Delta Air Lines (Atlanta) will add 88 former AirTran Airways Boeing 717-200 aircraft to its fleet starting in 2013.

Delta has finalized an agreement with Southwest Airlines and Boeing for the Boeing 717s, which are currently in service at Southwest subsidiary AirTran Airways. The aircraft will begin delivery next year, with 16 scheduled to enter Delta’s fleet in 2013. An additional 36 will be delivered in 2014, and the remaining 36 in 2015.

The Boeing 717s will primarily replace small 50-seat regional jets on a capacity-neutral basis. The 110-seat aircraft will feature new, fully upgraded interiors, with 12 First Class seats, 15 Economy Comfort seats and in-flight WiFi throughout the aircraft. Seats in Economy will be arranged in a 2-3 configuration with just one middle seat per row.

The 717 initiative is the latest step in Delta’s domestic fleet optimization plan launched in 2010, focused on improving the profitability of the company and providing customers an industry-leading customer experience.  Delta will begin taking delivery next year of new fuel-efficient state-of-the-art Boeing 737-900 ER jets, which will primarily replace older Boeing 757-200 and 767-300 and Airbus A320 aircraft. Delta will add 100 new 737-900 ERs between 2013 and 2018.  In addition, Delta has upgraded its fleet with the addition of more than 80 MD-90 and two-class regional jets, retiring less efficient mainline and regional aircraft.

Image: Delta Air Lines.

Delta Air Lines: 

Hawaiian Airlines‘ (Honolulu) parent company, Hawaiian Holdings, has signed a Letter of Intent to acquire turbo-prop aircraft with the aim of establishing a subsidiary carrier to serve routes not currently in Hawaiian’s neighbor island system.

The announcement came in a press release about lower inter-island fares. Hawaiian Airlines has implemented a new fare structure for neighbor island travel that lowers ticket prices across all of its fare classes from 4 to 25 percent.

Under the new fare structure, the lowest fare for a one-way nonstop interisland flight (including taxes and mandatory federal fees) is $65 for travel from Honolulu to Kahului and Lihu’e.

The new fare structure complements the additional neighbor island capacity and routes Hawaiian introduced earlier this year. Over the past year, Hawaiian has increased capacity by 13 percent and created a Maui hub to increase service between the Valley Isle, Kaua’i and Hawai’i Island. The turbo-prop subsidiary will allow Hawaiian to further expand capacity with daily flights to rural areas.

Hawaiian has operated turboprops in the past including the de Havilland Canada DHC-7 Dash 7 for its inter-island services.

Copyright Photo: Ivan K. Nishimura. Today Hawaiian operates the Boeing 717 on its inter-island network. Boeing 717-22A N475HA taxies at the HNL hub.

Hawaiian Airlines: 

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc., reported consolidated net income for the three months ended June 30, 2012 of $3.9 million, or $0.07 per diluted share, on total operating revenue of $484.6 million. This compares to a net loss of $50.0 million, or $0.99 per basic and diluted share, on total operating revenue of $395.0 million for the three months ended June 30, 2011.  Results for the three months ended June 30, 2011 included the impact of a non-recurring pre-tax lease termination expense of $70.0 million related to the purchase of 15 Boeing 717-200 aircraft previously operated under lease agreements.

Reflecting economic fuel expense, the Company reported adjusted net income of $11.7 million, or $0.22 per diluted share for the three months ended June 30, 2012.  This compares with adjusted net income of $0.1 million, reflecting economic fuel expense and excluding the impact of lease termination costs, or $0.00 per diluted share, for the three months ended June 30, 2011.  Table 4 sets forth a reconciliation of net income (loss) and diluted net income (loss) per share on a GAAP basis and non-GAAP net income (loss) and diluted net income (loss) per share reflecting economic fuel expense and excluding lease termination costs.

Copyright Photo: Andy Jung. Boeing 717-22A N484HA (msn 55129) departs from Kahului, Maui.

Hawaiian Airlines: 

Blue1 (Helsinki) after November 1 will operate under the SAS brand in the Finnish market.

SAS issued the following statement this morning:

From November 1, SAS will be taking over responsibility for commercial operations in Finland. This is taking place in line with SAS’s 4Excellence strategy and strengthens SAS’s position on the Finnish market. Finnish subsidiary Blue1 is being converted to a production company, with the primary task of delivering operational flight services to meet SAS’s route network needs.

“Finland is our fourth Nordic home market and we have been restructuring our route network in Finland since the beginning of the year. We now fly nonstop between several regions in Finland and Scandinavia, as a complement to the worldwide route network of SAS and the Star Alliance. We are now using the SAS brand to demonstrate our strong offering and our unique customer benefits on the Finnish market as well,” says Joakim Landholm, Executive Vice President Commercial at SAS.

“As a production company, Blue1 will be focusing on its operational strengths and continuing to operate its current routes for SAS. Our punctuality is the best in Europe and our focus on high-class service is greater than ever,” says Janne Hattula, Managing Director and COO of Blue1 since July 2012.

In other news, Blue1 will open a new nonstop route from Helsinki to Geneva. The route will be operated from January 12 to March 23, 2013 on Saturdays. The route will provide a new option to fly direct from Helsinki to Geneva, close to many popular winter resorts in the Swiss, French and Italian Alps.

Copyright Photo: Andi Hiltl. With this announcement the unique Blue1 brand will disappear. Blue1 will operate for its parent under the SAS name. Boeing 717-23S OH-BLM (msn 55066) climbs away from Zurich.

Blue1: 

Route Map:

Please click on the map for the full size view.

The QANTAS Group (QANTAS Airways) (Sydney) has  announced an update to its fleet plan to capitalize on growth in Australian domestic markets.

QANTAS will lease an additional five Boeing 717 aircraft (above) and purchase three Bombardier DHC-8-402 (Q400) aircraft (below), due to start arriving from the second half of 2013.

The company has also made a change to its international fleet plan, with the cancellation of a single Boeing 787-8 Dreamliner on order for Jetstar Airways.

The remaining 14 Boeing 787-8s will be delivered to Jetstar as planned, with the first aircraft to arrive in mid-2013. This will enable the gradual transfer of Airbus A330 aircraft from Jetstar to QANTAS Domestic and the retirement of QANTAS’ Boeing 767 fleet.

Mr Joyce said the cancellation of one B787 took advantage of flexibility in its fleet plan and contract with Boeing.

“The original 787 order for Jetstar was designed to replace all 11 of its existing A330s that are used for long haul services plus provide another four lines of flying for future growth.

“While the plan is for Jetstar’s long haul network to keep expanding we are using the flexibility in our agreement with Boeing to cancel a firm order knowing that we can replace it with one of our 50 options for this aircraft down the track, and with a full view of what market conditions are like at the time,” added Mr Joyce.

Jetstar’s short haul growth plans continue to be supported by the QANTAS Group’s existing order of Airbus A320 aircraft.

Mr Joyce said the QANTAS Group remained firmly committed to the Dreamliners for both Qantas International and Jetstar, and that it retained options and purchase rights for 50 Boeing 787s of either -8 or -9 variants available for delivery from 2016.

In an important milestone for the Jetstar Boeing 787 program, production of its first aircraft has just begun. With delivery of the aircraft not due until mid-2013, the airline is confident current technical issues will be resolved by Boeing.

The decision to amend the 787 order was reached at the end of 2012 and the agreement with Boeing has now been finalized.

The fleet changes announced will have no material impact on the Group’s planned capital expenditure, which remains unchanged at $1.8 billion for FY13 and $1.9 billion for FY14.

Top Copyright Photo: Peter Gates. Boeing 717-231 VH-NXN (msn 55095) of Cobham Aviation Services Australia operating as a QANTAS Link carrier poses for the camera at Brisbane.

QANTAS Link-Cobham Aviation Services Australia: 

QANTAS Link-Sunstate Airlines: 

Bottom Copyright Photo: John Adlard. Bombardier DHC-8-402 (Q400) VH-QOC (msn 4117) of Sunstate Airlines approaches the Sydney hub.

Southwest Airlines (Dallas) announced today that Grand Rapids, Michigan is the next AirTran Airways (Dallas) city to be converted to Southwest service.  Those flights from Grand Rapids to Baltimore/Washington, Denver, Orlando, and Saint Louis will begin on August 11, 2013.  AirTran service in Grand Rapids will end the previous day, August 10, 2013.

From Gerald R. Ford International Airport (GRR), fly Southwest Airlines Nonstop to:

• (BWI) Baltimore/Washington International Thurgood Marshall Airport
• (DEN) Denver International Airport
• (MCO) Orlando International Airport
• (STL) Lambert-St. Louis International Airport

Additionally, AirTran expands operations in Memphis with new nonstop flights between Memphis and Chicago (Midway), Baltimore/Washington, and Orlando, beginning on August 11, 2013.  In Memphis, AirTran currently offers five daily nonstop flights to Atlanta.

Southwest also will begin nonstop service between Flint, Michigan and Las Vegas starting on August 11, 2013. Bishop International Airport (FNT) in Flint is currently served by AirTran Airways and will convert to Southwest Airlines service on April 14, 2013. Inaugural service from Flint will also include nonstop service to Baltimore/Washington, Orlando, and Tampa Bay.

Top Copyright Photo: Eddie Maloney. Boeing 737-3H4 N609SW (msn 27929) in the California One motif lands at Las Vegas.

Southwest Airlines: 

AirTran Airways: 

Bottom Copyright Photo: Bruce Drum. Southwest Airlines is also phasing out the AirTran Airways’ Boeing 717 fleet. The 717s will gradually migrate to Delta Air Lines. Boeing 717-2BD N946AT (msn 55009) painted in the special livery of the world champion Baltimore Ravens of the National Football League (NFL) climbs away from the runway at Fort Lauderdale-Hollywood International Airport (FLL).

Southwest Airlines (Dallas) has announced that it is taking the next step in its marriage with subsidiary, AirTran Airways. Customers are now able to purchase a growing number of itineraries between the Southwest and AirTran networks for travel on a single itinerary. Soon, Customers will be able to book flights to any of the airlines’ combined 97 destinations, including international, in one transaction.

“Connecting the networks is a priority in 2013 and a major milestone as we work to combine our two Companies,” said Bob Jordan, Chief Commercial Officer at Southwest Airlines and President of AirTran.  “With a connected network, we can offer Customers more itineraries, more destinations, more low fares, and a taste of what’s to come once the integration is complete.”

Southwest Airlines and AirTran Airways took the first step in connecting their networks on January 26, 2013, by offering a small number of shared itineraries in five markets.  The initial phase was successful, and the airlines are prepared to launch in 39 cities on February 25, 2013.  The airline is on pace to fully connect the networks in April.

By connecting the Southwest and AirTran networks, Customers may:

• Add one or more AirTran domestic flight segments to a Southwest itinerary, using Southwest booking channels (southwest.com, 1-800-IFLYSWA, travel agencies, Southwest’s mobile site and apps, and Southwest Airlines ticket counters).
• Book one or more Southwest flight segments connecting to an AirTran itinerary, using AirTran channels (airtran.com, 1-800-AIRTRAN, AirTran Airways ticket counters, and travel agencies).
• Use all Southwest channels to book an AirTran-only domestic itinerary.
• Add an international AirTran segment to a Southwest itinerary within a single reservation, through a Customer-friendly transfer of the transaction to AirTran channels for booking, purchase, and ticketing by AirTran.
• Earn currency in either loyalty program no matter which carrier they fly. (The currency a Customer earns is determined by the carrier from which they buy their ticket, even if flying on a shared itinerary.)

As is standard with industry “code share” arrangements, the Marketing Carrier’s rules and policies apply to reservations and ticketing.  The Operating Carrier’s procedures apply to boarding, seating, and the onboard experience. Southwest is making one exception: any itinerary with a Southwest segment or that is purchased through a Southwest point-of-sale channel will not have bag fees for the first or second checked bag (weight and size restrictions apply).

Southwest Airlines announced plans to acquire AirTran Airways on September 27, 2010, an acquisition that significantly expanded Southwest Airlines’ low-fare service to more Customers in more domestic markets, creating hundreds of additional low-fare itineraries for the traveling public.  Since Southwest Airlines closed the deal to purchase AirTran Airways on May 2, 2011, Southwest and AirTran Employees have worked hard to guarantee a thoughtful and smooth integration process while providing the same high level of Customer Service that Customers have come to expect. To date, Southwest Airlines has welcomed 29 percent of AirTran Employees to the Southwest Family, has converted 11 AirTran Airways 737-700 aircraft to the Southwest paint scheme and interior configuration, and has transitioned five AirTran Airways-served cities into Southwest Airlines operations.

The process of a full integration of the AirTran Airways 737 fleet into the Southwest Airlines fleet (i.e. paint scheme and interior configuration) and transition to a single ticketing system is a large and complex process that is expected to be completed by the end of 2014.  Southwest Airlines realized $142 million of net, annualized, pre-tax synergies during 2012, and expects to achieve $400 million in 2013 (excluding acquisition and integration expenses).

Copyright Photo: Tony Storck. All visuals for AirTran Airways, including aircraft, will be gone by the end of 2014. The Boeing 717 fleet will be leaving sooner for Delta Air Lines. Southwest will not operate or integrate the Boeing 717s. Therefore many of the special color schemes on the 717s will be retired when the aircraft are removed from the AirTran fleet. The pictured ex-TWA 717-231 N925AT (msn 55079, ex N412TW) displays the special “The Wizarding World of Harry Potter” color scheme at Baltimore/Washington.

Southwest Airlines: 

AirTran Airways: 

Hawaiian Airlines‘ (Honolulu) flight attendants have ratified a tentative agreement reached earlier this month between the company and the Association of Flight Attendants (AFA) on new contract terms covering the operation of long-range, single-aisle aircraft the company plans to acquire to complement its current fleet of wide-body aircraft serving Hawai’i from the U.S. West Coast.

On January 7, Hawaiian announced the signing of a Memorandum of Understanding with airframe manufacturer Airbus to acquire 16 new A321neo aircraft between 2017 and 2020, with rights to purchase an additional nine aircraft.

The company also announced that the acquisitions are contingent upon the signing of new agreements with its pilots’ and flight attendants’ unions covering operation of the new aircraft type.

Hawaiian’s pilots ratified a similar agreement between the company and the Air Line Pilots Association on January 28.

The fleet expansion is expected to generate roughly 1,000 new jobs at Hawaiian.

The long-range, single-aisle A321neo aircraft will complement Hawaiian’s existing fleet of
wide-body, twin-aisle aircraft used for long-haul flying between Hawai’i and the U.S. West Coast.

At 146-feet-long, the A321neo will seat approximately 190 passengers in a two-class configuration (First and Coach) and has a range of 3,650 nautical miles. The aircraft will offer the more comfortable seat widths found in the twin-aisle A330.

Copyright Photo: Andy Jung. Hawaiian currently operates the narrow-body Boeing 717 in the inter-island network. The new A321s will open some new thin long-range Mainland routes previously pioneered by Aloha Airlines and largely filled recently by Alaska Airlines with its Boeing 737-800s. The pictured Boeing 717-2BD N488HA (msn 55101) arrives at the Honolulu hub.

Hawaiian Airlines: 

Boeing’ (Chicago) leasing unit, Boeing Capital Corporation, announced additional deployments of 717s.

Australia’s largest regional airline, QANTAS Link, will receive an additional five leased 717s to add to its existing fleet of 13 of the twinjets that operate across Australia. Those deliveries will begin in late 2013 after the aircraft are refitted with upgraded interiors to include a full business class experience and new in-flight entertainment systems. The QANTAS Group has operated the 717s since 2002.

The 717s will be deployed on the Sydney-Canberra, Brisbane-Canberra and Melbourne-Canberra routes.

In Europe, startup carrier, Volotea (Barcelona and Venice), will increase its 717 fleet (below) in 2013 to a total 15 as it continues to develop its business model of offering point-to-point service to passengers between medium and small-sized European cities. Volotea began operations on April 5, 2012 with a network built around the 717 that is supported by a comprehensive Boeing solution for operations and training.

Volotea recently surpassed the million passenger mark enabled by its operation from 52 European airports, currently serving 97 city pairs.

There are more than 150 Boeing 717s in service today since the first airplane was delivered in 1999. The twinjet’s technology and fleet performance have earned it the distinction of being the world’s best jetliner serving the 100-passenger airline market.

Top Copyright Photo: Micheil Keegan/AirlinersGallery.com. Operated by Cobham Aviation Services Australia for QANTAS, Boeing 717-2K9 VH-NXH (msn 55055) prepares to land in Perth, Western Australia.

QANTAS Link-Cobham: 

Volotea: 

Bottom Copyright Photo: Keith Burton/AirlinersGallery.com. Boeing 717-2BL EI-EWI (msn 55170) climbs away from Southend after maintenance.

Delta Air Lines (Atlanta) has painted its first former AirTran Airways Boeing 717-200 in Delta colors. The first aircraft is N935AT. As previously reported, Delta will be leasing the entire AirTran fleet of 88 Boeing 717s from Southwest Airlines (Dallas). The new type will be introduced on September 19 between the Atlanta hub and Newark. The DL 717s will feature 12 seats in First Class, 15 seats in Economy Comfort and 83 seats in Economy.

Delta issued this statement with the photos:

We are excited to share some pictures of the first Delta 717 all dressed up in its new paint job. You’ll notice the ship number – 9564 – is a nod to the 717’s original MD-95 moniker. In total, Delta will be receiving 88 of these aircraft updated with bright new interiors. Here are the details of what you can expect when they take to the skies this fall:

First Class

• 12 Zodiac 6810 seats in a 2 x 2 configuration

• 37” of seat pitch

• 19.6” of seat width

• 110v AC and USB in-seat power

Economy Comfort

• 15 Zodiac 5751 seats at 34” pitch in a 2 x 3 layout

• “Slim-line” seat provides more personal space

• 4-way adjustable headrests

• 18.1” of seat width

• 110v AC and USB in-seat power

Economy

• 83 Zodiac 5751 seats at 31” average pitch in a 2 x 3 layout

• “Slim-line” seat provides more personal space

• 4-way adjustable headrests

• 18.1” of seat width

• 110v AC and USB in-seat power

Cabin Enhancements

• New cool-white fluorescent lighting

• Onboard Wi-Fi

• Updated dark blue carpet and “Sky Diamond” bulkhead laminate

• Redesigned Economy Comfort & Economy seat covers with additional comfort padding

• New placards and signage

Top Copyright Photos: Delta Air Lines.

Delta Air Lines: 

Video: Flight Simulation of a Delta 717 landing at Philadelphia:

Bottom Images: Delta Air Lines. Delta has been doing a great job of remembering its colorful past on social media.

Delta Air Lines (Atlanta) yesterday (January 6) as planned and previously announced, operated its last DC-9 flight. The pictured McDonnell Douglas DC-9-51 N773NC (msn 47775) (above) and crew had the honor of operating the very last DC-9 revenue flight as flight DL 2014 between Minneapolis/St. Paul and Atlanta.

With the cold temperatures in both MSP and ATL there was not the traditional water cannon salute.

N773NC was originally delivered to North Central Airlines on October 26, 1978. With the merger with Southern Airways it became Republic Airlines on July 1, 1979. With the Republic merger into Northwest Airlines it took on the red tail on October 1, 1986. Finally it joined the Delta fleet on October 29, 2008 with the Delta-Northwest merger.

Delta operated 13 DC-9-51s in January up to the last flight operated by N773NC. Five DC-9-51s were retired in 2013, six in 2012 and 10 in 2011 according to Airliners.net. One DC-9-51 will be reserved for a museum. Delta is reportedly holding on to two DC-9-51s as spare aircraft for a few days while the newer Boeing 717s replace the DC-9-51s. The other DC-9-51 will end up in the desert where they will be broken up for the parts and the recyclable metal.

Read the full story from the Associated Press: CLICK HERE

Read the full story from Time: CLICK HERE

In other news, Delta is expanding the number of routes served by the new Boeing 717. The airline is introducing the 717 from Atlanta to Augusta (April 1), Chicago (Midway) (April 1), Dallas (Love Field) (October 13), Fayetteville (April 1) and Houston (Bush Intercontinental) (April 1) per Airline Route.

Top Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-51 N773NC (msn 47775) faithfully served four airlines right up to the last flight. N773NC arrives at MSP.

Delta Air Lines: 

Airline and Aircraft Galleries: 

Bottom Copyright Photo: Tony Storck/AirlinersGallery.com. The Boeing 717 started operating to Baltimore/Washington (BWI) yesterday (January 6) with the DC-9-51 retirements. Delta painted the first ex-AirTran Airways Boeing 717 in September 2013, namely the pictured N935AT, which is pictured arriving at BWI. Delta is leasing the entire AirTran fleet of 88 Boeing 717s from Southwest Airlines (Dallas). The new type was introduced on September 19, 2013 between the Atlanta hub and Newark. The DL 717s feature 12 seats in First Class, 15 seats in Economy Comfort and 83 seats in Economy. N935AT was originally delivered to TWA as N402TW on April 11, 2000.

Delta Air Lines (Atlanta) today reported financial results for the December 2013 (fourth) quarter.  Key points include:

• Delta’s net income for the December 2013 quarter was $558 million, or $0.65 per diluted share, excluding special items¹.
• Delta’s net income for 2013 was $2.7 billion, excluding special items, a $1.1 billion increase over 2012.
• Delta’s GAAP net income was $8.5 billion, or $9.89 per diluted share, for the December 2013 quarter and $10.5 billion for 2013.  These results include an $8.0 billion non-cash gain associated with the reversal of the company’s tax valuation allowance.
• 2013 results include $506 million in profit sharing expense, including $119 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s financial goals.
• Delta generated nearly $5 billion of operating cash flow and $2.1 billion of free cash flow in 2013, allowing the company to reduce its adjusted net debt at the end of 2013 to $9.4 billion, contribute an incremental $250 million above required funding to its defined benefit pension plans, and return $350 million to shareholders through a combination of $100 million of dividends and $250 million of share repurchases.

Revenue Environment

Delta’s operating revenue improved 6 percent, or $474 million, in the December 2013 quarter compared to the December 2012 quarter.  Traffic increased 2.0 percent on a 2.9 percent increase in capacity.

• Passenger revenue increased 6.1 percent, or $451 million, compared to the prior year period.  Passenger unit revenue (PRASM) increased 3.0 percent year over year with a 4.0 percent improvement in yield.
• Cargo revenue decreased 1.0 percent, or $3 million, as higher freight volumes partially offset declining freight yields.
• O ther revenue increased 2.8 percent, or $26 million, driven by higher SkyMiles revenue.

Comparisons of revenue-related statistics are as follows:

Cost Performance

Total operating expense in the quarter increased 1.5 percent, or $125 million, year-over-year driven by higher volume and revenue-related expenses; the impact of operational, service and employee investments; and $56 million higher profit sharing expense.  These cost increases were partially offset by lower fuel expense and the savings from Delta’s structural cost initiatives.

Non-operating expense declined by $116 million as a result of prior year special items for early debt extinguishment and lower interest expense from debt reduction.  These items were partially offset by a $17 million negative impact from changes in foreign exchange rates.

Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex²), was 1.4 percent higher in the December 2013quarter on a year-over-year basis, driven by the impact of wage increases and operational and service investments.  GAAP consolidated CASM decreased 1.4 percent.

Fuel expense, excluding mark-to-market adjustments, declined $91 million as a result of lower market fuel prices and better settled hedge performance. Delta’s average fuel price³ was $3.05 per gallon for the December quarter, which includes $0.06 in settled hedge gains.  On a GAAP basis, fuel expense for the December quarter decreased $186 million year-over-year, driven by lower market fuel prices and mark-to-market gains on hedges in the current quarter.

Operations at the Trainer refinery produced a $46 million loss for the December quarter and a $116 million loss for the full year.  While lower crack spreads pressured results at the refinery, they also reduced market jet fuel prices and helped lower Delta’s overall fuel expense.

Cash Flow

Cash from operations during the December 2013 quarter was $1.2 billion, driven by the company’s December quarter profit and working capital initiatives, which were partially offset by the normal seasonal decline in advance ticket sales.  Cash from operations is net of a $250 million incremental contribution made by Delta to its defined benefit pension plans during the quarter.  The company generated $260 millionof free cash flow.

Capital expenditures during the December 2013 quarter were $900 million, including $835 million in fleet investments and $16 million for the purchase of 4 aircraft off lease. During the quarter, Delta’s net debt maturities and capital leases were $335 million.

In the December quarter, the company returned $200 million to shareholders.  On Nov. 26, the company paid $51 million to shareholders, which represents a $0.06 per share quarterly dividend.  In addition, the company repurchased 5.5 million shares at an average price of$27.39 for a total of $150 million.  The company has completed $250 million of the $500 million share repurchase plan authorized by Delta’s Board of Directors in May 2013.

Delta ended the quarter with adjusted net debt of $9.4 billion and the company has now achieved over $7.5 billion in net debt reduction since 2009.  This debt reduction strategy produced a $28 million year-over-year reduction in interest expense in the December quarter and a $153 million reduction for 2013. 

Reversal of Tax Valuation Allowance

Delta’s expectations for sustainable future profitability combined with its consistent and strong profitability over the past four years resulted in the reversal of the company’s tax valuation allowance in the December quarter.  The reversal of the tax valuation allowance resulted in a non-cash net gain of $8.0 billion in the December quarter.  Beginning in the March 2014 quarter, net income will be reduced to reflect a 39% tax rate; however, there will be no cash impact as Delta’s net operating loss carryforwards will offset cash taxes on more than $15 billion of future taxable income.

Special Items

Delta recorded a $7.9 billion special items gain in the December 2013 quarter, including:

• an $8.0 billion non-cash gain associated with the reversal of the Delta’s tax valuation allowance, as detailed above;
• a $92 million mark-to-market gain on fuel hedges; and
• a $160 million charge for facilities, fleet and other, including charges associated with Delta’s domestic fleet restructuring.

Delta recorded a $231 million special items charge in the December 2012 quarter, including:

• a $122 million charge for facilities, fleet and other, including charges associated with the company’s domestic fleet restructuring;
• a $106 million loss on early extinguishment of debt primarily due to the company’s Pacific route credit facility refinancing; and
• a $3 million mark-to-market loss on fuel hedges.

March 201 4 Quarter Guidance

Following are Delta’s projections for the March 2014 quarter:

Other Matters

Included with this press release are Delta’s unaudited Consolidated Statements of Operations for the three and twelve months ended Dec. 31, 2013 and 2012; a statistical summary for those periods; selected balance sheet data as of Dec. 31, 2013 and 2012; and a reconciliation of non-GAAP financial measures.

Copyright Photo: Tony Storck/AirlinersGallery.com. Delta is adding leased Boeing 717s to the fleet. Formerly painted in the Atlanta Falcons special livery with AirTran Airways, Boeing 717-2BD N891AT (msn 55043) is now plying the skies with Delta. N891AT lands at Baltimore/Washington.

Delta Air Lines (current): 

Delta Air Lines (historic): 

Southwest Airlines (Dallas) intends to retire the AirTran Airways name, brand and remaining international and domestic routes by the end of this year according to Southwest CEO Gary Kelly at his press conference announcing the first Southwest international routes.

Southwest acquired AirTran in 2011 and has been gradually transferring planes, people and routes to Southwest as it works on the integration.

It will be the end of the carrier and an era.

Copyright Photo: Brian McDonough/AirlinersGallery.com. With the lease transfer of the AirTran Boeing 717s to Delta Air Lines the special liveries are rapidly going away. AirTran was a big believer in the special schemes. Formerly with TWA, Boeing 717-231 N936AT (msn 55058) in the Indianapolis Colts NFL team colors arrives at Baltimore/Washington (BWI) in the past.

AirTran Airways: 

Remaining AirTran routes from the Atlanta hub:

Video: A previous AirTran TV Commercial:

Video: A company video celebrating its 10th Anniversary back in 2010:

Delta Air Lines (Atlanta) is planning to add two new routes from Los Angeles in June including the first Boeing 717 route. According to Airline Route the carrier will add Delta Connection daily service from LAX to Boise, Idaho with Embraer 175s starting on June 5.

The first Boeing 717 route from LAX will operate between LAX and Austin, Texas on a daily basis starting on June 16.

In other news, seasonal Delta Connection flights will be operated from the Minneapolis/St. Paul hub to Idaho Falls with Bombardier CRJ900s three days a week from June 7 through October 29 per Airline Route.

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 717-2BD N995AT (msn 55139) lands at the Atlanta hub.

Delta Air Lines: 

Delta Air Lines (Atlanta) this summer will continue its expansion at Los Angeles International Airport with new daily nonstop service to Austin, Texas, and Boise, Idaho, along with new daily nonstop service to San Salvador, El Salvador, pending government approval. Delta also has filed for approval to begin daily service between Los Angeles and Monterrey, Mexico.

Delta’s new Los Angeles service includes:

Twice daily nonstop service to Austin-Bergstrom International Airport

Daily nonstop service to Boise Airport

Daily nonstop service to El Salvador International Airport

Service from Los Angeles to Austin and San Salvador will be operated using Delta Boeing 717 and Boeing 737 aircraft, respectively. Service from Los Angeles to Boise and Monterrey will be operated by Delta Connection carrier Compass Airlines using two-class, 76-seat Bombardier CRJ900 aircraft.

With new service to Austin, Delta will now connect Los Angeles’ growing Silicon Beach tech and startup community with all the major tech centers in the United States, including: Boston, beginning June 5; New York; Oakland, Calif.; Portland, Oregon; Salt Lake City; San Francisco; San Jose, Calif.; Seattle/Tacoma; and now Austin.

Additionally, customers in Austin, Boise, Monterrey and San Salvador will soon have one-stop service to Tokyo-Narita, Tokyo-Haneda, and Sydney through Delta’s international gateway in Los Angeles.

Delta has made significant enhancements to its Los Angeles service both on the ground and in the air in the last few years. Travelers through Los Angeles will enjoy the benefits of the $229 million expansion and enhancement of Terminal 5 at Los Angeles International Airport. The current project will double the size of the ticketing lobby and screening checkpoints, open an exclusive, separate Sky Priority lobby and checkpoint, and include renovations to the Delta Sky Club and new baggage carousels. The project has already begun and is scheduled to take place in several phases with full completion in 2015.

Delta currently operates 130 flights to 43 destinations from LAX, and every flight offers BusinessElite/First Class and Economy Comfort seating. By this summer, Delta will operate more than 140 peak-day flights to LAX, including our new service. Nearly every domestic flight features Wi-Fi service.

Copyright Photo: Jay Selman/AirlinersGallery.com. Former AirTran Airways Boeing 717-23S N991AT (msn 55135) completes its final approach into the Atlanta hub.

Delta Air Lines (current): 

Delta Air Lines (Atlanta) has opened up additional Boeing 717 routes and markets according to Airline Route. The former AirTran Airways 717s are leased from Southwest Airlines.

From Atlanta:

Abilene (April 1)

Augusta (April 1)

Dallas (Love Field)  (October 13)

Fayettevile (April 1)

Gainesville (April 1)

Grand Rapids (April 1)

Houston (Busch Intercontinental) (April 1)

Lexington (April 5)

Memphis (April 5)

Mobile (April 1)

Myrtle Beach (April 1)

Tri Cities (June 5)

Wichita (June 7)

From Detroit:

Austin (May 2)

Buffalo (June 5)

Chicago (Midway) (March 31)

Green Bay (April 8)

Houston (Bush Intercontinental) April 9

Indianapolis (June 5)

Kansas City (April 1)

Nashville (June 5)

New York (JFK) (September 2)

New York (LaGuardia) (September 2)

Philadelphia (April 8)

Traverse City (May 2)

From New York (JFK):

Boston (September 2)

Tampa (September 2)

From New York (LaGuardia):

Miami (September 2)

Tampa (September 2)

From Los Angeles:

Austin (June 6)

Copyright Photo: Tony Storck/AirlinersGallery.com. Formerly painted in the special Atlanta Falcons livery, ex AirTran Airways Boeing 717-2BD N891AT (msn 55043) is now in full Delta colors and lands at Baltimore/Washington.

Delta Air Lines: 

Delta Air Lines (Atlanta) will begin operating the Boeing 717 on the New York (JFK)-Fort Lauderdale/Hollywood route starting on January 15, 2015  per Airline Route. This very competitive route used to be served with wide-body aircraft.

Copyright Photo: Jay Selman/AirlinersGallery.com. Former TWA/AirTran Airways Boeing 717-231 N933AT (msn 55071) arrives in Atlanta.

Delta Air Lines: 

Southwest Airlines (Dallas) adding to what we previously reported, today published dozens of new nonstop markets for Customers flying the carrier from Dallas Love Field and Ronald Reagan Washington National Airport. The schedule also includes new Southwest Airlines service to an additional Caribbean destination—Punta Cana, Dominican Republic—as well as to North America’s largest metropolitan area, Mexico City (replacing AirTran Airways).

New, nonstop service for Dallas Love Field:

Beginning October 13, 2014, Southwest will offer nonstop service between Dallas and:

Baltimore/Washington (three roundtrips a day)
Chicago Midway (five roundtrips a day, up to six as of November 2)
Denver (three roundtrips a day)
Las Vegas (three roundtrips a day, up to four as of November 2)
Los Angeles (three roundtrips a day, up to four as of November 2)
Orlando (two roundtrips a day, up to three as of November 2)
Washington Reagan National (three roundtrips a day, up to six as of November 2)

Beginning November 2, 2014, Southwest will offer nonstop service between Dallas and:

Atlanta (four roundtrips a day)
Fort Lauderdale/Hollywood (two roundtrips a day)
Nashville (two roundtrips a day)
New York LaGuardia (three roundtrips a day)
Phoenix (four roundtrips a day)
San Diego (two roundtrips a day)
Santa Ana/Orange County (one roundtrip a day)
Tampa (two roundtrips a day)

Southwest Airlines also announced today new nonstop service between Washington Reagan National Airport and both Akron/Canton and Indianapolis beginning on November 2, 2014, increasing the carrier’s service at Reagan National from a present day offering of 17 departures to 44 departures a day by year’s end to a total 14 destinations: Atlanta, Akron/Canton, Austin, Chicago Midway, Dallas Love Field, Houston Hobby, Fort Myers, Indianapolis, Kansas City, Milwaukee, Nashville, New Orleans, St. Louis, and Tampa.

Southwest Airlines also will add new nonstop service between Washington Dulles and both Las Vegas and San Diego, and to existing nonstop destinations of Chicago Midway and Denver.

Southwest Airlines continues its historic launch of international service with two additional destinations—Mexico City and Punta Cana, Dominican Republic—to be added on November 2, 2014, to the carrier’s network map of more than 90 destinations across five countries in North America and the Caribbean.

AirTran Airways will be fully integrated into Southwest Airlines by the end of 2014:

AirTran Airways flight 1 (Southwest 5001) will operate on Sunday, December 28, 2014, as the carrier’s final scheduled departure. The evening flight from Atlanta Hartsfield-Jackson International Airport to Tampa reprises the first flight the carrier operated on October 26, 1993 (as ValuJet). Southwest Airlines Company announced its acquisition of AirTran Airways in September 2010, and closed the transaction on May 2, 2011. The FAA awarded the Company a single operating certificate for the two carriers on March 1, 2012, and the Company plans to close 2014 with wholly owned subsidiary AirTran fully-integrated into Southwest Airlines serving a network of 93 destinations in five countries.

Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. Goodbye AirTran Airways. We now have the date when AirTran Airways will operate its last flight – December 28, 2014. The sun will set for AirTran in Tampa on that Sunday in December. Last flight 5001 is due to be operated with a 117-seat Boeing 717-200 (going to Delta on lease) departing ATL at 10:25 pm (2225) and arriving in TPA at 11:55 pm (2355). AirTran’s Boeing 717-2BD N996AT (msn 55140) soars into the sky at Washington’s Reagan National Airport (DCA).

AirTran Airways: 

Southwest Airlines: 

Blue1 (SAS Finland) (Helsinki) will see its nine Boeing 717s reduced by four aircraft according to the CEO Mikael Wångdahl as reported by Taloussanomat. The subsidiary of SAS may also be forced to eliminate up to 160 jobs (one half of its workforce). The cuts are being driven by lower demand and the mounting financial losses of parent Scandinavian Airlines-SAS (Stockholm). The cuts will start at the beginning of the winter season in November.

Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Boeing 717-2CM OH-BLI (msn 55061) prepares to depart from Dublin bound for Helsinki.

Blue1: 

Delta Air Lines (Atlanta) will move New York operations of its Delta Shuttle between Boston-Logan International Airport and New York’s LaGuardia Airport from the Marine Air Terminal to Terminal C beginning on November 2.

Boston Shuttle customers will enjoy new departure and arrival facilities at LaGuardia in Terminal C as well as upgraded service to Boeing 717 aircraft. The move is part of Delta’s strategy of adding bigger aircraft on more routes.

In 2012, Delta completed renovations to Terminal C as part of its $160 million investment to modernize and connect Terminals C and D at LaGuardia and opened a new 7,600 square foot Delta Sky Club featuring a full wall of windows with runway views. Customers will also have access to Delta’s five new restaurants with menus led by celebrity chefs, an expansive food hall and fresh markets.

Weekday flights depart near the top of the hour from 6 a.m. through 8 p.m. and will be operated by Delta using Boeing 717 aircraft which accommodates 110 passengers including 12 First Class seats in a two by two configuration, 15 Economy Comfort and 83 economy seats in a two by three configuration. Boston-based customers will now be able connect through Delta’s LaGuardia hub for access to 64 additional cities.

Delta Shuttle service began on its Boston to New York and Washington, D.C. to New York routes on September 1, 1991 after Delta completed the purchase of the Pan Am Shuttle. For nearly a quarter century the Delta Shuttle has been a core part of its New York operations. In June 2010, Delta added New York to Chicago-O’Hare service to the Shuttle operation.

Customers flying the Delta Shuttle between New York-LaGuardia and Boston will enjoy:

Convenient, top of the hour schedule for Delta Shuttle customers including 15 weekday departures

Check-in as close as 15 minutes prior to departure without bags or 30 with checked bags

Dedicated check-in counters exclusively for Shuttle customers

Expedited security screening with nearby access to TSA Pre-Check lanes for eligible passengers

Dedicated gates – located near the Delta Sky Club in LaGuardia’s Terminal C – with access to complimentary coffee and newspapers for all customers including The New York Times, The Wall Street Journal, USA Today, Financial Times and power at the gate

Advanced seat selection on all Delta Shuttle flights and complimentary access to Economy Comfort seats for SkyMiles Gold, Platinum and Diamond Medallion members at the time of booking

Two classes of service with complimentary upgrades for SkyMiles Medallion members when available.
Complimentary onboard snacks including bagels in the morning before 10:30 a.m. or gourmet nut mix for flights after 10:30 a.m.

Complimentary beverages in-flight including craft beer and wine in all classes of service

Cocktails available for purchase in economy

Access to in-flight Wi-Fi on all Shuttle flights

Access to power from every seat on the Boeing 717 aircraft

The November 2014 schedule between New York–LaGuardia and Boston is below.

Delta Shuttle flights between New York and Chicago-O’Hare International Airport or Washington Reagan-National Airport will continue to operate from LaGuardia’s Marine Air Terminal operated by Delta Connection partner, Shuttle America using Embraer E175 aircraft.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Ex-AirTran Airways Boeing 717-2BD N995AT (msn 55139), now with Delta, arrives at Washington (Dulles).

Delta Air Lines (current):