Delta Air Lines,Inc. 
Annual Report 1972 
  DELTA AIR LINES, INC. 
ANNUAL REPORT 
1972 
Contents 
Highlights of the Year 3 
Report to the Stockholders 4 
Revenues and Expenses 7 
Earnings and Dividends 8 
Capitalization and Financing 8 
Flight Equipment and Purchase 
Commitments 9 
Facilities 11 
Marketing 12 
Environmental Matters 12 
Security Programs 13 
Personnel 14 
Regulatory Matters 15 
Route Map 20, 21 
Financial Statements -- 
Balance Sheets 22, 23 
Statements of Income 24 
Statements of Retained Earnings 25 
Statements of Additional Paid-in 
Capital 25 
Auditors' Report 25 
Statements of Changes in Financial 
Position 26 
Notes to Financial Statements 27 
Five-Year Summary 32, 33 
Pro Forma Combined Condensed 
Financial Statements -- 
Balance Sheets 34, 35 
Statements of Income 36 
Notes to Pro Forma Combined Con 
densed Financial Statements 36 
Board of Directors 38 
Officers 39 
1 
 $3.00 
EARNINGS PER SHARE 
RETURN ON INVESTMENT 
2.50 - 
1.00 - 
2 
 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. 
1972 1971 
Per Cent 
Change 
Operating 
Revenues $757,569 $661,246 + 15% 
Operating 
Expenses $682,117 $608,475 + 12% 
Net Income $42,169 $29,994 + 41% 
Earnings Per 
Share $2.20 $1.57 + 41% 
Revenue Passengers 
Enplaned 17,880,837 16,373,467 + 9% 
Available Seat 
Miles (000) 22,105,725 20,553,892 + 00 
Revenue Passenger 
Miles (000) 10,609,729 9,719,346 + 9% 
Passenger Load 
Factor 48.00% 47.29% + 2% 
3 
 Report to the Stockholders 
Fiscal 1972 was a good year for Delta. Net 
earnings rebounded strongly to $42.2 million 
or $2.20 per share, up 41% from the depressed 
1971 level. After only nominal growth in 1971, 
passenger traffic responded to the overall 
improvement in the economy and increased 
9%. This growth together with a 5% increase 
in passenger mile yields resulting from the 
May, 1971 fare increase produced a 15% 
growth in operating revenues. 
Growth in operating capacity was held to 
only 8% for the year and was at its lowest 
level since Delta introduced jet services in 1959. 
Despite a major improvement in employee 
productivity and careful monitoring and con 
trol of all costs, unit operating costs were up 
4% to 3.08c per available seat mile and un 
doubtedly would have been even higher with 
out the President's programs on wage and 
price restraints. 
During recent months Delta has made a 
number of significant changes to its long 
range flight equipment plans. In May, Delta 
signed an agreement assigning to United Air 
Lines purchase rights to five McDonnell 
Douglas DC-10 aircraft for delivery beginning 
in October, 1972. Immediately upon delivery 
to United the aircraft will be leased to Delta for 
approximately two and one-half years to May, 
1975. The return of the aircraft to United 
may require certain revisions to the Lockheed 
L-1011 aircraft delivery schedule. This action 
recognizes the major improvement in Lock 
heed's financial condition since our last report 
4 
 to you and the longer term need to standardize 
on only one wide-body trijet aircraft type. 
Including options exercised in August, 
1972, Delta has ordered 28 Boeing 727-200 
aircraft with wide-bodied interiors for de 
livery in fiscal years 1973 and 1974. Negotia 
tions were also concluded recently for options 
on an additional 14 B-727-200 aircraft for de 
livery beginning late in fiscal year 1974. As 
modification kits become available later this 
year, the 13 B-727-200 aircraft acquired in the 
Northeast merger will be modified to the wide 
bodied interior in order that the entire fleet will 
be fully interchangeable and competitive. 
Concurrently with the purchase and de 
livery of the new B-727-200 aircraft. Delta 
has agreed to sell its fleet of 16 CV-880 air 
craft and 7 DC-8-33 aircraft and associated 
spare engines and parts to The Boeing Com 
pany. In a separate agreement concluded in 
August, 1972, Delta agreed to sell its 13 
DC-9-14 aircraft and spare engines to Southern 
Airways. 
The purchase of the Boeing aircraft and the 
sale of the older CV-880, DC-9-14, and 
and DC-8-33 aircraft will permit Delta to 
modernize and standardize its post-merger 
fleet while retaining approximately the same 
level of scheduled frequencies at lower seat 
mile costs. Financing for all outstanding 
purchase commitments will be provided by 
internally generated funds together with 
additional bank borrowings permissible under 
existing loan agreements. 
The Civil Aeronautics Board and the Presi 
dent granted final approval of the Northeast 
merger in May, 1972 and the merger was con 
summated on August 1, 1972. The merger 
adds to Delta's route system a number of new 
and important route segments including the 
highly competitive New England and East 
Coast to Elorida, Bermuda and the Bahamas 
markets. Unfortunately, the Civil Aero- 
5 
 nautics Board ordered Delta not to operate 
Northeast's Miami-Los Angeles route pending 
decision in a new proceeding for re-examina 
tion of this authority. Delta requested and 
anticipates expedited handling of this 
proceeding. 
The addition of Northeast's routes to the 
Delta system offers several outstanding op 
portunities for improved service to the travel 
ing public. Delta's financial strength insures 
the resources to support effective competition 
in the East Coast markets. In the New England 
area, Delta will effectively utilize its expertise, 
developed over many years in the smaller 
markets of the South and Southwest, to pro 
vide improved services to many of the com 
munities in this area and to tie the area into 
the major markets in Delta's expanded system. 
These new and expanded marketing op 
portunities, together with the operating 
efficiencies gained through better utilization 
of the combined resources, offer an exciting 
and sound basis for the continued growth and 
financial stability of Delta in the years 
ahead. We are confident that the approxi 
mately 25,000 highly skilled and dedicated 
individuals who make up the Delta team will 
respond to these new challenges in the same 
professional manner which has created Delta's 
unique reputation for excellent personalized 
service. To each of these employees, including 
the more than 3,500 former Northeast em 
ployees who are now "Delta Professionals," 
we offer our pledge of continued loyalty, sup 
port and dedication to the Delta heritage of 
integrity and fair play to its employees, its 
customers, and its stockholders. 
W. T. BEEBE DAVID C. GARRETT, JR. 
Chairman of the Board & President 
Chief Executive Officer 
September 15, 1972 
6 
 Revenues and Expenses 
Operating revenues totaled $757.6 million, 
an increase of 15% over 1971. Passenger 
revenues also increased 15% to $690.0 
million and accounted for 91% of total 
revenues. 
Responding to the general upturn in the 
economy beginning last fall, passenger traffic 
increased 9% for the year (12% in the last 
six months) to a total of 10.6 billion revenue 
passenger miles. Freight traffic also responded 
with a healthy 12% growth, but mail and 
express volumes were down slightly so that 
total cargo revenues were up only 9% to 
$59.4 million. 
The passenger mile yield was 6.50(P, up 5% 
over6.18<P in 1971. This increase was due 
essentially to operating a full year under the 
6% general fare increase granted in May 1971. 
The cargo yield was up 4% over the previous 
year. 
Operating expenses increased 12% over 
1971 to $682.1 million. Operating capacity 
increased 8%, principally from the introduction 
of two additional Boeing 747's in December 
and a full year's operation of the first three 
Boeing 747's introduced last year. Although 
inflationary pressures have moderated over 
recent months, the cumulative effect of 
previous high levels of inflation caused unit 
costs per seat mile and ton mile to rise 4% and 
2%, respectively. 
7 
 Earnings and Dividends 
Reflecting the improved traffic growth and 
higher yields, net earnings were up 41% over 
1971 to $42.2 million, or $2.20 per share. 
The 1972 results include a $2,072,500 (5<P 
per share after taxes) reduction in amortization 
expense resulting from the refund of advances 
made for the SST development and a 5<P per 
share after-tax gain from insurance proceeds 
on a DC-9 aircraft destroyed in a training 
accident. The 1971 results included a reduction 
of $1,775,000 (9(f per share) in state income 
taxes representing provisions made in prior 
years and no longer required. 
Fiscal 1972 marked the 23rd consecutive 
year of cash dividend payments. Such pay 
ments totaled $9,570,153 for the fiscal year 
or 50<F per share. 
Capitalization and Financing 
In fiscal 1972, the 1967 Bank Credit Agree 
ment was amended to provide for the deferral 
of the September and December, 1971 
quarterly payments of $8 million each and to 
extend the term of the agreement by one year 
to December 31, 1976. The short-term bank 
borrowing of $ 12 million, made in fiscal 1971, 
was repaid in December, 1971. 
In connection with the special advance 
payments of $20.4 million to Lockheed Air 
craft Corporation as a part of its refinancing 
program. Delta entered into a separate Bank 
Credit Agreement providing for total borrow 
ings of $20 million during a revolving period 
ending September 30, 1972. At year-end, no 
borrowings had been made under this 
agreement. 
Delta is presently re-negotiating with 
hazard Brothers & Co., a London merchant 
bank representing a syndicate of British 
banks, for the financing of the Rolls-Royce 
engines for its entire L-1011 fleet. Originally, 
8 
 Delta entered into an agreement with hazards 
for the financing of the first 12 L-lOll's and 
related spare engines for approximately $38 
million. This agreement was frustrated by the 
bankruptcy of Rolls-Royce, Ltd. in early 1971. 
Agreement in principle has been reached for 
the new financing which will provide Delta 
with about $80 million in long-term financing 
at favorable interest rates. 
Outstanding purchase commitments, 
including commitments made subsequent to 
the close of the fiscal year, will require future 
expenditure of approximately $487 million 
during fiscal years 1973 through 1976. It is 
anticipated that internally generated funds 
together with additional borrowings permis 
sible under existing loan agreements should 
provide adequate cash for these purchase 
commitments and for payment of outstanding 
debt in accordance with its normal maturities. 
Total stockholder equity at year-end was 
$317.5 million, or $16.57 per share, an 
increase of 12% over June 30, 1971. 
Flight Equipment and Purchase Commitments 
During fiscal 1972, Delta accepted delivery 
of two wide-bodied B-747 and one Super DC-9 
aircraft. Also, during the year one standard 
DC-9 was sold and a second was destroyed 
in a training accident. As of June 30, 1972, 
Delta owned and operated the following jet 
passenger aircraft: 
Type of 
A ircraft Seats 
Fleet 
Total 
B-747 370 5 
DC-8-61 195 13 
DC-8-51 135 21 
DC-8-33 135 7 
CV-880 96 16 
DC-9-32 89 63 
DC-9-14 68 13 
Total 138 
9 
 In addition, Delta owns and operates three 
L-100-20 all-cargo aircraft. Also, under an 
interchange agreement with Pan American, 
certain through-plane services are operated 
between Atlanta, Georgia and Frankfurt, 
Germany via London, England with B-747 
aircraft owned by Pan American. Delta leases 
flying time on these aircraft for operation 
between Atlanta, Georgia and the interchange 
point, Dulles International Airport, Washing 
ton, D.C. and for certain additional operations 
over Delta's domestic routes. 
Effective with the merger consummation 
on August 1, 1972, Delta acquired Northeast's 
aircraft fleet consisting of the following: 
Type of Fleet 
Aircraft Seats Owned Leased Total 
B-727-100 96 2 6 8 
B-727-200 130 13 13 
DC-9-30 92 4 10 14 
FH-227 43 _6 _6 
Total 12 29 41 
Of the leased aircraft, all except seven 
B-727-200 aircraft are being leased from 
Storer Leasing Corporation, a wholly owned 
subsidiary of Storer Broadcasting Company. 
At June 30, 1972, Delta had outstanding 
purchase commitments for 14 Boeing 727-200 
aircraft with wide-bodied interiors for delivery 
during fiscal years 1973 and 1974 and 24 
Lockheed L-1011 aircraft for delivery during 
fiscal years 1974 through 1976. Delta has sub 
sequently exercised an option to purchase 14 
additional Boeing 727-200 aircraft for delivery 
in fiscal year 1974 and has secured options 
for 14 additional aircraft for delivery begin 
ning late in fiscal year 1974. 
In conjunction with the purchase of the 
B-727-200 aircraft. Delta has entered into 
10 
 agreements to sell its fleet of 16 CV-880 air 
craft and 7 DC-8-33 aircraft and associated 
spare engines and parts to The Boeing Com 
pany. Also, in August, 1972, Delta announced 
the sale of its 13 DC-9-14 aircraft and spare 
engines to Southern Airways for delivery con 
currently with the receipt of the first 14 
B-727-200 beginning in February, 1973. These 
actions will permit Delta to modernize and 
standardize its post-merger fleet while retain 
ing approximately the same level of scheduled 
frequencies at lower seat mile costs. 
In May, 1972, Delta agreed to assign to 
United Air Lines rights held by Delta to 
purchase five McDonnell Douglas DC-10 
aircraft for delivery beginning in October, 
1972. A definitive lease agreement has now 
been executed, subject to Civil Aeronautics 
Board approval, providing that immediately 
upon delivery to United the aircraft will be 
leased to Delta for approximately two and 
one-half years to May, 1975. This action was 
taken in recognition of the major improve 
ment in Lockheed's financial condition over 
the past several months. The L-1011 program 
is proceeding and a number of aircraft are 
currently in revenue service with other airline 
buyers. In order to replace the DC-10 aircraft 
to be returned to United in May, 1975, Delta 
is considering certain revisions to the L-lOl 1 
aircraft delivery schedule. 
Facilities 
During the past year Delta moved into new 
or expanded airport terminal facilities at New 
Orleans, Little Rock, Shreveport, and 
Chicago's O'Hare. Airport expansion projects 
are under way at Atlanta, Knoxville, Bir 
mingham, Orlando, Ft. Lauderdale, Cincin 
nati, Memphis and Houston. Construction of 
the new Dallas/Fort Worth Regional Airport 
is on schedule and should be completed in 
1973. 
11 
 The expanded portion of the Atlanta 
Maintenance and Overhaul Base will be com 
pleted in October, 1972. The facilities for 
engine overhaul and test are already finished 
and in operation. Renovation of certain areas 
of the original facility will be completed by 
the summer of 1973. Upon completion, the 
Atlanta Base will provide the capacity to 
handle all aircraft on order as well as those 
acquired in the Northeast merger. 
In addition to these major expansions, 
new or expanded sales, reservations, and 
ticketing offices were completed this year 
and construction is underway on a number 
of other similar facilities. 
Marketing 
In fiscal 1972, Delta developed and intro 
duced a new computerized ticketing system 
called "Guaranteed Fares" which can com 
pute passenger fares with extreme accuracy, 
even for the most complex itinerary, and print 
the necessary ticket. This system permits the 
issuance of approximately 85% of Delta's 
tickets by computer, and provides time savings 
to customers and airline employees, as well 
as accurate up-to-the-minute fare information 
for our affiliated travel agents. 
Environmental Matters 
In keeping with Delta's policies on environ 
mental protection, programs for the reduction 
of air, noise and water pollution have been 
developed and are being implemented. Un 
burned carbon emissions, visible as a smoke 
trail, are being eliminated from our DC-9 
engines through a program of engine modi 
fication started several years ago and now 
virtually completed. Considerable progress 
has been made in the reduction of both smoke 
and noise pollution in the engines of the new 
wide-bodied aircraft Delta has purchased. 
12 
 Both the DC-10 and L-1011 have passed the 
Federal Air Regulation tests for noise levels 
and these aircraft will be noticeably quieter 
than previous generations of jets. In addition, 
Delta has adopted operating procedures 
which reduce noise at airports without sac 
rificing safety. These procedures include gain 
ing maximum altitude before passing above 
communities in the vicinity of the airports 
Delta serves, power reductions after take-off, 
use of runways which avoid flight patterns 
over residential areas, and curfews on jet 
engine ground operation at night. 
Incorporated in the expanded Atlanta 
Maintenance and Overhaul Base is a new 
industrial waste treatment plant. This $2.5 
million plant will insure that all waste water 
released from the maintenance facility will 
be free of all contaminants. All new ground 
equipment and ground facilities include, 
where appropriate, the latest available tech 
niques for minimizing pollution in all its forms. 
Security Programs 
In response to the alarming trend of aircraft 
hijacking, piracy, and extortion, your company 
is cooperating to the fullest extent with the 
Federal Aviation Administration and law 
enforcement agencies in an effort to stop this 
threat to the airline industry. Our security 
program includes passenger and baggage 
screening techniques, detection devices to 
reduce the risk of weapons being smuggled 
on board aircraft, and a new positive identi 
fication program for authorized personnel in 
sensitive areas at airports and other company 
facilities. In addition, the ventral stairway 
on certain aircraft types has been rendered 
inoperable in flight, making it impossible to 
parachute from the aircraft. 
13 
 Personnel 
Total employees at June 30, 1972, numbered 
21,309, an increase of less than 3% over the 
previous year's 20,786. Total salaries and 
related employee benefit costs increased 13% 
to $324.3 million, equal to 43<P of each 
revenue dollar. 
On November 1, 1971, Mr. C. H. Dolson 
retired as Chairman of the Board and Chief 
Executive Officer after an outstanding career 
which spanned more than 37 years. Fortu 
nately, Delta will still benefit from Mr. Dolson's 
experience and judgment since he will con 
tinue to serve as a director and as chairman of 
the recently created Executive Committee. To 
succeed Mr. Dolson, Mr. W. T. Beebe was 
elected Chairman of the Board and Chief 
Executive Officer and Mr. David C. Garrett, Jr. 
was named President. 
Also retiring during the year was Captain 
T. P. Ball, Vice President-Flight Operations, 
who made many significant and lasting con 
tributions to Delta and the industry during 
his 34 year Delta career. 
Shortly after his promotion to Vice Presi 
dent-Technical Operations,Mr. James H. Turner 
suffered a fatal heart attack in November, 
1971. Having served both Delta and his 
community with quiet distinction for more 
than 30 years, Mr. Turner will be remembered 
for the personal warmth and compassion 
which endeared him to all who knew him. 
Due to Delta's historic policy of devel 
oping and promoting executives and managers 
from within, highly capable and experienced 
replacements were immediately available to 
provide consistent policy direction and sta 
bility of management. In Delta's Operations 
Division, Mr. H. T. Fincher was advanced to 
the position of Senior Vice President-Opera 
tions, Mr. Don Hettermann to Vice President- 
14 
 Technical Operations, Mr. C. A. Smith to 
Vice President-Flight Operations, 
Mr. John P. Davis to Assistant Vice President- 
Maintenance and Mr. Hollis L. Harris to 
Assistant Vice President-Engineering. 
Mr. Winship Nunnally chose not to stand 
for reelection as a director and retired after 
more than 24 years of active service on our 
Board. He has been elected a Director Emer 
itus and takes with him our gratitude for his 
contributions to Delta's development. 
Shortly after the close of the fiscal year, 
Mr. George B. Storer, Sr. and Mr. Bill Michaels 
were elected to the Board of Directors. 
Regulatory Matters 
During the fiscal year regulatory activities 
continued to be concentrated in the field of 
rate and fare investigations and merger pro 
ceedings, although more activity developed 
with respect to new routes than has been 
true for some three to four years. 
Route Cases 
On the domestic system, the recommendation 
of a Civil Aeronautics Board Trial Examiner 
that Delta be granted nonstop authority be 
tween Atlanta and Cleveland has been re 
manded to the Examiner for further hearings 
to update the record. In the earlier hearings 
the Examiner also recommended one addi 
tional competitor in Delta's Atlanta-Cincin- 
nati and Atlanta-Detroit markets, and these 
matters were also remanded. 
The proceeding ordered by a Federal appeals 
court to review the earlier denial of Delta's 
nonstop Memphis-Miami and Nashville- 
Atlanta nonstop applications has now been 
submitted to the C AB for final decision. The 
cab's Trial Examiner has recommended 
Delta for the Memphis-Miami market, but 
selected another applicant for the Nashville- 
Atlanta market. Delta continues to pursue 
15 
 its application for nonstop authority in both 
markets. 
In another proceeding remanded by the 
Federal courts to the CAB, in this instance to 
review an earlier grant of nonstop Miami- 
Houston authority to Delta, the Examiner's 
initial decision (issued on July 21, 1972) 
recommended that Continental, not Delta, 
be certificated at the conclusion of this pro 
ceeding. The full CAB will review this initial 
decision and, before the Board, Delta will 
continue vigorously to seek permanent non 
stop authority. In the meantime. Delta con 
tinues to operate the route under temporary 
exemption authority pending the CAB's final 
decision. 
Hearings have also been completed in the 
Detroit-Nashville Nonstop Service Investi 
gation. The CAB's Bureau of Operating 
Rights has recommended another applicant 
in this case, but Delta will continue to pursue 
its application. An Examiner's initial decision 
is expected late in 1972. 
On the international system, the CAB 
reversed a Hearing Examiner's recommenda 
tion in favor of Delta, and granted other 
carriers authority to fly nonstop between 
Jamaica and the Chicago and Atlanta gate 
ways. Delta has filed an application for non 
stop authority between Atlanta and London, 
England with the right to operate beyond 
London to Frankfurt, Germany. A motion 
for expedited hearing on this application 
has been filed with the CAB. 
Various applications have been filed by 
other carriers for new route authority or for 
realignment of their existing authority which 
would create new competition for Delta, but 
all of these proceedings are in preliminary 
stages. 
16 
 Delta-Northeast Merger 
In May, 1972, the CAB approved the 
merger of Northeast Airlines into Delta and 
the merger was consummated after the end 
of the fiscal year, on August 1, 1972. This 
merger has expanded Delta's operations into 
the East Coast to Florida and various New 
England, Bahamas and Bermuda markets, 
and will result in new routings between the 
present system of the two carriers. A court 
challenge to the merger by Eastern and 
National will be argued in late September, 
1972 and thereafter decided, but a related 
request to stay consummation of the merger 
was denied by the court in July. 
In its order approving the Delta-Northeast 
merger, the CAB provided for transfer of all 
of Northeast's authority to Delta, but ordered 
that Delta should not operate the Miami-Los 
Angeles route pending final decision in a new 
proceeding to be instituted for the purpose of 
re-examination of this authorization. Delta 
has requested that this proceeding move 
forward as soon as possible. 
Delta is also a party to the New England 
Service Investigation, in which the former 
Northeast Airlines' and now Delta's route 
system in northern New England is being 
investigated to determine what adjustments, 
if any, should be made in that system and in 
the related route patterns of other carriers to 
serve the future needs of the northern New 
England communities. Hearings will begin in 
September of 1972, and the Trial Examiner's 
initial decision is not expected before the 
summer of 1973. 
17 
 Other Merger Cases 
Near the end of the fiscal year Mohawk 
Airlines merged into Allegheny Airlines. The 
expanded Allegheny and the expanded Delta 
systems will bring the two companies some 
what more into competition than has been 
true in the past. A pending merger between 
Eastern Air Lines and Caribbean Atlantic 
Airlines could affect Delta's Caribbean 
operations, if approved by the CAB, but this 
proceeding still awaits CAB and Presidential 
decision. A proposed merger between Ameri 
can Airlines and Western Air Lines was dis 
approved. A National Airlines-Northwest 
Airlines merger remains pending. 
Rate and Fare Cases 
The two-and-one-half year old investigation 
into the structure and level of U.S. airline 
passenger fares continued throughout the 
fiscal year. Five of the Investigation's ten 
phases have been fully decided, and two 
others await only a response to requests for 
reconsideration of the Board's basic decision. 
In one phase, decided during the previous 
fiscal year, the CAB tentatively concluded 
that basic airline fares should be increased 
by 9% over those then in effect. In May, 1971, 
the CAB permitted 6% of the increase to 
become effective. 
In August, 1972, the CAB adjusted the 
total to 8.9% and, with Price Commission 
approval, granted the remaining 2.9% (2.7% 
above present fares) for effectiveness on 
September 5, 1972. Other phases of the 
Investigation still pending involve special 
types of charges, such as discount fares, as 
well as the overall fare structure (the rela 
tionship between different basic types of 
fares). Completion of the entire Investigation 
18 
 is not expected until some time in calendar 
year 1973. 
In another pending proceeding investi 
gating the propriety of the passenger fare 
levels actually charged from October 1969 
to mid-October 1970, a CAB Examiner has 
concluded that the fares were lawful. It is 
expected that the CAB itself will review this 
decision. Court cases which seek reparations 
for passengers on the theory that the October 
1969-October 1970 fares were improper 
remain in abeyance pending conclusion of 
this proceeding before the CAB. 
The comprehensive investigation into the 
reasonableness and the structure of domestic 
airline air freight rates; an investigation of 
the air mail rate level and structure; and 
miscellaneous other rate and fare proceedings 
remain in preliminary stages before the CAB. 
19 
 Delta Air Lines System Route Map 
i- 
 DELTA AIR LINES, INC. 
Balance Sheets 
June 30, 1972 and 1971 
ASSETS 
CURRENT ASSETS: 
Cash 
Short-term cash investments, 
at cost 
1972 
(In Thi 
$ 39,327 
27,014 
1971 
ousancis) 
$ 34,854 
66,341 34,854 
Accounts receivable, net 45,008 43,484 
Refund of prior years' Eederal 
income taxes 2,491 
Maintenance and operating 
supplies, at average cost 5,155 5,558 
Prepaid expenses, etc 2,075 1,902 
Total current assets 118,579 88,289 
PROPERTY AND EQUIPMENT 
(Notes 1 and 3); 
Flight 
Equipment Other 
Cost -- 
1972 $869,315 $126,375 995,690 
1971 822,280 1 16,824 939,104 
Accumulated 
depreciation -- 
1972 379,273 58,407 437,680 
1971 311,221 47,806 359,027 
558,010 580,077 
Advance payments for new 
equipment (Note 3) 98,717 72,813 
656,727 652,890 
NOTES RECEIVABLE FROM 
NORTHEAST AIRLINES,INC., 
noninterest-bearing(Note8) 5,400 1,000 
DEFERRED CHARGES, being 
amortized; 
Advance for Supersonic 
Transport development 
(Note 5) 978 
Boeing 747 preoperating 
expense (Note 1) -- 
1,306 
-- 
2,284 
$780,706 $744,463 
22 
 DELTA AIR LINES, INC. 
LIABILITIES AND 
STOCKHOLDER EQUITY 1972 1971 
(In Thousands) 
CURRENT LIABILITIES; 
Current maturities of long- 
term debt $ 37,467 $ 37,675 
Short-term notes payable 
Accounts payable and accrued 
-- 
14,910 
liabilities 
Unearned transportation 
55,640 47,712 
revenue 13,686 10,965 
Accrued income taxes 14,789 765 
Air travel plan deposits 1,663 1,678 
Total current liabilities 123,245 113,705 
LONG-TERM DEBT (Note 2).... 167,422 188,889 
DEFERRED CREDITS 
(Notes 1 and 4); 
Deferred Federal income taxes. 
. 
Unamortized investment tax 
148,581 136,459 
credits 23,925 21,586 
172,506 158,045 
STOCKHOLDER EQUITY 
(Notes 7 and 8): 
Common stock, par value 
$3.00 per share-- 
Authorized 25,000,000 shares 
Outstanding 19,159,870 
shares in 1972 and 
19,125,000 shares in 1971. 
. . 
57,479 57,375 
Additional paid-in capital 
Retained earnings (of which 
23,456 22,450 
$89,300,000 is restricted as 
to the payment of cash 
dividends under credit 
agreements) 236,598 203,999 
317,533 283,824 
COMMITMENTS (Note 3) 
$780,706 $744,463 
The accompanying notes are an integral part of these balance sheets. 
23 
 DELTA AIR LINES, INC. 
Statements of Income 
For the years ended June 30, 1972 and 1971 
OPERATING REVENUES; 
Passenger 
1972 1971 
(In Thousands) 
$690,022 $600,637 
Cargo 59,408 54,327 
Other, net 8,139 6,282 
Total operating revenues 757,569 661,246 
OPERATING EXPENSES; 
Elying operations 181,208 164,334 
Maintenance 108,520 95,121 
Aircraft and traffic 
servicing 143,869 125,837 
Promotion and sales 75,761 67,691 
Depreciation and amortization 
(Notes 1 and 5) 82,990 76,152 
Passenger service 67,493 59,548 
General and administrative. 
. 
22,276 19,792 
Total operating expenses 682,117 608,475 
Income from operations 
before income taxes 75,452 52,771 
OTHER EXPENSE(INCOME); 
Interest expense 12,991 15,947 
Less --Interest capitalized 
on advances for equipment 
(Note 1) (3,770) (4,639) 
Miscellaneous income, net. . . 
9,221 
(1,140) 
11,308 
(730) 
Gain on disposition of 
aircraft, less income taxes 
of $908,000 (989) 
INCOME BEFORE 
INCOME TAXES 
7,092 
68,360 
10,578 
42,193 
PROVISION FOR INCOME 
TAXES (Note 4) 26,191 12,199 
NET INCOME !5 42,169 $ 29,994 
NET INCOME PER 
COMMON SHARE 
(Note 1) $2.20 $1.57 
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, 1972 and 1971 
1972 1971 
(In Thousands) 
BALANCE AT BEGINNING 
OF YEAR $203,999 $183,567 
Net income 42,169 29,994 
Less --Cash dividends -- 
246,168 213,561 
$.50 per share 
BALANCE AT END OF 
YEAR (restricted as 
9,570 9,562 
indicated on balance sheet) $236,598 $203,999 
Statements of Additional Paid-in Capital 
For the years ended June 30, 1972 and 1971 
1972 1971 
(In Thousands) 
BALANCE AT BEGINNING 
OEYEAR $ 22,450 $ 22,450 
Excess of proceeds over par 
value of 34,870 common 
shares issued under 
employee stock option 
plan (Note 7) 1,006 -- 
BALANCE AT END OF 
YEAR $ 23,456 $ 22,450 
The accompanying notes are an integral part of these statements. 
Auditors' Report 
Arthur Andersen 8c Co. 
Atlamta, Geohoia 
To the Stockholders and Board of Directors 
of Delta Air Lines. Inc.: 
We have examined the balance sheets of Delta Air Lines, 
Inc. (a Delaware corporation) as of June 30. 1972 and 1971, 
and the related statements of income, retained earnings, addi 
tional paid-in capital and changes in financial position for the 
years then ended. Our examination was made in accordance 
with generally accepted auditing standards, and accordingly 
included such tests of the accounting records and such other 
auditing procedures as we considered necessary in the circum 
stances. 
In our opinion, the financial statements referred to above 
present fairly the financial position of Delta Air Lines, Inc. as 
of June 30, 1972 and 1971, and the results of its operations and 
changes in financial position for the years then ended, in con 
formity with generally accepted accounting principles consis 
tently applied during the periods. 
Atlanta, Georgia, 
August 22, 1972. 
25 
 DELTA AIR LINES. INC, 
Statements of Changes in Financial Position 
T'or the years ended June 30, 1972 and 1971 
1972 1971 
FUNDS PROVIDED BY: 
(In Thousands) 
Net income $ 42,169 $ 29,994 
Add expenses not requiring cur- 
rent outlay of working capital- 
Depreciation and 
amortization 82,990 77,553 
Deferred income taxes... 
Investment tax credit, net 
12,122 21,028 
of amortization 2,339 (4,981) 
Total from operations 
. . 
139,620 123,594 
Dispositions of property 4,049 643 
Refund of SST advance 
Common stock issued under 
3,000 -- 
employee stock option plan 
Additional financing under 
1,110 -- 
bank credit agreement - 
20,000 
FUNDS USED FOR; 
147,779 144,237 
Property and equipment additions -- 
Flight equipment, including 
advances 80,457 117,464 
Other 11,135 15,860 
91,592 133,324 
Reduction of long-term debt . . . 
21,467 37,675 
Cash dividends 
Boeing 747 preoperating 
9,570 9,562 
expenses 
Advances to Northeast 
-- 
1.959 
Airlines, Inc 4,400 1,000 
INCREASE (DECREASE) IN 
127,029 183,520 
WORKING CAPITAL $ 20,750 $ (39,283) 
CHANGES IN WORKING 
CAPITAL COMPONENTS 
Increase(decrease)in -- 
Cash 
Receivables, net 
Other current assets 
Decrease (increase) in -- 
Current maturities of long 
terrn debt 
Short-term notes payable . 
Accounts payable and 
accrued liabilities 
Other current liabilities 
.. . 
$ 31,487 $(10,508) 
(967) 3,865 
(230) 1,003 
208 (14,296) 
14,910 (14,910) 
(7,928) (8,684) 
(16,730) 4,247 
$ 20,750 $(39,283) 
I he accompany mg notes are an integral part of these statements. 
26 
 DELTA AIR LINES, INC. 
Notes to Financial Statements 
June 30, 1972 and 1971 
1. SUMMARY OF ACCOUNTING POLICIES: 
Depreciation: Substantially all of the Company's 
flight equipment is being depreciated on a straight- 
line basis to residual values (10% of cost) over a 
10-year period from dates placed in service. Ground 
property and equipment is depreciated on a 
straight-line basis over its estimated service life 
(various lives ranging from 3 to 30 years). 
Interest Capitalized: Interest on advances for 
new equipment is capitalized based on the Com 
pany's current interest rate on long-term debt. 
Capitalization of interest ceases when the equip 
ment is placed in service. 
Preoperating Costs: When new aircraft fleets 
are introduced, training costs incurred up to the 
time the initial aircraft is placed in service are de 
ferred, and then amortized on a straight-line basis 
generally over a period of two years or less. Amor 
tization of $1,959,000 of such Boeing 747 pre 
operating costs over an 18-month period was com 
pleted at June 30,1972. 
Retirement Costs: The Company's policy is to 
fund each year's accrued costs under its employee 
retirement, disability, and survivor benefit plans, 
which costs include amortization of prior service 
costs over a thirty-year period. (See Note 6.) 
Income Taxes: Total income taxes are provided 
by applying the applicable tax rates to book in 
come before income taxes. Deferred Federal income 
taxes are provided for all significant items (prin 
cipally depreciation) where there is a timing dif 
ference in recording such items for financial re 
porting purposes and for income tax purposes. 
Utilized investment tax credits are amortized (as 
a reduction of the provision for income taxes) over 
the approximate life of the related equipment. (See 
Note 4.) 
Earnings Per Share: Net income per common 
share is computed based on the weighted average 
number of outstanding shares during the year 
(19,141,980 shares in 1972 and 19,125,000 
shares in 1971). Outstanding stock options have 
no material dilutive effect on net income per com 
mon share. 
27 
 DELTA AIR LINES, INC, 
2. LONG-TERM DEBT: 
At June 30, 1972 and 1971, the Company's 
long-term debt (including current maturities) con 
sisted of the following: 
1972 1971 
, . ,, , , , , 
(In Thousands) 
(a) Due banks under unsecured 
notes carrying an interest 
rate of 34'% above the 
prime rate, repayable (as 
amended in September, 
1971) in quarterly install 
ments of $8.0 million to 
September 30, 1976, with 
the remaining $52.0 
million payable on 
December 31, 1976 $188,000 $204,000 
(b) Due insurance companies 
under 6% unsecured notes, 
repayable in installments 
to October, 1974 ($5.0 
million payable in fiscal 
1973), and 16,250 21,250 
(c) Due the manufacturer of 
the Deltamatic Reserva 
tions System, repayable in 
quarterly installments 
(including 43^% interest) 
to August, 1974 ($467,000 
payable in fiscal 1973) 639 1,314 
Total 
. . 
204,889 226,564 
Less --Current maturities 
. . . 
37,467 37,675 
$167,422 $188,889 
3. COMMITMENTS: 
At June 30, 1972, the Company had purchase 
commitments and options for the following air 
craft and related spare engines: 
A ircraft 
Advances 
A nd Other 
Expenditures to 
June 30. 1972 
Estimated 
Expenditures 
After 
fune 30. 1972 
(In Thousands) 
24 Lockheed L-1011 
. . 
$ 65,613 $325,000 
14 Boeing 727-200 13,769 88,000 
14 Boeing 727-200 (Options) . 
420 102,000 
79,802 515,000 
5 McDonnell Douglas DC-10 . 
28,000 (28,000) 
$107,802 $487,000 
28 
 DELTA AIR LINES. INC. 
The last 6 of the 24 Lockheed L-1011 aircraft are 
cancellable on or before October 31, 1973. Subse 
quent to June 30, 1972, the Company agreed in 
principle with The Boeing Company, subject to 
execution of definitive agreements, to (a) exercise 
the outstanding options for 14 Boeing 727-200 air 
craft, and (b) secure options for an additional 14 
727-200 aircraft. In May, 1972, the Company en 
tered into an agreement with United Air Lines, 
Inc., wherein, subject to approval by the Civil 
Aeronautics Board, United will be substituted for 
the Company as purchaser of the 5 McDonnell 
Douglas DC-10 aircraft. Accordingly, the Company 
will be reimbursed for all advances and other 
expenditures to date of delivery. Upon delivery to 
United beginning in October, 1972, the aircraft 
will be simultaneously leased to the Company for 
a period of approximately two and one-half years 
to May, 1975. 
In connection with its aircraft acquisition pro 
gram, the Company has entered into agreements 
to sell its 16 Convair 880 aircraft, 13 Douglas 
DC-9-14 aircraft and 7 Douglas DC-8-33 aircraft. 
The Company leases certain airport facilities, 
ticket offices, etc., under long-term agreements. 
Minimum annual rentals are approximately $9.5 
million under such leases expiring after June 30, 
1975. 
4. INCOME TAXES: 
The provision for income taxes for 1972 and 
1971 consists of the following: 
1972 1971 
(In Thousands) 
Current income taxes -- 
Federal (refund in 1971). 
. . . . 
$11,056 $(2,491) 
State 674 (1,357) 
Deferred Federal income taxes 
. . 
12,122 21,028 
Investment tax credits 8,654 1,121 
32,506 18,301 
Less --Amortization of utilized 
investment tax credits over 
approximate life of related 
equipment 6,315 6,102 
$26,191 $12,199 
In 1971, the provision for state income taxes was 
reduced by $1,775,000, representing provisions 
made in prior years and no longer required. 
29 
 DELTA AIR LINES, INC. 
At June 30, 1972, all available investment tax 
credits have been utilized to reduce the Company's 
Federal income taxes payable. 
The Company has filed a petition with the U.S. 
Tax Court contesting income tax deficiencies as 
sessed by the Internal Revenue Service for the 
taxable years 1963 through 1965. The petition has 
been granted and the case is scheduled for trial in 
January, 1973. In the opinion of management, the 
settlement of this matter will not have a material 
effect on the Company's financial position. 
5. ADVANCE FOR SUPERSONIC TRANSPORT 
(SST) DEVELOPMENT: 
Upon abandonment of the SST program by the 
U.S. Government, the Company received a refund 
in August, 1971, of the $3,000,000 originally ad 
vanced for SST development. In accordance with 
the accounting prescribed by the Civil Aeronautics 
Board, the $2,072,000 excess of the refund over 
the unamortized balance was credited to amortiza 
tion expense. As a result of the refund, 1972 net 
income was increased by $1,057,000 ($.05 per 
share). 
6. RETIREMENT PLANS; 
Substantially all of the Company's employees 
are covered under its noncontributory trusteed 
plans providing for retirement, disability, and sur 
vivor benefits. A complete updating of the benefits, 
actuarial methods and assumptions was effected 
in 1971 for nonpilot personnel and in 1972 for 
pilots. The total expense under these plans 
amounted to $19.1 million in 1972 and $16.7 
million in 1971. The Company's policy is to fund 
each year's accrued costs under these plans, which 
costs include amortization of prior service costs 
over a thirty-year period. 
At June 30, 1972 and 1971, the assets of the 
plans exceeded the actuarially computed present 
value of vested benefits under the plans. 
7. STOCK OPTIONS; 
Under the Company's 1967 Qualified Stock 
Option Plan for 100,000 common shares, options 
for 99,250 shares have been granted at option 
30 
 DELTA AIR LINES, INC. 
prices ranging from $31,125 to $34.75 per share. 
Transactions during 1972 and 1971 areas follows: 
Option Shares 
Outstanding, 
1972 1971 
beginning of year. . . . 
99,250 99,250 
Granted ~ -- 
Exercised (34,870) -- 
Expired (250) -- 
Outstanding, end of year 64,130 99,250 
Exercisable, end of year 45,693 55,125 
In July, 1972, the Board of Directors approved, 
subject to stockholder approval, reserving an addi 
tional 500,000 shares of the Company's unissued 
common stock for stock options for officers and 
key employees. 
8. SUBSEQUENT MERGER WITH 
NORTHEAST AIRLINES, INC.: 
On August 1, 1972, Delta's merger with North 
east Airlines, Inc. became effective. Eastern Air 
Lines, Inc. and National Airlines, Inc. filed peti 
tions in the Court of Appeals for the District of 
Columbia seeking an injunction against the con 
summation of the merger. These petitions were de 
nied on July 28, 1972, but further hearings will be 
held in September, 1972, to consider Eastern's and 
National's contention that the merger was improp 
erly approved by the Civil Aeronautics Board. 
Under terms of the May 12, 1971 agreements 
with Northeast and Storer Broadcasting Company 
(majority stockholder of Northeast), Delta issued 
(a) 668,515 shares of its common stock for all of 
the outstanding common stock of Northeast, and 
(b) warrants to Storer to purchase 500,000 shares 
of Delta common stock at $48.00 per share on or 
prior to May 1, 1978, in exchange for Storer trans 
ferring to Delta the $40,085,000 owed by North 
east to Storer at August 1, 1972. At June 30, 1972, 
Storer and Delta had each advanced $5.4 million 
to Northeast under terms of an agreement pro 
viding for interim financing of Northeast's oper 
ations. 
The merger will be accounted for as a pooling 
of interests. See pages 34 through 37 for unau 
dited pro forma combined condensed financial 
statements of Delta and Northeast. 
31 
 DELTA AIR LINES. INC, DELTA AIR LINES, INC. 
Five Years of Delta Air Lines Growth Years ended June 30 
(Dollars expressed in thousands except per share figures) 
1972 
Operating revenues 
Passenger $690,022 
Cargo 59,408 
Other, net 8,139 
Total operating revenues $757,569 
Operating expenses 682,117 
Operating income $ 75,452 
Interest expense, etc., net 8,081 
Gain on disposition of aircraft, net 989 
Income before taxes $ 68,360 
Income taxes 26,191 
Net income $ 42,169 
Net income per share $2.20 
Dividends paid $9,570 
Dividends paid per share $0.50 
Total assets $780,706 
Stockholder equity $317,533 
Stockholder equity per share $16.57 
Shares of common stockoutstanding 19,159,870 
Revenue passengers enplaned 17,880,837 
Available seat miles (000) 22,105,725 
Revenue passenger miles (000) 10,609,729 
Passenger load factor 48.00% 
Break-even load factor 42.75% 
Available ton miles (000) 3,072,534 
Revenue ton miles (000) 1,276,211 
Passenger revenue per passenger mile 6.504 
Operating expenses per available seat mile 3.084 
Operating expenses per available ton mile 22.204 
1971 1970 1969 1968 
$600,637 $565,670 $470,024 $396,793 
54,327 50,786 42,536 32,141 
6,282 5,673 3,553 2,628 
$661,246 $622,129 $516,113 $431,562 
608,475 529,179 433,938 363,140 
$ 52,771 $ 92,950 $ 82,175 $ 68,422 
10,578 14,642 8,949 3,036 
-- 
-- 
174 235 
$ 42,193 $ 78,308 $ 73,400 $ 65,621 
12,199 33,781 34,209 29,487 
$ 29,994 $ 44,527 $ 39,191 $ 36,134 
$1.57 $2.33 $2.05 $1.89 
$9,562 $7,650 $7,650 $7,650 
$0.50 $0.40 $0.40 $0.40 
$744,463 $692,016 $634,265 $468,249 
$283,824 $263,392 $226,515 $194,974 
$14.84 $13.77 $11.84 $10.19 
19,125,000 19,125,000 19,125,000 19,125,000 
16,373,467 15,784,053 13,927,366 11,783,372 
, 
20,553,892 18,559,724 14,768,892 11,972,737 
9,719,346 9,397,913 8,249,085 7,116,095 
47.29% 50.64% 55.85% 59.44% 
43.13% 42.31% 46.07% 49.19% 
2,799,440 2,508,105 1,994,826 1,609,704 
1,172,819 1,125,409 965,795 814,782 
6.184 6.024 5.704 5.584 
2.964 2.854 2.944 3.034 
21.744 21.104 21.754 22.564 
32 33 
 DELTA AIR LINES. INC. 
Delta Air Lines, Inc. and Northeast Airlines, Inc. 
Pro Forma Combined Condensed Balance Sheets 
June 30, 1972 (Unaudited) 
ASSETS DELTA NORTHEAST COMBINED 
CURRENT ASSETS: 
Cash and cash 
investments $ 66,341 
(In 7'honsancls) 
$ 8,377 $ 74,718 
Receivables, net 45,008 12,282 57,290 
Supplies, prepaid 
expenses, etc. 7,230 3,352 10,582 
118,579 24,011 142,590 
PROPERTY AND 
EQUIPMENT: 
Flight and ground 
equipment 
Less --Accumulated 
depreciation . . 
Advance payments 
995,690 
437,680 
98,717 
48,943 
15,237 
1,044,633 
452,917 
98,717 
656,727 33,706 690,433 
NOTES RECEIVE- 
ABLE FROM 
NORTHEAST 
DEFERRED 
CHARGES, ETC. 
(Note A) 
5,400 
5,717 5,717 
5,400 5,717 5,717 
$780,706 $63,434 $838,740 
34 
 DELTA AIR LINES, INC. 
LIABILITIES AND 
STOCKHOLDER 
EQUITY DELTA NORTHEAST COMBINED 
CURRENT 
LIABILITIES: 
Current maturities 
of long-term debt 
(NoteE) $ 37,467 
(In Thousands) 
$ 2,863 $ 40,330 
Accounts payable 
and accrued 
liabilities, etc. 
. . . 
85,778 25,227 111,005 
123,245 28,090 151,335 
OTHER 
LIABILITIES; 
Long-term debt, 
less current 
maturities 
(NoteE) 167,422 38,026 205,448 
Amounts due Storer 
Broadcasting.... 39,916 
Notes payable 
to Delta 5,400 
167,422 83,342 205,448 
DEFERRED 
CREDITS 172,506 172,506 
COMMITMENTS 
(Note C) 
STOCKHOLDER 
EQUITY: 
Common stock 
and additional 
paid-in capital. . . 
80,935 6,685 127,536 
Retained earnings 
(deficit) 236,598 (54,683) 181,915 
317,533 (47,998) 309,451 
$780,706 $63,434 $838,740 
The accompanying notes on pages 36 and 37 are an integral part 
of these condensed balance sheets. 
35 
 DELTA AIR LINES. INC. 
Delta Air Lines, Inc. and Northeast Airlines, Inc. 
Pro Forma Combined Condensed Statements Of Income 
1972 and 1971 (Unaudited) 
(Notes A and B) 
1972 1971 
(Itt Thousands) 
Operating revenues $883,566 $784,082 
Operating expenses . 
816,952 736,013 
66,614 48,069 
Interest expense 14,156 16,184 
Other income, net (1,980) (287) 
Extraordinary charge(Northeast). - 
700 
Income before income taxes 54,438 31,472 
Income taxes (Note B) 26,191 12,199 
Net income $ 28,247 $ 19,273 
Pro forma earnings per share 
(NoteD) $1.43 $.97 
The accompanying notes are an integral part of these statements. 
Delta Air Lines, Inc. and Northeast Airlines, Inc. 
Notes to Pro Forma Combined Condensed Statements 
(Unaudited) 
(A) On the terms set forth in Note 8 to Delta's 
financial statements, the pro forma combined state 
ments give effect to the merger as a pooling of 
interests. These statements are not necessarily 
indicative of future results or results which would 
have been obtained during these periods. Pending 
detailed study, no effect has been given in the 
statements for possible adjustments to conform 
Northeast's methods of accounting for deferred 
charges with Delta's methods. 
(B) In the pro forma statements of income. 
Delta's years ended June 30, 1972 and 1971 have 
been combined with Northeast's years ended 
December 31, 1971 (net loss of $13,922,000) and 
1970 (net loss of $10,721,000). No effect has been 
given to income tax reductions resulting from these 
Northeast losses, which were included in Storer's 
consolidated income tax returns. 
For the six months ended June 30, 1972, North 
east had unaudited revenues of $74,178,000 and 
a net loss of $1,398,000. Pro forma earnings per 
share for 1972 and 1971 would have been $1.67 
and $.64, respectively, if Northeast's results for 
the twelve months ended June 30, 1972 and 1971 
had been combined with Delta's. 
36 
 DELTA AIR LINES, INC. 
' (C) In addition to Delta's purchase and lease 
commitments discussed in Note 3 to Delta's fi 
nancial statements, Delta assumed Northeast's 
long-term lease commitments for flight and ground 
equipment, which agreements provide for annual 
rentals of $15,700,000. 
(D) Pro forma earnings per share is computed 
based on the weighted average number of Delta's 
! outstanding shares plus the 668,515 Delta shares 
j issued for Northeast's common stock. The issuance 
of an additional 655,505 Delta shares upon as- 
: 
sumed exercise or conversion of Delta's stock op- 
I tions. Northeast's stock options and convertible 
I debentures assumed, and warrants issued to 
; Storer, would not have a material dilutive effect 
1 on pro forma earnings per share. 
I (E) On August 1,1972, Delta paid off $3,547,000 
i 
of Northeast's long-term debt, including applicable 
j current maturities. 
! 
37 
 DELTA AIR LINES, INC. 
Board of Directors 
R. W. FREEMAN Chairman of the Finance Committee 
New Orleans, Louisiana 
C. H. DOLSON 
W, T. BEEBE 
B. W. BIEDENHARN 
R. W. COURTS 
EMERY FLINN 
DAVID C. GARRETT, JR. 
EDWARD H. GERRY 
CHARLES H. KELLSTADT 
JOHN R. LONGMIRE 
R. S. MAURER 
BILL MICHAELS 
T. M. MILLER 
ROBERT OPPENLANDER 
CARLETON PUTNAM 
GEORGE M, SNELLINGS,JR. 
GEORGE B. STORER, SR. 
Chairman of the Executive Committee 
Atlanta. Georgia 
Atlanta. Georgia 
Monroe. Louisiana 
Atlanta, Georgia 
Miami, Florida 
Atlanta, Georgia 
New York. New York 
Miami, Florida 
St. Louis. Missouri 
Atlanta, Georgia 
Miami, Florida 
Atlanta. Georgia 
Atlanta. Georgia 
Washington, D C 
Monroe, Louisiana 
Miami, Florida 
38 
 DELTA AIR LINES, INC. 
Officers 
W. T BEEBE Chairman of the Board & Chief 
Executive Officer 
DAVID C. GARRETT. JR. President 
FINANCE 
ROBERT OPPENLANDER 
W. A, ATCHISON 
M O. GALLOWAY 
PAUL W. PATE 
J. D DUNN 
J. R HOWELL 
HUGH H. SAXON 
Senior Vice President -- 
Finance & Treasurer 
Vice President -- 
Computer Services 
Vice President -- 
Comptroller 
Vice President -- 
Properties 
Asst Vice President -- 
Purchasing 
Asst Treasurer 
Asst Treasurer 
LEGAL & CORPORATE AFFAIRS 
R. S. MAURER 
MORRIS SHIPLEY 
J W. CALLISON 
A C. FORD 
FRANK F. ROX 
GEORGE E. SHEDD 
SIDNEY F. DAVIS 
IKE LASSETER 
Senior Vice President-- General Counsel 
& Secretary 
Vice President -- 
Government Affairs 
Asst Vice President -- 
Law 
Asst Vice President -- 
Long Range Planning 
Asst Vice President -- 
Law 
Asst Vice President -- 
Public Relations 
Asst. Secretary & Asst, to General Counsel 
Asst Secretary 
MARKETING 
I M MILLER 
SHELBY D. DEMENT 
CHARLES P. KNECHT 
J. A. COOPER 
R, L. GIBSON 
j.T MAPLES 
J W. MEYER 
HENRY ROSS 
Senior Vice President -- 
Marketing 
Vice President -- 
Marketing Administration 
Vice President -- 
Sales 
Asst Vice President -- 
Marketing 
Asst Vice President--Traffic 
Administration 
Asst Vice President -- 
Marketing Planning 
Asst Vice President -- 
Customer Relations 
Asst Vice President -- Advertising & 
Sales Promotion 
OPERATIONS 
HOYTT FINCHER 
E. L. HAMNER 
D. P. HETTERMANN 
C. A. SMITH 
j. K BURNETTE 
JOHN P DAVIS 
HOLLIS L. HARRIS 
JACK S. KING 
W. L. MILLER 
J F. NYCUM 
L G. RODEFELD 
C. B WILDER 
Senior Vice President -- 
Operations 
Vice President -- 
Stations 
Vice President -- 
Technical Operations 
Vice President -- 
Flight Operations 
Asst Vice President -- 
Quality Control 
Asst Vice President -- 
Maintenance 
Asst Vice President --Engineering 
Asst Vice President -- 
Elight Control 
Asst. Vice President -- 
Materiel Services 
Asst Vice President -- 
Flight Equipment 
Development 
Asst Vice President -- 
Communications 
Asst Vice President -- 
Operations 
Administration 
PERSONNEL 
R W ALLEN 
R H WHARTON 
J. A YORK 
Senior Vice President -- 
Personnel 
Asst Vice President -- 
Employee Relations 
Asst Vice President -- 
Employee Services 
39 
 DELTA AIR LINES, INC. 
Transfer Agents 
The Citizens and Southern National Bank 
99 Annex 
Atlanta, Georgia 30399 
The First National City Bank 
111 Wall Street 
New York, N.Y. 10015 
Registrars 
Trust Company of Georgia 
P.O. Box 4418 
Atlanta, Georgia 30302 
Morgan Guaranty Trust Company 
30 West Broadway 
New York, N.Y. 10015 
Common Stock 
Listed on the New York Stock Exchange 
Auditors 
Arthur Andersen & Co. 
Annual Meeting 
October 26, 1972, Monroe, Louisiana 
Notice to the Stockholders of Delta Air Lines, Inc. 
This notice is published in accordance with regulations 
adopted by the Civil Aeronautics Board. 
Any person who owns more than 5% of the capital stock 
or capital of an air carrier as of December 31 of any year, either 
beneficially or as trustee, is required to file a report with the 
C.A.B. on or before April 1 of the following year containing 
certain information required by Section 245.13 of the C.A.B. 
Economic Regulations. 
Any person acquiring more than 5% of the capital stock 
or capital is required to file a report within 10 days of the 
acquisition. 
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, Hartsfield Atlanta International Airport, 
Atlanta, Georgia 30320 
40