þ
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the quarterly period ended September 30,
2009
|
|
or
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from ________ to
________
|
TEXAS
|
74-1563240
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
No.)
|
P.O.
Box 36611, Dallas, Texas
|
75235-1611
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Number
of shares of Common Stock outstanding as of the close of business on
October 19, 2009: 741,939,911
|
September
30, 2009
|
December
31, 2008
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 902 | $ | 1,368 | ||||
Short-term
investments
|
1,352 | 435 | ||||||
Accounts
and other receivables
|
225 | 209 | ||||||
Inventories
of parts and supplies, at cost
|
196 | 203 | ||||||
Deferred
income taxes
|
365 | 365 | ||||||
Prepaid
expenses and other current assets
|
87 | 73 | ||||||
Total
current assets
|
3,127 | 2,653 | ||||||
Property
and equipment, at cost:
|
||||||||
Flight
equipment
|
13,761 | 13,722 | ||||||
Ground
property and equipment
|
1,870 | 1,769 | ||||||
Deposits
on flight equipment purchase contracts
|
233 | 380 | ||||||
15,864 | 15,871 | |||||||
Less
allowance for depreciation and amortization
|
5,166 | 4,831 | ||||||
10,698 | 11,040 | |||||||
Other
assets
|
275 | 375 | ||||||
$ | 14,100 | $ | 14,068 | |||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 694 | $ | 668 | ||||
Accrued
liabilities
|
918 | 1,012 | ||||||
Air
traffic liability
|
1,214 | 963 | ||||||
Current
maturities of long-term debt
|
198 | 163 | ||||||
Total
current liabilities
|
3,024 | 2,806 | ||||||
Long-term
debt less current maturities
|
3,378 | 3,498 | ||||||
Deferred
income taxes
|
1,947 | 1,904 | ||||||
Deferred
gains from sale and leaseback of aircraft
|
125 | 105 | ||||||
Other
non-current liabilities
|
409 | 802 | ||||||
Stockholders'
equity:
|
||||||||
Common
stock
|
808 | 808 | ||||||
Capital
in excess of par value
|
1,226 | 1,215 | ||||||
Retained
earnings
|
4,876 | 4,919 | ||||||
Accumulated
other comprehensive loss
|
(715 | ) | (984 | ) | ||||
Treasury
stock, at cost
|
(978 | ) | (1,005 | ) | ||||
Total
stockholders' equity
|
5,217 | 4,953 | ||||||
$ | 14,100 | $ | 14,068 | |||||
See
accompanying notes.
|
Three
months ended September 30,
|
Nine
months ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
OPERATING
REVENUES:
|
||||||||||||||||
Passenger
|
$ | 2,550 | $ | 2,767 | $ | 7,308 | $ | 7,927 | ||||||||
Freight
|
28 | 37 | 87 | 108 | ||||||||||||
Other
|
88 | 87 | 243 | 254 | ||||||||||||
Total
operating revenues
|
2,666 | 2,891 | 7,638 | 8,289 | ||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||
Salaries,
wages, and benefits
|
909 | 856 | 2,607 | 2,494 | ||||||||||||
Fuel
and oil
|
826 | 1,051 | 2,250 | 2,795 | ||||||||||||
Maintenance
materials and repairs
|
184 | 190 | 557 | 523 | ||||||||||||
Aircraft
rentals
|
47 | 38 | 140 | 115 | ||||||||||||
Landing
fees and other rentals
|
192 | 167 | 537 | 497 | ||||||||||||
Depreciation
and amortization
|
162 | 152 | 462 | 445 | ||||||||||||
Other
operating expenses
|
324 | 351 | 990 | 1,040 | ||||||||||||
Total
operating expenses
|
2,644 | 2,805 | 7,543 | 7,909 | ||||||||||||
OPERATING
INCOME
|
22 | 86 | 95 | 380 | ||||||||||||
OTHER
EXPENSES (INCOME):
|
||||||||||||||||
Interest
expense
|
48 | 35 | 140 | 95 | ||||||||||||
Capitalized
interest
|
(5 | ) | (6 | ) | (16 | ) | (20 | ) | ||||||||
Interest
income
|
(3 | ) | (7 | ) | (11 | ) | (18 | ) | ||||||||
Other
(gains) losses, net
|
2 | 269 | 2 | (38 | ) | |||||||||||
Total
other expenses (income)
|
42 | 291 | 115 | 19 | ||||||||||||
INCOME
(LOSS) BEFORE INCOME TAXES
|
(20 | ) | (205 | ) | (20 | ) | 361 | |||||||||
PROVISION
(BENEFIT) FOR INCOME TAXES
|
(4 | ) | (85 | ) | (4 | ) | 127 | |||||||||
NET
INCOME (LOSS)
|
$ | (16 | ) | $ | (120 | ) | $ | (16 | ) | $ | 234 | |||||
NET
INCOME (LOSS) PER SHARE, BASIC
|
$ | (.02 | ) | $ | (.16 | ) | $ | (.02 | ) | $ | .32 | |||||
NET
INCOME (LOSS) PER SHARE, DILUTED
|
$ | (.02 | ) | $ | (.16 | ) | $ | (.02 | ) | $ | .32 | |||||
WEIGHTED
AVERAGE SHARES
|
||||||||||||||||
OUTSTANDING:
|
||||||||||||||||
Basic
|
742 | 736 | 741 | 734 | ||||||||||||
Diluted
|
742 | 736 | 741 | 739 | ||||||||||||
See
accompanying notes.
|
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net
income (loss)
|
$ | (16 | ) | $ | (120 | ) | $ | (16 | ) | $ | 234 | |||||
Adjustments
to reconcile net income (loss) to
|
||||||||||||||||
cash
provided by operating activities:
|
||||||||||||||||
Depreciation
and amortization
|
162 | 152 | 462 | 445 | ||||||||||||
Unrealized
loss on fuel derivative instruments
|
12 | 307 | 79 | 17 | ||||||||||||
Deferred
income taxes
|
8 | (48 | ) | 3 | 81 | |||||||||||
Amortization
of deferred gains on sale and
|
||||||||||||||||
leaseback
of aircraft
|
(4 | ) | (3 | ) | (11 | ) | (9 | ) | ||||||||
Share-based
compensation expense
|
3 | 4 | 10 | 14 | ||||||||||||
Excess
tax benefits from share-based
|
||||||||||||||||
compensation
arrangements
|
(4 | ) | 8 | (6 | ) | 11 | ||||||||||
Changes
in certain assets and liabilities:
|
||||||||||||||||
Accounts
and other receivables
|
12 | 62 | (16 | ) | (105 | ) | ||||||||||
Other
current assets
|
11 | (48 | ) | (7 | ) | (98 | ) | |||||||||
Accounts
payable and accrued liabilities
|
(147 | ) | (379 | ) | (42 | ) | (46 | ) | ||||||||
Air
traffic liability
|
6 | (28 | ) | 251 | 344 | |||||||||||
Cash
collateral received from (provided to) fuel
|
||||||||||||||||
derivative
counterparties
|
- | (1,940 | ) | (185 | ) | 495 | ||||||||||
Other,
net
|
29 | (243 | ) | (29 | ) | (359 | ) | |||||||||
Net
cash provided by (used in) operating activities
|
72 | (2,276 | ) | 493 | 1,024 | |||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchases
of property and equipment, net
|
(198 | ) | (178 | ) | (471 | ) | (765 | ) | ||||||||
Purchases
of short-term investments
|
(1,707 | ) | (794 | ) | (4,797 | ) | (4,241 | ) | ||||||||
Proceeds
from sales of short-term investments
|
1,608 | 926 | 3,955 | 3,570 | ||||||||||||
Other,
net
|
- | - | 1 | - | ||||||||||||
Net
cash used in investing activities
|
(297 | ) | (46 | ) | (1,312 | ) | (1,436 | ) | ||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Proceeds
from sale and leaseback transactions
|
- | - | 381 | - | ||||||||||||
Issuance
of Long-term debt
|
124 | - | 456 | 600 | ||||||||||||
Proceeds
from Employee stock plans
|
4 | 85 | 11 | 113 | ||||||||||||
Proceeds
from credit line borrowing
|
83 | - | 83 | - | ||||||||||||
Payments
of long-term debt and capital lease obligations
|
(22 | ) | (15 | ) | (64 | ) | (41 | ) | ||||||||
Payment
of revolving credit facility
|
- | - | (400 | ) | - | |||||||||||
Payment
of credit line borrowing
|
- | - | (91 | ) | - | |||||||||||
Payments
of cash dividends
|
(3 | ) | (3 | ) | (13 | ) | (13 | ) | ||||||||
Repurchase
of common stock
|
- | - | - | (54 | ) | |||||||||||
Excess
tax benefits from share-based
|
||||||||||||||||
compensation
arrangements
|
4 | (8 | ) | 6 | (11 | ) | ||||||||||
Other,
net
|
(9 | ) | - | (16 | ) | (5 | ) | |||||||||
Net
cash provided by financing activities
|
181 | 59 | 353 | 589 | ||||||||||||
NET
CHANGE IN CASH AND
|
||||||||||||||||
CASH
EQUIVALENTS
|
(44 | ) | (2,263 | ) | (466 | ) | 177 | |||||||||
CASH
AND CASH EQUIVALENTS AT
|
||||||||||||||||
BEGINNING
OF PERIOD
|
946 | 4,653 | 1,368 | 2,213 | ||||||||||||
CASH
AND CASH EQUIVALENTS
|
||||||||||||||||
AT
END OF PERIOD
|
$ | 902 | $ | 2,390 | $ | 902 | $ | 2,390 | ||||||||
CASH
PAYMENTS FOR:
|
||||||||||||||||
Interest,
net of amount capitalized
|
$ | 31 | $ | 39 | $ | 109 | $ | 80 | ||||||||
Income
taxes
|
$ | - | $ | 57 | $ | 4 | $ | 70 | ||||||||
See
accompanying notes.
|
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
NUMERATOR:
|
||||||||||||||||
Net
income (loss)
|
$ | (16 | ) | $ | (120 | ) | $ | (16 | ) | $ | 234 | |||||
DENOMINATOR:
|
||||||||||||||||
Weighted-average
shares
|
||||||||||||||||
outstanding,
basic
|
742 | 736 | 741 | 734 | ||||||||||||
Dilutive
effect of Employee stock
|
||||||||||||||||
options
|
- | - | - | 5 | ||||||||||||
Adjusted
weighted-average shares
|
||||||||||||||||
outstanding,
diluted
|
742 | 736 | 741 | 739 | ||||||||||||
NET
INCOME (LOSS) PER SHARE:
|
||||||||||||||||
Basic
|
$ | (.02 | ) | $ | (.16 | ) | $ | (.02 | ) | $ | .32 | |||||
Diluted
|
$ | (.02 | ) | $ | (.16 | ) | $ | (.02 | ) | $ | .32 |
Fuel
hedged as of
|
Approximate
%
|
|||||||
September
30, 2009
|
of
jet fuel
|
|||||||
Period
(by year)
|
(gallons
in millions)
|
consumption
|
||||||
2009
|
438 | 31 | % * | |||||
2010
|
938 | 66 | % * | |||||
2011
|
559 | 40 | % * | |||||
2012
|
232 | 17 | % * | |||||
2013
|
98 | 7 | % * | |||||
Period
(by quarter for 2009)
|
||||||||
First
quarter 2009
|
15 | 4 | % | |||||
Second
quarter 2009
|
185 | 50 | % | |||||
Third
quarter 2009
|
77 | 21 | % | |||||
Fourth
quarter 2009
|
161 | 47 | % * | |||||
*
Forecasted
|
Asset
Derivatives
|
Liability
Derivatives
|
||||||||||||||||
Balance
Sheet Location
|
Fair
Value at 9/30/09
|
Fair
Value at 12/31/08
|
Fair
Value at 9/30/09
|
Fair
Value at 12/31/08
|
|||||||||||||
Derivatives
designated as hedging
|
|||||||||||||||||
instruments
under ASC Topic 815
|
|||||||||||||||||
Fuel
derivative contracts (gross)*
|
Accrued
liabilities
|
$ | 64 | $ | 94 | $ | 34 | $ | 19 | ||||||||
Fuel
derivative contracts (gross)*
|
Other
deferred liabilities
|
107 | 40 | 31 | 522 | ||||||||||||
Interest
rate derivative contracts
|
Other
assets
|
59 | 83 | - | - | ||||||||||||
Interest
rate derivative contracts
|
Other
deferred liabilities
|
- | - | - | 3 | ||||||||||||
Total
derivatives designated as hedging
|
|||||||||||||||||
instruments
under ASC Topic 815
|
$ | 230 | $ | 217 | $ | 65 | $ | 544 | |||||||||
Derivatives
not designated as hedging
|
|||||||||||||||||
instruments
under ASC Topic 815
|
|||||||||||||||||
Fuel
derivative contracts (gross)*
|
Accrued
liabilities
|
$ | 340 | $ | 387 | $ | 545 | $ | 708 | ||||||||
Fuel
derivative contracts (gross)*
|
Other
deferred liabilities
|
309 | 266 | 874 | 530 | ||||||||||||
Total
derivatives not designated as
|
|||||||||||||||||
hedging
instruments under ASC Topic 815
|
$ | 649 | $ | 653 | $ | 1,419 | $ | 1,238 | |||||||||
Total
derivatives
|
$ | 879 | $ | 870 | $ | 1,484 | $ | 1,782 | |||||||||
*
Does not include the impact of cash collateral deposits provided to
counterparties. See discussion
|
|||||||||||||||||
of
credit risk and collateral following in this Note.
|
Balance
Sheet
|
September
30,
|
December
31,
|
|||||||
Location
|
2009
|
2008
|
|||||||
Cash
collateral deposits provided
|
Offset
against Other
|
||||||||
to
counterparty - noncurrent
|
deferred
liabilities
|
324 | 240 | ||||||
Cash
collateral deposits provided
|
Offset
against Accrued
|
||||||||
to
counterparty - current
|
liabilities
|
101 | - | ||||||
Due
to third parties for settled fuel contracts
|
Accrued
liabilities
|
25 | 16 | ||||||
Net
unrealized losses from fuel
|
Accumulated
other
|
||||||||
hedges,
net of tax
|
comprehensive
loss
|
724 | 946 |
Derivatives
in ASC Topic 815 Cash Flow Hedging Relationships
|
||||||||||||||||||||||||
Amount
of (Gain) Loss Recognized in AOCI on Derivatives (effective
portion)
|
Amount
of (Gain) Loss Reclassified from AOCI into Income (effective
portion)(a)
|
Amount
of (Gain) Loss Recognized in Income on Derivatives (ineffective portion)
(b)
|
||||||||||||||||||||||
Three
months ended September 30,
|
Three
months ended September 30,
|
Three
months ended September 30,
|
||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||
Fuel
derivative
|
||||||||||||||||||||||||
contracts
|
$ | (40 | ) * | $ | 1,403 | * | $ | 101 | * | $ | (226 | ) * | $ | (46 | ) | $ | 41 | |||||||
Interest
rate
|
||||||||||||||||||||||||
derivatives
|
6 | * | - | - | - | - | - | |||||||||||||||||
Total
|
$ | (34 | ) | $ | 1,403 | $ | 101 | $ | (226 | ) | $ | (46 | ) | $ | 41 | |||||||||
* Net
of tax
|
||||||||||||||||||||||||
(a)
Amounts related to fuel derivative contracts and interest rate derivatives
are included in
|
||||||||||||||||||||||||
Fuel
and oil and Interest expense, respectively.
|
||||||||||||||||||||||||
(b)
Amounts are included in Other (gains) losses, net.
|
Derivatives
in ASC Topic 815 Cash Flow Hedging Relationships
|
||||||||||||||||||||||||
Amount
of (Gain) Loss Recognized in AOCI on Derivatives (effective
portion)
|
Amount
of (Gain) Loss Reclassified from AOCI into Income (effective
portion)(a)
|
Amount
of (Gain) Loss Recognized in Income on Derivatives (ineffective portion)
(b)
|
||||||||||||||||||||||
Nine
months ended September 30,
|
Nine
months ended September 30,
|
Nine
months ended September 30,
|
||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||
Fuel
derivative
|
||||||||||||||||||||||||
contracts
|
$ | (85 | ) * | $ | (520 | )* | $ | 307 | * | $ | (680 | ) * | $ | (55 | ) | $ | 67 | |||||||
Interest
rate
|
||||||||||||||||||||||||
derivatives
|
(19 | ) * | - | - | - | - | - | |||||||||||||||||
Total
|
$ | (104 | ) | $ | (520 | ) | $ | 307 | $ | (680 | ) | $ | (55 | ) | $ | 67 | ||||||||
* Net
of tax
|
||||||||||||||||||||||||
(a)
Amounts related to fuel derivative contracts and interest rate derivatives
are included in
|
||||||||||||||||||||||||
Fuel
and oil and Interest expense, respectively.
|
||||||||||||||||||||||||
(b)
Amounts are included in Other (gains) losses, net.
|
Derivatives
not in ASC Topic 815 Cash Flow Hedging Relationships
|
||||||||
Amount
of (Gain) Loss Recognized in Income on Derivatives
|
||||||||
Three
months ended September 30,
|
Location
of (Gain) Loss Recognized in Income
|
|||||||
2009 | 2008 |
on
Derivatives
|
||||||
Fuel
derivative contracts
|
$ |
8
|
$ |
205
|
Other
(gains) losses, net
|
Derivatives
not in ASC Topic 815 Cash Flow Hedging Relationships
|
||||||||
Amount
of (Gain) Loss Recognized in Income on Derivatives
|
||||||||
Nine months
ended September 30,
|
Location
of (Gain) Loss Recognized in Income
|
|||||||
2009 | 2008 |
on
Derivatives
|
||||||
Fuel
derivative contracts
|
$ |
(57
|
) | $ |
(161
|
) |
Other
(gains) losses, net
|
Three months ended September 30, | ||||||||
(In
millions)
|
2009
|
2008
|
||||||
Net
loss
|
$ | (16 | ) | $ | (120 | ) | ||
Unrealized
gain (loss) on derivative instruments,
|
||||||||
net
of deferred taxes of $37 and ($1,015)
|
61 | (1,629 | ) | |||||
Other,
net of deferred taxes of $14 and ($2)
|
21 | (3 | ) | |||||
Total
other comprehensive income
|
82 | (1,632 | ) | |||||
Comprehensive
income (loss)
|
$ | 66 | $ | (1,752 | ) |
Nine months ended September 30, | ||||||||
(In
millions)
|
2009
|
2008
|
||||||
Net
income (loss)
|
$ | (16 | ) | $ | 234 | |||
Unrealized
gain (loss) on derivative instruments,
|
||||||||
net
of deferred taxes of $137 and ($111)
|
222 | (160 | ) | |||||
Other,
net of deferred taxes of $30 and ($9)
|
47 | (14 | ) | |||||
Total
other comprehensive income (loss)
|
269 | (174 | ) | |||||
Comprehensive
income
|
$ | 253 | $ | 60 |
Accumulated
|
||||||||||||
Fuel
|
other
|
|||||||||||
hedge
|
comprehensive
|
|||||||||||
(In
millions)
|
derivatives
|
Other
|
income
(loss)
|
|||||||||
Balance
at June 30, 2009
|
$ | (785 | ) | $ | (12 | ) | $ | (797 | ) | |||
Third
quarter 2009 changes in value
|
(40 | ) | 21 | (19 | ) | |||||||
Reclassification
to earnings
|
101 | - | 101 | |||||||||
Balance
at September 30, 2009
|
$ | (724 | ) | $ | 9 | $ | (715 | ) |
Accumulated
|
||||||||||||
Fuel
|
other
|
|||||||||||
hedge
|
comprehensive
|
|||||||||||
(In
millions)
|
derivatives
|
Other
|
income
(loss)
|
|||||||||
Balance
at December 31, 2008
|
$ | (946 | ) | $ | (38 | ) | $ | (984 | ) | |||
2009
changes in value
|
(85 | ) | 47 | (38 | ) | |||||||
Reclassification
to earnings
|
307 | - | 307 | |||||||||
Balance
at September 30, 2009
|
$ | (724 | ) | $ | 9 | $ | (715 | ) |
September
30,
|
December
31,
|
|||||||
(In
millions)
|
2009
|
2008
|
||||||
Retirement
plans
|
$ | 12 | $ | 86 | ||||
Aircraft
rentals
|
110 | 118 | ||||||
Vacation
pay
|
184 | 175 | ||||||
Advances
and deposits
|
16 | 23 | ||||||
Fuel
derivative contracts
|
74 | 246 | ||||||
Deferred
income taxes
|
169 | 36 | ||||||
Workers
compensation
|
120 | 122 | ||||||
Other
|
233 | 206 | ||||||
Accrued
liabilities
|
$ | 918 | $ | 1,012 |
Three months ended September 30, | ||||||||
(In
millions)
|
2009
|
2008
|
||||||
Service
cost
|
$ | 3 | $ | 4 | ||||
Interest
cost
|
2 | 2 | ||||||
Amortization
of prior service cost
|
- | - | ||||||
Recognized
actuarial gain
|
(6 | ) | (1 | ) | ||||
Net
periodic postretirement benefit cost (income)
|
$ | (1 | ) | $ | 5 |
Nine months ended September 30, | ||||||||
(In
millions)
|
2009
|
2008
|
||||||
Service
cost
|
$ | 10 | $ | 11 | ||||
Interest
cost
|
4 | 4 | ||||||
Amortization
of prior service cost
|
1 | 1 | ||||||
Recognized
actuarial gain
|
(7 | ) | (2 | ) | ||||
Net
periodic postretirement benefit cost
|
$ | 8 | $ | 14 |
Fair Value Measurements at Reporting Date
Using
|
||||||||||||||||
Quoted
Prices in
|
Significant
|
|||||||||||||||
Active
Markets for
|
Significant
Other
|
Unobservable
|
||||||||||||||
Identical
Assets
|
Observable
Inputs
|
Inputs
|
||||||||||||||
Description
|
September 30, 2009
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets
|
(in
millions)
|
|||||||||||||||
Cash
equivalents
|
$ | 902 | $ | 902 | $ | - | $ | - | ||||||||
Short-term
investments
|
1,352 | 1,249 | - | 103 | ||||||||||||
Noncurrent
investments (a)
|
89 | - | - | 89 | ||||||||||||
Interest
rate derivatives
|
59 | - | 59 | - | ||||||||||||
Fuel
derivatives (b)
|
1,089 | - | 286 | 803 | ||||||||||||
Other
available-for-sale securities
|
36 | 28 | - | 8 | ||||||||||||
Total
assets
|
$ | 3,527 | $ | 2,179 | $ | 345 | $ | 1,003 | ||||||||
Liabilities
|
||||||||||||||||
Fuel
derivatives (b)
|
$ | (1,753 | ) | $ | (801 | ) | $ | (952 | ) | |||||||
(a)
Included in "Other assets" in the unaudited Condensed Consolidated Balance
Sheet.
|
||||||||||||||||
(b)
In the unaudited Condensed Consolidated Balance Sheet, amounts are
presented as a net liability, and are also
|
||||||||||||||||
net
of $425 million in cash collateral provided to
counterparties.
|
Fair Value Measurements Using
Significant
|
||||||||||||||||
Unobservable Inputs (Level
3)
|
||||||||||||||||
Fuel
|
Auction
Rate
|
Other
|
||||||||||||||
(in
millions)
|
Derivatives
|
Securities (a)
|
Securities
|
Total
|
||||||||||||
Balance
at December 31, 2008
|
$ | (864 | ) | $ | 200 | $ | 8 | $ | (656 | ) | ||||||
Total
gains or (losses) (realized or unrealized)
|
||||||||||||||||
Included
in earnings
|
525 | - | - | 525 | ||||||||||||
Included
in other comprehensive income
|
(138 | ) | - | - | (138 | ) | ||||||||||
Purchases
and settlements (net)
|
328 | (8 | ) | - | 320 | |||||||||||
Balance
at September 30, 2009
|
$ | (149 | ) | $ | 192 | (b) | $ | 8 | $ | 51 | ||||||
The
amount of total gains or (losses) for the
|
||||||||||||||||
period
included in earnings attributable to the
|
||||||||||||||||
change
in unrealized gains or losses relating to
|
||||||||||||||||
assets
still held at September 30, 2009
|
$ | 453 | $ | - | $ | - | $ | 453 | ||||||||
(a)
Includes those classified as short-term investments and noncurrent
investments.
|
||||||||||||||||
(b)
Includes $83 million classified as trading securities.
|
(In
millions)
|
Carrying
value
|
Estimated
fair value
|
||||||
10.5%
Notes due 2011
|
$ | 400 | $ | 432 | ||||
French
Credit Agreements due 2012
|
24 | 24 | ||||||
6.5%
Notes due 2012
|
403 | 425 | ||||||
5.25%
Notes due 2014
|
379 | 382 | ||||||
5.75%
Notes due 2016
|
300 | 295 | ||||||
5.125%
Notes due 2017
|
340 | 323 | ||||||
French
Credit Agreements due 2017
|
84 | 84 | ||||||
Term
Loan Agreement due 2019
|
326 | 339 | ||||||
Term
Loan Agreement due 2019
|
124 | 124 | ||||||
Term
Loan Agreement due 2020
|
562 | 493 | ||||||
Pass
Through Certificates
|
450 | 466 | ||||||
7.375%
Debentures due 2027
|
118 | 115 | ||||||
Fuel
derivative contracts*
|
(664 | ) | (664 | ) | ||||
*
Does not include the impact of cash collateral deposits provided to
counterparties.
|
||||||||
See
Note 5.
|
Three
months ended September 30,
|
||||||||||||
2009
|
2008
|
Change
|
||||||||||
Revenue
passengers carried
|
22,375,593 | 22,243,013 | 0.6 | % | ||||||||
Enplaned
passengers
|
26,396,360 | 25,686,181 | 2.8 | % | ||||||||
Revenue
passenger miles (RPMs) (000s)
|
19,706,579 | 18,822,810 | 4.7 | % | ||||||||
Available
seat miles (ASMs) (000s)
|
24,771,016 | 26,287,035 | (5.8 | )% | ||||||||
Load
factor
|
79.6 | % | 71.6 | % |
8.0
|
pts | ||||||
Average
length of passenger haul (miles)
|
881 | 846 | 4.1 | % | ||||||||
Average
aircraft stage length (miles)
|
640 | 642 | (0.3 | )% | ||||||||
Trips
flown
|
283,663 | 300,537 | (5.6 | )% | ||||||||
Average
passenger fare
|
$113.95 | $124.38 | (8.4 | )% | ||||||||
Passenger
revenue yield per RPM (cents)
|
12.94 | 14.70 | (12.0 | )% | ||||||||
Operating
revenue yield per ASM (cents)
|
10.76 | 11.00 | (2.2 | )% | ||||||||
Operating
expenses per ASM (cents)
|
10.67 | 10.67 | 0.0 | % | ||||||||
Fuel
costs per gallon, including fuel tax
|
$2.27 | $2.73 | (16.8 | )% | ||||||||
Fuel
consumed, in gallons (millions)
|
363 | 382 | (5.0 | )% | ||||||||
Full-time
equivalent Employees at period-end*
|
34,806 | 35,538 | (2.1 | )% | ||||||||
Aircraft
in service at period-end**
|
545 | 538 | 1.3 | % | ||||||||
*
Headcount is defined as "Active" fulltime equivalent Employees for both
periods presented.
|
||||||||||||
**
Excludes any aircraft that have been removed from service and are held for
sale or for return to the lessor.
|