DELTA 
AIR LINES 
INC. 
ANNUAL 
REPORT 
1970 
  $3.00 - 
2 .50 - 
2.00 - 
o L 
EARNINGS PER SHARE 
RETURN ON INVESTMENT 
Estimated influence of competitors' 
strike and extraordinary gain 
on disposition of flight equipment 
62 64 
Highlights of the Year 
66 68 
- 50 
- 30 
- 20 
- 10 
.J 0 
70 
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 
1970 1969 Change 
Operating 
Revenues .... .. . . $622,129 $516,113 + 21% 
Operating 
Expenses . . .. . . . . $529,179 $433,938 +22% 
Net Income ...... $ 44,527 $ 39,191 + 14% 
Earnings Per 
Share .... . .. . .. . . $2.33 $2.05 + 14% 
Revenue Passengers 
Carried .......... 13,528,206 12,107,061 + 12% 
Available Seat 
Miles (000) .. . ... . 18,559,724 14,768,892 +26% 
Revenue Passenger 
Miles (000) ....... 9,397,913 8,249,085 + 14% 
Passenger Load 
Factor . . . . . . . . . . . 50.64% 55.85% - 9% 
 2 
C.H. DOLSON 
Chairman of the Board 
W. T. BEEBE 
President 
 REPORTTOTHESTOCKHOLDERS 
Fiscal 1970 was a year of significant 
change both for Delta and for the airline 
industry. The unprecedented route awards 
of 1969 not only brought new competition 
to our Southern Tier and Midwest to Gulf 
States markets but also offered oppor- 
tunities for service along new routes 
granted to Delta. Unfortunately for the in- 
dustry, these awards came at a time when 
the general economy was leveling, indus- 
try traffic growth was softening, and in- 
flation was continuing. The resultant 
depressed load factors and increased unit 
costs more than offset the two fare in- 
creases of 1969 so that the earnings posi- 
tion of the industry has deteriorated sig- 
nificantly over the past year. 
The softening in traffic growth did not 
substantially affect Delta until late in the 
fiscal year because of the delayed impact 
of the economic slowdown on our major 
markets and an extended strike against a 
competitor during the February-May, 
1970 period. While the added competition 
has also slowed our growth rate, we still 
improved our market share throughout 
the year. For the first four months of the 
new competition (October through Jan- 
uary), Delta's share of the 48 state domes- 
tic trunk market increased from 9.4% to 
10.0%. For June, 1970, after the conclu- 
sion of the strike against a competitor, 
the improvement was from 9.5% to 9.8%. 
Net earnings for the year of $44.5 mil- 
lion or $2.33 per share were 14% above 
3 
 4 
12%- 
11 - 
10 - 
66 
SHARE OF DOMESTIC TRUNK AIRLINE MARKET 
(Excluding Hawaii) 
1967 comparisons distorted by strike 
against five major competitors 
67 68 69 70 
fiscal 1969, concluding a decade of sound 
growth from the 17 per share earned in 
fiscal 1960. Operating revenues totaled 
$622.1 million and revenue passenger 
miles increased 14% to 9.4 billion. Cargo 
and mail revenues were almost $51 mil- 
lion, an increase of 19%. Total capacity 
operated increased 26% for the year due 
to the delivery of additional Super DC-8 
and Super DC-9 aircraft and the purchase 
of two standard DC-8 aircraft for new 
route awards. All piston services were 
eliminated with the retirement of the re- 
maining CV-440 aircraft in April, 1970. 
Shortly before the close of the year, 
commitments were made for the purchase 
of five Super DC-9 aircraft for 1971 de- 
livery to be used on the most recent North 
Carolina points award. The estimated 
future capital outlay for flight equipment 
to be delivered through 1975 totals $410 
million. Financing will be provided from 
internally generated funds, the proceeds 
 8.00 - - 6.00 
PASSENGER MILE YIELD 
7.50 - 
UNIT COST PER AVAILABLE SEAT MILE 
- 5.50 
7.00 - - 5.00 
4.00 
- 2.50 
62 64 66 68 
.J 2.00 
70 
from the amended 1967 Bank Credit 
Agreement, and from a new loan agree- 
ment now being negotiated with a group 
of British banks in conjunction with the 
purchase of Rolls-Royce engines for the 
Lockheed L-1011 aircraft. The year's 
operating results and the future outlook 
are reviewed in more detail in the follow- 
ing sections. 
Revenues and Expenses 
Operating revenues increased 21 % over 
1969 to a total of $622.1 million. Passen- 
ger revenues were up 20% to $565. 7 mil- 
lion and revenue passenger miles were 
9.4 billion, an increase of 14%. Cargo 
revenues were $50.8 million, up 19%, 
including a $669,000 retroactive adjust- 
ment to mail revenues due to the CAB 
decision reducing non-priority mail rates. 
The passenger mile yield increased 6% 
to 6.02 from 5. 70 in 1969. This increase 
primarily came from the two fare increases 
5 
  approved in February and October, 1969 
(see further discussion under Regulatory 
Matters). In addition, the percentage of 
discount travel was somewhat lower due 
to a June 1969 revision of Discover Amer- 
ica fares to require a seven-day stay. 
Despite a 6% rise, the 1970 yield is still 
below that experienced in 1965, the last 
full year before the broad range of sys- 
temwide discount fares was introduced. 
Operating expenses were up 22% over 
1969 to a total of $529.2 million. Oper- 
ating capacity was up 26% due to tne 
added Su per DC-8 and DC-9 aircraft, a 
5% improvement in aircraft utilization, 
and inauguration of services on newly 
granted routes. Unit available seat mile 
and available ton mile costs were down 
3% for the year despite the continued up- 
ward pressure of inflation on all areas of 
operation. Fiscal 1971 unit costs will be 
adversely influenced by a sharp drop in 
capacity growth to 13%, the introductory 
costs of the Boeing 747, and further in- 
flationary inroads. 
The retroactive discontinuance of the 
investment tax credit to April 18, 1969 will 
not apply to our Boeing 747 and Lock- 
heed L-1011 orders since these orders 
were firm prior to the cut-off date. Con- 
sequently, such credits will continue to be 
earned through early 1975. Delta has con- 
sistently followed a policy of deferring 
earned credits and amortizing them over 
the life of the assets involved rather than 
using the "flow-through" method. At June 
30, 1970, a balance of $26.5 million of un- 
amortized tax credits remained to be 
picked up as income over the next several 
years. 
Delta offers wide choice of 83 
nonstop jets from Chicago 
to 28 cities in 12 states. 
7 
 8 
800/o - 
70 - 
60 ,.. 
50 - 
40 - 
30 L 
ACTUAL AND BREAK-EVEN LOAD FACTOR 
62 
Estimated influence of 
competitors' strike 
64 66 
Earnings and Dividends 
68 70 
Net earnings were $44.5 million, equal 
to $2.33 per share or 14% above the $2.05 
per share earned in fiscal 1969. The cur- 
rent year earnings included the effect of 
both fare increases mentioned above and 
an effective 7.5% surtax. 1969 earnings 
included only the February fare increase 
and a full 10% surtax. Dividend payments 
for the year totaled $7,650,000 or 40 per 
share on the 19,125,000 shares outstand- 
ing. Shortly after the close of the fiscal 
year, the directors voted a 25% increase 
in the quarterly dividend rate to 12 per 
share payable September 1, 1970. This 
was the 21st consecutive year of dividend 
payments and the sixth increase in the 
past decade. 
Flight Equipment 
During fiscal 1970, Delta accepted deliv- 
ery of three Super DC-B's, nine Super 
DC-9's, and two standard DC-B's. In May, 
 1970, an additional five Super DC-9's were 
ordered for delivery in 1971 to cover the 
most recent route awards. Concurrent 
with this order, two standard DC-9's were 
acquired under a short-term lease pend- 
ing receipt of the new aircraft. Addition- 
ally, one L-100 cargo aircraft was leased 
in order to permit full schedule coverage 
while the owned aircraft are undergoing 
a wing modification expected to be com- 
pleted by early spring of next year. 
The pattern of deliveries for all aircraft 
currently on order is shown in the follow- 
ing table: 
Fleet Fleet 
Type 
of Total Deliveries in Fiscal Years Total 
Aircraft Seats 6 / 30/ 70 71 72 73 
DC-8 129 7 
DC-8 135 21 
DC-8 195 13 
CV-880 96 16 
DC-9 68 1 7* 
DC-9 89 58 3 2 
B-747 370 3 2 
L-1011 250 5 6 
L-100-20 Cargo 4** 
136 6 9 6 
*Includes two aircraft on short-term lease. 
**Includes one L-100-10 on short-term lease. 
74 75 6 / 30/ 75 
7 
21 
13 
16 
15 
63 
5 
6 7 24 
3 
6 7 167 
The last of the Convair 440 aircraft were 
retired in April, 1970 and Delta's fleet is 
now all-jet. 
Capitalization and Financing 
In fiscal 1970, Delta borrowed $15 million 
under the $220 million revolving bank 
credit agreement increasing total borrow- 
ings to $200 million at year-end. After 
sometemporaryrepaymentsof $25 million 
in July and August, the remaining balance 
available under this agreement will be 
borrowed when the Boeing 747 aircraft 
are delivered in late 1970. 
Delta recently signed a letter of intent 
and is currently negotiating a new loan 
agreement with the agent for a group of 
British banks to provide financing for the 
9 
 10 
Rolls-Royce engines to be installed on 
the Lockheed L-1011 aircraft. This agree- 
ment will provide for borrowings not to 
exceed $42 million to be repaid in semi- 
annual installments over ten years at 
an effective interest rate of slightly less 
than 6%. 
Including the most recent order for 
five Super DC-9's, Delta's probable future 
capital outlays for flight equipment will 
exceed $410 million through 1975. The 
total credit available under the above 
agreements, together with normal inter- 
nally generated funds from earnings, de- 
preciation, and deferred tc;1xes, is currently 
estimated to be adequate for these pro- 
jected capital requirements. 
Total stockholder equity at year-end 
was equal to $13. 77 per share or 
$263,392,000, an increase of 16% over 
June 30, 1969. 
Facilities 
During the past year, Delta completed 
and occupied new offices for Marketing, 
Reservations, Communications, Flight 
Control and Flight Training at the Green- 
briar complex in Atlanta. Construction is 
now underway on a second floor addition 
to the Computer Center at Greenbriar to 
house all accounting, treasury, purchas- 
ing, and internal audit activities, with com- 
pletion expected in early 1971. Construc- 
tion was recently started on a major 
expansion of the Atlanta maintenance 
and overhaul base which is being financed 
by City of Atlanta special purpose revenue 
bonds. When completed in 1972, the ex- 
panded facility will be twice its present 
size and provide the hangar and support 
Delta serves all 3 New York 
airports with 27 nonstop jets 
to 8 cities in 7 states. 
  12 
facilities required for the new fleet of 
Boeing 747 and Lockheed L-1011 air- 
craft to be delivered through 1975. 
Airport facilities for handling the Boe- 
ing 7 4 7 are completed or under construc- 
tion in Atlanta, Chicago, Dallas, Detroit, 
LosAngeles, and Miami. New or expanded 
airport facilities are progressing at Dallas/ 
Ft. Worth, Dayton, Kansas City, Little Rock, 
Louisville, Philadelphia, Shreveport, and 
Tampa. 
In addition to these major expansions, 
new or expanded reservations, ticketing, 
and sales offices are under construction 
in many cities in preparation for the ex- 
pected growth of the seventies. 
Personnel 
Total employees at year-end numbered 
more than 20,500. Including the 1,800 
employees added in fiscal 1970, total 
salaries and related employee benefit 
costs increased 24% to $249 million, equal 
to 40 cents of each revenue dollar. 
Delta continues to participate fully in 
a program, sponsored by the National 
Alliance,of Businessmen, to hire and train 
disadvantaged youth during summer 
vacations. Some 270 young people were 
employed under this program in 1970. 
Our employees have accepted the chal- 
lenge of teaching these young people 
more about our country's free enterprise 
system and giving them practical training 
to help them select and prepare for mean- 
ingful future careers. 
In keeping with the growth of your 
Company and the need to insure full con- 
tinuity and flexibility of management, a 
number of executive promotions were 
made during the year. C. H. Dolson was 
named Chairman of the Board and Chief 
Executive Officer and was succeeded as 
 President by W. T. Beebe. Nine new Vice 
Presidents were named including R. W. 
Allen, Administration; W. A. Atchison, 
Computer Services; T. P. Ball, Flight Oper- 
ations; Shelby D. Dement, Marketing Ad- 
ministration; Hoyt T. Fincher, Technical 
Operations; M. 0. Galloway, Comptroller; 
E. L. Hamner, Stations; Charles P. Knecht, 
Sales; and Morris Shipley, Government 
Affairs. New Assistant Vice Presidents 
named were Hollis L. Harris, Facilities and 
George E. Shedd, Public Relations; Sidney 
F. Davis and Ike Lasseter were promoted 
to Assistant Secretary. The combined 
experience of these gentlemen, all pro- 
moted from within the Company, exceeds 
350 years. 
Regulatory Matters 
During the latter half of the fiscal year, 
the number of new route cases somewhat 
abated, but regulatory activity continued 
at a high pitch with institution by the Civil 
Aeronautics Board of a comprehensive 
Domestic Passenger Fare Investigation. 
Route Cases 
In the North Carolina Points Service In- 
vestigation, Delta received authority to 
provide new services between Charlotte, 
Greensboro/High Point/ Winston-Salem, 
and Raleigh/Durham, in North Carolina, 
and both Chicago and Miami. Delta's 
Charlotte-New York restriction was also 
lifted, soasto permit "turn-around" sched- 
ules. Service was inaugurated in the 
new markets on June 15, 1970. 
Earlier in the fiscal year the Company 
received nonstop authority in the Bir- 
mingham to Cincinnati and Detroit and the 
Atlanta to Kansas City markets {with the 
right to operate between Kansas City and 
Ft. Lauderdale via a single stop in Atlanta). 
The Company's Kansas City to Atlanta 
13 
  flights previously had been required to 
make one intermediate stop at Memphis, 
and the Birmingham flights had been re- 
quired to proceed via Atlanta. 
A number of route cases are still pend- 
ing. In one, the Board's Bureau of Oper- 
ating Rights has recommended that your 
Company be granted nonstop Atlanta to 
Cleveland authority. The Bureau also rec- 
ommended competition in Delta's Atlanta 
to Detroit and Atlanta to Cincinnati mar- 
kets, which the Company is opposing. An 
Examiner's initial decision in this proceed- 
ing is awaited. 
In another pending proceeding, the 
same CAB Bureau has recommended 
grant to the Company of nonstop Augusta 
and Columbia to Washington and New 
York authority. The Examiner would have 
granted these authorities to another car- 
rier, but his decision is being reviewed by 
the Board. 
Other pending new route cases include 
a Twin Cities/ Milwaukee-Atlanta/ Florida 
case now awaiting review by the Board 
of an initial decision; and three proceed- 
ings which remain in preliminary stages: 
an Oklahoma-Southeast Points Case; an 
Ohio/Indiana Points Nonstop Investiga- 
tion; and a Nashville-Detroit Nonstop Case. 
In addition, during the fiscal year Delta 
filed an application for nonstop authority 
between Atlanta and Boston. CAB action 
is awaited on a Delta request for expe- 
dited processing of this application. 
In the international field, Delta is 
actively seeking nonstop authority be- 
tween both Chicago and Atlanta to Jamaica 
in an investigation recently instituted by 
the CAB. Application was recently filed by 
North, South, East and West Delta flies 
208 nonstop jets from Atlanta to 
48 cities and 19 states. 
15 
 16 
Delta for authority between Atlanta, New 
Orleans, Dallas, and Houston in the United 
States and Guadalajara, Puerta Vallarta, 
Mazatlan and La Paz in Mexico. These two 
cases and the East Coast Points-Europe 
Case remain in preliminary stages. 
Delta's applications in the Omaha/ 
Des Moines Case, the St. Louis-Twin Cities 
Service Investigation, and the Seattle/ 
Portland-California Case were denied 
during the past fiscal year, as was the 
Company's application for nonstop Mem- 
ph is-Miami authority in the Southern 
Route Realignment Case. Delta has ap- 
pealed the latter case and the federal 
court's decision is awaited. The awards 
to Delta last year of Dallas fo Phoenix and 
Miami to Houston authority have been 
appealed by another carrier, and court 
decision is also awaited in those cases. 
Rate and Fare Investigations 
During January, 1970, the CAB insti- 
tuted a Domestic Passenger Fare Investi- 
gation. This is a comprehensive study into 
the structure and level of virtually all air- 
line passenger fares within the 48 con- 
tiguous United States. This proceeding 
will also determine the fair rate of return 
which the air carriers should earn on 
their investment, and will examine certain 
related matters such as whether the CAB 
should establish load factor standards. 
Decision on the nine parts of this investi- 
gation is expected in early 1971, except 
for questions concerning fare structure 
which will require an additional six to 
twelve months. 
In July, 1970, a federal appellate court 
found that the October 1969 fare increase 
Travelers can fly 36 nonstop 
jets from Miami/Ft. Lauderdale to 
18 cities in 9 states on Delta. 
  18 
had been handled improperly by the CAB 
and the proceeding was remanded to the 
agency. New tariffs have now been filed, 
which will be passed upon by the CAB 
prior to their effective date. The Domestic 
Passenger Fare Investigation may later 
result in additional changes in fare level 
and structure. In the meantime, a number 
of court cases have been filed seeking 
reparations because of the invalidation 
of the CAB Order approving the October 
1969 fare increase, which Delta and other 
airlines will oppose. These cases are all 
in preliminary stages and are subject to 
further actions by both the CAB and the 
courts, the outcome of which cannot be 
currently predicted. 
Outlook 
While fiscal 1970 proved to be a success- 
ful year despite a number of major obsta- 
cles, fiscal 1971 offers even greater chal- 
lenges to Delta and the industry. After 
three years of rapid capacity growth 
related to the latest re-equipment cycle, 
added capacity in 1971 will drop sharply. 
Most of the planned increase will be attrib- 
utable to the introduction of Boeing 747 
aircraft late this year and to the full impact 
of added services on newly authorized 
routes. Recent traffic growth has been 
relatively soft due to the added competi- 
tion and the delayed impact of the eco- 
nomic slowdown. We fully expect growth 
rates to improve this fall as comparisons 
are made against fully competitive prior 
periods. Any upturn in the economy could 
also improve total traffic in the latter part 
of the fiscal year. Yields should improve 
by at least 2% and could rise further if 
Cross-country convenience. 
Delta flies 58 nonstop jets from 
Dallas/ Ft. Worth to 18 cities in 8 states. 
   recent fare proposals by several carriers 
are approved. Unit costs will also trend 
moderately upward because of continued 
increases in wage rates, fuel, material, 
and services. An earnings improvement 
will depend largely upon the extent of 
economic recovery, CAB action on fare 
proposals, and a leveling of inflationary 
pressures. 
The individual contributions of our em- 
ployees and our stockholders can only be 
measured tangibly by the financial 
strength and sound growth achieved by 
Delta over the past decade. The years 
ahead will require even greater efforts by 
each of us to meet the challenges facing 
Delta, the airline industry, and our nation. 
C.H. DOLSON 
Chairman of the Board 
September 8, 1970 
W. T. BEEBE 
President 
Delta makes the going easy with 16 
nonstop jets from Los Angeles to 
4 cities in 4 states. 
21 
 DELTA AIR LINES, INC. 
Balance Sheets 
June 30 , 1970 and 1969 
ASSETS 1970 
 (In Thousands) 
CURRENT ASSETS: 
Cash .... . ......... . .......... $ 39,431 $ 29,909 
22 
Short-term cash investments, 
at cost ............ 
Accounts and notes receivable .. 
Maintenance and operating 
supplies, at average cost .. . ... 
Prepaid expenses, etc . ......... 
Total current assets ..... 
PROPERTY AND EQUIPMENT: 
Flight 
Equipment Other 
Cost- 
1970 .. . $712,421 $101 ,932 
1969 642,159 86,542 
Accumulated 
depreciation- 
1970 .... 245,687 38,220 
1969 195,886 30,398 
Advance payments for new 
flight equipment (Note 2) 
ADVANCE FOR 
SST DEVELOPMENT, 
being amortized . ... . .... . 
5,931 14,002 
42,110 40,253 
4,540 4,553 
1,917 1,074 
93,929 89,791 
814,353 
728,701 
283,907 
226,284 
530,446 502,417 
66,063 39,879 
596,509 542,296 
1,578 2,178 
$692,016 $634,265 
 DELTA AIR LINES, INC. 
LIABILITIES AND 
STOCKHOLDER EQUITY 
(In Thousands) 
CURRENT LIABILITIES: 
Current maturities of long- 
term debt ............ .. .. . .. $ 23,379 $ 7,607 
Accounts payable and accrued 
liabilities ................... . 39,028 50,945 
Tickets outstanding subject to 
refund or use ....... . ...... . 9,594 8,713 
Air travel plan deposits ....... . . 1,718 1,713 
6,343 
Accrued income taxes . .. . ..... ,--~- 4,855 
Total current liabilities .. 80,062 
,--'--- 73,833 
LONG-TERM DEBT (Note 1) .... . . 206,564 214,942 
DEFERRED CREDITS: 
Deferred Federal income taxes . 115,431 
Unamortized investment tax 
92,106 
26,869 
credit (Note 3) . . . . . . . . . . 26,567 
STOCKHOLDER EQUITY: 
Common stock, par value $3.00 
per share (Note 5)- 
Authorized 25,000,000 shares 
Outstanding 19,125,000 shares 
Capital surplus .. . 
Retained earnings (Note 1) ..... 
COMMITMENTS (Note 2) 
141,998 118,975 
57,375 
22,450 
183,567 
57,375 
22,450 
146,690 
263,392 226,515 
$692,016 $634,265 
The accompanying notes are an integral part of these statements. 
23 
 DELTA AIR LINES, INC. 
Statements of Income 
For the years ended June 30, 1970 and 1969 
1970 1969 
(In Thousands) 
OPERATING REVENUES: 
Passenger . . .. . . . . . .... .. . . ... $565,670 $470,024 
Cargo . . . . . . . . . . . . . . . . . . . . . . . . 50,786 42,536 
Other . . . . . . . . . . . . . . . . . . . . . . . . 5,673 3,553 
Total operating revenues 622,129 516,113 
OPERATING EXPENSES: 
Flying operations . .... . . . . . .... . 139,706 112,581 
Maintenance . .... . . . ... . . . . . . . 84,010 74,531 
Aircraft and traffic servicing ..... 107,223 83,920 
Promotion and sales . ... . . .... . 62,247 52,246 
Depreciation and amortization 
(straight-line method) . .. . .. . . . 69,880 56,876 
Passenger service . . .. .. .. .. .. . 5 1,629 39,991 
General and administrative ... .. 14,484 13,793 
Total operating expenses 529,179 433,938 
Income from operations 
before income taxes . . 92,950 82,175 
OTHER EXPENSE (INCOME): 
Interest expense ... . .... . . .. . . 20,250 12,634 
Less-Interest capitalized on 
advances for flight equipment . (4,523) (2,742) 
15,727 9,892 
Interest income, etc . . ... . . ... .. (1 ,085) (943) 
Gain on disposition of aircraft, 
net .... ..... . . .. . . ... .. . ... (174) 
14,642 8,775 
INCOME BEFORE INCOME 
TAXES . . . ..... . .... . . . .. . . . .. 78,308 73,400 
PROVISION FOR INCOME 
TAXES (Note 3) . . . . . . . . . . . . . . . 33,781 34,209 
NET INCOME .. .. .. . .. .. . ... ... $ 44,527 $ 39,191 
NET INCOME 
PER COMMON SHARE . ...... . $2.33 $2.05 
The accompanying notes are an integral part of these statements. 
24 
 DELTA AIR LINES, INC. 
Statements of Retained Earnings 
For the years ended June 30, 1970 and 1969 
1970 
(In Thousands) 
BALANCE AT BEGINNING 
OF YEAR . ... $146,690 $115,149 
Net income ............ . 
Less-Cash dividends- 
$.40 per share 
BALANCE AT END OF YEAR 
44,527 39,191 
191,217 154,340 
7,650 7,650 
(Note 1) . . . . $183,567 $146,690 
Statements of Source and Disposition of Funds 
For the years ended June 30, 1970 and 1969 
1970 
FUNDS PROVIDED BY: 
(In Thousands) 
Net income ........... . ....... $ 44,527 $ 39,191 
Add noncash expenses- 
Depreciation and amortization . 
Deferred Federal income taxes 
Investment tax credit, net of 
amortization .............. . 
Other, net ..... . .. ...... . .. . 
Total from operations 
Additional financing under- 
Installment purchase 
agreements ........... .. . . 
Bank credit agreement .. .... . 
FUNDS USED FOR: 
Flight equipment additions, 
69,880 
23,325 
(302) 
2,500 
139,930 
15,000 
154,930 
56,876 
21 ,333 
8,212 
1,117 
126,729 
128 
90,000 
216,857 
including advances .. . ....... 109,714 184,340 
Other property and equipment 
additions . . . . . . . . . . . . . . . . . . . 16,278 25,423 
Reduction of long-term debt 
(Note 1) ..... . .......... . 
Cash dividends .......... . 
DECREASE IN 
125,992 209.763 
23,379 
7,650 
7,622 
7,650 
157,021 225,035 
WORKING CAPITAL . . .. . . . .... $ 2,091 $ 8,178 
WORKING CAPITAL 
AT END OF YEAR .... . ........ $ 13,867 $ 15,958 
The accompanying notes are an integral part of these statements. 
25 
 DELTA AIR LINES, INC. 
26 
Notes to Financial Statements June 30, 1970 
1. LONG-TERM DEBT: 
At June 30, 1970, the Company's long-term debt of 
$229.9 million (including current maturities) consisted 
of the following : 
(a) $200 million due banks under a credit agreement 
which provides for borrowings up to $220 million on 
a revolving basis to December 31 , 1970. At that date, 
the outstanding balance will be converted to a 5-year 
term loan, repayable in quarterly installments of $8 
million to December, 1975 ($16 million payable in 
fiscal 1971 ), with the remaining balance payable on 
December 31 , 1975. Loans under the agreement are 
unsecured and carry an interest rate of % above 
the prime rate , 
(b) $26.2 million due insurance companies under 6% 
unsecured notes, repayable in installments to Oc- 
tober, 1974 ($5 million payable in fiscal 1971), and 
(c) $3.7 million due the manufacturer of the Deltamatic 
Reservation System , repayable in quarterly install- 
ments (including 4% interest) of $710,000. 
Under terms of the credit agreements, $67 million of 
retained earnings at June 30, 1970, is restricted as to 
the payment of cash dividends. 
2. COMMITMENTS : 
The Company has outstanding purchase commitments 
for the acquisition of five Douglas DC-9 aircraft, five 
Boeing 747 aircraft and twenty-four Lockheed L-1011 
aircraft which will require an expenditure of approxi- 
mately $410 million during the fiscal years 1971 
through 1975. 
The Company leases certain airport facilities, ticket 
offices, etc., under long-term agreements. Minimum 
annual rentals are approximately $7.3 million under 
such leases expiring after June 30, 1973. 
3. INCOME TAXES: 
The provision for income taxes for 1970 and 1969 con- 
sists of the following : 1970 1969 
Current income taxes . . 
Deferred Federal income taxes . 
Investment tax credit 
Less-Amortization of investment 
tax credit over life of 
related equipment 
- - - - - - 
(In Thousands) 
.. $10,758 $ 4,664 
23,325 21 ,333 
5,465 12,798 
39,548 38,795 
All available investment tax credits have been utilized 
to reduce the Company's Federal income taxes payable. 
The Company has filed a Tax Court petition contesting 
income tax deficiencies assessed by the Internal Reve- 
nue Service for the taxable years 1963 through 1965. 
In the opinion of management, the final settlement of 
this matter will not have a material effect on the Com- 
pany's financial position . 
 DELTA AIR LINES, INC. 
4 . PENSION PLANS: 
The Company has noncontributory pension plans cov- 
ering substantially all of its employees. The total pen- 
sion expense amounted to $11 .7 million in 1970. All 
prior service costs under the plans are fully funded , and 
it is the Company's policy to fund each year's accrued 
pension cost. 
5. STOCK OPTIONS: 
Under the Company's qualified stock option plan for 
100,000 shares of common stock, options for 91,500 
shares have been granted and were outstanding at 
June 30, 1970 (50,000 shares at $31.125 per share, 
29,000 shares at $34.75 per share and 12,500 shares 
at $34.50 per share). Options for 32,250 shares are 
currently exercisable. 
Auditors' Report 
ARTHU R ANDERSEN & Co, 
AT L ANTA, G EORG IA 
To the Stockholders and Board of Directors 
of Delta A ir Lines, Inc. : 
We have exam ined the balance sheet of Delta 
Air Lines, Inc. (a Delaware corporation) as of 
June 30, 1970, and the related statements of 
income, retained earnings and source and dis- 
position of funds for the year then ended. Our 
examination was made in accordance with gen- 
erally accepted auditing standards.and accord- 
ingly 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 re- 
ferred to above present fairly the financial po- 
sition of Delta A ir Lines, Inc. as of June 30, 
1970, and the results of its operations and the 
source and disposition of funds for the year 
then ended, in conformity with generally ac- 
cepted accounting principles applied on a basis 
consistent with that of the preceding year. 
Atlanta, Georgia, 
August 14, 1970. 
27 
 DELTA AIR LINES, INC. 
28 
Five Years of Delta Air Lines Growth Years Ended June 30 
(Dollars expressed in thousands except per share figures) 
Operating revenues 1970 
Passenger ................ . .......... $565,670 
Cargo ............................... 50,786 
All other ............. . ............... 5,673 
Total operating revenues ... ...  .......... $622,129 
Operating expenses ... . ................ 529,179 
Operating income ........ . ............. $ 92,950 
Interest expense, etc.,-net ...... . ..... .. 14,642 
Gain on disposition of aircraft-net .... . .. 
Net income before taxes ................ $ 78,308 
Taxes on income ............ . . . ........ 33,781 
Net income ........... ... ....... .. . .. .. $ 44,527 
Net income per share* .... . ......... $2.33 
Dividends paid .... .. ........ .. ..... .... $7,650 
Dividends paid per share* .. .... .... .. $0.40 
Total assets .. ...... . ............... ... . $692,016 
Stockholder equity ..................... $263,392 
Stockholder equity per share* ............ $13.77 
Shares of common stock outstanding* . .. .. 19,125,000 
Revenue passengers carried ........ ..... 13,528,206 
Available seat miles (000) .......... . .. . . 18,559,724 
Revenue passenger miles (000) .. .. ...... 9,397,913 
Passenger load factor ............. ... ... 50.64% 
Available ton miles (000) ......... . ..... . 2,508,105 
Revenue ton miles (000) . ............. .. 1,125,409 
Passenger revenue per passenger mile .... 6.02 
Operating expenses per available seat mile . 2.85 
Operating expenses per available ton mile. 21.10 
*Adjusted to reflect all stock splits 
1969 
$470,024 
42,536 
3,553 
$516,113 
433,938 
$ 82,175 
8,949 
174 
$ 73,400 
34,209 
$ 39,191 
$2.05 
$7,650 
$0.40 
$634,265 
$226,515 
$11.84 
19,125,000 
12,107,061 
14,768,892 
8,249,085 
55.85% 
1,994,826 
965,795 
5.70 
2.94 
21 .75 
DELTA AIR LINES, INC. 
1968 1967 1966 
$396,793 $362,368 $291,350 
32,141 31,638 24,039 
2,628 3,830 3 
,541 
$431,562 $397,836 $318,930 
363,140 308,737 253,092 
$ 68,422 $ 89,099 $ 65,838 
3,036 641 1,676 
235 2,402 562 
$ 65,621 $ 90,860 $ 64,724 
29,487 41,670 30,170 
$ 36,134 $ 49,190 $ 34,554 
$1.89 $2.57 $1.81 
$7,650 $6,375 $6,056 
$0.40 $0.33 $0.32 
$468,249 $369,422 $314,350 
$194,974 $166,490 $123,675 
$10.19 $8.71 $6.47 
19,125,000 19,125,000 19,125,000 
10,368,831 9,422,422 7,556,422 
11,972,737 9,687,337 8,196,349 
7,116,095 6,415,467 4,997,958 
59.44% 66.23% 60.98% 
1,609,704 1,304,889 1,090,282 
814,782 735,898 569,625 
5.58 5.65 5.83 
3.03 3.16 3.06 
22.56 23.66 23.21 
29 
 Board of Directors 
R. W. FREEMAN 
W. T. BEEBE 
B. W. BIEDENHARN 
R. W. COURTS 
C.H. DOLSON 
EMERY FLINN 
DAVID C. GARRETT, JR. 
EDWARD H. GERRY 
CHARLES H. KELLSTADT 
JOHN R. LONGMIRE 
R. S. MAURER 
T. M. MILLER 
WINSHIP NUNNALLY 
ROBERT OPPENLANDER 
CARLETON PUTNAM 
Chairman of the Finance Committee 
New Orleans, Louisiana 
Atlanta, Georgia 
Monroe, Louisiana 
Atlanta, Georgia 
Atlanta, Georgia 
Miami, Florida 
Atlanta, Georgia 
New York, New York 
Miami, Florida 
St. Louis, Missouri 
Atlanta, Georgia 
Atlanta, Georgia 
Atlanta, Georgia 
Atlanta, Georgia 
Washington, D.C. 
GEORGE M . SNELLINGS, JR. Monroe, Louisiana 
As modern in design as a superjet 
is Delta's new Greenbriar facility 
in Atlanta, a center for Marketing, 
Reservations, Communications, Flight 
Training and Flight Control. 
31 
 32 
Officers 
C. H. DOLSON 
W. T. BEEBE 
ADMINISTRATION 
R. W. ALLEN 
R. H. WHARTON 
J. A. YORK 
FINANCE 
Cha irman of the Board 
President 
Vice President - Administration 
A sst. Vice President - Personnel 
Asst. Vice President - Employee Services 
ROBERT OPPENLANDER Senior Vice President - Finance & Treasurer 
W. A. ATCHISON Vice President - Computer Services 
M. 0 . GALLOWAY Vice President -Comptroller 
PAUL W. PATE 
J. D. DUNN 
J. R. HOWELL 
HUGH H. SAXON 
LEGAL 
R. S. MAURER 
MORRIS SHIPLEY 
J. W. CALLISON 
J. A. COOPER 
FRANK F. ROX 
GEORGE E. SHEDD 
SIDNEY F. DAVIS 
IKE LASSETER 
MARKETING 
T. M . MILLER 
SHELBY D. DEMENT 
CHARLES P. KNECHT 
J. W. MEYER 
HENRY ROSS 
OPERATIONS 
Vice President - Properties 
Asst. Vice President - Purchasing 
Asst. Trea surer 
Asst. Treasurer 
Senior Vice President - 
General Counsel & Secretary 
Vice President - Government Affairs 
Asst. Vice President - Law 
A sst. Vice President - Economic Research 
Asst. Vice President - Law 
Asst. Vice President - Public Relations 
Asst. Secretary & Asst. to General Counsel 
Asst. Secretary 
Senior Vice President - Marketing 
Vice President - Marketing Administration 
Vice President -Sales 
Asst. Vice President -Customer Relations 
A sst. Vice President - 
Advertising & Sales Promotion 
DAVID C. GARRETT, JR. Senior Vice President - Operations 
T. P. BALL 
HOYT T. FINCHER 
E. L. HAMNER 
J. K. BURNETTE 
A. C. FORD 
HOLLIS L. HARRIS 
D. P. HETTERMANN 
JACKS. KING 
W. L. MILLER 
J. F. NYCUM 
L. G. RODEFELD 
J. H. TURNER 
C. B. WILDER 
Vice President - Flight Operations 
Vice President - Technical Operations 
Vice President -Stations 
Asst. Vice President - Quality Control 
Asst. Vice President - Long Range Planning 
Asst. Vice President - Facilities 
Asst. Vice President - Engineering 
Asst. Vice President - Flight Control 
Asst. Vice President - Materiel Services 
Asst. Vice President- Flt. Eqpt. Development 
Asst. Vice President - Communications 
Asst. Vice President - Maintenance 
Asst. Vice President - Operations Administration 
 SYSTE M ROU T E MAP 
TRANSFER AGENTS: 
M 
THRU-JETS 
TO AND FROM 
EUROPE 
NSBORO 
POINT 
TON-SALEM 
EIGH 
HAM 
ARLESTON 
ANNAH 
SWICK 
SONVILLE 
0 
The Citizens and Southern National Bank, Atlanta, Georgia 
and The First National City Bank, New York City 
REGISTRARS: 
Tru st Company of Georgia, Atlanta , Georgia and 
Morgan Guaranty Tru st Company of New York, New York City 
COM MON STOCK: 
Li sted on the New York Stock Exchange 
AUDITORS: 
Arthur Andersen & Co. 
ANNUAL MEETING : 
October 22, 1970, Monroe, Louisiana 
Notice To The Stockholders Of Delta Air Lines, Inc. 
Thi s notice is published in accordance with regulations adopted 
by the Civil Aeronautics Board for effect iveness Augu st 1, 1970. 
Any person who owns more than 5% of the ca pital stock or 
capital of an air ca rrier as of December 31 of any yea r, either 
beneficially or as trustee, is required to file a report with the 
CAB on or before April 1 of the following year containing certain 
information required by Section 245.13 of the CAB Economic 
Regulation s. 
Any person acquiring more than 5% of the ca pital stock or 
ca pital is required to file a report with in 10 days of the acquisi- 
tion . 
Any stockholder who believes that he may be required to 
file such a report may obtain further information by writing to 
the Director, Bureau of Operating Rights, Civil Aeronautics Board, 
Washington, D.C. 20428. 
Delta Air Lines, Inc., 
General Offices, Atlanta Airport, Atlanta , Ga. 30320