Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Q2 2021 Earnings Presentation
16 slides from Delta Air Lines's earnings presentation, Jul 22, 2021
Slide 1: Delta Air Lines Investor Presentation
Delta Air Lines Investor Presentation July 22, 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: Achieved Significant Milestones During June Quarter 2021
Achieved Significant Milestones During June Quarter 2021 • Narrowed June quarter pre-tax loss, adjusted1 to $881 million, a more than $2 billion sequential improvement − Reported pre-tax profit in June month with a high single digit pre-tax margin, adjusted1 − Generated $1.9 billion of operating cas
Slide 4: September Quarter Outlook
September Quarter Outlook • Expect September quarter pre-tax margin, adjusted1 in the mid-single digits at the mid-point of guidance ranges • Total Revenue, adjusted1 expected to improve another $2 billion versus June quarter 2021 on 10% capacity growth as business and international demand continues
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 financial Generate returns liquidity Reduce debt and fully 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 including fully funding pension plans on a PPA basis; executing a
Slide 7: Progressing on Journey to Reclaim Investment Grade Metrics
Progressing on Journey to Reclaim Investment Grade Metrics Paying down debt Delta’s Chg. in Financial Obligations Fully funding our pension on a PPA basis (Chg. from end of 3Q20 to end of 3Q21E) Rebuilding our unencumbered asset base ($10B) $3B ($9B) Reduction in non-op expense ($1.5B) Elimination o
Slide 8: 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 Reduces number of fleet families Scale and mainline pilot categories 201
Slide 9: 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 10: 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 9
Slide 11: 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 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations Pre-Tax Loss, adjusted. In the current period, pre-tax loss, adjusted excludes the following items directly related to the impact of COVID-19 and our response for comparability with the prior period: Restructuring charges. During 2020, we recorded restructuring charges, incl
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Pre-Tax Margin, adjusted. In the current period, pre-tax margin, adjusted excludes the following items directly related to the impact of COVID-19 and our response: government grant recognition and loss on extinguishment of debt, as discussed above under the heading pre-tax l
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free Cash Flow and Free Cash Flow, adjusted. We present free cash flow and free cash flow, adjusted because management believes these metrics are helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general cor
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Revenue, adjusted. We adjust operating revenue for third-party refinery sales for the same reasons discussed above under the heading pre- tax margin, adjusted. We adjusted for the impact of Delta Private Jets for the reasons described below. Delta Private Jets adju
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex"). We adjust CASM for refinery sales to third parties for the same reason described above under the heading pre-tax margin, adjusted. We adjust for the impact of Delta Private Jets for the same reason described ab