Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Bernstein Strategic Decisions Conference 2021
14 slides from Delta Air Lines's conference presentation, Jun 3, 2021
Slide 1: Delta Air Lines – Bernstein Strategic Decisions Conference
Delta Air Lines Bernstein Strategic Decisions Conference Ed Bastian – CEO June 3, 2021
Slide 2: Forward-looking Statement Disclaimer
Forward-looking Statement Disclaimer The statements 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 st
Slide 3: Continued Steady Demand Recovery in the June Quarter
Continued Steady Demand Recovery in the June Quarter • Domestic leisure travel expected to be more than 100% restored in June month, up from 60% in March • Forward premium revenue growth is outpacing main cabin and upsell rates are improving • Continued leisure, growing corporate, and initial Transa
Slide 4: Improved June Quarter Outlook
Improved June Quarter Outlook • Expect June quarter pre-tax loss of $1.0 - $1.2 billion1 vs. prior guidance for pre-tax loss of $1.0 - $1.5 billion − Progressive improvement through the quarter expected to drive pre-tax profitability1 in the month of June • Expect to generate pre-tax profit1 for sec
Slide 5: Restoring Financial Strength as Recovery Progresses
Restoring Financial Strength as Recovery Progresses 1 Protect 2 Stabilize 3 Restore Protect our people Restore customer Sustain free cash and our customers confidence and flow generation eliminate cash burn Preserve our Generate returns financial liquidity Begin debt reduction above cost of capital
Slide 6: Our Recovery Path is Underpinned by Key Focus Areas
Our Recovery Path is Underpinned by Key Focus Areas Leveraging Brand Enhancing customer trust and increasing value proposition Loyalty enhances brand and product affinity Restoring our Balance Initial phase of debt reduction completed, evaluating additional Sheet opportunities to de-lever Targeting
Slide 7: Our Journey to Reclaim Investment Grade Metrics Has Begun
Our Journey to Reclaim Investment Grade Metrics Has Begun Paying down debt Delta’s Chg. in Financial Obligations Fully funding our pension on a PPA1 basis (Chg. from end of 3Q20 to end of 2Q21E) Rebuilding our unencumbered asset base ($9B) $2B ($9B) Reduction in non-op expense ($1.5B) Elimination of
Slide 8: Unit Cost Trajectory Improving as We Return to Scale
Unit Cost Trajectory Improving as We Return to Scale • Driving volume leverage and productivity to preserve structural cost reductions achieved in 2020 • Continue to target non-fuel unit costs below 2019 in December quarter 2021 Expected CASM-Ex1 Progression to 2019 Levels Tailwinds • Scale – return
Slide 9: Fleet Renewal Builds a Simpler, More Sustainable Fleet
Fleet Renewal Builds a Simpler, More Sustainable Fleet Fleet Simplification and Gauge Growth Fleet Strategy Guideposts • Preserving optionality with levers to flex our capacity restoration depending on the shape of the recovery Creates a younger mainline fleet Scale with an improved customer experie
Slide 10: Competitive Advantages Demonstrated Resiliency Through Crisis
Competitive Advantages Demonstrated Resiliency Through Crisis People Network Balance Sheet At the core of Delta’s culture Best domestic connecting hub Strength of our balance sheet are passionate and complex – including the enabled us to manage determined professionals with world’s most efficient hu
Slide 11: Strong Brand and Competitive Advantages Enable Value Creation
Strong Brand and Competitive Advantages Enable Value Creation Powerful Brand Resilient Strong Partner Proven Track Record Drives Revenue Competitive Portfolio and of Execution & Premium Advantages Global Scale Reinvestment Commitment to Carbon Neutrality and Environmental Sustainability 10
Slide 12: 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 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Revenue, adjusted. We adjust operating revenue for third party refinery sales and Delta Private Jets for the reasons described below. Third-party refinery sales. We adjust operating revenue for refinery sales to third parties to determine operating revenue, adjuste
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex"). In the 2021 period, CASM-Ex excludes the following items directly related to the impact of COVID-19 and our response: Restructuring charges. During 2020, we recorded restructuring charges, including certain acc
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