Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Credit Suisse Global Airline Conference 2008
15 slides from Delta Air Lines's conference presentation, Dec 2, 2008
Slide 1: Delta Air Lines – Credit Suisse Global Airline Conference
Delta Air Lines Edward H. Bastian Delta Air Lines President and CEO of Northwest Airlines Credit Suisse Global Airline Conference December 2, 2008
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 control, that c
Slide 3: Delta – A Premier Global Airline
Delta – A Premier Global Airline Durable financial foundation and solid liquidity Delivered solid top line growth Maintained best-in-class cost structure despite capacity reductions Focused on preserving liquidity Well positioned to weather global economic crisis and volatile fuel prices Industry le
Slide 4: Responding To A Challenging Environment in 2008
Responding To A Challenging Environment in 2008 Taking decisive action…•Aggressive domestic capacity reductions •Focused international expansion • Voluntary headcount reductions •Revenue and cost initiatives •Operational improvements • Merger with Northwest Enables Delta to deliver solid financial r
Slide 5: Best-In-Class Financial Performance
Best-In-Class Financial Performance Contributes to the strong financial foundation of the New Delta Solid Top Line Growth 3Q08 YTD Operating Revenue % change YoY Cost Discipline 1 3Q08 YTD Mainline CASM ex Fuel (¢)11.3% 10.5% 9.9% 6.1% 4.9% 3.5% 7.01 7.32 7.40 7.88 8.08 8.32
Slide 6: The New Delta Is A Globally Balanced Airline
The New Delta Is A Globally Balanced Airline •Northwest’s presence in Central U.S. complements Delta’s presence in the East–Half of Northwest’s domestic capacity is concentrated in the North Central region–Nearly 60% of Delta’s domestic capacity is concentrated in the East Asia access for Delta cust
Slide 7: A Leading Presence Across The Globe
A Leading Presence Across The Globe
Slide 8: Managing Economic Downturn Through Continued Capacity Discipline
Managing Economic Downturn Through Continued Capacity Discipline Flexible, cost effective fleet enables Delta to address global economic slowdown by: •Scaling back international capacity (2) –(4)%•Reducing day of week scheduling and trimming frequencies • Focusing expansion into (6) –(8)% (7) –(9)%
Slide 9: Fuel Hedging Portfolio Update
Fuel Hedging Portfolio Update % of Fuel Consumption Hedged 4%1Q092Q093Q094Q0920092010Avg. Jet Fuel Equivalent Cap$3.25$2.81$3.44$3.38$2.87$2.92Portfolio Downside 74% 100% 43% 70% 89% 96% Avg. Jet Fuel Equivalent Floor$2.32 $0.00 $2.91 $2.76 $1.54 $1.21 Participation Hedge portfolio still provides fo
Slide 10: Integration Is On-Track
Integration Is On-Track Network/Operations Expanded codeshare - DL code on >90% of NW flights at end of November Announced summer 2009 routes to unique international markets Increasing hub-to-hub connectivity Ability to re-accommodate customers on either carrier Customer “Business as usual” messagin
Slide 11: December 2008 Quarter Guidance
December 2008 Quarter Guidance Operating Margin Fuel Price per Gallon Consolidated RASM 2 Mainline Non-fuel CASM 1, 3 Delta Standalone Northwest Standalone System Capacity 3 Domestic International December 2008 Quarter 1,2 0 – (2)% $2.91 December 2008 Quarter vs. December 2007 Quarter Up 2 - 4% Flat
Slide 12: Delta – A Premier Global Airline
Delta – A Premier Global Airline Strong financial foundation Solid top line growth and best-in-class cost structure Strong liquidity position Merger strengthens Delta’s hand Proactively addressing economic weakness Domestic capacity rationalization Diverse international portfolio mitigates risk Comm
Slide 13: Slide 13
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations ADELTA
Slide 15: Note Regarding Exclusion of Special Items
Note Regarding Exclusion of Special Items: Delta and Northwest exclude special items because management believes the exclusion of these items is helpful to investors to evaluate the companies' recurring operational performance. Reconciliation of Historical Financial Measures: Delta Northwest Pre-tax
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