Internal Memorandum

Date:
To:

Delta Colleagues Worldwide

From:

Paul Jacobson

Subject:

CONTINUING OUR MOMENTUM

October 14, 2015

This morning we reported a pre-tax profit of $2.2 billion for the September quarter, a record not only for Delta but
for the airline industry. This is a notable achievement, and all Delta people should be proud of these results.
We remain committed to sharing that success with all of our stakeholders, first and foremost our employees. It is an
honor to recognize the hard work of 80,000 outstanding Delta employees with over $1.1 billion in profit sharing
accrued so far this year. You consistently deliver best-in-class operations and service to our customers. For
example, you have already delivered 100 days of zero mainline cancellations with three months remaining in the
year, compared to 95 days in 2014. This is performance our competitors have not come close to matching.
Delta recently announced a 14.5 percent increase in base pay for most employees and an increase in our 401(k)
match. Unlike most of our competitors, we will also continue to offer a generous profit-sharing plan that will
provide you double digit payouts when we meet our financial goals.
The entire worldwide Delta family should feel proud of what we have accomplished over the past several years in
transforming our business model for long-term success. However, we need to be mindful that a large portion of our
profit for the quarter came from the significant drop in oil prices. Delta saved $1.1 billion in fuel costs compared to
the third quarter of 2014, about half of our total profit for the period. Those of us who have worked in this industry
for any length of time are well aware that we cannot count on low jet fuel prices over the long term.
We have also experienced declines in unit revenues and passenger yields throughout much of the year due to
economic slowdowns in certain regions, currency fluctuations and other pressures. Geopolitical unrest and global
capacity increases are also creating challenges we will be dealing with for many years to come.
These events make it clear that our industry will continue to be volatile, and underscore the need to stay nimble and
productive, continue to push for innovative solutions and always be ready to respond to change. Our strong cost
discipline has helped us achieve the position we are in, and we cannot allow our current prosperity to knock us
off course.
Together, we have taken many steps over the past eight years to transform Deltas business model into one that can
be profitable in good times and bad, avoiding the industrys historic boom-and-bust economic cycle. To that end,
we have paid down more than $10 billion in debt, invested more than $13 billion in the business, expanded key
international partnerships with China Eastern, Virgin Atlantic, GOL and other carriers, and invested in our most
important asset, our people.
Our people-focused culture and our core values of being thoughtful, reliable and innovative continue to drive our
success. As long as we remain focused, we will continue to make history together.
Thanks to each and every one of you, and congratulations on an outstanding quarter.