Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Presentation (March 2007)
8 slides from Delta Air Lines's investor presentation, Mar 27, 2007
Slide 1: Strategic Context
Strategic Context Jim Whitehurst Chief Operating Officer March 27, 2007
Slide 2: Safe Harbor
Safe Harbor This presentation contains various projections and other forward-looking statements which represent Delta's estimates or expectations regarding future events. All forward-looking statements involve a number of assumptions, risks and uncertainties, many of which are beyond Delta's control
Slide 3: Context: 2005 Situation
Context: 2005 Situation Substantial cash bleed, worst margins of the majors Substantial RASM1 discount to other network carriers (14% RASM gap costing $2.5B) "In the pack" customer performance, and middling operating performance Disenfranchised workforce with little trust in management 1 Revenue per
Slide 4: Delta made significant progress in 2006
"Safe, Clean, and On-time" #1 in safe 2,200 deep cleaned aircraft vs. 300 in 2005 #3 in on-time for 2006 Transformation Plan - 2006 Initiatives Fund the Flight Plan Fly Right Earn Customer Preference Win Together Deliver on our financial commitments 2006 operating profit $58M, first since 2000 Unres
Slide 5: 2006 Performance
2006 Performance 2003 2004 2005 2006 Current yr. 0.9 0.89 0.86 0.93 Passenger RASM as % of Industry 1 1 Unit revenue adjusted to industry length of haul average 2 Preliminary exchange date, AS, FL, WN have not reported DOT On-Time Ranking 2007 Key: AA = American, AS = Alaska, B6 = JetBlue, CO = Cont
Slide 6: 2007 Transformation Plan Objectives
Improve baggage performance Improve Delta Connection operational performance Maintain top tier operational performance Streamline and enhance the customer experience 2007 Transformation Plan Objectives Fund the Flight Plan Fly Right Earn Customer Preference Win Together Emerge from bankruptcy Achiev
Slide 7: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 8: RASM Gap to Industry Average
RASM Gap to Industry Average Note: Charter revenue is excluded and length of haul is adjusted as management believes this is helpful to investors in comparing the Company's passenger revenue per ASM to the industry.