Delta Air Lines Provides Update on Financial Transactions Wednesday November 24, 6:25 pm ET

ATLANTA, Nov. 24 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL <http://finance.yahoo.com/q?s=dal&d=t>  - News <http://finance.yahoo.com/q/h?s=dal> ) today provided an update on the following financial transactions which are important elements of its transformation plan.

Achievement of Cost Savings Under Aircraft Concession Program

Delta's transformation plan includes cost savings under its aircraft leases and aircraft financing transactions. On Nov. 24, 2004, Delta entered into definitive agreements with aircraft lessors and lenders under which the company expects to receive average annual concessions of approximately $57 million between 2005 and 2009. In exchange for these concessions, the company issued approximately 4,350,000 shares of its common stock. These shares were issued without registration in reliance on Section 4(2) of the Securities Act of 1933.

Completion of Transaction with Holders of 7.7% Notes Due 2005

Also on Nov. 24, 2004, Delta completed a transaction under which the holders of approximately $97 million principal amount of the company's unsecured 7.7% Notes due 2005 exchanged those notes for (1) a like principal amount of newly issued unsecured 8.0% Notes due 2007 and (2) a total of 3,921,268 shares of company common stock. These securities were issued without registration in reliance on Section 4(2) of the Securities Act of 1933.

Delta expects that the holders of an additional approximately $38 million principal amount of 7.7% Notes due 2005 will exchange those notes, in the near term pursuant to existing agreements, for (1) a like principal amount of newly issued 8.0% Notes due 2007 and (2) a total of 1,566,786 shares of common stock.

Completion of Exchange Offer for Short-Term Debt Securities

As previously announced, Delta today completed an exchange offer under which holders of approximately $235 million aggregate principal amount of enhanced pass through certificates due in 2005 and 2006 exchanged those securities for a like principal amount of newly issued 9.5% Senior Secured Notes due
2008 (New Notes). The exchange offer was made only to "qualified institutional buyers" under Rule 144A, and the New Notes will not be registered, under the Securities Act of 1933.

Update on Financing Commitments

Delta is continuing to work towards a closing and funding of its previously announced financing commitments from GE Commercial Finance and American Express Travel Related Services Company, Inc. These commitments are subject to significant conditions.

Statements in this news release that are not historical facts, including statements regarding Delta's estimates, beliefs, expectations, intentions, strategies or projections, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, beliefs, expectations, intentions, strategies and projections reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to reduce operating expenses, our ability to obtain necessary financing or debt payment deferrals to meet our liquidity needs, our pension plan funding obligations, pilot early retirements, the cost of aircraft fuel, the effect of credit ratings downgrades, interruptions or disruptions in service at one of our hub airports, our increasing dependence on technology in our operations, the outcome of negotiations on collective bargaining agreements and other labor issues, the effects of terrorist attacks, restructurings by competitors and competitive conditions in the airline industry. Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in Delta's Securities and Exchange Commission filings, including its Form 10-Q for the quarter ended September 30, 2004, filed with the commission on November 15, 2004. Caution should be taken not to place undue reliance on Delta's forward-looking statements, which represent Delta's views only as of Nov.
24, 2004, and which Delta has no current intention to update.

Source: Delta Air Lines, Inc.