達美航空 (DAL) 2001 Q1 法說會逐字稿

DELTA AIR LINES CONFERENCE CALL

達美航空電話會議

Good morning and thank you for participating in Delta Airlines conference call. All participants will be able to listen only until the question and answer session of the call. At the request of Delta Airlines, this cassette is being recorded. If you have any objections, you may disconnect at this time. Moderating today's call is Mr. Joe Kolshak, Director of Investor Relations. Mr. Kolshak you may begin.

早安，感謝您參加達美航空電話會議。所有參與者只能在電話問答環節之前收聽。應達美航空的要求，正在錄製錄音帶。如果您有任何異議，您可以此時斷開連接。投資者關係總監 Joe Kolshak 先生主持今天的電話會議。科爾沙克先生，您可以開始了。

Good morning everybody and welcome. Today, I am joined on the call by our Chairman and Chief Executive Officer, Leo Mullin, and other members of our senior management team, but before you get into the conduct of the former call, I need to make you aware that our call today, is being transmitted live due to Worldwide web and it's also being recorded. Also if you decide to ask a question, it will be included in both our live transmission, as well as any future use of the recording. In the recording, rather use the transmission or the text or audio for today's call, is not allowed without the express written permission of Delta Airlines. As well, today's discussion contains various forward-looking statements, which represent the company's beliefs or expectation regarding future events. Our forward-looking statements involve the number of risks and uncertainties that could cause the actual results to differ materially from the projected results. Some of the factors that caused these differences are set forth under the caption; forward-looking information in Delta's December 31, 2000, 10-K and other dates past and future SEC filings. I would now like to turn the call over to our Chairman, Leo Mullin.

大家早安，歡迎光臨。今天，我們的董事長兼首席執行官 Leo Mullin 以及我們高級管理團隊的其他成員也加入了我的電話會議，但在您開始之前的電話會議之前，我需要讓您知道我們今天的電話會議，由於萬維網正在即時傳輸，並且也正在被記錄。此外，如果您決定提出問題，它將包含在我們的現場傳輸以及未來錄音的任何使用中。未經達美航空明確書面許可，不得在錄音中使用今天通話的傳輸或文字或音訊。此外，今天的討論包含各種前瞻性陳述，它們代表了公司對未來事件的信念或期望。我們的前瞻性陳述涉及大量風險和不確定性，可能導致實際結果與預測結果有重大差異。標題下列出了造成這些差異的一些因素；達美航空 2000 年 12 月 31 日、10-K 以及過去和未來向 SEC 提交的其他日期的前瞻性資訊。我現在想將電話轉給我們的主席利奧·穆林。

Good morning and thank you for joining us today to discuss Delta's March quarter 2001 results, and here on the call with me are Michelle Burns our CFO; Fred Reid, our Chief Marketing Officer; Ed Bastian, Controller; Mark Drusch, SVP for Network Management. Michelle will provide you with a forward quote on numbers for the quarter, and Fred will review revenue and network performance in just a few minutes. So I would like to begin this morning's call, with some more general observations. While the first quarter is traditionally weak for the airline industry, Delta faced several additional challenges during this period, as you know. As a result of the slowing US and global economies, plus the impact of labor issues at Comair and Delta, we posted a net loss of a $122 million, our first loss in 24 straight quarters. The loss was somewhat below our earlier downward guidance, which was developed prior to the Comair work stoppage. Without the revenue losses emanating from the Comair strike, we would have come in at the low end of our original estimate of a loss of 85 to 110 million. While we are clearly disappointed in these numbers, we remain confident, that these losses are largely the event driven result of temporary conditions and issues. At Delta, we intend to continue managing strategically through this difficult period, with a tough minded focus on emerging at the other end fully prepared to catch the expected uptake in the economy. So, this morning let me review with you our perspective on the issues at hand and our reasons for confidence about the future. The first and foremost component in our March quarter performance is of course the economy. You need only to check the pages of Wall Street Journal or any other business publication to see that few companies are escaping the effects of the current economic environment. In fact, you may recall that "a 2001 economy that will not yield the kind of revenue gains generated in the 2000" is a subject that we raised with you during the last analyst call in January, and since then the situation has steadily declined.

早安，感謝您今天加入我們討論達美航空 2001 年 3 月季度的業績，與我一起參加電話會議的是我們的首席財務官 Michelle Burns。 Fred Reid，我們的行銷長；巴斯蒂安（Ed Bastian），財務長； Mark Drusch，網路管理資深副總裁。米歇爾將為您提供本季度數據的前瞻性報價，弗雷德將在幾分鐘內審查收入和網路績效。因此，我想以一些更一般性的意見開始今天上午的電話會議。如您所知，雖然第一季對航空業來說歷來疲軟，但達美航空在此期間面臨一些額外的挑戰。由於美國和全球經濟放緩，加上 Comair 和 Delta 勞工問題的影響，我們淨虧損 1.22 億美元，這是我們連續 24 個季度以來首次虧損。該損失略低於我們先前在康姆停工之前製定的下行指引。如果沒有 Comair 罷工造成的收入損失，我們的損失將低於最初估計的 85 至 1.1 億美元。雖然我們顯然對這些數字感到失望，但我們仍然相信，這些損失很大程度上是臨時條件和問題的事件驅動的結果。在達美航空，我們打算繼續在這段困難時期進行策略管理，並以堅定的態度專注於在另一端的崛起，做好充分準備，以趕上經濟的預期成長。因此，今天早上讓我與大家一起回顧我們對當前問題的看法以及我們對未來充滿信心的理由。我們三月季度業績的首要組成部分當然是經濟。您只需查看《華爾街日報》或任何其他商業出版物的版面，您就會發現很少有公司能夠逃脫當前經濟環境的影響。事實上，您可能還記得，「2001 年的經濟不會產生2000 年那樣的收入成長」是我們在1 月份的最後一次分析師電話會議中向您提出的一個主題，從那時起，情況就在穩步下降。

At that time, GDP consensus per calendar year 2001 was 2.2%. But over the last several months after significant revisions, the GDP consensus forecast is fallen to 1.5% and the range for this consensus extends from flat to the year to a high of 1.8. The latest indicators increasingly point to a larger economic slowdown than had previously been expected. An unfortunate reality for our industry is that since business travel costs are an early cost cutting target, the airlines suffer a disproportionate amount of revenue pain during these cycles related to the rest of the business world. The second set of factors affecting our performance requires a bit more comments specific to Delta, since as you know, Comair is now in its 24th day of a strike called by the Air Line Pilot's Association or ALPA, and Delta Airlines and ALPA are in the 20th day of its 30-day cooling off period. Turning first to the strike at Comair, I do want to say that throughout the contract negotiation process, we have paid careful attention to both the service impact on our customers and the financial implications for our investors. Well in advance of the actual work stoppage, Delta, Comair and Atlantic Southeast Airlines employees, began working closely to develop processes to best managed passenger inconvenience in the event of a strike. This helped ensure that during the first two weeks of the work stoppage, 80% of the affected Comair passengers were contacted and rebooked prior to flight time and 60% were re-accommodated on Delta. We are all enormously proud of the dedication these employees have brought to this effort and grateful for their hard work. Quite candidly, this is a dispute that by all good reasons should have been settled well before it spilled into the customer service arena. Our offer to Comair pilots, which they voted on prior to the strike provides for improved salary and benefits that would cost Comair an additional 30% over the five-year life of the contract. ALPA in contrast, continues to propose changes that would raise Comair's salary and benefits cost by more than 80% over the life of the contract during a period when the forecast for inflation rates ranges between 2 and 3%.

當時，2001 年歷年 GDP 的共識為 2.2%。但在過去幾個月經過大幅修正後，GDP共識預測降至1.5%，共識區間從與年內持平延伸至1.8的高點。最新指標越來越顯示經濟放緩幅度超出先前預期。對於我們行業來說，一個不幸的現實是，由於商務旅行成本是早期的成本削減目標，因此航空公司在與商業世界其他領域相關的這些週期中遭受了不成比例的收入痛苦。第二組影響我們業績的因素需要更多針對達美航空的評論，因為如您所知，康姆航空目前已進入航空公司飛行員協會或ALPA 號召的罷工的第24 天，而達美航空和ALPA正處於罷工之中。30 天 冷靜期的第 20 天。首先談談康航空公司的罷工，我確實想說，在整個合約談判過程中，我們都非常關注對客戶的服務影響以及對投資者的財務影響。在實際停工之前，達美航空、康姆航空和大西洋東南航空的員工就開始密切合作，制定流程，以便在罷工時最好地管理乘客的不便。這有助於確保在停工的前兩週內，80% 受影響的 Comair 乘客在飛行時間之前得到聯繫並重新預訂，60% 的乘客被重新安排到達美航空。我們都為這些員工為此付出的奉獻感到非常自豪，並對他們的辛勤工作表示感謝。坦白說，從所有充分的理由來看，這場糾紛應該在蔓延到客戶服務領域之前就得到解決。我們向 Comair 飛行員提供的提議是他們在罷工前投票決定的，該提議規定提高工資和福利，這將使 Comair 在合約的五年期限內額外增加 30% 的費用。相較之下，ALPA 繼續提出改革建議，在預計通貨膨脹率在 2% 至 3% 之間的時期內，康姆航空的工資和福利成本將在合約期間內提高 80% 以上。

In fact, if you calculate a compound annual growth rate in terms of pilot cost additions to Comair associated with the ALPA proposal, it would be 27% per year, and for Comair it would be per the proposal that we have on the table, would be 18%. So, we have a strike going on, but we have offered an 18% compound annual growth rate and total pilot compensation over that period. It is a course of price tag and the decision not to meet ALPA's demands in both financial and customer service terms, but this is in many ways a difficult position to maintain, Comair has determined that it can only protect its regional airline cost structure and the potential for growth in the RJ market by keeping pilot cost within a certain range and Delta fully supports that position. By not yielding to economically unfeasible demands, we are making a long-term investment in our company's future. Should we accept ALPA's demands, the damage would significantly limit Comair's potential for profitable growth and a domino effect would quickly extend to Atlantic Southeast Airlines, and then to our contract carriers ACA and SkyWest. Such a change in cost structure, would inevitably affect Delta's plans for expanding regional jet service to small and mid-size communities. New small jet service to these cities and towns has been well received by passengers and drawn by attractive profit margins, Delta has committed to a leadership role in the market. But if regional jets become too expensive to operate profitably, especially given the smaller passenger loads they carry, then the market becomes less attractive. In the meantime, of course, we're also committed to stemming the losses to the greatest degree possible. Hence we made announcements on Monday to (1) To reduce the Comair fleet from 119 to 102 aircraft by retiring all Embraer-120 Brasilia aircraft and putting 8 regional jets currently in the fleet on the market. (2) We have stopped all future aircraft deliveries. (3) We have reduced future flight

事實上，如果您計算與 ALPA 提案相關的 Comair 飛行員成本增加的複合年增長率，則每年將為 27%，而對於 Comair 來說，這將根據我們提出的提案計算，為 18%。因此，我們正在進行罷工，但在此期間我們提供了 18% 的複合年增長率和飛行員總薪酬。這是一個價格標籤的過程，決定不滿足 ALPA 在財務和客戶服務方面的要求，但這在許多方面都是一個難以維持的位置，Comair 已確定它只能保護其支線航空公司的成本結構和透過將飛行員成本控制在一定範圍內，我們可以看到RJ 市場的成長潛力，達美航空完全支持這一立場。透過不屈服於經濟上不可行的要求，我們正在對公司的未來進行長期投資。如果我們接受 ALPA 的要求，損害將嚴重限制 Comair 的盈利增長潛力，多米諾骨牌效應將迅速波及大西洋東南航空公司，然後波及我們的合約承運人 ACA 和 SkyWest。這種成本結構的變化將不可避免地影響達美航空向中小型社區擴展支線噴射機服務的計畫。飛往這些城鎮的新型小型噴射機服務深受乘客歡迎，並受到誘人的利潤率的吸引，達美航空致力於在市場中發揮領導作用。但如果支線飛機變得太昂貴而無法獲利，特別是考慮到其載客量較小，那麼市場的吸引力就會降低。當然，同時，我們也致力於最大程度地減少損失。因此，我們在周一宣布 (1) 透過退役所有 Embraer-120 Brasilia 飛機並將目前機隊中的 8 架支線噴射機投入市場，將 Comair 機隊數量從 119 架飛機減少到 102 架。 (2) 我們已停止所有未來的飛機交付。 (3) 我們減少了未來的航班

schedules. Now let me turn briefly to our pilot contract discussions at Delta Airlines where a completely different set of factors are in place, since President Bush has stated emphatically that there will be no strikes at major airlines this year. Delta and ALPA remain far apart on the key issues. Currently, at distances in excess of 400 million a year or $1.7 billion over the life of the contract. While negotiations resumed today in Washington between Delta and ALPA, we are not optimistic about a quick settlement. We are, however, extremely optimistic in fact virtually certain that we will arrive at a contract without a strike. Thereby ensuring our 300,000 daily customers will not be required to endure the difficulties of the strike, and that's a win for everyone involved. In our view, it is highly likely that an agreement will be reached during the 60-day span of the presidential emergency board, since both sides will be highly motivated to reach such a settlement. Now, as I said earlier, we believe that both the economy and the labor situations are time limited event driven issues, and hence we remain confident about the future. Nonetheless, we can also assure you that Delta's management team is not simply waiting for things to get better. We already maintained the lowest cost per available seat mile in the industry, and in addition, we have in place a carefully constructed prioritized set of cost management initiatives. These initiatives begin with the items that are easiest and least painful to implement, and provide a clear measured plan to escalating this process on an as needed basis. The first steps include, for example, reallocating capacity, restricting non-strategic hiring, reducing reliance on third party service providers, and deferring spending for advertising and promotion. Now before I turn the program over to Michelle Burns and Fred Reid for those updates, I would like to offer one last word of appreciation to the Delta workforce for the excellent performance in the face of recent challenges. Their fine efforts throughout the year were recognized by an outside source earlier this year, when Airline Quality Rating Study

時間表。現在讓我簡要談談我們在達美航空的飛行員合約討論，由於布希總統強調今年主要航空公司不會發生罷工，因此存在一系列完全不同的因素。達美航空和 ALPA 在關鍵問題上仍有很大分歧。目前，每年的運輸距離超過 4 億次，即合約期間的運輸量為 17 億美元。雖然達美航空和 ALPA 之間的談判今天在華盛頓恢復，但我們對迅速達成和解並不樂觀。然而，我們非常樂觀，事實上幾乎可以肯定我們將在不發生罷工的情況下達成合約。從而確保我們每天的 30 萬名客戶將無需忍受罷工帶來的困難，這對所有參與者來說都是一場勝利。我們認為，在總統緊急委員會的60天內達成協議的可能性很大，因為雙方都非常有動力達成這樣的解決方案。現在，正如我之前所說，我們認為經濟和勞動力狀況都是有時間限制的事件驅動問題，因此我們對未來仍然充滿信心。儘管如此，我們也可以向您保證，達美航空的管理團隊並不是簡單地等待情況好轉。我們已經保持了業內最低的每可用座位英里成本，此外，我們還制定了一套精心構建的優先成本管理計劃。這些措施從實施起來最簡單、最不痛苦的項目開始，並提供了一個明確的衡量計劃，以根據需要升級此流程。例如，第一步包括重新分配產能、限制非策略性招聘、減少對第三方服務提供者的依賴以及延遲廣告和促銷支出。現在，在我將計劃轉交給 Michelle Burns 和 Fred Reid 進行更新之前，我想對達美員工在面對最近挑戰時的出色表現表示最後的感謝。他們全年的出色努力在今年早些時候得到了外部消息來源的認可，當時航空公司品質評級研究

named Delta the best domestic major carrier in the year 2000, an achievement that brings great pride to our company. As we continue this morning with our review of the March quarter, we'll outline for you other strengths that bring considerable pride to Delta, including our financial and operational foundation, and the accompanying expectations and opportunities for solid and profitable growth. The position strength that we have worked over the last few years to create the Delta is the most basic reason for our optimism today, as we look past the noise of this current period of time. Working from our well-constructed corporate foundation, we remain certain that once the storm of recent events passes, Delta will be the airline best positioned to assume the industry lead in all areas and that includes consistently superior financial returns. But with more about those and other points, I will turn the program over now to Michelle Burns our Chief Financial Officer.

達美航空被評為2000年度最佳國內主要航空公司，這項成就讓我們公司感到非常自豪。今天上午，當我們繼續回顧三月季度時，我們將向您概述其他讓達美航空感到自豪的優勢，包括我們的財務和營運基礎，以及隨之而來的穩健和獲利成長的期望和機會。我們在過去幾年中為創建三角洲而付出的努力是我們今天保持樂觀的最基本原因，因為我們超越了當前時期的噪音。憑藉我們建立良好的企業基礎，我們堅信，一旦近期事件的風暴過去，達美航空將成為最有能力在所有領域保持行業領先地位的航空公司，其中包括始終如一的卓越財務回報。但在了解更多關於這些和其他要點的信息後，我現在將把該計劃移交給我們的首席財務官米歇爾·伯恩斯 (Michelle Burns)。

Thank you, Leo. Good Morning. I'd like to provide you with some highlights from the quarter. Just a reminder that during the March quarter we fully annualized both ASA and Comair acquisitions, and now we'll only report consolidated results. Furthermore, as of December 31, 2000, we are reporting on a calendar year basis. For the quarter, excluding unusual items and SFAS 133, Delta recorded a net loss of $122 million on an operating loss of $115 million, reducing a loss per share of a $1.2. Passenger revenues were down 1.9% due to the slowing US economy and ongoing labor negotiations at Delta and Comair. Also, keep in mind that we had a $25 million benefit in the March 2000 quarter from the flight attendant cooling off at USAir. In our March 13th 8-K, you will remember that we anticipated a loss of 70 to 90 cents per share, which did not include a strike at Comair. The Comair strike accounts for the additional 12-cent loss per share above the range given. Cargo and other revenues were essentially flat, year-over-year. Consolidated CASM was up 9.4%, which fell within the range of our original guidelines of an increase of 9 to 9.5%. Consolidated non-fuel CASM was up 8.4%, which was also in line with our original guidance. Salaries and related costs were up 186 million or 13%. This increase, year-over-year, was driven primarily by a general increase for our non-contract employees, which became effective April 1, 2000, an additional headcount driven primarily by the FAA, mandated scheduling requirements for pilots and flight attendants, as well as an increase in line mechanics and ramp employees. Aircraft fuel expenses are up $80 million or 18.5%. Consolidated cost per gallon was 74 cents, up 19.6%. Our un-hedged price per gallon average was 89 cents during the quarter.

謝謝你，利奧。早安.我想向您提供本季度的一些亮點。請注意，在 3 月季度，我們對 ASA 和 Comair 的收購進行了完全年度化，現在我們將只報告合併結果。此外，截至 2000 年 12 月 31 日，我們按日曆年進行報告。本季，排除異常項目和 SFAS 133，達美航空錄得淨虧損 1.22 億美元，營運虧損 1.15 億美元，每股虧損減少 1.2 美元。由於美國經濟放緩以及達美航空和康航空正在進行的勞資談判，客運收入下降了 1.9%。另外，請記住，2000 年 3 月這一季度，美國航空公司的空服人員降溫為我們帶來了 2500 萬美元的收益。在我們 3 月 13 日的 8-K 報告中，您會記得我們預計每股虧損 70 至 90 美分，其中不包括 Comair 的罷工。 Comair 罷工導致每股額外虧損 12 美分，高於給定範圍。貨運和其他收入同比基本持平。綜合CASM上漲9.4%，落在我們最初指引的9%至9.5%的漲幅範圍內。綜合非燃料 CASM 上漲 8.4%，這也符合我們最初的指導。工資和相關成本增加了 1.86 億美元，即 13%。這一同比增長主要是由於我們的非合約制員工數量普遍增加（該政策自2000 年4 月1 日起生效），以及主要由美國聯邦航空局(FAA) 推動的額外人員數量，以及對飛行員和空服員的強制排班要求，以及生產線機械師和坡道員工的增加。飛機燃油費用增加了 8,000 萬美元，即 18.5%。每加侖綜合成本為 74 美分，上漲 19.6%。本季我們每加侖未對沖的平均價格為 89 美分。

We were hedged 52% during the quarter, and those hedged gains totaled $106 million compared to $146 million in the March 2000 quarter. Commission expense was down $28 million or 16.6%. Our effective online commission rate was 3.9%, down from 4.6% last year. Revenue from online channels currently accounts for approximately 12% of passenger revenue, compared to 8% in the March 2000 quarter. We expect to grow this to 17% by the end of calendar year 2001. In addition, revenue from delta.com presented 7% of passenger revenue, up from 3.5% in the March 2000 quarter. Delta.com is our lowest cost distribution channel. It is interesting to note that in January of this year, delta.com accounted for 17% of all travel revenues sold on the Internet. This is a particularly impressive performance due to buyer behavior during labor disruption, which drived the customers away from online channels. Appreciation and amortization was up $27 million or 9.2%. This increase is attributable to the purchase of 59 new aircrafts over the past year. That equates to approximately one aircraft per week. Contract and services increased $30 million or 13.3%. This is primarily a result of higher maintenance, technology, and airport outsourcing costs. Other selling expenses were up $19 million or 12%, due mainly to higher advertising costs related to our new service promotions and the 2002 Winter Olympics sponsorship. Aircraft maintenance was up $16 million or 19.4%. This increase is primarily from higher airframe materials due to increased volumes, as well as inventory requirements for the new aircraft purchase during the quarter. Other operating expenses increased 27 million or 13.3%. This increase is a result of higher interrupted trip expense as well as the rollout of our new uniform program.

我們在本季進行了 52% 的對沖，這些對沖收益總計 1.06 億美元，而 2000 年 3 月季度的對沖收益為 1.46 億美元。佣金費用減少 2,800 萬美元，即 16.6%。我們的有效線上佣金率為 3.9%，低於去年的 4.6%。目前，線上通路的收入約佔客運收入的 12%，而 2000 年 3 月季度的比例為 8%。我們預計到 2001 年底，這一比例將成長到 17%。此外，來自 delta.com 的營收佔客運收入的 7%，高於 2000 年 3 月季度的 3.5%。 Delta.com 是我們成本最低的通路。有趣的是，今年 1 月份，delta.com 佔網路上所有旅遊收入的 17%。這是一個特別令人印象深刻的表現，因為勞動力中斷期間買家的行為導致客戶遠離線上管道。升值和攤提增加 2,700 萬美元，成長 9.2%。這一增長歸因於去年購買了 59 架新飛機。這相當於每周大約一架飛機。合約和服務增加了 3000 萬美元，即 13.3%。這主要是由於維修、技術和機場外包成本較高。其他銷售費用增加了 1,900 萬美元，即 12%，主要是由於與我們的新服務促銷和 2002 年冬季奧運會贊助相關的廣告費用增加。飛機維修費用增加了 1,600 萬美元，即 19.4%。這一增長主要是由於銷量增加以及本季購買新飛機的庫存需求導致機身材料增加。其他營業費用增加2700萬，增幅13.3%。這一增長是由於中斷旅行費用增加以及我們新的製服計劃的推出。

Non-operating expense increased $38 million, driven primarily by two items. First, with higher interest expense incurred from higher debt levels, and second, miscellaneous income was down roughly $22 million, which reflected lower equity earnings from Worldspan, as well as a one-time Worldspan charge of $8 million. Our effective tax rate was 40.2% in the March quarter. Turning to our balance sheet we ended the quarter with cash and short-term investments of $1.2 billion; long-term debt and capital lease obligations totaled $6 billion and shareowners equity was $5.1 billion. Essentially, we were a net cash user during the quarter to the tune of $400 million, but that is after, roughly $700 million of reinvestment in our company. I'll now turn it over to Fred, who will discuss revenue and network performance.

非營運支出增加了 3800 萬美元，主要由兩項因素推動。首先，債務水準較高導致利息支出增加；其次，雜項收入減少了約 2,200 萬美元，反映出 Worldspan 的股本收益減少，以及 Worldspan 的一次性費用為 800 萬美元。三月季度我們的有效稅率為 40.2%。轉向我們的資產負債表，本季末我們的現金和短期投資為 12 億美元；長期債務和資本租賃義務總計 60 億美元，股東權益為 51 億美元。從本質上講，我們在本季的淨現金用戶達到了 4 億美元，但那是在對我們公司進行了大約 7 億美元的再投資之後。我現在將其交給 Fred，他將討論收入和網路效能。

Thank you Michelle and good morning. In the revenue and network environment, two factors negatively influenced our revenue performance for the March quarter. First of all the weakening economy, and secondly, the pilot labor issues at both Delta and Comair. First, as we conveyed in January's call, industry weakness driven by a slowing economy was evident throughout the quarter. In fact, it turned out slightly worse than we estimated in January and caused a majority of our revenue problem in the quarter. Second, our continued pilot labor negotiations with both Delta and Comair are affecting performance. Comair went on strike on March 26, taking an average of $3.2 to $4 million per day of revenue from our consolidated network. And, on the main line, book away levels have increased as we approach the end of the 30-day cooling off period, which is now running. The network strategy overall that we conceived several years ago remained optimal today. It is as appropriate in these difficult times as it was in the prosperous ones. We are continuing to reallocate flying to our core strength markets while leveraging our new connecting bank structure in our Atlanta hub. We are also maintaining a diversified network strategy utilizing all of our product lines to improve service to hubs and significant point-to-point markets with significant investments in added profitable RJ flying as a key element of this strategy. Building on our growth strategy in the Northeast we successfully added JFK to Tokyo service on April 1, and we will begin service to the Middle East from JFK to Tel Aviv, Cairo, and Dubai, starting in June. We will also begin our first Trans-Atlantic service out of Boston to London's Gatwick Airport, also on June 1. Latin and Pacific performance exceeded expectations for the quarter, despite the challenges of a 64% ASM increase in the Latin entity. I'd like now to turn briefly to the geographical entities, beginning with North America, which represents 77% of our system traffic in capacity.

謝謝米歇爾，早安。在營收和網路環境中，有兩個因素對我們三月季度的營收表現產生了負面影響。首先是經濟疲軟，其次是達美航空和康姆航空公司的試點勞工問題。首先，正如我們在一月份的電話會議中所傳達的那樣，經濟放緩導致的行業疲軟在整個季度都很明顯。事實上，結果比我們一月份的預期略差，並導致了我們本季大部分收入問題。其次，我們與達美航空和康航空公司持續進行的試點勞資談判正在影響業績。 Comair 於 3 月 26 日舉行罷工，平均每天從我們的合併網路中損失 320 至 400 萬美元的收入。而且，從主線來看，隨著 30 天冷靜期即將結束，預訂量增加，目前冷靜期正在進行中。我們幾年前所構思的整體網路策略至今仍然是最佳的。無論是在困難時期還是在繁榮時期，這都是合適的。我們將繼續重新分配飛往核心優勢市場的航班，同時利用亞特蘭大樞紐的新連接銀行結構。我們也利用我們所有的產品線來維持多元化的網路策略，以改善對樞紐和重要點對點市場的服務，並在增加獲利的 RJ 飛行方面進行大量投資，作為該策略的關鍵要素。基於我們在東北部的成長策略，我們在4 月1 日成功開通了從甘迺迪機場飛往東京的航班，並且從6 月開始，我們也將開始從甘迺迪機場飛往中東的特拉維夫、開羅和杜拜的航班。我們也將於 6 月 1 日開始從波士頓飛往倫敦蓋威克機場的首條跨大西洋航班。儘管拉丁實體 ASM 成長 64%，但拉丁美洲和太平洋地區的業績超出了本季的預期。我現在想簡單談談地理實體，從北美開始，它占我們系統流量容量的 77%。

In the North American market our capacity was down 2.2% over the quarter last year, and was accompanied by a traffic drop of 4.1%. This drove a load factor reduction of 1.3 points to a total of 66.3%. We also saw a softening of yield, particularly in the later part of the quarter of 1%, driving a RASM of 2.9%. We are seeing weakness in mix, particularly for closed-in, book-net, business bookings, and that was evident for the industry, as well as Delta in the quarter. And as Michelle mentioned, our year-over-year comparisons are slightly complicated by the fact that we gained a $25 million revenue gain as a result of the US Airway's strike threat last year. Furthermore, there was weakness in pricing in the Florida markets, which resulted in no opportunities for peak season's fare premiums this year as opposed to last year. Finally, our regional jet strategy of both supporting our hubs and protecting our core strengths in the perimeter southeastern cities with point-to-point flying is working extremely well. I'd like to talk just for a moment about our position in Boston, where we are retaining our number one market share. In addition to the high frequency service to our principal hubs in Atlanta, Dallas, and Cincinnati from Boston, more RJ flying is planned for Boston this year, building on our service to keep business destinations. We also added Delta Express routes and frequencies. We are also pleased to add our first international flight, as I mentioned a few moments ago, to London. Our presence in Boston will also be augmented by two daily frequencies to Paris, operated by our SkyTeam partner Air France with the Delta code on it. And, in total we will operate from Boston to eight new cities this year.

在北美市場，我們的運能比去年同期下降了 2.2%，流量也下降了 4.1%。這導致載客率下降 1.3 個百分點，達到 66.3%。我們也看到殖利率疲軟，特別是在本季後期為 1%，帶動 RASM 達到 2.9%。我們看到混合預訂的疲軟，特別是封閉式預訂、網路預訂、商務預訂，這一點在本季度的行業和達美航空中表現得很明顯。正如 Michelle 所提到的，我們的同比比較有點複雜，因為去年全美航空公司的罷工威脅使我們獲得了 2500 萬美元的收入增長。此外，佛羅裡達州市場定價疲軟，導致今年旺季票價較去年沒有機會上漲。最後，我們的支線飛機策略透過點對點飛行來支援我們的樞紐並保護我們在東南周邊城市的核心優勢，效果非常好。我想談談我們在波士頓的地位，我們在那裡保持著第一的市場份額。除了從波士頓飛往亞特蘭大、達拉斯和辛辛那提主要樞紐的高頻服務外，今年還計劃在波士頓提供更多 RJ 航班，以我們的服務保留業務目的地。我們還增加了達美快運的航線和班次。正如我剛才提到的，我們也很高興增加飛往倫敦的第一個國際航班。我們在波士頓的業務也將增加，每天有兩班飛往巴黎的航班，由我們的天合聯盟合作夥伴法國航空運營，上面有達美航空代碼。今年，我們總共將從波士頓飛往八個新城市。

Turning to the Atlantic entity, which represents 16% of our system traffic, our capacity was up 8.4% in the quarter and traffic lagged that gain, registering a gain of 4.9%. This drove a load factor reduction of 2.5 points to 71.2%, but yield rose a very encouraging 8.4% in the quarter. This drove a RASM gain in the Atlantic of 4.9%. Turning to Latin America, which I would describe as the brightest spot in our network now, our capacity grew a very encouraging or a very exciting, I should say, 64.3% in the quarter and traffic registered a 47.3% gain. The ramp up of new services, of course, dropped our load factor by 7 points to 60.1%, but yield rose by 2.4% in the quarter. These factors drove a RASM decline of 8.2%, which is mostly attributable to longer haul and particularly ramp up new services. Including with the Pacific, which represents 3% of both our system traffic and capacity, our capacity was down 2.5% in the quarter, and our traffic rose 1.3%. Our load factor rose almost 3 points to 77.8%, yield dropped slightly by 1.4% driving a RASM gain or improvement of 2.3%. All of our existing routes are performing better and particularly encouraging is our Atlanta to [_______________] performance where our RASM was up 13% in the quarter. Now looking forward to the June quarter advanced booking a couple of points. First of all, we expect that our year-over-year revenue comparisons will continue to be challenging this quarter, due to the aforementioned economic and labor issues.

至於大西洋實體，它占我們系統流量的 16%，我們的容量在本季度增長了 8.4%，但流量落後於這一增長，增長了 4.9%。這導致載客率下降 2.5 個百分點，達到 71.2%，但本季殖利率卻成長了 8.4%，令人鼓舞。這使得大西洋地區的 RASM 成長了 4.9%。談到拉丁美洲，我將其描述為我們現在網路中最亮點的地區，我們的容量增長了非常令人鼓舞或非常令人興奮的，我應該說，本季度增長了64.3%，流量增長了47.3 %。當然，新服務的增加使我們的載客率下降了 7 個百分點，達到 60.1%，但本季殖利率上升了 2.4%。這些因素導致 RASM 下降 8.2%，這主要歸因於長途航線，尤其是新服務的增加。包括占我們係統流量和運力 3% 的太平洋地區在內，我們的運能在本季下降了 2.5%，但流量卻增加了 1.3%。我們的載客率上升了近 3 個百分點，達到 77.8%，收益率略有下降 1.4%，帶動 RASM 成長或改善 2.3%。我們所有現有的航線都表現較好，特別令人鼓舞的是我們的亞特蘭大至 [_______________] 航線，本季我們的 RASM 成長了 13%。現在期待六月季度提前預訂幾個點。首先，由於上述經濟和勞動力問題，我們預計本季的年比收入比較將繼續面臨挑戰。

Domestic bookings are down year-over-year through June. Trans-Atlantic market shows a softening of demand in April and May, but they do rebound in June to their previous levels. Premium cabin strength has offset coach cabin weakness in the first quarter and we see that trend continuing into the June quarter. New Latin markets continue to track above expectations through the spring, with the summer looking even stronger. The yield strength exhibited in the last two quarters should remain in the core markets. New Pacific markets are tracking with expectation while existing markets continue to show a strong mix looking forward. As a result of the current economic environment, which is resulting in lower booking as well as the ongoing labor issues, we now expect revenue in the June quarter to be $300 to $350 million lower than our original expectations, and this number does not include the current Comair strike, which as we mentioned earlier is costing $3 to $4 million a day in pretax revenue. And now I would like to turn the call back to Michelle to discuss cost and capacity guidance.

截至 6 月份，國內預訂量較去年同期下降。跨大西洋市場在 4 月和 5 月顯示需求疲軟，但在 6 月確實反彈至之前的水平。高級客艙的實力抵消了第一季經濟艙的疲軟，我們認為這種趨勢將持續到六月季度。春季新拉丁市場的表現持續超乎預期，夏季看起來更加強勁。過去兩個季度表現出的收益率實力應該會保持在核心市場。新的太平洋市場正符合預期，而現有市場則持續呈現強勁的組合前景。由於當前的經濟環境導致預訂量下降以及持續的勞動力問題，我們現在預計 6 月季度的收入將比我們最初的預期低 300 至 3.5 億美元，並且該數字不包括當前Comair 的罷工，正如我們之前提到的，每天的稅前收入損失為3 至400 萬美元。現在我想把電話轉回米歇爾，討論成本和產能指導。

First I'll discuss capacity and then I'll provide cost guidance. For the June quarter, system capacity is expected to be down 1% to 1.5% on a consolidated basis driven by pilot related schedule reductions and the current Comair strike. For the calendar year 2001, the system capacity is expected to be 1% to 1.5% on a consolidated basis driven by scheduled reductions in the Comair strike. This is somewhat lower than the earlier increase of 2% to 2.5% due to these reasons. Capacity growth for the full year would have been approximately 4%, had we not had the impact of the labor items in the schedule pull down. Now turning to cost guidance for the June quarter, for the June quarter we expect CASM and non-fuel CASM to be up between 5.5% to 6%. Turning to fuel, our consolidated cost per gallon for the June quarter is expected to be 70 cents per gallon. Calendar year 2001, due to the uncertainties of the current environment, which include a Comair strike, customer avoidance related to threaten Delta pilot strike, and of course the softening economy, our best estimate for full year CASM and non-fuel CASM growth is 2% to 3% on a consolidated basis. We expect careful expenditures for calendar year 2001 to be 3.2 billion, which includes $500 million of RJ capital leases. This concludes our quarterly conference call and now we will open the call for your questions.

首先我將討論容量，然後提供成本指導。在 6 月季度，由於飛行員相關的班次減少和當前 Comair 罷工，預計系統運力將下降 1% 至 1.5%。 2001 日曆年，由於 Comair 罷工計畫減少，預計系統容量將減少 1% 至 1.5%。由於這些原因，這略低於先前 2% 至 2.5% 的增幅。如果沒有工期縮短的勞動力項目的影響，全年產能成長約為 4%。現在轉向 6 月季度的成本指導，我們預計 6 月季度的 CASM 和非燃料 CASM 將上漲 5.5% 至 6%。說到燃料，我們 6 月季度的每加侖綜合成本預計為每加侖 70 美分。 2001 年曆年，由於當前環境的不確定性，其中包括Comair 罷工、與達美航空飛行員罷工威脅相關的客戶迴避，當然還有經濟疲軟，我們對全年CASM 和非燃油CASM 增長的最佳估計為2綜合計算%至3%。我們預計 2001 日曆年的謹慎支出為 32 億美元，其中包括 5 億美元的 RJ 資本租賃。我們的季度電話會議到此結束，現在我們將開始電話會議回答您的問題。

Thank you, at this time we would like to begin our formal question and answer session. If you would like to ask a question please press *1 on your touch-tone phone. You will be announced prior to asking your question. To withdraw your question you may press *2. Once again to ask a question please *1 now. Our first question comes Ray Neidl of ING Barings.

謝謝，現在我們要開始正式的問答環節。如果您想提問，請按下您的按鍵式電話上的 *1。在提問之前我們會通知您。要撤回您的問題，您可以按 *2。現在請再提問*1。我們的第一個問題來自 ING Barings 的 Ray Neidl。

Yes. I am just wondering regarding the labor situation, you seem very confident that there won't be a strike because of what President Bush said, but I am just wondering, does he have total control. Could you take us through the procedure? Do our Democratic friends in Congress or for that matter our Republican friends, could they prevent Bush from acting on this?

是的。我只是想知道關於勞工狀況，你似乎非常有信心不會因為布希總統所說的話而發生罷工，但我只是想知道，他是否擁有完全的控制權。您能指導我們完成整個程序嗎？我們在國會的民主黨朋友，或者就此而言，我們的共和黨朋友，他們能阻止布希對此採取行動嗎？

Ray, this is Leo and I'll answer that question. President Bush has stated several weeks ago that for all major airlines in the country there would be no airline strikes this year, and of course the first one in the queue was the Northwest Airlines situation with its mechanics, and he did in fact work with other agencies of government to see that a PEB was appointed, and of course that strike has subsequently been resolved or that situation was resolved without a strike, and we have been in constant contact with the Federal Government, with all of the various parties there and we have received constant reassurances that if in fact Delta and ALPA are not able to resolve the issues on the table that are going to be very aggressively discussed in the next 2 to 3 days starting today, our expectation is that the President would see via his various authorities that a PEB is appointed. He clearly does have the wherewithal to make that happen. Quite obviously the National Mediation Board is a key player with respect to that as is the Department of Transportation, which has been taking the lead under Secretary Minera in overseeing all of these activities. Every signal that we have from the Federal Government is that if, in fact, an impasse is reached at the end of the 30-day cooling off period is that the government will ensure that no strike occurs.

雷，我是利奧，我來回答這個問題。布希總統幾週前曾表示，全國所有主要航空公司今年都不會發生航空公司罷工，當然，排在第一位的是西北航空公司及其機械師的情況，事實上，他確實與其他航空公司合作過。政府機構負責監督任命 PEB，當然，罷工隨後得到解決，或者情況在沒有罷工的情況下得到解決，我們一直與聯邦政府以及那裡的所有各方保持聯繫，我們我們不斷得到保證，如果事實上達美航空和ALPA 無法解決將在從今天開始的未來2 到3 天內非常積極討論的問題，我們的期望是總統將透過他的各種指定 PEB 的當局。顯然他確實有足夠的資金來實現這一目標。很明顯，國家調解委員會是這方面的關鍵參與者，運輸部也是如此，運輸部一直在米內拉部長的領導下領導監督所有這些活動。我們從聯邦政府收到的每一個訊號都是，如果實際上在 30 天冷靜期結束時陷入僵局，政府將確保不會發生罷工。

Okay, and Leo, this is a follow up of Comair with the labor problems there, is this maybe having you have second thoughts about ownership of commuter feeders. It is a different operation. They are looking for mainline rates, because they are associated with Delta, maybe separating them from Delta would kind of cure them of that.

好的，利奧，這是 Comair 對那裡的勞動力問題的後續行動，這可能會讓您重新考慮通勤支線的所有權。這是一個不同的操作。他們正在尋找幹線利率，因為它們與達美航空有聯繫，也許將它們與達美航空分開可以解決他們的問題。

Ray, I think when we're this close to it, that's a longer term question and I would preliminarily say no, I do not have that thought at the moment. There were several reasons why we moved forward with respect to both Comair and ASA as acquisitions and the ROI was obviously a paramount to that kind of issue, but you will also recall that we were encountering some fairly significant operational issues particularly in the case of ASA, and given the expansion of Comair we are running into difficulties with respect to scheduling at all and all of those who have been working very, very well, and we are able to deploy all aspects now of our network on a highly coordinated basis in a centralized way, and I think that's bringing tremendous benefit to Delta Airlines, in terms of how we could operate in that respect. We clearly did anticipate that there was going to be significant increase in pilot pay at Comair, and that was built into our expectations when we did our acquisitions analysis, but clearly the proposals that ALPA has put on the table have exceeded those. But Ray, at this point without having gone back a lot and looked at it in detail, I would say no. It has not caused us to reconsider the wisdom of that. We continue to think that it represents a really great advantage for Delta to be able to deploy all elements of its armada in a coordinated way. It gives us a competitive advantage.

雷，我認為當我們如此接近它時，這是一個長期問題，我初步會說不，我目前沒有這個想法。我們推進 Comair 和 ASA 收購的原因有很多，而投資回報率顯然對這類問題至關重要，但您還會記得，我們​​遇到了一些相當重大的營運問題，特別是在 ASA 的情況下，並且考慮到Comair 的擴張，我們在調度方面遇到了困難，所有那些一直工作得非常非常好的人，我們現在能夠在高度協調的基礎上以高度協調的方式部署我們網絡的各個方面。集中化的方式，我認為這為達美航空帶來了巨大的好處，就我們如何在這方面進行運作而言。我們顯然確實預期 Comair 的飛行員薪酬將大幅增加，這在我們進行收購分析時已納入我們的預期，但顯然 ALPA 提出的提案已經超出了這些預期。但是雷，在這一點上，如果沒有回頭仔細研究它，我會說不。它並沒有讓我們重新考慮這樣做是否明智。我們仍然認為，達美航空能夠以協調的方式部署其艦隊的所有組成部分，這代表著真正的巨大優勢。它為我們帶來了競爭優勢。

Good. Thanks Leo.

好的。謝謝利奧。

You're welcome.

不客氣。

Our next question comes from Kevin Murphy of Morgan Stanley.

我們的下一個問題來自摩根士丹利的凱文墨菲。

Thank you. I guess this is a question for Leo. I suspect that you have some view as to United USA or is that what to go through and what it means to Delta, but correspondingly if DOJ doesn't allow it, does it mean that consolidation has been legislated out of existence. If United doesn't prevail with US Airways, what would be your strategy then? Is it status quo for Delta Airlines or strategically would you have to still make some moves.

謝謝。我想這個問題應該要問Leo。我懷疑您對美國聯合航空有一些看法，或者是要經歷什麼以及這對達美航空意味著什麼，但相應地，如果司法部不允許這樣做，是否意味著合併已被立法不存在。如果美聯航沒有戰勝全美航空，那你們的策略是什麼？這是達美航空的現狀嗎？還是從戰略上講，你仍然必須採取一些行動。

Kevin, I think we're all obviously awaiting some kind of an official pronouncement from the government, and for that matter from the parties on that situation, but my perspective is that we are as, I thought that there was a pretty good chance say better than 50-50 several months ago, that this transaction would go through. I would now put my own probabilities at less than 50-50 that it will go through. I think that there is an indication of serious concerns on the part of the government in terms of what this transaction would imply, but let me answer the question in a couple of ways. One is, if the transaction does go through in an official testimony that I have provided to the US Government to a hearing at the Senate judiciary subcommittee; I had indicated that the debt transaction would be a transforming transaction. That one being the United US Airways American deal, and it would necessitate some kind of active conversation at a minimum most likely over time resulting in some form of transaction because clearly United and American as the mega carriers that would be intending to take market share from the next level carrier that involving Delta and Continental and Northwest Airlines primarily and none of us, I would presume, have in fact no right obviously to speak for either Continental and Northwest, but we'd sit around and just kind of take the hit, and so in the point I made to the government was simply that you'd have to presume a cassette approval of further transactions simply to maintain the competitiveness in the industry which the government has an objective. And I think that point has been accepted as an important point. Don't look at this as a simple transactional approval; look at it as a transforming event for the industry.

凱文，我認為我們顯然都在等待政府以及各方就這種情況發表的某種正式聲明，但我的觀點是，我們是，我認為很有可能說這筆交易的成功率比幾個月前的50-50 好。我現在將自己的機率設定為小於 50-50。我認為，有跡象表明政府對這筆交易的含義表示嚴重擔憂，但讓我從幾個方面回答這個問題。一是，如果交易確實在我向美國政府參議院司法小組委員會聽證會提供的正式證詞中獲得通過；我曾表示債務交易將是一項轉型交易。這就是美國聯合航空與美國航空的交易，隨著時間的推移，它至少需要某種積極的對話，很可能會導致某種形式的交易，因為顯然聯合航空和美國航空作為大型航空公司，打算從美國航空手中奪取市場份額。下一級航空公司主要涉及達美航空、大陸航空和西北航空，我認為我們實際上沒有權利明顯地代表大陸航空和西北航空，但我們會坐在那裡，只是承受打擊，因此，我向政府提出的觀點很簡單，你必須假設進一步的交易得到盒式批准，只是為了維持政府目標產業的競爭力。我認為這一點已被視為重要的一點。不要將其視為簡單的交易批准；將其視為產業轉型事件。

Now, so if it goes through, would I expect some conversations to take place? Yes I would. Could I predict what would happen on those? No, I can't. I mean that would be presumptive on my part, now if it doesn't go through, then things do return more or less to the status quo and that is Delta's procured situation because we have, I think, an extraordinary strong competitive position, and we certainly know how to compete with US Airways and life would proceed. If you project down 2 to 3 years down the road, I think, that at some point there's likely to be a need for some further discussions of consolidation, but that's really beyond what I am prepared to talk about at this point Kevin.

現在，如果它通過了，我會期望進行一些對話嗎？是的，我會。我可以預測那些會發生什麼事嗎？不，我不能。我的意思是，這對我來說是假設的，現在如果它沒有通過，那麼事情或多或少會回到現狀，這就是達美航空的採購情況，因為我認為我們擁有非凡的強大競爭地位，我們當然知道如何與全美航空競爭，生活還會繼續。如果你預計未來 2 到 3 年，我認為在某個時候可能需要對整合進行進一步的討論，但這確實超出了我現在準備談論的範圍，凱文。

So you wouldn't come in and fill the void of United Airlines lets say, and then look at USA with yourself?

所以你不會進來填補聯合航空的空白，然後自己看看美國？

I think Kevin, there's been an enormous amount of common carrier concerning the justice department issues that would be raised by that, given that the Delta and US Airways have so much overlap and I think that you never say never, but it is highly unlikely Kevin.

我認為凱文，考慮到達美航空和全美航空有如此多的重疊，而且我認為你永遠不會說永遠，但凱文這不太可能。

And is there role for you to play in so far is United trying to find more flexibility with DOJ, that may be you could play sort of an ancillary role the way the American Airlines did?

到目前為止，美聯航試圖與司法部尋求更大的靈活性，您是否可以發揮作用，也許您可以像美國航空一樣發揮輔助作用？

I think that would be highly speculative, Kevin, and I wouldn't be prepared to talk upon that at the time, I would characterize that as speculative.

我認為這將是高度推測性的，凱文，我當時不准備談論這一點，我將其描述為推測性的。

Thank you.

謝謝。

You're welcome.

不客氣。

Our next question comes from Glen Engel of Goldman Sachs.

我們的下一個問題來自高盛的格倫·恩格爾。

Good morning, a couple of question. One on the expense forecast you're given and I guess the first quarter numbers, does that include what you feel the provision will be for the higher labor costs from both the pilot contract and the new Northwest maintenance contract's effect on what you'll pay your mechanics?

早上好，有幾個問題。關於您給出的費用預測，我猜是第一季的數字，其中是否包括您認為試點合約和新的西北維護合約對您所支付費用的影響所帶來的更高勞動力成本的準備金您的機械師？

As we've said in the past we're very conservative in this company as to taking care of the needs of the company in terms of the goals, etc., etc., but we are not prepared to comment in the middle of the negotiation on that question.

正如我們過去所說，我們在這家公司非常保守，在目標等方面照顧公司的需求，但我們不准備在中間發表評論就這個問題進行談判​​。

Two, when you looked at your present growth of 5%, was that different among the regions France, UK, and rest of Europe?

第二，當您看到目前 5% 的成長率時，法國、英國和歐洲其他地區的成長率是否有所不同？

Glen this Mark. What we saw is particular strength in France and Northern Europe. London was pretty flat and Southern Europe was pretty flat also.

格倫這個馬克。我們看到的是法國和北歐的特別優勢。倫敦相當平坦，南歐也相當平坦。

In that Comair situation, however it's resolved, will it simply mean that the planes will be flown by different people rather than you're going to be flying fewer or more RJ's?

在 Comair 的情況下，無論問題如何解決，是否僅僅意味著飛機將由不同的人駕駛，而不是您將駕駛更少或更多的 RJ 飛機？

I am not sure I understand the question Glen, sorry.

我不確定我是否理解這個問題，格倫，抱歉。

What I mean is that if you can really reach a resolution with Comair that is satisfactory, is it likely that you still be flying the same amount of RJ's or just be flying under different operators, or will it mean you'll actually be flying fewer RJ's?

我的意思是，如果您真的能夠與Comair 達成令人滿意的解決方案，您是否可能仍然飛行相同數量的RJ，或者只是在不同的運營商下飛行，或者這是否意味著您實際上會飛行更少的航班RJ的？

I don't think we can comment on that at this time. We're really are working to solve the issues as our primary goal, and it would be little premature to get into a discussion of that nature Glen, if I may.

我認為我們目前無法對此發表評論。我們確實正在努力將解決這些問題作為我們的首要目標，如果可以的話，現在開始討論這種性質還為時過早。

And finally the ASM reduction this year, is that going to be primarily to civilization or you're going to start taking fewer planes and retiring more?

最後，今年 ASM 的減少主要是為了文明，還是要開始減少飛機數量並增加退休人數？

Fundamentally as utilization, as a result as we've indicated of the Comair strike as well as the 2.7% schedule reduction that we have forecasted for the first several months.

基本上是利用率，因為我們已經指出了 Comair 罷工以及我們預測的前幾個月航班計劃減少 2.7%。

And do you have any intention yet to we'd look at the planes coming in and out?

您是否打算讓我們看看進出的飛機？

We're doing that actively and we actually, frankly Glen, we'll do that on a recurring basis at all times but certainly in this environment we are happy to have reasonably flexible contracts with regard to both our RJ fleet as well as our mainline fleet and we continue to refresh our look at capacity on literally a daily basis.

我們正在積我們每天都會繼續更新我們對運力的看法。

Thank-you.

謝謝。

Our next question comes from Mike Linenberg of Merrill Lynch.

我們的下一個問題來自美林證券的麥克林伯格。

Hi, Michelle you made a comment that revenue was going to be 300 to 350 million less in the June quarter than earlier forecasted expectations, is that an addition to the 200 to 250 million that you had stated in the March 8-K filing.

您好，米歇爾，您曾評論說，6 月份季度的收入將比之前的預測少300 至3.5 億美元，這是您在3 月8-K 文件中所述的200 至2.5 億美元的收入的補充。

No, Mike, that is not an incremental number, we now expect that we see continued softening given you a fresh estimate of 300 to 350.

不，麥克，這不是一個增量數字，根據您最新估計的 300 到 350，我們現在預計會繼續疲軟。

Okay and then just a question for Fred, I saw that recently you announced an agreement with PROS to do some work with respect to your revenue management, I know that you had put it in your system not that long ago, may be 12 months ago, and I think it was the old ergonomic system, what do you hope to accomplish with this new agreement?

好的，然後問Fred 一個問題，我看到您最近宣布與PROS 達成協議，在您的收入管理方面做一些工作，我知道您不久前（可能是12 個月前）將其放入您的系統中，我認為這是舊的人體工學系統，您希望透過這個新協議實現什麼目標？

Well, it's really going to increase our ability to forecast and to run revenue management on a more grandular basis and it really is complimentary to another departure from the addition of this what we call the Phoenix Technology which we face in between March and May of last year. The Phoenix implementation has been extremely helpful to us in managing overbooking and in forecasting flight performance so much so that we have seen an average of $60 million a year gain over our prior competence and in fact if you adjust the RASM for the seat removals of America and United which is the intellectual way to do it, it has enabled us to beat industry RASM or match it 4 out of 7 months. So we have seen Phoenix wrap up very much. PROS is a several year upgrade which we're going to be begin shortly subject to finalizing a couple of the arrangements with the company which are not final, I should say, and it is simply an ongoing plan to add to our capabilities, and it's not a departure or a reversal of what we've already put into place.

嗯，這確實會提高我們預測和在更宏觀的基礎上進行收入管理的能力，而且這確實是對我們去年 3 月到 5 月期間面臨的我們稱之為鳳凰科技的另一種偏離的補充。年。 Phoenix 的實施對我們管理超額預訂和預測航班性能非常有幫助，以至於我們比之前的能力每年平均獲得 6,000 萬美元的收益，事實上，如果您針對美國的座位移除情況調整 RASM United 是實現這一個目標的明智方式，它使我們能夠在7 個月內有4 個月擊敗行業RASM 或與之匹配。所以我們已經看到鳳凰城的結局了。 PROS 是一個為期數年的升級，我們很快就會開始，但要與公司敲定一些不是最終的安排，我應該說，這只是一個持續的計劃，旨在增加我們的能力，而且它是不是背離或逆轉我們已經採取的措施。

Okay, thank you very much.

好的，非常感謝。

Our next question comes from Sam Buttrick of UBS Warburg.

我們的下一個問題來自瑞銀華寶 (UBS Warburg) 的薩姆·巴特里克 (Sam Buttrick)。

Yes, good morning. You cited a $3 to $4 million, I think, consolidated network revenue impact from the Comair situation, as well as the 60% initial re-accommodation rate, obviously over time that re-accommodation rate becomes irrelevant because you've got nobody to re-accommodate. Is that 3 to 4 million number still representative today or that too low?

是的，早安。我認為，您提到了Comair 情況對綜合網路收入的影響為3000 至400 萬美元，以及60% 的初始重新安排率，顯然隨著時間的推移，重新安排率變得無關緊要，因為沒有人可以重新安排。- 容納。這個三四百萬的數字在今天仍然具有代表性還是太低了？

Yes it is.

是的。

Well, that would still be your assessment of the revenue impact?

好吧，這仍然是您對收入影響的評估嗎？

Correct.

正確的。

Okay, secondly, with respect to $300 to $350 million revenue number relative to your initial expectations of course isn't completely helpful since we don't know those expectations were. You cite economic softness as well mainline booking away, the economic, I am trying to get at what your assessment really of the booking away impact is dividing those two variables.

好吧，其次，相對於您最初的預期而言，3 億至 3.5 億美元的收入數字當然並不完全有幫助，因為我們不知道這些預期是多少。你提到了經濟疲軟以及主線預訂，經濟，我試圖了解你對預訂影響的真正評估是如何劃分這兩個變數的。

In our assumptions and in our expectations of our sales, we see roughly of 300 or 350, roughly 50% is related to labor, and 50% is related to the economy.

在我們的假設和對銷售額的預期中，我們看到大約 300 或 350，大約 50% 與勞動力有關，50% 與經濟有關。

Great. Thanks very much.

偉大的。非常感謝。

Our next question comes from Brian Harris of Salomon Smith Barney.

我們的下一個問題來自所羅門美邦的布萊恩哈里斯。

Hi, probably a question for Leo but anybody else could jump in, any comments regarding the impacts at the AMR/TWA transaction have particularly it comes to be about 60% larger then you felt short right now in JFK.

嗨，這可能是 Leo 的一個問題，但其他任何人都可以插話，任何有關 AMR/TWA 交易影響的評論尤其比您現在在 JFK 感到的空頭大 60% 左右。

We do not see that as a problem or an issue in any way. We've never objected to that transaction from a competitive viewpoint. We had substantial successes in the Northeast in General and JFK in particular, and a major investment that we have announced moving forward in the Kennedy market as well, so it's more of an Eastwest flow over St. Louis which I think that affects others and more than Delta's we do not see it as problematic and finally vis-a-vis JFK in particular TW and AA do have substantially overlap in JKF now, so all in all it's not problematic for us.

我們不認為這是一個問題或任何方面的問題。從競爭的角度來看，我們從未反對過該交易。我們在東北部，特別是在甘迺迪機場取得了巨大的成功，我們也宣佈在甘迺迪市場推進一項重大投資，所以這更多的是聖路易斯的東西向流動，我認為這會影響其他人和更多人與達美航空相比，我們不認為這是有問題的，最後，相對於肯尼迪機場，特別是TW和AA現在在JKF確實有很大的重疊，所以總而言之，這對我們來說不是問題。

Okay and if you could provide any feedback regarding performance revenue wise by region domestically or either by Harbor geographically.

好的，如果您可以提供有關按國內地區或按港口地理劃分的績效收入的任何回饋。

Brian this Mark, just to let you know the weakness was pretty well throughout the system; however, there were two areas that were weaker than others. Number one, Florida specifically driven by, as Fred had mentioned earlier, both a lower pricing environment, we didn't have seasonal premiums this year, as well as some weakness in volume in this shuttle. We've seen the shuttle traffic start to fall off from where we thought it would.

布萊恩馬克，只是為了讓你知道這個弱點在整個系統中都很明顯；然而，有兩個領域比其他領域薄弱。第一，佛羅裡達州，正如弗雷德之前提到的，特別是受到較低的定價環境的推動，今年我們沒有季節性溢價，而且該班車的銷量有些疲軟。我們已經看到班車流量開始從我們預期的情況下降。

Okay, thank you very much.

好的，非常感謝。

Our next question comes from Jim Higgins of Credit Suisse First Boston.

我們的下一個問題來自瑞士信貸第一波士頓的吉姆·希金斯。

Yes, thanks very much. Can you update us on where you stand in terms of capacity that you are allowed to deploy to express under your labor agreements?

是的，非常感謝。您能否向我們介紹一下您在勞動協定下允許部署表達的能力方面的最新情況？

Yes, our current labor agreement calls for the allocation of 54 aircrafts, all of the 737-200 type, and of course that is an open issue in our labor negotiations. It is our aspiration to substantially grow our ability to expand, express in terms of aircraft and that is a key part of the ongoing discussions, which are occurring even as we speak.

是的，我們目前的勞資協議要求分配 54 架飛機，全部是 737-200 型號，當然這是我們勞資談判中的一個懸而未決的問題。我們的願望是大幅提高我們在飛機方面的擴展和表達能力，這是正在進行的討論的關鍵部分，就在我們發言時，這些討論仍在進行中。

And you are aware now in terms of aircrafts deployed?

現在您知道部署的飛機了嗎？

Oh! I am sorry. Yes, we'll be up there by mid summer, we'll be up to the 54 aircraft maximum.

哦！對不起。是的，我們將在仲夏之前到達那裡，最多可容納 54 架飛機。

Okay and secondly I wanted to make sure I understand the Railway Labor Act and the provisions there. If I understand correctly, Bush can appoint a PEB, which is not to his findings, which takes basically 60 days to play out or not binding to either side. Is that correct?

好吧，其次我想確保我了解《鐵路勞動法》及其規定。如果我理解正確的話，布希可以任命一個 PEB，這與他的調查結果不符，這基本上需要 60 天才能發揮作用，否則對任何一方都沒有約束力。那是對的嗎？

That's correct.

這是正確的。

At the end of that period, the Railway Labor Act basically goes mute is my understanding that's when congress can or cannot step in to legislative settlement.

據我了解，在那段時期結束時，《鐵路勞工法》基本上陷入沉默，國會可以或不能介入立法解決。

That's correct.

這是正確的。

Okay, thanks.

好的謝謝。

Due to time constraints our final question comes from Helane Becker of Buckingham Research Group.

由於時間限制，我們的最後一個問題來自白金漢研究小組的 Helane Becker。

Thanks very much operator. Hi everybody, Leo, I just on the Comair situation with respect to that company. There was no negotiations scheduled and there was no negotiations going on, and your cutting capacity laying off people, I guess I saw in the paper then in Florida the other day, and I guess the bottom line is some point you have to make a decision as to whether or not you'd write off these asset and kind of move forward in another mode with respect to deploying that capacity, I mean I am little confused as to what will happen next.

非常感謝運營商。大家好，Leo，我只是談談 Comair 與該公司有關的情況。沒有安排談判，也沒有進行談判，你們削減裁員能力，我想我前幾天在佛羅裡達州的報紙上看到了，我想底線是你必須做出決定的某個點至於你是否會註銷這些資產並以另一種模式推進部署該能力，我的意思是我對接下來會發生什麼感到困惑。

We expect that some point we are going to have negotiations Helane, and we absolutely think that Comair is an asset that has a tremendous value and will be of tremendous value going forward, so we're no where near the point that you are referring to and we would expect that at some point we're going to have a settlement.

我們預計在某個時刻我們將與 Helane 進行談判，我們絕對認為 Comair 是一項具有巨大價值的資產，並且未來將具有巨大的價值，因此我們距離您所指的那一點還很遠我們預計在某個時候我們會達成和解。

I don't mean to be rude but what are you waiting for exactly to start negotiations again?

我並不是故意無禮，但您還在等什麼才能再次開始談判？

We're waiting for, two parties have to discuss things Helane, and we're ready to go and we've indicated, we had a conservation on Monday with the union which was not a negotiation but a conservation and, you know, we are hopeful at some point we can resume the negotiations but we can't announce that exactly right now.

我們正在等待，兩方必須討論海蘭的事情，我們已經準備好了，我們已經表示，我們週一與工會進行了保護，這不是談判，而是保護，你知道，我們希望在某個時候我們能夠恢復談判，但我們現在還不能確切地宣布這一點。

Okay, then the other question is with respect to advertising and promotional expenses that are coming down, either Michelle or Fred, what are you taking down, television, print ads, and where are we looking for those cuts and what's the magnitude?

好的，那麼另一個問題是關於正在下降的廣告和促銷費用，無論是米歇爾還是弗雷德，你們要取消什麼，電視廣告，平面廣告，我們在哪裡尋找這些削減以及幅度是多少？

Well, the magnitude is several tens of millions of dollars and it is not what I would call a devastating reduction, but it's prudent in the current environment. It began with image advertising and what I'd call broad national advertising and we will preserve for the foreseeable future, the tactical advertising, the price advertising, and new service start ups, and the effected cuts are really balanced across both print and all the other media.

嗯，這個幅度是幾千萬美元，並不是我所說的毀滅性的削減，但是在當前的環境下這是謹慎的。它始於圖像廣告和我所說的廣泛的全國性廣告，我們將在可預見的未來保留戰術廣告、價格廣告和新服務啟動，並且所影響的削減在印刷品和所有廣告中都非常平衡。其他媒體。

Great, thank you.

太好了謝謝。

That concludes the call, thank you everybody.

通話到此結束，謝謝大家。

Thank you very much.

非常感謝。