
tailoring the advertising in each city to specific 
items instead of a general message to all markets. 
The major part of the advertising budget goes 
into newspapers... a powerful retail selling me 
dium. Delta uses more than 140 papers in on-line 
cities regularly and expands the schedules into 
connecting cities on a seasonal basis. 
Radio is another strong local medium; Delta 
uses more than 100 stations in 30 major markets. 
The saturation technique of scheduling commer 
cials is used and Delta will broadcast as many 
as 2,800 commercials in the 30 markets during a 
normal week. Television is used mainly on a local 
basis, again in the retail specifics. 
Magazines, the only national medium currently 
used by Delta, offer a highly selective means of 
reaching frequent users of air travel. About 9% of 
the budget is used in this field. 
Outdoor bulletins and 24-sheet posters are 
used in areas of heavy traffic. This utilizes about 
6% of the budget. 
"How come everyone's 
so nice to us Daddy; 
do they all know you?" 
Here\ thrift at both ends 
ofthe day;the choice Ls yours 
.-and so is the saving! 
28 
 No wonder most people 
jet Delta toFlorida... 
No wonder most people 
jet Delta toFlorida... 
Delta's got the 
best service by far! 
 DELTA 
Abo Jet Delta to Atlanta, Houston New Orleans, Memphis, St. Louis, Cincinnati, Birmingham, Louisville, Coitanbu, S.C., Jackson, Shreveport. 
Delta's got the most 
non-stop Jets! 
Also Jet Delta to Atlanta, Houston, New Orleans, Memphis, St. Louis, Cincinnati, Birmingham, Louisville, Columbia, S. C., Jackson, Shreveport. 
29 
 riCMUO PISSfMWS 
CHfCP Hfftf 
 BOARD OF DIRECTORS 
R. W. FREEMAN, Chairman of the Finance Committee, 
New Orleans, Louisiana 
W. T. BEEBE, Atlanta, Georgia 
B. W. BIEDENHARN, Monroe, 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. H. DOLSON 
President 
T. M. MILLER 
Executive Vice President--Traffic and Sales 
W. T. BEEBE DAVID C. GARRETT, JR. ROBERT L. GRIFFITH 
Vice President--Personnel Vice President -- 
Operations Vice President 
R. S. MAURER 
Vice President- 
General Counsel and Secretary 
ROBERT OPPENLANDER PAUL W. PATE 
Vice President--Finance and Treasurer Vice President--Properties 
CHARLES P. KNECHT R. H. WHARTON 
Assistant Vice President--Sales Assistant Vice President -- 
Personnel 
C. B. WILDER 
Assistant Vice President-- 
Operations-Technical 
CATHERINE FITZGERALD 
Assistant Treasurer 
J. R. HOWELL 
Assistant Treasurer 
HUGH H. SAXON 
Assistant Treasurer 
TRANSFER AGENTS: The Citizens & Southern National Bank, Atlanta, Georgia 
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 26, 1967, Monroe, Louisiana 
31 
 32 
New dimensions of Delta service: 
six stewardesses serve passengers 
on Super DC-8 flights. 
Mi 
DELTA DC-8'S 
COME IN A 
NEW SIZE 
 New dimensions of Delta service: 
six stewardesses serve passengers 
on Super DC-8 flights. 
32 
THE WORLD S BIGGEST JETLINER 
This is the Delta Super DC-8...world's biggest jet 
liner. It can carry all the passengers shown here... 195 
in all. There is a crew of nine: six stewardesses, cap 
tain, first officer and second officer. The standard 
DC-8 carries 135 passengers. 
The Super DC-8 extends a record length of 187 
feet, or 37 feet more than the standard DC-8. It is 142 
feet between wing tips; the tail rises 43 feet. Fully 
loaded, it weighs 325,000 pounds. 
To lift this load and push it along at a sustained 
speed of almost 600 miles an hour, the Super DC-8 
has more power than any other jetliner of today...a 
total of 72,000 pounds of jet thrust. The fuel tanks can 
hold 23,393 gallons. 
Of all the units of transportation in use today, the 
Super DC-8 can carry the most persons the most miles 
in any given measure of time, more than any train... 
more than even the largest of ocean liners. 
Delta has 18 of these new jets ordered or optioned. 
The first of the Super DC-8's are now on the southern 
transcontinental route between New York and Cali 
fornia and also between Chicago and Miami. 
 DELTA AIR LINES, INC., GENERAL OFFICES, ATLANTA AIRPORT, ATLANTA, GEORGIA 30320