Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — JP Morgan Aviation, Transportation and Industrials Conference 2016
13 slides from Delta Air Lines's conference presentation, Mar 8, 2016
Slide 1: Delta – A High Quality Company
Delta – A High Quality Company JP Morgan Aviation , Transportation and Industrials Conference March 8 , 2016
Slide 2: Safe Harbor
2 Safe Harbor Statements in this presentation that are not historical facts, including statements regarding our estimates, expectations, be lie fs, intentions, projections or strategies for the future, may be "forward - looking statements" as defined in the Private Securities L itigation Reform Act
Slide 3: A High Quality Company Consistently Producing Solid Results
A High Quality Company Consistently Producing Solid Results Momentum Continues in 2016 Building A Durable Business Model Leveraging our solid foundation to produce consistent, sustainable results for shareholders • Running a reliable, customer - focused airline is producing record profits and return
Slide 4: Consistently Producing Solid Results
Consistently Producing Solid Results Running a reliable, customer - focused airline is producing stronger returns, allowing for improved balance sheet strength and increased return of capital to shareholders All results exclude special items Foundation in place to produce high - quality, sustainable
Slide 5: Producing A Record March Quarter
Operating margin 18% - 20% Passenger unit revenue change year over year Down 2.5% - 4.5% Fuel Price $1.33 - $1.35 CASM – ex fuel including profit sharing change year over year Up ~5% Cash return to shareholders ~$880 million Fuel price includes taxes, settled hedges, refinery contribution and exclud
Slide 6: Positioned To Grow Earnings And Cash Flow In 2016
Positioned To Grow Earnings And Cash Flow In 2016 • Strong momentum with commercial initiatives – Expect $300 million in incremental revenues from Branded Fares – Domestic fleet initiatives improving efficiency and margins in our largest entity – Solid growth in corporate volumes through share gains
Slide 7: Focused on Returning to Positive RASM
Focused on Returning to Positive RASM • Targeting return to positive RASM growth this summer – Capacity actions will continue to help results, and strong demand during peak season should benefit yields – Currency headwinds begin to moderate over the next several quarters • Network initiatives focuse
Slide 8: Fuel Tailwind To Continue In 2016
Fuel Tailwind To Continue In 2016 Hedge book closed out, allowing for full downside participation in fuel market • Second year of lower market fuel prices contributing to more than $3 billion incremental fuel savings in 2016 at current levels • Delta effectively has no open hedge positions in 2016 –
Slide 9: Delta: Evolution Over The Past Decade
Delta: Evolution Over The Past Decade Consolidation High Quality Product Sustainable Earnings & Cash Flow • Investments in network, products, and services in addition to highly motivated employees drive Delta’s industry leading operational reliability, customer satisfaction and 19% domestic unit rev
Slide 10: A More Geographically Diverse Network
A More Geographically Diverse Network Diversifying our revenue streams to reduce economic risk and take advantage of large international opportunity • Network diversification across regions reduces Delta’s exposure to economic risk in individual markets – More globalized network, while also broadeni
Slide 11: Top-Line Is More Than Ticket Revenues
Top - Line Is More Than Ticket Revenues Investing in segmentation and other ancillary opportunities provides additional sources of revenue and allows Delta to capture a greater portion of the travel spend • Branded F ares is on track to drive $2.4 billion in revenue by 2018 vs. $1.2 billion in 2015
Slide 12: A Healthier Industry Focused On Shareholder Returns
A Healthier Industry Focused On Shareholder Returns Mainline Aircraft Deliveries for Major U.S. Carriers 1,035 623 Deliveries 1999 - 2001 Scheduled Deliveries 2016 - 2018 $5.3 B $18.7 B 1999 2015 Airline Industry Net Income Airline Industry Free Cash Flow 12 Industry producing record earnings and ca
Slide 13: Opportunity Ahead For Investors
Opportunity Ahead For Investors Delta’s stock represents an opportunity for investors to purchase a high - quality industrial at an attractive valuation Consistently producing high - quality returns and cash flows … … While valuations remain at a discount High quality industrial transports are compa
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