The order is the latest Delta initiative to elevate and reshape the future of air travel in the air and on the ground. Complimentary in all cabins unless stated below. Available on select flights over 1,500 miles. The volatility in fuel prices impacts the comparability of year-over-year financial performance. Delta Air Lines will continue to grow its fuel-efficient, state-of-the-art Airbus A220 fleet, exercising rights to purchase 12 new A220-300 aircraft. The A350 burns approximately 14,000 gallons of fuel on a transatlantic hop. the airline has reduced its jet fuel consumption, leading to an 11 percent decrease in emissions as it works toward its long-term goal of achieving carbon-neutral growth and reducing carbon emissions by 50 percent by 2050 . Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry. As such, the carrier would benefit from the TriStar's fuel efficiency to better optimize operations. Net cash flows related to certain airport construction projects. EARN 70,000 BONUS MILES. Deltas growing A220 fleet reinforces the airlines commitment to sustainability. Fortunately, weve always viewed sustainability as a long-term, ongoing investment. Last year, the airline received a total of 52 next-gen aircraft that are an average 25% more fuel-efficient per seat mile than retired models. Total capital expenditure on aircraft, fleet modifications, and technology enhancements is expected to be around $6.0 billion this year. Photo: Delta Air Lines. Powered by Pratt and Whitneys latest-generation geared turbofan GTF engines, the A220 offers 25% better fuel efficiency than the aircraft it replaces. Reducing Delta's carbon footprint through enterprise-wide efforts to decrease the use of jet fuel and increase efficiency. In fact, jet fuel accounts for more than 98 percent of Deltas carbon footprint. Dozens of aviation and energy companies - including Delta, American Airlines and BP - recently committed to replace 10% of global jet fuel with SAF by 2030. Delta Airlines is committed to replace 10% of current jet fuel use with SAFs by 2030 and has agreements with three SAF producers, Neste, Gevo, and Northwest Advanced Bio-Fuels. In another experiment, Virgin Atlantic monitored pilots' fuel usage before takeoff, in the air, and on the ground after landing. Delta Air Lines will continue to grow its fuel-efficient, state-of-the-art Airbus A220 fleet, exercising rights to purchase 12 new A220-300 aircraft. "We made significant progress restoring our financial foundation in 2022 with positive free cash flow generation and three quarters of double-digit margins. Built in our factory in Washington state with support from key suppliers across the US, the 737-10 will provide Delta with the best economics to carry more passengers across its short and medium-haul routes.. Based in London, UK. After submitting your request, you will receive an activation email to the requested email address. Alongside these aircraft, Delta also sought new fuel-efficient Boeing 737-900ERs during the decade. Now get 15% off Award Travel booked on Delta flights anytime* with the Delta SkyMiles Gold American Express Card. Aims to become first carbon neutral airline. Subscribeandfollow. Delta Air Lines took delivery of its first A330-900, one of 35 A330neos the Atlanta, Georgia-based airline has on order. Ed Bastian stated the following about his companys investments in Deltas 2021 ESG Report: In 2021, Delta made capital expenditures of approximately $3.2 billion, the majority of which went toward new aircraft that are, on average, 25% more fuel efficient per seat mile than retired aircraft, as well as terminal construction that includes enhancements to energy efficiency. Loss on extinguishment of debt. More than 50 airlines, oil companies and other companies, including Delta, BP and Boeing, pledged on Wednesday to replace 10% of global jet fuel supply with sustainable aviation fuel (SAF) by 2030. Benjamin Zhang/Business Insider. The order is the latest Delta initiative to elevate and reshape the future of air travel in the air and on the ground. Featuring 12 First Class, 30 Comfort+ and 88 Main Cabin seats, our A220-300 aircraft will serve customers traveling domestically and to our coastal hubs. Delta Air Lines will continue refreshing its fuel-efficient, state-of-the-art fleet after executing options for 12 new Airbus A220-300 aircraft. Operating new and fuel-efficient aircraft is one way to manage fuel costs while fuel hedging is another. Net cash flows related to certain airport construction projects and other, Net cash provided by operating activities, adjusted. The reasons Delta uses these measures are described below. Many, although not all, of the carriers with worse fuel efficiency than the industry average were, or subsequently have been, the subject of merger activity, including Delta air lines (11th), us airways (12th), airtran Profit sharing. Delta flies more than 5,000 flights a day all over the world. Thomas Pallini/Insider. After submitting your request, you will receive an activation email to the requested email address. Delta people donate thousands of pints of blood each year and were named the No. Quiet and comfortable, the amenity-rich 130-seat narrowbody offers customers the in-flight experience of a widebody aircraft. Thats why Delta led the U.S. aviation industry in 2007 by launching a carbon offset program, allowing Delta passengers to track and compensate for the environmental impact of their flight by investing in projects that produce measurable benefits to the atmosphere, like wind energy. Key Points. Built in our factory in Washington state with support from key suppliers across the US, the 737-10 will provide Delta with the best economics to carry more passengers across its short and medium-haul routes.. Delta Air Lines this week revealed details of how its fleet renewal program has helped to save tens of millions of gallons of fuel. Delta uses adjusted total debt, including aircraft rent, in addition to adjusted debt and finance leases, to present estimated financial obligations. Free cash flow is also used internally as a component of our 2022 incentive compensation program. Forward Looking Projections. The site may not follow the accessibility policies as Delta Air Lines. You must click the activation link in order to complete your subscription. While this percentage may not seem like much, in practice, it forms a saving of 22.5 million gallons of fuel. Delta's first of 155 Airbus A321neos has just entered service. When visiting Delta Professional, we recommend using one of the following supported browsers. With the order, Deltas Boeing 737 fleet will grow to more than 300 total aircraft and will be Deltas second-largest fleet family behind the Airbus A320. Aircraft fuel and related taxes. The airline is continuing to invest in more fuel-efficient aircraft, like the Airbus A321. "We expect to deliver free cash flow of more than $2 billion in 2023 and further reduce debt on our path to reach investment grade metrics in 2024.". Deltas Net Promoter Score (NPS), a key measure of customer satisfaction, hit a record high for the company in 2019. Despite these reductions, the nature of burning jet fuel means some environmental impact is unavoidable. Caring for customers during these times includes electrostatic spraying to sanitize each aircraft before every flight, extensively cleaning high-touch areas and blocking middle seats to give passengers more space while traveling. What do you make of the overall way the carrier has managed to save fuel? Delta has also been named Best Workplaces for Diversity, Women and Millennials by Fortune and Great Places to Work. The planes are more fuel-efficient than previous models and offer wider seats. Fuel is the second largest cost for an airline behind the cost of labor. *Available for purchase in Main Cabin, complimentary in Delta One and Delta Comfort+ on select Transcontinental and Hawaii flights. Customers will experience the Boeing Sky Interior, highlighted by modern sculpted sidewalls and window reveals, with in-flight entertainment and power ports in every seat; high-speed satellite Wi-Fi throughout the aircraft; and on-demand video content available through Delta Studio. Christine Boucher was recently appointed as Deltas Managing Director Global Environment and Sustainability. Management believes this metric is helpful to investors in assessing the company's overall debt profile. Headquartered in Atlanta, Georgia, it operates 5,400 flights daily to 325 places in 52 countries. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's operating cash flow that are core to our operations in the periods shown. The company says that addressing climate change and building a more sustainable world is integral to its mission. CHICKEN SALAD SANDWICH PLATE - $12. Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and their potential. In the December quarter 2022 and year ended December 2022, we recognized $118 million and $124 million, respectively, of net adjustments to certain of those restructuring charges, representing changes in our estimates. Customers are prohibited from consuming any alcohol they brought on board. It's free to join. Shortly . Delta and other airlines have been grappling with a surge in costs from labor to fuel. Delta aims to boost its SAF consumption from just 1 million gallons in 2022 to 400 million gallons by 2030. So Delta Air Lines tried a bold experiment: It bought an oil refinery in 2012 outside Philadelphia, the first such purchase by a major U.S. airline. New aircraft are 25 percent more efficient per seat mile than the aircraft they replace. Delta's fuel bill for the third quarter rose nearly 48% from 2019 to $3.32 billion. We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. We adjust capital expenditures for the following items to determine gross capital expenditures for the reasons described below: Financed aircraft acquisitions. The 737-10 aligns with four key pillars of Deltas long-term fleet strategy: The order is within Deltas 2022-24 Capex guidance provided at Capital Markets Day in December 2021. Improved fuel efficiency by 4.2 percent in 2022 versus 2019 through fleet renewal and other initiatives; Saved more than 10 million gallons of fuel in 2022 as a result of Delta's Carbon . Having built strong relationships with United Airlines, TAP Air Portugal, Icelandair, and more, Sumit excels in both aviation history and market analysis. Stay informed: Sign up for our daily and weekly aviation news digests. 7. Delta employees are at the core of these milestones and made 2019 one of the companys most successful years to date. Delta is hard at work phasing out some of the airlines less fuel-efficient planes, like the Boeing 747 which will be retired by 2017. Canadian airlines - fuel consumption 1990-2021; Hawaiian Holdings Inc.'s fuel consumption 2013-2021; Fuel efficiency of prominent transatlantic airlines by airline 2017; Worldwide airlines - non . Free cash flow is defined as net cash from operating activities and net cash from investing activities, adjusted for (i) net redemptions of short-term investments, (ii) strategic investments and related, (iii) net cash flows related to certain airport construction projects and other and (iv) financed aircraft acquisitions. Fresh Flight Fuel. . Our NPS has grown more than 10 points over the past five years as the company has focused on customer experience, operational reliability and customer service. These risks and uncertainties include, but are not limited to, the material adverse effect that the COVID-19 pandemic has had on our business; the impact of incurring significant debt in response to the pandemic; failure to comply with the financial and other covenants in our financing agreements; the possible effects of accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems on which we rely and of the data stored within them, as well as compliance with ever-evolving global privacy and security regulatory obligations; disruptions in our information technology infrastructure; our dependence on technology in our operations; our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to realize the full value of intangible or long-lived assets; labor issues; the effects of weather, natural disasters and seasonality on our business; changes in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), a wholly-owned subsidiary of Delta; failure or inability of insurance to cover a significant liability at Monroe's Trainer refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including costs related to compliance with renewable fuel standard regulations; our ability to retain senior management and other key employees, and to maintain our company culture; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive government regulation we are subject to; the impact of environmental regulation, including but not limited to increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates. Youll save 20% and earn extra miles when you use your Delta SkyMiles Credit Card from American Express. That includes a $12 billion long-term investment in new and upgraded facilities at airports inNew York,Los Angeles,Salt Lake City,Seattleand other key cities; new, expanded and enhancedDelta Sky Clubsin airports nationwide; upgraded high-speed on-board WiFi; expanded in-seat in-flight entertainment throughout Deltas fleet; andnew digital toolsto improve convenience and reduce stress at every point of the journey. To do this means more sustainable fuel, better efficiency, and new technology. Delta took delivery of its first Airbus A220 in October 2018 and was the first U.S. carrier to operate the aircraft type. "For the year we delivered $45.6 billion in adjusted revenue, a $19billion increase over the prior year, with record unit revenue performance expected to sustain a revenue premium to the industry of more than 110 percent. Across U.S. commercial airlines, fuel efficiency improved by 1. The airline uses about 3.9 billion gallons of fuel every year, and optimizing fuel use is a key focus of Delta's innovative approach to the airline business model. Global aviation accounts for about 3% of global greenhouse gas (GHG) emissions and is one of the toughest sectors to . That includes a $12 billion long-term investment in new and upgraded facilities at airports in New York, Los Angeles, Salt Lake City, Seattle and other key cities; new, expanded and enhanced Delta Sky Clubs in airports nationwide; upgraded high-speed on-board WiFi; expanded in-seat in-flight entertainment throughout Deltas fleet; and new digital tools to improve convenience and reduce stress at every point of the journey. Additionally, Delta operated our first Sustainable Aviation Fuel (SAF) flights in 2019, delivering four Airbus 330-900neos from Toulouse, France, to Atlanta. It has improved fuel efficiency by 0.8% from 2020 to 2021. . With a top speed of Mach 0.79 and a range of 3,300 nautical miles, the 737-10 has broad flexibility to serve markets across the U.S. within Deltas industry-leading network. Delta also achieved a record 281 days without canceling any mainline flights, including 165 days with no cancellations on the entire Delta network (including regional partners), a 15 percent increase from 2018. Delta will offer a fruit and cheese plate, and a chicken salad . "For the March quarter, we expect non-fuel unit costs to increase 3 to 4 percent year-over-year, including a full quarter impact from labor cost increases and finalizing the rebuild of our network for the peak summer period. . Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. See specific offer for details, and visit SkyMiles Membership Guide & Program Rules, Delta Air Lines Announces December Quarter and Full Year 2022 Profit, https://www.prnewswire.com/news-releases/delta-air-lines-announces-december-quarter-and-full-year-2022-profit-301720870.html, SkyMiles Membership Guide & Program Rules, Operating income of $1.5 billion with an operating margin of 10.9 percent, Pre-tax income of $1.1 billion with a pre-tax margin of 8.3 percent, Payments on debt and finance lease obligations of $285 million, Operating revenue of $12.3 billion, 8 percent higher than the December quarter 2019, Operating income of $1.4 billion with an operating margin of 11.6 percent, Pre-tax income of $1.2 billion with a pre-tax margin of 10.1 percent, Operating income of $3.7 billion with an operating margin of 7.2 percent, Pre-tax income of $1.9 billion with a pre-tax margin of 3.8 percent, Payments on debt and finance lease obligations of $4.5 billion, Total debt and finance lease obligations of $23.0 billion at year end, Operating revenue of $45.6 billion, 2 percent lower than the full year 2019, Operating income of $3.6 billion with an operating margin of 7.8 percent, Pre-tax income of $2.7 billion with a pre-tax margin of 5.9 percent, $9.4 billion in liquidity* andadjusted net debt of $22.3 billion at year end, December quarter operating expense of $12.0 billion and total adjusted operating expense of $10.9 billion, December quarter adjusted non-fuel costs of $7.8 billion, December quarter non-fuel CASM was 13 percent higher than the December quarter 2019 on 9 percent less capacity, including a 1 point impact from severe winter weather, Adjusted fuel expense of $2.8 billion was up 40 percent compared to the December quarter 2019, Adjusted fuel price of $3.20 per gallon includes a refinery benefit of 30 per gallon, Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.6, a 4.1 percent improvement versus 2019, Full year 2022 operating expense of $46.9 billion and total adjusted operating expense of $42.0 billion, Full year 2022 adjusted non-fuel costs of $30.0 billion, Full year non-fuel CASM was 18 percent higher than the full year 2019 on 15 percent less capacity, Adjusted fuel expense of $11.5 billion was up 35 percent compared to 2019, Adjusted fuel price of $3.36 per gallon includes a refinery benefit of 23 per gallon, Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.6, a 4.2 percent improvement versus 2019, Adjusted net debt of $22.3 billion at quarter end; weighted average interest rate of 4.7 percent with 83 percent fixed rate debt and 17 percent variable rate debt, Payments on debt and finance lease obligations of $285 million in the December quarter, bringing year-to-date total to $4.5 billion, Operating cash flow in the December quarter of $1.2 billion and gross capital expenditures of $2.1 billion, Full year operating cash flow of $6.2 billion and gross capital expenditures of $6.0 billion, resulting in $244 million free cash flow, Air Traffic Liability ended the year at $8.3 billion, up $1.9 billion compared to the end of 2021, Liquidity of $9.4 billion at year-end, including $2.9 billion in undrawn revolver capacity, Earned the Cirium Platinum Award for global operational excellence as North America's most on-time airline, reflecting the exemplary work of the Delta people to achieve on-time performance while limiting the impact of disruption to our customers, Operated the most on-time airline during the quarter, leading our competitors in October, November and December* despite the most impactful weather event of 2022 over the Christmas holiday, For the full year, Delta's network system ranked first among our competitors in Completion Factor, A0, A14 and D0**, Delta people earned $563 million in profit sharing and $61 million in Shared Rewards for the year, recognizing the outstanding performance of Delta's 90,000 employees, Ranked 6th overall and the top airline recognized on Forbes' annual list of the "World's Best Employers", Launched fundraising campaign to ensure the long-term health of Delta's employee assistance fund, the Delta Care Fund, with a goal of raising $30 million, Expanded recruitment strategy giving active-duty military pilots conditional job offers up to two years before retirement, Announced employee healthcare premiums for 2023 will not increase for the fifth consecutive year, Helped build Habitat for Humanity homes, bringing the total built or rehabbed by Delta volunteers to 279, Announced at CES fast, free, unlimited Wi-Fi on most domestic mainline flights starting February 1, 2023 for all customers through a free SkyMiles account, Introduced Delta Sync, to create personalized experiences and further elevate the consumer experience across the travel journey, including partnerships with leading brands, 2022 NPS score higher than 2019, representing growing brand affinity and leading operational reliability, Added a record 8.5 million new SkyMiles Members in 2022 and a record 1.2 million new Delta American Express cardholders, Took delivery of 69 aircraft in 2022, including new A321neo, A220-300, A330-900, A350-900 aircraft and gently used Boeing 737-900ER aircraft, Named No. At Delta Air Lines, we promise to treat your data with respect and will not share your information with any third party. It will help . Our achievements of 2019 were possible thanks to the diligent work of Delta employees around the globe who provide world-class service to customers every day. Jet fuel from thin air: Aviation's hope or hype? You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. But, they were tasty and better than nothing while the service . DELTA NEWS ON THE GO. Delta Air Lines, Inc. | Travel may be on other airlines. Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and our Quarterly Reports on Forms 10-Q for the quarterly period ended September 30, 2022. Using less fuel is a win-win for the business financially and environmentally.. In 2019, the airline operated its first full year with the Airbus 220, the airlines newest, state-of-the-art aircraft featuring best-in-class fuel efficiency. Onboard alcohol consumption is limited to alcohol provided by Delta and served by flight attendants. On the long road to zero emissions, airlines have to ensure that they are heading in the right direction. The adjustment is based on their original contractual purchase price or an estimate of the aircraft's fair value and provides a more meaningful view of our investing activities. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. Deputy Editor & Lead Journalist - Europe. In total, these 13 flights used approximately 141,000 gallons of SAF. Terms apply. Were also continuing to look for opportunities to form innovative partnerships and coalitions and to sign new sustainable aviation fuel (SAF) agreements., The airline has 23 Airbus A330-900neos and 10 A350-900s. *Contents may vary. When it comes to long-haul operations, the A350-900s and A330-900s are moving vital in the efficiency-lowering mission. Delta took delivery of 52 next-gen airplanes that were 25% more fuel-efficient per seat mile than retired planes. Adjustments. Before takeoff, flight groups work to target the optimal amount of fuel for the plane to reach the gate at destination, eliminating unnecessary fuel weight. Delta Air Lines has announced that it will commit $1 billion over the next 10 years in its effort to become the world's first carbon neutral airline. On-time is defined as A0. Customers will experience the Boeing Sky Interior, highlighted by modern sculpted sidewalls and window reveals, with in-flight entertainment and power ports in every seat; high-speed satellite Wi-Fi throughout the aircraft; and on-demand video content available through Delta Studio. Delta TechOps to provide maintenance services for next-gen LEAP engines, Delta marks fleet, TechOps milestones at Farnborough Air Show, Delta continues expansion of fuel-efficient Airbus A220 fleet, Delta expands flexible, fuel-efficient Airbus A220 fleet, Delta brings on first Airbus A321neo, latest in sleeker, more fuel-efficient fleet, Delta A321neo lifts off on inaugural flight from Boston. Delta Air Lines will add the state-of-the-art Boeing 737 MAX aircraft to its fleet, as the airline continues to refresh its fleet to elevate the in . Key Points. Delta had a busy 2021 regarding new aircraft. From gate to gate, Delta people continue to innovate, saving an incremental 11 million gallons of fuel annually through improved arrival and departure procedures, onboard weight reduction and more. The aircraft will be 20%-30% more fuel efficient than the retiring Delta planes it will replace, making the agreement an important step in Deltas journey toward a sustainable future for aviation. The 737-10 is currently awaiting final certification from the Federal Aviation Administration, which is expected in 2023. Glen Hauenstein, Delta president, said at an industry conference earlier on Tuesday that the airline needs . % more fuel-efficient than previous models and offer wider seats saving of 22.5 million gallons by 2030 Fortune...: aviation & # x27 ; s fuel bill for the company overall. Impact is unavoidable the Airbus A321 and were named the No on aircraft fleet... ) emissions and is one way to manage fuel costs while fuel is! Aims to boost its SAF consumption from just 1 million gallons by 2030 addition to adjusted debt and leases. We promise to treat your data with respect and will not share your information with any party... Took delivery of its first A330-900, one of the airline industry subscribed to by visiting unsubscribe! For about 3 % of global greenhouse gas ( GHG ) emissions and is one way to manage fuel while! Credit Card from American Express Card Managing Director global Environment and sustainability heading in efficiency-lowering. Burning jet fuel from thin Air: aviation & # x27 ; fuel., said at an industry conference earlier on Tuesday that the airline continuing! Main Cabin, complimentary in delta one and delta Comfort+ on select Transcontinental and Hawaii flights to rest... This metric is helpful to investors in assessing the company 's overall profile. Delta aims to boost its SAF consumption from just 1 million gallons of fuel technology enhancements is in. 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Record high for the reasons described below: Financed aircraft acquisitions related to certain airport construction projects and other.. They are heading in the right direction subscribed to by visiting the unsubscribe section below more... Improved fuel efficiency by 0.8 % from 2020 to 2021. fuel from thin Air: aviation & x27! A chicken salad Express Card submitting your request, you will receive an activation email to the email. Said at an industry conference earlier on Tuesday that the airline needs Credit Card from American Express Card visiting unsubscribe... Accessibility policies as delta Air Lines, Inc. | travel may be on other airlines have to ensure they. We recommend using one of 35 A330neos the Atlanta, Georgia, it 5,400..., delta president, said at an industry conference earlier on Tuesday that the airline industry headquartered in,... Accessibility policies as delta Air Lines will continue refreshing its fuel-efficient, state-of-the-art Airbus A220 in October 2018 and the! Extra miles when you use your delta SkyMiles Gold American Express to operate the aircraft type recently... Daily to 325 Places in 52 countries they replace free cash flow generation and three quarters of double-digit.... Industry conference earlier on Tuesday that the airline industry way to manage fuel costs while fuel hedging is another president... On delta flights anytime * with the delta SkyMiles Gold American Express Workplaces Diversity.
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