Calendar Year 2000 Annual Report 
Delta Air Lines, Inc. 
  Because Delta is changing its 
12-month financial reporting 
period from a fiscal year ending 
June 30 to a calendar year ending 
December 31, we gain this addi- 
tional opportunity to review with 
you the progress our company has 
made. Given the pace and signifi- 
cance of events in the aviation 
industry since our fiscal year 
2000 annual report was distrib- 
uted in September, this update is 
well-timed. It allows us to review 
for you both our accomplishments 
during calendar year 2000 and the 
challenges we face as the industry 
moves forward through what is 
arguably its most tumultuous 
period ever. 
Following the crowded summer 
travel period which put the spotlight 
on the serious air traffic and airport 
capacity problems, we are now fac- 
ing labor issues, a trend toward 
industry consolidation and an eco- 
nomic downturn. While Delta's 
management team is taking a real- 
istic view of these matters, we 
also know that over the past three 
years we have made good progress  
toward well-defined strategic objec- 
tives. As a result, we have estab- 
lished a strong foundation. We 
believe we are prepared to move 
through this challenging period and 
emerge with the position and 
strength necessary to continue 
growing profitably. 
*Excludes unusual items 
SOUND FINANCIAL RESULTS 
Delta's performance over the last 
year in operational and financial 
areas was once again strong, and 
the fundamentals of our business 
remain solid. During 2000, we: 
 Earned $897 million* in net 
income, the highest of any airline; 
 Recorded an operating margin of 
10.4%*, the fifth consecutive year 
of double-digit margins; 
 Maintained an 8% cost advantage 
over the industry average; 
 Sold 9% of Delta tickets on-line 
and launched a new delta.com 
Web site; 
 Announced plans for a major 
$1.6 billion terminal expansion 
at New York-Kennedy airport; 
 Grew our international presence 
through the SkyTeam alliance and 
our successful growth to all major 
Latin American cities; 
 Finished in the top tier of 
the major U.S. Department of 
Transportation customer service 
measures and; 
 Enplaned 120 million passen- 
gers, more than any other air- 
line in the world. 
These are solid results achieved 
despite the significant challenges 
we encountered in the course of 
the year. 
LETTER TO SHAREOWNERS 
"We believe we 
are prepared to move 
through this challenging 
period and emerge with 
the position and 
strength necessary to 
continue growing 
profitably." 
 "Delta's advantages 
derive from our core 
strengths, including 
a balanced hub 
network with room 
for expansion, an 8% 
cost advantage over 
the industry average 
and a workforce that 
is 83% union free." 
2 
WORKING TOWARDS AN 
AGREEMENT WITH ALPA 
Delta and the Air Line Pilots 
Association, International (ALPA), 
the union representing Delta's 
approximately 9,800 pilots, have 
been in contract talks since 
September 1999. Progress has 
been made during this time, and 
Delta's negotiating position has 
remained constant: We are commit- 
ted to top pay for top performance 
for all employee groups, including 
pilots. However, Delta must retain 
the strategic flexibility needed to 
make the decisions and pursue  
the options that will allow us to 
support this commitment. 
Currently, Delta and ALPA are 
engaged in an aggressive schedule 
of negotiations with the assistance 
of federal mediators. Our constant 
and primary goal is to reach a con- 
tract that is fair and mutually bene- 
ficial and to reach it sooner rather 
than later. 
THE TREND TOWARD 
CONSOLIDATION 
The most compelling industry 
development in the last year has 
been the growing trend toward 
consolidation. Currently, four of 
the seven major hub and spoke 
carriers-American Airlines, Trans 
World Airlines, United Airlines and 
US Airways-are involved in pro- 
posed transactions. These propos- 
als, if approved, would lead to 
basic structural and competitive 
changes in the nation's air trans- 
portation industry. 
Delta is carefully weighing our 
response to this potential major 
shift in the industry structure. We 
have the opportunity to continue 
pursuing our goals without a merger 
or acquisition, for we believe in our 
ability to compete effectively given 
our considerable strategic advan- 
tages. Delta's advantages derive 
from our core strengths, including 
a balanced hub network with room 
for expansion, an 8% cost advan- 
tage over the industry average and 
a workforce that is 83% union free. 
If we determine that our best 
strategic option is to pursue a 
merger or acquisition, either now 
or in the future, we will do that. You 
can be sure that any such step will 
be carefully evaluated in view of the 
interests of our shareowners and 
its capacity to advance and 
strengthen our company to the ben- 
efit of our customers and employ- 
ees. In a service industry such as 
ours, the interests of each con- 
stituency must be served to ensure 
the success of all constituencies. 
 Shareowners-who provide 
the capital Delta requires to 
support both customer and 
employee needs-want the 
superior shareowner value that 
comes from a company that suc- 
ceeds through high levels of cus- 
tomer satisfaction provided by a 
dedicated workforce. 
 Customers-the source of 
Delta's income-want a smooth 
and seamless travel experience 
to the destinations they choose. 
 Employees-who provide the 
travel experience for our cus- 
tomers-want to work for a com- 
pany that offers the security and 
rewards that are associated with 
corporate success and that gives 
them the tools they need to 
serve our passengers' needs. 
We know that such transac- 
tions have profound implications. 
Our commitment to you is that we 
will make any related de.cisions 
with an unwavering foe.us on serv- 
ing the best interests of our con- 
stituencies. 
THE ECONOMIC OUTLOOK 
The economic environment is also 
of concern as we enter 2001. Gross 
Domestic Product estimates now 
show contraction for the first quar- 
ter of 2001, and most Wall Street 
banks predict flat or negative growth 
for the first six months of the year. 
While we at Delta do not see 
signs of a full recession yet, we 
do believe that 2001 will not yield 
the level of revenue gains gener- 
ated in 2000. As a result, Delta 
is managing our company with a 
tough-minded focus on costs. We 
are confident that Delta has the 
cost discipline, cash flow and bal- 
ance sheet strength to sustain us 
in this uncertain economy. 
LOOKING TO THE FUTURE 
Going forward, the task before us 
is significant as the issues of labor 
and consolidation play out against 
the backdrop of a slowing economy. 
Nonetheless, Delta remains confi- 
dent that these event-driven issues 
will, for the most part, be resolved 
in the next several months as a con- 
tract is reached with our pilots, as 
decisions are made about the direc- 
tion consolidat, 
ion will take, and as 
the expected upturn of the econ- 
omy begins later this year. We 
believe these changes will leave 
Delta poised to continue growing 
profitably from a solid foundation 
and a clear strategic focus. 
Leo F. Mullin 
Chairman and Chief Executive Officer 
February 15, 2001 
3 
  Glossary of Defined Terms 
Accumulated Postretirement Benefit Obligation- 
a measure of the deferred compensation obligation, 
other than pensions, that Delta has to its employees 
under postretirement welfare benefit plans. 
Air Traffic Liability-an estimate of the amount 
received for passenger ticket sales and cargo trans- 
portation services which have not yet been provided. 
As the transportation service is provided by Delta, the 
amount is removed from air traffic liability and recog- 
nized as revenue. 
ASM-Available Seat Mile. A measure of capacity 
which is calculated by multiplying the total number 
of seats available for transporting passengers by the 
total number of miles flown during a reporting period. 
Cargo Ton Miles-the total number of tons of cargo 
transported during a reporting period, multiplied by 
the total number of miles cargo is flown. 
CASM-(Operating) Cost per Available Seat Mile. 
The amount of operating cost incurred per available 
seat mile during a reporting period. Also referred to 
as unit cost. 
Collective Bargaining Agreement-an agreement 
between an employer and a union representing a 
group of employees which details pay rates and 
working conditions for that group of employees. 
Common Stock-the common stock, par value 
$1.50 per share, of Delta Air Lines, Inc. 
ER/SA-The Employee Retirement Income Security 
Act of 197 4. This federal law governs employee 
benefit and retirement plans. 
Net Debt-to-Capital Position-a measure of leverage 
which is calculated by dividing net debt by total capi- 
talization. Net debt includes short-term and long-term 
debt, capital lease obligations and the present value 
of operating lease obligations, reduced by cash and 
short-term investments. Capital includes net debt 
and shareowners' equity, including the Series B ESOP 
Convertible Preferred Stock. 
Financial 
Review 
Management's Discussion and Analysis of 
Financial Condition and Results of Operations 
Consolidated Balance Sheets 
Consolidated Statements of Income 
Consolidated Statements of Cash Flows 
Consolidated Statements of Shareowners' Equity 
Notes to the Consolidated Financial Statements 
DELTA A I R L IN ES , IN C . 
Non-Fuel CASM-the amount of operating cost 
incurred per available seat mile during a reporting 
period, excluding aircraft fuel expense. 
Operating Margin-operating income divided by 
operating revenues. 
Passenger Load Factor-a measure of aircraft 
utilization which is calculated by dividing RPMs 
by ASMs for a reporting period. 
Passenger Mile Yield-the amount of passenger 
revenue earned per revenue passenger mile during 
a reporting period. 
Projected Benefit Obligation-a measure of the 
deferred compensation obligation that Delta has 
to its employees under its pension plans. 
RASM-(Operating) Revenue per Available Seat Mile. 
The amount of operating revenue earned per avail- 
able seat mile during a reporting period. Also referred 
to as unit revenue. 
RPM-Revenue Passenger Mile. One revenue-paying 
passenger transported one mile. RPMs are calcu- 
lated by multiplying the number of revenue passen- 
gers by the number of miles they are flown for the 
reporting period. 
Series B SOP Convertible Preferred Stock- 
convertible preferred stock, $1.00 par value, 
$72.00 stated and liquidation value, which is 
allocated to participants as part of the Employee 
Stock Ownership Plan (ESOP). 
Ton Mile Yield- amount of cargo revenue earned 
per cargo ton mile during a reporting period. 
Working Capital Position-calculated as current assets 
minus current liabilities. 
6 Report of Management 
14 Report of Independent Public Accountants 
16 Consolidated Summary of Operations 
17 Officers and Board of Directors 
18 Shareowner Information 
35 
35 
36 
38 
40 
19 Delta's Aircraft Fleet Back Cover 
5 
 6 
Management's Discussion and Analysis 
of Financial Condition and Results of Operations 
Results of Operations 
2000 COMPARED TO 1999 
Net Income and Earnings per Share (EPS) 
Our net income excluding the unusual items 
described below was $897 million ($6.81 diluted 
EPS) in 2000, compared to $1.0 billion ($6. 79 
diluted EPS) in 1999. Net income including 
unusual items totaled $828 million in 2000 ($6.28 
diluted EPS), compared to $1.2 billion in 1999 
($8.15 diluted EPS). 
This Annual Report includes audited Consolidated 
Balance Sheets as of December 31, 2000 and 1999 
and audited Consolidated Statements of Income, 
Cash Flows and Shareowners' Equity for the years 
ended December 31, 2000, 1999 and 1998. 
Unusual Items 
Our results of operations for 2000 and 1999 
include the following unusual items which are 
collectively referred to in this Annual Report as 
"unusual items. " 
2000 
Gains: 
 Gains from the sale of investments totaling $301 mil- 
lion ($184 million after tax, or $1.40 diluted EPS). 
This includes a pretax cash gain of $73 million from 
the sale of 1.2 million shares of the common stock 
of priceline.com Incorporated (priceline) and a pretax 
non-cash gain of $228 million from the exchange of 
six million shares of priceline common stock for 
priceline preferred stock. (See Note 2 of the Notes 
to the Consolidated Financial Statements.) 
 A one-time, non-cash gain of $16 million ($10 million 
after tax, or $0.07 diluted EPS), related to our equity 
investment in WORLDSPAN, L.P. (Worldspan). The 
gain represents Delta's share of Worldspan's favor- 
able outcome from certain arbitration proceedings. 
Charges: 
 A $100 million charge from the cumulative effect 
of a change in accounting principle, net of tax 
($0. 77 diluted EPS), resulting from our adoption 
of Statement of Financial Accounting Standards 
(SFAS) 133, "Accounting for Derivative Instruments 
and Hedging Activities, " as amended. SFAS 133 
requires us to record all derivative instruments on 
the balance sheet at fair value, and to recognize in 
the income statement certain non-cash changes in 
these fair values. For additional information regard- 
ing our implementation of SFAS 133, see Note 3 of 
the Notes to the Consolidated Financial Statements. 
DELTA AIR LINES , INC . 
 Non-cash charges for fair value adjustments under 
SFAS 133 totaling $159 million ($97 million after 
tax, or $0. 7 4 diluted EPS). These charges relate to 
derivative instruments we use in our fuel hedging 
program and to our equity warrants and other simi- 
lar rights in other companies, primarily priceline. 
 Asset writedowns and other special charges 
totaling $108 million ($66 million after tax, or 
$0.50 diluted EPS). This includes pretax charges of 
$86 million for an early retirement medical option 
program and $22 million related to our decision to 
close our Pacific gateway in Portland, Oregon. 
 A charge totaling $7 million ($4 million after tax, 
or $0.03 diluted EPS) for the early extinguishment 
of certain debt obligations. 
1999 
Gains: 
 Gains from the sale of investments totaling 
$927 million ($565 million after tax, or $3.83 
diluted EPS). This includes the following pretax 
cash gains: (1) $711 million from the sale of 
11.1 million shares of priceline common stock; 
(2) $137 million from the sale of our equity inter- 
est in Singapore Airlines Limited; (3) $29 million 
from the sale of our equity interest in SAirGroup, 
the holding company of Swissair; and (4) $50 mil- 
lion from the sale of a portion of our interest in 
Equant N.V. (Equant), an international data net- 
work services company. (See Note 2 of the Notes 
to the Consolidated Financial Statements.) 
Charges: 
 Asset writedowns and other special charges total- 
ing $469 million ($286 million after tax, or $1.94 
diluted EPS). This includes pretax charges of 
$320 million for an asset writedown resulting from 
our decision to retire certain aircraft earlier than 
previously planned and $149 million for asset 
impairment losses and costs incurred to streamline 
certain operations. (See Note 8 of the Notes to the 
Consolidated Financial Statements.) 
 A $54 million charge from the cumulative effect 
of a change in accounting principle, net of tax 
($0.37 diluted EPS), resulting from our January 1, 
1999 adoption of SEC Staff Accounting Bulletin 
(SAB) 101, "Revenue Recognition in Financial 
Statements." SAB 101 required us to change 
our method of accounting for the sale of frequent 
flyer mileage credits to participating partners. 
(See Note 5 of the Notes to the Consolidated 
Financial Statements.) 
 A charge totaling $40 million ($24 million after 
tax, or $0.16 diluted EPS) for the early extinguish- 
ment of certain long-term debt obligations. 
 Acquisition of Comair Holdings, Inc. and 
ASA Holdings, Inc. 
Delta strengthened its competitive posit ion by 
acquiring Comair Holdings, Inc. (Comair Holdings) and 
ASA Holdings, Inc. (ASA Holdings) in 1999. Comair 
Holdings and ASA Holdings are the parent companies 
of regional jet carriers Comair, Inc. (Comair) and 
Atlantic Southeast Airlines, Inc. (ASA), respectively. 
Our consolidated results of operations for 2000 
include the results of operations of Comair Holdings 
and ASA Holdings for the entire year. Our 1999 
consolidated results of operations include the results 
of operations of Comair Holdings from November 22, 
1999 and ASA Holdings from April 1, 1999. 
(See Note 18 of the Notes to the Consolidated 
Financial Statements.) 
Operating Revenues 
(In Millions of Dollars) $l 
6 
, 
7 41 
$14,883 
$14,312 
1998 1999 2000 
Operating Revenues 
Operating revenues 
were $16. 7 billion in 
2000, increasing 12% 
from $14.9 billion in 
1999. Passenger revenues 
grew 12% to $15. 7 billion, 
reflecting a 6% increase in 
RPMs on capacity growth 
of 5%, and a 5% increase 
in passenger mile yield to 
13.86. Excluding Comair 
and ASA, RPMs grew 3% on capacity growth of 2%. 
North American Passenger Revenues - North American 
passenger revenues grew 11% to $13.2 billion. RPMs 
increased 6% on capacity growth of 6%, while passen- 
ger mile yield increased 4%. The increase in RPMs is 
due to the inclusion of Comair and ASA, continued 
favorable economic conditions and the expansion of 
our fleet. The growth in traffic was partially offset by 
flight cancellations due to severe winter weather 
conditions and reduced flying by some Delta pilots. 
The increase in passenger mile yield was largely a 
result of the full-year impact of Comair and ASA and 
improved revenue management systems, partially 
offset by increased low-fare competition and capac- 
ity increases by competitors. 
International Passenger Revenues- International 
passenger revenues increased 20% to $2.5 billion 
during 2000. RPMs rose 7% on capacity growth of 
5%, and passenger mile yield increased 12%. RPM 
growth is primarily a result of our continuing expan- 
sion into Latin America, which resulted in 24% traffic 
growth in that region during the year. Increased 
passenger mile yield reflects strong demand and 
improved revenue management systems. 
Cargo and Other Revenues-Cargo revenues increased 
4% to $583 million, reflecting a 6% rise in cargo ton 
miles partially offset by a 2% decline in ton mile 
yield. The increase in cargo ton miles was primarily 
caused by overall capacity increases and higher mail 
volume from the growth in ~ommerce activity. The 
decrease in ton mile yield was due to pricing pres- 
sure from industry-wide capacity growth in interna- 
tional markets. Other revenues increased 34% to 
$501 million, mainly a result of higher revenues from 
joint marketing programs, codeshare activity and 
administrative service charges. 
I CASM* 
9.68 
8.80 
8.90 
1998 1999 2000 
* Excludes asset writedowns and other 
special charges 
Operating Expenses 
Excluding asset 
writedowns and other 
special charges, operating 
expenses for 2000 totaled 
$15.0 billion , increasing 
15% from $13.1 billion in 
1999. CASM rose 9% to 
9.68, while non-fuel 
CASM increased 6% to 
8.41. Including asset 
writedowns and other spe- 
cial charges, operating 
expenses increased 11% to $15.1 billion, CASM 
increased 6% to 9.75, and non-fuel CASM grew 
3% to 8.48. Operating capacity grew 5% to 155 bil- 
lion ASMs. 
Salaries and related costs increased 15% during 
2000. The average number of full-time equivalent 
employees increased 13%, primarily due to the inclu- 
sion of Comair and ASA. Excluding Comair and ASA, 
headcount increased 2%. The increase in salaries 
and related costs also reflects salary increases of 
3% for pilots on January 1, 2000, and 3% for most 
domestic non-union employees on April 1, 2000. 
Aircraft fuel expense increased 39% in 
2000. The average fuel price per gallon rose 32% 
to 67 .38. Total gallons consumed increased 5% 
due to increased operations on a 5% inqrease in 
capacity. Delta's fuel cost is shown net of fuel 
hedge gains of $684 million in 2000 and $79 mil- 
lion in 1999. Approximately 67% and 75% of our 
aircraft fuel requirements were hedged during 
2000 and 1999, respectively. 
Depreciation and amortization expense rose 
12% in 2000 due to the acquisition of additional air- 
craft and ground equipment, as well as the full-year 
impact of Comair and ASA. Other selling expenses 
increased 10%, primarily caused by higher credit 
card charges and booking fee payments from higher 
passenger volume. 
Passenger commissions expense declined 16%, 
due to changes to the travel agent commission rate 
structure and our customers' increased use of lower- 
7 
 8 
Management's Discussion and Analysis 
of Financial Condition and Results of Operations 
cost distribution channels such as the Internet. 
Internet sales accounted for approximately 9% of 
total revenue flown in 2000 compared to 4% in 
1999. Contracted services expense increased 17% 
in 2000, a result of the inclusion of an entire year 
of Comair and ASA, as well as higher costs related 
to customer service and technology initiatives. 
Landing fees and other rents increased 7%, air- 
craft rent expense increased 19%, and aircraft mainte- 
nance materials and outside repair expense grew 
22%, mainly a result of the inclusion of Comair and 
ASA. Passenger service expense decreased 6%, 
reflecting process improvements which streamlined 
our catering operations. Other costs increased 13% 
due to higher professional fees, supply costs and 
interrupted operations expenses, as well as the 
inclusion of Comair and ASA. 
Operating Income and Operating Margin 
Excluding asset writedowns and other 
special charges, operating income was $1.7 billion 
in 2000, compared to $1.8 billion in 1999. Operat- 
ing margin decreased to 10.4% during 2000 from 
12.0% in 1999. 
Operating income including asset writedowns 
and other special charges totaled $1.6 billion in 
2000 and $1.3 billion in 1999. Operating margin 
was 9.8% in 2000, compared to 8.9% in 1999. 
Other Income (Expense) 
Other expense totaled $88 million during 2000, 
compared to other income of $775 million in 1999. 
This change is primarily attributable to the following: 
 gains from the sale of investments in 1999 
exceeded gains in 2000 by $626 million (see 
Note 2 of the Notes to the Consolidated 
Financial Statements); 
 the fair values of SFAS 133 derivatives were 
reduced by $159 million in 2000 (see Note 3 
of the Notes to the Consolidated Financial 
Statements); and 
 net interest expense increased $145 million in 
2000, due to higher levels of outstanding debt and 
higher interest rates. 
1999 COMPARED TO 1998 
Net Income and Earnings per Share 
Net income excluding unusual items totaled 
$1.0 billion in 1999 ($6. 79 diluted EPS). Net income 
including unusual items was $1.2 billion during 1999 
($8.15 diluted EPS), compared to $1.1 billion in 
1998 ($6.87 diluted EPS). There were no unusual 
items in 1998. 
Our 1999 results include the results of operations 
of Comair Holdings from November 22, 1999 and of 
ASA Holdings from April 1, 1999. (See Note 18 of 
the Notes to the Consolidated Financial 
Statements.) 
DELTA A I R L IN ES , IN C . 
Operating Revenues 
Operating revenues were $14.9 billion for 1999, 
increasing 4% from $14.3 billion in 1998. Passenger 
revenue growth of 4% reflects a 3% increase in RPMs 
on 3% capacity growth and a 1% increase in passen- 
ger mile yield. 
North American Passenger Revenues-North American 
passenger revenues grew 6% to $11. 7 billion, driven 
by a 3% increase in RPMs on capacity growth of 4% 
and a 3% rise in passenger mile yield. The increase in 
RPMs was a result of favorable economic conditions 
and increased traffic, the inclusion of ASA and the 
expansion of our fleet. Passenger mile yield grew due 
to fare increases during the June 1999 quarter and 
improved asset utilization, partially offset by increased 
low-fare competition and matching sale fares imple- 
mented by a competitor after its pilot strike. 
International Passenger Revenues- International 
passenger revenues decreased 5% to $2.3 billion 
during 1999. A 2% increase in RPMs on capacity 
growth of 1% was offset by a 6% decline in passen- 
ger mile yield. The increase in RPMs primarily reflects 
the addition of new Atlantic routes and continued 
expansion into Latin American markets. The decline in 
passenger mile yield is primarily a result of increased 
competitive pressures due to industry-wide capacity 
growth in the Atlantic and Latin American markets. 
Demand in the Pacific also decreased during 1999, 
driven by the Asian economic slowdown. 
Cargo and Other Revenues-Cargo revenues declined 
1% to $561 million during 1999, reflecting a 2% 
increase in cargo ton miles offset by a 3% decrease in 
ton mile yield. Other revenues increased 18%, mainly 
a result of higher revenues from codeshare programs. 
Operating Expenses 
Excluding asset writedowns and other special 
charges, operating expenses rose 5% in 1999. 
CASM increased 1% to 8.90, and non-fuel CASM 
increased 1% to 7.94. 
Including asset writedowns and other special 
charges, operating expenses increased 8% to 
$13.6 billion. CASM increased 5% to 9.22 while 
non-fuel CASM grew 5% to 8.26. Operating capacity 
rose 3% to 147 billion ASMs. 
Salaries and related costs increased 6% due to 
7% growth in the average number of full-time equiva- 
lent employees and a 2% general salary increase. 
Aircraft fuel expense increased 3%, due to a slight 
increase in the average fuel price per gallon and a 
3% increase in gallons consumed. Our fuel cost in 
1999 is net of $79 million in gains resulting from 
fuel hedge contracts. 
 Depreciation and amortization expense rose 17% 
due to the acquisition of additional aircraft and ground 
equipment, as well as the inclusion of ASA in 1999. 
Other selling expenses decreased 1%. Passenger 
commissions fell 17%, a result of lower effective 
commission rates and increased utilization of lower- 
cost distribution channels. 
Contracted services expense increased 13% 
due to expanded operations into new and existing 
markets, contract rate increases and the inclusion 
of ASA. Landing fees and other rents rose 8% and 
aircraft rent increased 9%, primarily due to expanded 
operations and the inclusion of leased aircraft 
at ASA. Aircraft maintenance and outside repairs 
increased 13%, due to outside repairs expense at 
ASA. Passenger service expense increased 1% as 
a result of higher supply costs. Other operating 
expenses decreased 3%, caused by lower profes- 
sional fees and navigation charges. 
Operating Income and Operating Margin 
Excluding asset writedowns and other special 
charges, operating income totaled $1.8 billion in 
1999, and operating margin was 12.0%. 
Including asset writedowns and other special 
charges, operating income totaled $1.3 billion in 
1999, compared to $1.8 billion in 1998. Operating 
margin was 8.9% in 1999, compared to 12.6% in 
1998. 
Other Income (Expense) 
Other income increased $802 million to $775 
million during 1999. The increase was due to gains 
from the sale of investments of $927 million, which 
were partially offset by increased interest expense 
due to higher levels of outstanding debt and a 
$40 million loss from the early extinguishment of 
debt obligations. 
Capital Expenditures 
(In Millions of Dollars) 
$4,060 
$3,055 
$2,723 
1998 1999 2000 
Financial Condition 
and Liquidity 
2000 
Cash and cash 
equivalents and short- 
term investments 
totaled $1.6 billion at 
December 31, 2000, 
compared to $2.3 billion 
at December 31, 1999. 
We reinvested $4 billion 
into our business during 
2000, buying new aircraft, 
customer service improvements and technology 
upgrades. Our principal sources and uses of cash 
during 2000 are summarized below. 
Sources 
 Generated $2.9 billion of cash from operations. 
 Issued $1.5 billion of secured equipment notes. 
 Borrowed $301 million from the Development 
Authority of Clayton County to prepay bonds that 
had been issued to finance certain Delta facili- 
ties at Hartsfield Atlanta International Airport. 
 Generated $336 million from the sale/leaseback 
of regional jets and $48 million from the sale of 
other flight equipment. 
 Received $73 million from the sale of priceline 
common stock. 
 Issued 729,426 shares of common stock for 
$33 million. These shares were primarily issued 
under our broad-based employee stock option plans. 
Uses 
 Invested $3.4 billion in flight equipment and 
$634 million in technology and ground property and 
equipment. 
 Paid $972 million on debt and capital lease 
obligations. 
 Repurchased 10.6 million shares of common stock 
for $502 million. 
 Paid $232 million to complete the acquisition of 
Comair Holdings. 
 Paid $40 million in cash dividends on preferred 
and common stock. 
As of December 31, 2000, we had a negative 
working capital position of $2.0 billion. A negative 
working capital position is normal for us, primarily 
due to our air traffic liability, and does not indicate 
a lack of liquidity. We expect to meet our obligations 
as they become due through available cash, short- 
term investments and internally generated funds, sup- 
plemented as necessary by debt financings and 
proceeds from aircraft sale and leaseback transac- 
tions. At December 31, 2000, we had $1.25 billion 
of credit available under our 1997 Bank Credit Agree- 
ment. (See Note 7 of the Notes to the Consolidated 
Financial Statements.) 
Long-term debt and capital lease obligations, 
including current maturities, totaled $6.0 billion at 
December 31, 2000, compared to $5.0 billion at 
December 31, 1999. The increase is primarily due to 
our issuance in November 2000 of $1.5 billion princi- 
pal amount of secured equipment notes for general 
corporate purposes, a portion of which was used to 
prepay $500 million that we had borrowed under a 
credit facility to acquire ASA Holdings. Shareowners' 
equity was $5.3 billion at December 31, 2000 and 
$4.9 billion at December 31, 1999. 
Our net debt-to-capital position was 71% 
at December 31, 2000, compared to 68% at 
December 31, 1999. For additional information 
9 
 Management's Discussion and Analysis 
of Financial Condition and Results of Operations 
regarding Delta's credit agreements and long-term 
debt, see Note 7 of the Notes to the Consolidated 
Financial Statements. 
PRIOR YEARS 
1999 
During 1999, our principal sources of funds 
were $2.6 billion of cash from operations, $5.0 billion 
from the issuance of long-term and short-term debt, 
and $1.4 billion from the sale of investments and 
flight equipment. In addition, we received $104 mil- 
lion from the issuance of common stock. We invested 
$2.5 billion in flight equipment and $558 million in 
ground property and equipment. We also invested 
$1.6 billion to acquire Comair Holdings and $700 mil- 
lion to acquire ASA Holdings and made payments of 
$2.2 billion on debt and capital lease obligations. In 
addition, we repurchased $625 million of common 
stock and paid $43 million in cash dividends on pre- 
ferred and common stock. 
1998 
During 1998, our principal sources of funds 
were $2.7 billion of cash from operations, $402 mil- 
lion from the issuance of long-term and short-term 
debt, and $168 million from the issuance of common 
stock. We invested $2.1 billion in flight equipment 
and $633 million in ground property and equipment 
and made payments of $400 million on debt and 
capital lease obligations. We also repurchased 
$694 million of common stock and paid $43 million 
in cash dividends on preferred and common stock. 
Financial Position 
DECEMBER 31, 2000 
COMPARED TO DECEMBER 31, 1999 
This section discusses certain changes in 
our Consolidated Balance Sheets which are not 
otherwise discussed in Management's Discuss- 
sion and Analysis. 
The current portion of fuel hedge contracts at 
fair market value totaled $319 million at December 
31, 2000. As a result of the adoption of SFAS 133, 
fuel hedge derivative contracts are recorded at their 
market value and presented separately on our bal- 
ance sheet. (See Note 3 of the Notes to the 
Consolidated Financial Statements.) Prepaid 
expenses and other current assets decreased 29%, 
or $220 million, during 2000, a result of adopting 
SFAS 133. In accordance with the transition provi- 
sions of SFAS 133, premiums paid on fuel hedge 
derivative contracts were written off during the 
10 
D E LTA AIR LIN E S , INC . 
period. (See Note 3 of the Notes to the Consolidated 
Financial Statements.) 
Investments in debt and equity securities 
decreased 36%, or $189 million, due to fair value 
adjustments of these investments and the sale of 
a portion of our priceline common stock. 
Investments in associated companies increased 
98%, or $110 million, primarily due to higher equity 
earnings from Worldspan and an additional investment 
in a special purpose subsidiary (see Note 17 of the 
Notes to the Consolidated Financial Statements). 
Other noncurrent assets increased 60%, or $401 mil- 
lion. The increase is a result of the prepayment of 
certain lease obligations and fair value adjustments 
to long-term fuel hedge contracts. 
Accounts payable and miscellaneous accrued 
liabilities increased 14%, or $27 4 million. The 
increase in accounts payable is mainly due to more 
favorable payment terms in 2000. Increased fuel 
consumption and rising fuel prices also resulted in 
higher payable balances. 
Our net deferred tax liability increased $427 mil- 
lion. This is a result of a deferred tax provision of 
$396 million in 2000 (see Note 6 of the Notes to the 
Consolidated Financial Statements) and $31 million 
which is primarily attributable to the deferred tax 
impact of unrealized gains on marketable equity 
securities and derivative instruments and the adop- 
tion of SFAS 133. 
COMMITMENTS 
Estimated future expenditures for aircraft and 
engines on firm order as of January 26, 2000 totaled 
$9.6 billion. In addition, we have planned capital 
expenditures of $622 million for the twelve months 
ending December 31, 2001, for airport and facility 
improvements and the purchase of ground equipment 
and other assets. (See Notes 9 and 10 of the Notes 
to the Consolidated Financial Statements for addi- 
tional information regarding our lease obligations and 
purchase commitments.) 
MARKET RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS 
Delta has market risk exposure related to air- 
craft fuel prices, stock prices, interest rates and for- 
eign currency exchange rates. The market risk is the 
potential negative impact of adverse changes in 
these prices or rates on our consolidated financial 
statements. To manage the volatility relating to 
these exposures, we periodically enter into deriva- 
tive transactions pursuant to stated policies. (See 
Notes 3 and 4 of the Notes to the Consolidated 
 Financial Statements.) Management expects adjust- 
ments to the fair value of derivative instruments 
accounted for under SFAS 133 to result in ongoing 
volatility in earnings and shareowners' equity. 
The following sensitivity analyses do not 
consider the effects that an adverse change would 
have on demand for air travel, the economy as a 
whole, or additional actions by management to miti- 
gate our exposure to a particular risk. For these 
and other reasons, the actual results of changes in 
these prices or rates may differ materially from the 
following hypothetical results. 
Aircraft Fuel Price Risk 
Our results of operations can be significantly 
impacted by changes in the price of aircraft fuel. 
To manage this risk, we periodically enter into heating 
oil derivative contracts, such as forwards and options, 
to hedge a portion of our projected annual fuel 
requirements. Heating oil prices have a high correla- 
tion to aircraft fuel prices, making heating oil deriva- 
tives effective in offsetting changes in aircraft fuel 
prices. The following table shows our hedged position 
for the years ending December 31, 2001 and 2002 
based on instruments held at December 31, 2000 
and our projected annual aircraft fuel requirements: 
Average 
Percent Hedged 
Hedged Price 
2001 46% 54.86 
2002 25% 54.41 
The fair values of our heating oil derivative instru- 
rnents were $449 million at December 31, 2000 
and $495 million at December 31, 1999. A 10% 
decrease in the average annual price of heating oil 
will decrease these fair values by $125 million at 
December 31, 2000. 
During 2000, aircraft fuel accounted for 13% 
of our operating expenses. Based on our projected 
aircraft fuel consumption of 2.9 billion gallons for the 
twelve months ending December 31, 2001, a 10% 
rise in our projected jet fuel prices will increase our 
aircraft fuel expense by approximately $110 million 
for that period. This analysis includes the effects of 
fuel hedging instruments in place at December 31, 
2000. Based on our 2000 aircraft fuel consumption 
of 2.9 billion gallons, a 10% rise in our jet fuel prices 
would have increased our aircraft fuel expense by 
approximately $64 million in 2000. This analysis 
includes the effects of fuel hedging instruments in 
place during 2000. 
For additional information regarding our aircraft 
fuel price risk management program, see Note 3 of 
the Notes to the Consolidated Financial Statements. 
Equity Securities Risk 
We have equity interests in SkyWest, priceline, 
Equant and other ~ommerce companies. The esti- 
mated fair value and aggregate unrealized gain from 
these investments was $205 million and $92 million, 
respectively, at December 31, 2000. At December 31, 
1999, the estimated fair value of our equity interests 
totaled $595 million, with an aggregate unrealized 
gain of $267 million. The balance sheet risk associ- 
ated with these investments is the potential loss in 
fair value resulting from a decrease in the price of 
their common stock. Based on the market value of 
our equity investments at December 31, 2000, a 
10% decline in the price of their common stock will 
decrease fair value of these instruments by approxi- 
mately $21 million. 
Delta also has earnings risk associated with 
equity warrants and other similar rights in e-commerce 
companies, primarily priceline. The fair value of these 
warrants and rights, which totaled $11 million at 
December 31, 2000, is directly related to changes in 
the price of the underlying common stock. This expo- 
sure to market risk can create volatility in the fair 
value of the financial instruments held, which results 
in increased volatility in non-operating earnings under 
SFAS 133. Based on the market value of these 
investments at December 31, 2000, a 10% decline 
in the price of the underlying common stock will not 
have a material impact on the fair value of these 
investments or on our non-operating earnings. For 
additional information regarding our equity invest- 
ments, see Note 2 of the Notes to the Consolidated 
Financial Statements. 
Interest Rate Risk 
Our exposure to market risk due to changes 
in interest rates primarily relates to our long-term 
debt obligations and cash investment portfolio. 
Market risk associated with our long-term debt 
is the potential change in fair value resulting from 
a change in interest rates. A 10% decrease in aver- 
age annual interest rates would have increased 
the estimated fair value of our long-term debt by 
$338 million and $279 million at December 31, 
2000 and December 31, 1999, respectively. A 10% 
11 
 Management's Discussion and Analysis 
of Financial Condition and Results of Operations 
increase in average annual interest rates would not 
have had a material impact on our interest expense 
in 2000, due to the nature of our long-term debt. At 
December 31, 2000, 95% of our long-term debt obli- 
gations had fixed interest rates. 
Market risk associated with our cash portfolio is 
the potential change in earnings resulting from a 
change in interest rates. Based on our average bal- 
ance of cash and cash equivalents and short-term 
investments during 2000, a 10% decrease in average 
annual interest rates will not have a material impact 
on our interest income. 
We may use non-leveraged, over-the-counter 
financial instruments to manage our interest rate 
risk, provided that the notional amount of these 
transactions does not exceed 50% of our long-term 
debt. Delta had none of these instruments outstand- 
ing at December 31, 2000 and 1999. 
Foreign Currency Exchange Rate Risk 
Delta has revenues and expenses denominated 
in foreign currencies and, as a result, is exposed to 
foreign currency exchange rate risk. The majority of 
our exposure results from transactions denominated 
in the Euro, British Pound and Japanese Yen. To 
manage exchange rate risk, we net foreign currency 
revenues and expenses, to the extent practicable, 
to take advantage of natural offsets. We may use 
foreign currency option and forward contracts with 
maturities of up to 12 months to manage the remain- 
ing net exposure. We had none of these instruments 
outstanding at December 31, 2000. Based on our 
average annual net foreign currency positions during 
2000, a 10% adverse change in average annual for- 
eign currency exchange rates would not be material 
to our Consolidated Financial Statements. 
Other Matters 
COLLECTIVE BARGAINING MATTERS 
12 
Our relations with labor unions in the United 
States are governed by the Railway Labor Act. 
Under that statute, a collective bargaining agree- 
ment between an airline and a labor union does not 
expire, but instead becomes amendable as of a 
stated date. Either party may request the National 
Mediation Board (NMB) to appoint a federal mediator 
to participate in the negotiations. If no agreement is 
reached in mediation, the NMB may determine, at any 
time, that an impasse exists and offer binding arbitra- 
tion. If either party rejects binding arbitration, a 30-day 
"cooling off" period begins. At the end of this 30- 
DE LTA AI R LIN ES , INC . 
day period, the parties may engage in "self help, " 
unless the President of the United States appoints 
a Presidential Emergency Board (PEB) to investigate 
and report on the dispute. The appointment of a PEB 
maintains the "status quo" for an additional 60 days. 
If the parties do not reach agreement during this 
period, the parties may then engage in "self help." 
"Self help" includes, among other things, a strike by 
the union or the imposition of proposed changes to 
the collective bargaining agreement by the airline. 
Delta Pilots 
In September 1999, we began negotiations with 
the Air Line Pilots Association, International (ALPA), 
the union representing our approximately 9,800 pilots, 
on a new collective bargaining agreement to replace 
the existing pilot contract that became amendable in 
May 2000. In December 2000, the NMB appointed 
mediators to participate in the negotiations. We and 
ALPA have agreed to request the NMB to offer binding 
arbitration to the parties on March 1, 2001 if a tenta- 
tive agreement has not been reached. The NMB is not 
required to grant this request. As discussed above, if 
the NMB offers binding arbitration and either party 
rejects this offer, a 30-day "cooling off" period begins. 
On February 12, 2001, ALPA announced that 
Delta pilots had voted to authorize a strike. If a strike 
occurs, we plan to cease mainline operations during 
the strike. A strike or other job action by our pilots 
could have a material adverse impact on our financial 
condition and operations. The outcome of our negoti- 
ations with ALPA cannot presently be determined. 
On December 5, 2000, we filed a lawsuit against 
ALPA in the U. S. District Court in Atlanta to stop a 
concerted campaign by some pilots to pressure us in 
our collective bargaining negotiations with ALPA by 
refusing to request overtime (or additional) flying 
assignments, and by harassing pilots who submit 
such requests. The District Court denied our request 
for a preliminary injunction because the District 
Court believed there was insufficient evidence to link 
ALPA to the illegal job action by some Delta pilots. 
We appealed to the U. S. Court of Appeals for the 
Eleventh Circuit which, on January 18, 2001, ordered 
the District Court to issue an injunction against 
ALPA. The Court of Appeals held that unions have an 
obligation under the Railway Labor Act to prevent 
unlawful job actions by their members. ALPA filed a 
petition for a rehearing which the Court of Appeals 
denied on February 9, 2001. On February 14, 2001, 
the District Court issued an injunction against ALPA. 
 In December 2000, we canceled approximately 
8,700 flights, primarily due to the combination of 
severe winter weather and the pilot job action, 
which significantly reduced pilot availability for addi- 
tional flying. As a result of these flight cancellations, 
our operating revenues for the December 2000 quar- 
ter were approximately $80 million lower than we 
had anticipated. To minimize the impact of the pilot 
job action on customers, we have reduced our 
domestic schedule for the March 2001 quarter by 
2. 7% from the level we had planned. 
Other Labor Negotiations 
We are also in collective bargaining negotia- 
tions with the Transport Workers Union of America 
(TWU), which represents our approximately 110 pilot 
ground training instructors. Comair is in negotia- 
tions with ALPA and the International Brotherhood 
of Teamsters (IBT), which represent Comair's approxi- 
mately 1,300 pilots and 700 flight attendants, respec- 
tively. ASA is in negotiations with the Professional 
Airline Flight Control Association (PAFCA), which repre- 
sents ASA's approximately 30 flight dispatchers. 
The NMB appointed a mediator to participate in the 
DeltajTWU negotiations in January 2001; the Com air/ 
ALPA negotiations in July 1999; and the Comair/lBT 
negotiations in April 2000. A mediator has not yet 
been appointed to participate in the ASA/PAFCA 
negotiations. 
The outcome of these collective bargaining nego- 
tiations cannot presently be determined. A strike or 
other job action could have a material adverse impact 
on our financial condition and operations. 
COMPETITIVE ENVIRONMENT AND SEASONALITY 
The airline industry is highly competitive and is 
characterized by substantial price competition. If 
price reductions are not offset by increases in traffic 
or changes in the mix of traffic that improve our 
passenger mile yield, our operating results will be 
adversely affected. 
United Airlines has entered into an agreement 
to acquire US Airways. In addition, American Airlines 
has agreed to acquire substantially all the assets 
of Trans World Airlines and certain US Airways 
assets. These transactions are subject to regulatory 
approvals and other conditions. If these transactions 
occur, the competitive environment in the airline 
industry could significantly change because United 
and American would become much larger than other 
U.S airlines, including Delta. We are continuing to 
review our strategic alternatives. We cannot presently 
predict the impact that these pending transactions 
could have on us. 
Due to seasonal variations in the demand for air 
travel, operating results for an interim period are not 
necessarily indicative of operating results for an entire 
year. In general, demand for air travel is higher in the 
June and September quarters, particularly in interna- 
tional markets, because there is more vacation travel 
during these periods than during the remainder of the 
year. Demand is also affected by factors such as eco- 
nomic conditions, fare levels and weather conditions. 
ENVIRONMENTAL AND LEGAL CONTINGENCIES 
Delta is a defendant in legal actions relating to 
antitrust matters, employment practices, environmental 
issues and other matters concerning our business. 
Although the ultimate outcome of these matters can- 
not be predicted with certainty, we believe that the 
resolution of these actions is not likely to have a 
material adverse effect on our Consolidated Financial 
Statements. 
FORWARD-LOOKING INFORMATION 
Statements in this Annual Report which are not 
purely historical facts, including statements about our 
expectations, beliefs, intentions, or strategies for the 
future, may be "forward-looking statements" as 
defined in the Private Securities Litigation Reform Act 
of 1995. Forward-looking statements involve risks 
and uncertainties that could cause actual results 
to differ materially from historical experience or our 
present expectations. 
Factors that could cause these differences 
include, but are not limited to, general economic con- 
ditions; competitive factors in our industry, including 
mergers and acquisitions; outcomes of negotiations 
on collective bargaining agreements; changes in air- 
craft fuel prices; disruptions to operations due to 
adverse weather conditions, air traffic control-related 
constraints and labor issues; fluctuations in foreign 
currency exchange rates; governmental -actions; the 
willingness of customers to travel generally and with 
us specifically; and the outcome of our litigation. 
Caution should be taken not to place undue 
reliance on our forward-looking statements, which 
are current only as of the date of this Annual 
Report. More detailed information about these risks 
and uncertainties can be read in Delta's past and 
future Forms 10-K and 10-Q and certain Forms 8-K 
filed with the Securities and Exchange Commission. 
13 
 Consolidated Balance Sheets 
December 31, 2000 and 1999 D E LTA A I R L IN E S , IN C . 
ASSETS 2000 1999 
(In Millions) 
Current Assets: 
Cash and cash equivalents $ 1,364 $ 1,623 
Short-term investments 243 693 
Accounts receivable, net of allowance for 
uncollectible accounts of $31 at December 31, 2000 
and $39 at December 31, 1999 406 492 
Deferred income taxes 345 455 
Fuel hedge contracts, at market value 319 - 
Prepaid expenses and other 528 748 
Total current assets 3,205 4,011 
Property and Equipment: 
Flight equipment 17,081 14,444 
Less: Accumulated depreciation 4,849 4,580 
12,232 9,864 
Flight equipment under capital leases 484 506 
Less: Accumulated amortization 324 279 
160 227 
Ground property and equipment 4,371 4,008 
Less: Accumulated depreciation 2,313 2,186 
2,058 1,822 
Advance payments for equipment 390 537 
Total property and equipment, net 14,840 12,450 
Other Assets: 
Investments in debt and equity securities 339 528 
Investments in associated companies 222 112 
Cost in excess of net assets acquired, net of 
accumulated amortization of $196 at 
December 31, 2000 and $137 at December 31, 1999 2,149 2,060 
Operating rights and other intangibles, net of accumulated 
amortization of $236 at December 31, 2000 and 
$225atDecember31, 1999 102 108 
Other noncurrent assets 1,074 673 
Total other assets 3,886 3,481 
Total assets $21,931 $19,942 
14 
 LIABILITIES AND SHAREOWNERS' EQUITY 2000 1999 
(In Millions, Except Share Data) 
Current Liabilities: 
Current maturities of long-term debt $ 62 $ 670 
Current obligations under capital leases 40 42 
Accounts payable and miscellaneous accrued liabilities 2,248 1,974 
Air traffic liability 1,442 1,491 
Accrued salaries and related benefits 1,170 1,070 
Accrued rent 283 267 
Total current liabilities 5,245 5,514 
Noncurrent Liabilities: 
Long-term debt 5,797 4,144 
Capital leases 99 159 
Postretirement benefits 2,026 1,916 
Accrued rent 721 720 
Deferred income taxes 1,220 903 
Other 388 468 
Total noncurrent liabilities 10,251 8,310 
Deferred Credits: 
Deferred gains on sale and leaseback transactions 568 617 
Manufacturers' and other credits 290 374 
Total deferred credits 858 991 
Commitments and Contingencies {Notes 2, 3, 4, 7, 9 and 10) 
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 6,405,563 shares at December 31, 2000 
and 6,498,921 shares at December 31, 1999 460 468 
Unearned compensation under employee stock ownership plan (226) (249) 
Total Employee Stock Ownership Plan Preferred Stock 234 219 
Shareowners' Equity: 
Common stock, $1.50 par value; 
450,000,000 shares authorized; 180,764,057 shares 
issued at December 31, 2000 and 180,034,631 shares issued 
at December 31, 1999 271 270 
Additional paid-in capital 3,264 3,222 
Retained earnings 4,176 3,377 
Accumulated other comprehensive income 360 266 
Treasury stock at cost, 57,750,685 shares at December 31, 2000 
and 47,141,161 shares at December 31, 1999 {2,728) (2,227) 
Total shareowners' equity 5,343 4,908 
Total liabilities and shareowners' equity $21,931 $19,942 
The accompanying notes are an integral part of these consolidated financial statements. 
15 
 Consolidated Statements of Income 
For the years ended December 31, 2000, 1999 and 1998 D E LTA A I R LIN E S , I NC . 
2000 1999 1998 
(In Millions, Except Per Share Data) 
Operating Revenues: 
Passenger $15,657 $13,949 $13,428 
Cargo 583 561 569 
Other, net 501 373 315 
Total operating revenues 16,741 14,883 14,312 
Operating Expenses: 
Salaries and related costs 5,971 5,194 4,894 
Aircraft fuel 1,969 1,421 1,379 
Depreciation and amortization 1,187 1,057 902 
Other selling expenses 688 626 632 
Passenger commissions 661 784 939 
Contracted services 966 824 729 
Landing fees and other rents 771 723 670 
Aircraft rent 741 622 569 
Aircraft maintenance materials and outside repairs 723 594 526 
Passenger service 470 498 491 
Asset writedowns and other special charges 108 469 - 
Other 849 753 778 
Total operating expenses 15,104 13,565 12,509 
Operating Income 1,637 1,318 1,803 
Other Income (Expense): 
Interest income (expense}, net (271) (126) (66) 
Gains from the sale of investments 301 927 - 
Miscellaneous income (expense), net 41 (26) 39 
Fair value adjustments of SFAS 133 derivatives (159) - - 
Total other income (expense) (88) 775 (27) 
Income Before Income Taxes and 
Cumulative Effect of Changes in Accounting Principles 1,549 2,093 1,776 
Income Taxes Provided (621) (831) (698) 
Net Income Before Cumulative Effect of 
Changes in Accounting Principles, Net of Tax 928 1,262 1,078 
Cumulative Effect of Changes in Accounting Principles, 
Net of Tax of $64 million in 2000 and $35 million in 1999 (100) (54) - 
Net Income 828 1,208 1,078 
Preferred Stock Dividends (13) (12) (11) 
Net Income Available to Common Shareowners $ 815 $ 1,196 $ 1,067 
Basic Earnings Per Share Before Cumulative Effect of 
Changes in Accounting Principles $ 7.39 $ 9.05 $ 7.22 
Basic Earnings Per Share $ 6.58 $ 8.66 $ 7.22 
Diluted Earnings Per Share Before Cumulative Effect of 
Changes in Accounting Principles $ 7.05 $ 8.52 $ 6.87 
Diluted Earnings Per Share $ 6.28 $ 8.15 $ 6.87 
The accompanying notes are an integral part of these consolidated financial statements. 
16 
 Consolidated Statements of Cash Flows 
for the years ended December 31, 2000, 1999 and 1998 DELTA AIR LIN ES , INC. 
2000 1999 1998 
(In Millions) 
Cash Flows From Operating Activities: 
Net income $ 828 $1,208 $1,078 
Adjustments to reconcile net income to cash 
provided by operating activities: 
Cumulative effect of change in accounting principle 100 54 - 
Asset writedowns and other special charges 108 469 - 
Depreciation and amortization 1,187 1,057 902 
Deferred income taxes 396 321 309 
Fair value adjustments of SFAS 133 derivatives 159 - - 
Pension, postretirement and postemployment expense 
in excess of (less than) payments (103) 33 101 
Dividends in excess of (less than) equity income (28) 48 (57) 
Gains on the sale of investments (301) (927) - 
Income tax benefit from exercise of stock options 5 21 72 
Changes in certain current assets and liabilities: 
Decrease (increase) in accounts receivable 86 310 (14) 
Decrease (increase) in prepaid expenses and 
other current assets 92 (186) (102) 
(Decrease) increase in air traffic liability (49) 73 185 
Increase in other payables and accrued expenses 373 153 134 
Other, net 45 13 118 
Net cash provided by operating activities 2,898 2,647 2,726 
Cash Flows From Investing Activities: 
Property and equipment additions: 
Flight equipment, including advance payments (3,426) (2,497) (2,090) 
Ground property and equipment (634) (558) (633) 
Decrease (increase) in short-term investments, net 456 (367) 365 
Proceeds from sale of flight equipment 384 215 17 
Proceeds from sale of investments 73 1,167 - 
Acquisitions of companies, net of cash acquired (232) (1,922) - 
Other, net (17) - - 
Net cash used in investing activities (3,396) (3,962) (2,341) 
Cash Flows From Financing Activities: 
Payments on long-term debt and capital 
lease obligations (853) (1,927) (373) 
Payments on notes payable, net (119) (250) (27) 
Prepayment of long-term lease obligations (215) - - 
Cash dividends (40) (43) (43) 
Issuance of long-term obligations 1,867 4,496 125 
Issuance of short-term obligations 68 515 277 
Issuance of common stock 33 104 168 
Repurchase of common stock (502) (625) (694) 
Net cash provided by (used in) financing activities 239 2,270 (567) 
Net Increase (Decrease) in Cash and Cash Equivalents (259) 955 (182) 
Cash and cash equivalents at beginning of year 1,623 668 850 
Cash and cash equivalents at end of year $1,364 $1,623 $ 668 
Supplemental disclosure of cash paid for: 
Interest, net of amounts capitalized $ 410 $ 185 $ 139 
Income taxes 131 315 282 
The accompanying notes are an integral part of these consolidated financial statements. 
17 
 Consolidated Statements of Shareowners' Equity 
For the years ended December 31, 2000, 1999 and 1998 DELTA AIR L I N ES , INC . 
Accumulated 
Additional Other 
Common Paid-In Retained Comprehensive Treasury 
(In Millions, Except Share Data) Stock Capital Earnings Income Stock Total 
Balance at December 31, 1997 $259 $2,851 $1,141 $ 67 $ (911) $3,407 
Comprehensive income: 
Net income - - 1,078 - - 1,078 
Other comprehensive income - - - 58 - 58 
Total comprehensive income (See Note 16) 1,136 
Dividends on common stock ($0.10 per share) - - (15) - - (15) 
Dividends on Series B ESOP Convertible 
Preferred Stock allocated shares - - (11) - - (11) 
Issuance of 4,880,742 shares of common stock 
under dividend reinvestment and stock purchase 
plan and stock options ($34.45 per share*) 7 161 - - - 168 
Repurchase of 12,533,469 common shares 
($55.36 per share*) - - - - (694) (694) 
Income tax benefit from exercise of stock options - 72 - - - 72 
Transfer of 129,334 shares of common stock 
from treasury under stock incentive plan 
($42.07 per share*) - - - - 5 5 
Other - 6 3 - - 9 
Balance at December 31, 1998 266 3,090 2,196 125 (1,600) 4,077 
Comprehensive income: 
Net income - - 1,208 - - 1,208 
Other comprehensive income - - - 141 - 141 
Total comprehensive income (See Note 16) 1,349 
Dividends on common stock ($0.10 per share) - - (14) - - (14) 
Dividends on Series B ESOP Convertible 
Preferred Stock allocated shares - - (12) - - (12) 
Issuance of 2,381,204 shares of common stock 
under dividend reinvestment and stock purchase 
plan and stock options ($43.94 per share*) 4 100 - - - 104 
Repurchase of 10,971,166 common shares 
($56.96 per share*) - - - - (625) (625) 
Income tax benefit from exercise of stock options - 21 - - - 21 
Transfer of 30,830 shares of common stock 
from treasury under stock incentive plan 
($59.37 per share*) - - - - (2) (2) 
Other - 11 (1) - - 10 
Balance at December 31, 1999 270 3,222 3,377 266 {2,227) 4,908 
Comprehensive income: 
Net income - - 828 - - 828 
Other comprehensive income - - - 94 - 94 
Total comprehensive income (See Note 16) 922 
Dividends on common stock ($0.10 per share) - - (12) - - (12) 
Dividends on Series B ESOP Convertible 
Preferred Stock allocated shares - - (13) - - (13) 
Issuance of 729,426 shares of common stock 
under dividend reinvestment and stock purchase 
plan and stock options ($44.86 per share*) 1 32 - - - 33 
Repurchase of 10,626,104 common shares 
($47.26 per share*) - - - - (502) (502) 
Income tax benefit from exercise of stock options - 5 - - - 5 
Transfers and forfeitures of 16,580 shares of 
common stock under stock incentive plan 
($52.61 per share*) - - - - 1 1 
Other - 5 (4) - - 1 
Balance at December 31, 2000 $271 $3,264 $4,176 $360 $(2,728) $5,343 
* Average price per share. 
The accompanying notes are an integral part of these consolidated financial statements. 
18 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
1. summary of Significant Accounting Policies 
Basis of Presentation- Delta Air Lines, Inc. (a 
Delaware corporation) is a major air carrier that 
provides air transportation for passengers and 
freight throughout the United States and around the 
world. Our consolidated financial statements include 
the accounts of Delta Air Lines, Inc. and our majority- 
owned subsidiaries, Comair Holdings, Inc. (Comair 
Holdings) and ASA Holdings, Inc. (ASA Holdings), col- 
lectively referred to as Delta. Comair Holdings is the 
parent of Comair, Inc. (Comair) and ASA Holdings is 
the parent of Atlantic Southeast Airlines, Inc. (ASA). 
We have eliminated all intercompany transactions. 
The results of operations of companies purchased 
are included from the date of acquisition. These con- 
solidated financial statements have been prepared 
in accordance with accounting principles generally 
accepted in the United States. 
Change in Year End- Effective December 31, 
2000, we changed our year end from June 30 
to December 31. Accordingly, this Annual Report 
includes audited Consolidated Balance Sheets as 
of December 31, 2000 and 1999, and audited 
Consolidated Statements of Income, Cash Flows 
and Shareowners' Equity for the years ended 
December 31, 2000, 1999 and 1998. 
Use of Estimates-We are required to make estimates 
and assumptions when preparing our financial state- 
ments in conformity with accounting principles gener- 
ally accepted in the United States. These estimates 
and assumptions affect the amounts reported in our 
financial statements and the accompanying notes. 
Actual results could differ from those estimates. 
Cash and Cash Equivalents- We classify short-term, 
highly liquid investments with original maturities of 
three months or less as cash and cash equivalents. 
These investments are stated at cost, which approxi- 
mates fair value. 
Passenger and Cargo Revenues- We record sales of 
passenger tickets and cargo services as air traffic lia- 
bility on our Consolidated Balance Sheets. Passenger 
and cargo revenues are recognized, and the related 
air traffic liability is reduced, when we provide the 
transportation. We periodically evaluate the estimated 
air traffic liability. Any resulting adjustments, which 
DE LTA AIR LIN ES , INC. 
can be significant, are included in the Consolidated 
Statements of Income in the period that the evalua- 
tions are completed. 
Long-Lived Assets- We record our property and 
equipment at cost and depreciate these assets on 
a straight-line basis to their estimated residual val- 
ues over their respective estimated useful life. The 
estimated useful lives for major asset classifications 
are as follows: 
Asset Classification 
Owned flight equipment 
Flight equipment under capital lease 
Ground property and equipment 
Leasehold rights and landing slots 
Estimated 
Useful Life 
15-25 years 
Lease term 
3-30 years 
Lease term 
Residual values for flight equipment range from 
5%-40% of cost. Purchased international route author- 
ities are amortized over the lives of the authorities as 
determined by their expiration dates. Permanent route 
authorities with no stated expiration dates are amor- 
tized over 40 years. Our cost in excess of net assets 
acquired (goodwill) is amortized over 40 years and is 
primarily related to our acquisitions of Comair Holdings 
and ASA Holdings in 1999 and Western Air Lines, Inc. 
in 1986. 
Interest Capitalized-We capitalize interest paid on 
advance payments used to acquire new aircraft and to 
construct ground facilities as an additional cost of the 
related assets. Interest is capitalized at our weighted 
average interest rate on long-term debt or, if applica- 
ble, the interest rate related to specific borrowings. 
Interest capitalization ends when the property or 
equipment is ready for service or its intended use. 
Measurement of Impairment-In accordance with 
Statement of Financial Accounting Standards (SFAS) 
121, "Accounting for the Impairment of Long-Lived 
Assets and for Long-Lived Assets to be Disposed Of," 
we record impairment losses on long-lived assets 
used in operations, goodwill and other intangible 
assets when events and circumstances indicate the 
assets may be impaired and the undiscounted cash 
flows estimated to be generated by those assets are 
less than their carrying amounts. If an impairment 
occurs, the amount of the impairment recognized is 
determined by estimating the fair value of the assets 
and recording a provision for loss if the carrying value 
is greater than the fair value. 
19 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
20 
Investments in Associated Companies-We use the 
equity method to account for our 40% ownership inter- 
est in WORLDSPAN, L.P. , a computer reservations 
system. Our equity earnings from this investment 
totaled $59 million in 2000, $30 million in 1999 and 
$15 million in 1998. We accounted for our invest- 
ments in Comair Holdings and ASA Holdings under 
the equity method until November 22, 1999 and 
April 1, 1999, respectively. 
Frequent Ryer Program-Delta records an estimated 
liability for the incremental cost associated with 
providing free transportation under its SkyMiles 
frequent flyer program when a free travel award is 
earned. The liability is included in accounts payable 
and miscellaneous accrued liabilities and is adjusted 
periodically based on awards earned, awards redeemed 
and changes in the SkyMiles program. 
Delta also sells mileage credits in the SkyMiles 
program to participating partners such as credit card 
companies, hotels and car rental agencies. For infor- 
mation regarding our accounting for these mileage 
credits, see Note 5. 
Deferred Gains on Sale and Leaseback Transactions- 
We amortize deferred gains on the sale and lease- 
back 'of property and equipment under operating 
leases over the lives of these leases. The gain amor- 
tization is reflected as a reduction in rent expense. 
Gains on the sale and leaseback of property and 
equipment under capital leases reduce the carrying 
value of the related assets. 
Manufacturers' Credits-We periodically receive 
credits in connection with the acquisition of air- 
craft and engines. These credits are deferred until 
the aircraft and engines are delivered, then applied 
on a pro rata basis as a reduction to the cost of 
the related equipment. 
Advertising Costs-We expense advertising costs 
as other selling expenses in the year incurred. 
Advertising expense in 2000, 1999 and 1998 
was $151 million, $143 million and $122 million, 
respectively. 
Foreign Currency Remeasurement-We generally 
remeasure assets and liabilities denominated in for- 
eign currencies using exchange rates in effect on 
the balance sheet date. Revenues and expenses 
denominated in foreign currencies are generally 
remeasured using average exchange rates for the 
periods presented. We recognize the resulting for- 
eign exchange gains and losses as a component of 
DELTA A I R L IN ES , INC . 
miscellaneous income (expense). Fixed assets and 
the related depreciation or amortization charges are 
recorded at the exchange rates in effect on the date 
we acquired the assets. 
Stock-Based Compensation-Delta accounts for 
stock-based compensation in accordance with 
Accounting Principles Board Opinion (APB) 25, 
"Accounting for Stock Issued to Employees." Under 
APB 25, we do not recognize compensation expense 
for a stock option grant if the exercise price is equal 
to or greater than the fair market value of our common 
stock on the grant date (see Note 15). 
Fair Value of Financial Instruments-The fair 
values of our cash equivalents and short-term 
investments approximate their cost. The estimated 
fair values of other financial instruments, including 
debt and risk management instruments, have been 
determined using available market information and 
valuation methodologies, primarily discounted cash 
flow analysis. 
New Accounting Standards-During 2000, we 
adopted SFAS 133, "Accounting for Derivative 
Instruments and Hedging Activities, " as amended 
(see Note 3). In September 2000, SFAS 140, 
"Accounting for Transfers and Servicing of Financial 
Assets and Extinguishments of Liabilities" was 
issued. The adoption of SFAS 140 does not currently  
have an impact on our consolidated financial state- 
ments (see Note 17). During 1999, we adopted Staff 
Accounting Bulletin (SAB) 101, "Revenue Recognition 
in Financial Statements" (see Note 5) and Statement 
of Position (SOP) 98-1, "Accounting for Costs of 
Computer Software Developed or Obtained for Internal 
Use. " The adoption of SOP 98-1 did not have a 
material impact on our Consolidated Financial 
Statements. 
2. Marketable and Other Equity Securities 
Marketable Equity Securities 
Delta's equity' investment in SkyWest, Inc. is 
classified as an available-for-sale equity security 
under SFAS 115, "Accounting for Certain Investments 
in Debt and Equity Securities. " The fair value of this 
investment was $179 million at December 31, 2000 
and $87 million at December 31, 1999. Our cost 
basis of this investment is $14 million. 
 During 1999, we sold our equity interests in 
Singapore Airlines and SAirGroup, recognizing pretax 
gains of $137 million and $29 million, respectively. 
Accumulated other comprehensive income 
includes the aggregate unrealized gains from our 
outstanding investments, net of the related deferred 
tax provision. 
priceline.com Inc. 
During 1998, Delta entered into an agreement 
with priceline.com Incorporated (priceline) allowing 
ticket inventory provided by Delta to be sold through 
priceline's Internet-based e-commerce system. In 
consideration for this agreement, we received a war- 
rant to purchase up to 18.6 million shares of price- 
line common stock for $0.93 per share. We did not 
recognize the value of the warrant in our consoli- 
dated financial statements in 1999 or 1998 because 
its estimated fair value was not material. The war- 
rant became fully exercisable on July 25, 1999. 
We exercised the warrant in 1999. As a result, we 
acquired 18.3 million shares of priceline common 
stock. We sold 11.1 million of these shares for a pre- 
tax cash gain of $711 million in 1999, and 1.2 million 
of these shares for a pretax cash gain of $73 million 
in 2000. 
On November 17, 1999, Delta and priceline 
amended their original agreement. As a result of the 
amendment, Delta received (1) the right to exchange 
six million shares of priceline common stock for 
six million shares of priceline convertible preferred 
stock (exchange right); and (2) a new warrant to 
acquire up to 5.5 million shares of priceline common 
stock for $56.63 per share (new warrant). 
Based on an independent third party appraisal, 
the total fair value of the new warrant on the date 
received was determined to be $61 million. This 
amount is being recognized in income ratably over a 
three year period beginning November 17, 1999. 
Under our agreement with priceline, we are required 
to provide priceline access to unpublished fares. 
On June 30, 2000, we exercised our exchange 
right in full, receiving six million shares of priceline 
convertible preferred stock. These shares (1) have 
a liquidation preference of $59.93 per share plus 
accrued and unpaid dividends; (2) are convertible 
into shares of priceline common stock on a one-for- 
one basis; (3) bear a dividend of 8% per year, payable 
in shares of priceline common stock; (4) may be 
redeemed by priceline after April 1, 2003 for $59.93 
per share plus accrued and unpaid dividends; and 
(5) are subject to mandatory redemption on April 1, 
2010. As a result of the exchange, we recognized a 
pretax non-cash gain of $228 million in 2000. On 
October 1, 2000, Delta received 549,764 shares 
of priceline common stock as a dividend on the 
preferred stock. 
On November 2, 2000, Delta and priceline 
amended the new warrant (1) to reduce the number 
of shares underlying the new warrant from 5.5 mil- 
lion to 4. 7 million; (2) to reduce Delta's per share 
purchase price for those shares from $56.63 to 
$4. 72; and (3) to provide that Delta may not sell 
or otherwise transfer more than 50% of the new war- 
rant or the underlying shares until November 2, 2001. 
The new warrant became exercisable in full on 
January 1, 2001, and expires on November 17, 
2004. The amendment of the new warrant did 
not have a material impact on our Consolidated 
Financial Statements. 
At December 31, 2000, Delta owned six million 
shares of priceline convertible preferred stock, a war- 
rant to purchase up to 4. 7 million shares of priceline 
common stock for $4. 72 per share and 589,831 
shares of priceline common stock. The convertible 
preferred stock, the new warrant and the shares of 
priceline common stock underlying these securities 
are not registered under the Securities Act of 1933, 
but we have certain demand and piggyback registra- 
tion rights relating to the underlying shares of price- 
line common stock. 
See Note 3 for additional information regard- 
ing the accounting for our priceline investment. 
Equant, N. V. 
During 1999, we sold a portion of our equity 
interest in Equant, realizing a pretax cash gain of 
$50 million. At December 31, 2000, we owned 
540,852 depository certificates that are convertible, 
subject to certain conditions, into common stock of 
Equant. Our equity interest is recorded at its nominal 
cost on our Consolidated Balance Sheets. The 
shares of Equant common stock underlying these 
certificates had an estimated fair market value of 
$14 million and $61 million at December 31, 2000 
and 1999, respectively. 
3. Adoption of SFAS 133 
On July 1, 2000, we adopted SFAS 133, as 
amended. SFAS 133 requires us to record on the 
balance sheet all derivative instruments at fair 
value and to recognize certain non-cash changes 
in these fair values in the income statement. 
SFAS 133 impacts the accounting for our fuel 
hedging program and our holdings of equity war- 
rants and other similar rights in other companies. 
21 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
The impact of adopting SFAS 133 on our 
Consolidated Statements of Income is summarized 
as follows (in millions): 
22 
Write-off of 
fuel hedge 
contract premiums 
Ineffective 
portion of fuel 
hedge contracts 
Fair value 
adjustment of 
equity rights 
Total pretax 
Total after tax 
Fuel Hedging 
Income (Expense) 
For the 
Six Months Ended 
December 31, 2000 
$ - 
5 
(164) 
(159) 
$ (97) 
Cumulative 
Effect at 
July 1, 2000 
$(143) 
16 
(37) 
(164) 
$(100) 
Total 
$(143) 
21 
(201) 
(323) 
$(197) 
Our results of operations can be significantly 
impacted by changes in the price of aircraft fuel. To 
manage this risk, we periodically purchase forwards, 
options and other similar non-leveraged derivative 
instruments, which may have maturities of up to 36 
months. Because there is not a readily available mar- 
ket for derivatives in aircraft fuel, we use heating oil 
contracts to manage our exposure to the movement 
of aircraft fuel prices. The changes in the market 
value of our heating oil contracts (also referred to as 
"fuel hedge contracts ") have a high correlation to 
changes in aircraft fuel prices and therefore, qualify 
as cash flow hedges under SFAS 133. We do not enter 
into fuel hedge contracts for speculative purposes. 
Upon adoption of SFAS 133 on July 1, 2000, we 
recorded the fair market value of our fuel hedge con- 
tracts on our Consolidated Balance Sheets. On an 
ongoing basis, we adjust our balance sheet to reflect 
the current fair market value of our fuel hedge con- 
tracts. The related gains or losses on these contracts 
are deferred in shareowners' equity (as a component 
of other comprehensive income). These deferred 
gains and losses are recognized in income in the 
period in which the related aircraft fuel purchases 
being hedged are consumed and recognized in 
expense. However, to the extent that the change in 
the value of the fuel hedge contract does not perfectly 
offset the change in the value of the aircraft fuel 
purchase being hedged, the ineffective portion of 
the hedge is immediately recognized in income. In cal- 
culating the ineffective portion of our hedge per- 
formance under SFAS 133, we include all changes 
DELTA AIR LIN ES , INC . 
in the time value component related to any option 
premiums paid and recognize the amount in income 
during the life of the contract. The ineffective por- 
tion of the hedge returns, including those related 
to time value, are included in our Consolidated 
Statements of Income as fair value adjustments of 
SFAS 133 derivatives. At December 31, 2000, our 
fuel hedge contracts had an estimated short-term 
value of $319 million and an estimated long-term 
fair value of $130 million, with unrealized gains of 
$268 million, net of tax, recorded in accumulated 
other comprehensive income. 
Equity Warrants and Other Similar Rights 
We own equity warrants and other similar 
rights in certain companies, primarily priceline. At 
December 31, 2000, our equity warrant and other 
similar rights in priceline consisted of the following: 
(1) an option to convert our six million shares of 
priceline preferred stock into priceline common stock 
on a one-for-one basis; and (2) a warrant which gives 
us the right to purchase up to 4. 7 million shares 
of priceline common stock at $4. 72 per share. At 
December 31, 2000, the fair market value of our 
priceline warrant was $0.8 million. 
SFAS 133 requires us to account for the value of 
the option to convert priceline preferred stock into 
priceline common stock as a stand-alone equity right, 
and to record any change in fair value in current 
period earnings. At December 31, 2000, the value of 
our priceline preferred stock was $117 million, includ- 
ing its conversion feature which had an estimated 
fair value of $0.2 million. The value of the priceline 
preferred stock, excluding the conversion feature, is 
accounted for as an available-for-sale debt security 
and is recorded at its amortized cost in investments 
in equity securities on our Consolidated Balance 
Sheets in accordance with SFAS 115. The change in 
market values of the equity conversion feature of our 
priceline preferred stock, our priceline warrant and 
our warrants in other e-commerce companies is 
recorded in our Consolidated Statements of Income 
as fair value adjustments of SFAS 133 derivatives. 
For additional information regarding our investment 
in priceline, see Note 2. 
4. Risk Management 
Interest Rate Risk 
Our exposure to market risk due to changes 
in interest rates primarily relates to our long-term 
debt obligations and cash portfolio. 
 Market risk associated with our long-term debt is 
the potential change in fair value resulting from a 
change in interest rates. Market risk associated with 
our cash portfolio is the potential change in our earn- 
ings resulting from a change in interest rates. 
From time to time, we may enter into interest 
rate hedging transactions, provided that the notional 
amount of these transactions does not exceed 
50% of our long-term debt. We did not have any 
interest rate hedging contracts at December 31, 
2000 and 1999. 
Foreign Currency Exchange Risk Management 
Delta is subject to foreign currency exchange risk 
because we have revenues and expenses denomi- 
nated in foreign currencies, primarily the Euro, the 
British Pound and the Japanese Yen. To manage 
exchange rate risk, we net foreign currency revenues 
and expenses, to the extent practicable. From time 
to time, we may also enter into foreign currency 
options and forward contracts with maturities of up 
to 12 months. We did not have any foreign currency 
hedging contracts at December 31, 2000. The esti- 
mated fair value of our foreign currency hedging con- 
tracts was not material at December 31, 1999. We 
do not enter into foreign currency hedging contracts 
for speculative purposes. 
Credit Risk Management 
To manage credit risk associated with our fuel 
price and foreign currency exchange risk manage- 
ment programs, we select counterparties based on 
their credit ratings and limit our exposure to any one 
counterparty under defined guidelines. We also moni- 
tor the market position of these programs and our 
relative market position with each counterparty. The 
credit exposure related to these programs was not 
significant at December 31, 2000 and 1999. 
Our accounts receivable are generated largely 
from the sale of passenger airline tickets and cargo 
transportation services to customers who are eco- 
nomically and geographically dispersed. In addition, 
our accounts receivable are generally short-term in 
duration. Therefore, we believe we have no signifi- 
cant concentration of credit risk. 
At December 31, 2000, we held six million 
shares of priceline preferred stock, which are subject 
to credit risk. See Note 2 for a further description 
of our priceline preferred stock. 
Fuel Price Risk Management 
See Note 3 for information regarding our fuel 
hedging program. 
5. Adoption of SAB 101 
On January 1, 1999, Delta adopted SAB 101, 
which changed the method of accounting for the 
sale of mileage credits in the SkyMiles program 
to participating partners such as credit card compa- 
nies, hotels and car rental agencies. Under the new 
accounting method, a portion of the revenue from 
the sale of mileage credits is deferred until the 
credits are redeemed for travel. The majority of the 
revenue from the sale of mileage credits is recorded 
in passenger revenue, and the remaining portion 
is recorded as an offset to expense. Previously, 
the revenue from the sale of mileage credits was 
recorded in other revenue in the period in which 
the credits were sold. 
Our adoption of SAB 101 resulted in a cumula- 
tive effect charge of $54 million, net of tax ($89 mil- 
lion, pretax). SAB 101 decreased operating income 
by $13 million, net of tax ($21 million, pretax), and 
$23 million, net of tax ($38 million, pretax), for 2000 
and 1999, respectively. 
Unaudited pro forma results assuming retroac- 
tive application of the change in accounting principle 
for 2000, 1999 and 1998 are shown below: 
(In Millions, 
except for per share data): 
Net income before 
cumulative effect 
of change in 
accounting principle 
Basic EPS 
Diluted EPS 
2000 
$ 928 
$7.39 
$7.05 . 
1999 
$1,262 
$ 9.05 
$ 8.52 
1998 
$1,069 
$ 7.16 
$ 6.81 
For comparative purposes, our unaudited 
proforma results excluding application of the change 
in accounting principle for 2000, 1999 and 1998 
are shown below: 
(In Millions, 
except for per share data): 
Net income before 
cumulative effect 
of change in 
accounting principle 
Basic EPS 
Diluted EPS 
2000 
$ 941 
$7.50 
$7.15 
1999 
$1,285 
$ 9.22 
$ 8.68 
1998 
$1,078 
$ 7.22 
$ 6.87 
23 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
6. Income Taxes 
Deferred income taxes reflect the net tax effect of 
timing differences between the carrying amounts of 
assets and liabilities for financial reporting purposes 
and for income tax purposes. The table below shows 
significant components of our deferred tax assets and 
liabilities at December 31, 2000 and 1999: 
(In Millions) 2000 1999 
Deferred Tax Assets: 
Postretirement benefits $ 821 $ 773 
Other employee benefits 304 338 
Gains on sale and 
leaseback transactions 206 286 
Rent expense 221 216 
Spare parts repair expense 164 160 
Other 361 324 
Total deferred tax assets $2,077 $2,097 
Deferred Tax Liabilities: 
Depreciation and amortization $2,337 $2,083 
Unrealized gains on 
marketable securities 
and fuel hedge contracts 230 170 
Other 385 292 
Total deferred tax liabilities $2,952 $2,545 
7. Long-Term Debt 
DE L TA AI R L IN ES , IN C . 
Income taxes provided in 2000, 1999 and 1998 
consisted of: 
(In Millions) 2000 1999 1998 
Current taxes $(230) $(515) $(393) 
Deferred taxes (396) (321) (309) 
Tax benefit of dividends 
on allocated Series B 
ESOP Convertible 
Preferred Stock 5 5 4 
Income taxes provided $(621) $(831) $(698) 
The following table presents the principal reasons 
for the difference between the effective tax rate and 
the United States federal statutory income tax rate for 
2000, 1999 and 1998: 
2000 1999 1998 
U.S. federal statutory 
income tax rate 35.0% 35.0% 35.0% 
State taxes, net of federal 
income tax effect 3.4 3.7 3.4 
Meals and entertainment 1.1 0.8 0.8 
Amortization 1.0 0.3 0.2 
Municipal bond interest (0.2) 
Other, net (0.2) (0.1) (0.1) 
Effective income tax rate 40.1% 39.7% 39.3% 
The following table summarizes our long-term debt, including current maturities, at December 31, 2000 and 1999: 
(In Millions) 
Secured 
7. 779% Equipment Notes due November 18, 2005 
7 .379% Equipment Notes due in installments through May 18, 2010 
7.92% Equipment Notes due November 18, 2010 
7.57% Equipment Notes due November 18, 2010 
Unsecured 
1999 Bank Credit Agreement, repaid November 2000 
8.10% Series C Guaranteed Serial ESOP Notes, 
due in installments between 2002 and 2009 
6.65% Medium-Term Notes, Series C, due March 15, 2004 
7. 7% Notes due December 15, 2005 
7.9% Notes due December 15, 2009 
9. 75% Debentures due May 15, 2021 
Development Authority of Clayton County, loan agreement, 
Series 2000A $65 million due on June 1, 2029, 4. 7% interest; Series 20008 $116 million due on 
May 1, 2035, 4.8% interest; and Series 2000C $120 million due on May 1, 2035, 4.8% interest* 
8.3% Notes due December 15, 2029 
8.125% Notes due July 1, 2039 
Other debt due 2001 to 2022; interest rates of 5.30% to 10.375% 
Total 
Less: Current maturities 
Total long-term debt 
2000 
$ 239 
341 
182 
738 
290 
300 
500 
499 
106 
301 
1,000 
538 
825 
5,859 
62 
$5,797 
Our secured debt is secured by first mortgage liens on a total of 44 Boeing aircraft delivered new to Delta from January 1999 through October 2000. 
These aircraft had an aggregate net book value of approximately $1. 7 billion at December 31, 2000. 
The 8.125% Notes due 2039 are redeemable by Delta, in whole or in part, at par on or after July 1 , 2004. 
* Our variable interest rate long-term debt is shown using interest rates in effect at December 31, 2000. 
1999 
$ 
500 
290 
300 
500 
500 
158 
1,000 
538 
1,028 
4,814 
670 
$4,144 
The fair value of our debt was $5.8 billion and $4. 7 billion at December 31, 2000 and 1999, respectively. 
24 
 1997 Bank Credit Agreement 
Under our 1997 Bank Credit Agreement with a 
group of banks, we may borrow up to $1.25 billion on 
an unsecured and revolving basis until May 1, 2002, 
subject to our compliance with certain conditions. We 
may use up to $700 million of this facility for the 
issuance of letters of credit. The interest rate under 
this facility is, at our option, LIBOR or the prime rate, 
plus a margin that is dependent on Delta's long-term 
senior unsecured debt ratings. 
The 1997 Bank Credit Agreement contains nega- 
tive covenants that place certain limits on our ability 
to secure property or assets, to incur or guarantee 
debt, and to enter into flight equipment leases. It 
also provides that, upon the occurrence of a change 
in control of Delta: (1) the banks' obligation to 
extend credit terminates; (2) any amounts outstand- 
ing under the 1997 Bank Credit Agreement become 
due and payable; and (3) Delta must deposit cash 
collateral with the banks in an amount equal to all 
letters of credit outstanding under that agreement. 
At December 31, 2000, there were no borrowings 
or letters of credit outstanding under the 1997 Bank 
Credit Agreement. 
Series C ESOP Notes 
At December 31, 2000, there were outstanding 
$290 million principal amount of the Delta Family- 
Care Savings Plan's Series C Guaranteed Serial ESOP 
Notes (Series C ESOP Notes). The notes, .which are 
payable in installments between 2002 and 2009, are 
guaranteed by Delta. We are required to purchase the 
Series C ESOP Notes at the option of the noteholders 
in certain circumstances if the notes are not rated at 
least A3 by Moody's and A- by Standard & Poor's 
(required ratings). Our purchase price would be equal 
to the principal amount of the Series C ESOP Notes 
being purchased plus accrued interest and, if applica- 
ble, a make whole premium amount. 
The holders of the Series C ESOP Notes are 
presently entitled to the benefits of an unconditional, 
direct-pay letter of credit issued by Bayerische Hypo-Und 
Vereinsbank AG under a credit agreement between 
Delta and a group of banks (the Letter of Credit 
Facility). Required payments of principal, interest 
and make whble premium amounts on the Series C 
ESOP Notes are paid under the letter of credit. At 
December 31, 2000, the letter of credit totaled 
$418 million, covering the $290 million outstanding 
principal amount of the Series C ESOP Notes, 
approximately one year of interest on the notes and 
$95 million of make whole premium amounts. 
The Letter of Credit Facility and the related letter 
of credit expire on May 19, 2003. The Letter of Credit 
Facility provides that, if there is a drawing under the 
letter of credit, Delta must immediately repay the 
amount drawn or convert its repayment obligation to 
a short-term loan. 
Due to the existence of the letter of credit, the 
Series C ESOP Notes currently have the required 
ratings. However, these ratings are subject to change 
at any time. The Series C ESOP Notes are not likely to 
receive the required ratings without a credit enhance- 
ment such as the letter of credit, unless Delta's 
long-term senior unsecured debt is rated at least 
A3 by Moody's and A- by Standard & Poor's. At 
December 31, 2000, our long-term senior unsecured 
debt was rated Baa3 and BBB-, respectively. 
Development Authority of Clayton County Bonds 
In June 2000, the Development Authority of 
Clayton County (Development Authority) issued 
$301 million principal amount of bonds in three series 
with scheduled maturities between 2029 and 2035. 
The proceeds of this sale were used to refund bonds 
that had been issued to finance certain Delta facil- 
ities at Hartsfield Atlanta International Airport. The new 
bonds are secured by the Development Authority's 
pledge of revenues derived by the Development 
Authority under related loan agreements between 
Delta and the Development Authority. 
The Development Authority bonds currently bear 
interest at a variable rate which is determined weekly. 
The bonds may be tendered for purchase by their 
holders on seven days notice. Subject to certain con- 
ditions, tendered bonds will be remarketed at then 
prevailing interest rates. 
Principal and interest on the bonds, and the pay- 
ment of the purchase price of bonds tendered for pur- 
chase, are presently paid under three irrevocable, 
direct-pay letters of credit totaling $305 million 
issued by a bank under a Reimbursement Agreement 
between Delta and a group of banks (Reimbursement 
Agreement). The Reimbursement Agreement generally 
provides that, if there is a drawing under a letter of 
credit to purchase bonds that have been tendered for 
purchase, Delta may convert its repayment obliga- 
tions to a loan that becomes due and payable on the 
earlier of (1) the date the related bonds are remar- 
keted; or (2) the June 8, 2003 expiration date of 
the related letter of credit. Unless an existing letter 
of credit is extended, a mandatory tender for pur- 
chase of the related bonds will occur on the fifth day 
prior to the expiration of such letter of credit. In 
these circumstances, Delta could seek to replace 
25 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
the expiring letter of credit with a new letter of credit 
from an alternate credit provider and remarket the 
related bonds. 
Covenants and Change in Control Provisions 
The Letter of Credit Facility and the Reimburse- 
ment Agreement contain negative covenants and a 
change in control provision that are similar to or less 
restrictive than the corresponding provisions in our 
1997 Bank Credit Agreement. 
Our debt agreements do not limit the payment 
of dividends on our capital stock. The terms of the 
Series B ESOP Convertible Preferred Stock limit our 
ability to pay cash dividends to our common share- 
owners in certain circumstances (see Note 13). 
ASA's credit agreements contain negative 
covenants that apply only to the financial position of 
ASA. The covenants, among other things, limit ASA's 
ability to transfer funds in the form of cash dividends, 
loans or advances. At December 31, 2000, approxi- 
mately $285 million of ASA's net assets were subject 
to these restrictions and approximately $199 million 
of net assets were available for distribution by ASA 
to Delta under the most restrictive of these provisions. 
Future Maturities 
At December 31, 2000, the scheduled maturi- 
ties of our long-term debt for the next five years are 
as follows: 
Years Ending December 31, 
(In Millions) 
2001 
2002 
2003 
2004 
2005 
After 2005 
Total 
Principal 
Amount 
$ 62 
129 
69 
617 
555 
4,427 
$5,859 
Capitalized interest totaled $45 million, 
$48 million and $40 million for the years ended 
December 31, 2000, 1999 and 1998, respectively. 
8. Asset Writedowns and Other Special Charges 
In 2000, we recorded pretax charges totaling 
$108 million ($66 million after tax, or $0.53 basic 
and $0.50 diluted EPS) for the following: 
26 
 We offered an early retirement medical option to 
allow eligible Delta employees to retire with contin- 
ued medical coverage without paying certain early 
retirement medical premiums. Approximately 2,500 
employees elected to participate. As a result of this 
program, we recorded a pretax charge of $86 mil- 
lion in the quarter ended June 30, 2000. 
DEL TA AI R L IN ES , IN C . 
 We decided to close our Pacific gateway in 
Portland, Oregon. As a result of this decision, we 
recorded a pretax restructuring charge of $22 mil- 
lion, primarily for idle facilities, in the quarter ended 
September 30, 2000. 
In 1999, we recorded pretax charges totaling 
$469 million ($286 million after tax, or $2.07 basic 
and $1.94 diluted EPS) for the following: 
 We accelerated the planned retirement of our 16 
MD-90 aircraft and eight owned MD-11 aircraft 
over the next six to eight years as part of our 
fleet simplification strategy. As a result of this 
decision, we reviewed these fleet types for impair- 
ment, determining that the estimated future cash 
flows generated by these aircraft are less than their 
carrying values. The estimated future cash flows 
were based on projections of passenger yield, fuel 
costs, labor costs and other relevant factors in the 
markets in which these aircraft operate. These air- 
craft were written down to their fair values, as esti- 
mated by management, using published sources 
and bids received from third parties. Due to this 
impairment analysis, we recorded a pretax asset 
writedown of $320 million in the quarter ended 
December 31, 1999. 
 We changed our business practice regarding the 
disposal of surplus aircraft parts and entered into 
an agreement to sell all of our existing surplus air- 
craft parts inventory to a third party. Accordingly, 
we wrote down surplus aircraft parts and obsolete 
flight equipment and parts to their estimated fair 
values. We determined the estimated fair value 
of inventory using the negotiated purchase price. 
This resulted in a pretax charge of $107 million in 
the quarter ended September 30, 1999. 
 We implemented certain technology initiatives 
which resulted in an abandonment of certain 
legacy hardware and software assets. We also 
decided to streamline certain administrative 
processes. Accordingly, we recorded a pretax 
charge of $42 million in the quarter ended 
September 30, 1999. We also remeasured the 
useful lives of certain technology assets that are 
still in use but that will be replaced earlier than 
originally planned. The effect of the remeasure- 
ment on depreciation expense was immaterial. 
 9. Lease Obligations 
Delta leases aircraft, airport terminal and mainte- 
nance facilities, ticket offices and other property and 
equipment. We record rent expense on a straight-line 
basis over the life of the lease. Rental expense for 
operating leases totaled $1.3 billion, $1.1 billion and 
$1.0 billion in 2000, 1999 and 1998, respectively. 
Amounts due under capital leases are recorded as 
liabilities. Our interest in assets acquired under capital 
leases is shown as an asset on our Consolidated 
Balance Sheets. Amortization of assets recorded 
under capital leases is included in depreciation 
expense in our Consolidated Statements of Income. 
The following table summarizes, as of 
December 31, 2000, our minimum rental commit- 
ments under capital leases and operating leases with 
initial or remaining terms in excess of one year: 
Years Ending December 31, Capital Operating 
(In Millions) Leases Leases 
2001 $ 51 $ 1,204 
2002 39 1,218 
2003 29 1,189 
2004 21 1,153 
2005 14 1,138 
After 2005 17 9,218 
Total minimum lease payments 171 $15,120 
Less: Amounts of lease payments 
which represent interest 32 
Present value of future minimum 
capital lease payments 139 
Less: Current obligations under 
capital leases 40 
Long-term capital lease obligations $ 99 
As of December 31, 2000, we operated 328 air- 
craft under operating leases and 48 aircraft under 
capital leases. These leases have remaining terms 
ranging from six months to 18 years. 
Certain municipalities have issued special facil- 
ity revenue bonds to build or improve airport and 
maintenance facilities leased to Delta. The facility 
lease agreements require Delta to make rental pay- 
ments sufficient to pay principal and interest on the 
bonds. The above table includes $2.0 billion of 
operating lease rental commitments for such pay- 
ments. Delta has purchased irrevocable direct-pay 
letters of credit totaling $104 million to support 
some of these obligations. 
10. Purchase Commitments and Contingencies 
Future expenditures for aircraft and engines on 
firm order as of January 26, 2001 are estimated to 
be $9.6 billion. The following table shows the timing 
of these commitments: 
Years Ending December 31, 
(In Billions) 
2001 
2002 
2003 
2004 
2005 
After2005 
Total 
Amount 
$2.3 
2.0 
2.0 
1.9 
1.0 
0.4 
$9.6 
We have joint marketing and Delta Connection 
carrier agreements with two regional jet operators 
under which Delta schedules certain regional jets 
operated by those airlines, sells the seats on those 
flights and retains the related revenues. We pay 
those airlines an amount that is based on their 
cost of operating those flights plus a specified mar- 
gin. We estimate that these payments will total 
approximately $200 million for the twelve months 
ending December 31, 2001. The joint marketing 
agreements expire in 2010, but we may terminate 
these agreements prior to their expiration dates in 
certain circumstances. 
Delta is a defendant in legal actions relating 
to antitrust matters, employment practices, environ- 
mental issues and other matters concerning our 
business. Although the ultimate outcome of these 
matters cannot be predicted with certainty, we 
believe that the resolution of these actions is not 
likely to have a material adverse effect on our 
Consolidated Financial Statements. 
Delta self-insures a portion of its losses from 
claims related to workers' compensation, environmen- 
tal issues, property damage and general liability. 
Losses are accrued based on an estimate of the 
ultimate aggregate liability for claims incurred, using 
certain actuarial assumptions followed in the insur- 
ance industry and based on Delta's experience. 
Approximately 17% of our employees, including 
all of our pilots, are covered by collective bargaining 
agreements. The outcome of our collective bargain- 
ing negotiations with unions cannot presently be 
determined. A strike or other job action could have 
a material adverse impact on our financial condition 
and operations. See "Collective Bargaining Matters" 
on page 12 of Management's Discussion and 
Analysis for additional unaudited information on this 
subject. 
11. Employee Benefit Plans 
Delta sponsors defined benefit and defined contri- 
bution pension plans, healthcare plans, and disability 
and survivorship plans for eligible employees, their eli- 
gible family members and retirees. We reserve the 
27 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
right to modify or terminate these plans as to all par- 
ticipants and beneficiaries at any time, except as 
restricted by the Internal Revenue Code or ERISA. 
As discussed in Note 1, we changed our year end 
from June 30 to December 31 and elected to restate 
our financial statements in order to provide compara- 
bility between periods. This change does not require a 
remeasurement of prior pension or postretirement 
obligations. Therefore, with the exception of net peri- 
odic costs, the financial data presented in this note 
has not been restated for the change in year end. 
Defined Benefit Pension Plans 
Our qualified defined benefit pension plans meet 
or exceed ERISA's minimum funding requirements 
as of December 31, 2000. 
The following table shows the change in projected 
benefit obligation for our defined benefit pension plans 
for the six months ended December 31, 2000 and the 
twelve months ended June 30, 2000 and 1999: 
Twelve Twelve 
Six Months Months Months 
Ended Ended Ended 
December 31, June 30, June 30, 
(In Millions) 2000 2000 1999 
Projected benefit obligation 
at beginning of period $8,901 $8,872 $8,342 
Service cost 121 251 240 
Interest cost 354 644 585 
Actuarial loss (gain) 156 (402) 158 
Benefits paid (269) (491) (456) 
Plan amendments 27 3 
Projected benefit obligation 
at end of period $9,263 $8,901 $8,872 
We used the following actuarial assumptions 
to determine the actuarial present value of our pro- 
jected benefit obligation: 
September 30, March 31, March 31, 
___________ 
2_0--'-0--'-0-~ 2000 1999 
Weighted average 
discount rate 8.25% 8.25% 7.25% 
Rate of increase 
in future 
compensation levels 5.35% 4.93% 4.43% 
Expected long-term rate of 
return on plan assets 10.00% 10.00% 10.00% 
The following table shows the change in the fair 
value of our defined benefit pension plan assets for 
28 
DELTA AIR L IN ES , IN C . 
the six months ended December 31, 2000 and the 
twelve months ended June 30, 2000 and 1999: 
Twelve Twelve 
Six Months Months Months 
Ended Ended Ended 
December 31, June 30, June 30, 
(In Millions) 2000 2000 1999 
Fair value of plan assets at 
beginning of period $10,721 $ 9,020 $9,121 
Actual return on plan assets (80) 2,144 310 
Employer contributions 26 48 45 
Benefits paid (269) (491) (456) 
Fair value of plan assets 
at end of period $10,398 $10,721 $9,020 
The prepaid pension cost recognized for these 
plans on our Consolidated Balance Sheets at 
December 31, 2000 and June 30, 2000 and 1999 
is computed as follows: 
December 31, June 30, June 30, 
(In Millions) 2000 2000 1999 
Funded status $1,135 $1,820 $148 
Unrecognized net 
actuarial gain (1,558) (2,301) (607) 
Unrecognized transition 
obligation 58 58 60 
Unrecognized 
prior service cost 55 57 37 
Contributions made between 
measurement date 
and year end 12 14 12 
Intangible asset (8) (9) (13) 
Other comprehensive income (2) (1) (2) 
Accrued pension cost 
recognized in the 
Consolidated Balance Sheets $ (308) $ (362) 
Net periodic pension cost for the years ended 
December 31, 2000, 1999 and 1998 included the 
following components: 
(In Millions) 2000 1999 1998 
Service cost $ 250 $239 $224 
Interest cost 686 599 582 
Expected return on 
plan assets (924) (794) (731) 
Amortization of prior 
service cost 4 4 4 
Recognized net actuarial 
(gain) loss (22) 1 (2) 
Amortization of 
net transition obligation 2 2 2 
Net periodic 
pension cost $ (4) $ 51 $ 79 
Delta also sponsors non-qualified pension plans 
which are funded from current assets. The accu- 
mulated benefit obligation of these plans totaled 
$413 million at September 30, 2000, $337 million at 
March 31, 2000 and $301 million at March 31, 1999. 
 Defined Contribution Pension Plans 
Delta Pilots Money Purchase Pension Plan (MPPP)- 
We contribute 5% of covered pay to the MPPP for each 
eligible Delta pilot. The MPPP is related to the Delta 
Pilots Retirement Plan. The defined benefit pension 
payable to a pilot is reduced by the actuarial equiva- 
lent of the accumulated account balance in the MPPP. 
During the years ended December 31, 2000, 1999 
and 1998, we recognized expense of $63 million, 
$56 million and $52 million, respectively, for this plan. 
Delta Family-Care Savings Plan-Our Savings Plan 
includes an employee stock ownership plan (ESOP) 
feature. Eligible personnel may contribute a portion of 
their earnings to the Savings Plan. Delta matches 
50% of those contributions with a maximum employer 
contribution of 2% of a participant's earnings. We 
make quarterly employer contributions by allocating 
Series B ESOP Convertible Preferred Stock, common 
stock or cash to the plan. These contributions, which 
are recorded as salaries and related costs in the 
accompanying Consolidated Statements of Income, 
totaled $69 million, $61 million and $49 million in 
2000, 1999 and 1998, respectively. 
When we adopted the ESOP in 1989, we 
sold 6,944,450 shares of Series B ESOP Convertible 
Preferred Stock to the Savings Plan for $500 million. 
We have recorded unearned compensation equal to 
the value of the shares of preferred stock not yet 
allocated to participants' accounts. We reduce the 
unearned compensation as shares of preferred 
stock are allocated to participants' accounts. 
Dividends on unallocated shares of preferred stock 
are used for debt service on the Savings Plan 's 
Series C ESOP Notes and are not considered divi- 
dends for financial reporting purposes. Dividends on 
allocated shares of preferred stock are credited to 
participants' accounts and are considered dividends 
for financial reporting purposes. Only allocated 
shares of preferred stock are considered outstand- 
ing when we compute diluted earnings per share. At 
December 31, 2000, 3,213,999 shares of Series B 
ESOP Convertible Preferred Stock were allocated to 
participants' accounts and 3,181,870 shares were 
held by the ESOP for future allocations. 
Other Plans-ASA, Comair and DAL Global Services, 
Inc. sponsor defined contribution retirement plans for 
eligible employees. Eligible personnel may contribute 
a portion of their earnings to the plans through payroll 
deduction. These plans did not have a material impact 
on our Consolidated Financial Statements in 2000, 
1999 and 1998. 
Postretirement Benefits Other Than Pensions 
Our medical plans provide medical and dental 
benefits to substantially all Delta retirees and their 
eligible dependents. Benefits are funded from our 
general assets on a current basis. Plan benefits are 
subject to copayments, deductibles and other limits 
as described in the plans. 
The following table shows the change in our 
accumulated postretirement benefit obligation (APBO) 
for the six months ended December 31, 2000 and 
the twelve months ended June 30, 2000 and 1999: 
Twelve Twelve 
Six Months Months Months 
Ended Ended Ended 
December 31, June 30, June 30, 
(In Millions) 2000 2000 1999 
APBO at beginning of period $1,749 $1,612 $1,627 
Service cost 18 38 37 
Interest cost 70 117 112 
Benefits paid (46) (80) (71) 
Actuarial gain (11) (52) (65) 
Substantive plan change 28 (28) 
Special termination benefits 86 
APBO at end of period $1,780 $1,749 $1,612 
The special termination benefits reflected in 
the above table relate to the early retirement med- 
ical option offered to certain Delta employees (see 
Note 8). 
We used the following actuarial assumptions to 
determine the actuarial present value of our APBO: 
September 30, March 31, March 31, 
_ _ _ _ _ _ _ _ _ _ _ 2::..:0:...::0-=-0--1 2000 1999 
Weighted average 
discount rate 
Assumed health care 
cost trend rate* 
8.25% 
7.00% 
8.25% 
7.00% 
7.25% 
5.50% 
* The assumed healthcare cost trend rate is assumed to decline gradually to 
5.25% in 2003 and remain level thereafter. 
A 1% change in the health care cost rate used in 
measuring the APBO at September 30, 2000 would 
have the following effects: 
(In Millions) 1% Increase 
Increase (decrease) in 
total service and interest cost $ 12 
Increase (decrease) in the APBO $188 
1% Decrease 
$ (8) 
$(157) 
29 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
The following table shows the calculation of the 
accrued postretirement benefit cost recognized on our 
Consolidated Balance Sheets at December 31, 2000 
and June 30, 2000 and 1999: 
December 31, June 30, June 30, 
(In Millions) 2000 2000 1999 
Funded status $(1,780) $(1,749) $(1 ,612) 
Unrecognized net 
gain (loss) (64) (51) 1 
Unrecognized 
prior service cost (283) (302) (371) 
Contributions made between 
measurement date 
and year end 22 20 17 
Accrued postretirement 
benefit cost recognized 
in the Consolidated 
Balance Sheets $(2,105) $(2 ,082) $(1 ,965) 
Our net periodic postretirement benefit cost 
for the years ended December 31, 2000, 1999 
and 1998 included the following components: 
(In Millions) 
Service cost 
Interest cost 
Amortization of prior 
service cost 
Recognized net actuarial 
(gain) loss 
Other 
Net periodic postretirement 
benefit cost 
2000 
$ 37 
129 
(40) 
$126 
1999 1998 
$ 35 $ 38 
106 117 
(38) (42) 
(1) 
(4) (5) 
$ 99 $107 
Postemp/oyment Benefits-Delta provides certain other 
welfare benefits to eligible former or inactive employ- 
ees after employment but before retirement, primarily 
as part of the disability and survivorship plans. 
Postemployment benefit income (expense) 
was $51 million in 2000, $12 million in 1999, and 
$(29) million in 1998. We include the amount funded 
in excess of the liability in other noncurrent assets 
on our Consolidated Balance Sheets. Future period 
expenses will vary based on actual claims experi- 
ence and the return on plan assets. Gains and 
losses occur because actual experience differs from 
assumed experience. These gains and losses are 
amortized over the average future service period of 
employees. We also amortize differences in prior serv- 
ice costs resulting from amendments affecting the 
benefits of retired and inactive employees. 
30 
D E LTA AIR LIN ES , INC . 
We regularly evaluate ways to better manage 
employee benefits and control costs. Any changes to 
the plans or assumptions used to estimate future 
benefits could have a significant effect on the amount 
of the reported obligation and future annual expense. 
12. Earnings Per Share 
We calculate basic EPS by dividing the income 
available to common shareowners by the weighted 
average number of common shares outstanding. 
Diluted EPS includes the dilutive effects of stock 
options and convertible securities. The following table 
shows our computation of basic and diluted EPS: 
Years Ended December 31, 
(In Millions, except per share data) 2000 1999 1998 
Basic: 
Net income before cumulative 
effect of changes in 
accounting principles $ 928 $1,262 $1,078 
Dividends on allocated 
Series B ESOP 
Convertible 
Preferred Stock (13) (12) (11) 
Income available to 
common shareowners $ 915 $1,250 $1,067 
Weighted average 
shares outstanding 123.8 138.0 147.8 
Basic earnings per share 
before cumulative 
effect of changes in 
accounting principles $ 7.39 $ 9.05 $ 7.22 
Diluted: 
Net income before cumulative 
effect of changes in 
accounting principles $ 928 $1,262 $1,078 
Adjustment to net income 
assuming conversion of 
allocated Series B ESOP 
Convertible Preferred Stock (5) (4) (4) 
Income available to 
common shareowners $ 923 $1,258 $1,074 
Weighted average 
shares outstanding 123.8 138.0 147.8 
Additional shares assuming: 
Exercise of stock options 1.6 4.7 4.1 
Conversion of allocated 
Series B ESOP Convertible 
Preferred Stock 5.4 4.7 4.4 
Conversion of 
performance-based 
stock units 0.2 0.2 
Weighted average shares 
outstanding as adjusted 131.0 147.6 156.3 
Diluted earnings per share 
before cumulative 
effect of changes in 
accounting principles $ 7.05 $ 8.52 $ 6.87 
 13. Common and Preferred Stock 
As discussed below, we have reserved shares of stock for the exercise of stock options and for other 
stock-based awards; for the conversion of our Series B ES0P Convertible Preferred Stock; and in connection 
with our Shareowner Rights Plan. 
Shares of Common Stock Reserved For Stock Options and Other Stock-Based Awards 
To more closely align the interests of directors, officers and other employees with the interests of our 
shareowners, Delta maintains certain plans which provide for the issuance of common stock in connection 
with the exercise of stock options and for other stock-based awards. The following table includes information 
about these plans, including the number of shares of common stock reserved for issuance under each such 
plan at December 31, 2000. 
Plan 
Total Shares 
Authorized 
for Issuance 
Non-Qualified 
Stock Options 
Granted Shares Issued 
11,391,153 
Shares 
Reserved 
for Future 
Issuance 
Broad-based employee stock option plans1 
Delta 2000 Performance Compensation Plan2 
Non-Employee Directors' Stock Plan3 
Non-Employee Directors' Stock Option Plan4 
49,400,000 
16,000,000 
500,000 
250,000 
49,400,000 
92,458 
N/A 
55,500 
31,058 
37,720,440 
16,000,000 
468,942 
250,000 
1 In 1996, shareowners approved broad-based pilot and non-pilot stock option plans. Under these two plans, we granted eligible employees non-qualified 
stock options to purchase a total of 49.4 million shares of common stock in three approximately equal installments on October 30, 1996, 1997 and 
1998. These stock options (1) have an exercise price equal to the fair market value of the common stock on the grant date; (2) are generally exercisable 
beginning one year and ending ten years after the grant date; (3) are forfeited upon termination of employment in certain circumstances; and (4) are not 
transferrable other than due to the employee's death. No additional stock options may be granted under these plans. 
2 On October 25, 2000, shareowners approved this new plan, which amends and restates a prior plan. No awards have been, or will be, granted under 
the prior plan since that date. At December 31, 2000, there were 12. 7 million shares of common stock reserved for awards (primarily non-qualified 
stock options) that were outstanding under the prior plan. The new plan authorizes the grant of stock options, and a limited number of other stock awards, 
up to a total of 16 million shares of common stock when the new plan was adopted. The new plan provides that shares reserved for awards under the 
plans which are forfeited, settled in cash rather than stock, or withheld, plus shares tendered to Delta in connection with such awards, may be added back 
to the shares available for future grants. 
3 In 1995, shareowners approved this plan, which provides that a portion of each non-employee director's annual retainer will be paid in shares of common 
stock. It also permits non-employee directors to elect to receive all or a portion of their cash compensation for service as a director in shares of common 
stock at current market prices. 
4 On October 22, 1998, the Board of Directors approved this plan. Each non-employee director receives an annual grant of a non-qualified stock option which, at 
the time of grant, is intended to have a present value equal to approximately twice the cash portion of the current annual cash retainer of $20,000. 
Series B ESOP Convertible Preferred Stock 
Each outstanding share of Series B ES0P 
Convertible Preferred Stock pays a cumulative cash 
dividend of 6% per year; is convertible into 1. 7155 
shares of common stock at a conversion price of 
$41.97 per share; and has a liquidation price of $72, 
plus accrued and unpaid dividends. The Series B 
ES0P Convertible Preferred Stock generally votes 
together as a single class with the common stock 
and has two votes per share. It is redeemable at our 
option at $72 per share plus accrued and unpaid 
dividends, payable in cash or common stock. We 
cannot pay cash dividends on common stock until 
all cumulative dividends on the Series B ES0P 
Convertible Preferred Stock have been paid. The 
conversion rate, conversion price and voting rights of 
the Series B ESOP Convertible Preferred Stock are 
subject to adjustment in certain circumstances. 
All shares of Series B ES0P Convertible 
Preferred Stock are held of record by the trustee 
of the Delta Family-Care Savings Plan (See Note 11). 
At December 31, 2000, 10,989,384 shares of 
common stock were reserved for issuance for 
the conversion of the Series B ES0P Convertible 
Preferred Stock. 
Shareowner Rights Plan 
The Shareowner Rights Plan is designed to pro- 
tect shareowners against attempts to acquire Delta 
that do not offer an adequate purchase price to all 
shareowners, or are otherwise not in the best interest 
of Delta and our shareowners. Under the plan, each 
31 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
outstanding share of common stock is accompanied 
by one-half of a preferred stock purchase right. Each 
whole right entitles the holder to purchase 1/100 of a 
share of Series D Junior Participating Preferred Stock 
at an exercise price of $300, subject to adjustment. 
The rights become exercisable only after a per- 
son acquires, or makes a tender or exchange offer 
that would result in the person acquiring, beneficial 
ownership of 15% or more of our common stock. If 
a person acquires beneficial ownership of 15% or 
more of our common stock, each right will entitle its 
holder (other than the acquiring person) to exercise 
his rights to purchase our common stock having a 
market value of twice the exercise price. 
If a person acquires beneficial ownership of 15% 
or more of our common stock and (1) we are involved 
in a merger or other business combination in which 
Delta is not the surviving corporation, or (2) we sell 
more than 50% of our assets or earning power, then 
each right will entitle its holder (other than the acquir- 
ing person) to exercise his rights to purchase common 
stock of the acquiring company, having a market value 
of twice the exercise price. 
The rights expire on November 4, 2006. Delta 
may redeem the rights for $0.01 per right at any time 
 15. Stock Options and Awards 
D E LTA AIR L IN ES , INC. 
before a person becomes the beneficial owner of 15% 
or more of our common stock. At December 31, 2000, 
2,250,000 shares of preferred stock were reserved 
for issuance under the Shareowner Rights Plan. 
14. Common Stock Repurchases 
We repurchased 10.6 million shares of common 
stock for $502 million in 2000. In 1999, we repur- 
chased 11.0 million shares of common stock for 
$625 million, which included five million shares held 
by Singapore Airlines. These repurchases were 
made under certain now completed stock buyback 
programs, and the ongoing common stock repur- 
chase authorization described below. 
In 1996, our Board of Directors authorized us to 
repurchase up to 49.4 million shares of common 
stock issued under our broad-based employee stock 
option plans (See Note 13). As of December 31, 
2000, we had repurchased 21.6 million shares of 
common stock under the authorization. We are 
authorized to repurchase the remaining shares as 
employees exercise their stock options under those 
plans. Repurchases are subject to market condi- 
tions and may be made in the open market or in 
privately negotiated transactions. 
The following table summarizes all stock option and stock appreciation rights (SAR) activity during 2000, 
1999 and 1998: 
Stock Options 
Outstanding at beginning of year 
Granted 
Exercised 
Forfeited 
Outstanding at end of year 
Stock options exercisable at year end 
s hares 
(000) 
4 7,859 
3,914 
(725) 
(683) 
5 0,365 
4 6,309 
2000 
Weighted 
Average 
Exercise Shares 
Price (000) 
$48 47,663 
52 3,395 
41 (2,410) 
53 (789) 
48 47,859 
$48 44,615 
1999 1998 
Weighted Weighted 
Average Average 
Exercise Shares Exercise 
Price (000) Price 
$47 31,892 $43 
58 20,896 51 
44 {4,955) 34 
49 (170) 50 
48 47,663 47 
$47 27 ,557 $44 
The following table summarizes information about stock options outstanding and exercisable at December 31, 2000: 
Range of 
Exercise 
Prices 
$26-$34 
$35-$41 
$42-$63 
32 
Number 
Outstanding 
(000) 
211 
7,580 
42,574 
Stock Options Outstanding 
Weighted 
Average 
Remaining Life 
(Years) 
4 
6 
7 
Weighted 
Average 
Exercise Price 
$26 
35 
51 
Stock Options Exercisable 
Number 
Exercisable 
(000) 
211 
7,580 
38,518 
Weighted 
Average 
Exercise Price 
$26 
35 
51 
 The estimated fair values of stock options 
granted in 2000, 1999 and 1998 were derived 
using the Black-Scholes stock option pricing model. 
The exercise price for stock options, and the base 
measuring price of tandem stock appreciation rights 
(which were granted prior to 1993), is the fair market 
value of the common stock on the grant date. 
The following table shows our assumptions and 
the weighted average fair values of stock options: 
Stock Options Granted 
Assumption 2000 1999 1998 
Risk-free interest rate 6.2% 6.0% 4.4% 
Average expected life of 
stock options (in years) 7.5 7.5 4.9 
Expected volatility of 
common stock 26.9% 26.7% 26.2% 
Expected annual dividends 
on common stock $0.10 $0.10 $0.10 
Weighted average fair value 
of stock options $ 23 $ 26 $ 16 
The following table shows what our net income 
and earnings per share would have been for 2000, 
1999 and 1998 had we accounted for our stock 
option plans under the fair value method of SFAS 123, 
"Accounting for Stock-Based Compensation:" 
(In Millions) 2000 1999 1998 
Net Income: 
As reported $828 $1,208 $1,078 
As adjusted for the 
fair value method 
under SFAS 123 801 1,147 994 
Basic earnings per share: 
As reported $6.58 $ 8.66 $ 7.22 
As adjusted for the 
fair value method 
under SFAS 123 6.36 8.23 6.66 
DIiuted earnings per share: 
As reported $6.28 $ 8.15 $ 6.87 
As adjusted for the 
fair value method 
under SFAS 123 6.07 7.75 6.42 
Under SFAS 123, we are not required to include 
stock options granted before 1996 as compensation 
in determining pro forma net income. Therefore, the 
pro forma effects of SFAS 123 on net income and 
earnings per share for the periods presented may 
not be representative of the pro forma effects of 
SFAS 123 in future years. 
After December 31, 2000, we granted stock 
options covering a total of 2.4 million shares of 
common stock under the Delta 2000 Performance 
Compensation Plan, with an exercise price of $45.94. 
16. Comprehensive Income 
Comprehensive income includes unrealized 
gains and losses on marketable equity securities 
and changes in the fair value of certain derivative 
instruments which qualify for hedge accounting. 
Comprehensive income totaled $0.9 billion, $1.3 bil- 
lion-and $1.1 billion for 2000, 1999 and 1998, 
respectively. The difference between net income 
and comprehensive income for 2000, 1999 and 
1998 is detailed in the following table: 
.,_~n_et- 
i~- 
- 
,~- 
- 
~n-~"-~-------$ 
2 
-~-~-~--1 
$t;~: 
Realization of gains from 
the sale of investments 
Unrealized gain on 
marketable equity 
securities 
Unrealized gain on 
derivative instruments 
Total other 
comprehensive income 
Income tax effect on other 
comprehensive income 
Total other comprehensive 
income, net of 
income taxes 
Comprehensive income, 
net of income taxes 
(301) (877) 
16 1,108 
439 
154 
(60) 
94 
$ 922 
231 
(90) 
141 
$1,349 
1998 
$1,078 
95 
95 
(37) 
58 
$1,136 
As of December 31, 2000, we had recorded 
$268 million, net of tax, as unrealized gains on 
open fuel hedge contracts in accordance with 
SFAS 133. This amount is included in unrealized 
gains on derivative instruments in the table above. 
We anticipate that $196 million, net of tax, will be 
realized during 2001 as the related contracts settle. 
Upon the adoption of SFAS 133 on July 1, 2000, 
we recorded unrealized fuel hedge gains of $416 mil- 
l ion. We anticipate $289 million of that total will be 
realized during the 12 months ending July 1, 2001. 
For additional information on the adoption of 
SFAS 133, see Note 3. 
17. Sale of Receivables 
During 1999, we entered into an agreement 
under which we sold a defined pool of our accounts 
receivable, on a revolving basis, through a special 
purpose, wholly owned subsidiary to a third party. 
We initially sold receivables with a fair value of 
$54 7 million to the subsidiary. In exchange for the 
receivables sold, we received (1) $325 million in 
cash from the subsidiary's sale of an undivided 
interest in the pool of receivables to a third party 
and (2) a $222 million subordinated promissory note 
from the subsidiary. The amount of the promissory 
note fluctuates because it represents the portion 
of the purchase price payable for the volume of 
receivables sold. We retained servicing and record- 
keeping responsibilities for the receivables sold. This 
agreement was renewed on June 15, 2000 and will 
expire on June 15, 2001. 
33 
 Notes to the Consolidated Financial Statements 
December 31, 2000, 1999 and 1998 
As part of the agreement, the subsidiary is 
required to pay fees to a third party based on the 
amounts invested by the third party. For 2000 and 
1999, these fees were $22 million and $10 million, 
respectively. The fees are included in other income 
(expense) under miscellaneous (expense) income, 
net in our Consolidated Statements of Income. 
As part of this transaction, Delta funded $83 mil- 
lion to the subsidiary to purchase additional receiv- 
ables in June 2000. The principal amount of the 
promissory note was $92 million and $171 million at 
December 31, 2000 and 1999, respectively, and is 
included as accounts receivable on our Consolidated 
Balance Sheets. 
18. Business Acquisitions 
We acquired a majority interest in Comair Holdings 
in November 1999 and completed our acquisition of 
that company in January 2000 for a total purchase 
price of $1.8 billion. Prior to this acquisition, we owned 
22% of the outstanding common stock of Comair 
Holdings. Our Consolidated Financial Statements in this 
Annual Report include Comair Holdings' balance sheet 
as of December 31, 2000 and 1999 and its results of 
operations from November 22, 1999. 
We acquired a majority interest in ASA Holdings 
in March 1999, and completed our acquisition of that 
company in April 1999 for a total purchase price of 
$700 million. Prior to this acquisition, we owned 28% 
of the outstanding common stock of ASA Holdings. 
Our Consolidated Financial Statements in this Annual 
Report include ASA Holdings' balance sheets as of 
December 31, 2000 and 1999 and its results of 
operations from April 1, 1999. 
We used the purchase method of accounting to 
record the acquisition of Comair Holdings and ASA 
20. Quarterly Financial Data (Unaudited) 
D E LTA A I R LIN ES , INC. 
Holdings. The purchase price of the shares acquired 
was allocated to the assets acquired and the liabili- 
ties assumed based on estimated fair values at the 
respective acquisition date for both Comair Holdings 
and ASA Holdings. Based on the allocation, the total 
costs of the acquisitions exceeded the estimated fair 
values of the underlying net assets by $1.45 billion 
and $534 million for Comair Holdings and ASA 
Holdings, respectively. These amounts are being amor- 
tized on a straight-line basis over a 40 year period. 
19. Geographic Information 
SFAS 131 requires us to disclose certain infor- 
mation about our operating segments. Operating 
segments are defined as components of an enter- 
prise with separate financial information which is eval- 
uated regularly by the chief operating decision maker 
and is used in resource allocation and performance 
assessments. We are managed as a single business 
unit that provides air transportation of passengers 
and cargo. Our operating revenues by geographic 
region for 2000, 1999 and 1998 are summarized in 
the following table: 
(In Millions) 2000 1999 1998 
North America $14,004 $12,259 $11,555 
Atlantic 1,988 1,930 2,125 
Pacific 297 319 322 
Latin America 452 375 310 
Total $16 741 $14,883 $14,312 
Operating revenues are assigned to a specific 
geographic region based on the origin and destina- 
tion of each flight segment. Our tangible assets 
consist primarily of flight equipment, which is mobile 
across geographic markets. Accordingly, assets are 
not allocated to specific geographic regions. 
The following table summarizes our unaudited quarterly results of operations for 2000 and 1999 (in mil- 
lions, except per share data): 
2000 
Operating revenues 
Operating income 
Net income 
Basic earnings per share* 
Diluted earnings per share* 
Mar. 31 
$3,911 
$ 343 
$ 217 
$ 1.68 
$ 1.61 
Three Months Ended 
June 30 Sept. 30 Dec. 31 
$4,469 $4,345 $4,016 
$ 606 $ 510 $ 178 
$ 460 $ 133 $ 18 
$ 3 .73 $ 1.05 $ 0.12 
$ 3.51 $ 1.01 $ 0.12 
Three Months Ended 
1999 Mar. 31 June 30 Sept. 30 Dec. 31 
Operating revenues $3,469 $3,907 $3,829 $3,678 
Operating income $ 350 $ 630 $ 336 $ 2 
Net income $ 159 $ 357 $ 344 $ 348 
Basic earnings per share* $ 1.10 $ 2.53 $ 2.46 $ 2.60 
Diluted earnings per share* $ 1.03 $ 2.35 $ 2.33 $ 2.48 
34 
* The sum of the quarterly earnings per share does not equal the annual earnings per share due to changes in average shares outstanding. The results 
presented are net of the cumulative effect of changes in accounting principles. 
 Report of Management 
The integrity and objectivity of the information 
presented in this Annual Report are the responsibil- 
ity of Delta management. The financial statements 
contained in this report have been audited by Arthur 
Andersen LLP, independent public accountants, whose 
report appears below. 
Delta maintains a system of internal financial 
controls which are assessed on an ongoing basis 
through a program of internal audits. These controls 
include the selection and training of Delta's man- 
agers, organizational arrangements that provide a 
division of responsibilities, and communication pro- 
grams explaining our policies and standards. We 
believe this system provides reasonable assurance 
that transactions are executed in accordance with 
management's authorization; that transactions are 
appropriately recorded to permit preparation of finan- 
cial statements which, in all material respects, are 
Report of Independent Public Accountants 
To Delta Air Lines, Inc.: 
We have audited the accompanying consolidated 
balance sheets of Delta Air Lines, Inc. (a Delaware 
corporation) and subsidiaries as of December 31, 
2000 and 1999, and the related consolidated state- 
ments of income, cash flows and shareowners' equity 
for each of the three years in the period ended 
December 31, 2000. These financial statements are 
the responsibility 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 
auditing standards generally accepted in the United 
States. Those standards require that we plan and per- 
form 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 disclo- 
sures 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 statement 
DELTA AIR L IN ES , I C . 
presented in conformity with accounting principles 
generally accepted in the United States; and that 
assets are properly accounted for and safeguarded 
against loss from unauthorized use. 
The Board of Directors pursues its responsibili- 
ties for these financial statements through its Audit 
Committee, which consists solely of directors who are 
neither officers nor employees of Delta. The Audit 
Committee meets periodically with the independent 
public accountants, the internal auditors and man- 
agement to discuss internal accounting control, audit- 
ing and financial reporting matters. 
M. Michele Burns 
Executive Vice President 
and Chief Financial Officer 
~o(i ~ - 
Chairman and 
Chief Executive Officer 
DELTA AIR LINES , INC . 
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 
consolidated financial position of Delta Air Lines, Inc. 
and subsidiaries as of December 31, 2000 and 
1999, and the consolidated results of their opera- 
tions and their cash flows for each of the three 
years in the period ended December 31, 2000, in 
conformity with accounting principles generally 
accepted in the United States. 
As discussed in Note 3 to the consolidated 
financial statements, effective July 1, 2000, Delta Air 
Lines, Inc. changed its method of accounting for 
derivative instruments and hedging activities. As dis- 
cussed in Note 5 to the consolidated financial state- 
ments, effective January 1, 1999, Delta Air Lines, Inc. 
changed its method of accounting for the sale of 
mileage credits to participating partners in its fre- 
quent flyer program. 
~~ L-z:P 
Atlanta, Georgia 
January 26, 2001 
35 
 36 
Consolidated Summary of Operations 
DELTA AIR LINES , IN C . 
For they d d D 
ears en e b 31 
ecem er 
' 2000~ 1999-2 1998 19973 
(In Millions, Except Per Share Data) 
Operating revenues $16,741 
Operating expenses 15,104 
$14,883 
13,565 
$14,312 
12,509 
$13,868 
12,240 
Operating income (loss) 1,637 
Interest income (expense), net' (271) 
Miscellaneous income, net8 
342 
Fair value adjustments of SFAS 133 derivatives (159) 
1,318 
{126) 
901 
- 
1,803 
(66) 
39 
- 
1 ,628 
(98) 
13 
- 
Income {loss) before income taxes 1,549 
Income tax benefit {provision) (621) 
Amortization of investment tax credits - 
2,093 
{831) 
- 
1,776 
{698) 
- 
1,543 
(609) 
- 
Net income {loss) before cumulative effect of 
change in accounting principle 928 
Net income {loss) after cumulative effect of 
1,262 1,078 934 
change in accounting principle 828 
Preferred stock dividends (13) 
1,208 
(12) 
1,078 
(11) 
934 
(10) 
Net income {loss) attributable to common shareowners $ 815 $ 1,196 $ 1,067 $ 924 
Earnings {loss) per share before cumulative 
effect of change in accounting principle 
Basic $ 7.39 $ 9.05 $ 7.22 $ 6.28 
Diluted $ 7.05 $ 8.52 $ 6.87 $ 6.02 
Earnings {loss) per share 
Basic $ 6.58 $ 8.66 $ 7.22 $ 6.28 
Diluted $ 6.28 $ 8.15 $ 6.87 $ 6.02 
Dividends declared per common share $ 0.10 $ 0.10 $ 0.10 $ 0.10 
Other Financial and Statistical Data 
DELTA A I R LINES , INC. 
For the years ended December 31, 20001 19992 1998 1997 3 
(Financial Data In Millions) 
Total assets $21,931 $19,942 $14,727 $13,137 
Long-term debt and capital leases 
(excluding current maturities) $ 5,896 $ 4,303 $ 1,720 $ 1,692 
Shareowners' equity $ 5,343 $ 4,908 $4,077 $ 3,407 
Shares of Common Stock outstanding at year end 123,013,372 132,893,470 141,514,262 149,037,632 
Revenue passengers enplaned (Thousands) :U.9,930 110,083 105,304 103,233 
Available seat miles (Millions) 154,974 147,073 142,154 138,831 
Revenue passenger miles (Millions) 112,998 106,165 103,342 99,689 
Operating revenue per available seat mile 10.80 10.12 10.07 9.99 
Passenger mile yield 13.86 13.14 12.99 13.04 
Operating cost per available seat mile 9.75 9 .22 8.80 8.82 
Passenger load factor 72.91% 72.18% 72.70% 71.81% 
Breakeven passenger load factor 65.29% 65.37% 62.94% 62.78% 
Available ton miles (Millions) 22,925 21,245 20,312 19,462 
Revenue ton miles (Millions) 13,058 12,227 12,052 11,644 
Operating cost per available ton mile 65.88 63.85 61.58 62.89 
' Includes pretax income of $51 million of unusual items, net, ($0.25 basic and $0.24 diluted after-tax earnings per share), excluding the cumulative effect of a change in 
accounting principle (see Note 8). 
' Includes pretax income of $418 million of unusual items, net ($1.85 basic and $1. 73 diluted after-tax earnings per share), excluding the cumulative effect of a change in 
accounting principle (see Note 8). 
3 Includes $52 million in pretax restructuring and other unusual charges ($0.35 basic and $0.34 diluted after-tax earnings per share). 
 Includes $829 million in pretax restructuring and other unusual charges ($6.49 basic and $5.25 diluted after-tax earnings per share). 
 Includes $414 million in pretax restructuring charges ($4.10 after-tax earnings per share). 
 Includes $194 million in pretax restructuring charges ($1.94 after-tax earnings per share). 
' Includes interest income. 
 Includes gains from the sale of investments. 
 All share and earnings per share amounts for years prior to 1999 have been restated to reflect the two-for-one common stock split that became effective on November 2, 1998. 
19964 1995 19945 19936 1992 1991 1990 
$12,898 $12,218 $12,044 $11,808 $11,580 $10,020 $8,707 
12,324 11,174 12,259 11,954 12,432 10,277 8,935 
574 1,044 (215) (146) (852) (257) (228) 
(125) (263) (192) (289) (121) (140) (57) 
(30) 74 (8) 60 36 31 44 
- - - - - - - 
419 855 (415) (375) (937) (366) (241) 
(171) (344) 140 149 332 115 72 
- - - - 5 11 15 
248 511 (275) (226) (600) (240) (154) 
248 511 (161) (226) (1,187) (240) (154) 
(42) (88) (98) (110) (65) (20) (21) 
$ 206 $ 423 $ (259) $ (336) $ (1,252) $ (260) $ (175) 
$ 1.62 $ 4.15 $ (3.70) $ {3.36) $ (6.70) $ (2.74) $ (1.91) 
$ 1.62 $ 3.35 $ (3.70) $ {3.36) $ (6.70) $ (2.74) $ (1.91) 
$ 1 .62 $ 4.15 $ (2.57) $ (3.36) $ (12.61) $ (2.74) $ (1.91) 
$ 1 .62 $ 3.35 $ (2.57) $ (3.36) $ (12.61) $ (2.74) $ (1.91) 
$ 0.10 $ 0.10 $ 0.10 $ 0 .10 $ 0.60 $ 0.60 $ 0 .60 
19964 1995 19945 19936 1992 1991 1990 
$12,026 $11,998 $11,384 $11,600 $10,156 $9,083 $7,327 
$ 2,045 $ 2,981 $ 3,051 $ 3,433 $ 2,491 $2,494 $1,494 
$ 2,470 $ 2,079 $ 1,611 $ 1,785 $ 2,699 $2,258 $2,040 
146,281,410 102,343,078 101,215,994 100,415,724 99,471,880 98,838,570 84,749,280 
97,281 86,992 89,054 85,032 83,117 74,281 65,871 
133,714 130,176 130,367 132,921 131,389 111,420 99,777 
93,929 85,168 86,357 82,860 80,496 67,269 58,982 
9.65 9.39 9.24 8.88 8.81 8.99 8.73 
12.91 13.37 12.98 13.67 13.33 13.91 13.82 
9.22 8.58 9.40 8.99 9.46 9 .22 8.95 
70.25% 65.43% 66.24% 62.34% 61.27% 60.37% 59.11% 
66.91% 59.43% 67.51% 63.14% 66.13% 62.03% 60.77% 
18,489 18,047 18,109 18,375 17,956 14,885 13,095 
10,806 9,927 10,117 9,601 9,263 7,704 6,732 
66.65 61.92 67.70 65.06 69.24 69.04 68.23 
37 
 Officers 
Leo F. Mullin 
Chairman and Chief Executive Officer 
Malcolm B. Armstrong 
Executive Vice President-Operations 
M. Michele Burns 
Executive Vice President and Chief Financial Officer 
Robert L. Colman 
Executive Vice President-Human Resources 
Vicki B. Escarra 
Executive Vice President-Customer Service 
Frederick W. Reid 
Executive Vice President and Chief Marketing Officer 
Delta Subsidiaries 
Robert P. DeRodes 
President and Chief Executive Officer-Delta Technology, Inc. 
Chief Information Officer-Delta Air Lines, Inc. 
David A. Siebenburgen 
President and Chief Executive Officer-Delta Connection, Inc. 
W. E. (Skip) Barnette 
President-ASA Holdings Inc., and Atlantic Southeast Airlines, Inc. 
Randy D. Rademacher 
President-Comair Holdings, Inc., and Comair, Inc. 
Edward H. Bastian 
Senior Vice President-Finance and Controller 
David S. Bushy 
Senior Vice President-Flight Operations 
Frederick W. P. Buttrell 
Senior Vice President-Strategy and Business Development 
Vincent F. Caminiti 
Senior Vice President-e-Business 
Anthony N. Charaf 
Senior Vice President-Delta Air Logistics 
Lamar Chesney 
Senior Vice President-Supply Chain 
Mark A. P. Drusch 
Senior Vice President-Network Management 
Robert S. Harkey 
Senior Vice President-General Counsel and Secretary 
Lee A. Macenczak 
Senior Vice President-Sales and Distribution 
Paul G. Matsen 
Senior Vice President-International and Alliances 
John N. Selvaggio 
Senior Vice President-Airport Customer Service 
Thomas J. Slocum 
Senior Vice President-Corporate Communications 
Ray Valeika 
Senior Vice President-Technical Operations 
Sharon I. Wibben 
Senior Vice President-In-Flight Service 
D. Scott Yohe 
Senior Vice President-Government Affairs 
Anthony L. Austin 
Vice President-Human Resources-Customer Service 
R. Michael Bell 
Vice President-Schedule Development 
Gerald A. Bemis 
Vice President-Line Maintenance Operations 
38 
Harlan R. Bennett 
Vice President-Revenue Management 
Harold L. Bevis 
Vice President-Public Affairs 
Doug W. Blissit 
Vice President-Network Analysis 
John W. Boatright 
Vice President-Properties and Facilities 
Maureen Dunphy Brady 
Vice President-Customer Service 
W. Martin Braham 
Vice President-DAL Global Services 
Walter A. Brill 
Vice President-Associate General Counsel 
Robert T. Cirulnick 
Vice President-Finance-Customer Service 
Paulette L. Corbin 
Vice President-Airport Customer Service-West 
Richard N. Cordell 
Vice President-Atlanta Customer Service-Central 
Jack A. Daulton 
Vice President-Corporate Security 
Terry M. Erskine 
Vice President-Employee Relations 
Jeffrey T. Fisher 
Vice President-Finance-Marketing 
Hank Halter 
Vice President-Finance-Operations 
Todd Helvie 
Vice President-Corporate Tax 
Subodh Karnik 
Vice President-Finance-Corporate Development 
Leslie P. Klemperer 
Vice President-Associate General Counsel and Assistant Secretary 
William D. Kline 
Vice President-Chief Learning Officer 
Joseph Licitra 
Vice President-Airport Customer Service-East 
John C. Marshall 
Vice President-Corporate Safety and Compliance 
James V. Maucere 
Vice President-Base, Engine and Component Maintenance 
Patrice G. Miles 
Vice President-Consumer Marketing 
Leon A. Piper 
Vice President-Worldwide Benefits and Health Resources 
Udo Rieder 
Vice President-Engineering and Quality 
Gregory L. Riggs 
Vice President-Deputy General Counsel and Assistant Secretary 
David J. Smith 
Vice President-Global Rewards and Recognition 
Belinda R. Stubblefield 
Vice President-Global Diversity 
William F. Wangerien 
Vice President-Operational Planning, Control and Reliability 
Patrick H. Wildenburg, Jr. 
Vice President-Global Sourcing and e-Business-82B 
Lemuel R. Wimbish 
Vice President-Atlanta Worldport 
Michael M. Young 
Vice President-Community Affairs 
Dean C. Arvidson 
Assistant Secretary 
Susan T. Hudson 
Assistant Secretary 
 Board Of Directors 
Edwin L. Artzt 
Non-Executive Chairman of the Board, Spalding Holdings 
Corporation; retired Chairman of the Board and Chief 
Executive Officer, The Procter & Gamble Company 
James L. Broadhead 
Chairman of the Board and Chief Executive Officer, 
FPL Group, Inc. and Florida Power & Light Company 
Edward H. Budd 
Retired Chairman of the Board and Chief Executive Officer, The 
Travelers Corporation 
R. Eugene Cartledge 
Non-Executive Chairman of the Board, Generac Portable 
Products Inc.; Retired Chairman of the Board and 
Chief Executive Officer, Union Camp Corporation 
Mary Johnston Evans 
Director of Household International, Inc.; Moody's Corporation 
and Sunoco, Inc. 
George M.C. Fisher 
Retired Chairman of the Board and Chief Executive Officer, 
Eastman Kodak Company 
David R. Goode 
Chairman of the Board, President and Chief Executive Officer, 
Norfolk Southern Corporation 
Gerald Grinstein 
Non-Executive Chairman of the Board, Agilent Technologies, 
Inc.; retired Chairman of the Board, Burlington Northern Santa 
Fe Corporation; former Chief Executive Officer, Western Air 
Lines, Inc. 
Leo F. Mullin 
Chairman 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 
John F. Smith, Jr. 
Chairman of the Board and retired Chief Executive Officer, 
General Motors Corporation; Chairman of Catalyst 
Andrew J. Young 
Chairman of the Board and Senior Partner, Goodworks 
International', Inc.; Chairman of the Southern Africa Enterprise 
Development Fund; former Mayor of Atlanta, Georgia; former 
United States Ambassador to the United Nations; former 
member of the U.S. House of Representatives 
Delta Board Council Representatives 
Richard C. Buckalew 
Operational Support/Clerical 
Michele F. Chase 
Field and Cargo Sales 
Theresa M. Hicks 
Supervisory/ Administrative 
Paul A. Letourneau 
Technical Operations 
Representative of Air Line Pilots Association, International 
Captain Mark D. Halsor- 
Associate non-voting member of the Board of Directors 
Board Committees 
Audit 
James L. Broadhead, Chairman 
Mary Johnston Evans 
George M.C. Fisher 
Andrew J. Young 
Benefit Funds Investment 
Andrew J. Young, Chairman 
James L. Broadhead 
R. Eugene Cartledge 
Mary Johnston Evans 
John F. Smith, Jr. 
Corporate Governance 
Mary Johnston Evans, Chairman 
James L. Broadhead 
Gerald Grinstein 
John F. Smith, Jr. 
Andrew J. Young 
Corporate Strategy 
R. Eugene Cartledge, Chairman 
Edwin L. Artzt 
James L. Broadhead 
Edward H. Budd 
Gerald Grinstein 
Executive 
Gerald Grinstein, Chairman 
Edwin L. Artzt 
James L. Broadhead 
Edward H. Budd 
R. Eugene Cartledge 
Mary Johnston Evans 
Andrew J. Young 
Finance 
Edwin L. Artzt, Chairman 
Edward H. Budd 
R. Eugene Cartledge 
David R. Goode 
Gerald Grinstein 
Personnel & Compensation 
Edward H. Budd, Chairman 
George M.C. Fisher 
David R. Goode 
Gerald Grinstein 
William M. Morey 
Reservation Sales and City Ticket Offices 
Larry J. Stites 
Airport Customer Service and Air Logistics 
Dale C. Williams 
In-Flight Service 
39 
 Shareowner Information 
TRANSFER AGENT, REGISTRAR AND 
DIVIDEND PAYING AGENT FOR COMMON STOCK 
Registered shareowner 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 
a Division of EquiServe 
P. 0. Box 2500 
Jersey City, New Jersey 07303-2500 
Telephone (201) 324-1225 
www.equiserve.com 
DIRECTSERVICETM INVESTMENT PROGRAM 
Investors may purchase Delta common stock under 
this program, which is sponsored and administered 
by First Chicago Trust Company of New York, a 
Division of EquiServe. All correspondence and inquiries 
concerning the program should be directed to: 
The DirectSERVICE Investment Program 
c/o EquiServe 
P. 0. Box 2598 
Jersey City, New Jersey 07303-2598 
Telephone (201) 324-1225 
www.equiserve.com 
ANNUAL MEETING 
The Annual Meeting of Shareowners will be held on 
Thursday, April 26, 2001 at 9:00 a.m., local time at 
The Grand America Hotel, 555 South Main Street, 
Salt Lake City, Utah. 
AVAILABILITY OF FORM 10-K AND 
OTHER FINANCIAL INFORMATION 
A copy of Delta's Annual Report on Form 10-K 
for the year ended December 31, 2000, and other 
financial documents, are available on-line at 
www.delta.com . To receive materials by mail, call 
(866) 240-0597 or mail requests to: 
Delta Air Lines, Inc. 
Investor Relations, Department 829 
P. 0. Box 20706 
Atlanta, Georgia 30320-6001 
Company documents filed electronically with the 
SEC can also be found on the SEC's Web site 
www.sec.gov. A copy of this Annual Report can be 
found on Delta's Web site www.delta.com . 
40 
INVESTOR RELATIONS 
Telephone inquiries related to financial information, 
other than requests for financial documents, may be 
directed to Delta Investor Relations at (866) 715-2170. 
D E L T A AIR LIN E S, INC . 
INDEPENDENT PUBLIC ACCOUNTANTS 
Arthur Andersen LLP 
133 Peachtree Street, N.E. 
Atlanta, Georgia 30303 
COMMON STOCK 
Listed on the New York Stock Exchange under the 
ticker symbol DAL. 
NUMBER OF SHAREOWNERS 
As of December 31, 2000, there were 21,194 
registered owners of common stock. 
MARKET PRICES AND DIVIDENDS 
Cash Dividends 
Closing Price of per 
Year 2000 Common Stock Common Share 
Quarter Ended: High Low 
March 31 54.75 43.63 0.025 
June 30 57.06 49.00 0.025 
September 30 57.50 44.38 0.025 
December 31 50.19 40.38 0.025 
Cash Dividends 
Closing Price of per 
Year 1999 Common Stock Common Share 
Quarter Ended: High Low 
March 31 70.94 49.00 0.025 
June 30 71.56 55.44 0.025 
September 30 63.13 46.19 0.025 
December 31 54.44 47.56 0.025 
AVAILABILITY OF EQUAL EMPLOYMENT OPPORTUNITY REPORT 
A copy of Delta's Equal Employment Opportunity 
Report is available without charge upon written 
request. Requests may be directed to: 
Delta Air Lines, Inc. 
Equal Opportunity, Department 955 
P.O. Box 20706 
Atlanta, Georgia 30320-6001 
AVAILABILITY OF ENVIRONMENTAL REPORT 
A copy of Delta's Environmental Report is available 
on-line at www.delta.com or upon written request. 
Requests may be directed to: 
Delta Air Lines, Inc. 
Corporate Communications, Department 978 
P.O. Box 20706 
Atlanta, Georgia 30320-6001 
 I 
i 
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Delta's Aircraft Fleet 
Mainline Aircraft Fleet 
Delta's modern and efficient aircraft fleet is at the center of our 
operations. Delta has entered into a long-term aircraft purchase 
agreement with The Boeing Company (Boeing), which covers 
firm orders, options and rolling options for certain aircraft through 
calendar year 2017. This agreement supports Delta's plan for 
disciplined growth, aircraft rationalization and fleet replacement. 
It also provides Delta flexibility to adjust scheduled aircraft deliver- 
ies or substitute between aircraft models and aircraft types. 
The majority of the aircraft under firm order from Boeing will be 
used to replace older aircraft. 
Delta's long-term plan is to reduce aircraft family types from 
seven to three. We believe fleet standardization will improve 
reliability and produce long-term cost savings. We plan to retire 
Aircraft Fleet at December 31, 2000 
Aircraft Type 
B-727-200 
B-737-200 
B-737-300 
B-737-800 
B-757-200 
B-767-200 
8-767-300 
8-767-300ER 
8-767-400 
B-777-200 
L-1011-1 
L-1011-250 
L-1011-500 
MD-11 
MD-88 
MD-90 
EM8-120 
ATR-72 
CRJ-100/200 
Total 
Owned 
72 
1 
40 
77 
15 
4 
49 
12 
7 
6 
5 
4 
8 
63 
16 
49 
4 
23 
455 
Aircraft Delivery Schedule at December 31, 2000 
DELTA A I R L I NES , I NC . 
(1) our remaining L-1011 aircraft by August 2001; (2) our B-727 
fleet by the end of 2005; and (3) our MD-90 fleet and owned MD-11 
aircraft over the next six to eight years. In 1999, we entered into 
an agreement to sell our B-727 fleet, with deliveries occurring 
through 2005. 
Regional Jet Aircraft Fleet 
In July 2000, ASA and Comair entered into purchase agreements 
with Bombardier, Inc. to purchase a total of 94 Canadian Regional 
Jet (CRJ) aircraft, including 69 CRJ-200 aircraft with a mix of 40, 
44 and 50 seats, and 25 CRJ-700 aircraft with 70 seats. ASA and 
Comair also received options to purchase an additional 406 CRJ 
aircraft through 2010. 
Leased Average 
Capital Operating Total Age 
- 10 82 22.4 
45 8 54 16.1 
3 23 26 14.1 
- - 40 0.9 
- 41 118 9.5 
- - 15 17.6 
- 24 28 10.9 
- 8 57 5.0 
- - 12 0.2 
- - 7 1.3 
- - 6 19.7 
- - 5 18.1 
- - 4 19.9 
- 7 15 6.9 
- 57 120 10.5 
- - 16 5.1 
- 11 60 10.6 
- 15 19 6.5 
- 124 147 2.8 
48 328 831 9.6 
Delivery in Calendar Year Ending 
Aircraft on Firm Order 2001 
8-737-600/700/800 27 
8-757-200 3 
8-767-300/300ER 2 
8-767-400 6 
8-777-200 - 
CRJ-100/200 34 
CRJ-700 2 
Total 74 
Aircraft on Option at December 31, 2000 
Aircraft on Option* 2001 
8-737-600/700/800 - 
8-757-200 - 
8-767-300/300ER - 
8-767-400 - 
8-777-200 - 
CRJ-100/200 - 
CRJ-700 - 
Total - 
2002 2003 2004 
18 10 16 
- - - 
- - - 
3 - - 
1 1 - 
29 22 2 
20 12 23 
71 45 41 
Delivery in Calendar Year Ending 
2002 2003 2004 
4 7 8 
5 12 3 
- 2 2 
2 5 5 
2 5 5 
12 28 32 
- - 5 
25 59 60 
After 
2004 
21 
- 
- 
- 
4 
- 
- 
25 
After 
2004 
41 
- 
7 
12 
8 
159 
160 
387 
Total 
92 
3 
2 
. 9 
6 
87 
57 
256 
Total 
60 
20 
11 
24 
20 
231 
165 
531 
Rolling 
Options 
252 
70 
12 
13 
24 
371 
* Aircraft options have scheduled delivery slots, while rolling options replace options and are assigned delivery slots as options expire or are exercised. 
 A .Delta 
Delta Air Lines, Inc. 
P.O. Box 20706 
Atlanta, Georgia 30320-6001 
(404) 715-2600 
www.delta.com