Delta Air Lines, Inc. (DAL) provides cargo and passenger services throughout the world. The following operating data (in millions) were adapted from recent financial statements of Delta.

1. Prepare common-sized income statements for Years 1 and 2. Round to one decimal place.

2. Using your answer to (1), analyze and comment on the performance of Delta in Year 2.

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Year 1 Year 2 Revenue .... $ 39,639 $ 41,244 Operating expenses: Fuel...... Aircraft related . Selling and general. Other expenses ..... Total operating expenses........ $(32,687) Operating income.... $ (5,133) (9,811) (15,757) $ (5,733) (10,609) (16,539) (1,986) (2,249) $(35,130) $ 6,114 $ 6,952