1997 Annual Report 
_....... elta's 1997 
 
earnings were 
the highes . 
in Compan-y 
history . .  
 BUSINESS DESCRIPTION 
Dita 
Air Lines, Inc. provides scheduled air transportation over an extensive route network. 
Based on calendar 1996 data, Delta is the largest U.S. airline based on aircraft departures and pas- 
sengers enplaned, and the third largest U.S. airline as measured by operating revenues and revenue 
passenger miles flown. Internationally, Delta is the leader across the North Atlantic, offering the most 
daily flight departures, serving the largest number of nonstop origin-destination markets, and carrying 
the most passengers of any U.S. airline. 
As of August 15, 1997, Delta provided scheduled air service to 149 cities in 42 states, the 
District of Columbia, Puerto Rico, and the U.S. Virgin Islands, and service to 41 cities in 25 foreign 
countries. Including flights operated with code-share partners, Delta's international route network 
covers 68 cities in 38 foreign countries. In addition to scheduled passenger service, Delta provides 
air freight, mail and related aviation services. 
Delta is incorporated under the laws of the state of Delaware and is subject to government reg- 
ulation under the Federal Aviation Act of 1958, as amended, as well as many other federal, state and 
foreign laws and regulations. Delta Air Lines' corporate headquarters is in Atlanta, Georgia. 
TABLE OF CONTENTS 
A Message from Leo F. Mullin 
Operational Review 
Route System 
Directors and Officers 
Financial Review 
Report of Independent 
Public Accountants 
Shareholder Information 
Delta Air Lines At - A-Glance 
page 9 
p age I 0 
page 16 
page 2 0 
page 2 I 
page 4 9 
page 52 
page 53 
 I Net Income Operating Income 
Data excludes restructuring and other non-recurring charges 
and the cumulative effect of an accounting change. 
1 
1997 ANNUAL REPORT 
1,600 
1,200 
800 
400 
0 
-400 
94 95 96 91 
 Financial Highlights 
FI SCAL Y EA R E ND IN G J U N E 30 , 199 7 
Dollar amounts in millions, except per share data. 
Operating data excludes restructuring and other non-recurring charges and the cumulative effect of an accounting change. 
1997 
Operating Revenues $ 13,590 
Operating Expenses $ 12,008 
Operating Income $ 1,582 
Operating Margin 11.6% 
Net Income $ 886 
Primary Income Per Common Share $ 11.72 
Fully Diluted Income Per Common Share $ 11.42 
Dividends Declared on Common Stock $ 15 
Dividends Per Common Share $ 0.20 
Common Shares Issued and Outstanding at Year End 73,695,987 
Debt-to-Equity Position 
Passenger Mile Yield 
Operating Revenue Per Available Seat Mile 
Operating Cost Per Available Seat Mile 
Operating Revenue Per 
Available Seat Mile 
In Cents 
94 95 96 97 
Unit revenue improved as 
a result of record passenger 
traffic and growth in other 
operating revenues. 
10.00 
9.50 
9. 00 
8.50 
8. 00 
Operating Cost Per 
Available Seat Mile 
In Cents 
10.00 
9.50 
9. 00 
8.50 
8.00 
94 95 96 97 
A slight increase in unit cost 
resulted from Delta's invest- 
ments in customer service and 
increased fuel costs. However, 
Delta remains the lowest cost 
maj or network carrier. 
41 %/59% 
12.79 
9.93 
8.78 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
1996 
12,455 
11,163 
1,292 
10.4% 
662 
11.13 
8.49 
10 
0.20 
67,778,106 
47%/53% 
13.lO<t 
9.53 
8.54 
Fully Diluted Income 
Per Common Share 
In Dollars 
94 95 96 97 
Change 
+ 9% 
+ 8% 
+ 22% 
+ 1.2 pts. 
+ 34% 
+ 5% 
+ 35% 
+ 50% 
+ 9% 
- 2% 
+ 4% 
+ 3% 
12. 00 
8.00 
4.00 
0.00 
-4. 00 
A balanced strategy that 
emphasizes both cost reduc- 
tion and revenue growth 
produced record earnings. 
Operating Highlights 
FIS C AL Y EAR ENDIN G J UN E 3 0 , 1997 
Operating data excludes restructuring and other non-recurring charges and the cumulative effect of an accounting change. 
Revenue Passengers Enplaned (Thousands) 
Revenue Passenger Miles (Millions) 
Available Seat Miles (Millions) 
Passenger Load Factor 
Breakeven Passenger Load Factor 
Cargo Ton Miles (Millions) 
Cargo Ton Mile Yield 
Fuel Gallons Consumed (Millions) 
Average Fuel Price Per Gallon 
Number of Aircraft in Fleet at Year End 
Average Age of Aircraft Fleet at Year End (Years) 
Stage 3 Aircraft at Year End (/ls a Percent of Total Aircraft) 
Average Seats Per Aircraft Mile 
Average Passenger Trip Length (Miles) 
Average Aircraft Flight Length (Miles) 
Average Aircraft Utilization (Hours per Day) 
Full-Time Equivalent Delta Employees at Year End 
Passenger Load 
Factor 
Percent 
94 95 96 97 
Delta carried more passen- 
gers in fiscal 1997 than any 
other US. airline and filled 
the most seats in its history. 
72.0 
69.5 
67. 0 
64.5 
62.0 
Average Aircraft 
UtiliZ11tion 
Hours Per Day 
94 95 96 97 
9.00 
8.75 
8.50 
8.25 
8.00 
A continued focus on operating 
efficiencies and reallocating 
aircraft has yielded a higher 
utilization of aircraft assets. 
1997 
101,147 
97,758 
136,821 
71.4% 
62.4% 
1,532 
36.14 
2,599 
66.28 
553 
11.8 
71% 
181 
966 
789 
8.6 
63,441 
1996 Change 
91,341 + 11% 
88,673 + 10% 
130,75 1 + 5% 
67.8% +3.6 pts. 
60.3% +2.1 pts. 
1,368 + 12% 
38.08 - 5% 
2,500 + 4% 
58.53 + 13% 
539 + 3% 
11.2 +0.6 yrs. 
68% +3.0 pts. 
181 - 
971 - 1% 
772 + 2% 
8.3 + 4% 
60,289 + 5% 
Full-Time Equivalent 
Employees 
In Thousands 
70.0 
65.0 
60.0 
55. 0 
50.0 
94 95 96 97 
As passenger volume grew, 
staffing levels were increased 
to ensure a consistent high 
level of service. 
 Source: U.S. Departmento/Transportation (DOT) data.for the 12 momhs ended DL COM UA NW US 
June 30, 1997. adjusted to exclude transport-related expenses as defined by DOT 
and restructuring and other non-recurring charges as reported by each company. 
2 
DELTA AIR LINES 
12.00 
11.00 
10.00 
9.00 
8.00 
 Source: US. DepartmentofTransportation data for the 12 months DL NWCO AA US UA 
ended June 30, I 997, adjusted to exclude restructuring and other 
non-recurring charges as reported by each company. 
___....... elta's 1997 
  
operating margin 
was the highest 
of the major .S. 
network carriers. 
3 . 
1 9 9 7 ANNUAL REP RT 
 ___........ elta has 
strengthened its 
balance sheet by 
reducing debt. 
Debt includes long-term debt and capital lease 94 95 96 97 
obligations (including current maturities). 
4 
DELTA AIR L I NES 
 Source: US. Department of Transportation data far the 12 months ended June 30, 1997. 
5 
199 7 ANNUAL REPORT 
 96 97 I Delta + Code-Share Alliances* I Delta Air Lines 96 97 
*Includes Delta Connection carriers. Data as of August 15, 1997. 
6 
DELTA AIR !INES 
 1.20 
0.90 
0.60 
0.30 
.________ 0 
I Delta Rate I Industry Rate 91 
96 12/96 3197 6/97 
Source: U.S. Department of Transportation data for the 12 months 
ended June 30, 1997. Industry data excludes Delta. 
___..... elta's strategic 
  
investments in 
 
customer service 
are beginning to 
produce results. 
7 
1 99 7 ANNUAL REP RT 
 8 
DELTA AIR LINES 
 A MESSAGE FROM 
Leo F Mullin 
President and Chief Executive Officer 
To Delta's Shareholders, People, Customers and Communities: 
It is a privilege to become associated with one of the great com- 
panies in America and one of the great airlines of the world. 
Delta Air Lines has a history of superb commitment to cus- 
tomer service and performance. That tradition speaks directly to 
the quality of the people of Delta. I look forward to working 
with such a dedicated group of professionals in helping to move 
Delta to an even greater level of success. 
This company has an excellent financial foundation. Dur- 
ing the past few years, there have been significant improvements 
in financial performance and operational efficiency. This Annual 
Report documents that fiscal 1997 was the best financial year in 
Delta's history. Operating and net profits set records. Costs were 
the lowest among network airlines, making productivity the high- 
est among our peers. Delta's balance sheet is one of the strongest 
of the major U.S. network carriers. The Company has leading 
competitive positions in the United States and across the North 
Atlantic, and is expanding in Latin America and Asia. 
9 
L E 0 F . MULLIN 
This financial and competitive recovery from the different 
challenges of earlier years is a tremendous achievement, and we 
will move forward from this strong base. Delta has created a 
powerful competitive advantage as the most efficient major net- 
work carrier. The crucial ingredient in efficiency is to continue 
to pursue the competitive advantage that has been achieved. 
We will do that starting now. 
We also will renew Delta's commitment to customer service 
excellence. Any company that faces up to financial difficulties as 
Delta has must make tough decisions. Sometimes, under those 
conditions, companies suffer an erosion in customer service, 
and some of the statistics indicate that that did happen at 
Delta. People at this company created a powerful reputation for 
service. Working together, we will regain that reputation. 
There is no contradiction or tradeoff in this commitment 
to customer service and efficiency. Both can be achieved 
simultaneously. Great companies do that everyday, and Delta 
is a great company. 
This combination of focus on customer service and on 
operational efficiency means our shareholders should expect 
superior financial returns. It is the function of any business orga- 
nization to produce value that yields these superior returns for 
shareholders. All of us at Delta will remtlin highly cognizant of 
that goal as we move forward. The critical task is to increase pos- 
itive momentum and build a winning organization - superior 
in all the respects to which we aspire. 
Thank you for your support in this early, invigorating period 
of my association with Delta .. 
Leo F. Mullin 
Preside n t a n d Chief Exec u ti v e Officer 
August 15, 1997 
199 7 ANNUAL R E P O R T 
 OPERATIONAL REVIEW 
The Story Behind 
the Numbers 
During the fiscal year ended June 30, 1997, Delta Air Lines generated outstanding results. 
Strong financial performance, competitive costs, an industry-leading profit margin and a 
record level of shareholders' equity combined to make 1997 a banner year for the Company. 
Financial Achievements 
Fiscal year 1997 operating income of $1.6 billion and net income 
of $886 million were the highest in Company history and repre- 
sented records for the second consecutive year. Fully diluted income 
per common share grew 35% to $11.42. These results exclude 
restructuring and other non-recurring charges. 
Delta's performance exceeded industry averages as well. Delta 
achieved a unit cost for the fiscal year of 8.78 cents, excluding 
restructuring and other non-recurring charges, which represent- 
ed the lowest unit cost of any large U.S. network airline for the 
12 months ended June 30, 1997. This low-cost leadership position, 
combined with a strong revenue performance, generated a fiscal 
1997 operating margin of 11.6%, up from 10.4% in fiscal 1996, 
excluding restructuring and other non-recurring charges. Delta's 
operating margin led the major U.S. network carriers for the 12 
months ended June 30, 1997. 
This year's success can be attributed to several factors. Cost- 
reduction and revenue-enhancing programs, improved asset uti- 
lization and favorable economic conditions all contributed to the 
record results. 
Three years ago, Delta initiated Leadership 7.5, a plan to sig- 
nificantly improve Delta's competitiveness through a concentrat- 
ed focus on reduction of total operating expenses and unit costs. 
As a result of its success in reducing costs, a continued strong 
economy and favorable airline industry conditions, Delta moved 
away from a strict focus on operating cost reduction toward a more 
balanced approach emphasizing both cost reduction and revenue 
improvement. Delta appropriately named this new approach the 
JO 
Balanced Strategy and set a new operating margin goal of 12% 
to be achieved by the end of fiscal 1999. Although this goal is 
aggressive and carries no guarantee of success, Delta is pursuing 
this objective as vigorously as it pursued its cost reduction plan 
m previous years. 
Delta's exceptional financial performance in fiscal 1997 fur- 
ther improved the Company's balance sheet. Driven by record 
earnings, cash flow from operations exceeded $2.0 billion in fiscal 
1997. Total long-term debt, including capital lease obligations, 
Operating Income Shareholders' Equity 
In Millions of Dollars In Millions of Dollars 
2,000 ,---,---,---,---,___, 3, 000 
I 
94 
1,500 
1,000 
500 
0 
95 96 97 94 95 96 
Operating income data excludes restructuring and other non-recurring 
charges and the cumulative effect of an alcounting change. 
2,500 
2,000 
1,500 
1,000 
97 
DELTA AIR LINE S 
 declined to $2. l billion at June 30, 1997 from $2.3 billion at 
June 30, 1996. Interest expense decreased $62 million over the 
same period. Shareholders' equity increased co a record $3 billion 
from $2.5 billion in fiscal 1996. 
The record earnings performance reported for the fiscal year 
and significant improvement in Delta's financial condition mark 
continued progress toward returning co solid investment grade 
status. Delta's long-term debt is currently one level below invest- 
ment grade status with Standard & Poor's (BB+) and has been 
investment grade with Moody's (Baa3) since April 1996. 
Maximizing Delta 's Assets 
A key to consistently generating superior financial returns is 
improving asset utilization. Over the past several years, the Com- 
pany has achieved substantial improvements in system profitabil- 
ity by reallocating assets to more profitable opportunities across 
the Delea system. As a result of these efforts, the financial perfor- 
mance of Delta's network is now better balanced than ever before. 
During fiscal 199? and 1996, Delea realigned domestic 
resources to enhance revenue opportunities and system profitabili- 
ty. Flights were increased at major hubs in Atlanta, Cincinnati and 
Sale Lake City. Smaller markets were transferred to Delea Connection 
carriers. Certain less profitable transatlantic and transpacific flights 
were discontinued. Significant capacity was shifted from Dallas- 
Fort Worth to Delta's second largest hub in Cincinnati. The 
remaining Dallas-Fort Worth operations were realigned to focus 
on ease-west connecting traffic. These moves paid off, with per- 
formance improving at all of Delta's hubs during fiscal 1996. 
In fiscal 1997, strategic moves capitalized on Delta's strengths 
in North America, particularly in the Southeast and Florida. Delea 
leveraged its Southeast leadership position by shifting assets from 
lower-yielding point-to-point markets to higher-yielding business 
markets from its hubs. Delea improved its ability to attract business 
passengers in key markets by increasing frequencies to business 
destinations, commencing new nonstop services to important West 
Coast destinations and introducing hourly flights to Chicago and 
Washington-National from Atlanta. 
Delea Express was launched in October 1996 to build on 
Delta's leading position in Florida. This highly productive low-cost 
operation preserves Delta's market position in one of the la~gesc 
revenue-producing segments of the system. The produce allows 
Delea to compete effectively with the large number of low-cost 
11 
DISTRIBUTION OF OPERATING REVENUE AND EXPENSES 
Operating Revenue For Fiscal Year Ending June 30, 1997 
In cernacional 
Passenger 17% 
Ocher 4% Cargo 4% 
Domestic Passenger 75% 
Operating Expenses For Fiscal Year Ending June 30, 1997 
Ocher Selling All Ocher 13% 
Expenses 6% 
Depreciation and 
Amortization 6% 
o&l 
Contracted Services 6% - - - - - - 
Passenger 
Commissions 8% 
Rentals and Landing Fees l 0% 
Salaries and 
Related Coses 37% 
Aircraft Fuel 14% 
Data excludes restnicturing and other non-recurring charges. 
earners servmg Florida and to capture a leading share of the 
rapid growth in leisure traffic (see Delea Express essay, page 15). 
Delea cook steps to build on its leading international position 
at New York-Kennedy and on its number one position across the 
North Atlantic during fiscal 1997. Delea offers nonstop service from 
the U.S. to the largest number of European destinations of any 
airline. Delea also offers the most daily d~partures and carries the 
most passengers between the U.S. and Europe of any U.S. carrier. 
The fiscal 1997 realignment of Delta's transatlantic operations 
continued the Company's strategy of ensuring chat every Delea air- 
craft is as productive as possible. Aircraft previously flying intra- 
European service through Fra!1kfurt were redeployed co the U.S. 
domestic system to increase feed traffic to Delta's international 
gateway at New York-Kennedy. In addition, the Company's least 
profitable point-to-point services between the U.S. and Frankfurt 
were discontinued. 
Transatlantic service was strengthened by increased frequen- 
cies in several markets and new nonstop service to four European 
destinations from Delta's hubs. Total transatlantic service from the 
New York-Kennedy, Atlanta and Cincinnati hubs was expanded 
to 245 weekly transatlantic flights to 26 European cities as of 
August 15, 1997. 
1 99 7 ANNUA L R E P R T 
 OPERATIONAL 
(continued) 
REVIEW 
Delta's success in turning around the financial performance 
of the transatlantic operation is reflected in the consistent improve- 
ment in operating profits in the Company's Atlantic entity since 
fiscal 1993, excluding restructuring and other non-recurring charges. 
These results are based on allocations performed in accordance with 
requirements established by the U.S. Department ofTransportation. 
Delta is building a global network which combines Delta 
international services and alliance partner services to link Europe, 
Asia, Africa and Latin America with the Company's strong North 
Alliances also complement Delta's efforts to extend its reach 
in the fast-growing regions of Latin America and Asia. During fiscal 
1997, Delta established routes into South America with service 
from Atlanta and Cincinnati to Sao Paulo and Rio de Janeiro, Brazil. 
Delta's recently announced alliance agreement with Transbrasil 
will provide access to other major Brazilian cities, pending gov- 
ernment approvals. Delta extended its code-sharing agreement with 
Aeromexico during fiscal 1997, replacing certain Delta nonstop 
services to Mexico with expanded code-share services from Los 
Angeles, Dallas-Fort Worth and Atlanta. 
American operations. Worldwide alliances allow 
Delta to provide service in strategically impor- 
tant and financially valuable markets which 
would otherwise not be economically viable, or 
where prohibitive regulatory barriers exist. These 
arrangements maximize the use of Delta's assets 
by allocating Delta aircraft to the markets 
which can be served most profitably, while pro- 
viding an expanded scope of service through 
alliance partners. 
Transatlantic Delta continues to pursue additional author- 
ities to serve Japan, but is impeded by the highly 
restrictive aviation agreement between the U.S. 
and Japan. Delta's limited Japan services will be 
supplemented by additional service to Asia 
through code-sharing arrangements with China 
Southern and Korean Air (pending govern- 
ment approvals). 
Operating Results 
12-Monch Moving Toca! 
(In Millions of Dollars) 
300 
150 
0 
Aircraft Fleet 
-150 
-300 
-450 
-600 
93 97 
Delta's Atlantic Excellence alliance with 
partners Swissair, Austrian Airlines and Sabena 
received antitrust immunity from the U.S. 
Department of Transportation in fiscal 1996. 
Antitrust immunity allows the four carriers to 
provide seamless service to customers worldwide 
by synchronizing flight schedules, offering joint 
marketing programs, coordinating pricing and 
integrating frequent flyer programs. This far- 
reaching, highly integrated alliance expands 
Delta's presence in key markets in Europe, Africa 
and the Middle East. 
As reported to DOT excluding 
Delta's aircraft fleet is a cornerstone of the 
Company's business. Delta has long main- 
tained one of the youngest and most techno- 
logically advanced fleets in the U.S. airline 
industry. In March 1997, Delta reached an 
understanding with The Boeing Company for 
firm orders, options and rolling options to pur- 
chase certain aircraft. The understanding 
includes 106 firm aircraft orders through fis- 
cal 2007, with an additional 124 options and 
restructuring and other 
non-rernrring charges. 
Delta's strategic alliances with other quality European carri- 
ers further extend the airline's scope of European services. Delta's 
recently announced code-sharing arrangement with Air France will 
provide the Company with increased access to France, the third 
largest transatlantic aviation market. This arrangement is pend- 
ing government approval and the negotiation of a new aviation 
agreement between the two countries. 
12 
414 rolling options through fiscal 2018. 
Options have scheduled delivery slots while rolling options 
replace options and are assigned delivery slots as options exp~re 
or are exercised. The new Boeing understanding also contem- 
plates the termination of existing options, the cancellation of 
Delta's remaining MD-90 orders and the advancement of certain 
of Delta's existing orders. The understanding is subject to certain 
conditions, including the negotiation of mutually acceptable 
DELTA AIR LINES 
 AIRCRAFT FLEET AT JUNE 30, 1997 
Type of Average Age 
Aircraft (Years) Owned Leased 
B-727-200 20.3 115 14 
B-737-200 12.6 53 
B-737-300 11.3 13 
B-757-200 8.5 50 41 
B-767-200 14.1 15 
B-767-300 8.1 2 24 
B-767-300ER 4.6 20 7 
L-1011-1 19.6 24 
L-1011-200 19.0 1 
L-1011-250 14.7 6 
L-1011-500 16.4 17 
MD-11 3.7 7 7 
MD-88 7.0 63 57 
MD-90 1.6 16 
Total 11.8 337 216 
AIRCRAFT DELIVERY SCHEDULES 
Aircraft on Firm Order at June 30, 1997 (excludes new Boeing understanding) 
Delivery in Year Ending June 30: 
After 
Orders 1998 1999 2000 2001 2001 
B-757-200 3 
B-767-300 2 
B-767-300ER 9 
MD-11 
MD-90 5 5 3 2 
Total 10 7 6 6 2 
Aircraft on Firm Order Pursuant to New Boeing Understanding 
Delivery in Year Ending June 30: 
After 
Orders* 1998 1999 2000 2001 2001 
B-737-600/700/800 7 63 
B-757-200 5 
B-767-300ER 9 
B-767-400 2 19 
Total 21 2 19 63 
* Subject to definitive purchase agreements. 
Total 
129 
54 
13 
91 
15 
26 
27 
24 
1 
6 
17 
14 
120 
16 
553 
Total 
4 
2 
9 
1 
15 
31 
Total 
70 
5 
10 
21 
106 
13 
definitive purchase agreements with Boeing. See Note 9 of Notes 
to Consolidated Financial Statements. 
In conjunction with the understanding, Delta announced a 
20-year aircraft acquisition plan. This long-range plan supports 
Delta's goals for fleet replacement and rationalization and creates the 
opportunity for disciplined internal growth. Furthermore, it helps 
ensure the Company is ready with the right aircraft at the right 
time and at the right price to build on Delta's market strengths - 
even if the competitive landscape changes in unanticipated ways. 
The Company's understanding with Boeing includes long- 
term price controls and risk sharing and gives Delta flexibility to 
adjust to changing circumstances. Subject to certain conditions, 
the Company will have the flexibility to adjust scheduled aircraft 
deliveries as well as to substitute between aircraft models and air- 
craft types. Delta's long-term plan is to simplify its fleet by reduc- 
ing aircraft family types from six to three, while replacing older 
aircraft types with newer Boeing 767 and 737 aircraft over several 
years. The increased efficiencies are expected to result in signifi- 
cant long-term cost savings in areas such as maintenance, spare 
parts inventories, scheduling and training. 
Structured to focus on shareholder value, the plan is intended 
to maintain Delta's ability to pay for the aircraft with internally 
generated funds, while enabling the Company to continue to make 
progress toward achieving financial goals for operating margin, 
return on investment and a return to investment grade status. 
The majority of the aircraft under firm order in Delta's fleet 
plan will be used to replace older aircraft, primarily the L-1011 
and B-727 aircraft. J:ts previously anq.ounced, the Company plans 
to remove all L-1011 aircraft from transatlantic service by the end 
of fiscal 1998 and retire all L-1011 aircraft from the fleet within 
the next several years. The L-1011 aircraft will be replaced pri- 
marily with Boeing 767 aircraft. The B-727 aircraft eventually 
will be retired and replaced primarily with new generation Boeing 
737 aircraft. 
1 99 7 ANNUAL REPORT 
 OPERATIONAL 
(continued) 
REVIEW 
In addition to new aircraft deliveries in fiscal 1997, Delta 
announced its intent to acquire six B-767-300ER aircraft from 
another carrier. The Company took delivery of five of the air- 
craft during fiscal 1997, and the remaining aircraft was deliv- 
ered during early fiscal 1998. Including these deliveries, Delta 
accepted delivery of 21 aircraft during fiscal 1997, comprising 
five B-757-200 aircraft, ten B-767-300ER aircraft, four MD-90 
aircraft and two MD-11 aircraft. 
This improvement compares to the Company's seventh place 
ranking for the same period in 1996. 
Investing in Delta's People 
A business works best when employee and shareholder interests 
are aligned. During fiscal 1997, several initiatives were imple- 
mented to link personnel objectives more closely with the goals 
of shareholders. For the fiscal year, Delta people earned a record 
With fleet refinement actions taken dur- 
ing the fiscal year and the recently announced 
long-term fleet plan, Delta continues to make 
progress toward its goals of improved .opera- 
tional flexibility, management of capital 
spending and simplification of the Com- 
pany's aircraft fleet. 
Capital Expenditures 
(In Millions of Dollars) 
profit-sharing payment of $145 million based 
on the Company's financial performance. 
Investments in Delta's Product 
A key component of Delta's Balanced Strategy 
is targeted investment throughout the Com- 
pany to ensure the consistent delivery of high- 
quality customer service. Fiscal 1997 investments 
included matching staffing levels to increased 
passenger volumes, making compensation more 
competitive, improving information technol- 
ogy and enhancing Delta's service and product. 88 97 
2,500 
2,000 
1,500 
1,000 
500 
0 
In addition, in fiscal 1997 Delta imple- 
mented two broad-based stock option plans 
for Delta employees providing for the issuance 
in three equal annual installments of non- 
qualified stock options to purchase a total of 
24.7 million shares of Common Stock. These 
plans help provide employees with a sense of 
shared purpose and ownership in the Company. 
Realigning Staff 
I Flight Equipment 
Including Leased Aircraft 
Transforming Information Technology 
Delta launched a companywide Information 
Technology (IT) Transformation process during 
fiscal 1997 to enable Delta's future technology 
to support its business goals. The initiative will 
centralize information and reengineer technol- 
ogy and decision-making processes around four 
application portfolios: customer, operations, 
revenue and business support. The goal is to 
Delta increased staffing and improved processes 
to provide a consistently high level of service. 
I Ground Property and 
Equipment 
Approximately 1,000 flight attendants, 700 airport customer 
service agents and 500 reservation agents were added during the 
year to manage a 10% increase in passenger volume, as measured 
by revenue passenger miles. U.S. Department ofTransportation 
data available for January through June 1997 reflects that 
Delta's passenger complaints per 100,000 passengers boarded 
were the third lowest among all major U.S. carriers. 
14 
simplify the technological infrastructure, 
improve efficiency and deliver state-of-the-art solutions for 
Delta's business needs. An IT board will oversee implementation 
of this strategy, coordinating among Delta IT personnel, 
TransQuest (Delta's wholly owned technology subsidiary), 
WORLDSPAN (a computer reservations system partnership), 
and the Company's business, operating and staff units. 
DELTA A I R L I NE 
 Positioning the New Delta 
As Delta enters the most dynamic period in its history, the Com- 
pany will stay ahead of global market trends with new approaches 
to positioning services and products for aviation consumers. 
Delta has created a new look for its aircraft - a contemporary 
design that retains the symbols of Delta's tradition and heritage. 
The colors are strong, and the design is clean. The paint scheme 
is not the only change planned for Delta's aircraft. The new look 
extends to aircraft interiors with new fabric colors throughout. 
Changes will be phased in over the next three years as aircraft are 
scheduled for normal repainting and maintenance procedures. 
Business class comfort is increasingly a purchase-decision 
driver for transatlantic passengers. Delta has enhanced its busi- 
ness class product co provide passengers a comfortable and busi- 
ness-friendly environment. Increased leg room, greater recline, 
on-board power for laptop computers, an improved entertain- 
ment system and unsurpassed food and wine selections are among 
the investments to enhance Delta's competitive strength in the 
North Atlantic. 
Delta is reaching more passengers than ever through the 
Internet. The Delea Web Site, SkyLinks (www.delca-air.com), 
provides yet another way for customers to work with Delea. Options 
for customers include instant enrollment in Delta's SkyMiles fre- 
quent flyer program, electronic ticketing via SkyLinks, the abil- 
ity to obtain frequent flyer account updates and real-time flight 
schedules, fares and availability. The Company expects continued 
strong growth of chis distribution channel. 
This past March, Delea established a new advertising approach 
chat will emphasize integrated global business communications. The 
first of Delta's new advertising campaigns was launched chis spring, 
highlighting the Company's redesigned transatlantic business class. 
Ronald W Allen Retirement 
Effective July 31, 1997, Ronald W Allen retired as 
Chairman of the Board, President and Chief Executive 
Officer of the Company. The Company acknowledges his 
many contributions during his ten-year tenure as Chairman 
and Chief Executive Officer and during his 34 years with 
Delea Air Lines. 
15 
1 99 7 A NN UAL R E P O R T 
Delta Express 
On October 1, 1996, Delta launched Delta 
Express, a low-fare, leisure-oriented operation 
which provides travelers from the Northeast 
and Midwest with increased travel options to 
Orlando and four other Florida cities. In less 
than six months of operations, Delta Express 
boarded its millionth passenger. 
Delta Express offers the benefits of low 
advance purchase and walkup fares while still 
retaining high-quality service: assigned seat 
selection, nonstop flights, and participation in 
the SkyMiles frequent flyer program. The 25 
dedicated B-737-2OO aircraft are maintained 
and serviced by Delta mechanics, and flown by 
Delta pilots with Delta in-flight personnel pro- 
viding cabin service to customers. 
Effective October 1, 1997, Delta Express 
will offer 126 daily nonstop flights to 16 cities 
(Islip, New York and Raleigh-Durham, North 
Carolina will be added effective October 1). 
For added convenience, Delta 
Express fares are published 
on the Internet in real time. 
Delta Express cities served 
as of October I, 1997 
 16 
DE L TA A I R L I N E S 
Northeast 
Delta's position in the Northeast was 
enhanced this year by the inauguration of 
hourly services between Atlanta and 
Washington-National, expanded service 
from Delta's European gateway at New 
York-Kennedy and the superior performance 
of the Delta Shuttle. 
DELTA'S GLOBAL REACH: 
NORTH AMERICA 
In the North American air travel market, 
Delta sees potential for growth by build- 
ing on its key competitive strength: an 
integrated network of geographically bal- 
anced hubs. Hub operations in Atlanta, 
Cincinnati, Salt Lake City, Dallas-Fort 
Worth and New York-Kennedy Inter- 
national Airport offer customers the most 
efficient connections across an extensive 
route system, and are a major contribut- 
ing factor to Delta's leadership position 
as the largest U.S. airline as measured by 
passengers enplaned. 
As of August 15, 1997, Delea offers 
611 daily Bights to 117 destinations from 
Atlanta, the world's largest aviation hub. 
Delta's expanded services support 
Atlanta's emergence as a preeminent 
global air transportation center. In June 
1997, Delta set a record in commercial 
aviation history in Atlanta. More cus- 
tomers were boarded on Delta Bights - 
over 2.3 million passengers - than have 
ever been boarded by any airline at a 
single airport in any one month. 
Specialized segments of the aviation 
market are also a priority at Delea. Business 
travelers within the Northeast corridor 
are served by the Delea Shuttle. The Delea 
Shuttle achieved boarding and on-time 
records during fiscal 1997, and achieved 
record financial performance. The highly- 
competi tive, leisure-oriented travel mar- 
ket to Florida is served by Delta's low-fare 
operation, Delta Express. Delta Express 
completed its first nine months of oper- 
ations with a strong 71 % load factor. 
 DELTA'S GLOBAL REACH: TODAY AND TOMORROW 
Served by Delta 
 Served by Worldwide Partners 
 Served by Delta and Worldwide Partners 
North American cities represent international gateway cities. 
North Atlantic 
Delta enhanced transatlantic service to 
Europe from hubs at New York-Kennedy and 
Atlanta and redeployed assets from the 
former Frankfurt hub to increase domestic 
feed traffic to New York-Kennedy. These 
actions fortified Delta's position as the lead- 
ing carrier in the world's largest interna- 
tional aviation market, the U.S. to Europe. 
18 
Latin America 
New routes to Brazil, an expanded code- 
sharing arrangement with Aeromexico and 
a new code-sharing arrangement with 
Transbrasil will allow Delta to penetrate the 
market of over 13 million passengers trav- 
eling between the U.S. and Latin America 
each year. 
DFlTA AIR LIN E 
Asia/ Pacific 
Asian and transpacific service will be enhanced 
through an expanded code-sharing arrange- 
ment with Korean Air, pending government 
approval. Delta has also filed an application 
to code-share with China Southern. If approved, 
these arrangements will provide Delta with 
expanded access to Seoul and other interior 
points in Asia . 
DELTA'S GLOBAL REACH: 
TODAY AND TOMORROW 
Delea is the number one airline in the 
world's two largest aviation markets, 
North America and the North Atlantic. 
During fiscal 1997, Delea continued co 
build on these market strengths and 
extend its reach to the fast-growing Asian 
and Latin American markets. 
Fiscal 1997 strategic actions (see 
page 11) improved the airline's transat- 
lantic performance and strengthened 
Delta's leadership position. The Atlantic 
Excellence alliance (with Swissair, Austrian 
Airlines and Sabena) provides greater 
European access for Delea customers and, 
coupled with partnerships with other qual- 
ity airlines, provides Delea with the most 
comprehensive network of alliances in 
the world. 
Atlanta's geographic location and 
strong A.ow traffic provide an ideal gateway 
for Delea to serve Latin America_ Delta's 
new Brazilian services (initiated June 1997) 
and planned service to Caracas, Venezuela 
and Santiago, Chile (pending government 
approvals) will provide the foundation for 
Delta's entry into the region. 
Delta's services co Japan were strong 
performers during fiscal 1997. Delta con- 
tinues co promote liberalization of restric- 
tive aviation agreement between che 
U.S. and Japan to allow fair opportuni- 
ties for U.S. carriers co expand Japanese 
services. Delta's Japan routes will be sup- 
plemented by code-share arrangements 
with Asian carriers, including hina 
Southern and Korean Air (pending gov- 
ernment approvals). 
 Board of Directors 
EDWIN L. ARTZT 
Chairman of the Executive 
Committee of the Board of 
Directors, The Procter & Gamble 
Company; Retired Chairman of 
the Board and Chief Executive 
Officer, The Procter & Gamble 
Company, Cincinnati, Ohio 
HENRY A. BIEDENHARN, III 
Retired Chairman of the Board, 
President and Chief Executive 
Officer, Ouachita Coca-Cola 
Bottling Company, Inc., 
Monroe, Louisiana 
JAMESL. BROADHEAD 
Chairman of the Board and 
Chief Executive Officer, 
FPL Group, Inc.; 
Chairman of the Board and 
Chief Executive Officer, 
Florida Power 
& Light Company, 
Juno Beach, Florida 
EDWARD H. BUDD 
Retired Chairman of the Board 
and Chief Executive Officer, 
The Travelers Corporation, 
Hartford, Connecticut 
GEORGE D. BUSBEE 
Of counsel to the law firm of 
King & Spalding, Atlanta, Georgi.a; 
former Governor of Georgia 
Officers 
LEO F. MULLIN 
President and 
Chief Executive Officer 
MAURICE W WORTH 
Chief Operating Officer 
HARRY C. ALGER 
Executive Vice President - 
Operations 
ROBERT W COGGIN 
Executive Vice President - 
Marketing 
ROBERT G. ADAMS 
Senior Vice President - Personnel 
VINCENT F. CAMINITI 
Senior Vice President - 
Sales and International 
WE. DOLL 
Senior Vice President - Cargo 
VICKI B. EscARRA 
Senior Vice President - 
Airport Customer Service 
ROBERT S. HARKEY 
Senior Vice President - General 
Counsel and Secretary 
R. EUGENE CARTLEDGE 
Chairman of the Board, Savannah 
Foods & Industries, Inc., 
Savannah, Georgia; 
Retired Chairman of the Board 
and Chief Executive Officer, 
Union Camp Corporation, 
Wayne, New jersey 
MARY JOHNSTON EVANS 
Director of various corporations 
GERALD GRINSTEIN 
Non-Executive Chairman of the 
Board, Delta Air Lines, Inc.; 
Retired Chairman, Burlington 
Northern Santa Fe Corporation; 
Retired Chairman and Chief 
Executive Officer, Burlington 
Northern Inc., Fort Worth, Texas; 
former Chief Executive Officer, 
Western Air Lines, Inc. 
JESSE HILL, JR. 
Retired Chairman of the Board, 
Atlanta Life Insurance Company, 
Atlanta, Georgi.a 
LEO F. MULLIN 
President and Chief Executive 
Officer, Delta Air Lines, Inc.; 
Former Vice Chairman, Unicom 
Corporation and Commonwealth 
Edison Company; former President 
and Chief Operating Officer, 
First Chicago Corporation, 
Chicago, Illinois 
PAUL G. MATSEN 
Senior Vice President - 
Corporate Planning and 
Information Technologies 
JENNY R. POOLE 
Senior Vice President - 
In-Flight Service 
THOMAS J. ROECK, JR. 
Senior Vice President - Finance 
and Chief Financial Officer 
THOMAS J. SLOCUM 
Senior Vice President - 
Corporate Communications 
RAYVALEIKA 
Senior Vice President - 
Technical Operations 
D. ScorrYOHE 
Senior Vice President - 
Government Affairs 
MALCOLM B. ARMSTRONG 
Vice President - Corporate Safety 
and Compliance 
W E. "SKIP" BARNETTE 
Vice President - Delta Express 
PETER D. SUTHERLAND 
Chairman and Managi,ng Director, 
Goldman Sachs International, 
London, England, and a General 
Partner of The Goldman Sachs 
Group, L.P. and Goldman, Sachs 
& Co., New York, New York; 
Non-Executive Chairman, The 
British Petroleum Company pie. 
ANDREW J. YOUNG 
Co-Chairman and Senior 
Partner, Goodworks International, 
Inc., Atlanta, Georgia; former 
Mayor of Atlanta 
Audit Committee 
JESSE HILL, JR., Chairman 
HENRY A. BIEDENHARN, III 
JAMESL.BROADHEAD 
MARY JOHNSTON EVANS 
PETER D. SUTHERLAND 
Benefit Funds 
Investment Committee 
EDWARD H. BUDD, Chairman 
EDWIN L. ARTZT 
HENRY A. BIEDENHARN, III 
JESSE HILL, JR. 
ANDREW J. YOUNG 
HAROLD L. BEVIS 
Vice President - Public Affairs 
JOHN W BOATRIGHT 
Vice President - Properties 
and Facilities 
GAYLE M. BOCK 
Vice President - 
Consumer Marketing 
W MARTIN BRAHAM 
Vice President - 
Delta Staffing Services Business 
Unit Development 
RICHARD E. COLBY 
Vice President - Flight Operations 
HIRAM A. Cox 
Controller 
MARK A. P. DRUSCH 
Vice President - 
Marketing Development 
STEPHAN J. EGLI 
Vice President - 
Atlantic/Pacific Business Unit 
20 
DELTA AIR LINES 
Corporate 
Governance Committee 
MARY JOHNSTON EVANS, 
Chairman 
JAMESL. BROADHEAD 
GERALD GRINSTEIN 
ANDREW J. YOUNG 
Executive Committee 
MARY JOHNSTON EVANS, 
Chairman 
EDWARD H. BUDD 
R. EUGENE CARTLEDGE 
GERALD GRINSTEIN 
JESSE HILL, JR. 
LEO F. MULLIN 
Finance Committee 
R. EUGENE CARTLEDGE, 
Chairman 
EDWIN L. ARTZT 
EDWARD H. BUDD 
GEORGE D. BUSBEE 
GERALD GRINSTEIN 
Personnel and 
Compensation Committee 
GERALD GRINSTEIN, Chairman 
JAMESL. BROADHEAD 
R. EUGENE CARTLEDGE 
MARY JOHNSTON EVANS 
MICHAELS. ELLENBURG 
Vice President - 
Maintenance: Aircraft 
TERRY M. ERSKINE 
Vice President - Personnel Relations 
LEE A. MACENZAK 
Vice President - Reservation Sales 
and Distribution Planning 
HAROLD G. McDONALD 
Vice President - Maintenance: 
Engine and Component 
LEON A. PIPER 
Vice President - Personnel Benefits 
EDWARD H. W EST 
Vice President - Financial 
Planning and Analysis 
MICHAEL M. YOUNG 
Vt'ce President - Community Affairs 
DEAN C. ARVIDSON 
Assistant Secretary 
SUSAN T. HUDSON 
Assistant Secretary 
LESLIE P. KLEMPERER 
Assistant Secretary 
 Management's Discussion and Analysis of Financial Condition and Results of Operations 
D ELTA AIR LINES, INC. 
Results of Operations - 
Fiscal 1997 Compared With Fiscal 1996 
For fiscal 1997, Delta recorded net income of $854 million 
($11.30 primary and $11.01 fully diluted income per com- 
mon share) and operating income of $1.5 billion. In fiscal 
1996, Delta recorded net income of $156 million ($1.42 
primary and fully diluted income per common share), and 
operating income of $463 million. 
Financial Results Summary 
(In Millions, Except Share Amounts) 1997 1996 Change 
Operating Revenues $13,590 $12,455 + 9% 
Operating Expenses 12,060 11,992 + 1 
Operating Income 1,530 463 * 
O ther Expense, Net 115 187 -39 
Income Before Income Taxes 1,415 276 * 
Income Taxes Provided, Net 561 120 * 
Net Income 854 156 * 
Preferred Srock Dividends 9 82 -89 
Net Income Available to 
Common Shareholders $ 845 $ 74 * 
Primary Income Per 
Common Share: $ 11.30 $ 1.42 * 
Fully Diluted Income 
Per Common Share: $ 11.01 
, 
$ 1.42 * 
Number of Shares Used to 
Compute Income Per 
Common Share: 
Primary 74,786,517 52,101 ,152 NIA 
Fully Diluted 77,087,619 52,101,152 NIA 
* Exceeds I 00% 
Fiscal 1997 results include pretax restructuring and other 
non-recurring charges totaling $52 million ($32 million 
after-tax or $0.42 primary and $0.41 fully diluted income 
per common share) related to the realignment of the Com- 
pany's transatlantic and European operations. Fiscal 1996 
results include pretax restructuring and other non-recurring 
charges totaling $829 million ($506 million after-tax or $9.71 
per common share) related to the write-down of Delta's L-1011 
fleet and the continuation of the Company's Leadership 7.5 
cost reduction program. See Note 16 of Notes to Consoli- 
dated Financial Statements. 
Excluding the restructuring and other non-recurring 
charges in fiscal 1997 and 1996, net income for fiscal 1997 
totaled $886 million ($11.72 primary and $11.42 fully 
diluted income per common share) and operating income 
was $1 .6 billion, compared to net income of $662 million 
 ( $11.13 primary and $8. 49 fully diluted income per common 
share) and operating income of $1 .3 billion in fiscal 1996. 
Operating Revenue Detail 
(In Millions) 1997 1996 Change 
Passenger $12,505 $11,616 + 8% 
Cargo 554 521 + 6 
Other, Net 531 318 +67 
Total $13,590 $12,455 + 9% 
Operating revenues for fiscal 1997 were $13.6 billion, 
up 9% from $12.5 billion in fiscal 1996. Passenger revenue 
increased 8%, reflecting a 10% increase in revenue passenger 
miles, partially offset by a 2 % decline in passenger mile yield. 
Domestic load factor increased four points to 70%, as domes- 
tic revenue passenger miles and domestic capacity rose 13% 
and 6%, respectively. The increase in domestic passenger 
traffic is due to the Company's realignment of its domestic 
route system on December 1, 1995, which increased the 
Company's operations at its Atlanta and Cincinnati hubs; 
improved asset utilization; reduced operations by a low-cost, 
low-fare competitor; and favorable economic conditions. 
Domestic passenger mile yield decreased 3%, reflecting the 
Company's use of more competitive pricing strategies; the 
continued presence of low-cost, low-fare carriers in domes- 
tic markets served by Delta; and the March }, 1997 reim- 
position of the U.S. transportation excise tax. International 
load factor increased three points to 76%, as international 
revenue passenger miles increased 3%, while operating 
capacity decreased 1 %. The increase in international traffic 
is primarily due to improved asset utilization and favorable 
economic conditions, while the decline in international 
capacity is mainly due to the cancellation of service on cer- 
tain international routes. The international passenger mile 
yield decreased 2%, due to the Company's use of more 
competitive pricing strategies. 
Cargo revenues in fiscal 1997 increased 6% to $554 mil- 
lion. Cargo ton miles increased 12%, while the cargo ton 
mile yield declined 5%, primarily due to the Company's uti- 
lization of more competitive pricing strategies and an increase 
in the average stage length related to freight shipments. 
All other revenues were up 67% to $531 million, mainly 
due to the expansion of joint marketing programs associ- 
ated with the Company's SkyMiles frequent flyer progr~rri 
and improved results from code-share arrangements. 
21 
1 99 7 ANNUAL RE P O R T 
 Management's Discussion and Analysis of Financial Condition and Results of Operations continued 
DELTA AIR LINES, INC. 
Revenue-Related Statistics 
1997 1996 Change 
Revenue Passengers 
Enplaned (Thousands) 101,147 91,341 + 11 % 
Revenue Passenger 
Miles (Millions) 97,758 88,673 + 10% 
Passenger Load Factor 71.4% 67.8% +3.6 pts. 
Passenger Mile Yield 12.79 13. l0<t - 2% 
Cargo Ton Miles (Millions) 1,532 1,368 + 12% 
Cargo Ton Mile Yield 36.14 38.08 - 5% 
Operating Revenue Per 
Available Seat Mile 9.93<t 9.53<t + 4% 
Operating expenses in fiscal 1997 totaled $12.1 billion, 
up 1 % from $12.0 billion in fiscal 1996. Operating capac- 
ity increased 5% to 136.8 billion available seat miles, and 
operating cost per available seat mile decreased 4% to 8.81 . 
Excluding restructuring and other non-recurring charges 
in fiscal 1997 and 1996, operating expenses were up 8%, and 
operating cost per available seat mile increased 3%. The 
increase in operating expenses is primarily due to higher 
salaries and related costs, aircraft fuel expense and certain 
traffic-related costs. 
Operating Expense Detail 
(In Millions) 1997 1996 Change 
Salaries and Related Costs $ 4,444 $ 4,206 + 6% 
Aircraft Fuel 1,723 1,464 +18 
Passenger Commissions 1,016 1,042 - 2 
Contracted Services 751 704 + 7 
Depreciation and Amortization 710 634 +12 
Other Selling Expenses 677 594 +14 
Aircraft Rent 547 555 - 1 
Aircraft Maintenance Materials 
and Outside Repairs 434 376 +15 
Passenger Service 389 368 + 6 
Facilities and Other Rent 386 379 + 2 
Landing Fees 256 248 + 3 
Restructuring and Other 
Non-Recurring Charges 52 829 * 
Other Operating 675 593 +14 
Total $12,060 $11,992 + 1% 
* Exceeds 100% 
Salaries and related costs increased 6%, primarily due to 
a 5% increase in full-time equivalent employees to handle 
higher passenger traffic and improve customer service, as well 
as higher costs associated with certain employee compensa- 
tion plans. Aircraft fuel expense increased 18%, as the aver- 
age fuel price per gallon rose 13% to 66.28, and fuel gallons 
22 
consumed increased 4%. Passenger commissions expense 
decreased 2%, reflecting lower expenses for certain travel 
agent incentive programs which were partially offset by higher 
commission costs associated with increased passenger traffic. 
Contracted services expense rose 7%, the result of increased 
outsourcing of certain airport functions and higher informa- 
tion technology costs. Depreciation and amortization expense 
increased 12%, due to the acquisition of 12 new aircraft and 
18 used aircraft, including the purchase of nine B-727-200 
aircraft which the Company had previously been operating 
under operating leases, additional ground equipment acqui- 
sitions and the amortization of software development costs. 
Other selling expenses increased 14%, due to higher booking 
fee payments to computer reservation system providers related 
to higher passenger traffic, higher credit card processing charges 
and increased advertising costs. Aircraft maintenance mate- 
rials and outside repairs expense increased 15%, reflecting 
higher usage of airframe and engine materials related to 
increased scheduled maintenance visits and non-recurring 
credits received from certain engine and brake manufactur- 
ers in fiscal 1996. Passenger service expense increased 6% 
due to increased passenger traffic. Other operating expenses 
increased 14%, due to higher insurance expense, higher fre- 
quent flyer expense related to the expansion of the Company's 
joint marketing programs, increased usage of miscellaneous 
supplies and higher fuel taxes resulting from the October 1, 
1995 expiration of the exemption from the 4.3 cents per gal- 
lon federal tax on commercial aviation jet fuel used in domes- 
tic operations, partially offset by increased services provided 
to outside parties. 
Operating Statistics 
1997 1996 Change 
Available Seat Miles (Millions) 136,821 130,751 + 5% 
Available Ton Miles (Millions) 18,984 18,084 + 5% 
Fuel Gallons 
Consumed (Millions) 2,599 2,500 + 4% 
Average Fuel Price Per Gallon 66.28<t 58.53 + 13% 
Breakeven Passenger Load Factor: 
Including Restructuring and 
Other Non-Recurring Charges 62.7% 65.1 % -2.4 pts. 
Excluding Restructuring and 
Other Non-Recurring Charges 62.4% 60.3% +2.1 pts. 
Operating Cost Per 
Available Seat Mile: 
Including Restructuring and 
Other Non-Recurring Charges 8.81<t 9.17 - 4% 
Excluding Restructuring and 
Other Non-Recurring Charges 8.78<t 8.54<t + 3% 
DELTA AIR LINE S 
 Nonoperating expense for fiscal 1997 totaled $115 mil- 
lion, compared to $187 million in fiscal 1996. Interest expense 
decreased 23%, due to a lower average level of debt outstand- 
ing. Interest capitalized on funds advanced for the purchase of 
flight equipment and construction of facilities increased 24%, 
primarily resulting from a higher average balance of outstand- 
ing advance payments for equipment. Interest income declined 
29% to $61 million, due to a lower average level of short-term 
investments and a slight decline in interest rates during fiscal 
1997. Miscellaneous expense, net decreased 93% to $2 mil- 
lion due to increased income from associated companies and 
reduced voluntary debt retirement and foreign exchange losses, 
partially offset by Delta's $20 million payment to settle cer- 
tain class action antitrust lawsuits filed by travel agents. 
Results of Operations - 
Fiscal 1996 Compared With Fiscal 1995 
For fiscal 1996, Delta recorded net income of $156 mil- 
lion ($1.42 primary and fully diluted income per common 
share) and operating income of $463 million. In fiscal 1995, 
Delta recorded net income of $408 million ($6.32 primary 
and $5.43 fully diluted income per common share) and oper- 
ating income of $661 million. 
Fiscal 1996 results include pretax restructuring and other 
non-recurring charges totaling $829 million ($506 million 
after-tax or $9.71 per common share) as discussed above. 
See Note 16 of Notes to Consolidated Financial Statements. 
Fiscal 1995 results include a one-time $114 million after-tax 
benefit ($2.25 primary and $1.42 fully diluted benefit per 
common share) related to the adoption of Statement of Finan- 
cial Accounting Standards No. 112, "Employers' Accounting 
for Postemployment Benefits" (SFAS 112). See Note 10 of 
Notes to Consolidated Financial Statements. 
Excluding the restructuring and other non-recurring 
charges in fiscal 1996 and the cumulative effect of the adop- 
tion of SFAS 112 in fiscal 1995, net income for fiscal 1996 
totaled $662 million ($11.13 primary and $8.49 fully 
diluted income per common share) and operating income 
was $1.3 billion, compared to net income of $294 million 
($4.07 primary and $4.01 fully diluted income per common 
share) and operating income of $661 million in fiscal 1995. 
The improvement in financial results for fiscal 1996 
(excluding restructuring and other non-recurring charges) as 
compared to fiscal 1995 primarily reflects cost reductions in 
most operating expense categories under the Company's 
Leadership 7.5 program. These reductions resulted in a $370 
million, or 3%, decline in operating expenses, excluding 
restructuring and other non-recurring charges in fiscal 1996. 
Operating revenues for fiscal 1996 were $12.5 billion, 
up 2% from $12.2 billion in fiscal 1995. Passenger revenue 
increased $297 million, or 3%, due to increased traffic stimu- 
lated by competitive pricing actions, the expiration of the 
U.S. transportation excise tax and general improvements in 
economies worldwide. The passenger mile yield was virtu- 
ally unchanged. Domestic load factor increased two points 
to 66%, as domestic revenue passenger miles and domestic 
 capacity rose 6% and 3%, respectively. The domestic pas- 
senger mile yield decreased 1 %, the result of discount fare 
promotions and the continued presence oflow-cost, low-fare 
carriers in markets served by Delta. International load factor 
increased one point to 73%, as international revenue pas- 
senger miles decreased 7% while operating capacity 
decreased 8%. The decline in international capacity is 
mainly due to the cancellation of service on certain interna- 
tional routes. The international passenger mile yield 
increased 2%, primarily due to higher average fare levels in 
certain international markets. 
Cargo revenues in fiscal 1996 decreased 8% to $521 mil- 
lion, the result of a 9% decline in cargo ton miles, partially 
offset by a 1 % increase in the ton mile yield. The decrease in 
cargo ton miles was primarily due to the cancellation of service 
on certain international routes and the resulting decrease in 
the average cargo trip length. All other revenues were up 
3% to $318 million, mainly due to increased revenues from 
joint marketing programs associated with the Company's 
SkyMiles frequent flyer prograrri. 
Operating expenses in fiscal 1996 totaled $12.0 billion, 
up 4% from $11.5 billion in fiscal 1995. Operating capacity 
increased less than 1 % to 130.8 billion available seat miles, 
and operating cost per available seat mile increased 4% to 
9. 17. Excluding restructuring and other Q.on-recurring 
charges in fiscal 1996, operating expenses were down 3%, 
and operating cost per available seat mile decreased 3%. 
Nonoperating expense for fiscal 1996 totaled $187 mil- 
lion, compared to $167 million in fiscal 1995. Interest expense 
decreased 8%, primarily due to a lower average level of out- 
standing debt, partially offset by an increase in interest related 
to the extension and reclassification of 40 B--737-200 aircraft 
leases. Interest capitalized on funds advanced for the purchase 
of flight equipment and construction of facilities decreased 
13%, primarily resulting from a lower average balance of out- 
standing advance payments for equipment. Interest income 
declined 9% to $86 million, primarily due to a lower average 
level of short-term investments and lower interest rate dur- 
ing the year. Miscellaneous expens , net rose to $30 million 
for fiscal 1996 compared to le s than $ 1 million for I 
fiscal 
23 
199 7 ANNUAL REPORT 
 Management's Discussion and Analysis of Financial Condition and Results of Operations continued 
D ELTA AIR LINES, INC. 
1995 primarily due to costs associated with the repurchase 
and retirement of long-term debt and foreign exchange losses. 
Capitalization, Financing and Liquidity - Fiscal Year 1997 
Cash and cash equivalents and short-term investments totaled 
$1.2 billion at June 30, 1997, compared to $1.7 billion at 
June 30, 1996. The principal source of funds during fiscal 
1997 was $2.0 billion of cash from operations. 
During fiscal 1997, Delta invested $1.6 billion in flight 
equipment and $350 million in ground property and 
equipment. The Company also made payments of $196 mil- 
lion on long-term debt and capital lease obligations, includ- 
ing Delta's voluntary repurchase and retirement of $88 
million principal amount oflong-term debt. The Company 
also paid $379 million to repurchase 5,378,700 common 
shares under its Common Stock repurchase program dis- 
cussed in the Other Matters section below. In addition, the 
Company paid cash dividends of $29 million on its Series B 
ESOP Convertible Preferred Stock and $15 million on its 
Common Stock. The Company may repurchase additional 
long-term debt and Common Stock from time to time. 
As ofJune 30, 1997, the Company had negative working 
capital of $1.2 billion, compared to negative working capital 
of $356 million at June 30, 1996. A negative working capital 
position is normal for Delta and does not indicate a lack of 
liquidity. The Company expects to meet its current obligations 
as they become due through available cash, short-term invest- 
ments and internally generated funds, supplemented as nec- 
essary by debt financing and proceeds from sale and leaseback 
transactions. At.August 15, 1997, the Company had $1.25 bil- 
lion of credit available under its 1997 Bank Credit Agreement, 
subject to compliance with certain conditions. See Note 7 
of Notes to Consolidated Financial Statements. 
Long-term debt and capital lease obligations, includ- 
ing current maturities, totaled $2.1 billion at June 30, 1997, 
compared to $2.3 billion at June 30, 1996. Shareholders' 
equity was $3.0 billion at June 30, 1997, compared to 
$2.5 billion at June 30, 1996. The Company's debt-to- 
equity position, including current maturities, was 41 % debt 
and 59% equity at June 30, 1997, compared to 47% debt 
and 53% equity at June 30, 1996. 
At August 15, 1997, there was outstanding $290 mil- 
lion principal amount of the Delta Family-Care Savings 
Plan's Series C Guaranteed Serial ESOP Notes (Series C 
ESOP Notes), which are guaranteed by Delta. The Series C 
ESOP Notes currently have the benefit of a credit enhance- 
ment in the form of a letter of credit in the amount of 
$450 million under Delta's credit agreement with a group 
24 
of banks. Delta is required to purchase the Series C ESOP 
Notes in certain circumstances. See Note 7 of Notes to 
Consolidated Financial Statements. 
Fiscal Year 1996 
In fiscal 1996, the principal sources of funds were $1.4 bil- 
lion of cash from operations, $35 million from the issuance 
of Common Stock, and $26 million from the sale of flight 
equipment. During fiscal 1996, Delta invested $639 mil- 
lion in flight equipment and $297 million in ground prop- 
erty and equipment. The Company also made payments of 
$440 million on long-term debt and capital lease obliga- 
tions, including Delta's voluntary repurchase and retire- 
ment of $224 million principal amount oflong-term debt. 
The Company paid cash dividends of $80 million on its 
Series C Convertible Preferred Stock, $30 million on its 
Series B ESO P Convertible Preferred Stock, and $10 million 
on its Common Stock. In addition, Delta paid $66 million 
to repurchase 821,300 common shares under its Common 
Stock repurchase program. 
Fiscal Year 1995 
In fiscal 199 5, the principal sources of funds were $1.1 billion 
of cash from operations; $139 million from the repayment to 
Delta of certain debtor-in-possession financing (including 
$24 million recorded in cash from operations representing 
accrued interest, net of the settlement of certain other claims); 
and $137 million from the sale of flight equipment. During 
fiscal 1995, Delta invested $458 million in flight equipment 
and $168 million in ground property and equipment. The 
Company also made payments of $572 million on long-term 
debt and capital lease obligations, including Delta's voluntary 
repurchase and retirement of $534 million principal amount 
oflong-term debt. In addition, the Company paid cash div- 
idends of $80 million on its Series C Convertible Preferred 
Stock, $30 million on its Series B ESOP Convertible Pre- 
ferred Stock, and $10 million on its Common Stock. 
Commitments 
Future expenditures for aircraft, engines and engine hush.- 
kits on firm order as ofJune 30, 1997 are estimated to be 
$1.6 billion. 
In March 1997, Delta and The Boeing Company (Boeing) 
reached an understanding which provides for Delta placing 
orders to purchase, and obtaining options and rolling options 
to purchase, certain aircraft. This understanding, which would 
also accelerate the delivery dates for certain of Delta's existing 
orders, terminate all of Delta's existing options and cancel 
DELTA A IR LINES 
 Delta's remaining MD-90 orders, is subject to certain con- 
ditions, including the negotiation of mutually acceptable 
definitive purchase agreements between Delta and Boeing. 
Future expenditures for aircraft, engines and engine hush- 
kits on firm order as ofJune 30, 1997 (as modified by the 
accelerated delivery dates for, and the cancellation of, cer- 
tain of these orders as provided for under Delta's under- 
standing with Boeing), and the aircraft orders provided for 
under Delta's understanding with Boeing, are estimated to 
be $5.9 billion. 
The Company expects to finance its commitments using 
available cash, short-term investments and internally gener- 
ated funds, supplemented as necessary by debt financings 
and proceeds from sale and leaseback transactions. The 
Company also has certain commitments related to its code- 
sharing arrangements. See Notes 8 and 9 of Notes to Con- 
solidated Financial Statements for additional information 
on the Company's commitments. 
Market Risks Associated With Financial Instruments 
The Company's results of operations are significantly impacted 
by the price of jet fuel. Based on the Company's jet fuel con- 
sumption for fiscal 1997, a one-cent change in the average 
annual price per gallon of jet fuel will impact Delta's air- 
craft fuel expense by approximately $26 million. The fol- 
lowing table shows Delta's jet fuel consumption and costs 
for fiscal 1997, 1996 and 1995. 
Gallons Aircraft Fuel 
Consumed Expense Average Price 
Year (In Millions) (In Millions) Per Gallon 
I 1997 2,599 $1,723 66.28 
1996 2,500 1,464 58.53 
1995 2,533 1,370 54.09 
During fiscal 1996, Delta initiated a fuel hedging pro- 
gram under which the Company may enter into certain con- 
tracts with counterparties, not to exceed one year in duration, 
to manage the Company's exposure to jet fuel price volatility. 
Gains and losses resulting from fuel hedging transactions 
are recognized as a component of fuel expense when the _ 
underlying fuel being hedged is used. Gains resulting from 
the fuel hedging program for fiscal 1997 and 1996 were 
immaterial to Delta's total aircraft fuel expense. See Note 4 
of Notes to Consolidated Financial Statements. 
Delta's equity investments in Singapore Airlines and 
Swissair are considered "available for sale" for accounting 
purposes, and any unrealized gain or loss is deferred as a 
component of shareholders' equity. See Note 2 of Notes to 
Consolidated Financial Statements. The following table 
summarizes the cost basis and fair value of these invest- 
ments at June 30, 1997, together with the high, low and 
average fair values (in millions) of each investment based on 
valuations performed at each month end during the past 
three fiscal years. 
Fiscal 1995 Through 1997 
Historical Fair Value at Fair Value Data 
Investee Cost Basis June 30, 1997 High Low Average 
Singapore $181 $315 $373 $282 $333 
Swissair 85 117 117 58 82 
Total $266 $432 
Other Matters 
Change in Management 
Effective July 31, 1997, Ronald W Allen retired as the Com- 
pany's Chairman of the Board, President and Chief Executive 
Officer, and resigned from the Board of Directors. 
Effective August 14, 1997, the Board of Directors (Board) 
elected Leo F. Mullin as the Company's President and Chief 
Executive Officer and a member of the Board. Mr. Mullin 
comes to Delta from Unicom Corporation and Common- 
wealth Edison Company, where he most recently served as 
Vice Chairman. The Board also elected Gerald Grinstein, a 
current member of the Board and former Chairman of 
Burlington Northern Santa Fe CorporatiQn and Western 
Air Lines, Inc., as Non-Executive Chairman of the Board; 
Maurice W. Worth, a Delta veteran of 36 years, as Chief 
Operating Officer; and Mary Johnston Evans, who had been 
serving as Non-Executive Acting Chairman of the Board 
since Mr. Allen's resignation, as Chairman of the Executive 
Committee of the Board. 
Deferred Tax Assets 
At June 30, 1997, Delta had net cumulative deferred tax assets 
of $516 million, which consisted of $2.133 billion of deferred 
tax assets, offset by $1.617 billion of deferred tax liabilities. 
Included in the deferred tax assets are, all?-ong other items, 
$7 41 million related to obligations for postretirement bene- 
fits and $216 million related to alternative minimum tax 
(AMT) credit carryforwards. The AMT credit carryforwards 
do not expire. 
Management believes that a significant portion of the 
deferred tax assets will be realized through reversals of existing 
taxable _ 
temporary differences with similar reversal patterns. 
To realize the benefits of the remaining deferred ta-XJassets, 
25 
199 7 ANNUAL REP RT 
 Management 's Discussion and Analysis of Financial Condition and Results of Operations continued 
DELTA Am LINES, INC. 
excluding AMT credits, Delta needs to generate approxi- 
mately $800 million in future taxable income. 
Following is a summary of Delta's pretax book income 
and taxable income for the last three fiscal years, prior to net 
operating loss carrybacks: 
(In Millions) 
Pretax Book Income 
Taxable Income 
1997 
$1,415 
$1,246 
1996 
$276 
$635 
1995 
$494 
$282 
Delta's ability to generate sufficient future taxable income 
to fully utilize its existing deferred tax assets is dependent upon 
various factors, many of which are beyond management's con- 
trol. Accordingly, there can be no assurance that Delta will meet 
its expectations of future taxable income. However, based on 
Delta's earnings history, expectations of future taxable income, 
the extended period over which postretirement benefits will 
be recognized, and the fact that AMT credits do not expire, 
management believes that it is more likely than not that future 
taxable income will be sufficient to fully utilize the deferred 
tax assets which existed at June 30, 1997. See Note 6 of Notes 
to Consolidated Financial Statements. 
Broad-Based Stock Option Plans 
During fiscal 1997, the Company's shareholders approved 
two plans providing for the issuance of non-qualified stock 
options to substantially all of Delta's non-officer personnel in 
their individual capacity to purchase a total of 24.7 million 
shares of Common Stock. The plans provide for grants in three 
equal annual installments at an exercise price equal to the 
opening price of the Common Stock on the New York Stock 
Exchange on the grant date. On October 30, 1996, Delta 
granted eligible personnel non-qualified stock options to pur- 
chase a total of 8.2 million shares of Common Stock at an 
exercise price of $69 per share. The second and third grant 
dates under the plans are scheduled to occur on October 30, 
1997 and 1998, respectively. For additional information, see 
Note 14 of Notes to Consolidated Financial Statements. 
Stock Repurchase Authorization 
Delta's Board of Directors has authorized the Company to 
repurchase up to 24.7 million shares of Common Stock and 
Common Stock equivalents. Under this authorization, the 
Company may repurchase up to 6.2 million of these shares 
before October 30, 1997 - the date the initial stock option 
grants under the broad-based stock option plans become 
exercisable - and repurchase the remaining shares as Delta 
personnel exercise their stock options under these plans. 
26 
Repurchases are subject to market conditions and may be 
made on the open market or in privately negotiated trans- 
actions. Through June 30, 1997, the Company repurchased 
6.2 million shares of Common Stock for $445 million 
under this authorization. For additional information, see 
Note 15 of Notes to Consolidated Financial Statements. 
Compensation and Benefits Enhancement 
The Company has announced compensation and benefit 
enhancements for its non-contract domestic employees, 
effective July 1, 1997. These changes are expected to increase 
Delta's salary and related expense by approximately $180 mil- 
lion in fiscal 1998. This estimate is a forward-looking state- 
ment that involves a number of risks and uncertainties that 
could cause the actual results to differ materially from the 
projected results. See Forward-Looking Information below. 
Year 2000 Computer Issue 
Many computer systems in use today were designed and devel- 
oped using two digits, rather than four, to specify the year. As 
a result, such systems will recognize the year 2000 as "00'.' This 
could cause many computer applications to fail completely or 
to create erroneous results unless corrective measures are taken. 
The Company utilizes software and related computer 
technologies essential to its operations that will be affected 
by the Year 2000 issue. Delea is studying what actions will 
be necessary to make its computer systems Year 2000 com- 
pliant. The expense associated with these actions cannot 
presently be determined, but could be material. 
Competitive Environment 
Delta expects that low-fare competition is likely to continue 
in domestic and international markets. If price reductions are 
not offset by increases in traffic or changes in the mix of traf- 
fic that improve the passenger mile yield, Delta's operating 
results will be adversely affected. 
Transportation Excise Taxes 
Effective October 1, 1997, the Taxpayer Relief Ace imposes 
certain new taxes and modifies certain existing taxes on the 
aviation industry. Among other things, the new law ( 1) 
imposes a new $1 per passenger per domestic flight segment 
tax, which increases in stages to $3 by January 1, 2002 and is 
indexed to changes in the Consumer Price Index beginning 
January 1, 2003; (2) increases the existing $6 per passenger 
international departure tax to $ 12 per passenger ( which is 
indexed to changes in the Consumer Price Index beginning 
January 1, 1999) for each international arrival and departure; 
DELTA AIR LI NES 
 (3) imposes a new 7. 5 % tax on payments to air carriers for fre- 
quent flyer miles; and ( 4) reduces the passenger ticket tax on 
domestic air transportation from the current 10% to 9%, 
which declines to 7.5% by October 1, 1999. The impact of 
these modifications on Delta cannot presently be determined. 
Environmental and Legal Contingencies 
The Company is a defendant in certain legal actions relating 
to alleged employment discrimination practices, antitrust 
matters, environmental issues and other matters concerning 
the Company's business. Although the ultimate outcome of 
these matters cannot be predicted with certainty and could 
have a material adverse effect on Delta's consolidated finan- 
cial condition, results of operations or liquidity, management 
presently believes that the resolution of these actions is not 
likely to have a material adverse effect on Delta's consoli- 
dated financial condition, results of operations or liquidity. 
For additional information, see Note 12 of Notes to Con- 
solidated Financial Statements. 
Realignment of Delta's Transatlantic 
and European Operations 
During fiscal 1997, the Company implemented a series of 
actions to strengthen its transatlantic and European oper- 
ations. These actions included increasing the Company's 
operations at New York-Kennedy International Airport and 
decreasing its operations at Frankfurt, Germany. The Com- 
pany recorded pretax restructuring and other non-recurring 
charges of $52 million during the March 1997 quarter related 
to this realignment. See Note 16 of Notes to Consolidated 
Financial Statements. Delta expects these actions will improve 
its system operating income by approximately $62 million 
a year. The projected improvement in system operating 
income is a forward-looking statement that involves a num- 
ber of risks and uncertainties that could cause the actual 
results to differ materially from the projected results. See 
Forward-Looking Information below. 
Forward-Looking Information 
Delta and its representatives may make forward-looking state- 
ments about the Company and its business from time to time, 
either orally or in writing. These forward-looking statements 
involve a number of risks and uncertainties that could cause 
the actual results to differ materially from the projected 
results. It is not possible to list all of the many factors and 
events that could cause the actual results to differ materially 
from the projected results. Such factors and events may 
include, but are not limited to, (1) competitive factors such as 
the airline pricing environment and the capacity decisions of 
other airlines; (2) general economic conditions; (3) changes in 
jet fuel prices; (4) fluctuations in foreign currency exchange 
rates; (5) actions by the United States and foreign govern- 
ments; and ( 6) the willingness of customers to travel. 
New Accounting Standards 
Effective July 1, 1996, Delta adopted the disclosure require- 
ments of Statement of Financial Accounting Standards 
No. 123, "Accounting for Srock-Based Compensation" 
(SFAS 123). SFAS 123 encourages, but does not require, 
the use of a fair value based method of accounting for stock- 
based compensation plans under which the fair value of stock 
options is determined on the date of grant and expensed over 
the vesting period. Delta has elected to continue to measure 
compensation expense for stock-based compensation plans 
as prescribed under Accounting Principles Board Opinion 
No. 25, "Accounting for Stock Issued to Employees" (APB 25). 
Companies that continue to apply APB 25 are required to 
include in the notes to financial statements pro forma disclo- 
sure of net income and income per share as if the fair value 
method prescribed under SFAS 123 had been applied. See 
Note 14 of Notes to Consolidated Financial Statements. 
In March 1997, the Financial Accounting Standards 
Board (FASB) issued Statement of Financial Accounting Stan- 
dards No. 128, "Earnings per Share" (SFAS 128), which estab- 
lishes new standards for computing and presenting income 
per share data. SFAS 128, which is effective for financial 
statements issued for periods ending aft-er December 15, 
1997, requires restatement of all prior-period income per 
share data presented. The adoption of SFAS 128 is not 
expected to have a material impact on the Company's income 
per share data. 
In June 1997, the FASB issued State~ent of Financial 
Accounting Standards No. 130; "Reporting Comprehensive 
Income" (SFAS 130), which establishes standards for display- 
ing comprehensive income and its components in a full set 
of general-purpose financial statements. SFAS 130 is effective 
for fiscal years beginning after December 15, 1997. 
Also in June 1997, the FASB issued Statement of Finan- 
cial Accounting Standards No. 131, "Disclosures about Seg- 
ments of an Enterprise and Related Information" (SFAS 131). 
SFAS 131 establishes standards for reporting information 
about operating segments in annual financial statements 
and requires reporting selected information about operat- 
ing segments in interim financial reports issued to . 
share- 
holders. SFAS 131 is effective for fiscal years beginning 
afterDecember 15, 1997. 
27 
1 99 7 A NNU AL R E P O R T 
 Consolidated Balance Sheets 
JUNE 30, 1997 AND 1996 
D ELTA AIR LINES, INC. 
Assets 
(In Millions) 
Current Assets: 
Cash and cash equivalents 
Short-term investments 
Accounts receivable, net of allowance for uncollectible accbunts of 
$48 at June 30, 1997 and $44 at June 30, 1996 
Deferred income taxes 
Prepaid expenses and other 
Total current assets 
Property and Equipment: 
Flight equipment 
Less: Accumulated depreciation 
Flight equipment under capital leases 
Less: Accumulated amortization 
Ground property and equipment 
Less: Accumulated depreciation 
Advance payments for equipment 
Total property and equipment 
Other Assets: 
Marketable equity securities 
Deferred income taxes 
Investments in associated companies 
Cost in excess of net assets acquired, net of accumulated amortization of 
$92 at June 30, 1997 and $84 at June 30, 1996 
Leasehold and operating rights, net of accumulated amortization of 
$199 at June 30, 1997 and $183 at June 30, 1996 
Other 
Total other assets 
Total assets 
28 
DELTA A IR LI NES 
1997 1996 
$ 662 $ 1,145 
508 507 
943 968 
413 352 
341 310 
2,867 3,282 
9,619 8,202 
3,510 3,235 
6,109 4,967 
523 515 
176 127 
347 388 
3,032 2,697 
1,758 1,532 
1,274 1,165 
312 275 
8,042 6,795 
432 473 
103 415 
317 266 
257 265 
134 140 
589 590 
1,832 2,149 
$12,741 $12,226 
 Liabilities and Shareholders' Equity 1997 1996 
(In Millions, Except Share Data) 
Current Liabilities: 
Current maturities of long-term debt $ 236 $ 40 
Current obligations under capital leases 62 58 
Accounts payable and miscellaneous accrued liabilities 1,691 1,540 
Air traffic liability 1,418 1,414 
Accrued rent 213 201 
Accrued salaries and vacation pay 463 385 
Total current liabilities 4,083 3,638 
Noncurrent Liabilities: 
Long-term debt 1,475 1,799 
Postretirement benefits 1,839 1,796 
Accrued rent 602 616 
Capital leases 322 376 
Other 406 425 
Total noncurrent liabilities 4,644 5,012 
Deferred Credits: 
Deferred gain on sale and leaseback transactions 746 802 
Manufacturers' and other credits 105 96 
851 898 
Commitments and Contingencies (Notes 7, 8, 9 and 12) 
Employee Stock Ownership Plan Preferred Stock: 
Series B ESOP Convertible Preferred Stock, $1.00 par value, $72.00 stated and 
liquidation value; issued and outstanding 6,668,248 shares at June 30, 1997 
and 6,738,740 shares at June 30, 1996 480 485 
Unearned compensation under employee stock ownership plan (324) (347) 
156 138 
Shareholders' Equity: 
Series C Convertible Preferred Stock, $1.00 par value, $50,000 liquidation 
preference; issued and outstanding 13,978 shares at June 30, 1996 - - 
Common Stock, $3.00 par value; authorized 150,000,000 shares; issued 
83,645,047 shares at June 30, 1997 and 72,265,994 shares at June 30, 1996 251 217 
Additional paid-in capital 2,645 ' 2,627 
Retained earnings (accumulated deficit) 711 (119) 
Net unrealized gain on noncurrent marketable equity securities 101 126 
Treasury stock at cost, 9,949,060 shares at June 30, 1997 and 
4,487,888 shares at June 30, 1996 (701) (311) 
Total shareholders' equity 3,007 2,540 
Total liabilities and shareholders' equity $12,741 $12,226 
The accompanying notes are an integral part of these Consolidated Balance Sheets. 
29 
1 99 7 ANNUAL R E P RT 
 Consolidated Statements of Operations 
FOR THE YEARS ENDED J UNE 30, 1997, 1996 AND 1995 
D ELTA AIR LINES, INC. 
(In Millions, Except Per Share Data) 
Operating Revenues: 
Passenger 
Cargo 
Other, net 
Total operating revenues 
Operating Expenses: 
Salaries and related costs 
Aircraft fuel 
Passenger commissions 
Contracted services 
Depreciation and amortization 
Other selling expenses 
Aircraft rent 
Aircraft maintenance materials and outside repairs 
Passenger service 
Facilities and other rent 
Landing fees 
Restructuring and other non-recurring charges 
Other 
Total operating expenses 
Operating Income 
Other Income (Expense): 
Interest expense 
Interest capitalized 
Interest income 
Miscellaneous expense, net 
Income Before Income Taxes and Cumulative Effect of Accounting Change 
Income Taxes Provided, Net 
Income Before Cumulative Effect of Accounting Change 
Cumulative Effect of Accounting Change, Net of Tax 
Net Income 
Preferred Stock Dividends 
Net Income Available To Common Shareholders 
Primary Income Per Common Share: 
Before cumulative effect of accounting change 
Cumulative effect of accounting change 
Fully Diluted Income Per Common Share: 
Before cumulative effect of accounting change 
Cumulative effect of accounting change 
The accompanying notes are an integral part of these consolidated statements. 
30 
D E L T A A IR LI N ES 
1997 
$12,505 
554 
531 
13,590 
4,444 
1,723 
1,016 
751 
710 
677 
547 
434 
389 
386 
256 
52 
675 
12,060 
1,530 
(207) 
33 
61 
(2) 
(115) 
1,415 
(561) 
854 
- 
854 
(9) 
$ 845 
$ 11.30 
- 
$ 11.30 
$ 11.01 
- 
$ 11.01 
1996 1995 
$11,616 $11,319 
521 565 
318 310 
- 
12,455 12,194 
4,206 4,354 
1,464 1,370 
1,042 1,195 
704 556 
634 622 
594 618 
555 671 
376 430 
368 443 
379 436 
248 266 
829 - 
593 572 
11,992 11,533 
463 661 
(269) (292) 
26 30 
86 95 
(30) - 
(187) (167) 
276 494 
(120) (200) 
156 294 
- 114 
156 408 
(82) (88) 
$ 74 $ 320 
$ 1.42 $ 4.07 
- 2.25 
$ 1.42 $ 6.32' 
$ 1.42 $ 4.01 
- 1.42 
- - 
$ 1.42 $ 5.43 
 Consolidated Statements of Cash Flows 
FOR THE YEARS ENDED J UNE 30, 1997, 1996 AND 1995 
D ELTA A.IR LINES, INC. 
(In M illions) 
Cash Flows From Operating Activities: 
Net income 
Adjustments to reconcile net income to cash provided by operating activities: 
Cumulative effect of accounting change 
Restructuring and other non-recurring charges 
Depreciation and amortization 
Deferred income taxes 
Rental expense less than rent payments 
Pension, postretirement and postemployment expense in excess 
of (less than) payments 
Changes in certain current assets and liabilities: 
Decrease (increase) in accounts receivable 
Decrease (increase) in prepaid expenses and other current assets 
Increase (decrease) in air traffic liability 
Increase (decrease) in other payables and accrued expenses 
Other, net 
Net cash provided by operating activities 
Cash Flows From Investing Activities: 
Property and equipment additions: 
Flight equipment, including advance payments 
Ground property and equipment 
Decrease (increase) in short-term investments, net 
Proceeds from sale of flight equipment 
Debtor-in-possession loan repayment 
Net cash used in investing activities 
Cash Flows From Financing Activities: 
Payments on long-term debt and capital lease obligations 
Cash dividends 
Issuance of Common Stock 
Repurchase of Common Stock 
Net cash used in financing activities 
Net Decrease In Cash and Cash Equivalents 
Cash and cash equivalents at beginning of fiscal year 
Cash and cash equivalents at end of fiscal year 
The accompanying notes are an integral part of these consolidated statements. 
31 
1 99 7 ANNUAL REPORT 
$ 
$ 
1997 1996 1995 
854 $ 156 $ 408 
- - (114) 
52 829 - 
710 634 622 
240 (57) 96 
(58) (32) (9) 
92 (67) - 
25 (213) 131 
(31) (47) 28 
4 271 (104) 
186 (91) (20) 
(35) 8 76 
2,039 1,391 1,114 
(1,598) (639) (458) 
(350) (297) (168) 
(1) 22 (121) 
8 26 137 
- - 115 
(1,941) (888) (495) 
(196) (440) (572) 
(44) (120) (120) 
38 35- 4 
(379) (66) - 
(581) (591) (688) 
(483) (88) (69) 
1,145 l,_ 
233 1,302 
662 $1,145 , $1,233 
 Consolidated Statements of Shareholders' Equity 
FOR THE YEARS ENDED JUNE 30, 1997, 1996 AND 1995 
D ELTA AIR LINES, INC. 
Common 
(In Millions, Except Share Data) Stock 
Balance at June 30, 1994 $163 
Fiscal Year 1995: 
Net income 
Dividends on Series C Convertible Preferred Stock 
Dividends on Common Stock ($0.20 per share) 
Dividends on Series B ESOP Convertible 
Preferred Stock allocated shares 
Issuance of 67,612 shares of Common Stock under 
dividend reinvestment and stock purchase plan, 
stock options and Series C Preferred Stock 
conversions ($56.13 per share) 1 
Transfer of 295,126 net shares of Common Stock 
from treasury under ESOP and stock incentive 
plan ($67.75 per share) 
Net unrealized gain on marketable equity securities 
Balance at June 30, 1995 164 
Fiscal Year 1996: 
Net income 
Dividends on Series C Convertible Preferred Stock 
Dividends on Common Stock ($0.20 per share) 
Dividends on Series B ESOP Convertible 
Preferred Stock allocated shares 
Issuance of 719,562 shares of Common Stock under 
dividend reinvestment and stock purchase plan 
and stock options ($58.15 per share) 2 
Issuance of 6,861,377 shares of Common Stock on 
conversions of Series C Preferred Stock ($64.37 per share) 21 
Issuance of 10,147,952 shares of Common Stock on 
conversions of 3.23% Convertible 
Subordinated Notes ($61.17 per share) 30 
Transfer of 176,794 net shares of Common Stock 
from treasury under ESOP and stock incentive 
plan ($67.77 per share) 
Repurchase of 821,300 common shares ($80.00 per share) 
Net unrealized gain on marketable equity securities and other 
Balance at June 30, 1996 217 
Fiscal Year 1997: 
Net income 
Dividends on Common Stock ($0.20 per share) 
Dividends on Series B ESOP Convertible 
Preferred Stock allocated shares 
Issuance of 748,492 shares of Common Stock under 
dividend reinvestment and stock purchase plan 
and stock options ($65.22 per share) 2 
Issuance of 10,629,465 shares of Common Stock on 
conversions of Series C Preferred Stock ($64.38 per share) 32 
Repurchase of 5,378,700 common shares ($70.53 per share) 
Net unrealized loss on marketable equity securities and other 
Balance at June 30, 1997 $251 
Additional 
Paid-In 
Capital 
$2,013 
3 
2,016 
40 
(21) 
592 
2,627 
47 
(32) 
3 
$2,645 
The accompanying notes are an integral part of these consolidated statements. 
32 
DELTA A[R L I NE S 
Unrealized 
Retained Gain (Loss) 
Earnings on Equity Treasury 
(Deficit) Securities Stock Total 
$(490) $ 53 $(272) $1,467 
408 408 
(80) .(80) 
(10) (10) 
(8) (8) 
4 
(4) 20 16 
30 30 
(184) 83 (252) 1,827 
156 156 
(74) (74) 
(10) (10) 
(8) (8) 
(5) 37 
622 
1 12 13 
(66) (66) 
43 43 
(119) 126 (311) 2,540 
854 854 
(15) (15) 
(9) (9) 
(7) 42 
(379) (379) 
(25) (4) (26) 
$ 711 $101 $(701) $3,007 
 Notes to Consolidated Financial Statements 
JUNE 30, 1997, 1996 AND 1995 
D ELTA AIR LINES, INC. 
1. Summary of Significant Accounting Policies 
Nature of Business - Delta Air Lines, Inc. (a Delaware cor- 
poration) is a major air carrier providing scheduled air trans- 
portation for passengers, freight and mail over a network 
of routes throughout the United States and abroad. At 
August 15, 1997, Delta served 149 domestic cities in 42 
states, the District of Columbia, Puerto Rico and the U.S. 
Virgin Islands, as well as 41 cities in 25 foreign countries. 
Basis of Presentation - The consolidated financial state- 
ments include the accounts of Delta Air Lines, Inc. and its 
wholly owned subsidiaries (Delta or the Company). All 
significant intercompany accounts and transactions have 
been eliminated. Certain prior year amounts have been 
reclassified to conform with the current year financial 
statement presentation. 
Use of Estimates - The Company follows generally accepted 
accounting principles ( GAAP). The preparation of finan- 
cial statements in conformity with GAAP requires man- 
agement to make estimates and assumptions that affect the 
amounts reported in the consolidated financial statements 
and accompanying notes. Actual results could differ from 
those estimates. 
Investments in Associated Companies - The Company's invest- 
ments in the following companies are accounted for under the 
equity method: WORLDSPAN, LP. (WORLDSPAN), a 
computer reservations system partnership; ASA Holdings, Inc. 
(ASA), the parent of Atlantic Southeast Airlines, Inc.; Comair 
Holdings, Inc. (Comair), the parent of Comair, Inc.; and 
SkyWest, Inc. (SkyWest), the parent of SkyWest Airlines, Inc. 
Atlantic Southeast Airlines, Inc., Comair, Inc., and SkyWest 
Airlines, Inc. are participants in the Delta Connection pro- 
gram. (See Note 3.) 
Accounting Changes - During fiscal 1997, the Company 
adopted the disclosure requirements of Statement of Finan- 
cial Accounting Standards No. 123, ''Accounting for Stock- 
Based Compensation" (SFAS 123). (See Note 14.) During 
fiscal 1996, the Company adopted Statement of Financial 
Accounting Standards No. 121, ''Accounting for the Impair- 
ment of Long-Lived Assets and for Long-Lived Assets to Be 
Disposed Of" (SFAS 121). (See Note 16.) During fiscal 1995, 
the Company adopted Statement of Financial Accounting 
Standards No. 112, "Employers' Accounting for Postemploy- 
ment Benefits" (SFAS 112). (See Note 10.) 
Cash and Cash Equivalents-Investments with an original 
maturity of three months or less are classified as cash and 
cash equivalents. These investments are stated at cost, which 
approximates fair value. 
Short-Term Investments - Cash in excess of operating 
requirements is invested in short-term, highly liquid invest- 
ments. These investments are classified as available-for-sale 
under Statement of Financial Accounting Standards No. 115, 
''Accounting for Certain Investments in Debt and Equity Secu- 
rities" (SFAS 115), and are stated at fair value. (See Note 2.) 
Cost in Excess of Net Assets Acquired - The cost in excess 
of net assets acquired (goodwill), which is being amortized 
over 40 years, is related to the Company's acquisition of 
Western Air Lines, Inc. in December 1986. The Company 
periodically reviews the value assigned to goodwill to determine 
whether there exists any impairment, as defined by SFAS 121. 
Management believes that goodwiU is appropriately valued. 
Leasehold and Operating Rights - Costs assigned to the 
purchase of leasehold rights and landing slots are amor- 
tized over the lives of the respective leases at the associated 
airports. Purchased international route authorities are 
amortized over the lives of the authorities as determined by 
their expiration dates. Permanent route authorities with no 
stated expiration dates are amortized over 40 years. The 
Company periodically reviews the value assigned to lease- 
hold rights, landing slots and route authorities to deter- 
mine if there exists any impairment, as defined by SFAS 
121. Management believes that leasehold rights, landing 
slots and route authorities are appropriately valued. 
Deferred Gains on Sale and Leaseback Transactions - Gains 
on the sale and leaseback of property and equipment under 
operating leases are deferred and amortized over the lives of 
the respective leases as a reduction in rent expense. Gains on 
the sale and leaseback of property under capital leases are 
credited directly to the carrying value of the related asset. 
33 
1 997 ANNUAL R E PORT 
 N o t es to C o n so I i d ate d Fi n a n c i a I St ate m e n ts continued 
JUNE 30, 1997, 1996 AND 1995 
D ELTA AIR LINES, INC. 
Manufacturers' Credits - In connection with the acquisition 
of certain aircraft and engines, the Company receives cer- 
tain credits. These credits are deferred until the aircraft and 
engines are delivered, at which time the credits are applied 
on a pro rata basis as a reduction of the acquisition cost of 
the related flight equipment. 
Frequent Flyer Program - The Company accrues the esti- 
mated incremental cost of providing free travel awards earned 
under its SkyMiles frequent flyer program when free travel 
award levels are achieved. The accrued incremental cost is 
included in accounts payable and miscellaneous accrued 
liabilities in the Company's Consolidated Balance Sheets. 
The Company also sells mileage credits to participat- 
ing partners in the SkyMiles program such as hotels, car 
rental agencies and credit card companies. The resulting rev- 
enue is recorded as other operating revenue in the Company's 
Consolidated Statements of Operations during the period 
in which the credits are sold. 
Passenger and Cargo Revenues - Passenger ticket sales are 
recorded as air traffic liability in the Company's Consoli- 
dated Balance Sheets. Passenger and cargo revenues are 
recognized when the transportation is provided, reducing 
the air traffic liability. Due to interline agreements through- 
out the industry, certain amounts are recognized in rev- 
enue using estimates regarding the amount of revenue to 
be recognized and the timing of recognition. Actual results 
could differ from those estimates. 
Delta is a party to code-sharing agreements with certain 
foreign airlines. Under these agreements, the Company pur- 
chases seats from and sells seats to these airlines, with each 
airline separately marketing its respective seats. The revenue 
from Delta's sale of code-sharing seats purchased from and 
flown by other airlines is reported in the Company's Con- 
solidated Statements of Operations as other operating rev- 
enue, offset by the cost of acquiring these code-sharing seats 
and other direct costs incurred in operating the code-sharing 
flights. The revenue generated from Delta's sale of code-shar- 
ing seats to other airlines is reported as passenger revenue in 
the Company's Consolidated Statements of Operations. 
Depreciation and Amortization - Flight equipment is 
depreciated on a straight-line basis to residual values (5% 
of cost) over a 20-year period from the dates placed in ser- 
vice ( unless earlier retirement of the aircraft is planned). 
34 
Flight equipment under capital leases is amortized on a 
straight-line basis over the term of the respective leases, 
which range from 4 to 11 years. Ground property and 
equipment are depreciated on a straight-line basis over 
their estimated service lives, which range from 3 to 30 years. 
Due to the Company's decision to accelerate the replacement 
of its L-1011 fleet (see Note 16), the remaining deprecia- 
ble lives of these aircraft have been adjusted. 
Interest Capitalized - Interest attributable to funds used 
to finance the acquisition of new aircraft and construc- 
tion of major ground facilities is capitalized as an addi- 
tional cost of the related asset. Interest is capitalized at 
the Company's weighted average interest rate on long- 
term debt or, where applicable, the interest rate related 
to specific borrowings. Capitalization of interest ceases 
when the property or equipment is placed in service. 
Income Per Share - Primary income per common share is 
computed by dividing net income available to common 
shareholders by the weighted average number of shares of 
Delta Common Stock (Common Stock) and, if dilutive, Com- 
mon Stock equivalents outstanding during the year. Common 
Stock equivalents consist of the shares issuable upon exer- 
cise of outstanding stock options less the number of shares 
deemed to be repurchased under application of the trea- 
sury stock method. The weighted average number of shares 
of Common Stock and dilutive Common Stock equivalents 
outstanding used to compute primary income per com- 
mon share was 74,786,5 17 for fiscal 1997; 52, 101,152 for 
fiscal 1996; and 50,657,613 for fiscal 1995. 
Fully diluted income per common share is computed 
by dividing net income available to common shareholders 
(adjusted for conversion of any Convertible Preferred Stock 
and convertible debt instruments outstanding during the 
year) by the weighted average number of shares of Common 
Stock, Common Stock equivalents outstanding during the 
year (if dilutive) and Common Stock that would be issued 
upon the conversion of any Convertible Preferred Stock and 
convertible debt instruments outstanding during the year. 
The weighted average number of shares of Common Stock 
used to compute fully diluted income per common share was 
77,087,619 for fiscal 1997; 52,101,152 for fiscal 1996; and 
80,118,720 for fiscal 1995. (See Notes 11, 13, 14 and 15.) 
D E LTA A I R LI NES 
 Foreign Currency Translation -Assets and liabilities denomi- 
nated in foreign currencies are translated generally at exchange 
rates in effect at the balance sheet date, except fixed assets which 
are translated at exchange rates in effect when these assets are 
acquired. The resulting foreign exchange gains and losses are 
recognized as a component of miscellaneous income (expense). 
Revenues and expenses of foreign operations are translated at 
average monthly exchange rates prevailing during the year, 
except depreciation and amortization charges are translated at 
the exchange rates in effect when the related assets were acquired. 
Stock-Based Compensation- The Company accounts for its 
stock-based compensation plans in accordance with Account- 
ing Principles Board Opinion No. 25, ''Accounting for Stock 
Issued to Employees" (APB 25). Under APB 25, no compen- 
sation expense is recognized for a stock option grant if the 
exercise price of the stock option at measurement date is equal 
to or greater than the fair market value of the Common Stock 
on the date of grant. (See Note 14.) 
Advertising Costs - Advertising costs are expensed when 
incurred and are included as a component of other selling 
expense. Advertising expense for fiscal 1997, 1996 and 1995 
was $121 million, $109 million and $178 million, respectively. 
2. Investments in Debt and Equity Securities 
The Company's investments in Singapore Airlines Limited 
(Singapore Airlines) and Swissair, Swiss Air Transport 
Company Ltd. (Swissair), which are accounted for under 
the cost method, are classified as available-for-sale under 
SFAS 115, and are recorded at aggregate market value. At 
June 30, 1997 and 1996, the gross unrealized gain on the 
Company's investment in Singapore Airlines was $134 mil- 
lion and $190 million, respectively, and the gross unrealized 
gain on the Company's investment in Swissair was $32 mil- 
lion and $16 million, respectively. The $101 million and 
$126 million unrealized gains, net of the related deferred tax 
provision, on these combined investments at June 30, 1997 
and 1996, respectively, are reflected in shareholder/ equity. 
Delta's right to vote, to transfer or to acquire additional 
shares of the stock of Singapore Airlines and Swissair is sub- 
ject to certain restrictions. 
Delta's other investments in available-for-sale securities 
are recorded as short-term investments in the Company's 
Consolidated Balance Sheets. At June 30, 1997, these 
investments consisted of government agency debt (23%) 
and corporate debt securities (77%) with average stated 
maturities of 4 months and 6 months, respectively. 
During fiscal 1997, 1996 and 1995, the proceeds from 
sales of available-for-sale securities were $610 million, 
$626 million and $926 million, respectively, which resulted 
in a realized gain of less than $1 million for fiscal 1997, and 
realized losses of $1 million and $4 million for fiscal 1996 
and 1995, respectively. The unrealized losses on these 
investments were less than $1 million and were reflected in 
shareholders' equity at June 30, 1997 and 1996, respec- 
tively. Interest income was $27 million, $33 million and 
$31 million from these investments for fiscal 1997, 1996 
and 1995, respectively. 
3. Investments in Associated Companies 
The Company's percentage ownership and quoted market 
value (where applicable) of its investment in associated com- 
panies at June 30, 1997, and equity earnings (losses) for fiscal 
1997, 1996 and 1995, were as follows: 
Percentage 
Investment Ownership 
WORLDSPAN 38% 
ASA 27 
Comair 21 
SkyWest 15 
Quoted 
Market 
Value 
(In Millions) 
NIA 
$229 
259 
24 
Equity Earnings 
(Losses) 
1997 1996 1995 
(In Millions) 
$23 $ (5) $ (4) 
15 13 12 
16 13 6 
2 1 2 
-- 
WORLDSPAN provides certain computer reserva- 
tions services to Delta. Delta provides certain communica- 
tions, information processing and administrat~ve services 
to WORLDSPAN. 
On June 26, 1996, Delta and NCR Corporation (for- 
merly AT&T Global Information Solutions Company) 
announced an agreement to discontinue the TransQuest 
partnership. Effective July 1, 1996, the partnership ended and 
TransQuest, Inc. was formed as a wholly owned subsidiary 
of Delta. TransQuest, Inc. provides information technology 
. services to Delta. Delta's equity losses related to its 50% 
ownership in the TransQuest partnership were $8 million for 
fiscal 1996 and $3 million for fiscal 1995. 
35 
1 997 ANNUAL R EPO RT 
 N o t es to C o n s o I i d ate d Fi n a n c i a I St ate m e n ts continued 
JUNE 30, 1997, 1996 AND 1995 
D ELTA AIR LINES, INC. 
4. Financial Instruments and Off-Balance-Sheet Risk: 
Balance Sheet Financial Instruments: Fair Values - The 
carrying amounts reported in the Company's Consolidated 
Balance Sheets for cash and cash equivalents and accounts 
receivable, net approximate fair values at June 30, 1997 and 
1996. Short-term investments classified as available-for-sale 
are recorded at fair value in accordance with SF.AS 115. 
(See Note 2.) 
The fair values and carrying values of long-term debt, 
including current maturities, at June 30, 1997 and 1996, 
were as follows: 
(In Billions) 
Fair value 
Carrying value 
1997 
$1.8 
1.7 
1996 
$2.0 
1.8 
These values are based on quoted market prices, where 
available, or discounted cash flow analyses. T he carrying 
values of all other financial instruments approximate their 
fair values. 
Off-Balance-Sheet Financial Instruments: Risks and Fair 
Values - Fuel Price Risk Management - Under its fuel 
hedging program, the Company may enter into certain con- 
tracts with counterparties, not to exceed one year in duration, 
to manage the Company's exposure to jet fuel price volatility. 
Gains and losses resulting from fuel hedging transactions are 
recognized as a component of fuel expense when the under- 
lying fuel being hedged is used. Any premiums paid to enter 
into hedging contracts are recorded as a prepaid expense and 
amortized to fuel expense over the respective contract periods. 
At June 30, 1997, Delta had contracted for approximately 
441 million gallons of its projected fiscal 1998 fuel require- 
ments. At June 30, 1997, the fair value of option contracts 
used for purchases of jet fuel at fixed average prices was imma- 
terial. The Company is exposed to fuel hedging transaction 
losses in the event of non-performance by counterparties, 
but management does not expect any counterparty to fail 
to meet its obligations. 
Foreign Exchange Risk Management - The Company has 
entered into certain foreign exchange forward contracts, all 
with maturities of less than two months, to manage risks 
associated with foreign currency exchange rate and interest 
rate volatility. The aggregate face amount of such contracts 
was approximately $29 million at June 30, 1997. Gains and 
36 
losses resulting from foreign exchange forward contracts are 
recognized as a component of miscellaneous income (expense), 
offsetting the foreign currency gains and losses resulting from 
translation of the Company's assets and liabilities denomi- 
nated in foreign currencies. 
Credit Risks - To manage credit risk associated with its fuel 
price risk and foreign exchange risk management pro- 
grams, the Company selects counterparties based on their 
credit ratings, limits its exposure to any one counterparty 
under defined guidelines, and monitors the market posi- 
tion of the program and its relative market position with 
each counterparty. 
Financial Guarantees - Certain municipalities and airport 
authorities have issued special facility revenue bonds to build 
or improve airport terminal and maintenance facilities that 
Delta leases under operating leases. Under these lease agree- 
ments, the Company is required to make rental payments 
sufficient to pay principal and interest on the bonds as 
they become due. (See Note 8.) 
Concentration of Credit Risk - Delta's accounts receivable 
are generated primarily from airline ticket and cargo ser- 
vices sales to individuals and various commercial enterprises 
that are economically and geographically dispersed, and the 
accounts receivable are generally short-term in duration. 
Accordingly, Delta does not believe it is subject to any sig- 
nificant concentration of credit risk. 
5. Miscellaneous Expense, Net 
Miscellaneous expense, net for fiscal 1997, 1996 and 1995 
consisted of: 
(In Millions) 1997 1996 1995 
Equity earnings from 
associated companies $ 56 $ 14 $ 13 
Foreign exchange gains (losses) (7) (15) 12 
Losses on repurchase of debt (8) (1 8) (4) 
Travel agency litigation settlement (20) - - 
Ocher (23) (11) (21) 
Total miscellaneous 
expense, net $ (2) $(30) $ - 
DELTA A I R L I NES 
 6. Income Taxes 
Deferred income taxes reflect the net tax effect of temporary 
differences between the carrying amounts of assets and liabil- 
ities for financial reporting purposes and the amounts used 
for income tax purposes. Significant components of the 
Company's deferred tax assets and liabilities as of June 30, 
1997 and 1996 are a result of temporary differences related 
to the items described below: 
(In Millions) 1997 1996. 
Deferred Tax Assets: 
Postretirement benefits $ 741 $ 724 
Alternative minimum tax credit carryforwards 216 354 
Gains on sale and leaseback transactions (net) 302 336 
Other employee benefits 261 232 
Rent expense 212 202 
Spare parts repair expense 122 114 
Tax accruals 56 43 
Frequent flyer expense 48 40 
Accrued compensation expense 67 36 
Other 108 98 
Total Deferred Tax Assets $2,133 $2, 179 
Deferred Tax Liabilities: 
Depreciation and amortization $1,239 $1,083 
Postemployment benefits 80 82 
Marketable equity securities 65 81 
Software development costs 62 58 
Employee Stock Ownership Plan 39 73 
Other 132 35 
Total Deferred Tax Liabilities $1,617 $1,412 
The alternative minimum tax credit carryforwards do 
not expire. 
Based on the Company's earnings history, expectations 
of future taxable income, the extended period over which 
postretirement benefits will be recognized, and the fact that 
AMT credits do not expire, management believes that it is 
more likely than not that future taxable income will be suf- 
ficient to fully utilize the deferred tax assets which existed 
at June 30, 1997. 
Income taxes provided in fiscal 1997, 1996 and 1995 
consisted of: 
(In Millions) 1997 1996 1995 
Current taxes $(321) $(177) $(104) 
Deferred taxes (244) 54 (99) 
Tax benefit of dividends on 
allocated Series B ESOP 
Convertible Preferred Stock 4 3 3 
Income taxes provided $(561) $(120) $(200) 
The income tax provisions generated for fiscal 1997, 
1996 and 1995 differ from amounts which would result 
from applying the federal statutory tax rate to pretax 
income, as follows: 
(In Millions) 1997 1996 1995 
Income before income taxes $1,415 $ 276 $ 494 
Items not deductible for tax purposes: 
Meals and entertainment 36 36 41 
Amortization 9 9 9 
Other, net (14) (8) 3 
Adjusted pretax income 1,446 313 547 
Federal statutory tax rate 35% 35% 35% 
Income tax provision at statutory rate (506) (110) (191) 
State and other income taxes, net 
of federal income tax provision (55) (10) (9) 
Income taxes provided $ (561) $(120) $(200) 
The Company made income tax payments, net of 
income tax refunds, of $336 million in fiscal 1997, $192 
million in fiscal 1996 and $25 million in fiscal 1995. 
37 
1 99 7 ANNUAL R E PORT 
 N o t es to Co n so I i d ate d Fi n a n c i a I St ate m e n ts continued 
JUNE 30, 1997, 1996 AND 1995 
DELTA AIR LINES, INC. 
7  Long-Term Debt 
At June 30, 1997 and 1996, the Company's long-term 
debt (including current maturities) was as follows: 
{In Millions) 
9 
% Notes, unsecured, due January 1, 1998 $ 
1997 1996 
207 $ 220 
Medium-Term Notes, Series A and B, unsecured, interest rates ranging from 
7.55% to 9.15% and with maturities ranging from 1998 to 2007 157 196 
9 
% Notes, unsecured, due May 15, 2000 142 142 
8 
% Notes, unsecured, due March 15, 2002 71 71 
8.10% Series C Guaranteed Serial ESOP Notes, unsecured, payable in installments between 2002 and 2009 290 290 
Development Authority of Fulton County, unsecured loan agreement, repayable $10 million on November 1, 2007 
and $20 million on November 1, 2012. Interest ranges from 6.85% to 6.95% O\;er the life of the loan 30 30 
10% Debentures, unsecured, due May 15, 2010 113 113 
10% 
% Debentures, unsecured, due February 1, 2011 176 176 
9% Debentures, unsecured, due May 15, 2016 102 126 
Development Authority of Clayton County, 7 
0 
io unsecured loan agreement, repayable on January 1, 2020 45 45 
9 
% Debentures, unsecured, due May 15, 2021 
9 
% Debentures, unsecured, due March 15, 2022 
10% 
% Debentures, unsecured, due December 15, 2022 
Other, net 
Total 
Less: Current maturities 
Total long-term debt 
During fiscal 1997 and 1996, respectively, the Com- 
pany voluntarily repurchased and retired $88 million and 
$224 million principal amount of its long-term debt. As a 
result of these transactions, the Company recognized net 
pretax losses of $8 million and $18 million, respectively, 
which are included in miscellaneous expense, net in the 
Company's Consolidated Statements of Operations. 
On May 2, 1997, the Company and a group of banks 
entered into the 1997 Bank Credit Agreement and termi- 
nated the 1995 Bank Credit Agreement. The 1997 Bank 
Credit Agreement provides for unsecured borrowings by 
the Company of up to $1.25 billion on a revolving basis 
until May 1, 2002. Up to $700 million of this facility may 
be used for the issuance of letters of credit. The interest rate 
under this facility is, at the Company's option, the LIBOR 
or the prime rate, in each case plus a margin which is sub- 
ject to adjustment based on certain changes in the credit 
ratings of the Company's long-term senior unsecured debt. 
The Company also has the option to obtain loans through 
a competitive bid procedure. The 1997 Bank Credit Agree- 
ment contains certain negative covenants that restrict the 
Company's ability to grant liens, incur or guarantee debt 
and enter into flight equipment leases. It also provides that if 
38 
251 25 1 
64 116 
66 66 
(3) (3) 
1,71 1 1,839 
236 40 
$1,475 $1,799 
there is a change of control (as defined) of the Company, the 
banks' obligation to extend credit terminates, any amounts 
outstanding become immediately due and payable and the 
Company will immediately deposit cash collateral with the 
banks in an amount equal to all outstanding letters of credit. 
At August 15, 1997, no borrowings or letters of credit were 
outstanding under the 1997 Bank Credit Agreement. 
At June 30, 1997, there were outstanding $290 million 
principal amount of the Delta Family-Care Savings Plan's 
Series C Guaranteed Serial ESOP Notes (Series C ESO P 
Notes), which are guaranteed by Delta. The Series C ESO P 
Notes, which were issued pursuant to certain note purchase 
agreements, are payable in installments between July 1, 2002 
and January 1, 2009. The note purchase agreements require 
Delta to purchase the Series C ESOP Notes at the option 
of the holders thereof (Noteholders) if the credit rating of 
Delta's long-term senior unsecured debt falls below Baa3 by 
Moody's and BBB- by Standard & Poor's (Purchase Event), 
provided that Delta has no obligation to purchase the 
Series C ESOP Notes under the note purchase agreements 
so long as it obtains, within 127 days of a Purchase Event, 
certain credit enhancements (Approved Credit Enhancement) 
that result in the Series C ESOP Notes being rated A3 or 
D E LTA AI R L I NES 
 higher by Moody's and A- or higher by Standard & Poor's 
(Required Ratings). If Delta is required to purchase the 
Series C ESOP Notes because of the occurrence of a Purchase 
Event, such purchase would be made at a price (Purchase 
Price) equal to the outstanding principal amount of the 
Series C ESOP Notes being purchased, together with accrued 
interest and a Make Whole Premium Amount. The Make 
Whole Premium Amount is based on, among other factors, 
the yield to maturity of U.S. Treasury notes having matu- 
rities equal to the remaining average life to maturity of the 
Series C ESOP Notes as of the date Delta purchases the 
Series C ESOP Notes. 
As a result of Moody's rating action on May 11, 1993, 
a Purchase Event occurred, and Delta became obligated to 
purchase on September 15, 1993 any Series C ESOP Notes 
properly tendered to it. Prior to September 1 \ 1993, Delta 
obtained an Approved Credit Enhancement in the form of 
a letter of credit to credit enhance the Series C ESOP Notes. 
This letter of credit was issued in favor of Wilmington 
Trust Company, as trustee (Trustee), under Delta's then exist- 
ing Bank Credit Agreement. Due to the issuance of this letter 
of credit, the Series C ESOP Notes received the Required 
Ratings, and Delta no longer had an obligation to purchase 
the Series C ESOP Notes as a result of the Purchase Event 
that occurred on May 11, 1993. 
On June 6, 1996, the Company entered into a Credit 
Agreement with ABN AMRO Bank, N.V and a group of 
banks (Letter of Credit Facility) which, as amended, pro- 
vides for the issuance ofletters of credit for up to $500 mil- 
lion in stated amount to credit enhance the Series C ESOP 
Notes. The Letter of Credit Facility contains negative covenants 
and a change of control provision that are substantially sim- 
ilar to those contained in the 1997 Bank Credit Agreement. 
In the event of any drawing under the Letter of Credit 
Facility, Delta is required, at its election, (1) to immediately 
repay the amount drawn or (2) to convert its reimbursement 
obligation to a loan for a period not to exceed one year at 
varying rates of interest. On June 6, 1996, Delta obtained a 
letter of credit under the Letter of Credit Facility to replace 
the letter of credit issued under its then existing Bank 
Credit Agreement to credit enhance the Series C ESOP 
Notes. The Letter of Credit Facility expires June 6, 2000. 
At August 15, 1997, the face amount of the letter of 
credit issued under the Letter of Credit Facility was $450 mil- 
lion. It covers the $290 million outstanding principal amount 
of the Series C ESOP Notes, up to $128 million of Make 
Whole Premium Amount and approximately one year of 
interest on the Series C ESOP Notes. 
An Indenture ofTrust, dated August 1, 1993 (Indenture), 
among Delta, the Trustee, and Fidelity Management Trust 
Company, as ESOP trustee, contains certain terms and con- 
ditions relating to any letter of credit used to credit enhance 
the Series C ESOP Notes. The Indenture requires the 
Trustee to draw under the letter of credit to make regularly 
scheduled payments of principal and interest on the Series 
C ESOP Notes. The Indenture also requires the Trustee to 
draw under the letter of credit to purchase the Series C ESOP 
Notes in certain circumstances in which Delta would not 
be required to purchase the Series C ESOP Notes under 
the note purchase agreements. Subject to certain conditions, 
the Indenture requires the Trustee to purchase the Series C 
ESOP Notes at the Purchase Price at the option of the 
Noteholders in the event that (1) the Required Ratings on 
the Series C ESOP Notes are not maintained; (2) the letter 
of credit is not extended 20 days before its scheduled expi- 
ration date; (3) Delta elects to terminate the letter of credit; 
or (4) the Trustee receives notice there has occurred an event 
of default under the credit agreement relating to the letter of 
credit; unless, generally within 10 days of any such event, the 
Series C ESOP Notes receive the Required Ratings due to 
Delta's obtaining a substitute credit enhancement or otherwise. 
The Required Ratings on the Series C ESOP Notes are 
subject to reconsideration at any time, and to annual confir- 
mation, by Moody's and Standard & Poor's. Circumstances 
that might cause either rating agency to lower or fail to con- 
firm its rating include, without limitation, a downgrading 
of the deposits of the letter of credit issuer below A3 by 
Moody's or A- by Standard & Poor's, or a determination that 
the Make Whole Premium Amount covered by the letter 
of credit is insufficient. 
Subject to certain conditions, the Indenture does not 
permit the Trustee to purchase the Series C ESOP Notes at 
the option of the Noteholders if the Series C ESOP Notes 
receive the Required Ratings without the benefit of a credit 
enhancement. The Series C ESOP Notes are not likely to 
receive the Required Ratings absent a credit enhancement 
unless Delta's long-term senior unsecured debt is rated at least 
A3 by Moody's and A- by Standard & Poor's. On August 15, 
1997, Delta's long-term senior unsecured debt was rated Baa3 
by Moody's and BB+ by Standard & Poor's. 
39 
1 99 7 ANNUAL R E P ORT 
 Notes to Conso I idated Fi nanc i a I Statements continued 
JUNE 30, 1997, 1996 AND 1995 
D ELTA AIR LINES, INC. 
At June 30, 1997, the annual scheduled maturities of 
long-term debt during the next five fiscal years were as follows: 
Years Endin une 30 Amount 
(In Millions) 
1998 $236 
1999 67 
2000 142 
2001 
2002 75 
The Company's debt agreements contain certain restric- 
tive covenants, but do not limit the payment of dividends on 
the Company's capital stock. The terms of the Series B ESOP 
Convertible Preferred Stock limit the Company's ability to 
pay cash dividends on the Common Stock in certain circum- 
stances. (See Note 13.) 
Cash payments of interest, including interest on the 
Series C ESOP Notes and net of interest capitalized, totaled 
$171 million in fiscal 1997; $232 million in fiscal 1996; 
and $238 million in fiscal 1995. 
8. Lease Obligations 
The Company leases certain aircraft, airport terminal and 
maintenance facilities, ticket offices and other property and 
equipment. Rent expense is generally recorded on a straight- 
line basis over the lease term. Amounts charged to rental 
expense for operating leases were $0.9 billion in fiscal 1997 
and fiscal 1996 and $1.1 billion in fiscal 1995. 
At June 30, 1997, the Company's minimum rental 
commitments under capital leases and noncancelable oper- 
ating leases with initial or remaining terms of more than 
one year were as follows: 
Years Endin une 30 
1998 
1999 
2000 
2001 
2002 
After 2002 
Total minimum lease payments 
Present value of future minimum 
capital lease payments 
Less: Current obli ations under ca ital leases 
Long-term capital lease obligations 
Capital Operating 
Leases Leases 
(In Millions) 
$101 $ 860 
100 
68 
57 
57 
118 
501 
117 
384 
62 
$322 
860 
840 
830 
850 
9,780 
$14,020 
40 
9. Purchase Commitments 
Future expenditures for aircraft, engines and engine hush- 
kits on firm order as of June 30, 1997 are estimated to be 
$1.6 billion, as follows: 
Years Ending June 30 Amount 
(In Millions) 
1998 $ 790 
1999 320 
2000 230 
2001 200 
2002 60 
After 2002 
Total $1,600 
During the March 1997 quarter, Delta and The Boeing 
Company (Boeing) reached an understanding which pro- 
vides for Delta placing orders to purchase, and obtaining 
options (which have scheduled delivery slots) and rolling 
options (which replace options and are assigned delivery slots 
as options expire or are exercised) to purchase, the follow- 
ing aircraft types: 
Aircraft Type 
B-737-600/700/800 
B-757-200 
B-767-300ER 
B-767-400 
B-777-200 
Orders 
(Scheduled Fiscal 
Years of Delivery) 
70 
( 1999-2007) 
5 
(1999) 
10 
(1998-1999) 
21 
(2000-2001) 
Rolling 
Options Options 
60 280 
20 90 
10 19 
24 25 
10 
The understanding is subject to certain conditions, 
including the negotiation of mutually acceptable definitive 
purchase agreements between Delta and Boeing. The under- 
standing provides, subject to certain conditions, that Boeing 
will be the provider of new aircraft for Delta for 20 years, 
and that Delta may switch orders among these aircraft types 
and defer firm orders. The understanding would also accel-  
erate the delivery dates for certain of Delta's existing orders, 
terminate all of Delta's existing options and cancel Delta's 
remaining MD-90 orders. 
DELTA A IR LINES 
 Future expenditures for aircraft, engines and engine hush- 
kits on firm order as ofJune 30, 1997 (as modified by the accel- 
erated delivery dates for, and cancellation of, certain of these 
orders as provided for under Delta's understanding with 
Boeing), and the aircraft orders provided for under Delta's 
understanding with Boeing, are estimated to be approxi- 
mately $5.9 billion, as follows: 
Years Ending June 30 Amount 
(In Millions) 
1998 $1,179 
1999 1,031 
2000 278 
2001 1,224 
2002 295 
After 2002 1,850 
Total $5,857 
In addition, at August 15, 1997, the Company had 
authorized capital expenditures of approximately $345 mil- 
lion for fiscal 1998 for improvement of airport and office 
facilities, various ground equipment and other assets. 
The Company expects to finance its aircraft, engine and 
engine hushkit commitments, as well as other authorized 
capital expenditures, using available cash, short-term invest- 
ments and internally generated funds, supplemented as 
necessary by debt financings and proceeds from sale and 
leaseback transactions. 
The Company has entered into code-sharing agree- 
ments under which it has agreed to purchase seats at estab- 
lished prices from specific foreign airlines, subject to certain 
conditions. None of these agreements has noncancelable 
terms in excess of one year. 
10. Employee Benefit Plans 
The Company sponsors various pension plans, medical plans 
and disability and survivorship plans for employees who 
meet certain service and other requirements. In addition, 
the Company sponsors the Savings Plan (See Note 11) in 
which employees who meet certain service and other require- 
ments may elect to participate. 
During fiscal 1997, the Company changed the annual 
measurement date for its employee benefit plan assets and lia- 
bilities from June 30 to March 31. This change in measure- 
ment date has been accounted for as a change in accounting 
principle. The change in measurement date had no material 
cumulative effect on employee benefit expense for prior years. 
Defined Benefit Pension Plans - The Company's primary 
retirement plans consist of defined benefit pension plans. The 
Company has reserved the right to modify these plans to the 
extent permitted by the Internal Revenue Code and the 
Employee Retirement Income Security Act of 1974 (ERISA). 
The qualified defined benefit plans are funded, on a current 
basis, to meet the minimum funding requirements ofERISA. 
The weighted average discount rate and rate of increase in 
future compensation levels used in determining the actuarial 
present value of the projected benefit obligation were 7.75% 
and 4.7%, respectively, at March 31, 1997 and June 30, 1996. 
The expected long-term rate of return on assets was 10.0% 
at March 31, 1997 and June 30, 1996. 
The following table sets forth the defined benefit pen- 
sion plans' funded status and amounts recognized for fiscal 
1997 and 1996: 
(In Millions) 1997 1996 
Actuarial present value of benefit obligations: 
Accumulated benefit obligation1 $6,122 $6,134 
Projected benefit obligation $7,517 $7,368 
Plan assets at fair value 7,447 7,170 
Projected benefit obligation in . 
excess of plan assets 70 198 
Unrecognized net gain 326 195 
Unrecognized transition obligation (63) (64) 
Unrecognized prior service cost (29) (31) 
Contributions made between 
April 1, 1997 and June 30, 1997 (18) - 
Accrued pension cost recognized in 
the Consolidated Balance Sheets $ 286 $ 298 
1 Substantially all of the accumulated benefit obligation is vested. 
Plan assets were invested at June 30, 1997, approxi- 
mately as follows: cash equivalents (7%), government and 
corporate bonds and notes (18%), Common Stock and other 
equity-oriented investments (71 %) and real estate and other 
investments (4%). 
41 
1 99 7 ANNUA L RE P ORT 
 N o t es to C o n so I i d ate d Fi n a n c i a I St ate m e n ts continued 
JUNE 30, 1997, 1996 AND 1995 
DELTA AIR LINES, INC. 
Net periodic defined benefit pension cost for fiscal 
1997, 1996 and 1995 included the following components: 
(In Millions) 1997 1996 1995 
Service cost - benefits earned 
during the year $ 188 $ 225 $ 221 
Interest cost on projected 
benefit obligation 564 526 489 
Actual return on plan assets (731) (1,194) (795) 
Nee amortization and deferral 89 612 266 
Nee periodic pension cost $ 110 $ 169 $ 181 
The restructuring charges described in Note 16 include 
an aggregate charge for fiscal 1996 of $298 million for costs 
primarily associated with special termination benefits and 
curtailment losses related to the defined benefit pension 
plans due to workforce reductions.  
Defined Contribution Pension Plans - In addition to the 
Savings Plan described in Note 11, the Company sponsors 
the Delta Pilots Money Purchase Pension Plan (MPPP) to 
which the Company contributes 5% of covered pay for each 
eligible pilot. The MPPP is a continuation of the Delta Pilots 
Target Benefit Plan and is related to the Delta Pilots Retire- 
ment Plan through a floor-offset arrangement whereby the 
defined benefit pension payable to a pilot is subject to reduc- 
tion by the actuarial equivalent of the accumulated account 
balance in the MPPP. The Company's contributions to this 
plan were $49 million and $2 million for fiscal 1997 and 
1996, respectively. 
Postretirement Benefits Other Than Pensions - Delta's med- 
ical plans provide medical and dental benefits to substan- 
tially all retirees and their eligible dependents. Benefits are 
funded from general assets on a current basis, although 
amounts sufficient to pay claims incurred but not yet paid 
are held in trust. Plan benefits are subject to co-payments, 
deductibles and certain other limits described in the plans 
and are reduced once a retiree is eligible for Medicare. The 
Company has reserved the right to modify or terminate 
the medical plans for both current and future retirees. 
42 
Net periodic postretirement benefit cost for fiscal 
1997, 1996 and 1995 included the following components: 
(In Millions) 1997 1996 1995 
Service cost - benefits earned 
during the year $ 25 $ 32 $ 32 
Interest cost on accumulated 
postrecirement benefit obligation 115 118 118 
Amortization of prior service cost (38) (31) (29) 
Amortization of accumulated losses 1 4 4 
- - 
Net periodic postretirement 
benefit cost $103 $123 $125 
The accumulated postretirement benefit obligation 
(APBO) for fiscal 1997 and 1996 consisted of the fol- 
lowing components: 
(In M illions) 1997 1996 
Retirees and dependents $ 936 $ 928 
Fully eligible participants 348 323 
Ocher active participants 281 254 
Total accumulated poscrecirement 
benefit obligation 1,565 1,505 
Unamortized prior service cost 
(from plan changes) 426 464 
Unrecognized net loss (76) (1 12) 
Contributions made between 
April 1, 1997 and June 30, 1997 (14) - 
Accrued poscretirement benefit cost 
in the Consolidated Balance Sheets $1,901 $1,857 
The weighted average discount rate used to estimate the 
APBO was 7.75% at March 31, 1997 and at June 30, 1996. 
The assumed health care cost trend rate used in measuring 
the APBO was 8.0% in fiscal 1997 and fiscal 1996, declin- 
ing gradually to 4.25% by March 31, 2003, and remain- 
ing level thereafter. Increasing the assumed health care cost 
trend rate annually by 1 % for all future years would 
increase the APBO as of March 31, 1997 by approximately 
$142 million, and the net periodic postretirement benefit 
cost by $13 million for fiscal 1997. 
The restructuring charges described in Note 16 include 
aggregate charges for fiscal 1996 of $32 million for costs . 
primarily associated with special termination benefits and 
curtailment losses related to postretirement benefits other 
than pensions due to workforce reductions. 
D E LTA A I R Ll NES 
 Postemployment Benefits - The Company provides certain 
welfare benefits to its former or inactive employees after 
employment but before retirement. Such benefits primarily 
include those related to disability and survivorship plans. The 
Company has reserved the right to modify or terminate these 
plans at any time for all participants. 
Effective July 1, 1994, Delta adopted SPAS 112, which 
requires recognition of the liability for postemployment bene- 
fits during the period of employment. The adoption of SPAS 
112 resulted in a cumulative after-tax transition benefit of $114 
million in fiscal 1995, primarily due to the net overfunded sta- 
tus of the Company's disability and survivorship plans. The 
Company's postemployment benefit expense for fiscal years 
1997, 1996 and 1995 was $71 million, $78 million and $85 
million, respectively. The amount funded in excess of the liabil- 
ity is included in other noncurrent assets in the Company's 
Consolidated Balance Sheets. Future period expenses will vary 
based on actual claims experience and the return on plan assets. 
Gains and losses that occur because actual experience 
differs from that assumed will be amortized over the average 
future service period of employees. Amounts allocable to 
prior service for amendments to retiree and inactive insur- 
ance plans are amortized in a similar manner. 
The Company continues to evaluate ways in which it 
can better manage employee benefits and control costs. Any 
changes in the plan or revisions to assumptions that affect the 
amount of expected future benefits may have a significant 
effect on the amount of the reported obligation and future 
annual expense. 
11. Employee Stock Ownership Plan 
The Company sponsors the Savings Plan, a qualified defined 
contribution pension plan under which eligible Delta per- 
sonnel may contribute a portion of their earnings. The Sav- 
ings Plan includes an employee stock ownership plan 
(ESOP) feature. Subject to certain conditions, the Company 
contributes 50% of a participant's contributions to the Sav- 
ings Plan, up to a maximum employer contribution of2% of 
a participant's earnings. The Company's contributions are 
made quarterly through the allocation of Series B ESOP 
Convertible Preferred Stock, Common Stock or cash, and are 
recorded as salaries and related costs in the Company's Con- 
solidated Statements of Operations. Delta's total con.tribu- 
tions to the Savings Plan were $45 million in fiscal 1997 and 
fiscal 1996, and $47 million in fiscal 1995. 
In connection with the adoption of the ESOP, the Com- 
pany sold 6,944,450 shares of ESOP Preferred Stock to the 
Savings Plan for approximately $500 million. The Company 
has recorded unearned compensation to reflect the value of 
ESOP Preferred Stock sold to the ESOP but not yet allocated 
to participants' accounts. As shares of the ESOP Preferred Stock 
are allocated to participants' accounts, compensation expense 
equal to the fair value of the ESOP Preferred Stock is recorded 
and unearned compensation is reduced. Dividends on unallo- 
cated shares ofESOP Preferred Stock are used by the ESOP 
for debt service on the Series C ESOP Notes and are not con- 
sidered dividends for financial reporting purposes. Dividends 
on allocated shares of ESOP Preferred Stock are credited to 
participants and considered dividends for financial report- 
ing purposes. For purposes of computing primary and fully 
diluted income per common share, allocated shares of ESO P 
Preferred Stock are considered outstanding, but unallocated 
shares of ESOP Preferred Stock are not. 
12. Contingencies 
The Company is a defendant in certain legal actions relat- 
ing to alleged employment discrimination practices, 
antitrust matters, environmental issues and other matters 
concerning the Company's business. Although the ultimate 
outcome of these matters cannot be predicted with certain- 
ty and could have a material adverse effect on Delta's con- 
solidated financial condition, results of operations or 
liquidity, management presently believes that the resolu- 
tion of these actions is not likely to have a material adverse 
effect on Delta's consolidated financial condition, results of 
operations or liquidity. 
Delta's captive insuran:ce subsidiary has agreed to reim- 
burse the primary insurers for losses under the Company's 
aircraft hull and general liability insurance policies (Policies) 
in an amount not to exceed $100 million per occurrence and 
in the aggregate for the Policy year._ 
The obligations of the pri- 
mary insurers to the insureds under the Policies are not limit- 
ed or reduced in any way by this reimbursement obligation. 
The reimbursement obligation of Delta's captive insur- 
ance subsidiary to the primary insurers is supported by letters 
of credit. The letters of credit have an aggregate stated 
amount equal to the maximum reimbursement obligation. 
To the extent the primary insurers make a draw under a letter 
of credit, Delta is required to reimbu'rse the issuer of the letter 
of credit. Delta accrues amounts estimated to be payable for 
probable losses under the reimbursement agreements with 
the primary insurers, as incurred. The methods of making 
such estimates and establishing the resulting accrued liabili- 
ties are periodically reviewed and adjusted as required. 
43 
l 99 7 ANNUA L R EP RT 
 N o t es to C o n so I i d ate d Fi n a n c i a I 5 tat e m e n ts continued 
JUNE 30, 1997, 1996 AND 1995 
D ELTA AIR LINES, INC. 
13. Common and Preferred Stock 
At June 30, 1997, 24,700,000 shares of Common Stock 
were reserved for issuance under the Company's broad- 
based employee stock option plans; 4,383,406 shares of 
Common Stock were reserved for issuance under the 1989 
Stock Incentive Plan; 5,720,023 shares of Common Stock 
were reserved for conversion of the Series B ESOP Con- 
vertible Preferred Stock; and 248,998 shares of Common 
Stock were reserved for issuance under the Non-Employee 
Directors' Stock Plan. In addition, 1,500,000 shares of pre- 
ferred stock have been reserved for issuance under the 
Shareholder Rights Plan. 
On May 15, 1996, the Company gave notice that it 
elected to redeem effective June 15, 1996 its 3.23% 
Convertible Subordinated Notes due June 15, 2003 
(Notes). Substantially all outstanding Notes were then 
converted by the holders thereof into approximately 10 
million shares of Common Stock, and the Company 
redeemed the remaining outstanding Notes. As a result 
of the conversion of substantially all the Notes, long- 
term debt declined by $626 million and shareholders' 
equity increased by approximately the same amount in 
the Company's Consolidated Balance Sheets. This trans- 
action was treated as a noncash transaction in the Com- 
pany's Consolidated Statement of Cash Flows for the 
year ended June 30, 1996. 
On October 24, 1996, Delta's Board of Directors adopted 
a new Shareholder Rights Plan (Rights Plan) to replace the 
rights plan that expired on November 4, 1996. The new 
Rights Plan is designed to enhance the Board's ability to 
protect shareholders against unsolicited attempts to acquire 
Delta that do not offer an adequate price to all shareholders 
or are otherwise not in the best interests of the Company 
and its shareholders. Under the new Rights Plan, each out- 
standing share of Common Stock is accompanied by a pre- 
ferred stock purchase right which entitles the holder to 
purchase from the Company 1/100 of a share of Series D 
Junior Participating Preferred Stock for $300, subject to 
adjustment in certain circumstances (Purchase Price). The 
rights become exercisable only after a person or group acquires 
beneficial ownership of 15% or more of the Common Stock 
or commences a tender or exchange offer that would result 
in such person or group beneficially owning 15% or more 
of the Common Stock. The rights expire on November 4, 
2006, and may be redeemed by Delta for $0.01 per right 
44 
until 10 business days following the announcement that a 
person or group beneficially owns 15% or more of the Com- 
mon Stock. Subject to certain conditions, if a person or group 
becomes the beneficial owner of 15% or more of the Com- 
mon Stock, each right will entitle its holder (other than 
certain acquiring persons) to purchase, for the Purchase Price, 
Common Stock having a market value of twice the Purchase 
Price. In addition, subject to certain conditions, if Delta is 
involved in a merger or certain other business combination 
transactions, or the Company sells or otherwise transfers 
more than 50% of its assets or earning power, each right 
will entitle its holder to purchase, for the Purchase Price, 
Common Stock of the other party having a market value of 
twice the Purchase Price. 
Each share of Series B ESOP Convertible Preferred Stock 
(ESOP Preferred Stock) has a stated value of $72; bears an 
annual cumulative cash dividend of 6%, or $4.32; is con- 
vertible into 0.8578 shares of Common Stock (a conversion 
price of $83.94), subject to adjustment in certain circum- 
stances; has a liquidation preference of $72, plus any accrued 
and unpaid dividends; generally votes together as a single class 
with the Common Stock on matters upon which the Common 
Stock is entitled to vote; and has one vote, subject to adjust- 
ment in certain circumstances. The ESOP Preferred Stock 
is redeemable at Delta's option at specified redemption 
prices payable, at Delta's election, in cash or Common 
Stock. If full cumulative dividends on the ESOP Preferred 
Stock have not been paid when due, Delta may not pay 
cash dividends on the Common Stock. 
14. Stock Options and Awards 
Under its 1989 Stock Incentive Plan and a predecessor plan, 
the Company has granted non-qualified stock options and, 
prior to fiscal 1993, tandem stock appreciation rights (SARs) 
to officers and other key employees. The exercise price for all 
stock options, and the base price upon which the SARs are 
measured, is the fair market value of Common Stock on the 
date of grant. Awards exercised as SARs are payable in a 
combination of cash and Common Stock. The Company 
recognized compensation expense (included in salary and 
related costs) related to SARs in fiscal 1997, 1996 and 1995  
of $3 milli\m, $14 million and $9 million, respectively. Stock 
options awarded will generally be exercisable beginning one 
year, and ending 10 years, after their grant date. 
DELTA A I R L I NES 
 On October 24, 1996, the Company's shareholders 
approved two plans providing for the issuance of non- 
qualified stock options to substantially all of Delta's non-offi- 
cer personnel in their individual capacity to purchase a total 
of 24.7 million shares of Common Stock. One plan is for 
eligible Delta personnel who are not pilots (Nonpilot Plan); 
the other plan covers the Company's pilots (Pilot Plan). 
The Nonpilot and Pilot Plans involve non-qualified 
stock options to purchase 14.7 million and 10 million shares 
of Common Stock, respectively. The plans provide for grants 
in three equal annual installments at an exercise price equal 
to the opening price of the Common Stock on the New York 
Stock Exchange on the grant date. Stock options awarded 
under the plans are generally exercisable beginning one year 
and ending 10 years after their grant dates, and are not 
transferable other than upon the death of the person granted 
the stock options. On October 30, 1996, Delta granted 
eligible personnel non-qualified stock options to purchase 
a total of 8.2 million shares of Common Stock at an exer- 
cise price of $69 per share. The second and third grant dates 
under the Nonpilot and Pilot Plans are scheduled to occur 
on October 30, 1997 and 1998, respectively. 
Transactions involving stock options and SARs during 
fiscal 1997, 1996 and 1995 were as follows: 
Fiscal 1997 Fiscal 1996 Fiscal 1995 
Stock Options Shares 
(000) 
Outstanding at beginning of fiscal year 2,332 
Granted 8,932 
Exercised (1,279) 
Expired - 
Forfeited (84) 
- - - 
Outstanding at end of fiscal year 9,901 
- 
Stock options exercisable at fiscal year end 1,049 
Weighted average grant-date fair value of 
options granted during the fiscal year $ 17 
The following table summarizes ,information about 
stock options outstanding at June 30, 1997: 
Stock Options Outstanding 
Range of Number Weighted 
Exercise Outstanding at Average 
Prices June 30, 1997 Remaining Life 
(000) (Years) 
$52-68 530 7 
$69-82 9,371 9 
The Company accounts for its stock-based compensa- 
tion plans in accordance with APB 25. During fiscal 1996, 
the PinancialAccounting Standards Board issued SPAS 123. 
SPAS 123 encourages, but does not require, the use of a fair 
value based method of accounting for stock-based compen- 
sation plans under which the fair value of stock options is 
Weighted Weighted Weighted 
Average Average Average 
Exercise Exercise Exercise 
Price Shares Price Shares Price 
(000) (000) 
$65 3,386 $63 3,015 $65 
70 644 71 719 52 
67 (1,654) 63 (79) 56 
- - - (258) 67 
75 (44) 65 (11) 66 
- - - - - 
69 2,332 65 3,386 63 
- - 
$63 1,698 $63 2,668 $66 
$ 24 $ 22 
Stock Options Exercisable 
Weighted Number Weighted 
Average Exercisable at Average 
Exercise Price June 30, 1997 Exercise Price 
{000) 
$55 530 $55 
$70 519 $72 
determined on the date of grant and expensed over the vest- 
ing period of the stock options. While the Company has 
elected to continue to apply the provisions of APB 25, 
SPAS 123 requires proforma disclosure of net income and 
income per common share as if the fair value based method 
under SPAS 123 had been adopted. 
45 
1 99 7 A NNUA L RE P ORT 
 N o t es to C o n s o I i d ate d Fi n a n c i a I St ate m e n ts continued 
JUNE 30, 1997, 1996 AND 1995 
DELTA AIR LINES, INC. 
The pro forma net income and income per common 
share amounts below have been derived using the Black- 
Scholes stock option pricing model with the following 
assumptions for each stock option grant during the respec- 
tive fiscal year: 
Assumptions 
Risk-free interest rate 
Expected life of stock option (Years) 
Expected volatility of 
Common Stock 
Expected annual dividends on 
Common Stock 
Net income (In Millions): 
As reported 
Proforma 
Primary income per common share: 
As reported 
Proforma 
Stock Options 
Granted in Fiscal Year 
1997 1996 
6.0% 5.4% 
2.7 5.1 
26.4% 26.5% 
$0.20 $0.20 
Fiscal Year Ended 
June 30, June 30, 
1997 1996 
$ 854 $ 156 
791 152 
$11.30 $1.42 
10.46 1.35 
Fully diluted income per common share: 
As reported $11.01 $1.42 
Proforma 10.18 1.35 
Under SF.AS 123, stock options granted prior to fiscal 
year 1996 are not required to be included as compensation 
in determining pro forma net income. Therefore, the pro 
forma effects on net income and income per common share 
for fiscal 1997 and 1996 may not be representative of the 
proforma effects SF.AS 123 may have in future years. 
15. Stock Repurchase Authorization 
Delta's Board of Directors has authorized the Company to 
repurchase up to 24.7 million shares of Common Stock 
and Common Stock equivalents. Under this authorization, 
the Company may repurchase up to 6.2 million of these 
shares before October 30, 1997 - the date the initial stock 
option grants under the Nonpilot and Pilot Plans become 
exercisable - and repurchase the remaining shares as Delta 
personnel exercise their stock options under those plans. 
Repurchases are subject to market conditions and may be 
made on the open market or in privately negotiated transac- 
tions. Under this authorization, the Company repurchased 
46 
5,378,700 shares of Common Stock for $379 million dur- 
ing fiscal 1997, and 821,300 shares of Common Stock for 
$66 million during fiscal 1996. 
16. Restructuring and Other Non-Recurring Charges 
During fiscal 1997 and 1996, the Company recorded pretax 
restructuring and other non-recurring charges of $52 mil- 
lion and $829 million, respectively. These charges are sum- 
marized in the table below: 
1997 1996 Total 
Leadership 7.5 $ - $104 $104 
Pilot special early retirement program 273 273 
L-1011 fleet early retirement 452 452 
Transatlantic and European Realignment 52 52 
Totals $52 $829 $881 
Fiscal 1996 - The $829 million pretax charge for restruc- 
turing and other non-recurring charges recorded in fiscal 
1996 included a $452 million writedown of Delta's L-1011 
fleet and related assets to their fair market value in accor- 
dance with SF.AS 121. The charge also included $273 mil- 
lion related to the special early retirement program for 
approximately 500 pilots all of whom retired during fiscal 
1997 and $65 million (net of reversals of $36 million related 
to the Company's $526 million restructuring charge recorded 
in fiscal 1994) for previously announced non-pilot work- 
force reductions. Payments associated with curtailment losses 
and special termination benefits will be paid as required for 
funding appropriate pension and other postretirement 
plans in future years. 
The remaining $39 million of the $829 million charge 
for fiscal 1996 included $29 million (net of reversals of 
$14 million related to the Company's $526 million restruc- 
turing charge recorded in fiscal 1994) for lease termination 
costs related to abandoned facilities and $10 million non- 
cash costs related to discontinued routes. 
Fiscal 1997 - During the March 1997 quarter, Delta recorded 
pretax restructuring and other non-recurring charges total- 
ing $52 million related to the realignment of its transat- 
lantic and European operations. Of this amount, $45 million 
relates to personnel severance costs (for approximately 680 
employees); $5 million relates to the reorganization of the 
Frankfurt operation; and $2 million relates to abandoned 
facilities in Frankfurt and other European locations. 
DELTA AIR LI NES 
 The following table reflects the activity in the restructuring accrual balances (excluding accruals for pension and 
other postretirement curtailment losses and special termination benefits discussed above) during fiscal 1997. All reduc- 
tions in reserves represent payments of liabilities. 
Balance at Balance at 
(Amounts in Millions) June 30, 1996 Additions Reductions June 30, 1997 
- 
Leadership 7.5 
Workforce Reductions $ 7 $ - $ 3 $ 4 
Abandoned Facilities 41 - 3 38 
Pilot special early retirement program 21 - 21 - 
Transatlantic and European Realignment 
Workforce Reductions - 45 6 39 
Abandoned Facilities - 2 - 2 
Other - 5 - 5 
Totals $69 $52 $33 $88 
Actual costs incurred for certain amounts accrued, realization on the sales of excess inventories, and costs associated 
with lease terminations and abandoned facilities may vary from current estimates. The appropriate accrued liability will 
be adjusted upon completion of these activities. 
17. Segment Information 
Delta provides scheduled air transportation for passengers, freight and mail over a network of routes throughout the United 
States and abroad. Delta's unconsolidated operating revenue and operating income by geographic region, as reported to the 
U.S. Department ofTransportation (which differs from operating revenue and operating income (loss) reported under 
GMP), are as follows: 
(In Millions) 1997 1996 1995 
Operating Operating 
Operating Operating Operating Income Operating Income 
Entity Revenue Income Revenue (Loss) Revenue (Loss) 
Domestic $11,096 $1,242 $10,067 $ 879 $ 9,619 $733 
Atlantic 2,223 195 2,175 (392) 2,164 (43) 
Latin 278 48 214 12 223 9 
Pacific 341 40 354 (40) 398 (40) 
Total $13,938 $1,525 $12,8 10 $ 459 $12,404 $659 
47 
1 99 7 AN NUA L R E P R T 
 Notes to Consolidated Fi nanc i a I Statements continued 
J UNE 30, 1997, 1996 AND 1995 
D ELTA AIR LINES, INC. 
18. Quarterly Financial Data (Unaudited) 
The following is a summary of the unaudited quarterly 
results of operations for fiscal 1997 and 1996 (in millions, 
except per share data): 
Fiscal 1997 
Operating revenues 
Operating income 
Net income 
Primary income per common share 
Fully diluted income per common share 
Fiscal 1996 
Operating revenues 
Operating income (loss) 
Net income (loss) 
Primary income (loss) per common share 
Fully diluted income (loss) per common share 
Operating expenses for the March 1997 quarter include 
$52 million pretax restructuring and other non-recurring 
charges related to the realignment of the Company's trans- 
atlantic and European operations. (See Note 16.) 
Operating expenses for the March 1996 quarter include 
$556 million pretax restructuring and other non-recurring 
charges related to the writedown of the Company's L-1011 
48 
Three Months Ended 
Sept. 30 Dec. 31 Mar. 31 June 30 
$3,432 $3,197 $3,420 $3,541 
$ 438 $ 227 $ 346 $ 519 
$ 238 $ 125 $ 189 $ 302 
$ 3.09 $ 1.66 $ 2.52 $ 3.98 
$ 2.98 $ 1.63 $ 2.47 $ 3.90 
$3,188 $2,944 $2,964 $3,359 
$ 386 $ 169 $ (387) $ 295 
$ 201 $ 70 $ (276) $ 161 
$ 3.47 $ 0.93 $ (5.77) $ 2.69 
$ 2.57 $ 0.93 $ (5.77) $ 2.08 
fleet and related assets, and the continuation of the Com- 
pany's Leadership 7.5 cost reduction program. Operating 
expenses for the June 1996 quarter include a $273 million 
pretax restructuring and other non-recurring charge for costs 
associated with a special early retirement program under 
which approximately 500 pilots retired during fiscal 1997. 
(See Note 16.) 
D ELTA AIR LI NES 
 Report of Independent Public Accountants 
To the Shareholders and the 
Board of Directors of Delta Air Lines, Inc.: 
We have audited the accompanying consolidated balance 
sheets of Delta Air Lines, Inc. (a Delaware corporation) and 
subsidiaries as ofJune 30, 1997 and 1996, and the related 
consolidated statements of operations, cash flows and share- 
holders' equity for each of the three years in the period ended 
June 30, 1997. These financial statements are the responsi- 
bility of the Company's management. Our responsibility is 
to express an opinion on these financial statements based on 
our audits. 
We conducted our audits in accordance with generally 
accepted auditing standards. Those standards require that we 
plan and perform the audit to obtain reasonable assurance 
about whether the financial statements are free of material 
misstatement. An audit includes examining, on a test basis, 
evidence supporting the amounts and disclosures in the 
financial statements. An audit also includes assessing the 
accounting principles used and significant estimates made 
by management, as well as evaluating the overall financial 
Report of Management 
The integrity and objectivity of the information presented 
in this Annual Report are the responsibility of Delta man- 
agement. The financial statements contained in this report 
have been audited by Arthur Andersen LLP, independent 
public accountants, whose report appears on this page. 
Delta maintains a system of internal financial controls 
which are independently assessed on an ongoing basis through 
a program of internal audits. These controls include the selec- 
tion and training of the Company's managers, organizational 
arrangements that provide a division of responsibilities, and 
communication programs explaining the Company's poli- 
cies and standards. We believe that this system provides 
reasonable assurance that transactions are executed in accor- 
dance with management's authorization; that transactions 
are appropriately recorded to permit preparation of financial 
statements that, in all material respects, are presented in 
conformity with generally accepted accounting principles; 
statement presentation. We believe that our audits provide 
a reasonable basis for our opinion. 
In our opinion, the financial statements referred to above 
present fairly, in all material respects, the financial position of 
Delta Air Lines, Inc. and subsidiaries as ofJune 30, 1997 and 
1996, and the results of their operations and their cash flows 
for each of the three years in the period ended June 30, 1997, 
in conformity with generally accepted accounting principles. 
As discussed in Note 10 of Notes to Consolidated Finan- 
cial Statements, effective July 1, 1994, the Company changed 
its method of accounting for postemployment benefits. 
~~ LLP 
Atlanta, Georgia 
August 15, 1997 
and that assets are properly accounted for and safeguarded 
against loss from unauthorized use. 
The Board of Directors pursues its responsibilities for 
these financial statements through its Audit Committee, 
which consists solely of directors who are neither officers nor 
employees of the Company. The Audit Committee meets 
periodically with the independent public accountants, the 
internal auditors and representatives of management to 
discuss internal accounting control, auditing and financial 
reporting matters. 
/~ 4 
Thomas J. Roeck, Jr. 
Senior Vice President - Finance 
and Chief Financial Officer 
49 
Leo F. Mullin 
President and 
Chief Executive Officer 
1 997 A NN UAL R E P O R T 
 Consolidated Summary of Operations 
For the fiscal years ended June 30 
(In M illions, Ev:cept Per Share Data) 1997' 19962 19953 19944 
Operating revenues $13,590 $12,455 $12, 194 $12,077 
Operating expenses 12,060 11,992 11,533 12,524 
Operating income (loss) 1,530 463 661 (447) 
Interest expense, net (174) (243) (262) (271) 
Gain (loss) on disposition of Aight equipment - 2 - 2 
Miscellaneous income, net6 59 54 95 56 
Income (loss) before income taxes 1,415 276 494 (660) 
Income tax benefit (provision) (561) (120) (200) 250 
Amortization of investment tax credits - - - 1 
Net income (loss) 854 156 294 (409) 
Preferred stock dividends (9) (82) (88) (110) 
Net income (loss) attributable to common shareholders $ 845 $ 74 $ 206 $ (519) 
Nee income (loss) per common share: 
Primary $ 11.30 $ 1.42 $ 4.07 $ (10.32) 
Fully diluted $ ll.01 $ 1.42 $ 4.01 $ (10.32) 
Dividends declared on Common Srock $ 15 $ 10 $ 10 $ 10 
Dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 
Other Financial and Statistical Data 
For the fiscal years ended June 30 
(In Millions, Except Share Data) 19971 19962 19953 19944 
Total assets $12,741 $12,226 $12,143 $111896 
Long-term debt and capital leases (excluding current maturities) $ 1,797 $ 2,175 $ 3,121 $ 3,228 
Shareholders' equity $ 3,007 $ 2,540 $ 1,827 $ 1,467 
Shares of Common Srock outstanding at year end 73,695,987 67,778,106 50,8 16,010 50,453,272 
Revenue passengers enplaned (Thousands) 101,147 91,341 88,893 87,399 
Available seat miles (Millions) 136,821 130,751 130,645 131,906 
Revenue passenger miles (M illions) 97,758 88,673 86,417 
Operating revenue per available seat mile 9.93 9.53 9.334: 
Passenger mile yield 12.79 13. 104: 13.104: 
Operating cost per available seat mile 8.8 l<t 9.17(): 8.834: 
Passenger load factor 71.45% 67.82% 66.1 5% 
Breakeven passenger load factor 62.71% 65.12% 62.28% 
Available ton miles (Millions) 18,984 18,084 18, 150 
Revenue ton miles (M illions) 11,308 10,235 10,142 
Operating cost per available ton mile 63.53<t 66.31</: 63.55 
1 Summary of operations and other financial and statistical data includes $52 million in pretax restructuring and other non-recurring charges ($0. 42 primary 
and $0.41 folly diluted after-tax income per common share). 
2 Summary of operations and other financial and statistical data includes $829 million in pretax restructuring and other non-recurring charges 
($9.71 after-tax per common share). 
3 Summary of operations and other financial and statistical data excludes $114 million after-tax cumulative effect of change in accounting standards 
($2.25 primary and $ 1.42 folly diluted income per common share). 
4Summary o 
f operations and other financial and statistical data includes $526 mi/Lion in pretax restructuring charges ($659 after-tax per common share). 
5 Summary of operations and other financial and statistical data includes $82 mllion p retax restructuring charge ($1. 05 after-tax per common share). 
Summary of operations excludes $587 miflion after-tax cumulative effect o 
f changes in accounting standards ($11.78 after-tax per common share). 
6 Includes interest income. 
50 
DE L TA A I R L I NES 
85,268 
9. 164: 
13.234: 
9.494: 
64.64% 
67.21% 
18,302 
9,9 11 
68.43<t 
II 
19935 
$11,657 
12,232 
(575) 
' 
(177) 
65 
36 
' 
(651) 
233 
3 
' (4 15) 
(110) 
I $ (525) 
$ (10.54) 
$ (] 0.54) 
$ 35 
$ 0.70 
19935 
$11,871 
$ 3,716 
$ 1,913 
50,063,841 
85,085 
132,282 
82,406 
8.8H 
13.234: 
9.254: 
62.30% 
65.58% 
18,1 82 
9,503 
67.27<t 
- - - - - 
1992 199 1 1990 1989 1988 1987 
$10,837 $9,171 $8,583 $8,089 $6,915 $5,318 
11,5 12 9,621 8,163 7,411 6,418 4,913 
(675) (450) 420 678 497 405 
(151) (97) (27) (39) (65) (62) 
35 17 18 17 ( 1) 96 
5 30 57 55 25 8 
(786) (500) 468 711 456 447 
271 163 (187) (279) (18 1) (219) 
9 13 22 29 32 36 
(506) (324) 303 461 307 264 
(19) (1 9) (1 8) - - - 
$ (525) $ (343) $ 285 $ 461 $ 307 $ 264 
$ (10.60) $ (7.73) $ 5.79 $ 9.37 $ 6.30 $ 5.90 
$ (10.60) $ (7.73) $ 5.28 $ 9.37 $ 6.30 $ 5.90 
$ 59 $ 54 $ 85 $ 59 $ 59 $ 44 
$ 1.20 $ 1.20 $ 1.70 $ 1.20 $ 1.20 $ 1.00 
1992 1991 1990 1989 1988 1987 
$10,162 $8,411 $7,227 $6,484 $5,748 $5,342 
$ 2,833 $2,059 $1,3 15 $ 703 $ 729 $1,018 
$ 1,894 $2,457 $2,596 $2,620 $2,209 $1,938 
49,699,098 49,401 ,779 46,086,110 49,265,884 49,101,271 48,639,469 
77,038 69,127 67,240 64,242 58,565 48,173 
123,102 104,328 96,463 90,742 85,834 69,014 
72,693 62,086 58,987 55,904 49,009 38,415 
8.80 8.794: 8.90 8.91 - 8.06 7.7H 
13.9 1</: 13.804: 13.634: 13.564: 13.154: 12.81</: 
9.354: 9.224: 8.46 8.17 7.484: 7.12ct 
59.05% 59.5 1 % 61.15% 61.61 % 57.10% 55.66% 
62.99% 62.64% 57.96% 56.09% 52.69% 51.09% 
16,625 13,825 12,500 11,725 ipso 9,000 
8,361 7,104 6,694 6,338 5,557 4,327 
69.24 69.59 65.30ct 63.21</: 57.05ct 54.604: 
51 
199 7 ANNUAL REP O RT 
 Shareholder Information 
TRANSFER AGENT, REGISTRAR AND 
DIVIDEND PAYING AGENT FOR COMMON STOCK 
Registered shareholder inquiries regarding stock transfers, 
address changes, lost stock certificates, dividend payments, 
or account consolidations should be directed to: 
First Chicago Trust Company of New York 
P. 0. Box 2500 
Jersey City, New Jersey 07303-2500 
Telephone (201) 324-1225 
DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN 
Registered holders of Common Stock may purchase addi- 
tional shares of such stock through automatic dividend 
reinvestment or cash contributions under the Company's 
Dividend Reinvestment and Stock Purchase Plan. Inquiries, 
notices, requests and other communications regarding par- 
ticipation in the plan should be directed to: 
First Chicago Trust Company of New York 
P. 0. Box 2598 
Jersey City, New Jersey 07303-2598 
Telephone (201) 324-1225 
INDEPENDENT PUBLIC ACCOUNTANTS 
Arthur Andersen LLP 
133 Peachtree Street, N.E. 
Atlanta, Georgia 30303 
ANNUAL MEETING 
The Annual Meeting of Shareholders will be held on Thurs- 
day, October 23, 1997, at 9:00 a.m., local time, in the Holiday 
Inn Professional Centre/ Atrium, 2001 Louisville Avenue, 
Monroe, Louisiana 71201. 
AVAILABILITY OF FORM 1O-K AND 
OTHER FINANCIAL INFORMATION 
A copy of the Company's Annual Report on Form 10-K for 
the fiscal year ended June 30, 1997 will be provided with- 
out charge upon written request. Requests for other finan- 
cial documents may also be directed to: 
Delta Air Lines, Inc. 
Investor Relations, Department 829 
P. 0. Box 20706 
Atlanta, Georgia 30320-6001 
Telephone (404) 715-2170 
52 
Company documents filed electronically with the SEC 
can also be found on the SEC's Web Site (http://www.sec.gov.). 
A copy of the Annual Report can be found on Delta's Web 
Site (http:/ /www.delta-air.com). 
Telephone inquiries related to financial information, 
other than requests for financial documents, may be 
directed to Delta Investor Relations at (404) 715-6679. 
COMMON STOCK 
Listed on the New York Stock Exchange under the ticker 
symbol DAL. 
NUMBER OF SHAREHOLDERS 
As of August 15, 1997, there were 22,880 registered hold- 
ers of Common Stock. 
MARKET PRICES AND DIVIDENDS 
Closing Price of 
Common Srock on 
Fiscal Year 1997 New York Srock Exchange 
Quarter Ended: High Low 
September 30 $827/s $667/s 
December 31 771 
/ 2 
67 
March 31 87 69 
June 30 98 1/a 825/a 
Fiscal Year 1996 
Quarter Ended: High Low 
September 30 $ 80 $66  
December 31 795/s 64 
March 31 82 67 3/a 
June 30 86 771 
/ 4 
Photography by Delta Photography Department 
Designed and produced by Corporate Reports fnc.!Atlanta 
@ Printed on recycled paper 
Cash 
Dividends Per 
Common Share 
$0.05 
0.05 
0.05 
0.05 
$0.05 
0.05 
0.05 
0.05 
DELTA AIR L I NES 
 North American 
Network 
International 
Network 
Delta Express 
Delta Shuttle 
Delta Air Cargo 
Delta is the largest U.S. airline measured 
by aircraft departures and passengers 
enplaned, and the third-largest U.S. air- 
line measured by operating revenues and 
revenue passenger miles flown. As of 
August 15, 1997, Delta's North American 
flight operations provide scheduled ser- 
vice to 122 airports in 149 cities in the 
U.S., Puerto Rico and the U.S. Virgin 
Delta is the leading transatlantic airline 
among U.S. carriers, with the most 
departures, nonstop destinations and 
passengers. Delta provides scheduled 
passenger service to 31 airports in 31 
cities within 21 foreign countries 
On October 1, 1996, Delta began oper- 
ating Delta Express, and in less than six 
months of operations the millionth pas- 
senger had been boarded. Delta Express 
is a new low-fare service within the Delta 
system which operates a dedicated fleet of 
In 1991, Delta began operating the Delta 
Shuttle. With a dedicated fleet of 14 
Boeing 727 aircraft, the Shuttle provides 
64 daily flights between New York and 
Washington, D.C. and New York and 
Boston. The Shuttle boarded over 2 mil- 
lion customers during fiscal 1997, and in 
April 1997 reached a boarding milestone,  
Delta, the Delta Shuttle, Delta Express and 
the Delta Connection carriers offer over 
4,800 flights daily to cities all over the 
world, and every flight has the ability to 
carry cargo. Cargo terminal facilities are 
strategically located to provide excellent 
coverage for shipping destinations around 
the U.S. and the world. Strategic loca- 
tions and experienced staff have resulted 
Islands and 9 airports in 10 cities in 
Canada, Bermuda, the Bahamas and 
Mexico. Mexico is also served through 
8 airports and 10 cities on a code-share 
basis. Delta's domestic route service is 
supplemented by service operated by the 
Delta Connection carriers, which include 
Atlantic Southeast Airlines, Business 
Express, COMAIR and SkyWest. 
throughout Europe, Asia and Latin 
America. When flights operated on a 
code-share basis are included, Delta's 
international route network includes 
48 airports in 48 cities in 34 countries. 
25 Boeing 737-200 aircraft in certain highly 
competitive, leisure-oriented travel markets. 
This route system connects the North- 
eastern U.S. and Midwest with Orlando 
and other Florida travel destinations. 
having served over 10 million passengers 
since 1991. The majority of Shuttle passen- 
gers travel for business, and nearly one-half 
live in the New York/New Jersey area. 
With an on-time departure rate exceed- 
ing 95% for fiscal 1997, the Delta Shuttle 
provides exc;ellent service and reliability 
for travelers in the Northeast market. 
in outstanding records in both customer 
service a.nd schedule reliability. From 
expedited small package shipping (Delta 
DASH 
) and Priority First Freight to 
second and third-day time-definite ser- 
vice, the Air Cargo division offers a wide 
range of products to assist customers in 
their shipping needs. 
 A .Delta Air Lines 
P.O. Box 20706, Atlanta, Georgia 30320-6001 U.S.A. 
http://www.delta-air.com