Delta enhancing customer experience and improving fuel efficiency through agreement with Southwest Airlines and Boeing to lease 88 aircraft

DALLAS, July 9, 2012 /PRNewswire/ -- Southwest Airlines Co. (LUV) (the "Company") confirmed today that the Company, together with its subsidiary, AirTran Airways, Inc., has reached an agreement with Delta Air Lines, Inc., and Boeing Capital Corp., to lease or sublease all 88 of AirTran's Boeing 717 aircraft to Delta. The Company will transition approximately three 717 aircraft per month beginning August 2013.
By reaching this agreement, the Company will avoid converting the AirTran 717 fleet into Southwest as part of the AirTran integration. The Company's aircraft rent expense associated with Boeing 717s will be eliminated as each aircraft is transitioned to Delta. The Company's total estimated AirTran acquisition and integration costs are expected to increase by approximately $50 million as a result of the aircraft transition costs assumed by the Company as part of this 717 agreement. The Company's annual pre-tax results are expected to benefit by approximately $200 million, after all Boeing 717s are transitioned to Delta and replaced with Boeing 737 flying. Accounting for this third quarter transaction will be discussed during the Company's second quarter financial results conference call
DELTA AIR LINES