Delta Air Lines Funds Pension Plan

Delta Air Lines has announced that it has made a $321 million contribution to the Delta Retirement Plan. This contribution, combined with smaller contributions made earlier this year, brings Delta's total 2004 contributions to $325 million. 

Delta's contributions to the Delta Retirement Plan for 2004 exceed the minimum required contribution for the calendar year. The company does not anticipate making any additional contributions to that plan during the remainder of 2004, but plans to contribute approximately $115 million to the Delta Pilots Retirement Plan, bringing total pension plan contributions to approximately $440 million for the year.

Delta said it will continue to monitor factors affecting the financial position of its pension plans and will make adjustments to funding strategy if and when it is warranted. In addition, Delta reaffirmed its strong support for legislation before Congress to provide temporary pension funding relief for airlines and other plan sponsors.

Delta has voluntarily prefunded the Delta Retirement Plan for the second consecutive year. Delta said that it chose to again prefund its plan in order to provide greater assets for payment of participant benefits and investment return, thus potentially providing an added level of security to the benefits already earned by plan participants. In March 2003, Delta prefunded the Delta Retirement Plan with a contribution of $76 million, in excess of the plan's minimum funding requirement for calendar year 2003.

"Delta's decision to voluntarily prefund the Delta Retirement Plan this year, as we did last year, also provides the company with more level plan contribution requirements in the near term," said M. Michele Burns, Delta's executive vice president and chief financial officer. "Delta remains committed to effectively managing all aspects of our pension plans as it also takes steps to manage its balance sheet and cash flows effectively."

"Delta's decision to prefund the Delta Retirement Plan does not, however, lessen the need for Congress to promptly enact needed pension funding and interest rate relief as contained in pending legislation," said Burns.

Delta plans to meet minimum funding requirements in 2004 for the Delta Pilots Retirement Plan, which is determined separately from the Delta Retirement Plan. The planned 2004 contribution to the Delta Pilots Retirement Plan is approximately $115 million. Both the Delta Pilots Retirement Plan and the Delta Retirement Plan are funded to at least 80 percent for ERISA current liability purposes as of July 1, 2003, the most recent ERISA funding measurement date. The funded status for ERISA purposes compares the obligation of benefits already earned to the assets of the plans.

FMI: www.delta.com