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Continental Joins Star Alliance, Better Positions Airline To Deliver A Broader Network (CAL) -

10/27/2009 - Continental Airlines (NYSE:CAL) officially joined the Star Alliance on Tuesday. The move will give passengers more options and the airline more places to expand. The Star Alliance has 25 members, which includes United, US Airways, Lufthansa and Air Canada. Continental left the SkyTeam alliance over a year ago after Delta and Northwest announced they would merge, reducing Continental to "junior partner status" and preventing the airline from having the kind of input it wanted, according to COO Jeff Smisek. Chairman and CEO Larry Kellner said, "Continental's transition to Star Alliance is one of the most important strategic moves we have accomplished in my career at Continental. Our membership in Star Alliance positions us to deliver a broader network to our customers, and to achieve better business results and a stronger future for my co-workers, our customers and communities as a result of the benefits from participating in the world's largest airline alliance."

Write to Chip Brian at cbrian@tradethetrend.com

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Companies: Continental Airlines, Inc. (CAL)

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American Express Reports Third Quarter Earnings from Continuing Operations of $642 Million; EPS of

American Express Company (NYSE: AXP) today reported third-quarter income from continuing operations of $642 million, down 25 percent from $861 million a year ago. Diluted earnings per share from continuing operations were $0.54, down 27 percent from $0.74 a year ago.

(Millions, except per share amounts)
                                                          Quarters Ended            Percentage   Nine Months Ended           Percentage
                                                          September 30,             Inc/(Dec)    September 30,               Inc/(Dec)
                                                          2009         2008                      2009          2008
Total Revenues Net of Interest Expense                    $  6,016     $  7,164     (16   )%     $  18,034     $  21,859     (17   )%
Income From Continuing Operations                         $  642       $  861       (25   )%     $  1,427      $  2,565      (44   )%
Loss From Discontinued Operations                         $  (2    )   $  (46   )   (96   )%     $  (13    )   $  (106   )   (88   )%
Net Income                                                $  640       $  815       (21   )%     $  1,414      $  2,459      (42   )%
Earnings Per Common Share - Diluted:
Income From Continuing Operations Attributable to Common  $  0.54      $  0.74      (27   )%     $  0.95       $  2.20       (57   )%
Shareholders(1)
Loss From Discontinued Operations                         $  (0.01 )   $  (0.04 )   (75   )%     $  (0.01  )   $  (0.10  )   (90   )%
Net Income Attributable to Common Shareholders(1)         $  0.53      $  0.70      (24   )%     $  0.94       $  2.10       (55   )%
Average Diluted Common Shares Outstanding                    1,181        1,158     2     %         1,166         1,161      -     %
Return on Average Equity                                     11.7  %      27.8  %                   11.7   %      27.8   %
Return on Average Common Equity                              10.4  %      27.6  %                   10.4   %      27.6   %

The third quarter results included a $180 million ($113 million after-tax) non-recurring benefit associated with the company's accounting for a net investment in consolidated foreign subsidiaries (discussed in more detail later). Excluding that benefit, adjusted diluted earnings per share from continuing operations were $0.44.(2)

Net income totaled $640 million for the quarter, down 21 percent from $815 million a year ago. Diluted per-share net income of $0.53 was down 24 percent from $0.70 a year ago. Excluding the non-recurring benefit mentioned above, adjusted diluted per-share net income was $0.43.(2)

Consolidated revenues net of interest expense declined 16 percent to $6.0 billion, down from $7.2 billion a year ago.

Consolidated provisions for losses totaled $1.2 billion, down 13 percent from $1.4 billion a year ago.

Consolidated expenses totaled $3.9 billion, down 17 percent from $4.7 billion a year ago, reflecting in part the results of the company's reengineering initiatives.

At the end of the quarter, the company's tier-one risk based capital ratio was 9.7 percent. Its tier-one common risk based ratio was 9.7 percent, which compared favorably to the regulatory benchmark(3) of 4 percent.

The company's return on average equity (ROE) was 11.7 percent, down from 27.8 percent a year ago. Return on average common equity (ROCE), was 10.4 percent, down from 27.6 percent a year ago.

"Our results showed further progress in navigating through the most difficult economic environment in decades," said Kenneth I. Chenault, chairman and chief executive officer.

"We generated substantial earnings this quarter due, in part, to the reengineering efforts that have successfully lowered our expense base. Just as important, we stepped up investments in the business with a focus on: premium cobranded products, charge card offerings and brand building initiatives in the U.S. and select international markets. We funded these investments, as expected, from the benefits we realized from better credit metrics during the past several months.

"While third quarter revenues declined because cardmember spending and loan volumes were down from year-ago levels, overall billings have stabilized during the last few months and we saw indications that spending by corporate cardmembers is beginning to pick up.

"During the quarter, we also expanded our deposit gathering activities, raising a net $4.1 billion as part of our funding strategy based on staying liquid at a time when the credit markets remain volatile.

"At the start of the year the economy appeared to be in a freefall, the drop in cardmember spending was accelerating and loan loss rates were rising rapidly. Today, while there is still reason to be cautious about high unemployment levels, we are seeing broad-based improvements in credit quality, the trends in cardmember spending are encouraging and there are signs that the recession may be approaching an end.

"Our three priorities remain: staying liquid, staying profitable and investing selectively for growth. However, in anticipation of sequential improvement in our loan loss provision during the fourth quarter, we are focused more and more on the third priority -- investing in the business to make sure we capitalize on growth opportunities."

During the third quarter, the translation effects of a comparatively stronger U.S. dollar contributed to lower non-U.S. revenues, provisions and expenses, compared to the year-ago quarter.

Discontinued operations

Discontinued operations for the third quarter generated a loss of $2 million compared with a loss of $46 million during the year-ago period.

Segment Results

U.S. Card Services reported third-quarter net income of $109 million, compared to net income of $244 million a year ago.

Total revenues net of interest expense for the third quarter decreased 16 percent to $2.9 billion, driven by reduced cardmember spending, lower securitization income, net and lower loan balances.

Provisions for losses totaled $850 million, a decrease of 10 percent from $941 million a year ago. The decrease reflected lower loans and receivables, as well as recent improvements in credit trends in both the charge and lending portfolios. On a managed basis(4), the net loan write-off rate was 8.9 percent, down from 10.0 percent in the second quarter and up from 5.9 percent a year ago. Owned net write-off rate was 9.8 percent in the quarter, down from 10.3 percent in the second quarter and up from 6.1 percent a year ago.

Total expenses decreased 11 percent. Marketing, promotion, rewards and cardmember services expenses decreased 16 percent from the year-ago period, reflecting lower rewards costs and reduced investments in marketing and promotion. Salaries and employee benefits and other operating expenses decreased 5 percent from year-ago levels, primarily due to the benefits of ongoing reengineering initiatives.

International Card Services reported third-quarter net income of $127 million, compared to $67 million a year ago.

Total revenues net of interest expense decreased 7 percent to $1.1 billion, primarily driven by reduced cardmember spending and lower loan balances.

Provisions for losses totaled $250 million, a decrease of 21 percent from $316 million a year ago, primarily reflecting a lower level of loans and receivables.

Total expenses decreased 16 percent. Marketing, promotion, rewards and cardmember services expenses decreased 22 percent from year-ago levels, reflecting reduced marketing investments and lower rewards costs. Salaries and employee benefits and other operating expenses decreased 11 percent from year-ago levels, primarily due to the benefits of ongoing reengineering initiatives.

Global Commercial Services reported a third quarter net income of $116 million, compared to $134 million a year ago.

Total revenues net of interest expense decreased 17 percent to $997 million, reflecting lower travel commissions and fees and reduced spending by corporate cardmembers compared to year ago levels.

Total expenses decreased 17 percent. Marketing, promotion, rewards and cardmember services expenses decreased 28 percent from the year-ago period, primarily reflecting lower rewards costs. Salaries and employee benefits and other operating expenses decreased 16 percent from the year-ago period, primarily due to the benefits of ongoing reengineering initiatives.

Global Network & Merchant Services reported third-quarter net income of $240 million, compared to $258 million a year ago.

Total revenues net of interest expense decreased 10 percent to $963 million, primarily reflecting lower merchant-related revenues driven by a decrease in global card billed business.

Total expenses decreased 11 percent. Marketing and promotion expenses increased 5 percent from the year-ago period, primarily reflecting higher brand-related marketing investments. Salaries and employee benefits and other operating expenses decreased 15 percent, primarily due to the benefits of ongoing reengineering initiatives.

Corporate and Other reported a third-quarter net income of $50 million, compared with net income of $158 million a year ago. The results for both periods reflected the recognition of $220 million ($136 million after-tax) for the previously announced MasterCard and Visa settlements.

This year's quarter included the previously mentioned non-recurring $180 million ($113 million after-tax) benefit associated with the company's accounting for a net investment in consolidated foreign subsidiaries. Of this benefit, $135 million ($85 million after-tax) represents a correction of an error related to the accounting for cumulative translation adjustments in prior periods. The impact of the incorrect accounting was not material to any of the quarterly or annual periods in which it occurred. The error resulted in a $60 million ($38 million after-tax) income overstatement in the second quarter 2009, a $135 million ($85 million after-tax) income understatement in the fourth quarter 2008 and minimal amounts for all other periods affected dating back to third quarter 2007, when the incorrect accounting originated. A non-recurring $45 million ($28 million after-tax) related benefit was also recorded in the current quarter as a result of changes in the fair value of certain foreign exchange forward contracts that are economic hedges to foreign currency exposures of net investments in consolidated foreign subsidiaries.

These amounts were more than offset by items that included higher tax expense due primarily to a revision in the company's estimated annual effective tax rate and increased funding costs.

American Express Company is a leading global payments and travel company founded in 1850. For more information, visit www.americanexpress.com.

***

The 2009 third Quarter Earnings Supplement will be available today on the American Express web site at http://ir.americanexpress.com. An investor conference call will be held at 5:00 p.m. (ET) today to discuss third-quarter earnings results. Live audio and presentation slides for the investor conference call will be available to the general public at the same web site. A replay of the conference call will be available later today at the same web site address.

EXHIBIT 1
AMERICAN EXPRESS COMPANY
U.S. Card Services
(Billions, except percentages)
                                         Quarter Ended          Quarter Ended     Quarter Ended
                                         September 30, 2009     June 30, 2009     September 30, 2008
Cardmember lending - owned basis (A):
Average Loans                            $23.4                  $26.5             $36.3
Net write-off rate                       9.8                %   10.3          %   6.1       %
Cardmember lending - managed basis (B):
Average Loans                            $52.9                  $55.1             $64.6
Net write-off rate                       8.9                %   10.0          %   5.9       %
(A) "Owned," a GAAP basis measurement, reflects only cardmember
loans included in the company's Consolidated Balance Sheets.
(B) The managed basis presentation assumes that there have been no
off-balance sheet securitization transactions, i.e., all securitized
cardmember loans and related income effects are reflected as if they
were in the company's balance sheets and income statements,
respectively. The difference between the "owned basis" (GAAP)
information and "managed basis" information is attributable to the
effects of securitization activities. The company presents U.S. Card
Services information on a managed basis because that is the way the
company's management views and manages the business. Management
believes that a full picture of trends in the company's cardmember
lending business can only be derived by evaluating the performance
of both securitized and non-securitized cardmember loans. Management
also believes that use of a managed basis presentation presents a
more comprehensive portrayal of the key dynamics of the cardmember
lending business. Irrespective of the on and off-balance sheet
funding mix, it is important for management and investors to see
metrics for the entire cardmember lending portfolio because they are
more representative of the economics of the aggregate cardmember
relationships and ongoing business performance and trends over time.
It is also important for investors to see the overall growth of
cardmember loans and related revenue in order to evaluate market
share. These metrics are significant in evaluating the company's
performance and can only be properly assessed when all
non-securitized and securitized cardmember loans are viewed together
on a managed basis. The company does not currently securitize
international loans.

(1) Represents income from continuing operations or net income, as applicable, less:

(i) accelerated preferred dividend accretion of $212 million for the nine months ended September 30, 2009 due to the repurchase of $3.39 billion of preferred shares issued as part of the Capital Purchase Program (CPP),

(ii) preferred shares dividends and related accretion of $94 million for the nine months ended September 30, 2009, and

(iii) earnings allocated to participating share awards and other items of $8 million and $5 million for the three-months ended September 30, 2009 and 2008, respectively, and $13 million and $14 million for the nine months ended September 30, 2009 and 2008, respectively.

(2) Management believes the adjusted per share numbers provide useful metrics to evaluate the ongoing operating performance of the company.

(3) The regulatory benchmark of 4 percent was used by the Federal Reserve within the Supervisory Capital Assessment Program earlier this year.

(4) Please refer to the information set forth on Exhibit I for further discussion of the owned and managed basis presentations.

Forward Looking Statements:

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address the Company's expected business and financial performance, among other matters, contain words such as "believe," "expect," "anticipate," "optimistic," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the Company's ability to manage credit risk related to consumer debt, business loans, merchants and other credit trends, which will depend in part on (i) the economic environment, including, among other things, the housing market, the rates of bankruptcies and unemployment, which can affect spending on card products, debt payments by individual and corporate customers and businesses that accept the Company's card products, (ii) the effectiveness of the Company's credit models and (iii) the impact of recently enacted statutes and proposed legislative initiatives affecting the credit card business, including, without limitation, The Credit Card Accountability Responsibility and Disclosure Act of 2009; the impact of the Company's efforts to deal with delinquent cardmembers in the current challenging economic environment, which may affect payment patterns of cardmembers and the perception of the Company's services, products and brands; the Company's near-term write-off rates, including those for the fourth quarter of 2009, which will depend in part on changes in the level of the Company's loan balances, delinquency rates of cardmembers, unemployment rates and the volume of bankruptcies; differences between owned (i.e., GAAP) and managed write-off rates, which can be impacted by factors such as the various types of customer accounts in the portfolios of the Company and the lending securitization trust; consumer and business spending on the Company's credit and charge card products and Travelers Cheques and other prepaid products and growth in card lending balances, which depend in part on the economic environment, and the ability to issue new and enhanced card and prepaid products, services and rewards programs, and increase revenues from such products, attract new cardmembers, reduce cardmember attrition, capture a greater share of existing cardmembers' spending, and sustain premium discount rates on its card products in light of regulatory and market pressures, increase merchant coverage, retain cardmembers after low introductory lending rates have expired, and expand the Global Network Services business; the write-off and delinquency rates in the medium- to long-term of cardmembers added by the Company during the past few years, which could impact their profitability to the Company; the Company's ability to effectively implement changes in the pricing of certain of its products and services; fluctuations in interest rates (including fluctuations in benchmarks, such as LIBOR and other benchmark rates, and credit spreads), which impact the Company's borrowing costs, return on lending products and the value of the Company's investments; the actual amount to be spent by the Company on marketing, promotion, rewards and cardmember services based on management's assessment of competitive opportunities and other factors affecting its judgment, and during the remainder of 2009, the extent of provision benefit, if any, from lower than expected write offs; the ability to control and manage operating, infrastructure, advertising and promotion expenses as business expands or changes, including the ability to accurately estimate the provision for the cost of the Membership Rewards program; fluctuations in foreign currency exchange rates; the Company's ability to grow its business and generate excess capital and earnings in a manner and at levels that will allow the Company to return a portion of capital to shareholders, which will depend on the Company's ability to manage its capital needs, and the effect of business mix, acquisitions and rating agency and regulatory requirements, including those arising from the Company's status as a bank holding Company; the ability of the Company to meet its objectives with respect to the growth of its brokered retail CD program, brokerage sweep account program and the direct deposit initiative; the success of the Global Network Services business in partnering with banks in the United States, which will depend in part on the extent to which such business further enhances the Company's brand, allows the Company to leverage its significant processing scale, expands merchant coverage of the network, provides Global Network Services' bank partners in the United States the benefits of greater cardmember loyalty and higher spend per customer, and merchant benefits such as greater transaction volume and additional higher spending customers; the ability of the Global Network Services business to meet the performance requirements called for by the Company's settlements with MasterCard and Visa; trends in travel and entertainment spending and the overall level of consumer confidence; the uncertainties associated with business acquisitions, including, among others, the failure to realize anticipated business retention, growth and cost savings, as well as the ability to effectively integrate the acquired business into the Company's existing operations; the success, timeliness and financial impact (including costs, cost savings, and other benefits, including increased revenues), and beneficial effect on the Company's operating expense to revenue ratio, both in the short-term (including during 2009) and over time, of reengineering initiatives being implemented or considered by the Company, including cost management, structural and strategic measures such as vendor, process, facilities and operations consolidation, outsourcing (including, among others, technologies operations), relocating certain functions to lower-cost overseas locations, moving internal and external functions to the internet to save costs, and planned staff reductions relating to certain of such reengineering actions; the Company's ability to reinvest the benefits arising from such reengineering actions in its businesses; bankruptcies, restructurings, consolidations or similar events (including, among others, the Delta Air Lines/Northwest Airlines merger) affecting the airline or any other industry representing a significant portion of the Company's billed business, including any potential negative effect on particular card products and services and billed business generally that could result from the actual or perceived weakness of key business partners in such industries; the triggering of obligations to make payments to certain co-brand partners, merchants, vendors and customers under contractual arrangements with such parties under certain circumstances; a downturn in the Company's businesses and/or negative changes in the Company's and its subsidiaries' credit ratings, which could result in contingent payments under contracts, decreased liquidity and higher borrowing costs; the ability of the Company to satisfy its liquidity needs and execute on its funding plans, which will depend on, among other things, the Company's future business growth, its credit ratings, market capacity and demand for securities offered by the Company, performance by the Company's counterparties under its bank credit facilities and other lending facilities, regulatory changes, including changes to the policies, rules and regulations of the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of San Francisco, the Company's ability to securitize and sell receivables and the performance of receivables previously sold in securitization transactions and the Company's ability to meet the criteria for participation in certain liquidity facilities and other funding programs, including the Commercial Paper Funding Facility and the Temporary Liquidity Guarantee Program, being made available through the Federal Reserve Bank of New York, the Federal Deposit Insurance Corporation and other federal departments and agencies; accuracy of estimates for the fair value of the assets in the Company's investment portfolio and, in particular, those investments that are not readily marketable, including the valuation of the interest-only strip relating to the Company's lending securitizations and the ability of our charge card and lending trusts to maintain excess spreads at levels sufficient to avoid material set-asides or early amortization of our charge card and lending securitizations, which will depend on various factors such as income derived from the relevant portfolios and their respective credit performances; the increase in excess spread resulting from the designation of discount option receivables with respect to the American Express Credit Account Master Trust, which will depend in part on the monthly principal payment rate posted to accounts in, and the credit performance of, the securitized lending portfolio; the Company's ability to avoid material losses on its investment portfolio, including its investments in state and municipal obligations, the issuers of which could be adversely affected by the challenging economic environment; the Company's ability to invest in technology advances across all areas of its business to stay on the leading edge of technologies applicable to the payment industry; the Company's ability to attract and retain executive management and other key employees; the Company's ability to protect its intellectual property rights (IP) and avoid infringing the IP of other parties; the potential negative effect on the Company's businesses and infrastructure, including information technology, of terrorist attacks, natural disasters or other catastrophic events in the future; political or economic instability in certain regions or countries, which could affect lending and other commercial activities, among other businesses, or restrictions on convertibility of certain currencies; changes in laws or government regulations; the potential impact of The Credit Card Accountability Responsibility and Disclosure Act of 2009 and regulations recently adopted by federal bank regulators relating to certain credit and charge card practices, including, among others, the imposition by card issuers of interest rate increases on outstanding balances and the allocation of payments in respect of outstanding balances with different interest rates, which could have an adverse impact on the Company's net income; accounting changes, including the Financial Accounting Standards Board's recent adoption of changes to the accounting of off-balance sheet activities or other potential regulatory interpretations in this area, which, when effective, will result in the Company's having to consolidate the assets and liabilities of the lending securitization trust, thereby requiring the Company to reestablish loss reserves, which could reduce the Company's regulatory capital ratios and/or change the presentation of its financial statements; outcomes and costs associated with litigation and compliance and regulatory matters; and competitive pressures in all of the Company's major businesses. A further description of these and other risks and uncertainties can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 3009, and the Company's other reports filed with the SEC.

All information in the following tables is presented on a basis prepared in accordance with U.S. generally accepted accounting principles (GAAP), unless otherwise indicated.

(Preliminary)
American Express Company
Consolidated Statements of Income
(Millions)
                                                                    Quarters Ended                        Nine Months Ended
                                                                    September 30,             Percentage  September 30,               Percentage
                                                                    2009         2008         Inc/(Dec)   2009          2008          Inc/(Dec)
Revenues
Non-interest revenues
Discount revenue                                                    $  3,373     $  3,848     (12 )  %    $  9,744      $  11,557     (16 )   %
Net card fees                                                          538          541       (1  )          1,602         1,614      (1  )
Travel commissions and fees                                            383          499       (23 )          1,155         1,566      (26 )
Other commissions and fees                                             448          573       (22 )          1,340         1,785      (25 )
Securitization income, net                                             71           200       (65 )          210           871        (76 )
Other                                                                  449          553       (19 )          1,569         1,591      (1  )
Total non-interest revenues                                            5,262        6,214     (15 )          15,620        18,984     (18 )
Interest income
Interest and fees on loans                                             1,059        1,560     (32 )          3,432         4,795      (28 )
Interest and dividends on investment securities                        229          200       15             579           603        (4  )
Deposits with banks and other                                          9            74        (88 )          48            235        (80 )
Total interest income                                                  1,297        1,834     (29 )          4,059         5,633      (28 )
Interest expense
Deposits                                                               109          109       -              299           381        (22 )
Short-term borrowings                                                  2            114       (98 )          36            411        (91 )
Long-term debt and other                                               432          661       (35 )          1,310         1,966      (33 )
Total interest expense                                                 543          884       (39 )          1,645         2,758      (40 )
Net interest income                                                    754          950       (21 )          2,414         2,875      (16 )
Total revenues net of interest expense                                 6,016        7,164     (16 )          18,034        21,859     (17 )
Provisions for losses
Charge card                                                            143          351       (59 )          716           937        (24 )
Cardmember lending                                                     989          958       3              3,706         3,304      12
Other                                                                  46           50        (8  )          143           153        (7  )
Total provisions for losses                                            1,178        1,359     (13 )          4,565         4,394      4
Total revenues net of interest expense after provisions for losses     4,838        5,805     (17 )          13,469        17,465     (23 )
Expenses
Marketing and promotion                                                504          649       (22 )          1,201         1,906      (37 )
Cardmember rewards                                                     983          1,132     (13 )          2,858         3,301      (13 )
Cardmember services                                                    132          148       (11 )          374           402        (7  )
Salaries and employee benefits                                         1,261        1,465     (14 )          3,884         4,430      (12 )
Professional services                                                  575          608       (5  )          1,693         1,764      (4  )
Occupancy and equipment                                                374          398       (6  )          1,124         1,185      (5  )
Communications                                                         105          118       (11 )          315           348        (9  )
Other, net                                                             (14   )      209       #              140           816        (83 )
Total                                                                  3,920        4,727     (17 )          11,589        14,152     (18 )
Pretax income from continuing operations                               918          1,078     (15 )          1,880         3,313      (43 )
Income tax provision                                                   276          217       27             453           748        (39 )
Income from continuing operations                                      642          861       (25 )          1,427         2,565      (44 )
Loss from discontinued operations, net of tax                          (2    )      (46   )   (96 )          (13    )      (106   )   (88 )
Net income                                                          $  640       $  815       (21 )       $  1,414      $  2,459      (42 )
Income from continuing operations attributable to common            $  634       $  856       (26 )       $  1,108      $  2,551      (57 )
shareholders (A)
Net income attributable to common shareholders (A)                  $  632       $  810       (22 )       $  1,095      $  2,445      (55 )
# - Denotes a variance of more than 100%.
(A) Represents income from continuing operations or net income,
as applicable, less (i) accelerated preferred dividend accretion of
$212 million for the nine months ended September 30, 2009 due to the
repurchase of $3.39 billion of preferred shares issued as part of
the Capital Purchase Program (CPP), (ii) preferred shares dividends
and related accretion of $94 million for the nine months ended
September 30, 2009, and (iii) earnings allocated to participating
share awards and other items of $8 million and $5 million for the
three months ended September 30, 2009 and 2008, respectively, and
$13 million and $14 million for the nine months ended September 30,
2009 and 2008, respectively.
(Preliminary)
American Express Company
Condensed Consolidated Balance
Sheets
(Billions)
                                            September 30,  December 31,
                                            2009           2008
Assets
Cash                                        $      19      $      21
Accounts receivable                                35             37
Investment securities                              24             13
Loans                                              29             41
Other assets                                       13             14
Total assets                                $      120     $      126
Liabilities and Shareholders' Equity
Customer deposits                           $      24      $      15
Short-term borrowings                              2              9
Long-term debt                                     53             60
Other liabilities                                  27             30
Total liabilities                                  106            114
Shareholders' equity                               14             12
Total liabilities and shareholders' equity  $      120     $      126
(Preliminary)
American Express Company
Financial Summary
(Millions)
                                                     Quarters Ended                         Nine Months Ended
                                                     September 30,             Percentage   September 30,               Percentage
                                                     2009         2008         Inc/(Dec)    2009          2008          Inc/(Dec)
Total revenues net of interest
expense
U.S. Card Services                                   $  2,903     $  3,459     (16 )   %    $  8,782      $  10,774     (18 )   %
International Card Services                             1,148        1,232     (7  )           3,262         3,683      (11 )
Global Commercial Services                              997          1,200     (17 )           2,944         3,652      (19 )
Global Network & Merchant Services                      963          1,071     (10 )           2,709         3,157      (14 )
                                                        6,011        6,962     (14 )           17,697        21,266     (17 )
Corporate & Other,
including adjustments and eliminations                  5            202       (98 )           337           593        (43 )
CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE  $  6,016     $  7,164     (16 )        $  18,034     $  21,859     (17 )
Pretax income (loss) from
continuing operations
U.S. Card Services                                   $  139       $  364       (62 )        $  (243   )   $  1,092      #
International Card Services                             127          1         #               184           191        (4  )
Global Commercial Services                              170          191       (11 )           397           735        (46 )
Global Network & Merchant Services                      358          397       (10 )           1,083         1,187      (9  )
                                                        794          953       (17 )           1,421         3,205      (56 )
Corporate & Other                                       124          125       (1  )           459           108        #
PRETAX INCOME FROM CONTINUING OPERATIONS             $  918       $  1,078     (15 )        $  1,880      $  3,313      (43 )
Net income (loss)
U.S. Card Services                                   $  109       $  244       (55 )        $  (116   )   $  788        #
International Card Services                             127          67        90              230           315        (27 )
Global Commercial Services                              116          134       (13 )           273           512        (47 )
Global Network & Merchant Services                      240          258       (7  )           713           780        (9  )
                                                        592          703       (16 )           1,100         2,395      (54 )
Corporate & Other                                       50           158       (68 )           327           170        92
Income from continuing operations                       642          861       (25 )           1,427         2,565      (44 )
Loss from discontinued operations, net of tax           (2    )      (46   )   (96 )           (13    )      (106   )   (88 )
NET INCOME                                           $  640       $  815       (21 )        $  1,414      $  2,459      (42 )
# - Denotes a variance of more than 100%.
(Preliminary)
American Express Company
Financial Summary (continued)
                                                          Quarters Ended               Nine Months Ended
                                                          September 30,     Percentage September 30,     Percentage
                                                          2009     2008     Inc/(Dec)  2009     2008     Inc/(Dec)
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations attributable to common  $ 0.54   $ 0.74   (27) %     $ 0.95   $ 2.21   (57)  %
shareholders
Loss from discontinued operations                         -        (0.04)   #          (0.01)   (0.09)   (89)
Net income attributable to common shareholders            $ 0.54   $ 0.70   (23) %     $ 0.94   $ 2.12   (56)  %
Average common shares outstanding (millions)              1,178    1,154    2    %     1,164    1,154    1     %
DILUTED
Income from continuing operations attributable to common  $ 0.54   $ 0.74   (27) %     $ 0.95   $ 2.20   (57)  %
shareholders
Loss from discontinued operations                         (0.01)   (0.04)   (75)       (0.01)   (0.10)   (90)
Net income attributable to common shareholders            $ 0.53   $ 0.70   (24) %     $ 0.94   $ 2.10   (55)  %
Average common shares outstanding (millions)              1,181    1,158    2    %     1,166    1,161    -     %
Cash dividends declared per common share                  $ 0.18   $ 0.18   -    %     $ 0.54   $ 0.54   -     %
Selected Statistical Information
                                                          Quarters Ended               Nine Months Ended
                                                          September 30,     Percentage September 30,     Percentage
                                                          2009     2008     Inc/(Dec)  2009     2008     Inc/(Dec)
Return on average equity (A)                              11.7%    27.8%               11.7%    27.8%
Return on average common equity (A)                       10.4%    27.6%               10.4%    27.6%
Return on average tangible common equity (A)              13.5%    34.2%               13.5%    34.2%
Common shares outstanding (millions)                      1,189    1,160    3    %     1,189    1,160    3     %
Book value per common share                               $ 11.72  $ 10.79  9    %     $ 11.72  $ 10.79  9     %
Shareholders' equity (billions)                           $ 13.9   $ 12.5   11   %     $ 13.9   $ 12.5   11    %
# - Denotes a variance of more than 100%.
(A) Refer to Appendix I for components of return on average
equity, return on average common equity and return on average
tangible common equity.

To view full financial tables, go to http://ir.americanexpress.com.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6080452&lang=en

SOURCE: American Express Company

American Express Company 
Media: 
Joanna Lambert, 212-640-9668 
joanna.g.lambert@aexp.com 
or 
Michael O'Neill, 212-640-5951 
mike.o'neill@aexp.com 
or 
Investors/Analysts: 
Malkah Groner, 212-640-6657 
malkah.y.groner@aexp.com 
or 
Ron Stovall, 212-640-5574 
ronald.stovall@aexp.com

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Companies: American Express Co. (AXP)

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Egencia Releases 2010 Forecast and Annual Hotel Negotiability Index for Corporate Travel - Zibb.com

    <<
    Index Shows Corporations to Retain Hotel Buying Power into 2010




    >>

Egencia®, an Expedia, Inc. company, today unveiled its 2010 Corporate Travel Forecast and Hotel Negotiability Index, finding that average ticket prices (ATPs) for corporate travelers to top business travel destinations are expected to increase globally, with a 5 to 10 percent increase anticipated in key North American cities. Egencia's Hotel Negotiability Index looks at city-specific data to help business decision makers gauge travel program opportunities while planning. This year's Index analyzes corporations' buying power in nearly 40 global cities.

The study evaluates global industry trends, macroeconomic factors, in-depth research of supplier markets and capacity to deliver a current report on air, hotel and car rental trends in both domestic and international destinations.

"Overall, we expect to see some year-over-year recovery of business travel in 2010 as economies stabilize around the world," said Rob Greyber, President of Egencia. "The resulting demand coupled with suppliers maintaining capacity discipline is expected to push air prices higher in many business destinations."

    <<

    North America
    >>

Despite continued depressed demand for front of cabin travel, increased low-cost competition and ancillary fees contributing downward pressure on ATPs, several factors are likely to push corporate travel prices upward, including: the post-recession economy impacting corporate travel demand, airlines maintaining capacity discipline, recent airline industry mergers, and the persistent inflation risk.

Conversely, average daily rates (ADRs) for business travelers are expected to stay flat or decrease up to 5 percent year-over-year for key cities. Though pent-up demand, renewed strength in certain business sectors and increased meetings/conference spend are expected to contribute upward pressure on pricing, lower air capacity bringing fewer travelers is likely to maintain or decrease ADRs. Additionally, the abundance of short term hotel supply from 2008 - 2009, rising air prices and corporate contracts leveraging reduced rates already in place for 2010 will add further downward pressure.

Charts below illustrate year-over-year 2010 vs. 2009 ATP and ADR figures in the local currency in selected business travel destinations around the world for North American points of sale.

    <<


    >>

North America

    <<
    Destination      ATP YoY    ADR YoY
    -----------      -------    -------
    Atlanta           -1%          3%
    Boston             2%          2%
    Calgary            3%         -1%
    Chicago            3%         -2%
    Dallas             5%         -3%
    Denver             9%         -5%
    Houston            6%         -4%
    Los Angeles        4%         -1%
    Minneapolis/St.
     Paul              5%         -1%
    ---------------   ---         ---
    >>

    <<
    Destination      ATP YoY     ADR YoY
    -----------      -------     -------
    Montreal            5%        -1%
    New York            5%        -4%
    Philadelphia       11%        -4%
    Phoenix            12%        -6%
    San Diego          16%        -6%
    San Francisco       4%        -2%
    Seattle            10%        -3%
    Toronto             5%         0%
    Washington, DC      9%        -2%
    Vancouver           2%         0%
    ---------          ---        ---


    >>

International

    <<
    Destination   ATP YoY       ADR YoY
    -----------   -------       -------
    Hong Kong       1%              -4%
    London          3%               1%
    Paris           2%               1%
    Tokyo           1%              -1%
    -----          ---              ---

    >>

For the U.S. car rental industry, 2009 was an unusual year. Car rental prices for business travelers increased 10 to 20 percent, while lack of financing coupled with the troubled automaker industry made it difficult for rental agencies to replenish their fleets. Egencia expects the situation to be alleviated somewhat in 2010 with car rental prices decreasing 5 percent year-over-year due to restored financing and increased competition for consumers/business travelers.

    <<

    Supply Outlook: Hotel Negotiability
    >>

Egencia's Hotel Negotiability Index, an indicator of the overall supply landscape in top North American cities, suggests that 2010 will remain a buyer's market for corporations during at least the first two quarters. The majority of major North American business destinations will maintain high negotiability, with the exceptions of Boston and Washington DC.

Boston, for example, has been less affected by the recession compared with other business destinations, so the anticipated influx of business travel and limited new capacity could make negotiations for that region more challenging. Washington DC will be a challenging destination for negotiations due to the increased role government is playing in multiple sectors of the economy.

    <<

    2010 Hotel Negotiability Index for North America

    (Photo: http://www.newscom.com/cgi-bin/prnh/20091103/CG03756)

    >>

"With a few exceptions, the hotel negotiation opportunity for travel and business decision makers is strong for 2010," said Pam Keenan Fritz, Senior Vice President of Egencia North America. "We advise our clients to move forward with negotiations now or in the near term to take full advantage of the climate, arming themselves with data to show how they can influence volumes."

    <<

    Travel Management Trends
    >>

Egencia surveyed more than 100 travel managers on cost control measures, travel spend and expectations for 2010. According to survey respondents, 59 percent say company travel has slightly or significantly reduced this year, compared with 48 percent a year ago in October 2008. Ten percent reported a slight increase in business travel compared with only 3 percent a year ago.

    <<

    The top cost-cutting measures travel managers are using include:
    --  Advanced booking of airline tickets (57%, up from 55% in fall 2008)
    --  Rigorous enforcement of travel policy (52%, up from 44%)
    --  Active tracking of unused tickets (45%, up from 44%)

    --  Requiring pre-trip approval (44%, up from 43%)


    >>

"The difficult economy of 2009 coupled with better travel management reporting and tools has driven travel and procurement managers to take stronger control of their programs," said Keenan Fritz. "This is evident in the trends we are seeing with policy enforcement data and negotiations - one third of travel managers say they are evaluating and making changes to their travel programs more frequently.*"

Strategic meetings management has been a growing theme for the corporate travel industry in 2009, and there is healthy opportunity for further consolidation between meetings and business travel programs into 2010. As companies resume investment in meetings and incentives, there is a greater focus on budget management and delivering significant ROI on meetings spend.

    <<

    Europe
    >>

Pricing for both corporate travel ATPs and ADRs in top European business travel destinations are expected to rise slowly. European cities have shown signs of positive growth, and business demand will begin to increase in travel especially in finance markets. Recent airline capacity cuts, increased focus on carrier profitability and recent shifts in the airline industry including the Delta/Northwest merger and Air France and Air Italia consolidation are also contributing upward pressure. Hotels located in these business hubs are likely to benefit from the increased demand.

Charts below illustrate year-over-year 2010 vs. 2009 ATP and ADR figures in U.S. dollars in selected business travel destinations for European points of sale.

    <<
    Destination  ATPYoY      ADR
    -----------  ------      ---
    Amsterdam       3%        0%
    Barcelona       7%       -1%
    Berlin          0%        2%
    Brussels        0%        3%
    Frankfurt       4%        1%
    London          1%        1%
    Madrid          1%        2%
    Milan           2%        1%
    Munich          2%        1%
    Paris           0%        1%
    -----          ---       ---

    Asia-Pacific
    >>

Corporate travel ATPs are expected to rise just slightly across Asia-Pacific cities due to increased demand outstripping supply. However, Egencia expects fewer business travelers to the region to mean lower to flat ADRs, with the exceptions of Sydney and Singapore, which may see a small rebound in pricing.

Charts below illustrate year-over-year 2010 vs. 2009 ATP and ADR figures in U.S. dollars in selected business travel destinations for Asia-Pacific points of sale.

    <<
    Destination      ATP        ADR
    -----------      ---        ---
    Beijing           4%        -8%
    Delhi             4%        -4%
    Hong Kong         4%        -4%
    Melbourne         3%        -1%
    Mumbai            1%         0%
    Shanghai          2%        -1%
    Singapore         1%         1%
    Sydney            0%         1%
    Tokyo             0%        -1%
    -----            ---        ---

    >>

Negotiability Indexes for APAC and Europe are available. Further insights into Egencia's 2010 Corporate Travel Forecast and Negotiability Index are available upon request.

    <<

    Research Methodology
    >>

Projections are based on the statistical analysis of the past and current industry trends, macroeconomic factors, research of supplier markets, and vendors' capacity forecasts for 2010.

    <<

    Disclaimer
    >>

This data refers to business destinations and business travel pricing. These projections are based on information gathered from various internal and external sources. The forecast represents an opinion based on current market factors and is not a representation or warranty as to the accuracy of the forecasts or projections made herein. Actual changes in ticket prices and hotel rates could vary significantly from forecasted numbers, impacted by unforeseen future economic and political factors.

    <<

    About Egencia, an Expedia, Inc. Company
    >>

Egencia is the fifth largest travel management company in the world. As part of Expedia, Inc., (Nasdaq: EXPE), the world's largest travel marketplace, Egencia helps businesses get ahead by offering the only truly integrated corporate travel service. Egencia's industry expertise helps drive results that matter, delivering meaningful advancements that have a real impact. By combining a powerful offline and online service, Egencia delivers a complete corporate travel offering supported by global market expertise and a best-in-class technology platform.

    <<

    For more information, go to www.egencia.com

    >>

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management's expectations as of the date of this press release and assumptions which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results and the outcome of events may differ materially from those expressed or implied in the forward-looking statements for a variety of reasons, including declines or disruptions in the travel industry caused by, among others, prolonged adverse economic conditions, health risks, increased adverse weather, war and/or terrorism and bankruptcies.

Egencia and the Egencia logo are either registered trademarks or trademarks of Expedia, Inc. in the U.S. and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners.

    <<

    © 2009 Egencia, LLC.  All rights reserved.  CST #: 2083922-50/

    >>

*33% evaluating/negotiating programs more frequently versus 6% doing so less frequently

    <<


    >>

SOURCE: Egencia

Lauren Berg of Edelman, +1-312-233-1390, lauren.berg@edelman.com; or Canada, Noor
Marzook, +1-416-979-1120, noor.marzook@edelman.com, both for Egencia Web Site:
http://www.egencia.com 	                http://www.expediacorporate.com

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Tags: airline   asia   beijing   budget   business   calgary   car rental   carrier   corporate   currency   economy   europe   finance   forecasts   frankfurt   government   health   hong kong   hotel   index   inflation   investment   london   madrid   market   merger   milan   montreal   nasdaq   new_york   north america   online   paris   policy   politics   president   prices   rates   research   securities   shanghai   singapore   sydney   technology   terrorism   tokyo   toronto   travel   vancouver   war   washington dc   weather  

Companies: Expedia, Inc. (EXPE)

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Delta to expand service in 17 cities for summer 2010 schedule - Zibb.com

Delta Air Lines (NYSE:DAL) announced on Tuesday changes to its schedule to strengthen its international network for summer 2010.

The changes will expand services in 17 cities and will leverage Delta's joint venture with Air France-KLM, its alliance relationship with Alaska Air Group and increased fleet flexibility from its merger with Northwest Airlines.

The summer 2010 changes are part of the first fully consolidated schedule to be published following Delta and Northwest's merger, allowing the carrier to reallocate existing capacity to new routes.

The new and expanded non-stop routes for summer 2010 will focus on three regions: transpacific, transatlantic and Africa.

Comments on this story may be sent to aii.feedback@m2.com

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Tags: africa   joint venture   merger   nyse   schedule  

Companies: Air France-KLM (AKH), Alaska Air Group, Inc. (ALK), Delta Air Lines, Inc. (DAL), Delta Air Lines, Inc. (DALw), Northwest Airlines Corp. (NWA)

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Northwest Airlines pilots who overflew Minneapolis-St Paul Airport were using laptops during flight

The US National Transportation Safety Board (NTSB) reported on Monday the findings from its interviews with the pilots of the Northwest Airlines flight which became a NORDO (no radio communications) flight on 21 October and overflew its destination airport, Minneapolis-St Paul International/Wold-Chamberlain Airport (MSP), by around 150 miles, while flying from San Diego.

The NTSB stated that it interviewed both the first officer and the captain of the Airbus A320 aircraft separately in Minnesota on Sunday.

Both pilots reportedly told the NTSB that they were not fatigued, both having had a 19-hour layover in San Diego prior to the incident, and said that neither fell asleep or dozed during the flight. The pilots also stated that they did not have a heated argument.

According to the NTSB, the pilots reported that there was a distraction in the cockpit and there was a concentrated period of discussion, during which they did not monitor the aircraft or calls from the ATC although they heard conversation on the radio.

The pilots told the NTSB that they lost track of time during the flight and had been discussing the new monthly crew flight scheduling system which is in place following the merger of Northwest Airlines with Delta Air Lines (NYSE:DAL). Both pilots used their laptops while discussing the airline crew flight scheduling procedure.

Delta Air Lines (NYSE:DAL) stated that it has suspended the pilots who were in command of Northwest flight 188 on 21 October until the investigations into the incident have been completed. The carrier also said that the use of laptops is against its flight deck policies and that violations of that policy will result in termination.

Comments on this story may be sent to aii.feedback@m2.com

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Tags: aircraft   airport   communications   minnesota   nyse   policy   radio   track  

Companies: Northwest Airlines Corp. (NWA)

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Delta Air Lines Reports September 2009 Quarter Financial Results - Zibb.com

Delta Air Lines (NYSE: DAL) today reported financial results for the September 2009 quarter. Key points include:

    --  Delta's net income for the September 2009 quarter was $51 million, or
        $0.06 per share, excluding $212 million in special items(1).  This
        result is $115 million better than prior year on a combined basis(2).
    --  Delta's reported net loss for the September 2009 quarter was $161
        million, or $0.19 per share.
    --  Delta raised $600 million in incremental liquidity, addressed 40% of
        2010 debt maturities and ended the September 2009 quarter with $5.8
        billion in unrestricted liquidity.
    --  Delta has achieved $500 million in merger benefits in the first three
        quarters of 2009, reaching its 2009 target ahead of plan.

    --  Delta's 2010 system capacity is expected to decline approximately 3%
        compared to 2009.

"Our ability to earn a profit for the quarter shows we are making sound decisions for our business in this difficult economic environment. While we now see encouraging revenue and booking trends, we remain cautious in these early stages of an uncertain recovery," said Richard Anderson, Delta's chief executive officer. "My thanks go out to the Delta people who delivered great customer service, ran a solid operation, and moved forward with our merger integration, all against the backdrop of a very challenging economy."

(Logo: http://www.newscom.com/cgi-bin/prnh/20090202/DELTALOGO )

Revenue Environment

Delta's operating revenue on a GAAP(3) basis grew 32% to $7.6 billion in the September 2009 quarter compared to the prior year period as a result of its merger with Northwest Airlines. On a combined basis, total operating revenue declined $2.0 billion, or 21%, and total unit revenue (RASM) declined 17%.


    (in millions)     3Q09     3Q08     Incr     3Q09      3Q08      Incr
                      GAAP     GAAP    (Decr)    GAAP    Combined   (Decr)
                      -----    -----   ------    -----   --------   -------

     Passenger       $6,524  $4,978      31%  $6,524    $8,329      (22)%
     Cargo              177     162       9%     177       364      (51)%
     Other, net         873     579      51%     873       839        4%
                        ---     ---              ---       ---
     Total Operating
      Revenue        $7,574  $5,719      32%  $7,574    $9,532      (21)%
                     ------  ------           ------    ------

On a combined basis:

    --  Total operating revenue declined 21% versus prior year due to the global
        economic recession.
    --  Passenger revenue decreased 22%, or $1.8 billion, compared to the prior
        year period due to the global economic recession and a 4% capacity
        reduction.  Passenger unit revenue (PRASM) declined 18%, driven by a 19%
        decline in yield.
    --  Cargo revenue declined 51%, or $187 million, reflecting lower volume and
        yields.  Freighter capacity was 38% lower year over year as a result of
        the actions Delta is taking to discontinue freighter flying by the end
        of 2009.

    --  Other, net revenue grew 4%, or $34 million, primarily due to increased
        baggage fee revenue.

Comparisons of revenue-related statistics are as follows:


                                          Increase (Decrease)
                                    3Q09 (GAAP) versus 3Q08 (Combined)
                                    ----------------------------------
                       3Q09 ($M)   Change      Unit
                         GAAP       YOY       Revenue     Yield    Capacity
                       --------- --------------------------------- --------

     Passenger Revenue
         Domestic       $2,901     (19.7)%    (16.8)%     (17.2)%   (3.5)%
         Atlantic        1,353     (30.1)%    (22.7)%     (25.8)%   (9.6)%
         Latin America     294     (22.2)%    (18.2)%     (20.3)%   (4.9)%
         Pacific           574     (27.8)%    (25.8)%     (23.9)%   (2.7)%
                           ---
         Total mainline  5,122     (23.8)%    (19.5)%     (20.6)%   (5.3)%
         Regional        1,402     (12.8)%    (14.0)%     (15.6)%    1.5%
                         -----
         Consolidated   $6,524     (21.7)%    (18.1)%     (19.1)%   (4.4)%

"The global recession drove a significant revenue decline for the quarter, but we see improving trends in load factors, yield and business traffic," said Edward Bastian, Delta's president. "We will continue to exercise capacity restraint, coupled with strong cost control to effectively manage this."

Cost Discipline

In the September 2009 quarter, Delta's operating expense on a GAAP basis increased $1.8 billion year over year due to the impact of the company's merger with Northwest Airlines, partially offset by lower fuel price. On a combined basis, excluding special items, operating expense decreased $2.1 billion due to lower fuel expense, productivity improvements and merger benefits.


     (in millions, except where noted)

               3Q09        3Q08        Incr     3Q09       3Q08       Incr
               GAAP        GAAP       (Decr)    GAAP     Combined    (Decr)
               ----        ----       ------    ----     --------    ------

    Operating
     expense  $7,370      $5,588        32%   $7,370      $9,619       (23)%
    Operating
     expense
     ex-
     special
     items    $7,241      $5,564        30%   $7,241      $9,316       (22)%
    Consoli-
     dated
     CASM      11.56 cents 13.47 cents (14)%   11.56 cents 14.30 cents (19)%
    Consoli-
     dated
     CASM
     ex-fuel
     expense
     and
     special
     items      7.82 cents  7.66 cents   2%     7.82 cents  7.63 cents   2%
    Mainline
     CASM      10.54 cents 11.82 cents (11)%   10.54 cents 13.13 cents (20)%
    Mainline
     CASM
     ex-fuel
     expense
     and
     special
     items      6.94 cents  6.58 cents   5%     6.94 cents  6.81 cents   2%
    Non-
     operating
     expense    $383        $181       112%     $383        $277        38%

On a combined basis:

    --  Both consolidated and mainline unit cost (CASM(4)), excluding fuel
        expense and special items, increased 2% year over year in the September
        2009 quarter due to higher pension expense.

    --  Non-operating expenses excluding special items increased $23 million in
        the September 2009 quarter primarily due to non-cash debt discount
        amortization.

"Despite our significant capacity reductions, Delta successfully mitigated unit cost pressures through improved productivity, strong cost discipline and accelerating our merger synergies," said Hank Halter, chief financial officer. "While we have additional cost pressures in the fourth quarter from new capacity reductions, we expect to offset most, if not all, of this impact."

Liquidity Position

As of Sept. 30, 2009, Delta had $5.8 billion in unrestricted liquidity, including $5.5 billion in cash, cash equivalents and short-term investments and $300 million available in an undrawn revolving credit facility.

During the September 2009 quarter, Delta completed $2.1 billion in new financing transactions, addressing 40% of 2010 debt maturities and generating $600 million in incremental liquidity. The new financing consisted of $1.35 billion of secured notes, a $500 million revolving credit facility and a $250 million term loan facility, all of which were secured by the airline's Pacific routes and related assets.

During the quarter, the company made $1.2 billion of debt and capital lease payments which includes $900 million for the Northwest bank credit facility. In addition the company amended Northwest's revolving credit facility to reduce the total borrowing capacity from $500 million to $300 million.

Capital expenditures during the quarter were approximately $150 million, which includes $75 million for investments in aircraft, parts and modifications.

Merger with Northwest

Through the first three quarters of 2009, Delta has achieved $500 million in synergy benefits from its merger with Northwest Airlines, reaching its 2009 target ahead of plan. The company now expects to generate $700 million in total merger synergies in 2009. Synergies achieved to date include improved revenue from increased market share and Delta's affinity card agreement. In addition, cost reductions have been achieved from streamlined overhead, facilities and technology, elimination of dedicated freighter flying and supply chain savings.

The company is on track in its integration efforts and expects to obtain a Single Operating Certificate by the end of 2009. Recent achievements include:

    --  Creating the world's largest airline loyalty program by combining the
        Northwest WorldPerks program and Delta SkyMiles;
    --  Relocating the Northwest System Operations Center from Minneapolis to
        Delta's Operations Control Center in Atlanta;
    --  Transitioning reservations agents in five pre-merger Northwest call
        centers to the Delta Reservations system;
    --  Continuing pilot and flight attendant training to prepare for single
        carrier operations;
    --  Renegotiating more than 600 corporate contracts to date, generating
        incremental business traffic;
    --  Re-branding more than 240 airports to provide consistent Delta branding
        at more than 98% of airports served worldwide; and

    --  Painting more than 230 pre-merger Northwest aircraft in the Delta
        livery.

Fuel Price and Related Hedges

Delta hedged 53% of its fuel consumption for the September 2009 quarter, which resulted in $226 million in realized fuel hedge losses and premiums for the period. As a result, Delta's average fuel price(5) for the September 2009 quarter was $2.13 per gallon, which includes $0.11 per gallon associated with fuel hedge losses.

The table below represents the fuel hedges Delta had in place as of Oct. 16, 2009:


                                 4Q09      1Q10      2Q10      3Q10
                                 ----------------------------------
    Call options                  22%       24%       11%        3%
    Collars                        -         3%        -         -
    Swaps                         17%        1%        -         -
                                 ----------------------------------
    Total                         39%       28%       11%        3%
                                 ----------------------------------

    Avg. crude call strike       $82       $67       $68       $91
    Avg crude collar cap           -        68         -         -
    Avg crude collar floor         -        60         -         -
    Avg. crude swap              $63       $69         -         -

September 2009 Quarter Highlights

During the September 2009 quarter, Delta continued to position itself as the world's No. 1 airline, with an ongoing commitment to employees, customers and communities. Highlights include:

    --  Paying more than $50 million year-to-date in employee Shared Rewards for
        achieving operational performance goals;
    --  Reaching a definitive agreement with US Airways to exchange slots and
        airport facilities at New York's LaGuardia and Washington's Reagan
        National airports, subject to regulatory approval, which will enable
        Delta to serve an additional two million customers at LaGuardia annually
        without added congestion;
    --  Partnering with the City of Atlanta to reach an agreement to extend
        Delta's lease at Hartsfield-Jackson Atlanta International Airport
        through 2017 to maintain the airport's position as the leading airport
        in the world;
    --  Enhancing BusinessElite service from New York by adding full-flat beds
        to all flights between New York-JFK and London-Heathrow and new
        BusinessElite service flights connecting New York-JFK to Los Angeles and
        San Francisco;
    --  Announcing the 2010 SkyMiles Medallion program offering frequent flyers
        new, industry-leading benefits including a Diamond level status and
        rollover Medallion Qualification Miles; and

    --  Launching the first joint Delta and Northwest Habitat for Humanity build
        in the U.S. with projects in Atlanta, Cincinnati, Detroit, Memphis,
        Minneapolis/St. Paul and New York and partnering - for the fifth
        consecutive year - with the Breast Cancer Research Foundation to add to
        the nearly $1.5 million previously raised through on-board pink product
        sales and donations.

Special Items

Delta recorded special charges totaling $212 million in the September 2009 quarter, including:

    --  $83 million to write-off unamortized non-cash debt discount associated
        with the refinancing of certain Northwest debt;
    --  $78 million in merger-related items; and

    --  $51 million in charges for employee severance programs.

Delta recorded special charges totaling $24 million in the September 2008 quarter, including:

    --  A $14 million charge for early termination fees under contract carrier
        arrangements;
    --  $7 million in merger-related expenses; and

    --  A $3 million net charge primarily for facilities restructuring and
        severance.

December 2009 Quarter Guidance

Delta's projections for the December 2009 quarter are below. This guidance is presented on a combined basis(6).


                                         4Q 2009 Forecast   2009 Forecast
                                         ----------------   -------------

    Fuel price, including taxes and
     hedges                                    $2.14            $2.14
    Operating margin                         Breakeven        Breakeven
    Capital expenditures                   $250 million     $1.4 billion
    Total liquidity as of Dec. 31, 2009    $5.0 billion


                                         4Q 2009 Forecast
                                          (compared to 4Q
                                               2008)        2009 vs. 2008
                                         ----------------   -------------

    Consolidated unit costs - excluding
    fuel expense                             Up 3 - 4%        Up 2 - 3%
    Mainline unit costs - excluding fuel
     expense                                 Up 3 - 4%        Up 2 - 3%

    System capacity                         Down 9 - 11%      Down 7 - 9%
         Domestic                           Down 5 - 7%       Down 7 - 9%
         International                      Down 14 - 16%     Down 7 - 9%

    Mainline capacity                       Down 9 - 11%      Down 7 - 9%
         Domestic                           Down 6 - 8%       Down 7 - 9%
         International                      Down 14 - 16%     Down 6 - 8%

Other Matters

Included with this press release are Delta's Consolidated Statements of Operations for the three and nine months ended Sept. 30, 2009 and 2008; a statistical summary for those periods; selected balance sheet data as of Sept. 30, 2009 and Dec. 31, 2008; and a reconciliation of certain non-GAAP financial measures.

About Delta

Delta Air Lines is the world's No. 1 airline. From its hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-Narita, Delta, its Northwest subsidiary and Delta Connection carriers offer service to 355 destinations in 64 countries and serve more than 170 million passengers each year. Delta's marketing alliances allow customers to earn and redeem SkyMiles on more than 16,000 daily flights offered by SkyTeam and other partners. Delta's more than 70,000 employees worldwide are reshaping the aviation industry as the only U.S. airline to offer a full global network. Customers can check in for flights, print boarding passes, check bags and flight status at delta.com.

Endnotes

    1. Note A to the attached Consolidated Statements of Operations provides a
       reconciliation of non-GAAP financial measures used in this release and
       provides the reasons management uses those measures.
    2. Combined financial information includes the combined results of Delta and
       Northwest for the September 2008 quarter.
    3. Delta's financial results under generally accepted accounting principles
       (GAAP) include the results of Northwest Airlines for the periods
       following the completion of the merger, which occurred on Oct. 29, 2008.
       Unless otherwise indicated, Delta presents financial results on a GAAP
       basis which reflects both Delta and Northwest financial results for the
       September 2009 quarter, but only Delta standalone results for the
       September 2008 quarter.  The company also presents financial and
       operating information on a "combined basis", which management believes is
       more meaningful for comparing year-over-year performance. The combined
       basis compares Delta's GAAP results for the September 2009 quarter to the
       combined results of Delta and Northwest for the September 2008 quarter.
    4. Delta excludes from mainline unit cost ancillary businesses not related
       to the generation of a seat mile, including Delta's providing maintenance
       and staffing services to third parties, dedicated freighter operations
       and Delta's vacation wholesale operations. Similarly, Delta excludes from
       passenger unit revenues, and includes in other revenue, revenues received
       for providing aircraft maintenance and staffing services to third
       parties, freighter operations and MLT.  Management believes these
       classifications provide a more consistent and comparable reflection of
       Delta's mainline operations.
    5. Delta's September 2009 quarter average fuel price of $2.13 per gallon
       reflects the consolidated cost per gallon for mainline and regional
       operations, including contract carrier operations, net of fuel hedge
       impact.

    6. Year-over-year guidance comparisons assume the 2008 financial information
       for the applicable periods include Delta and Northwest results for the
       entire period, excluding special items and out-of-period fuel hedge
       losses.

Submission of Stockholder Proposals

To be considered for inclusion in the Delta proxy statement for the 2010 annual meeting, stockholder proposals must be submitted in writing and received no later than 5:00 p.m., local time, on Dec. 30, 2009 at the following address:


    Corporate Secretary
    Delta Air Lines, Inc.
    Dept. 981
    P.O. Box 20574
    Atlanta, Georgia 30320

This deadline supersedes the Nov. 9, 2009 deadline contained in Delta's proxy statement for the 2009 annual meeting.

Forward-looking Statements

Statements in this news release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the effects of the global recession; the effects of the global financial crisis; the impact of posting collateral in connection with our fuel hedge contracts; the impact that our indebtedness will have on our financial and operating activities and our ability to incur additional debt; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; the ability to realize the anticipated benefits of our merger with Northwest; the integration of the Delta and Northwest workforces; interruptions or disruptions in service at one of our hub airports; our increasing dependence on technology in its operations; our ability to retain management and key employees; the ability of our credit card processors to take significant holdbacks in certain circumstances; the effects of terrorist attacks; and competitive conditions in the airline industry.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and our Quarterly Report on Form 10-Q for the period ended June 30, 2009. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of October 22, 2009, and which we have no current intention to update.


                                DELTA AIR LINES, INC.
                         Consolidated Statements of Operations
                                    (Unaudited)

                              Three         Three
                              Months        Months
                              Ended         Ended
     (in millions, except    Sept. 30,     Sept. 30,   $ Change    % Change
      per share data)          2009         2008(1)       H(L)       H(L)
      -------------------      ----         ------        ---        ---
     OPERATING REVENUE:
       Passenger:
           Mainline           $5,122        $3,921       $1,201      31%
           Regional
            carriers           1,402         1,057          345      33%
                               -----         -----          ---
       Total passenger
        revenue                6,524         4,978        1,546      31%
       Cargo                     177           162           15       9%
       Other, net                873           579          294      51%
                                 ---           ---          ---
         Total operating
          revenue              7,574         5,719        1,855      32%
     OPERATING EXPENSE:
       Aircraft fuel and
        related taxes          1,973         1,952           21       1%
       Salaries and related
        costs                  1,894         1,086          808      74%
       Contract carrier
        arrangements (2)       1,009           941           68       7%
       Contracted services       415           272          143      53%
       Depreciation and
        amortization             385           293           92      31%
       Aircraft maintenance
        materials and
        outside repairs          334           273           61      22%
       Passenger
        commissions and
        other selling
        expenses                 384           259          125      48%
       Landing fees and
        other rents              340           179          161      90%
       Passenger service         181           122           59      48%
       Aircraft rent             123            70           53      76%
       Restructuring and
        merger-related
        items                    129            24          105      NM
       Other                     203           117           86      74%
                                 ---           ---           --
         Total operating
          expense              7,370         5,588        1,782      32%
                               -----         -----        -----
     OPERATING INCOME            204           131           73      56%
     OTHER (EXPENSE)
      INCOME:
       Interest expense         (319)         (140)        (179)     NM
       Interest income             4            21          (17)    -81%
       Loss on
        extinguishment of
        debt                     (83)            -          (83)     NM
       Miscellaneous, net         15           (62)          77      NM
                                  --           ---           --
         Total other expense,
          net                   (383)         (181)        (202)     NM
                                ----          ----         ----
     LOSS BEFORE INCOME
      TAXES                     (179)          (50)        (129)     NM
     INCOME TAX BENEFIT           18             -           18      NM
                                  --           ---           --
     NET LOSS                  $(161)         $(50)       $(111)     NM
                               =====          ====        =====
     BASIC AND DILUTED LOSS
      PER SHARE               $(0.19)       $(0.13)
                              ======        ======
     BASIC AND DILUTED
      WEIGHTED AVERAGE
      SHARES OUTSTANDING         828           396
                                 ===           ===

    (1) Pursuant to GAAP, results for the September 2008 quarter presented
        in this table reflect Delta standalone results only. See Note A for
        a representation of "Combined" results for the September 2008
        quarter, which includes Northwest results for that period.
    (2) Contract carrier arrangements expense includes $251 million and $368
        million for the three months ended September 30, 2009 and 2008,
        respectively, for aircraft fuel and related taxes.



                               DELTA AIR LINES, INC.
                        Consolidated Statements of Operations
                                  (Unaudited)

                              Nine         Nine
                             Months       Months
                             Ended        Ended
    (in millions, except    Sept. 30,    Sept. 30,    $ Change    % Change
     per share data)          2009        2008(1)       H(L)         H(L)
    --------------------      ----        ------        ---          ---
     OPERATING REVENUE:
       Passenger:
           Mainline         $14,053       $10,609      $3,444         32%
           Regional
            carriers          3,975         3,239         736         23%
                              -----         -----         ---
       Total passenger
        revenue              18,028        13,848       4,180         30%
       Cargo                    535           456          79         17%
       Other, net             2,695         1,680       1,015         60%
                              -----         -----       -----
         Total operating
          revenue            21,258        15,984       5,274         33%
     OPERATING EXPENSE:
       Aircraft fuel and
        related taxes         5,678         5,052         626         12%
       Salaries and
        related costs         5,652         3,269       2,383         73%
       Contract carrier
        arrangements (2)      2,882         2,836          46          2%
       Contracted services    1,249           783         466         60%
       Depreciation and
        amortization          1,152           892         260         29%
       Aircraft maintenance
        materials and
        outside repairs       1,150           836         314         38%
       Passenger commissions
        and other
        selling expenses      1,069           732         337        46%
       Landing fees and
        other rents             971           519         452        87%
       Passenger service        477           311         166        53%
       Aircraft rent            363           201         162        81%
       Impairment of
        goodwill and other
        intangible assets         -         7,296      (7,296)       NM
       Restructuring and
        merger-related
        items                   286           144         142        99%
       Other                    607           330         277        84%
                                ---           ---         ---
         Total operating
          expense            21,536        23,201      (1,665)       -7%
                             ------        ------      ------
     OPERATING LOSS            (278)       (7,217)      6,939       -96%
     OTHER (EXPENSE) INCOME:
       Interest expense        (951)         (428)       (523)       NM
       Interest income           23            73         (50)      -68%
       Loss on extinguishment
        of debt                 (83)            -         (83)       NM
       Miscellaneous, net        63           (31)         94        NM
                                 --           ---          --
         Total other expense,
          net                  (948)         (386)       (562)       NM
                               ----          ----        ----
     LOSS BEFORE INCOME
      TAXES                  (1,226)       (7,603)      6,377       -84%
     INCOME TAX BENEFIT          14           119        (105)      -88%
                                 --           ---        ----
     NET LOSS               $(1,212)      $(7,484)      6,272       -84%
                            =======       =======       =====
     BASIC AND DILUTED
      LOSS PER SHARE         $(1.47)      $(18.91)
                             ======       =======
     BASIC AND DILUTED
      WEIGHTED AVERAGE
      SHARES OUTSTANDING        826           396
                                ===           ===

    (1) Pursuant to GAAP, results for the nine months ended September 30,
        2008 presented in this table reflect Delta standalone results only.
    (2) Contract carrier arrangements expense includes $658 million and $1.1
        billion for the nine months ended September 30, 2009 and 2008,
        respectively, for aircraft fuel and related taxes.



                               DELTA AIR LINES, INC.
                           Selected Balance Sheet Data
                                  (In Millions)

                                                           Sept. 30, Dec. 31,
                                                             2009     2008
                                                             ----     ----
                                                         (Unaudited)

    Cash and cash equivalents                               $5,396   $4,255
    Short-term investments                                      92      212
    Restricted cash and cash equivalents (short-term
     and long-term)                                            499      453
    Total assets                                            44,853   45,084
    Total debt and capital leases, including current
     maturities                                             17,684   16,571
    Total stockholders' equity                                 900      874



                                  DELTA AIR LINES, INC.
                                   Statistical Summary
                                       (Unaudited)

                             Three Months Ended Sept. 30,
                             ---------------------------
                                               2008
                              2009          Combined(1)        Change
                              ----          ----------         ------
     Consolidated:
       Revenue Passenger
        Miles (millions)(2)  53,371           55,133            (3.2)%
       Available Seat Miles
        (millions)(2)        62,234           65,092            (4.4)%
       Passenger Mile
        Yield(2)              12.22 cents      15.11 cents     (19.1)%
       Passenger Revenue
        per Available Seat
        Mile (PRASM)(2)       10.48 cents      12.80 cents     (18.1)%
       Operating Cost Per
        Available Seat
        Mile (CASM)(2)        11.56 cents      14.30 cents     (19.2)%
          CASM excluding
           Special Items(2)
           - See Note A       11.35 cents      13.83 cents     (17.9)%
          CASM excluding
           Special Items
           and Fuel Expense
           and Related
          Taxes(2,3) -
           See Note A          7.82 cents       7.63 cents       2.5%
       Passenger Load
        Factor (2)             85.8 cents       84.7%            1.1 pts
       Fuel Gallons Consumed
        (millions)(2)         1,043            1,089            (4.2)%
       Average Price Per
        Fuel Gallon, net of
        hedging activity(2)   $2.13            $3.81           (44.1)%
       Number of Aircraft
        in Fleet, End of
        Period                1,001            1,020             (19) aircraft
       Full-Time Equivalent
        Employees, End of
        Period               81,740           85,507            (4.4)%

     Mainline:
       Revenue Passenger
        Miles (millions)     46,552           48,534            (4.1)%
       Available Seat Miles
        (millions)           53,772           56,755            (5.3)%
       Operating Cost Per
        Available Seat
        Mile (CASM)           10.54 cents      13.13 cents     (19.7)%
         CASM excluding
          Special Items
          - See Note A        10.31 cents      12.62 cents     (18.3)%
         CASM excluding
          Special Items
          and Fuel
          Expense and
          Related Taxes
          - See Note A         6.94 cents       6.81 cents       1.9%
       Fuel Gallons Consumed
        (millions)              845              898            (5.9)%
       Average Price Per Fuel
        Gallon, net of
        hedging activity      $2.18            $4.07           (46.4)%
       Number of Aircraft
        in Fleet, End of
        Period                  750              770             (20) aircraft


    (1) Data presented reflects operations for both Delta and Northwest for
        the September 2008 quarter.
    (2) Data presented includes operations under our contract carrier
        arrangements.
    (3) Excludes $251 million and $497 million, for the September 2009 and
        2008 quarters, respectively, for fuel expense incurred under contract
        carrier arrangements.



                            DELTA AIR LINES, INC.
                             Statistical Summary
                                 (Unaudited)

                              Nine Months Ended Sept. 30,
                              ---------------------------
                                              2008
                                 2009       Combined(1)       Change
                                 ----      -------------      ------
    Consolidated:
     Revenue Passenger Miles
      (millions)(2)           145,384       155,878            (6.7)%
     Available Seat Miles
      (millions)(2)           177,003       188,066            (5.9)%
     Passenger Mile
      Yield(2)                  12.40 cents   14.79 cents     (16.2)%
     Passenger Revenue per
      Available Seat Mile
      (PRASM)(2)                10.19 cents   12.26 cents     (16.9)%
     Operating Cost Per
      Available Seat Mile
      (CASM)(2)                 11.85 cents   19.85 cents     (40.3)%

         CASM excluding
          Special Items(2) -
          See Note A            11.69 cents   13.43 cents     (13.0)%
         CASM excluding
          Special Items and
          Fuel Expense and
          Related Taxes(2,3)
          - See Note A           8.16  cents   7.95 cents       2.6%
     Passenger Load Factor (2)   82.1%         82.9%          (0.8) pts
     Fuel Gallons Consumed
      (millions)(2)             2,951         3,182            (7.3)%
     Average Price Per Fuel
      Gallon, net of hedging
      activity(2)               $2.15         $3.34           (35.6)%
     Number of Aircraft in
      Fleet, End of Period      1,001         1,020             (19) aircraft
     Full-Time Equivalent
      Employees, End of
      Period                   81,740        85,507            (4.4)%

    Mainline:
     Revenue Passenger Miles
      (millions)              126,169       136,551            (7.6)%
     Available Seat Miles
      (millions)              152,141       163,254            (6.8)%
    Operating Cost Per
     Available Seat Mile
     (CASM)                     10.92 cents   19.53 cents     (44.1)%
         CASM excluding
          Special Items  -
          See Note A            10.74  cents  12.14 cents     (11.5)%
         CASM excluding
          Special Items and
          Fuel Expense and
          Related Taxes -
          See Note A             7.28  cents   7.08 cents       2.8%
     Fuel Gallons Consumed
      (millions)                2,378         2,604            (8.7)%
     Average Price Per
      Fuel Gallon,
      net of hedging
      activity                  $2.24         $3.32           (32.5)%
     Number of Aircraft
      in Fleet, End of
      Period                      750           770             (20) aircraft


    (1) Data presented reflects operations for both Delta and Northwest for
        the nine months ended Sept. 30, 2008.
    (2) Data presented includes operations under our contract carrier
        arrangements.
    (3) Excludes $658 million and $1.4 billion, for the nine months ended
        September 2009 and 2008, respectively, for fuel expense incurred under
        contract carrier arrangements

Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below.

    --  Delta completed its merger with Northwest Airlines on October 29, 2008.
        Accordingly, Delta's financial results under GAAP include the results of
        Northwest Airlines for the period January 1, 2009 through September 30,
        2009.

Under GAAP, Delta does not include in its financial results the results of Northwest Airlines prior to the completion of the merger. Accordingly, Delta's financial results under GAAP for the September 2008 quarter do not include the results of Northwest Airlines for that period. This impacts the comparability of Delta's financial statements under GAAP for the September 2009 and 2008 quarters.

Delta presents its financial results for the September 2009 and September 2008 quarters under GAAP as well as on a "combined basis." "Combined basis" means the company combines the financial results of Delta and Northwest as if the merger had occurred prior to the beginning of the applicable period. Delta believes presenting this financial information on a combined basis provides a more meaningful basis for comparing Delta's year-over-year financial performance than the GAAP financial information.

This press release also includes guidance for the December 2009 quarter. Please note the year-over-year guidance comparisons assume the 2008 financial statements for the applicable periods were prepared on a combined basis, excluding special items and out-of-period fuel hedge losses. Delta is unable to reconcile certain forward-looking projections to GAAP, including projected consolidated cost per available seat mile (CASM) and Mainline non-fuel CASM, as the nature or amount of special items cannot be estimated at this time.

    --  Delta excludes special items because management believes the exclusion
        of these items is helpful to investors to evaluate the company's
        recurring operational performance.

    --  Delta excludes non-cash mark-to-market (MTM) adjustments related to fuel
        hedges settling in future periods in order to present financial results
        related to operations in the period shown.

    --  Delta presents consolidated and Mainline CASM excluding fuel expense and
        related taxes because management believes the volatility in fuel prices
        impacts the comparability of year-over-year financial performance.

    --  Consolidated and Mainline CASM excludes ancillary businesses not
        associated with the generation of a seat mile.  These transactions
        include expenses related to Delta's providing maintenance and staffing
        services to third parties, dedicated freighter operations and Delta's
        vacation wholesale operations.

    --  Delta presents net capital expenditures because management believes this
        metric is helpful to investors to evaluate the company's investing
        activities.


    DELTA AIR LINES, INC.
    Unaudited Combined Statements of Operations

                                      Three Months Ended Sept. 30, 2008
                                      ---------------------------------
                                                        Special
    (in millions)                Delta(1)  Northwest(1)  Items    Combined
                                 -------   -----------  -------   --------

     OPERATING REVENUE:
       Passenger:
        Mainline                    $3,921      $2,801       $-      $6,722
        Regional carriers            1,057         550        -       1,607
                                     -----         ---      ---       -----
       Total passenger revenue       4,978       3,351        -       8,329
       Cargo                           162         202        -         364
       Other, net                      579         260        -         839
                                       ---         ---      ---         ---
         Total operating revenue     5,719       3,813        -       9,532
     OPERATING EXPENSE:
       Aircraft fuel and related
        taxes                        1,952       1,946     (250) (2)  3,648
       Salaries and related
        costs                        1,086         706      (18) (3)  1,774
       Contract carrier
        arrangements                   941         275        -       1,216
       Aircraft maintenance
        materials and outside
        repairs                        273         168        -         441
       Contracted services             272         198        -         470
       Passenger commissions and
        other selling expenses         259         226        -         485
       Depreciation and
        amortization                   293         122        -         415
       Landing fees and other
        rents                          179         144        -         323
       Aircraft rent                    70          57        -         127
       Passenger service               122          65        -         187
       Restructuring and
        merger-related items            24           1      (25) (4)      -
       Other                           117         123      (10) (5)    230
                                       ---         ---      ---         ---
         Total operating expense     5,588       4,031     (303)      9,316
                                     -----       -----     ----       -----

     OPERATING INCOME (LOSS)           131        (218)     303         216
     OTHER (EXPENSE) INCOME:
       Interest expense               (140)       (112)       -        (252)
       Interest income                  21          21        -          42
       Miscellaneous, net              (62)         (5)       -         (67)
                                       ---         ---      ---         ---
         Total other expense, net     (181)        (96)       -        (277)
                                      ----         ---      ---        ----

     LOSS BEFORE INCOME TAXES          (50)       (314)     303         (61)
     INCOME TAX PROVISION                -          (3)       -          (3)
                                       ---         ---      ---         ---
     NET LOSS                         $(50)      $(317)    $303        $(64)
                                      ====       =====     ====        ====


    Notes:
    Combined Contract carrier arrangements expense includes $497 million for
    fuel expense incurred under these arrangements.

    (1)  We reclassified prior period amounts to conform to current
         presentations
    (2)  $250 million in out-of-period fuel hedges
    (3)  $18 million of merger-related expenses
    (4)  $14 million in contract carrier restructuring, $11 million in
         facilities and merger-related charges
    (5)  $10 million in merger-related charges



    DELTA AIR LINES, INC.
    Unaudited Combined Statements of Operations

                              Three       Oct. 1,
                              Months       2008
                              Ended      through       Three Months
                             Dec. 31,    Oct. 31,         Ended
                               2008        2008        Dec. 31, 2008
                             --------    --------    -----------------
                                                    Special
     (in millions)            Delta(1)  Northwest(1)  Items    Combined
    ------------             --------  ------------ -------   --------

     OPERATING REVENUE:
       Passenger:
        Mainline                $4,528        $741       $-       $5,269
        Regional carriers        1,207         181        -        1,388
                                 -----         ---      ---        -----
       Total passenger
        revenue                  5,735         922        -        6,657
       Cargo                       230          55        -          285
       Other, net                  748          78        -          826
                                   ---         ---      ---          ---
         Total operating
          revenue                6,713       1,055        -        7,768
     OPERATING EXPENSE:
       Aircraft fuel and
        related taxes            2,294         750     (301) (2)   2,743
       Salaries and related
        costs                    1,533         245      (25) (3)   1,753
       Contract carrier
        arrangements               930          81        -        1,011
       Aircraft maintenance
        materials and outside
        repairs                    333          49        -          382
       Contracted services         370          65        -          435
       Passenger commissions
        and other selling
        expenses                   298          72        -          370
       Depreciation and
        amortization               374          39        -          413
       Landing fees and other
        rents                      268          40        -          308
       Aircraft rent               106          17        -          123
       Passenger service           129          20        -          149
       Restructuring and
        merger-related items       987         224   (1,211) (4)       -
       Other                       188          39        -          227
                                   ---         ---      ---          ---
         Total operating
          expense                7,810       1,641   (1,537)       7,914
                                 -----       -----   ------        -----

     OPERATING (LOSS) INCOME    (1,097)       (586)   1,537         (146)
     OTHER (EXPENSE) INCOME:
       Interest expense           (277)        (39)       -         (316)
       Interest income              19           5        -           24
       Miscellaneous, net          (83)         (9)      20 (5)      (72)
                                   ---         ---      ---          ---
         Total other expense,
          net                     (341)        (43)      20         (364)
                                  ----         ---      ---         ----

     LOSS BEFORE INCOME TAXES   (1,438)       (629)   1,557         (510)
     INCOME TAX PROVISION            -           -        -            -
                                   ---         ---      ---          ---
     NET LOSS                  $(1,438)       (629)  $1,557        $(510)
                               =======        ====   ======        =====

    Notes:
    Combined Contract carrier arrangements expense includes $301 million for
    fuel expense incurred under these arrangements.

    (1)  We reclassified prior period amounts to conform to current
    presentations
    (2)  $301 million in out-of-period fuel hedges
    (3)  $25 million of merger-related expenses
    (4)  $1.2 billion in merger-related charges and $18 million in facilities
    restructuring
    (5)  $20 million write-down in value of auction rate securities


                                                  Three Months
                                                      Ended
                                                 Sept. 30, 2009
                                                 --------------
     (in millions)
     Net loss                                              $(161)
     Items excluded:
     Restructuring and merger-related items                  129
     Loss on extinguishment of debt                           83
                                                             ---
     Net income excluding special items                      $51
                                                             ===
     Weighted average shares outstanding                     828
                                                             ---
     Income per share excluding special items              $0.06
                                                           =====



                                       GAAP         Combined       GAAP
                                    Three Months  Three Months  Three Months
                                      Ended         Ended         Ended
                                     Sept. 30      Sept. 30,     Sept. 30,
    (in millions)                      2009          2008          2008
                                     ---------     ---------    ---------
     Operating Expense                  $7,370        $9,619       $5,588
     Items excluded:
     MTM adjustments to fuel
      hedges settling in future
      periods                                -          (250)           -
     Restructuring and
      merger-related items                (129)          (53)         (24)
                                          ----           ---          ---
     Operating expense excluding
       special items                    $7,241        $9,316       $5,564
                                        ======        ======       ======



                                                       GAAP
                                                   Three Months
                                                       Ended
     (in millions)                                Sept. 30, 2009
                                                  --------------
     Non-operating expense                                $383
     Items excluded:
     Loss on extinguishment of debt                        (83)
                                                           ---
     Non-operating expense excluding special items        $300
                                                          ====




                                                  Three Months
                                                      Ended
     (in millions)                               Sept. 30, 2009
                                                 --------------
     Property and equipment additions (GAAP)            $(121)
     Adjustments:
     Aircraft purchases under seller financing            (25)
                                                          ---
     Total capital expenditures                         $(146)
                                                        =====



                                                  Three Months
                                                      Ended
     (in millions)                               Sept. 30, 2009
                                                 --------------
     Property and equipment additions, flight
      equipment (GAAP)                                   $(49)
     Adjustments:
     Aircraft purchases under seller financing            (25)
                                                          ---
     Total investments in aircraft, parts and
      modifications                                      $(74)
                                                         ====



    (in millions,          Three Months Ended
    except unit                Sept. 30, 2008          Passenger
    data)                Delta  Northwest  Combined   Mile Yield  PRASM
     Passenger and
      operating revenue
     Domestic           $2,058   $1,555    $3,613    13.91 cents  12.14 cents
     Atlantic            1,402      534     1,936    13.87        11.59
     Latin
      America              365       13       378    14.00        11.29
     Pacific                96      699       795    13.50        11.46
                           ---      ---       ---
     Total
      mainline           3,921    2,801     6,722    13.85        11.84
         Regional
          carriers       1,057      550     1,607    24.35        19.27
                         -----      ---     -----
     Total
      passenger
      revenue            4,978    3,351     8,329    15.11        12.80
     Cargo                 162      202       364
     Other, net            579      260       839
                           ---      ---       ---
       Total
        operating
        revenue         $5,719   $3,813    $9,532
                        ======   ======    ======


    (in millions,            Nine Months Ended
     except unit               Sept. 30, 2008         Passenger
     data)               Delta  Northwest  Combined   Mile Yield   PRASM

    Passenger revenue  $13,848   $9,203    $23,051   14.79 cents  12.26 cents



                                Three Months Ended Sept. 30,

                          2009             2008              2008
                          GAAP           Combined            GAAP
                          ----           --------            ----
     (in millions,
      except per
      cent data)
     CASM                 11.84  cents      14.78  cents     13.84  cents
     Ancillary
      businesses          (0.28)            (0.48)           (0.37)
                          -----             -----            -----
     CASM excluding
      items not
      related to
      generation
      of a seat mile      11.56 cents       14.30 cents      13.47 cents
     Items excluded:
     Restructuring
      and merger-related
      items               (0.21)            (0.08)           (0.06)
     MTM adjustments
      to fuel hedges
      settling in
      future periods          -             (0.39)               -
                            ---             -----              ---
     CASM excluding
      special items       11.35 cents       13.83 cents      13.41 cents
     Fuel expense
      and related
      taxes               (3.53)            (6.20)           (5.75)
                          -----             -----            -----
     CASM excluding
      fuel expense
      and related
      taxes and
      special items        7.82 cents        7.63 cents       7.66 cents
                           ====              ====             ====
     ASMs                62,234            65,092           40,371
                         ======            ======           ======



                                    Three Months Ended Sept. 30,
                                    ---------------------------
                                2009             2008          2008
                                ----             ----          ----
                                GAAP           Combined        GAAP
                                ----           --------        ----
    (in millions, except per
     cent data)

    Consolidated operating
     expense                  $7,370           $9,619          $5,588
    Less regional carriers
     operating expense        (1,527)          (1,854)         (1,312)
                              ------           ------         -------
    Mainline operating
     expense                  $5,843           $7,765          $4,276
                              ======           ======          ======
    Mainline CASM              10.87 cents      13.68 cents     12.26 cents
    Ancillary businesses       (0.33)           (0.55)          (0.44)
                               -----            -----           -----
    Mainline CASM
     excluding items not
     related to generation
     of a seat mile            10.54 cents      13.13 cents      11.82 cents
    Items excluded:
    Impairment of goodwill
     and other assets              -                -               -
    Restructuring and
     merger-related items      (0.23)           (0.07)          (0.02)
    MTM adjustments to fuel
     hedges settling in
     future periods                -            (0.44)              -
                                 ---            -----             ---
    Mainline CASM
     excluding special
     items                     10.31 cents      12.62 cents     11.80 cents
    Fuel expense
     and related
     taxes                     (3.37)           (5.81)           (5.22)
                               -----            -----            -----
    Mainline CASM
     excluding fuel
     expense and related
     taxes and special
     items                      6.94 cents       6.81 cents       6.58 cents
                                ====             ====             ====
    ASMs                      53,772           56,755           34,874
                              ======           ======           ======


                                             Nine Months Ended Sept. 30,
                                             ---------------------------

                                               2009           2008
                                               ----           ----
                                               GAAP        Combined
                                               ----        --------
     (in millions, except per cent data)
     CASM                                     12.17  cents   20.37  cents
     Ancillary businesses                     (0.32)         (0.52)
                                              -----          -----
     CASM excluding items not related
      to generation of a seat mile            11.85  cents   19.85  cents
     Items excluded:
     Impairment of goodwill and other
      assets                                      -          (6.26)
     Restructuring and merger-related items   (0.16)         (0.11)
     MTM adjustments to fuel hedges
      settling in future periods                  -          (0.05)
                                                  -          -----
     CASM excluding special items             11.69  cents   13.43  cents
     Fuel expense and related taxes           (3.53)         (5.48)
                                              -----          -----
     CASM excluding fuel expense
      and related taxes and special items      8.16  cents    7.95  cents
                                               ====           ====
     ASMs                                   177,003        188,066
                                            =======        =======



                                              Nine Months Ended Sept. 30,
                                              ---------------------------
                                                  2009          2008
                                                  ----          ----
                                                  GAAP        Combined
                                                  ----        --------
     (in millions, except per cent data)
     Consolidated operating expense            $21,536        $38,307
     Less regional carriers operating expense   (4,347)        (5,442)
                                                ------         ------
     Mainline operating expense                $17,189        $32,865
                                               =======        =======
     Mainline CASM                               11.30  cents   20.13  cents
     Ancillary businesses                        (0.38)         (0.60)
                                                 -----          -----
     Mainline CASM excluding items not
      related to generation of a seat mile       10.92  cents   19.53  cents
     Items excluded:
     Impairment of goodwill and other
      assets                                         -          (7.21)
     Restructuring and merger-related
      items                                      (0.18)         (0.12)
     MTM adjustments to fuel hedges
      settling in future periods                     -          (0.06)
                                                     -          -----
     Mainline CASM excluding special items       10.74  cents   12.14  cents
     Fuel expense and related taxes              (3.46)         (5.06)
                                                 -----          -----
     Mainline CASM excluding fuel expense
      and related taxes and special items         7.28  cents    7.08  cents
                                                  ====           ====
     ASMs                                      152,141        163,254
                                               =======        =======

SOURCE Delta Air Lines

http://www.delta.com

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Companies: Delta Air Lines, Inc. (DAL), Delta Air Lines, Inc. (DALw)

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News and Blogs

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Business briefs | detnews.com | The Detroit News

www.detnews.com

...voting rule change that would give it a better chance at winning. The union, which represents attendants at Delta merger partner Northwest Airlines, wants to gain control over attendants at the new Delta, the world's largest airline. Staff...

http://www.detnews.com/article/20091104/BIZ/911040321/1001

Continental officially joins Star

www.flightglobal.com | Oct 27, 2009

...25th airline to join first global airline alliance. The impetus for Continental's move was the merger between Delta Air Lines and Northwest Airlines that was unveiled in April 2008. Delta and Continental have considerable overlap in the...

http://www.flightglobal.com/articles/2009/10/27/334023/continental-officially-joins-star.html

The merged Delta-Northwest: Smooth flight | StarTribune.com

www.startribune.com

...expert Terry Trippler, who called the Northwest-Delta merger "an extremely smooth transition" for...editor of Inside Flyer magazine, praised Delta and Northwest for letting customers merge their accounts incrementally and for...

http://www.startribune.com/business/63890797.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_Yyc:aULPQL7PQLanchO7DiUsX

Incoming Continental CEO doesn't rule out United merger

www.chicagotribune.com

...losing market share." By 2012, Delta predicts the Northwest deal will have improved its bottom...said. "The market would love a merger," he added. Delta, so far, is absorbing Northwest with relatively few disruptions...

http://www.chicagotribune.com/business/chi-biz-united-nov3,0,7451631.story

Union Fumes Over Punishment of Northwest Pilots

online.wsj.com

...voluntary incident reporting. Since then, all three carriers have reinstated them. Until now, the recent merger of Northwest and Delta was seen boosting voluntary reporting arrangements because the combined company planned to set up an ambitious...

http://online.wsj.com/article/SB125682683136816019.html

Air T Reports Unaudited Second Quarter Results

www.aviationtoday.com

...of the Department of Justice's Antitrust Division on its Decision to Close its Investigation of the Merger of Delta Air Lines Inc. and Northwest Airlines Corporation 'American Airlines Living Your Dream' Profiles Maryland-Based Entrepreneur...

http://www.aviationtoday.com/pressreleases/Air-T-Reports-Unaudited-Second-Quarter-Results_36328.html

Web Sites

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Australia - Air Force McDonnell Douglas F/A-18A Hornet

www.airliners.net

...Failure Congressman Vito Fossella May Also Go... Photos from the crash site Airbus finalizes Etihad deal worth billions Delta, Northwest Pilots Get Seniority Ruling More Continental customers to fly in style All Aviation Industry News...

http://www.airliners.net/open.file?id=1446138

PlaneBusiness.com

...and AirTran See CFOs Depart Merger Mania: Delta/Northwest Deal Hung Up on Pilot Seniority Fight Merger...Details on the Proposed United/Continental Deal; Delta/Northwest Deal Hangs on Pilot Seniority Agreement

http://www.planebusiness.com/

Guinee Air Service - - Conkary - Guinea - Cdte Ibrahima Kouyate, President - ATI, Air Transport

www.rati.com

...Related Articles Delta TechOps plans to offer Airbus component services Delta TechOps eyes expansion through Northwest merger Delta inks engine maintenance deal with Alaska Airlines Rolls-Royce, Chromalloy form turbine coatings and...

http://www.rati.com/ALLANDING_1525.htm

FEATURE: Christine Ourmières (July 2)

www.abtn.co.uk

...agreement to co-operate on transatlantic flights in 2007. Two months ago in Paris, AF KLM signed a global deal with Delta and Northwest Airlines - now being take over by Delta - to co-operate closely on services around the world, including...

http://www.abtn.co.uk/comment/0212725-feature-christine-ourmi%C3%A8res-july-2

Delta Air Lines - Airline Tickets and Airfare to Worldwide Destinations

... Worldwide Sites | Country/Language | Profile | Need Help? | Contact Us | Site Map Delta & Northwest Merger FAQs Experience delta.com in a whole new way—your way. Your current selection is: Country Language ...

http://www.delta.com/

delta airlines

www.flightglobal.com

...emerging one year ahead of schedule on 30 April 2007. On 15 April 2008 the airline agreed to merge with Northwest Airlines, through which the Delta identity would be retained by the merged carrier. The merger tool place on 29 October 2008...

http://www.flightglobal.com/landingpage/delta%20airlines.html

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