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					Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
S&P Recommendation BUY
                                          55555                                              Price
                                                                                             $11.23 (as of Mar 11, 2011)
                                                                                                                                      12-Mo. Target Price
GICS Sector Industrials                                                                      Summary Delta Air Lines is one of the largest passenger airlines in the world.
Sub-Industry Airlines

 Key Stock Statistics (Source S&P, Vickers, company reports)

52-Wk Range                        $14.94– 9.60        S&P Oper. EPS 2011E                         1.84      Market Capitalization(B)            $9.388        Beta                                        0.65
Trailing 12-Month EPS                     $0.70        S&P Oper. EPS 2012E                          NA       Yield (%)                              Nil        S&P 3-Yr. Proj. EPS CAGR(%)                    8
Trailing 12-Month P/E                      16.0        P/E on S&P Oper. EPS 2011E                   6.1      Dividend Rate/Share                    Nil        S&P Credit Rating                              B
$10K Invested 5 Yrs Ago                     NA         Common Shares Outstg. (M)                  836.0      Institutional Ownership (%)             82

 Price Performance                                                                                                                             Qualitative Risk Assessment
            30-Week Mov. Avg.      10-Week Mov. Avg.            GAAP Earnings vs. Previous Year         Volume Above Avg.       STARS
                                                                                                                                                      LOW                MEDIUM                   HIGH
            12-Mo. Target Price    Relative Strength              Up     Down         No Change                   Below Avg.
                                                                                                                                              Our risk assessment reflects the highly cyclical
                                                                                                                                              nature of the airline industry, coupled with the
                                                                                                                                              potential for intense price competition, volatile jet
                                                                                                                                              fuel prices, and the highly asset-intensive nature
       8                                                                                                                                      of the airline business.

       4                                                                                                                                       Quantitative Evaluations

                                                                                                                                              S&P Quality Ranking                                           NR
                                                                                                                                                 D         C     B-      B       B+       A-      A       A+
      30                                                                                                                                      Relative Strength Rank                                     WEAK
       0                                                                                                                                                         26
       5                                                    4
             3                                                                                                                                LOWEST = 1                                           HIGHEST = 99

             O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M
                                                                                                                                               Revenue/Earnings Data
             2007                 2008                              2009                               2010                    2011
                                                                                                                                              Revenue (Million $)
                                                                                                                                                          1Q       2Q               3Q            4Q    Year
Analysis prepared by Jim Corridore on January 19, 2011, when the stock traded at $ 11.75.
                                                                                                                                              2010     6,848    8,168            8,950         7,789   31,755
 Highlights                                                                Investment Rationale/Risk                                          2009     6,684    7,000            7,574         6,805   28,063
                                                                                                                                              2008     4,766    5,499            5,719         6,713   22,697
®   We see 2011 revenues rising 12%, on a 3% ca-                           ®   We expect air travel demand to improve in 2011                 2007     4,144    3,448            5,227         4,683   19,154
    pacity increase, 8% higher yields and a 1 per-                             on a recovering U.S. and global economy. We                    2006     3,719    4,655            4,659         4,138        --
    centage point rise in passenger load factor. We                            look for business travel demand to improve                     2005     3,647    4,185            4,216         4,143   16,191
    see a continued rise in other revenues due to                              throughout 2011. The merger with Northwest
    increased checked bag and other fees. We                                   will give the combined company increased net-                  Earnings Per Share ($)
    think industrywide capacity cuts taken over the                            work scale and provide revenue and cost syn-                   2010      -0.31    0.56              0.43       0.02         0.70
    past two years will help drive airfare increases                           ergies, by our analysis. The combined operation                2009      -0.96   -0.31             -0.19      -0.03        -1.50
    and yield improvement. We also see improve-                                does face challenges, however, including dif-                  2008     -16.15   -2.64             -0.13      -2.11       -19.06
    ment in demand for corporate and premium                                   ferent fleet types and commitments to maintain                 2007        NA     4.68              0.56      -0.72         4.09
    travel as the global economy recovers from a                               hubs that could limit the potential for cost cut-              2006     -10.68 -11.18               0.22     -10.03            --
    protracted downturn.                                                       ting. We view liquidity of about $5.2 billion at               2005      -7.63   -2.64             -6.73      -6.53       -23.75
                                                                               the end of 2010 as adequate, and we are posi-                  Fiscal year ended Dec. 31. Next earnings report expected: NA. EPS
                                                                                                                                              Estimates based on S&P Operating Earnings; historical GAAP
®   We expect jet fuel expense to rise about 20% in                            tive on DAL's stated goal to reduce net debt to                earnings are as reported.
    2011, after a 3% rise in 2010. Offsetting this in-                         $10.0 billion by the end of 2012 from $15.0 billion
    crease, we see cost-cutting and efficiency im-                             at year end.
    provements as Delta continues to streamline its                                                                                            Dividend Data
    fleet. The company largely completed its merg-                         ®   Risks to our opinion and target price include                  No cash dividends have been paid since 2003.
    er integration in 2010, moving to one operating                            surging oil prices, intensifying price competi-
    certificate and combining reservation and yield                            tion, and a slower economic recovery than we
    management systems. We expect overall non-                                 are expecting.
    fuel unit costs to rise about 5%, less than the in-
    crease in revenues that we are projecting.                             ®   Our 12-month target price of $16 values DAL at
                                                                               an enterprise value to EBITDAR (earnings be-
®   We project 2011 operating EPS of $1.84, versus                             fore interest, taxes, depreciation, amortization,
    2010 operating EPS of $1.72 and a 2009 operat-                             and aircraft rent) multiple of about 6.9X our 2011
    ing loss of $1.29.                                                         EBITDAR estimate, a premium to peers, war-
                                                                               ranted by DAL's strong global route network.

Please read the Required Disclosures and Analyst Certification on the last page of this report.
Redistribution or reproduction is prohibited without written permission. Copyright ©2011 The McGraw-Hill Companies, Inc.
Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
 Business Summary January 19, 2011                                                                                          Corporate Information

CORPORATE OVERVIEW. Delta Air Lines (DAL) became the largest passenger airline in the world following                      Office
its 2008 merger with Northwest Airlines, but was recently bumped to number two by the October 2010                         Hartsfield Atlanta International Airport, Atlanta,
merger of UAL Corp. and Continental Airlines. On October 29, 2008, Delta completed a merger with North-                    GA 30320-6001.
west in a transaction whereby each NWA share was exchanged for 1.25 DAL shares. The combined oper-
ation kept the Delta name and started with about $32 billion in annual revenues.                                           Telephone
As of April 20, 2010, Delta served 355 destinations worldwide in 65 countries. Hubs are in Atlanta, Cincin-
nati, New York (JFK), and Salt Lake City. Revenues in North America accounted for 68% of the 2009 total,                   Website
Transatlantic 18%, Latin America 5%, and Pacific 9%.                                                                       http://www.delta.com

Delta filed for Chapter 11 bankruptcy protection on September 14, 2005, and emerged on April 30, 2007. In
November 2006, US Airways Group, Inc. proposed a merger with Delta, initially offering $4.0 billion and 78.5               Officers
million shares of US Airways common stock. On January 10, 2007, US Airways increased the bid to $5.0 bil-
lion and 89.5 million shares. However, Delta argued that its stand-alone plan offered better value to credi-               Chrmn                       CEO
tors, and the creditors committee announced support for Delta's stand-alone plan on January 31, 2007. On                   D.A. Carp                   R.H. Anderson
February 1, 2007, US Airways withdrew its proposal.
                                                                                                                           Pres                        COO & EVP
MARKET PROFILE. The U.S. airline industry is a $155 billion market, according to 2009 data from the Air                    E. Bastian                  S.E. Gorman
Transport Association. With 2009 revenues of $28.1 billion DAL comprised about 18% of the total U.S. mar-
ket. Delta had about a 24.6% market share when measured by revenue passenger miles (RPMs) as of De-                        Vice Chrmn
cember 2009. The 10 largest carriers reported a net loss of $24 billion in 2008 and $4.7 billion in 2009. This             R.J. Bostock
group had a net profit of $6.3 billion in 2007 and $1.6 billion in 2006. Total combined losses in the five years
from 2001-2005 at the 10 largest carriers are estimated by Standard & Poor's at $58.6 billion.
                                                                                                                           Board Members
COMPETITIVE LANDSCAPE. The U.S. airline industry consists of 20 major commercial passenger airlines,                       R. H. Anderson
with revenues of over $1 billion. Major competitors include American Airlines (17.0% market share, as
                                                                                                                           E. Bastian
measured by revenue passenger miles as of December 2009), United Airlines (13.1%), Continental (10.4%),
                                                                                                                           R. J. Bostock
Southwest Airlines (9.7%), US Airways (7.5%) and JetBlue (3.4%). The U.S. airline industry is fragmented
                                                                                                                           J. S. Brinzo
and highly competitive. Barriers to entry are generally high, since aircraft are costly, airport landing slots
                                                                                                                           D. A. Carp
are limited, and there are very entrenched competitors. In addition, pricing in the industry is extremely
competitive. A major airline tends to match the lowest airfare by a competitor, even if that carrier is losing             J. M. Engler
money at those fares. Fuel costs, either the first or second largest cost category depending on the carrier,               M. P. Foret
have risen sharply over the past two years.                                                                                D. Goode
                                                                                                                           P. R. Reynolds
IMPACT OF MAJOR DEVELOPMENTS. On October 29, 2008, Delta completed a merger with Northwest Air-                            K. C. Rogers
lines in a transaction whereby each NWA share was exchanged for 1.25 DAL shares. The combined oper-                        R. E. Slater
ation kept the Delta name and started with about $32 billion in annual revenues. In August 2008, pilot                     D. M. Steenland
groups for both Delta and Northwest voted to approve a joint collective bargaining agreement that will be                  K. B. Woodrow
applicable to both workgroups upon closing of the merger. Among other things, the agreement provides
for binding arbitration for any disputes, which we think will go a long way toward preventing major merger
related workforce issues, including the issue of integrating seniority lists, which has proved to be difficult             Domicile
in other airline mergers, in our view.                                                                                     Delaware
Standard & Poor's thinks the merger made sense given DAL's strong presence in the Trans-Atlantic mar-                      Founded
ket and Northwest's strength in the Pacific. Also, there was very little overlap among domestic routes, and                1930
the carriers had both already shed a great deal of debt and costs through the Chapter 11 bankruptcy
process. We think the combined entity should be able to increase its market share of business travelers                    Employees
and could have improved pricing power. However, there is little commonality among the fleet types, which                   79,684
will likely raise the complexity of the maintenance, spare parts and training programs. In addition, Delta's
decision not to eliminate hubs or routes ties its hands somewhat in its ability to cut costs, in our view.                 Stockholders
Crude oil hit a record price of over $147 a barrel in July 2008. Although the price of oil has pulled back
sharply, it was near $91 a barrel in mid-January 2011. We think passenger demand is likely to strengthen in
2011 on an improving global economy. We also think that industrywide capacity cuts taken over the past
three years should help drive fare increases. United Airlines emerged from bankruptcy on February 1, 2006.
Delta and Northwest prior to the merger also restructured under Chapter 11 protection.

FINANCIAL TRENDS. The company reported adjusted net income of $1.4 billion in 2010, on revenues of
$31.8 billion, for an adjusted net margin of 4.4%. This excluded $450 million of restructuring and merger-re-
lated charges and $391 million of losses on the extinguishment of debt. Results in 2010 contrasted with a
2009 net loss of $1.2 billion, including $490 million of restructuring items and a $321 million income tax ben-
efit. From 2002 to 2009, Delta lost a total of $27.1 billion. The company's restructuring under Chapter 11 was
intended to simplify its fleet by retiring four aircraft types, lowering domestic capacity and increasing in-
ternational capacity. Delta also restructured aircraft and facility leases, cut labor costs by an estimated
$280 million annually and other costs by an estimated $600 million annually, and terminated its pilot pen-
sion plan.

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Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
 Quantitative Evaluations                                                                                          Expanded Ratio Analysis

S&P Fair Value                  5-         1             2            3            4             5                                                                      2010           2009           2008      2007
Rank                                 LOWEST                                                     HIGHEST          Price/Sales                                             0.33           0.34          0.24      0.44
                                     Based on S&P's proprietary quantitative model, stocks are ranked            Price/EBITDA                                           2.54           5.81           3.89      3.74
                                     from most overvalued (1) to most undervalued (5).                           Price/Pretax Income                                   17.47            NM             NM      11.21
                                                                                                                 P/E Ratio                                             17.91            NM             NM      18.74
Fair Value                 $18.10 Analysis of the stock's current worth, based on S&P's proprietary              Avg. Diluted Shares Outstg (M)                        843.0          827.0          468.0     395.2
                                     quantitative model suggests that DAL is Undervalued by $6.87 or
Calculation                          61.2%.                                                                      Figures based on calendar year-end price

Investability                                  11                                                                  Key Growth Rates and Averages
Quotient                             LOWEST = 1                                           HIGHEST = 100
Percentile                           DAL scored lower than 89% of all companies for which an S&P                 Past Growth Rate (%)                             1 Year        3 Years           5 Years    9 Years
                                     Report is available.
                                                                                                                 Sales                                            13.16            32.45            16.59       9.55
                                                                                                                 Net Income                                        NM               NM               NM         NM
Volatility                                     LOW               AVERAGE                  HIGH
                                                                                                                 Ratio Analysis (Annual Avg.)
Technical              BEARISH       Since December, 2010, the technical indicators for DAL have been            Net Margin (%)                                     1.87            NM               NM         NM
                                     BEARISH.                                                                    % LT Debt to Capitalization                        NA              NA               NM         NM

Insider Activity             NA        UNFAVORABLE               NEUTRAL               FAVORABLE

 Company Financials Fiscal Year Ended Dec. 31

Per Share Data ($)                                               2010             2009            2008           2007              2006            2005            2004            2003              2002       2001
Tangible Book Value                                               NA              NM              NM              NM                NA              NA              NA              NA                NA         NA
Cash Flow                                                          NA              0.36         -16.36            2.75           -25.08          -15.87          -31.28             3.57            -0.86       0.43
Earnings                                                          0.70           -1.50          -19.06            4.09           -31.58          -23.75          -41.08            -6.40           -10.44      -9.99
S&P Core Earnings                                                0.98            -1.17           -9.66            4.05           -39.16          -19.88          -24.25            -6.16           -15.90     -16.74
Dividends                                                          Nil              Nil             Nil            Nil              NA              NA              NA               NA               NA         NA
Payout Ratio                                                       Nil              Nil             Nil            Nil              NA              NA              NA               NA               NA         NA
Prices:High                                                     14.94            12.65           18.99           23.25              NA              NA              NA               NA               NA         NA
Prices:Low                                                       9.60              3.51            4.00          14.04              NA              NA              NA               NA               NA         NA
P/E Ratio:High                                                      21             NM              NM                6              NA              NA              NA               NA               NA         NA
P/E Ratio:Low                                                       14             NM              NM                3              NA              NA              NA               NA               NA         NA

Income Statement Analysis (Million $)
Revenue                                                        31,755          28,063           22,697          13,358          17,171           16,191          15,002          13,303           13,305     13,879
Operating Income                                                4,186           1,619            1,379           1,574           1,384              160            -258             297              267        162
Depreciation                                                      NA            1,536            1,266             778           1,276            1,273           1,244           1,230            1,181      1,283
Interest Expense                                                1,220           1,278              705             390             870            1,032             824             732              646        499
Pretax Income                                                     608          -1,581           -9,041             525          -6,968           -3,859          -3,992          -1,189           -2,002     -1,864
Effective Tax Rate                                                NA           21.8%              NM            40.2%           11.0%            1.06%             NM            35.0%            36.5%      34.8%
Net Income                                                        593          -1,237           -8,922             314          -6,203           -3,818          -5,198            -773           -1,272     -1,216
S&P Core Earnings                                                 827            -966           -4,512           1,598          -7,694           -3,211          -3,081            -762           -1,960     -2,062

Balance Sheet & Other Financial Data (Million $)
Cash                                                               NA           4,678           4,467            3,306           2,648           2,008            1,835           2,748            1,969      2,215
Current Assets                                                     NA           7,741           8,904            5,240           5,385           4,480            3,606           4,967            3,902      3,567
Total Assets                                                       NA          43,539          45,014           32,423          19,622          20,039           21,801          26,356           24,720     23,605
Current Liabilities                                                NA           9,797          11,022            6,605           5,769           5,265            5,941           6,624            6,455      6,403
Long Term Debt                                                     NA          15,229          14,938            7,986          11,588          12,400           13,005          11,460           10,074      8,279
Common Equity                                                      NA             245             874           10,113         -13,593          -9,895           -5,796            -659              893      3,769
Total Capital                                                      NA          16,919          16,880           18,954            -502           3,938            8,379          12,078           11,897     12,563
Capital Expenditures                                               NA           1,202           1,522            1,036             413             814              760             744            1,286      2,793
Cash Flow                                                          NA             299          -7,656            1,092          -4,929          -2,563           -3,973             440             -106       53.0
Current Ratio                                                      NA              0.8             0.8              0.8             0.9             0.9              0.6             0.8              0.6        0.6
% Long Term Debt of Capitalization                                 NA              Nil           88.4             42.1             NM            314.9            155.2            94.9             84.7       65.9
% Net Income of Revenue                                            1.9            NM              NM                2.4            NM              NM               NM              NM               NM         NM
% Return on Assets                                                 NA             NA              NM               NM              NM              NM               NM              NM               NM         NM
% Return on Equity                                                 NA             NA              NM               NM              NM              NM               NM              NM               NM         NM

Data as orig reptd.; bef. results of disc opers/spec. items. Per share data adj. for stk. divs.; EPS diluted. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked. UR-Under Review.

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Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
Sub-Industry Outlook                                                                                                                                  Stock Performance
We have a positive fundamental outlook for the                             Total revenue passenger miles (RPMs) rose 3.2% in                          GICS Sector: Industrials
airline sub-industry. Traffic statistics showed                            2010, after a 5.8% decline in 2009. Yields rose 14.1%,                     Sub-Industry: Airlines
improving demand and revenues in 2010 and the first                        after a 13.1% decline in 2009. Available seat miles
two months of 2011. We think the U.S. airline                              rose 0.6%, after falling 6.1% in 2009. Passenger load                      Based on S&P 1500 Indexes
industry is in the midst of fundamental industry                           factor improved by 1.4 percentage points in 2010, to                       Month-end Price Performance as of 02/28/11
demand improvement. In addition, we think that                             82.5%.
since the industry has reduced capacity levels, it
should be able to raise fares as passenger travel                          Year to date through February 25, the S&P Airlines                              140
demand continues to improve. There have been                               index declined 7.0%, versus a 5.0% increase for the
several rounds of fare increases in January and                            S&P 1500. In 2010, the S&P Airlines index gained                                120
February of 2011. Oil and jet fuel prices have been                        18.5%, versus a 14.2% increase for the S&P 1500.
rising in early 2011, and represent a risk to the
fragile industry recovery. At this time, we believe                        --Jim Corridore                                                                 100
fare increases should offset the increase in jet fuel

We think investor sentiment on airline stocks could
improve on signs that the U.S. economy is improving                                                                                                         60
and if oil retreats. We view positively the news on
October 1, 2010, that UAL Corp. (UAL 23, Buy) and
Continental Airlines completed their merger. This
created the largest airline in the world, eliminated
one major competitor and, we think, could spur                                                                                                              20
additional capacity cuts and eventually lead to
higher airfares. We see similar, but smaller benefits
from the announced acquisition of AirTran Holdings                                                                                                            0
(AAI 7, Hold) by Southwest Airlines (LUV 12, Buy).                                                                                                                      2007        2008   2009    2010       2011
Many of the shares warrant added risk premiums, in
our view.                                                                                                                                             Sub-Industry         Sector            S&P 1500

We estimate that the top 10 U.S. carriers earned $3.7
billion in 2010, after losing $5 billion in 2009 and $4                                                                                               NOTE: All Sector & Sub-Industry information is based on the
                                                                                                                                                      Global Industry Classification Standard (GICS)
billion in 2008. Results in 2010 benefited from strong
leisure demand, improved business travel and
airfare increases. We think cuts to domestic and
international supply over the past three years has
improved pricing power. For 2011, we think the ten
largest carriers will likely earn a net profit of about
$4.3 billion.

Sub-Industry : Airlines Peer Group*: Airlines (U.S.) - Major
                                                                                Stk.Mkt.       Recent          52                                                       Fair            S&P Return on          LTD to
                                                                  Stock            Cap.         Stock         Week                         Yield         P/E          Value     Quality IQ   Revenue             Cap
Peer Group                                                       Symbol          (Mil. $)     Price($)     High/Low($)         Beta          (%)        Ratio        Calc.($)   Ranking %ile      (%)             (%)
Delta Air Lines                                                      DAL            9,388        11.23       14.94/9.60         0.65          Nil           16         18.10    NR          11          1.9      NA
AMR Corp                                                            AMR             2,204         6.61       9.97/5.86          1.48          Nil         NM            3.30    C           21          NA      132.9
Alaska Air                                                           ALK            2,175        60.70      65.00/37.03         0.52          Nil           9          53.20    B-          26          6.5      54.3
JetBlue Airways                                                     JBLU            1,792         6.08       7.60/5.14          1.01          Nil          20           6.00    B-          16          2.6      59.9
Southwest Airlines                                                   LUV            9,509        12.72      14.32/10.42         1.08          0.1          21          11.40    B           33          3.8      29.9
US Airways Group                                                     LCC            1,486         9.18       12.26/5.70         1.00          Nil           4          10.40    C            6          4.2      89.3
United Continental Holdings                                          UAL            8,125        24.73      29.75/16.39         1.08          Nil          23            NA     NR           9          1.1      73.4

NA-Not Available NM-Not Meaningful NR-Not Rated. *For Peer Groups with more than 15 companies or stocks, selection of issues is based on market capitalization.

Source: S&P.
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Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
S&P Analyst Research Notes and other Company News
                                                                                                                 managerial studies from Rice University. He will join Delta Nov. 1 and live in
                                                                                                                 Atlanta with his wife and two children. With Shannon's addition, two long-time
February 16, 2011
                                                                                                                 Delta leaders will move to new roles to support focus areas of the airline's
Douglas M. Steenland is a member of the Board of Directors of Delta Air Lines
                                                                                                                 long-term plan. Wayne Aaron, who successfully led the project management
Inc. On February 9, 2011, Mr. Steenland, the former Chief Executive Officer and
                                                                                                                 office overseeing Delta's merger integration, will transition from his current role
President of Northwest Airlines Corporation and Northwest Airlines Inc. informed
                                                                                                                 as vice president -- Corporate Strategy and Business Development to vice
Delta that he has decided not to stand for reelection to Delta's Board of Directors
                                                                                                                 president -- Marketing Programs and Distribution Strategy, reporting to Tim
at the 2011 annual meeting of stockholders because the integration of Delta and
                                                                                                                 Mapes, Delta's senior vice president -- Marketing. Aaron will lead Delta's
Northwest is largely complete and the merger between the two airlines has
                                                                                                                 electronic distribution strategy and support product innovation, focus city
achieved positive results.
                                                                                                                 initiatives and other marketing efforts. He will play a critical role as Delta focuses
                                                                                                                 on improving the customer experience, with an investment of more than $2 billion
January 18, 2011                                                                                                 in full-flat beds on trans-oceanic aircraft, expanded in-flight entertainment, new
DAL posts $0.02 Q4 GAAP EPS vs. $0.03 loss on 14% op. revenue rise. Posts $0.19                                  Sky Clubs and new international terminals planned over the next three years. Jeff
Q4 EPS (excl. special items). Street was looking for $0.25 EPS.                                                  Arinder, who currently serves as Delta's managing director, Network Strategy,
                                                                                                                 will be promoted to vice president, Corporate Strategy and Business
                                                                                                                 Development, reporting to Holden Shannon. John Boatright, vice president,
January 18, 2011
                                                                                                                 Corporate Real Estate, also will report to Shannon. Shannon will report to Delta
                                                                                                                 President Ed Bastian.
(DAL 12.11****): DAL Q4 operating EPS is $0.19, vs. a $0.27 loss, and missed our
$0.39 estimate, on higher jet fuel costs than we expected. We currently expect
DAL to offset higher jet fuel costs with revenue growth, but we see DAL's                                        October 20, 2010
capacity growth plans as very aggressive, which is a risk. We were impressed                                     DAL posts $1.10 Q3 EPS (excluding items) vs. $0.19 loss on 18% higher total
with DAL's debt reduction efforts which should drive significant reductions in                                   operating revenue. Says revenue performance exceeded its expectations for the
interest expense in '11. On a higher fuel cost forecast, we cut our '11 EPS                                      Q, with especially strong performance from its international markets.
estimate to $1.84 from $2.77, but we keep our 12-month price target of $16, on an
above peers Enterprise Value to EBITDAR basis. /J.Corridore
                                                                                                                 October 20, 2010
                                                                                                                 09:14 am ET ... S&P REITERATES BUY OPINION ON SHARES OF DELTA AIR LINES
December 17, 2010                                                                                                (DAL 11.7****): DAL Q3 operating EPS is $1.10. EPS comparisons are not relevant,
Delta Air Lines Inc. announced that it has promoted from vice president to senior                                but net results showed an $878M improvement over last year. DAL expects to be
vice president two leaders integral to the airline's long-term business strategy.                                profitable in Q4 with a 6%-8% operating margin. Based primarily on higher
Neel Shah has been named senior vice president and chief cargo officer and                                       projected fuel costs, we have lowered our '10 and '11 EPS estimates to $1.74 and
Chris Collette has been named senior vice president - Supply Chain Management.                                   $2.77 from $1.76 and $3.20. We keep our 12-month target price at $16, an
Shah will continue to lead Delta's cargo division, overseeing the company's                                      enterprise value-to-EBITDAR multiple of 4.9X our '11 EBITDAR estimate, slightly
nearly $1 billion freight and mail business. His promotion from vice president to                                above legacy peers. We think improved profitability will drive expanded
senior vice president acknowledges the company's commitment to continuing to                                     valuations for DAL and other U.S. legacy airlines. /J.Corridore
build a world-class cargo business that leverages the size and scope of the
company's global network. He will continue reporting to the company's President
                                                                                                                 September 14, 2010
Ed Bastian. Shah joined the company in January 2008 from United Airlines Cargo
                                                                                                                 UP 0.61 to 11.26... In form 8-K, DAL says projected system load factors of 83% for
where he served as vice president - Sales and Marketing. He serves on the Air
                                                                                                                 Sept 2010 and 86% for Q3 are expected to be consistent with corresponding prior
Transport Association's Executive Cargo Council, the SkyTeam Cargo Executive
                                                                                                                 year period. Expects to end Q3 with $5.6 billion of unrestricted liquidity, which is
Board, and is an executive appointee of Gov. Sonny Perdue to the Georgia State
                                                                                                                 lower than previous guidance due to successful execution of $750M of debt
Workforce Investment Board and the Georgia Department of Transportation
                                                                                                                 reduction initiatives.
Private Sector Advisory Committee. Chris Collette heads the company's supply
chain management organization. During his tenure as vice president - Supply
Chain Management, he has created a robust supplier performance management
process and continues to enhance Delta's focus on growing supplier diversity
around the world. In support of the company's $2 billion investment in upgraded
customer products, services and facilities, he is playing a lead role in vendor
identification and contracting. Collette reports to Steve Gorman, Delta's
executive vice president and chief operating officer. Before joining the supply
chain management team, Collette held positions of increasing responsibility at
Northwest Airlines since 1990. Collette serves as a board member for
Aeroxchange, the company's e-commerce provider, and is a board member of
the Crohn's and Colitis Foundation of America.

December 10, 2010
Delta Air Lines Inc. appointed Nicolas Ferri to the newly created position of vice
president, Latin America and the Caribbean effective January 1, 2011. Ferri will
report to Delta President Ed Bastian. Ferri joins Delta from the oneworld airline
alliance where he has served as a vice president responsible for all alliance
sales and marketing activities for commercial operations.

November 2, 2010
Delta Air Lines Inc. named Holden Shannon senior vice president, Corporate
Strategy and Real Estate and a member of the airline's Corporate Leadership
Team, a committee of Delta's most senior executives responsible for the airline's
overall strategy. Prior to joining Delta, Shannon spent 15 years at Continental
Airlines. A broadly experienced senior airline executive, Shannon most recently
served as senior vice president, System Operations and Real Estate at
Continental where he was responsible for the airline's operations control and
flight dispatch, operational planning and analysis and crew scheduling,
worldwide real estate and environmental programs. Shannon holds a Master of
Business Administration from Harvard University and a bachelor's degree in

Source: S&P.
Redistribution or reproduction is prohibited without written permission. Copyright ©2011 The McGraw-Hill Companies,Inc.
Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
 Analysts' Recommendations                                                                                                                                                      Wall Steet Consensus Opinion

          Monthly Average Trend                    Buy      Buy/Hold              Hold      Weak Hold        Sell        No Opinion         DAL Trend                          BUY/HOLD
                                                   B        BH                    H         WH               S

            Wall Street Average                                                                                                                                                 Companies Offering Coverage
                                                                                                                                                                               Avondale Partners LLC
                                                                                                                                                                               Barclays Capital
                                                                                                                                                                               Bofa Merrill Lynch
                                                                                                                                                                               CRT Capital Group
                                                                                                                                                                               Capstone Investments
            Number of Analysts Following Stock                                                                                                                                 Dahlman Rose & Co.
                                                                                                                                                                               Deutsche Bank North America
     16                                                                                                                                                                        Hudson Securities
                                                                                                                                                                               Morgan Stanley
      8                                                                                                                                                                        Morningstar, Inc.
                                                                                                                                                                               UBS (us)
            Stock Price ($)



            A     M         J   J      A       S       O    N        D        J       F     M        A   M   J       J     A     S      O       N     D    J        F     M

                                    2009                                                                         2010                                              2011

Of the total 13 companies following DAL, 13 analysts currently publish recommendations.

                                                                                  No. of Ratings              % of Total              1 Mo. Prior 3 Mos. Prior
Buy                                                                                            4                      31                        4            4
Buy/Hold                                                                                       7                      54                        7            7
Hold                                                                                           2                      15                        1            3
Weak Hold                                                                                      0                       0                        0            0
Sell                                                                                           0                       0                        0            0
No Opinion                                                                                     0                       0                        1            0
Total                                                                                         13                    100                        13           14
 Wall Street Consensus Estimates                                                                                                                                               Wall Street Consensus vs. Performance

                                                                                                                                                                               For fiscal year 2011, analysts estimate that DAL
          Estimates             2010                       2011                       2012                                                          2010 Actual $0.7           will earn $1.82. For fiscal year 2012, analysts
      3                                                                                                                                                                        estimate that DAL's earnings per share will grow
                                                                                                                                                                               by 14% to $2.08.


      0      N          D       J          F           M        A         M           J          J       A       S        O      N          D         J        F          M

                 2009                                                                     2010                                                             2011

Fiscal Years                                                        Avg Est.               High Est.              Low Est.               # of Est.                 Est. P/E
2012                                                                    2.08                    2.69                  1.31                      8                        5.4
2011                                                                    1.82                    2.52                  1.23                     13                        6.2
2012 vs. 2011                                                          14%                       7%                    7%                   -38%                      -13%

Q1'12                                                                    -0.20                       0.06                -0.46                      2                   NM4
Q1'11                                                                    -0.18                       0.05                -0.53                     12                    NM
Q1'12 vs. Q1'11                                                          -11%                        20%                  13%                   -83%                     NM

A company's earnings outlook plays a major part in any investment decision. Standard & Poor's organizes the earnings estimates of over 2,300
Wall Street analysts, and provides their consensus of earnings over the next two years. This graph shows the trend in analyst estimates over
the past 15 months.

Source: S&P,I/B/E/S International, Inc.
Redistribution or reproduction is prohibited without written permission. Copyright ©2011 The McGraw-Hill Companies,Inc.
Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
 Glossary                                                               S&P Equity Research Services                                  Abbreviations Used in S&P Equity Research Reports
                                                                        Standard & Poor’s Equity Research Services U.S.               CAGR- Compound Annual Growth Rate; CAPEX- Capital
                                                                        includes Standard & Poor’s Investment Advisory                Expenditures; CY- Calendar Year; DCF- Discounted Cash
                                                                        Services LLC; Standard & Poor’s Equity Research               Flow; EBIT- Earnings Before Interest and Taxes; EBITDA-
Since January 1, 1987, Standard & Poor’s Equity
                                                                        Services Europe includes Standard &Poor’s LLC-                Earnings Before Interest, Taxes, Depreciation and
Research Services has ranked a universe of U.S.
                                                                        London; Standard & Poor’s Equity Research Services            Amortization; EPS- Earnings Per Share; EV- Enterprise
common stocks, ADRs (American Depositary Receipts),
                                                                        Asia includes Standard & Poor’s LLC’s offices in              Value; FCF- Free Cash Flow; FFO- Funds From Operations;
and ADSs (American Depositary Shares) based on a
                                                                        Singapore, Standard & Poor’s Investment Advisory              FY- Fiscal Year; P/E- Price/Earnings ; PEG Ratio-
given equity’s potential for future performance. Similarly,
                                                                        Services (HK) Limited in Hong Kong, Standard & Poor’s         P/E-to-Growth Ratio; PV- Present Value; R&D- Research
Standard & Poor’s Equity Research Services has used
                                                                        Malaysia Sdn Bhd, and Standard & Poor’s Information           & Development; ROE- Return on Equity; ROI- Return on
STARS® methodology to rank Asian and European
                                                                        Services (Australia) Pty Ltd.                                 Investment; ROIC- Return on Invested Capital; ROA-
equities since June 30, 2002. Under proprietary STARS
                                                                                                                                      Return on Assets; SG&A- Selling, General &
(STock Appreciation Ranking System), S&P equity
                                                                                                                                      Administrative Expenses; WACC- Weighted Average
analysts rank equities according to their individual
                                                                                                                                      Cost of Capital
forecast of an equity’s future total return potential versus
the expected total return of a relevant benchmark (e.g., a
regional index (S&P Asia 50 Index, S&P Europe 350®                                                                                    Dividends on American Depository Receipts (ADRs) and
Index or S&P 500® Index)), based on a 12-month time                                                                                   American Depository Shares (ADSs) are net of taxes
horizon. STARS was designed to meet the needs of                                                                                      (paid in the country of origin).
investors looking to put their investment decisions in
perspective.                                                                                                                           Required Disclosures

                                                                                                                                      In contrast to the qualitative STARS recommendations
S&P Quality Ranking
                                                                                                                                      covered in this report, which are determined and
(also known as S&P Earnings & Dividend Rankings)-
                                                                                                                                      assigned by S&P equity analysts, S&P’s quantitative
Growth and stability of earnings and dividends are
                                                                                                                                      evaluations are derived from S&P’s proprietary Fair
deemed key elements in establishing S&P’s earnings and
                                                                                                                                      Value quantitative model. In particular, the Fair Value
dividend rankings for common stocks, which are
                                                                                                                                      Ranking methodology is a relative ranking methodology,
designed to capsulize the nature of this record in a single
                                                                                                                                      whereas the STARS methodology is not. Because the
symbol. It should be noted, however, that the process
                                                                                                                                      Fair Value model and the STARS methodology reflect
also takes into consideration certain adjustments and
                                                                                                                                      different criteria, assumptions and analytical methods,
modifications deemed desirable in establishing such
                                                                                                                                      quantitative evaluations may at times differ from (or even
rankings. The final score for each stock is measured
                                                                                                                                      contradict) an equity analyst’s STARS recommendations.
against a scoring matrix determined by analysis of the
                                                                                                                                      As a quantitative model, Fair Value relies on history and
scores of a large and representative sample of stocks.
                                                                                                                                      consensus estimates and does not introduce an element
The range of scores in the array of this sample has been
                                                                                                                                      of subjectivity as can be the case with equity analysts in
aligned with the following ladder of rankings:
                                                                                                                                      assigning STARS recommendations.
A+   Highest                   B     Below Average                                                                                    S&P Global STARS Distribution
A    High                      B-    Lower
A-   Above Average             C     Lowest                                                                                           In North America: As of December 31, 2010, research
B+   Average                   D     In Reorganization                                                                                analysts at Standard & Poor's Equity Research Services
NR   Not Ranked                                                                                                                       North America recommended 35.0% of issuers with buy
                                                                                                                                      recommendations, 56.4% with hold recommendations
                                                                                                                                      and 8.6% with sell recommendations.

S&P Issuer Credit Rating                                                                                                              In Europe: As of December 31, 2010, research analysts at
A Standard & Poor’s Issuer Credit Rating is a current                                                                                 Standard & Poor's Equity Research Services Europe
opinion of an obligor’s overall financial capacity (its                                                                               recommended 33.6% of issuers with buy
creditworthiness) to pay its financial obligations. This                                                                              recommendations, 45.6% with hold recommendations
opinion focuses on the obligor’s capacity and willingness                                                                             and 20.8% with sell recommendations.
to meet its financial commitments as they come due. It
does not apply to any specific financial obligation, as it                                                                            In Asia: As of December 31, 2010, research analysts at
does not take into account the nature of and provisions                                                                               Standard & Poor's Equity Research Services Asia
of the obligation, its standing in bankruptcy or liquidation,                                                                         recommended 39.4% of issuers with buy
statutory preferences, or the legality and enforceability                                                                             recommendations, 51.8% with hold recommendations
of the obligation. In addition, it does not take into                                                                                 and 8.8% with sell recommendations.
account the creditworthiness of the guarantors, insurers,
or other forms of credit enhancement on the obligation.                                                                               Globally: As of December 31, 2010, research analysts at
                                                                                                                                      Standard & Poor's Equity Research Services globally
                                                                                                                                      recommended 35.2% of issuers with buy
S&P Core Earnings                                                                                                                     recommendations, 54.0% with hold recommendations
Standard & Poor's Core Earnings is a uniform                                                                                          and 10.8% with sell recommendations.
methodology for adjusting operating earnings by
focusing on a company's after-tax earnings generated                                                                                  55555 5-STARS (Strong Buy): Total return is
from its principal businesses. Included in the Standard &                                                                             expected to outperform the total return of a relevant
Poor's definition are employee stock option grant                                                                                     benchmark, by a wide margin over the coming 12
expenses, pension costs, restructuring charges from                                                                                   months, with shares rising in price on an absolute basis.
ongoing operations, write-downs of depreciable or
amortizable operating assets, purchased research and                                                                                  55555 4-STARS (Buy): Total return is expected to
development, M&A related expenses and unrealized                                                                                      outperform the total return of a relevant benchmark over
gains/losses from hedging activities. Excluded from the                                                                               the coming 12 months, with shares rising in price on an
definition are pension gains, impairment of goodwill                                                                                  absolute basis.
charges, gains or losses from asset sales, reversal of
prior-year charges and provision from litigation or
                                                                                                                                      55555 3-STARS (Hold): Total return is expected to
                                                                                                                                      closely approximate the total return of a relevant
insurance settlements.
                                                                                                                                      benchmark over the coming 12 months, with shares
                                                                                                                                      generally rising in price on an absolute basis.
S&P 12-Month Target Price
                                                                                                                                      55555 2-STARS (Sell): Total return is expected to
The S&P equity analyst’s projection of the market price a                                                                             underperform the total return of a relevant benchmark
given security will command 12 months hence, based on                                                                                 over the coming 12 months, and the share price not
a combination of intrinsic, relative, and private market                                                                              anticipated to show a gain.
valuation metrics.

Redistribution or reproduction is prohibited without written permission. Copyright © 2011 Standard & Poor's Financial Services LLC.
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Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
555551-STARS (Strong Sell): Total return is                             considered to be investment advice.
expected to underperform the total return of a relevant                                                                                  units separate from each other in order to preserve the
benchmark by a wide margin over the coming 12 months,                   Indexes are unmanaged, statistical composites and their
                                                                                                                                         independence and objectivity of their respective
with shares falling in price on an absolute basis.                      returns do not include payment of any sales charges or
                                                                                                                                         activities. As a result, certain business units of Standard
                                                                        fees an investor would pay to purchase the securities
                                                                                                                                         & Poor’s may have information that is not available to
Relevant benchmarks: In North America the relevant                      they represent. Such costs would lower performance. It
                                                                                                                                         other Standard & Poor’s business units. Standard &
benchmark is the S&P 500 Index, in Europe and in Asia,                  is not possible to invest directly in an index.
                                                                                                                                         Poor’s has established policies and procedures to
the relevant benchmarks are generally the S&P Europe
                                                                        Standard & Poor's and its affiliates provide a wide range        maintain the confidentiality of certain non-public
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                                                                                                                                         from a financial adviser regarding the suitability of an
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Redistribution or reproduction is prohibited without written permission. Copyright © 2011 Standard & Poor's Financial Services LLC.
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Stock Report | March 12, 2011 | NYS Symbol: DAL

Delta Air Lines Inc.
person in receipt of the recommendation, before the                                   made. Performance was calculated from inception
person makes a commitment to purchase the investment                                  through March 31, 2003 on a monthly basis. Thereafter,
product.                                                                              performance is calculated daily. Equities in each STARS
                                                                                      category will change over time, and some or all of the
For residents of Malaysia - All queries in relation to this                           equities that received STARS rankings during the time
report should be referred to Ching Wah Tam.                                           period shown may not have maintained their STARS
                                                                                      ranking during the entire period.
For residents of Indonesia - This research report does
not constitute an offering document and it should not be                              The model performance does not consider taxes and
construed as an offer of securities in Indonesia, and that                            brokerage commissions, nor does it reflect the deduction
any such securities will only be offered or sold through a                            of any advisory or other fees charged by advisors or
financial institution.                                                                other parties that investors will incur when their
                                                                                      accounts are managed in accordance with the models.
For residents of the Philippines - The securities being                               The imposition of these fees and charges would cause
offered or sold have not been registered with the                                     actual performance to be lower than the performance
Securities and Exchange Commission under the                                          shown. For example, if a model returned 10 percent on a
Securities Regulation Code of the Philippines. Any future                             $100,000 investment for a 12-month period (or $10,000)
offer or sale thereof is subject to registration                                      and an annual asset-based fee of 1.5 percent were
requirements under the Code unless such offer or sale                                 imposed at the end of the period (or $1,650), the net
qualifies as an exempt transaction.                                                   return would be 8.35 percent (or $8,350) for the year.
                                                                                      Over 3 years, an annual 1.5% fee taken at year end with
U.S. STARS Cumulative Model Performance                                               an assumed 10% return per year would result in a
Hypothetical Growth Due to Price Appreciation of $100                                 cumulative gross return of 33.1%, a total fee of $5,375
For the Period 12/31/1986 through 02/28/2011                                          and a cumulative net return of 27.2% (or $27,200). Fees
                                                                                      deducted on a frequency other than annual would result
                                                                                      in a different cumulative net return in the preceding
          S&P 500         5 STARS         4 STARS    3 STARS    2 STARS     1 STARS

                                                                                      The Standard & Poor’s 500 index is the benchmark for
                                                                                      U.S. STARS. The S&P 500 index is calculated in U.S.
                                                                                      dollars and does not take into account the reinvestment
  1,600                                                                               of dividends. Indexes are unmanaged, statistical
                                                                                      composites and their returns do not include payment of
                                                                                      any sales charges or fees an investor would pay to
                                                                                      purchase the securities they represent. Such costs
                                                                                      would lower performance. It is not possible to invest
                                                                                      directly in an index. The S&P 500 index includes a
                                                                                      different number of constituents and has different risk
                                                                                      characteristics than the STARS equities. Some of the
                                                                                      STARS equities may have been included in the S&P 500
            '92     '94     '96     '98      '0     '02   '04   '06   '08   '10       index for some (but not necessarily all) of the period
                                                                                      covered in the chart, and some such equities may not
The performance above represents only the results of                                  have been included at all. The S&P 500 excludes ADRs
Standard & Poor’s model portfolios. Model performance                                 and ADSs. The methodology for calculating the return of
has inherent limitations. Standard & Poor’s maintains the                             the S&P 500 index differs from the methodology of
models and calculates the model performance shown,                                    calculating the return for STARS. Past performance of
but does not manage actual assets. The U.S. STARS                                     the S&P 500 index is no guarantee of future
model performance chart is only an illustration of                                    performance.
Standard & Poor’s (S&P) research; it shows how U.S.
                                                                                      An investment based upon the models should only be
common stocks, ADRs (American Depositary Receipts)
                                                                                      made after consulting with a financial advisor and with
and ADSs (American Depositary Shares), collectively
                                                                                      an understanding of the risks associated with any
“equities”, that received particular STARS rankings
                                                                                      investment in securities, including, but not limited to,
performed. STARS categories are models only; they are
                                                                                      market risk, currency risk, political and credit risks, the
not collective investment funds. The STARS performance
                                                                                      risk of economic recession and the risk that issuers of
does not show how any actual portfolio has performed.
                                                                                      securities or general stock market conditions may
STARS model performance does not represent the
                                                                                      worsen, over time. Foreign investing involves certain
results of actual trading of investor assets. Thus, the
                                                                                      risks, including currency fluctuations and controls,
model performance shown does not reflect the impact
                                                                                      restrictions on foreign investments, less governmental
that material economic and market factors might have
                                                                                      supervision and regulation, less liquidity and the
had on decision-making if actual investor money had
                                                                                      potential for market volatility and political instability. As
been managed. Performance is calculated using a
                                                                                      with any investment, investment returns and principal
time-weighted rate of return. While model performance
                                                                                      value will fluctuate, so that when redeemed, an
for some or all STARS categories performed better than
                                                                                      investor’s shares may be worth more or less than their
the S&P 500 for the period shown, the performance
                                                                                      original cost.
during any shorter period may not have, and there is no
assurance that they will perform better than the S&P 500
in the future. STARS does not take into account any
particular investment objective, financial situation or
need and is not intended as an investment
recommendation or strategy. Investments based on the
STARS methodology may lose money. High returns are
not necessarily the norm and there is no assurance that
they can be sustained. Past model performance of
STARS is no guarantee of future performance.

For model performance calculation purposes, the
equities within each STARS category at December 31,
1986 were equally weighted. Thereafter, additions to the
composition of the equities in each STARS category are
made at the average value of the STARS category at the
preceding month end with no rebalancing. Deletions are
made at the closing price of the day that the deletion is

Redistribution or reproduction is prohibited without written permission. Copyright © 2011 Standard & Poor's Financial Services LLC.
STANDARD & POOR’S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor’s Financial Services LLC.

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