Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — J.P. Morgan Industrials Conference 2025
9 slides from Delta Air Lines's conference presentation, Mar 11, 2025
Slide 1: Industrials Conference
Industrials Conference March 11, 2025
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: Current Environment Evolving
CURRENT ENVIRONMENT EVOLVING March Quarter outlook impacted by increased macro uncertainty What has changed What has not changed ▪ Consumer & corporate confidence ▪ Constructive industry structure with increased focus on financial health ▪ Softer close-in demand ▪ Strength in premium, loyalty, ▪ Oil
Slide 4: Value Creation Framework
VALUE CREATION FRAMEWORK Three-to-five-year financial targets deliver sustained value creation MARGIN DURABLE EARNINGS BALANCE SHEET EXPANSION AND FREE CASH FLOW STRENGTH 10% 1x EPS Growth Mid-teens $3-5B Operating Margin Gross Leverage Free Cash Flow 15%+ RETURN ON INVESTED CAPITAL $40B+ UNENCUMBER
Slide 5: Prioritizing Return on Invested Capital
PRIORITIZING RETURN ON INVESTED CAPITAL Delivering returns that are in the upper half of the S&P 500 MARGIN RETURN ON INVESTED CAPITAL EXPANSION 15% 13% DAL DURABLE EARNINGS WACC 8% AND FREE CASH FLOW BALANCE SHEET Delta Long-Term Industry STRENGTH 2024 Target 2024 Note: Adjusted for special items;
Slide 6: Balanced Capital Allocation
BALANCED CAPITAL ALLOCATION CONSISTENT, REDUCE FINANCIAL RISK DISCIPLINED REINVESTMENT THROUGH DEBT PAYDOWN 50% $9-11B 50% REINVEST ANNUAL OPERATING SHAREHOLDER RETURNS FOR GROWTH CASH FLOW Debt reduction, dividends, repurchases STEADY DIVIDEND INCREASE GROWTH SHAREHOLDER RETURNS 5
Slide 7: Q&A
Q&A 6
Slide 8: 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 9: Non-GAAP Financial Measures
Non-GAAP Financial Measures After-tax Return on Invested Capital ("ROIC"). We present after-tax return on invested capital as management believes this metric is helpful to investors in assessing the company's ability to generate returns using its invested capital. Return on invested capital is tax-e
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