Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Presentation (August 2022)
23 slides from Delta Air Lines's investor presentation, August 2022
Slide 1: Delta Air Lines Investor Overview Q3 2022
DELTA AIR LINES Investor Overview Q3 2022
Slide 2: Safe Harbor
Safe Harbor Statements made in this presentation 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 Secu
Slide 3: Strong Competitive Advantages And Brand Preference
Strong Competitive Advantages And Brand Preference People and Global Financial Culture Network Foundation The core of Delta – Best connecting hub Solid foundation with passionate and complex – including the more cash flow flexibility determined world’s most efficient and access to higher professiona
Slide 4: Strategic Priorities Support Long-Term Value Creation
Strategic Priorities Support Long-Term Value Creation Strengthening Our Trusted Restoring Our Financial Building A Better Future Consumer Brand Performance For Our People And Planet Continue to prioritize the Rebuild scale and drive Invest in our workforce, health and safety of our efficiency
Slide 5: Delta Platform Supports Revenue Diversification
Delta Platform Supports Revenue Diversification >$50B Growth Opportunities ~$47B Adjusted Loyalty: Investing in product, marketing and capabilities Total accelerates loyalty revenue ~$40B Revenue 39% growth 47% Cargo: Leverage growing widebody capacity while 56% increasing share of premium product 3
Slide 6: The Power Of The Delta And American Express Partnership
The Power Of The Delta And American Express Partnership Growth Opportunity Delta-American Express Contribution ($B) Less than 1/3 of our SkyMiles members have ~$7 a Co-Brand credit card >$5 ~$4 ~$4 Profile Of Co-Brand ~$3 Cardholders Trips / Year ~6 Avg. Spend vs. ~ 4-5x Non-Member 2017 2019 2021 20
Slide 7: Fleet Transformation Driving Efficiency And Elevating The Product
Fleet Transformation Driving Efficiency And Elevating The Product Evolution of Fleet Gauge Growth in Premium Seats 1 150+ Premium Seats 131 Main Cabin Seats 97 2009 2021 Future State 2009 2021 Future State 15 11 8 9% 27% 30%+ Fleet families Premium mix 7 1 Count of p remium and main c abin seats, in
Slide 8: Demand For Premium Product Underpins Our Strategy
Demand For Premium Product Underpins Our Strategy Premium vs. Main Cabin Domestic First Class Paid Premium Revenue Mix Margin Load Factor 36% High 60% 63% 32% 55% 24% 10+ pt. differential in margin Main Cabin Margin Premium Cabin Margin 2014 2019 2024E 8
Slide 9: Leveraging Strengths Of Our Industry-Leading Domestic Network
Leveraging Strengths Of Our Industry-Leading Domestic Network Core Hubs ATL Strong local passenger share High penetration of Delta loyalists Competitive cost position Extending gauge lead, driving efficiency Coastal Hubs NYC Presence in large revenue markets Growing relevance in internat
Slide 10: Best International Platform For Long-Term Profitable Growth
Best International Platform For Long-Term Profitable Growth The #1 Global Network Unique profit-sharing approach aligning Transatlantic Americas Pacific JV partner incentives #1 North America #1 Mexico and South #1 Transpacific JV To Europe JV1 American JVs1 Hub In Seoul2 1 B ased on 2019 ASMs to/ f
Slide 11: Strong Positioning And Multi-Year Strategy
Strong Positioning And Multi-Year Strategy Competitive Delta’s actions during the pandemic further strengthened its competitive advantages and 1 enhanced its position as a trusted consumer brand Advantages Industry Delta is leading the industry operationally and financially by demonstrating agility,
Slide 12: Financial Evolution & Long-Term Targets
Financial Evolution & Long-Term Targets
Slide 13: Track Record Of Profitable Growth
Track Record Of Profitable Growth Target GDP+ Revenue Growth Prioritize Margin Performance Adj. Tota l Rev enue - $ B illions Adj. Opera ting Ma rg in - % 14.5% Mid- >$50 Teens $42 $36 9.0% $28 0.3% 2009 2010 - 2014 2015 - 2019 2024 Goal 2009 2010 - 2014 2015 - 2019 2024 Goal Average Average Average
Slide 14: Demonstrated Ability To Pass Through Fuel Expense
Demonstrated Ability To Pass Through Fuel Expense 1 TTM Passenger Passenger Revenue Less Fuel $125 Weekly Brent Crude $35B Revenue Less Fuel1 $125 ~8% CAGR $30B $100 Brent Crude Per Barrel 2 Capacity Pax-Rev Less Fuel $85 $75 ~2% CAGR $25B $20B $50 3 Fuel as % of Passenger Revenue 2009: 35% $29 2019
Slide 15: Cash Generation Supports Reinvestment And Debt Reduction
Cash Generation Supports Reinvestment And Debt Reduction Generate Strong Cash Flows Reduce Debt Levels Free Ca sh Flow - $ B illions Adj. Net Debt - $ B illions $17 >$4.0 $3.6 $15 $11 $2.1 $8 $0.1 2009 2010 - 2014 2015 - 2019 2024 Goal 2009 2010 - 2014 2015 - 2019 2024 Goal Average Average Average A
Slide 16: Durable Competitive Advantages Support Leading Profitability
Durable Competitive Advantages Support Leading Profitability Industry Leading Unit Profitability Adj. Opera ting Income per Av a ila ble Sea t Mile (¢) Strong Execution Track Record Delta 2.37 2.45 Airline Industry Index1 1.90 1.76 1.39 Demand Rising for Premium Brands 0.95 0.04 0.02 Brand Preferenc
Slide 17: Significant Structural Improvement From 2009 to 2022
Significant Structural Improvement From 2009 to 2022 Revenue Premium AMEX Strong Brand Preference to Industry Remuneration Discount 110%+ +$3.5B Mainline Fleet Age Fuel Efficiency Younger, More Efficient Fleet 3 Years Younger 13% Better1 Adj. Net Debt + Unencumbered Fully Funded Pension Pension Li
Slide 18: 2024 Financial Targets And Value Creation Framework
2024 Financial Targets And Value Creation Framework 2024 Financial Targets Adjusted Delta People Total >$50B and Brand Revenue Adj. Earnings >$7.00 Return on per Share 1 Invested Capital Free Thoughtful Industry- Cash Flow >$4B Capital Leading Allocation Margins Balance Adj. Debt / EBITDAR 2.0 to 3.
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the U.S. Securities and Exchange
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjustments. These reconciliations include certain adjustments to GAAP measures, which are directly related to the impact of COVID-19 and our response. These adjustments are made to provide comparability between the reported periods, if applicable, as indicated below: Restru
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Total Revenue 2010 - 2014 2015 - 2019 Year Ended December 31, (in billions) Total Total 2009 2014 2019 Total revenue $ 182 $ 213 $ 28 $ 40 $ 47 Adjusted for: Third-party refinery sales (0) (2) - (0) (0) Total revenue, adjusted $ 182 $ 211 $ 28 $ 40 $ 47 Number of ye
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free Cash Flow. 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. Free cash flow is defined as net cash fro
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Debt and Adjusted Net Debt and Pension Liability. Delta uses adjusted total debt and adjusted net debt and pension liability, including aircraft rent, in addition to adjusted debt and finance leases, to present estimated financial obligations, including pension
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